My whipped cream is weeping and I’m tearing up – the heat wave and other hot news

Record-breaking temperatures are expected to continue this week after one Mississippian died over the weekend as a result of the heat…The temperature in Jackson is expected to break 100 today and Tuesday with the heat index between 105 and 110 degrees…”The normal for this time of year is around 92 degrees…You definitely can consider this a heat wave.”

At the moment (7:23 am), the temperature here is 82° – and even hotter “under the collar”:

“It saddens me as an American that a company would stoop so low as to make a profit on the death of a soldier. Is there anything lower than that?”

“The American economy rises or falls based on whether or not the country’s very richest people believe they are being properly respected and made happy. And Politico reports that the sensitive rich people are not happy with the Obama administration…”

Brenden DeMelle and Jerry Cope report in the Huffington Post that, “a group of oil companies including BP, Shell, ExxonMobil, Citgo, Chevron and other polluters are using a front group called ‘America’s Wetland Foundation’ and a Louisiana women’s group called Women of the Storm to spread the message that U.S. taxpayers should pay for the damage caused by BP to Gulf Coast wetlands, and that the reckless offshore oil industry should continue drilling for the ‘wholesale sustainability’ of the region.” Continue reading “My whipped cream is weeping and I’m tearing up – the heat wave and other hot news”

A Quick Note on Some Local Impacts From the Economic Crisis

Dupont has shut down it’s production lines and is stockpiling raw materials due to a lack of orders which in turn has impacted their paid headcount. Contractors are losing backlog as projects are being cancelled on the drawing board or in some instances mid-construction. Creditors such as bond sureties that contractors must use have become very strict in the extension of bond credit needed to bid most construction projects.

In short I’m seeing first hand the signs of a severe slowdown. The ride promises to be very bumpy.

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Digging in & Getting Dirty: Making the Bailout Work

I saw this a few days back at Clusterstock and thought the question made a bunch of sense. There are good reasons why accounting hocus pocus (ie banning mark to market accounting) is a bad idea. IMHO we are much better off taking our medicine now.

A key component of successful financial system bailouts in the past has been forced asset writedowns, in which the government makes banks reduce the carrying value of this assets to nuclear-winter levels before the government injects new equity. This move does several important things:

  • It removes the fear that banks and bank investors will be hammered by future writedowns
  • It turns the banks’ attention 100% to putting the new equity to work
  • It attracts private capital (because investors won’t worry about getting sandbagged)
  • It eliminates the death-by-a-thousand-cuts scenario that killed Japan. Continue reading “Digging in & Getting Dirty: Making the Bailout Work”

Digging in & Getting Dirty: Making the Bailout Work

I saw this a few days back at Clusterstock and thought the question made a bunch of sense. There are good reasons why accounting hocus pocus (ie banning mark to market accounting) is a bad idea. IMHO we are much better off taking our medicine now.

A key component of successful financial system bailouts in the past has been forced asset writedowns, in which the government makes banks reduce the carrying value of this assets to nuclear-winter levels before the government injects new equity. This move does several important things:

  • It removes the fear that banks and bank investors will be hammered by future writedowns
  • It turns the banks’ attention 100% to putting the new equity to work
  • It attracts private capital (because investors won’t worry about getting sandbagged)
  • It eliminates the death-by-a-thousand-cuts scenario that killed Japan. Continue reading “Digging in & Getting Dirty: Making the Bailout Work”