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A change in the union voting rules authorized by the National Mediation Board which helps unionization efforts at airlines- with an impact on Delta Airlines- is holding up the U.S. Federal Aviation Administration's funding reauthorization bill in Congress. With Congress in recess some of the FAA work in modernization of airport navigation systems will come to an halt. Normally FAA funding is made for the long term for a number of years but the last such funding bill expired in 2007. Since then the FAA has operated using 20 extensions because of Congressional differences.

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The U.S. is falling behind China in the race to setup 5G technology networks. This requires government collaboration with private industry that was missing in the U.S. China has taken the lead by prioritizing 5G global leadership through central planning, subsidies, university training, and recruitment of tech talent. 

In the U.S. a small group of activists made net neutrality an issue says the WSJ leading to extensive proceedings at the FCC and acting as a distraction from the task of setting up 5G capabilities. The U.S. now has to catchup in this field using its strong 4G network for upgrading to 5G and its innovative tech culture for the apps needed.

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Obama ACA subsidies to go directly to the people through Health Savings Accounts proposed by Republican Senators Graham, Scott and Cassidy in 2017, and again in 2025, and not to Insurance companies. In a post on his social media site DJT tells Congress that the ACA subsidies given directly to people rather than money sucking insurance companies would lead to a better result of people getting their own and better coverage for less money than under Obama type subsidies sent to insurance companies.  Much of Obamacare was done under a campaign from insurance companies and other health vested interests that undermined the original objectives so that however good the original objectives the watered down, disincentivising of reducing unproductive costs, led to a hotch potch band aid result. A common sense approach with the courage to get the right result that works for the people of the Nation to get good health care similar to Japan and other nations in Europe at reasonable cost is not a goal that an advanced nation like the US should see as unreachable or beyond our efforts, skills and wisdom. Obama and Bush failed, Bush in a major error to remove the negotiating power of government Medicare agency with pharmaceutical companies that Democrats failed to push back. ...

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Two parts per million of lead in cinnamon is the maxiumum that is considered normal. Five parts per million of lead in cinnamon is considered bad for health. Children are particularly affected by lead contaminated products. High lead contamination in applesauce product pouches lead to recalls by the US FDA recently. In the case of the cinnamon applesauce pouches this Washington Post report says federal investigators have called it "an act of economically motivsted adulteration." The European Union limits lead to 2 parts per million. McCormick & Company says it adheres to strict safety protocols and procures whole cinnamon bark rather than ground cinnamon to control adulteration and contaminant. Frontier Coop which sells brands Simply Organic and Aura Cacia says it tests for heavy metals and follows New York standard of one part per million of lead in spices. People are discouraged from buying in bulk for turmeric and cinnamon as this creates risks of contaminated or adulterated product. ...

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The federal government in the US is providing internet connections to rural part of America through its Internet for All program. The Biden administration has committed $60 billion to this program. At what point is satellite service that is less reliable but more cost efficient an alternative, asks this report in WSJ if service in Montana can cost $300,000 per location, or in a Indian reservation in Nebraska at $54,000 per household. These are remote locations and require drilling in mountainous areas and under the Missouri river. For the majority of locations the  average FCC Rural Digital Opportunity Fund location cost is $1753, the Treasury Capital Project Fund $3313, and the tribal projects are outliers for isolated spots. The government prefers fiber optic cables because this is good for generations to come for upgrading, and the benefits of this service will make rural areas of America attractive to live in for decades to come, say officials.

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How ACA a company that provided bond insurance for Collaterized Debt Obligation or CDO's basically did not provide good insurance to the CDO issuers becase it did not have the financial resources necessary to do this but instead let banks and investment houses to benefit from the accounting rules in the insurance industry which allow another set of accounting rules different from GAAP (Geerally Accepted Accounting Principles). Under these rules banks and investment houses did not have to follow the mark to market rules of GAAP and could book the difference between interest payments and the insurance premium across the life of the bond (5-10 years), in the quarter they bough the insurance, what were essentially illusory profits. Merill Lynch issued a lot of these CDO's. In November 2007 ACA was forced to take $1 billion in losses for the third quarter. Standard and Poors downgraded ACA from A to CCC a month later. The downgrade forced ACA to come up with more collateral to show that it had the funds to back up its insurance. When it came short of funds Merrill Lynch, UBS, CIBC had to take big losses on these policies. This began the first big shocks on the Street at te end of 2007. Note that $43 billion in securities backed by risky corporate loans and bonds like the ones used for a lot of the buyouts have insurance from ACA. These could be the next to sour and lead to more writedowns as the economy weakens. ...

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The candidates being considered for Governor of the Bank of England to succeed Mervyn King by a four person panel at Treasury are- Mr. Tucker, the deputy governor, Mr. Burns who heads Spanish bank Santander's UK operations, Mr. Turner, the chairman of the FSA, and Mr. Vickers of the Vickers commission on banking, a former Bank of England economist. Mervyn King retires in June 2013.

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A passenger hears aloud noise near the overhead bin, then sees ahole not far from his head in the fuselage of the plane. This is Southwest flight 2294, June 13, 2009, on a 30 minute 737 Boeing airplane flight from Nashville to Baltimore. outhwest inspected all of its 181 737 planes and found no problems. The National Transportation Safey Board, the FAA, and Boeing are investigating what caused it to happen. In March, the FAA ordered Southwest to pay a$7.5 million fine for aseries of safety violations in which its jets were flying with undetected fatigue cracks. The investigation also uncovered efforts by managers to cover up reports of maintenance problems at Southwest. Two inspectors filed whistleblower complaints aginst the FAA claiming that they were threatened by the superiors after warning that Southwest was flying planes too long between inspections.

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German drug company Boehringer has applied for FDA approval for a drug that treats low female sexual drive for premenopausal women. A staff report by the FDA recommends not approving the drug. An FDA advisory panel meets this week to vote on whether the FDA should approve it. Meanwhile Boehringer is setting up a marketing campaign for the drug, including a website, Twitter feed, Discovery Channel documentary and a publicity tour by Lis Rinna, a soap opera actress. Boehringer's R&D designed the drug to treat depression but it did not work. Along the way Boehringer discovered that this drug, flibanserin, taken for weeks restores female sexual drive. It works by reducing the brain chemical serotonin and increasing dopamine. Results for this drug in a medical conference report show that the increased self-reported "sexually satisfing events" to 4.5 a month on average, and this compares to 3.7 a month on a placebo, and 2.7 for women not taking any pill. Critics at Georgetown University say this shows how drug companies are medicalizing normal conditions, and working on the insecurities and psychology of people. ...

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600,000 knee replacement surgeries a year in the US and 30 million suffering from osteoarthritis. The Wash. Post looks at new options which include use of coral that can repair the cartilage in a knee. The coral is part of Agili-C approved by US FDA and developed by CartiHeal. It is made from a calcium carbonate that is derived from exoskeletons of coral that act as a scaffold in the body to help regenerate bone and tissue, says the Washington Post in this article.

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Amazing! Just fresh from the foreclosure crisis and as the worst of the foreclosures are taking place between now and 2009 for subprime and other loans homebuilders and home sellers are financing the 3% downpayment required by FHA for loans from the is government agency. What do they hope to accomplish sell homes and have the government foot the bill when these homes also go into foreclosure in a downturn? Already above average default rates for seller assisted down payment programs will make this government agency the Federal Housing Administration ask for a government subsidy for the firtst time in its 74 year history. The FHA will need $1.4 billion next year. FHA estimates that down payments provided by nonprofit groups account for 34% of all 200,000 loans backed by the FHA so far this year, up from 18% in all of 2003, and less than 2% in 2000. And FHA says that borrowers are 2 to 3 times as likely to default on their payments when they receive a down payment from a nonprofit. The reckless manner in which homebuilders are selling these homes is unbelievable, more so in today's difficult economy. See the ads for these homes in this WSJ article and its is shocking. D.R. Horton is advertising 100% financing for 2 and 3 bedroom homes near the beach in Maui, costint $498,000, and a Seattle area builder Quadrant corporation is advertising townhomes for $500 downpayment. Use your coffee budget says a online promotion in the St Louis area! And though the risks are known to housing officials in the government they face a battle from well funded and coaltition of homebuilders, lowincome housing and minority groups. though its hard to understand how a home that ends in foreclosure for a low income group or minortiy group can benefit a minority group. Yet the Black and Hispanic caucus, people in Congress like Maxine Waters and Barney Frank still think it does as they continue to support the lobbying that keeps these kinds of loans going. Two examples given here of a Dick Whitmore and a Gloria Harris one saying it was impossible for him to come up with the $5000 downpayment and the other saying she was living from week to week suggest that they are likely to end up having difficulty making payments. ...

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As Governor of South Carolina for two terms 2011-2017 Nikki Haley played a major role in getting Boeing to expand its operations in the state and attracting auto companies and other manufacturing industries. South Carolina had suffered from the decline of its textile industry from an earlier industrialization era. She personally helped recruit smaller companies such as Kent Cycle to set up plants in the state.  Nikki Haley's father Ajit Singh Randhawa  is from Amritsar, India, and went to the University of British Columbia on a scholarship for advanced studies in 1964. He was a professor at Punjab Agricultural University before going to Canada. His wife Raj Kaur had a law degree from University of Delhi and after getting a Masters degree in education taught in public schools in South Carolina for 7 years. Ajit Singh moved to South Carolina as a professor of biology at Voorhees College after receiving his PhD. in 1969. Nikki Haley graduated from Clemson University in 1994 with a Bachelors degree in Accounting and Finance. After working for FCR she joined her family's clothing business started by her mother. From 2005 to 2011 she served in the South Carolina House of Representatives. The report from Politico on Haley's career shows her to be resilient and sticking with her beliefs and principles even as she found herself to be the only immigrant  prominent in southern state politics of South Carolina. She also served as US Representative at the United Nations 2017-2018 following two terms as governor of South Carolina.  ...

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New Hampshire is known from poet Robert Frost's days to chart out its own path. It did so yesterday in typical Robert Frost ways- "Two roads diverged in a wood and I- I took the road less traveled by, And that has made all the difference." Fettterman of Pennsylvania Masto of Nevada, Shaheen of New Hampshire and King of Maine all Senators who helped get 8 Senators to vote with Republicans on ending shutdown Nov 10, 2025. Tim Kaine of Virginia was pulled in because of the 300,000 federal workers in Virginia that are his constituents for whom he felt a special responsibility and negotiated with Republicans to reverse layoffs, get back pay. This may be a key achievement of Time Kaine that is truly bipartisan. New Yorkers Schumer and Jeffries not having a federal workforce to worry about had no such responsibility and led the effort against a compromise. Masto says she saw long lines in northern Nevada for food pantry that she had not seen since Covid. Maggie Hassan joined King and Shaheen from their part of Maine-New Hampshire, and Masto was able to pull in Jacky Rosen of Nevada. All these senators are not up for reelection next year and Dick Durbin is retiring next year. As an experienced leader of Democrats Durbin might have felt that the Schumer-Jeffries demand on ACA subsidies was only going to hurt Americans who needed help, that 40 days of shutdown was accomplishing little. ...

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A new House bill would give the FDA new funding to finance more food inspections and hire more employees for ensuring nations food safety system works properly. Inspections would go up from 7000 to 9000 and 350 more employees would be hired. To help fund this $500 per facility would be charged to food companies each year in fees.

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In a factory the size of 5 football fields located in Gurnee, Illinois, Abbott Labs makes its BinaxNow Covid-19 home tests. Abbott turned out 1 billion tests in 2021 and at one point had 80% of the market. Along with Pfizer vaccine, BinaxNow Home covid-19 tests are a dominant product during the pandemic. Abbott generated a fifth of its $43 billion in revenue from these home tests. Abbott faced several hurdles along the way. It gained when the US government authorized it to make the test. Yet after vaccination took off by mid 2021 the demand for tests declined and Abbott nearly idled its giant factory in Gurnee. Delta and Omicron variants led to a sudden reversal and surge in demand. Abbott developed its test based on an existing design it used in the US for flu tests, by a company it inherited by acquisition called Binax. To do that test one sends a swab up the nose, add that sample and a liquid mixture to a rectangular paper card, and close the card shut. The liquid then travels up the paper strip, revealing one or two pink lines, one for negative, two for positive. This is done in 15 minutes and the simple design described as a lollipop shape, put Abbott far ahead of competitors. The US FDA authorized Becton Dickinson and Quidel to make the tests before it authorized Abbott, but these rival companies had a poor and complex design. The Trump administration gave Abbott a $760 million contract to buy 150 million tests for distribution to health departments, long termcare facilities, nursing homes, and schools. And by October 2020 Abbott was already making 50 million tests a month. When it comes to distribution Abbott tapped into its pharmacy connections for baby products such as Similac baby formula. This gave it an advantage over Quidel and others who also lacked the manufacturing knowhow for large scale ramp up. The BinaxNow in pharmacies was sold at $24 for a box of two tests, while government paid $5 for one test. Abbott says it makes $ 7 per single consumer test. Yet there was one problem waiting to hit Abbott in 2021- demand dried up as the vaccination campaign took off. In fact the plant manager, Mr. Rodriguez, planned to move to another job inside Abbott as production declined. Then came the Delta variant and he was asked to ramp up production again. With Omicron demand soared. The Biden administration committed $3 billion to help boost test production and asked Kroger and Walmart to sell over the counter tests at cost for 3 months. Abbott had to lure workers from Amazon at $25 an hour for the Gurnee plant expansion. What was learned by the government and Abbott from this experience? The US government now looks for ideas in meeting demand volatility, supply challenges and production needs,. Sustaining production capacity is important for future virus flareups- a new government-industry partnership is required for maintaining test making infrastructure. With government help Abbott plans now to keep the facility at Gurnee operating indefinitely. ...

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Just as the drug industry is more getting more dependent on the government with the medicare drug benefit raising the retail drug purchases paid by government to 34% in 2006 from 28% in 2005, the industry is facing more governmental scrutiny, from the FDA, from Congress from the public, and during this election campaign. Rep .Rosa DeLauro, who heads the House appropriations subcommittee that has oversight over FDA funding compares the drug industry to the tobacco industry saying that it requires the same amount of scrutiny. At the same time the drug industry is aware of the changes in the public mood and the recent controversies over drug studies, such as the one on Vytorin and other controversy. It is initiating some voluntary changes, registering clinical trial results, submitting commercials to the FDA before they air, and under pressure from medical journals registering trials before they are performed. A new law will requires and its not clear whether the drug industry is dragging its feet and then making changes when there is increasing public pressure. This is the feeling of the medical journals like the Journal of the Medical Association and the New England Journal of Medicine. JAMA's editors will be keeping up this pressure as they have more articles showing how the drug industry manipulates data and the need for public skepticism of information that comes out of the drug industry. The New England Journal editors expressed the need to publish information that helps doctors get all the available information, and not just the information from the drug industry that makes the drug look better than it really is, such as the information and analysis it provided on antidepressant medications. The chairman of the energy and commerce investigations subcommittee Rep. Stupak, finds the advertising for drugs contains information that cannot be backed up and not true ethically, medically, or legally. As this reflects the public mood look for more investigations in Congress and investigative research by the journals. On the issue of importation of drugs from Canada there is bipartisan support as both Senator McCain and Senator Clinton support importation. Clinton supports legislation that allows the FDA to approve new generic versions of biotech drugs which would lower prices of biotech drugs. And with the US consumer budget facing strains in a recession there will be increasing pressure and demands for relief in the area of drug prices, especially for the elderly and uninsured and from corporate payors. ...

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Honda's hydrogen fueled FCV car will go on the market in Japan in March 2016. The car is designed for people who are looking for a zero emissions car that can fuel up in a few minutes for 300 mile range driving and are located near hydrogen fueling stations. About 50 such stations will be up and running in California by 2016. Honda has not given a price for the car. A similiar hydrogen car the Toyota Mirai price is estimated at $60,000.

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The head of the U.S. Department of Health and Human Services, Mr. Alex Azar, repeatedly assured the president as early as January 29, that there never had been a better interagency response to coronavirus, says the WSJ. This WSJ report says based on interviews with administration officials and others that Mr. Azar waited for weeks to brief the president on the threat from coronavirus, did not coordinate effectively across the health divisions,  failed to ramp up testing development, and oversold what had been done. Testing is one of the key issues raised at this time about the coronavirus effort. Mr. Trump tweeted on April 12 that Mr. Azar "told me nothing until later." The president was dissatisfied with Mr. Azar's handling of the flavored e-cigarettes ban. This report says Mr. Azar was slow in working with other agencies such as FEMA, and in involving directly the FDA, CDC, and other agencies, to create a strong and effective response to a fast developing public health crisis of enormous proportions. In February White House advisors were critical of Mr. Azar for delays in the testing program. As the delays progressed this report says Mr. Pence and the White House gave more responsibility to FEMA, and Dr. Hahn and CMS's Ms. Verma were made active members of the White House Task Force. FEMA also played a bigger role with greater funding.    ...

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With a shortage of nurses and healthcare workers, some hospitals are dropping the vaccine mandate for healthcare workers. Shortages existed before the pandemic. The burnout for healthcare workers led to people dropping out. The lure of high pay has also led to nurses to travel to hot spots further crimping supply of workers. Recently workers who do not want ot get vaccinated have quit the industry or lost their jobs, some have left for facilities that do not follow the vaccine requirement. CDC estimates 30% of healthcare workers at 2000 hospitals in the US are unvaccinated as of September 2021. The Biden vaccine mandate would be effective for second shots by Jan. 4. A federal judge in Louisiana has ruled in Nov. questioning the president's authority for a vaccine mandate. Following that ruling HCA, AdventHealth, Tenet, Cleveland Clinic are among the hospital chains reversing earlier decisions for vaccine mandate. Other hospital chains in California Kaiser Permanante and in New York Northwell Health have kept the vaccine mandate. Kaiser had 98% staff vaccinated, with a similar situation at Northwell. Kaiser has 210,000 employees and Northwell 77,000. Utah Mountain also has 98% vaccinated.  Research on vaccine mandates suggests them to be effective. U Penn psychology research shows people are more likely to get encouraged to get vaccine than discouraged with a vaccine mandate not vaccinated working in healthcare in September will shrink considerably by January. ...

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The defensive nature of invesments in healthcare sector with increasing uncertainty in the 4th quarter of 2014 and the first quarter of 2015. The S&P 500 Healthcare Index trades at 17.3 times earnings for the next 12 months, up from 16.7 at the beginning of 2014, according to FactSet. By comparison the S&P 500 trades at 16 times earnings. A major factor pushing earnings is the development of new drugs for cancer, and other diseases. FDA approved 41 new drugs in 2014, up from 27 in 2013, and 39 in 2012.

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Jack Horton of BBC Verify screens the former president Trump's speech at the Republican National Convention. “Our crime rate is going up, while crime statistics all over the world are going down".  Fact: FBI data shows crime down 6% and a drop in the murder rate by 13% in 2023. For the First Quarter of 2024 crime down by 15% and recorded murder rate down 26%. "We've had the worst inflation we've ever had under this person [Biden]. I will end the devastating inflation crisis immediately, bring down interest rates and lower the cost of energy . We will drill, baby, drill."  Fact: Inflation went up to 9.1% from 1.4% at the end of the Trump term in the first 2 years of of the Biden Administration by June 2022. Biden and Federal Reserves Powell brought this down to 3%. Explained: This inflation jump to 9% would have happened from supply chain in China for Trump administration as well. Trump's last year was 2019 the Covid pandemic started in January the lockdown by midyear meant sharp drop in demand and little room for inflation. The concentration of supply chain in China was the cause of the surge in inflation as China shut down and restarted late into 2022 causing shortages in factory parts and supplies. Biden focused on vaccination in 2020-2021. This inflation would have happened under Trump- this concentration of supply chain started with Reagan economic philosophy to ship production (and jobs) overseas, Clinton Bush Obama and Trump did little about it. Biden invested heavily in Make in America manufacturing and jobs at home. Biden and Powell did a good job of bringing this inflation down by 2023 to 3% before the European Union and UK. Younger voters don't know this they get their news from the internet and show little interest, see only that the low inflation under Trump and the higher inflation during the pandemic recovery under Biden and blame Biden. will Trump do better on inflation in 2024-2028. The WSJ does not think so its analysis shows inflation higher under Trump than Biden because of a planned 60% tax on imports from China. Trump follows Reagan/Friedman theory of the old Republican party of higher tax cuts for the wealthy, so no money is left for investing in American manufacturing and jobs as Biden free of this theory is able to do, leading to slowing growth with inflation under Trump.        ...

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Quidel Corp. gets the first FDA approval of an antigen test which tests for the disease itself. Quidel is a company specializing in tests for the flu and infectious diseases. It uses an older technology to detect the disease. Quidel CEO Douglas Bryant, says he will ramp up the manufacturing of the test to go from 200,000 tests a week in the week of May 11, to more than a million a week in several weeks. The current testing technology has several shortcomings. The most common test so far is the PCR test which magnifies virus particles to ease their detection. It is cumbersome technology because it takes time to run the test and analyze the results. The new antigen tests have several advantages. They have a simpler design, are easier to process, and can be produced at lower prices because of the simpler design. They are designed to identify the virus in people in real time, to process results quickly in minutes in Quidel's Sofia analyzers. Because of the simple design and proven technology it can be scaled up quickly to do millions of tests.  The U.S. currently has the problem that it is not able to do enough testing- about twice the current rate is needed to do what health experts recommend. A minimum of 4 million tests weekly is needed and followed up with contact tracing to make it safe for people to go back to work, says Ashish Jha of the Harvard Global Health Institute.   The U.S.   ...

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The use of fast track procedures under 510 K, for approval of Ren-Gen's Menaflex product to treat knee injuries. Under 510K rules for fast track no clinical trials are required, because the product is similiar to already existing products. Menaflex does not have asimiliar product, yet the FDA allowed Menaflex to be treated as fast track. The closest is orthopedic surgical operation, which is quite different. Menaflex is a C shaped pad used to repair a torn meniscus, a rubbery substance made from cow collagen that that acts like ashock absorber between the knee bones. Their is a booming market for meniscus repair among sports athletes. In fact originally Ren-Gen did not even apply as fast track, but only afte its clinical trials ran into trouble, did it try for fast track, which was turned down several times. At which point Ren-Gen got Democrats Senator Robert Menendez, Rep Frank Pallone, Chairman of the Health Subcommittee of the House Energy and Commerce Committee, Rep Rothman of Hackensack where Ren-Gen is based, and Senator Frank Lautenberg to intervene. At this point Senator Menendez and the others wrote to the FDA Commisssioner Dr Von Eschenbach, and Menendez spoke to the Commisssioner personally on the phone. After this intervention things started moving in Ren-Gen's dirtection, bypassing the FDA staffers who had reservations, and a special panel was appointed that again excluded anyone that had reservations, in an unusual procedure, which approved Menaflex. Now Congress and the Obama administration are being asked to review the whole process the FDA uses for medical devices because of the controversy this has caused about what is seen as unfair influence of companies in FDA approval process. Menaflex say those who had reservatoions faces alot of pounding and wear and tear between the knee bones and its safety and effectiveness needs to be proven before approval. It has been approved in Europe for afew years, but only 2800 patients have used it in Europe, only a small proportion of patients, and not enough is known about its effectiveness and any issues. ...