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Roland Arnall who sold his Long Beach Mortgage Company to Washinton Mutual which became WaMu's subprime arm, and ran his own mortgage company Ameriquest. He helped start the whole subprime business when in the early 1990's his company Long Beach Savings and Loan began selling subprime mortgages to financial instituions on Wall Street, where the mortgages were packaged into securities and sold to investors. This packging of securites backed by mortgages and later the shopping for ratings which enabled these securites to get the the AAA rated seal of approval was to get this business the financing and backing on Wall Street. Ameriquest was invoved in questionable practices in its lending. His company and its 270 offices closed in 2006 and $325 million was put up by his holding company ACC Capital Holdings to settle regulators claims of charging excessively high mortgage rates. His origins are with a family that survived the Holocaust by taking refuge in a Catholic church and he became an altar boy, and later immigrating to the Los Angeles area. He was diagnosed with late stage cancer in March 2007 and died the same month. This is one of the individuals who pioneered the whole business of packaging subprime mortgages as securities. ...

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Nelson Schwartz of the NYT looks at the town of Neenah, Wisconsin, a year after the election in Wisconsin, Michigan, Pennsylvania with 80,000 votes swinging the other way from blue to red handing the election to Mr. Trump. The pressures are still there with cheaper imports, paper mills about to close, and workers still struggling to keep the same lifestyle as their parents. Even with low unemployment of about 3% in Wisconsin, with the slow increase in wages and corporate pressures for profits, trade wars, the sense is that the problems of the American middle class are still just as deep.

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Robert Kaiser, former managing editor of The Washington Post, reviewed this book on Joe McCathy in The Washington Post on August 7, 2020. It shows the link with today of Senator Joe McCarthy and Roy Cohn, the then 27 year old lawyer chief counsel of the senate subcommittee on investigation when Joe McCarthy became chairman in Jan. 1953. The book is-  Demagogue The Life and Long Shadow of Senator Joe McCarthy by Larry Tye. Roy Cohn passed on some of the methods used at that time to Mr. Trump. Kaiser points out that the senator Joe McCarthy assembled "a coalition of the aggrieved." Tye shows that it started with the junior senator from Wisconsin making a speech in West Virginia for Lincon Day dinner to the Republican ladies of Wheeling, W. Va. The senator used it to talk about threat of communists working in the State Department. He claimed there were 205 Communists. Today we know that this was just made up by McCarthy, at a time when Winston Churchill made the speech about the Iron Curtain in Eastern Europe and the Soviet Union and a sense of shock in America at the People's Republic of China being formed in 1949 under CCP chairman Mao tse tung. McCarthy saw this as an opportunity to gain prominence and a Senate career. What is seen from this carefully researched book is that for a while it succeeded in putting many of the Nation's best leaders on the defense. This includes Harry Truman, Eisenhower himself who disdained McCarthy's and Cohn's methods, Gen George Marshall who was a mentor to Dwight EIsenhower, Joe Stilwell, and other military leaders who ran the 1940's war effort under Marshall in Europe against the Nazis and in China against the Japanese imperialists. On the domestic side it included the head of TVA and the new Atomic Agency setup by president Truman. Gallup said at that time of McCarthy's 38% support in the US following his censure in US Senate by 67-22  -even if it was known that McCarthy killed five innocent children they would still go along with him. Tye writes that in that atmosphere similar to the sense of shock at China's rise and America's loss of manufacturing and falling behind in infrastructure by 2016, in that atmosphere if one told a small lie or big lie it made not much difference in public's penalty or censure, then why not tell a whopper of a lie. This became the ethic for a while in 2016-2024 similar to the period till the collapse of McCarthyism in America by 1957 with McCarthy's death in 1957 and in 1960 the election of John F. Kennedy. What is forgotten is that Richard Nixon a young senator from California was part of the group in Congress, so that in some shape or form it existed and remained part of the Reagan efforts to push back against the Soviets that led to wars in Afghanistan and then Iraq sapping the Nation's energies and resources and with faulty economic theory allowed China to dominate key industries and outspend America in infrastructure investment, creating the kind of shock that led to the second McCarthyist decade under Mr. Trump. ...

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Excellent article on GM and how it lost of market share in the coastal regions of the eastern, western and southern United States. Uses Miami as an example, and traces the large demographic changes there that GM failed to keep up with in its marketing. Describes the failures of corporate strategy in centralization of marketing and advertising, and the effects of the silos in decisionmaking at GM offices in the Detroit Rennaissance Center. Hawkins describes the four Renn Center towers as resembling massive steel grain silos. Just getting to an office in another tower requires taking an elevator to the ground floor , making it along a long walkway to another tower elevator. GM once ran a snow ad in Florida, and market share in South Florida is only 13.8%. The first ads to Hispanics were in 1995 and used the Alamo as a backdrop even though Mexicans make up only a small part of the Hispanic population there. The situation is repeated in other coastal cities of the U.S. - centralization of advertising and marketing, a sense at Detroit head offices that they knew what to do and did not have to ask people in the regional offices, a failure to delegate decisionmaking to regional offices and to people more attuned to the customer preferences for that demographic. A former Avon employee who marketed Avon products to Hispanics in South Florida is the new GM marketing executive in Florida. A regional sales manager for GM's southeast region says the organization is becoming flatter and for the first time he can talk directly with head offices in Detroit. ...

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Greek yogurt sales have doubled every year since 2006. It is praised by nutritionists for its flavor and protein content. The market leader is Chobani, founded by Hamdi Ulukaya, of Turkish origin, who has dairy plants in Johnston, New York. Chobani's sales were $196 million, as of Oct 3, 2010, having nearly tripled from the prior year. The irony is hat Chobani bought Kraft's yogurt plant to set up this business. Kraft had decided to exit the yogurt business in 2005. Now with sales climbing rapidly, Kraft is back in the business. Kraft has introduced its new Athenos brand Greek yogurt at Wal-Mart stores. General Mills introduced Greek Yoplait yogurt in March 2010. A change in American eating habits is driving this trend, as more people are substituting yogurt for breakfast instead of cereal. Overall yogurt sales are up 7.8% over the past year, according to UBS analyst Palmer. The CEO of Yoplait, General Mills, says there is room for continued growth, as Americans eat yogurt less per person than people in the U.K., Australia or Canada. The No 2 yogurt maker is brand is Fage, which started in a small dairy shop in Athens. Fage began exporting to the US in the 1990's, and set up a dairy plant in New York state. To reach the main demographic for yogurt- health conscious women- this brand advertised in Women's magazines Vogue and Elle, and ran banner ads on the New York Times website, as well as ads on food and wine sites. Fage's sales were up 50% by Oct 3, 2010, and reached $123 million in the US market....

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The Nobel Prize Committee's views on free expression of opinion in China, and the selection of Liu Xiaobo for the 2010 Nobel Peace Prize. Thorbjorn Jagland, chairman of the Norwegian Nobel Committee, points out that it is not an interference in China's internal affairs, because international human rights law and standards are above the nation-state, and the world community has a duty to ensure that they are respected. Jagland says the issue is universal human rights and the check on arbitrary majorities around the world. Even if the country is not a constitutional democracy, it is a member of the United Nations, and it has amended its Constitution to comply with the Declaration of Human Rights. The Nobel Committee chairman points to two other selections for the Nobel Prize, that of Andrei Sakharov of Russia, and of Rev. Martin Luther King of the U.S., as evidence that the Nobel Committee has stood up for universal human rights for a long time.

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Sanyo's largest shareholder is a consortium led by Goldman Sachs which invested $2.6 billion in 2006 after Sanyo ran into difficulties. Sanyo was seen as a secon tier company with good technology but tending to be unfocussed and in many businesses. Now with Mr. Sano chosen from Human Resources and who is a good communicator ad in weekly contact with Goldman Sachs the company has exited businesses like mobile sets sold to Kyocera and is focussed on energy products like batteries and solar panels.

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Millenials are showing different shopping habits including using online shopping services for groceries, using stores like Target or Wal-Mart, and convenience stores, or discount stores such as Aldi. With high student tution some are careful buyers reducing cost.

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The "cut, cap and balance" pledge of Republican candidates for the presidential election of 2012. The current House version requires capping federal spending at 19.9% of GDP by 2018. This say House leaders is in accordance with the average spending levels for the last 30 years. It would have to come down from 24%. The balanced budget amendment caps spending at 18% of GDP and a balanced budget within a decade. The pledge is written promise to cut spending immediately.

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Ruchir Sharma, head of emerging markets at Morgan Stanley Investment Management, provides insights into the economc problems facing Brazil in 2016. He points out that 41% of Brazil's GDP goes into public spending by local, regional and national government, crowding out private investment. The tax burden is high at 35% of GDP. And under the Rousseff administration budget discipline has been lacking. Compared to the Lula government running consistent surplus Ms. Rousseff ran a deficit of 10% of GDP. With a large welfare state, the budget has rigidities, says Sharma, with public pensions increasing since 2000 from 3% to 7% of GDP, and heavy state spending tending to push interest rates up and increase borrowing costs. Retirement age is 54 and 52 for men and women respectively, and pensioners get 90% of salary, compared to 60% in advanced countries. The decline in commodity prices has hit Brazil hard because 67% of exports are from commodities such as soyabeans in 2016 compared to 46% in 2000. Manufacturing accounts for only 11% of the economy. As long as high commodity prices supported the lavish welfare and public spending Rousseff's popularity remained high at 60% as recently as 2013. The collapse of commodity prices has hurt the economy leading to growth of negative 3.5% in GDP. Rousseff's popularity hit a low of 11% as public protests over poor public services, were followed by a series of corruption scandals. Even if impeachment led to new leadership the problems are deep rooted, with neglect of education, healthcare, public services, and manufacturing industries, and heavy public spending no longer supported by high commodity prices. Some of the problems existed in the boom years of the Lula administration, only covered up by the commodities boom cycle, and becoming evident in the down cycle of the Rousseff years. ...

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This report in the NYT says Hillary Clinton has studied policy briefings, academic papers and taken advice from 200 policy experts, including experts from Bill Clinton's administration such as Alan Blinder, all in an effort to define her own policy positions on issues facing the U.S. This happens at a time different from the period of slow growth when Bill Clinton ran against George H.W. Bush. Since then middle class families face the added problems of not being able to keep up with the rising cost of college education, health care, child care, low interest rates on savings and volatile markets dampening savings growth. For working class Americans in the middle class during Bill Clinton's time in office the problems take the shape of a sharp decline in the manufacturing wages that once supported a middle class life in industrial states of the midwestern U.S., with global competition doing the damage, and few solutions available except improving technology and technical skill of the workforce to compete in higher end products. Consider the points made by Janet Yellen, the Fed chairwoman at a Boston Fed conference in Oct. 2014- Fed information for 2013 showing the average net worth of the lower half of American families representing 62 million households is $11,000. Only this conceals the situation facing one fourth of these families who have zero wealth or negative net worth, and a significant fraction owing more on their homes than they are worth. Hillary Clinton told a audience at the New School in Greenwich Village in New York, this is the defining economic challenge of our time. " We must raise incomes for hard-working Americans so they can afford a middle class life. This will be my mission from the first day I'm president to the last."...

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Production delays, outsourcing issues and other problems are now hurting Boeing with cancellation of orders as airlines with lower profits in today's economic uncertainty are unable to take advantage of the new fuel efficient 787's in timely manner. Quantas first placed its order for upto 115 Dreamliners in 2005, and it hoped to reduce fuel costs with the 20% more fuel efficient Dreamliners than its 767 planes, which it hoped to retire. 28 Dreamliners were to be delivered by the end of 2011. This never happened as Boeing ran into production problems and only 17 were delivered to all airlines by September 2011. With the global economic uncertainty and slowdown Quantas is predicting a 90% drop in pretax profits for the fiscal year ending in June 2012 to A$50 million. With the situation changed Quantas decided to change the order by cancelling the orders for the larger 787-9 Dreamliner and keep the order for the 15 smaller 787-8 jets to save $8.5 billion. This follows a change made by China Eastern Airlines to cancel orders for 24 787s and buy smaller single aisle 737s for domestic flights. As a result Boeing's total orders stand at 824 in mid 2012, with only 7 new orders since 2007. Boeing says it needs to sell at least 1100 Dreamliners for the 787 program to be profitable. Its own forecast is for sales of an additional 2700 small twin aisle jets like the 787 between 2012 and 2031, with Boeing getting half of the market. The larger longer range 787-9 model will start delivery in 2014 and another version for more capacity on shorter routes the 787-10 is being discussed. Both programs Boeing's 787 Dreamliner and the competing Airbus A-350 program have suffered a series of production problems, outsourcing issues and delays in recent years. ...

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Lee Cheuk-yan, chairman of the pro-democracy Labor Party, describes the 17 year old Wong and young people in high schools to a crowd in Hong Kong in this way- these are very young faces, the old men in Hong Kong including many in the elite who dared not to speak up for Hong Kong's cherished traditions and rights out of caution will die, but these young people will carry on. Wong started the group Scholarism as an internet based movement to fight the 2012 "patriotic classes" plan of the Communist Party and Hong Kong Chief Executive Leung Chun-ying. That movement took hold in Hong Kong and the government had to shelve the plan. This time he is fighting for universal suffrage in Hong Kong in 2017 with the right to elect its own leaders without prescreening by the Communist Party. This is in the spirit of the Basic Law, former Hong Kong Governor Chris Patten tells the BBC. Patten helped negotiate the transfer agreement for Hong Kong and handled the transfer in 1997. In August 2014 China changed this intent leading to protest demonstrations. Wong is of Protestant parents who helped stir in him a sense of opposing social injustice. Beyond Hong Kong there is something else at work- a sense that the new leaders in Beijing are choosing the Putin Way that sees these demonstrations as inspired by foreign forces and treating all NGO's as foreign agents. In a larger sense the old leaders are living in a past world of territorial gains and keeping tight grip on power, when the world is now interdependent economically and politically, with change requiring new approaches to problems. The presence of 15 year old high school students and very young generation suggests no such foreign interference, as most of these students are very young....

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Smaller biotech firms typically have products in the development stage and are not making money. Now they are facing increasing financial hardship. Even in good times except for a few names like Genentech and Amgen, the others are struggling. They have a hard time raising money, and its coming at a higher price, 90% of equity instead of 50% like before for 5 or 10 or 20 million dollars. Older shareholders are diluted with new capital raised. And some are selling out. Others are going into bankruptcy liquidation, after wrenching periods of firing most of the staff. Even blue chip firms like Helicos of Cambridge, Massachusetts, which went public in 2007, and has backing of advisors like Steven Chu, the Nobel Prize laureate, are in trouble; with its DNA reader designed to produce custom tailored cancer treatments at $1 million a piece. It has not booked a sale, faces competition from a reader developed by two companies, Roche and Illumina of San Diego. It almost ran out of cash last year. Helicos shares $18 last year, are at 54 cents. According to Burrill and Company, a venture capital concern, 100 of the publicly traded biotechs this year may be lost as companies fail or get taken over. 120 of the 360 publicly traded biotechs have less than 6 months cash left, compared with 12 a year ago, says Burrill. Already 10 have declared bankruptcy according to Biotechnology Industry Organization. BIO is asking Congress to step in and for the government through the National Institutes of Health to provide matches for private investment in small startups with promising treatments. All this is happening as companies are spending large sums for mergers like the Pfizer Wyeth merger. ...

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Manufacturing could be the bright spot for the U.S. in 2021 and the years ahead. The pandemic has hurt industrial production in the U.S. in 2020. This brings manufacturing in the U.S. to a new low. This report in the WSJ says there is hope today because negative trends are about to be reversed. During three decades since the eighties three trends hurt the U.S.- lack of sustained capital investment, noncompetitive labor costs, degrading infrastructure.  To make the reversal of these trends and raise American manufacturing to what it was after World War II attention is being paid to these negative trends. The response- a quick recovery from the recession,  localization of supply chains, technological advancements to close the gap with competitors. By market capitalization on S&P 500 the U.S. manufacturing industrial sector was 15% in 2000, in 2020 it is 9%. Hope today lies in the determination to reverse the trends in this sector and regain leadership. Even in the aerospace sector the determination and legacy of American manufacturing is strong. Recently the WSJ ran a story on how David Farr, the CEO of industrial company Emerson Electric, which makes automation equipment for factories and aerospace parts based in Ferguson, Missouri, managed his company through the pandemic so that it was posed to return quickly to full production. Against all the hurdles he would not give up and fought hard in each battle with suppliers, governments and the pandemic.This bodes well for American manufacturing coming back on quickly even in tough markets such as aerospace and automation. Other factors WSJ mentions are quick reversal in hit to earnings, robust demand. Consumables have sprung back up fastest, but automobiles are also holding up in demand. This leads us to the localization of supply chains. Companies realize the risks of tensions in the South China Sea and technology theft today in a way that they did not before and this is changing the mood resulting in plans to move production onshore. Warnings from the Trump administration played a role with new tariffs on Chinese imports. Shipping products halfway around the world no longer makes sense, especially in losing control of supplies. Emerson depended on production off shore in China and other countries and panic from the pandemic set in quickly that everything would come to a halt as supplies stopped coming and Emerson could do nothing. The economics WSJ points out are also different today with labor cost inflation in China and labor cost deflation in the U.S. which improves U.S. competitiveness. To make U.S. labor cost competitive with China says Scott Davis in WSJ, one has to make the same quantity of product with half the employees, and this is now possible with automation technologies in 2020. The result is that even at this low point in manufacturing one can see the future is bright for the USA as it moves rapidly to rebuild the strength in manufacturing it had for most of the twentieth century. ...

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Samuelson points out that the golden age of bipartisan harmony never existed. Yet it is true to say that with the constant chatter on cable television and stridently expressed views, the activism of the more extreme wings of both American parties, and the role of money in politics, the partisan nature of politics in America has increased. And this is happening even when the Gallup polls from 1992 and 2010 show similiar numbers for the people who describe themselves as Conservative, Liberal or Moderate, showing that the people themselves haven't changed (42-43% Conservative, 35-36% Moderate, 17-20% Liberal), but activism at the edges of both parties has. In this condition, only 7% of americans have a "very positive view" of the Republican party, only 11% of Americans have a "very positive view" of the Democratic party and only 12% of Americans have a "very positive view" of the Tea party (even though the Tea party is at the height of its mometum). The net impact says Samuelson is that the nation's important problems get neglected. There is little discussion about the expenditure of blood and treasure in Afghanistan, says Tom Brokaw, see his article. There is little discussion of the need to rebuild America's deteriorating infrastructure. Or a serious discussion on deficits or energy. All this is lost in the dysfunctional politics of the moment. This is a significant observation....

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The defeat of Eric Cantor in a Republican primary in 2014, by David Brat, a professor of economics at Randolph-Macon College of Ashland, Virgina. Brat did this with just $200,000 and the support of local talk show person Laura Ingraham, compared to $5.4 million raised by Cantor. Brat did this without national Tea party support, depending more on local activism in a conservative district, and the sentiment locally for Anybody but Cantor (ABC). This shows how quickly sentiment on the ground can change, as Cantor had previously won primaries with much as 79% of the vote in an area stretching from Richmond to the Washington suburbs.