LyrArc Article Gist
How the expression "owning the libs" found its way into the current vocabulary and its meaning today. Seen as it relates to the Republican party and choices of some sections of the party to overemphasize the importance of so called culture wars on the difference of opinion about abortion and women, immigration, diversity. This happens in the context of the larger issues of national importance of national character, America's leadership in the world, America's position in science and technology in the world, American education, fighting climate change and rebuilding the nation's infrastructure. After the Ukraine war, differences with China, and the reorganization of America's supply chain in the world reducing concentration in China, creating new opportunities for America in science and technology leadership, a new attitude is taking hold. One that deemphasizes this type of "owning the libs" discourse that leads nowhere in rebuilding America to rebuilding America and also its European and Asian allies to prepare for a better, hope filled future. ...

LyrArc Article Gist
Coronavirus testing is being ramped up in the U.S. as the Food and Drug Administration new regulations allow commercial labs to manufacture and distribute  coronavirus tests. Now many players can now acquire and conduct tests including state and local governments, hospitals, universities, and private companies. so that tracking nationwide distribution is still difficult. Deborah Brx the response coordinator of the White House task force on coronavirus says U.S. has completed 220,000 tests in last 8 days.  In New York the scaled up efforts in a region with over half the coronavirus cases in the U.S., 13,000 were tested on Monday, March 23. Some hospitals in New York such as Mount Sinai expect to do double or triple the tests a day in a scaling up effort by March 30. In Los Angeles a city councilman negotiated with a South Korean company for delivery of 100,000 tests a week, having already secured 20,000 new tests. Additionally swabs and protective equipment are also needed to conduct tests and labs need to process results with speed. ...

LyrArc Article Gist
Biden's record on taking America through the pandemic, and getting the largest vaccination program in history like that of prime minister Modi has been forgotten to some extent by the Nation and more by the media than the Nation. Decisions on supply chain concentration in China were made long before Biden for decades since Clinton and Bush, Obama and Trump, which caused the spurt of inflation and cost of living to 9% that has so disconcerted Americans on incomes below $100,000. Biden and Fed chairman Powell brought this down to 3% in 2023. Yet the cost of living in housing and transport has lingering effects that lead to people describing Biden's record in a disparaging way as this title suggest, when it has through investments of trillions in aging dilapidated  infrastructure and in renewable energy, chips, science given America a pathway to a bright vision for the future. It is left to Kamal Harris to communicate this vision and what it offers for America's future. ...

LyrArc Article Gist
Knowing the thinking and mood of the younger generation of engineers programmers and other staff is critical. They are more optimistic and impatient about things so companies have to move quickly to change things to retain talent. The other major change is the number of young women that are joining. Nasscom the software industry association in India says that last year this was 35% and will rise to 45% by 2010. This is amazing rise considering that it started from very low numbers and these young women are more vocal than the men. It means companies have to keep their minds open to gender issues and respond. Giving young people a voice in the affairs of the company, giving them achance to be not lost in the crowd, a shot at challenging assignments for the talented, some kind of inhouse training program in management and in other areas so that they can keep upgrading their education and value to the company, some peers and superiors assigned to mentor new employees, hiring from smaller cities so that those who want to be near family can do so and have higher loyalty than with chasing high level talent in bigger cities and supplementing with good inhouse training , are a list of some of the things being tried by companies. ...

LyrArc Article Gist
The German and French positions on solutions to the eurozone debt crisis are in conflict. As a result the negotiations between France's Sarkozy and Germany's Merkel are deadlocked. The basic differences revolve around three basic issues. Germany wants to see a lasting solution in which Greece debt is restructured so that banks and other creditors that loaned money to Greece voluntarily take losses so that Greece's debt can be reduced to a sustainable level of no more than 50% of what it is now. France, the ECB and the French banks do not want to restructure Greek debt in this manner beyond the 21% reduction in value of debt under the July 2011 agreement. The voluntary reduction in Greek debt by the banks would prevent a default by Greece and unsettling of the financial markets. France fears market contagion from the restructuring of Greece debt that would place pressure on French banks as the value of the Greek, Spanish and Italian sovereign debt French banks hold declines in value. That would require a major recapitalization of French banks and additional cuts to the French budget. Additional twists to the negotiations are that Sarkozy is unpopular in France with elections six months away. For this reason Sarkozy would prefer to recapitalize after 9 months. A way to get around the need for more deficit cutting (austerity measures) in France, is for the European Financial Stability Fund to be able to borrow money from the European Central bank. The ECB can print euros in that situation. Germany's chancellor Merkel has to consider German public opinion and experts from the German central bank, who are adamantly against using the ECB to print money and Germany committing itself to bankrolling most of the effort. Germany wants France to use its own money to recapitalize French banks, with Germany only responsible for recapitalizing its banks. Merkel told her parliamentary caucus in Berlin that "the path is closed for using the European Central Bank to ease liquidity problems." Because of Germany's insistence on financial soundness for any solution, France being in the more difficult financial position and Sarkozy facing elections willing to come up with a short term fix, and the unwillingness of French and German banks to take the losses necessary for a lasting solution, the Germans see a real solution taking a long time. ...

LyrArc Article Gist
Complacency from the Bush Administration reflected in the remarks of Edward Lazear the Chairman of the Council of Economic Advisors in the outgoing Bush administration. He sees no recession in the USA. "I would be very surprised if the NBER looking back at this period would date this as a recession" is what he is quoted as saying to reporters. He went on to say that the $152 billion stimulus of government checks mailed to the people, and Fed interest rate cuts should make the second half of the year a "solid growth period." What this means is that the moves by Congress to help homeowners stave off a new wave of foreclosures through a bill that just passed through Congress on May 7, 2008, is likely to be vetoed by Bush and efforts along the lines suggested by Martin Feldstein, Chairman of Council of Economic Advisors under Reagan, and Sheila Bair at FDIC, to help homeowners avoid foreclosure in her proposal may remain just that as proposals. This situation is likely to be turned over to a new President and make for an election that may revolve around economic issues, as the next wave of foreclosures lead to the start of a declining spiral in home prices leading to further loses in the credit markets and corporate bankruptcies of weaker firms and resulting losses in employment. Rising crude oil prices may result in much of the stimulus being eaten up by paying of some of the debt burden of consumers and rising costs of gasoline at the gas pump. And Feldstein has been very vocal, as have others, about the ineffectiveness of interest rate cuts in the current situation, even doing an oped piece titled "Enough of Interest Rate Cuts." In this sense the current spell of calm in the financial markets may be deceiving, giving Paulson an others in the administration a false sense of hope, and deprive the world economy of some reasonable action to prevent the wave of foreclosures and falling home prices that could set things distinctly downward in the world's largest economy and impacting the rest of the world....

LyrArc Article Gist
Francesca Doner's interview with Jean-Marc Duvoisin, CEO of Nestle Nespresso SA. Duvoisin was CEO of Nestle SA in Mexico before becoming chief of Human Resources for Nestle. He now heads Nespresso. Here he responds to questions about the competition from other companies such as Swiss supermarket Migros, which makes the coffee pods for Nespresso machines. Duvoisin says the competition is not affecting Nespresso sales and he sees the consumer insights from selling direct to the consumer as invaluable to Nestle. Nespresso's next challenge is markets in the U.S., China and emerging markets. He sees the shift from tea to coffee in China as a very gradual one. Nestle's focus is on making the coffee experience good for consumers so that they stay with Nestle for a long time. Strategy in the U.S. will focus on the long cup of coffee with milk and not on the espresso. This he sees as a more feminine experience, more relaxed and smoother. TV spots in the U.S. feature actress Penelope Cruz.

LyrArc Article Gist
India's robust debate as a democracy is of an astonishing size and diversity of opinion. The debate did not diminish when there was one federal party in many states under Indira Gandhi (1970's). It actually increased many times during this period compared to the period under Jawaharlal Nehru (1950's) taking the example of one state Gujarat as an example of what was going on in 18 states of that time. Newspapers in Gujarati such as Jansatta, Gujarat Samachar and others carried on a vigorous debate with opposing points of view to the Indira Gandhi government at the state and federal level of the 1970's. Most people in places like New York and London fail to understand or see the local language newspapers or are totally unaware of their existence, and the debate carried on in their pages. So that they falsely assume what a small group of English language newspapers tell them about the vigor of Indian democratic debate that is truly unmatched anywhere in the world. And in terms of its 22 languages in one nation one could say in the entire history of the world. Swapan Dasgupta in the Times of India gives the staggering number of publications today in 2023- 144,520 publications reaching 386 million people every day. And 392 television news channels . All in 22 languages. To ignore the local languages as if they did not exist is to ignore India as if a billion people did not exist. Or as it is for China to say that everything written in Chinese papers and Chinese news channels did not exist. Dasgupta also points out that one should take Mr. Modi and the BJP out of this as at the national level its a 10 year old phenomenon. Look back from 2010 for the sixty years from 1950 to 2010 and India was as badly misconceived, misrepresented, and misperceived back then. India he says fell from 105th place in Freedom House rankings in 2006 to 140th place in 2013. Mr. Modi only enters the picture after that. Dasgupta points out the small sample for these ratings 150 respondents and the methodology having missed much if not everything that is needed in a robust democratic debate. There is another aspect which is present which is prominent in New York and London and Washington D.C. and that is that non-alignment is not popular.  One has to see the way Adlai Stevenson running against Eisenhower twice in the 1950's very warmly received Jawaharlal Nehru on his visit to the US and compare it with the way the US perceived India under John Foster Dulles after Dwight Eisenhower was elected in 1952 to understand this aspect of American perception. Dulles was facing the Soviet Union and the British under Churchill then Macmillan had an equal disdain for Nehru's non alignment and tilt towards the Soviet Union. These root perceptions did not change with the Kennedy and Johnson administrations, and continued into the 1970's when Nehru's daughter Indira Gandhi was prime minister and continued non alignment.  India's political alignment after the pandemic is anything but non-aligned. It thinks, acts and lives in a way that is similar to the people of the US and Europe. Not even because it chooses to but because of what it is, coming from being part of its ancient path of Vedanta and Buddhist civilization that is the core Asian experience. It also needs to bring 400 million out of poverty and build the next phase of industrialization and modernization that requires fossil fuels in large quantities at lower prices to sustain its rapid growth. Some of it comes from Russia purely as an economic decision during the pandemic. The Biden administration fully supports India in this task of rapidly growth to meet the aspirations of a mostly young population- sourcing fossil fuels from whichever source that makes sense. To become a key part of the US new supply chain that reverses the overconcentration of the supply chain in China. It can only be said then that Freedom House has the peculiar affliction left behind from the John Foster Dulles period, combined with a bit of arrogance in failing to grasp the central fact of India which is its 22 languages forging one nation- a task nowhere seen in the history of the world. ...

LyrArc Article Gist
This is an indepth article on Donald Trump's financial holdings, looking at the debt that Trump has built up in his real estate dealings, by Susanne Craig of the NYT. To get a detailed look of this the NYT inquiry into the holdings engaged RedVision Systems, a national property information firm to search publicly available data. Much of Trump's business is shrouded in mystery. But it is well known that Trump has used debt to build his business in a way that is not considered good practice in business, having led to three bankruptcies. Trump says he "is the king of debt." And "he loves debt." The recovery of real estate values during a rescue effort for the country's financial system also helped Trump tackle debt in a way that was not available to other entrepreneurs who suffered from the oil price collapse- one of them McClendon also used debt aggressively and his business collapsed leading to suicidal car crash. You can love excessive debt only if the government supports you with some sort of financial guarnatee misplaced, or you are lucky to get away with it- just ask McClendon. The irony is that the rescue of the financial system led to the low interest rates that hurt savings of the middle and working class, and the lack of help to Main Street in the home foreclosure crisis also hurt the same people disproportionately. The Obama administration policies in this regard rescued the very same business interests such as the New York real commercial estate symbolized by Trump, that are now appealing to those hurt as president Obama worked to let the financial system recover. The intention was never to support excessively overleveraged banks or overleveraged real estate built on debt, but in reality this is what happened. A nation cannot run its financial affairs in this manner of overleveraging to extract high profits that an investment bank such as Lehman or Goldman Sachs does, or a real estate company such as Trump's does- if regulators let them do this. Normally after the financial crisis of such dimensions that it shook the world economy in 2008-2009 leading to fears of a collapse as happened in the 1930's, the same faces would not still be there. But this is a strange period or a transition period where things are being sorted out, and the same faces Blankfein at Goldman Sachs and Trump in New York commercial real estate are with us.  And though the bashing of Goldman Sachs connection to Clinton is evident in the campaigns of Trump and Sanders, the bashing of Trump real estate and finance companies with its overleveraging and bankruptcies is evident in the campaign of Clinton against one posing as a representative of the working class. John Paulson who benefitted by shorting mortgage securities that caused the financial crisis of 2008 is on Trump's top economic advisory team, including the hedge funds and financial interests on Wall Street that Trump is saying support Clinton. No one, not the NYT or WSJ, can answer this, its just the paradox of today's situation. Hillary Clinton can say she has learned her lesson, with her Methodist upbringing and her own supporters such as Robert Reich and others, and break with the past especially as it in no way contributes to her success as president, not one bit. In fact rebuilding the middle class and infrastructure require entirely different connections and views on life, a different imagination.  Trump has billions of dollars and a real estate business that is so complex that even the NYT and property information firms can only say that in the end it is shrouded in mystery. Companies owned by Trump says the NYT from this inquiry have debt of $650 million. Other Trump business activities through 3 passive partnerships owe an additional $2 billion. It is a lot easier for Hillary Clinton to put the speech fees behind her as they have little to do with what she is as a Methodist and a proponent of improving women's lives, than it is for Donald Trump- for whom his business is everything that he is including his art of the deal- to reject who he is. ...

LyrArc Article Gist
Gerald Seib, executive editor of of the WSJ, attributes the divisions in America both on the left and the right to a deep skepticism among people about the intentions of the U.S. political and financial establishment to conduct the country's affairs in a way that benefits all people. Both the traditional Democratic and Republican establishments, the Bush-Reagan, Clinton-Obama politicians and the financial community were seen as self-serving and looking after their own interests. The right of center supply side economics and the the tolerance for immigration levels of 30% rise in the last decade were discredited. A much larger recovery program was seen as needed from the deeply bruising effects of the financial crisis of 2008, started by the reckless financial establishment behaviours, than either the Reagan supply siders or the Obama people had understood or planned. This opened the way for Mr. Trump to take up the cause of ordinary Americans with a message of ambitious infrastructure development, confronting China's use of trade adversely affecting American workers, and slowing down immigration. And within the Democratic party the emergence of Elizabeth Warren and Bernie Sanders with programs for a wealth tax that would finance Medicare for All and college education supported by the federal government. Both the traditional Republicans under Bush and Democrats under Clinton Obama were seen not upto the task, after the 2008 financial and economic crisis created deeper scars than were imagined possible. The lack of effective policies under Bush or Obama simply aggravating the situation further. The culture wars have split Americans down the middle with a breakdown of the traditional American family and social structures creating deep anxieties in America. Obama's comments unsettled people in the heartland when he said that economic decline in the Rust Belt had made people there to "cling to guns or religion or antipathy toward people who aren't like them."   The trillions of dollars spent in wars in Asia and the Middle East were seen by Mr. Trump as an enormous waste when much needed investment was deprived of attention at home. Mr. Trump hammered this point home till today it is well accepted across America.  Even as political divisions persist they are now on how to tackle the redevelopment and growth of the U.S. The new focus of agreement has shifted with agreement across the country that infrastructure development in the U.S. and defending workers rights to jobs and opportunities is the top priority. That trade relations need to be reshaped keeping this priority ever present in negotiations. As a result all parties could agree on infrastructure and the recently concluded agreement for trade with Mexico and Canada and phase 1 of negotiated agreement with China. In overseas affairs the U.S. under Trump seeks cost sharing with a 2% of GDP defense spending by other nations so that money can be diverted to use at home. In this sense the debate has already shifted in the U.S. and the UK to how to address the problems of uneven development and growth across the two countries and better allocation of scarce resources to needs at home. Which is for the U.S. a good thing in the middle of all the perception of divisions.      ...

LyrArc Article Gist
Greg Ip says in WSJ that Biden's $2 trillion Families and Workers Plan (Build Back Better) should be moved forward or restrained, not on the basis of its trivial or secondary effect on inflation, but on its main goal of expanding a torn social safety net.That one vote in the Senate in 50-50 US Senate, that of Mr. Manchin is holding it back, should be set out in the clearest terms- that Mr. Manchin is not comfortable with repairing a torn social safety net to the level Mr. Biden is.  Greg Ip points out that Moody's and other experts see the same effects on inflation with or without the plan which is over ten years. He says besides the supply chain bottlenecks that would ease at some point, inflation would be kept close to 2% target by Powell at the US central bank, the Fed. It is all about how the US plans renewal of its economy from this pandemic and from the crises past, knowing that it has learned the lessons along the way, so that the economy works for all the people and builds America's strength in the world- pointing to a brighter future for all and a strong America. ...

LyrArc Article Gist
Residents of Detroit- almost all residents- in the three county metropolitan area see their economy in ruins, according to aWashington Post-Kaiser Foundation-Harvard University poll of Detroiters. At the same time 63% of Detroiters feel optimistic that things will change for the better. Detroit's dependence on the auto industry has led to a marked precipitous decline with the highest unemployment in the country. Michigan has 14.7% unemployment and Detroit has 16.7%, the highest in the country. Seven of ten residents see a revitalization of the auto industry needed to rejuvenate Detroit, and three fourths of residents polled say this is likely to happen, even though the state government is looking to diversify the economy. A senior economist at the Upjohn Institute, an independent research group in Kalamazoo, Michigan, says creating a new diversified economy which includes biotech, medical, green energy in addition to electric cars and other fields in auto, will take years. One, two or even five years won't be enough to replace all the jobs lost in the auto industry, it may take adecade or longer. Some workers will be retrained in new areas, others will move and some will take lower wages at new jobs. Because of the area divided along racial lines with the black city neighborhoods and the white suburbs, the pain while distributed throughout the region, is seeing a marked deterioration in the life in the city. Governor Granholm says the state governmet has spent $400 million to help enroll 100,000 people in retraiing programs to become nurses, medical technicians, truck drivers and welders. Granholm says her office has helped create 163,000 jobs in 2009....

LyrArc Article Gist
Corporate concentration with larger companies, each more dominant in its industry, and fewer companies controlling half of U.S. corporate profits, are trends economists say that hurt wages, create income inequality, shrink the middle class and lead to less consumer welfare. About 30 companies control half of U.S. corporate profits in 2018 compared to 109 in 1975, according to economists at the University of Arizona. Fewer companies in each industry mean less competition for workers, and less leverage for workers in setting wages. Apple Computer just reached the trillion dollar size and Amazon is close to doing this with its dominance in online shopping. Amazon is known for lower wages in its industry. Apple has some of the highest profit margins in  industry, and trends show the margins have risen between cost of making a product and price in an unprecedented way. The result is higher corporate profits and labor commanding a declining share of the nation's wealth. ...

LyrArc Article Gist
Tim Walz uses a sports metaphor about being one behind, fighting for every inch in this football game to score, as he brings to life this final effort of 75 days to win the election for president Kamala Harris, for president Biden, and for workers and families across the 51 States. Read the full speech at the Convention as Tim Walz accepts the Democratic nomination for Vice President. "Their Project 2025 will make things much, much harder for people who are just trying to live their lives. They spend a lot of time pretending they know nothing about this. But look, I coached high school football long enough to know, and trust me on this: When somebody takes the time to draw up a playbook, they’re going to use it. And we know, if these guys get back in the White House, they’ll start jacking up the costs on the middle class. They’ll repeal the Affordable Care Act. They’ll gut Social Security and Medicare. And they will ban abortion across this country, with or without Congress. Here’s the thing. It’s an agenda nobody asked for. It’s an agenda that serves nobody, except the richest and the most extreme amongst us. And it’s an agenda that does nothing for our neighbors in need. Is it weird? Absolutely. Absolutely. But it’s also wrong, and it’s dangerous. It’s not just me saying so, it’s Trump’s own people. They were with him for four years. They’re warning us that the next four years will be much, much worse." ...

LyrArc Article Gist
We show here Mette Frederiksen's opening address at the Danish parliament in 2023 because of her down to earth way of looking at things, free of abstract theory. Danish people are always learning English and learning from the UK and America. America and the UK, and the rest of Europe can learn from Mette Frederiksen and Denmark. She brought a common sense approach to immigration, saying that it was workers and families that were suffering from the distractions caused by immigration issues replacing bread and butter issues such as cost of living and future issues such as education and health care, and wages, that help determine the quality of life.  When for instance has the leader of a European nation or the US or Canada started with and devoted the better part of her opening address to parliament to teachers? And the burden placed by Aula app for parents to express concerns about their children to teachers so that teachers could not devote that time to preparing for class? And the burden placed by 1081 goals given by administrators to teachers on norms culture values -full of abstract theory no one knows what they mean- taking the time of teachers that they could devote to preparing for class? And about wind turbines on the coastline of Denmark- held up by concern for bats. Should the bats simply avoid the turbines and did anyone find out how many bats there were asks Mette Frederiksen. And  enlarging the harbor for a wind turbine factory location that built turbines too big to transport on land. Should this take 8 years she asks? ...

LyrArc Article Gist
CNN reporter Cassie Spodak provides this exceptional report into the minds of New Hampshire Democratic voters who gave Bernie Sanders a 22 percent lead in the New Hampshire Democratic primary over Hillary Clinton. In October 2016 Hillary Clinton has the support of Bernie Sanders against Donald Trump in the U.S. presidential election. She described it as "100 percent support" in television debate. Sanders has appeared with Clinton twice, and campaigned 4 times in New Hampshire, and continually across the country. Younger New Hampshire voters still long for Sanders as their favored candidate. Older voters and some who have been motivated by Sanders to run for local office see the shaping of the Democratic Party platform as a victory for Sanders. Key planks of Sanders, taxes on the wealthy and higher incomes to pay for student tuition, infrastructure, and helping working class families, are now key parts of the Democratic platform. These voters see this as a pragmatic step and are enthusiastic in their support for Hillary Clinton. Overall Clinton now has 87 percent of Democratic voter support in New Hampshire according to a WMUR/UNH poll in mid October 2016, and she is doing well with millenials and independents nationally, a critical bloc of voters for Clinton to show nationwide support. One member of the steering committee for Sanders in New Hampshire named Dudley Dudley, reflects the opinion that has shifted the party to emerge united during and even more so in the final months of the presidential campaign of 2016- she tells the CNN reporter Spodak that she supports Hillary because "of the way she has grown, and stretched," and the way Clinton and Sanders are now campaigning together and working together. Both Clinton and Sanders deserve credit for their extraordinary ability to grow during their campaigns and during the party's way to shape the way forward. ...

LyrArc Article Gist
What is the right retirement age for health is an important question. Dana Smith points out that the number 65 that started with the system of social security started in US  by Bismarck in Germany in 1889 and Social Security in the US in 1935 by president Franklin Roosevelt has no basis on the grounds of health of the population and longevity. Since that time people live much longer to about 74 years and for 45% of the people in the US who are in the knowledge based work the ability to work continues past 65 or 67 years.  For the remaining people who are in professions involving physical work such as construction or in the restaurant industry the situation is quite different, requiring a category based retirement age that takes this into account. For these people health outcomes would deteriorate if they continued to work in stressful work for longer. Another factor to be considered is to ask what this means as a national goal. Would a nation aspire to give its citizens an opportunity to travel, broaden their minds and engage in other activities they would like to do which they could not do while working full time. In this situation these years after retirement could give people a chance to live happier lives. It is not to be taken lightly as the current protests in France show. Age discrimination in France also plays a part as there may be fewer years of work opportunity if employers stay away from people over 50 years or discriminate against women. With childcare and care for elderly, part time jobs, women work longer for smaller pensions than men, leading to a sense of unfairness. French protests show that the outcomes need to be weighed carefully from a health and national goal standpoint and the retirement age set accordingly with flexibility for harder work.  Following the pandemic years and the cost of living crisis the protests in France show the need to develop a national consensus on the issue of retirement age, and rules plus culture change in industry that ban age discrimination for workers. Special provisions for women and people in construction so that the system is seen as fair to all parts of the workforce. ...

LyrArc Article Gist
This France24 report looks at the question of whether the policies of four term German chancellor Angela Merkel emboldened Russia under president Putin to launch the invasion of Ukraine. FR24's interview with the vice president of the German Marshall Fund and head of its Berlin office, Thomas Kleine-Brockhoff, shows there are many reasons why Merkel's policies were serious errors that ignored caution from past experience and from other western leaders in the US and Eastern Europe. Kleine-Brockhoff says that "Europe did not go wrong, Germany and France did. France and Germany tend to speak for the rest of Europe. Bit these mis-assessments were made in Paris and Berlin, not elsewhere. Eastern Europe didn't go wrong. Northern Europe did'nt go wrong."  Kleine-Brockhoff says the war in Ukraine calls for an urgent re-assessment of the German and French policy towards Russia. "Not only is the post Cold-War order crumbling before our eyes, so are the strategies employed by Germany and France." Under particular scrutiny comes Merkel's policy, and policy supported by Steinmeier of the SPD, that took German dependence on Russian energy supplies from 36% during the annexation of Crimea to 55% in March 2022 with the invasion of Ukraine. Germany's conservative Die Welt has this to say- "What Germany and Europe have experienced over the last days is nothing short of the reversal of the Merkel policies of guaranteeing peace and freedom through treaties with despots," describing Merkel's policies as "an error." About France Kleine-Brockhoff says there were lofty ambitions under Sarkozy and Macron of European strategic autonomy, which did not correspond to reality, to fantasies of European armies when there was nothing but NATO. It is not dialogue with Putin and Russia that was a problem, says Laure Delcour, international relations expert at the Sorbonne Nouvelle in Paris. Some form of dialogue is necessary she says, but the dialogue has to have clear objectives. We must not confuse cause with consequence, she says. We know  that NATO enlargement had a big impact on Russia's perceptions, but the real problem is how Russia responded to enlargement. "In this case the problem is the consequence."  ...

LyrArc Article Gist
Rural America has the same percentage of Americans that are prone to fringe views as urban America about 27%, the rest are simply trying to find ways to meet severe health, educational, lack of investment in rural areas by government, and cost of living challenges, that other communities have, says Nicholas Jacobs, professor of Colby College. He knows rural America as he shows in his new book -The Politics of Place and the Disuniting of America. Jacobs lives in rural Maine and has both studied reams of data and himself lives in a rural area. Here is the truth he says- Rural America is suffering from chronic health conditions, health worker and hospital shortages, limited employment opportunities and infrastructure deficits, rural schools suffering from funding gaps and teacher shortages. Similar to urban, yes, yet even worse, and need understanding not recrimination. What JFK rightly called, a policy "to lift all boats," from his speech in Arkansas, saying rural Arkansas was as much the Nation, as Massachusetts. He warns Americans to be careful what they listen to about rural America in talk shows or in books written to get audiences from one segment of the population or the other, with gross mischaracterizations of Rural America and its so called rage, with condescending views about people simply struggling to make sense of all the change some of it for the worse going on around them- in this period of Beaverbrook television or internet media. Beaverbook television is after a press baron in the last century in Britain who saw it fit to take advantage of crises of any sort to sell tons of newspapers for a profit, along the way promoting any bias that he had regardless of whether it was proven right or wrong. At one point UK press barons including Beaverbrook, controlled 13 million circulation the most in the world in 1947. Today instead of newsprint it is in book, television, social media or the internet video formats. This can concoct narratives of people that do not exist by using polls that are inadequate, and superficial understanding, with no effort to look for credible answers to difficult questions, and no effort to look for solutions that "lifts all boats," in America and in the World. ...

LyrArc Article Gist
A discussion on the drying up of capital available to the financial institutions for deleveraging, and the way deveraging puts even more pressure on home prices and lower consumer spending also puts pressure on housing prices by delaying a housing recovery. And the pros and cons of letting Lehman Brothers fail. Sovereign wealth funds are losing money on their investments as stock prices of these firms fall, and their investments are worth much less, resulting in criticism at home. Korean economy has problems of its own so regulators in Korea were not eager to support state owned Korea Development Bank taking a large stake in Lehman. When Mr Fuld, Lehman's CEO stood out for a better deal they may have flagged their concerns to KDB negotiators. And middle eastern sovereign funds are looking for better opportunities in other parts of the world like India, Asia or closer to home. Private Equity funds which have about $450 billion are not able to increase stakes above 25% because of regulations that make them bank holding companies subject to regulators when they go above that limit. Private equity funds like Blackstone and Carlyle are asking for these restrictions to be lifted to be able to invest more in capital starved financial institutions. Meanwhile with share prices plummeting with Lehman losing 90% of its share price it will be harder to raise capital. Merrill lost 17% of its share price in one day so it affects other institutions. Regarding the pros and cons of letting a firm fail the Fed's and Treasury's fear is that markets today are bound together by complex financial instrments like credit default swaps and certain money market instruments that firms and regulators have limited experience handling in a crisis and the concern is that letting a firm fail might have ripple effects. Regulators are addressing the clearing and settling of these instruments but still need time to finish. And there is no formal procedure for disposing off the assets of an investment bank if it fails. And behind all this is the realization as Lawrence Meyer, a former Fed governor, who is vice Chairman of Macroeconomic Advisors LLC puts it : "There's no trend of improvement. It's not improving even slowly." ...

LyrArc Article Gist
Comments by Eric Schmidt CEO of Google in an interview with the NYT's Helft. Important points emerging from the interview. Google he says does not know how long this crisis will last. Response not to waste money means less hiring and more careful expense reviews, and more focus. Managers are very very sensitive to important aspects of its culture, so such perks will continue which make it fun to work at the company for employees. And he says careful investment inthe future. "If you tighten too much, you eliminate future innovation, and then you set yourself up for a really bad outcome five or ten years" down the road. And here is the most important point he makes in advising the Obama administration. Do not take up the economy first, and let energy come in afterwards, deal with all the major problems at once, especially energy, which are part of the problem and the opportunity for the economy. For instance as the auto industry shrinks these job losses can be filled with jobs making parts for renewable energy like wind turbines and blades, like solar energy generation parts. This is actually happening already, government could speed things up by mandates for renewable energy and by help to companies through incentives. See the link to this in the NYT about companies in places like Newton, Iowa where lost jobs at Maytag are being replaced by renewable energy jobs. And several million jobs can be generated in energy to make up losses in auto jobs in the midwest. These parts of the Obama plan may have come up through conversations with Schmidt and other advocates of this, and by seeing what is already happening as reported by the NYT in the link. It makes Obama look like a farsighted genius, but its just sharp observation and careful listening. Pickens is already advertising this on television for his wind farms in Texas. It is not only Google's thinking, as Schmidt says, but good common sense and some ballpark estimates that would tell one that it would save sending 1 trillion dollars to Middle East and other nations that is needed for investment at home in the U.S.. Schmidt's calculations are that this amount could be saved in 22 years through renewable energy, plug-in hybrids and other innovative technologies. ...

LyrArc Article Gist
Considering the fines and sanctions by the Financial Industry Regulatory Authority, during the time Mary Schapiro headed the organization from 2007 -2008, it did not take a serious watchdog role over the brokerage business that it was expected to supervise. NASD which she formerly headed, and FINRA, did several examinations of the brokerage business of Mr Madoff who ran a$50 billion Ponzi scheme, but failed to find anything wrong. Her agency in 2007 concluded that Madoff's firm had only violated some technical rules. Also fines and sanctions assessed by FINRA declined during the time she headed it. Fines levied by FINRA declined from $148 million in 2005, the year of her predecessor, to $40 million in 2008. Ms. Schapiro headed NASD regulatory arm in 1996, NASD itself in 2006, and FINRA after its creation in 2007. FINRA is a private agency set up by Wall Street to regulate itself. As the prevailing opinion at the time, with the SEC severely understaffed, was that Wall Street could regulate itself, agencies like FINRA had a bigger responsibility than was realized by Ms Schapiro and others. One securities lawyer who represented firms examined by FINRA, says FINRA should at least have asked more questions about the Madoff operation. In a November 2006 speech to the Securites Industry and Financial Markets Association, Mary Schapiro says, "we remain utterly committed to our regulatory mission but we should be also committed to doing no unnecessary harm or restriction to innovation in the industry and markets". Some of the stuff that went on in the name of innovation went against some basics and commonsense, and the failure to follow tested old good financial practices to separate sound innovation from unsound innovation, was a failure of that period. Schapiro's statement seemed to be a contradiction of a severe nature when examined closely, because how could she remain committed 100% to the regulatory mission if she made strong exceptions for innovations whose true logic and effectiveness only time could tell. The element of caution that should be a key part of the regulator's temperament and mental build was entirely missing. See the link to financial regulators in India, and of how this task was handled with that element of caution and skepticism of prevailing opinion. Other failure of FINRA is that it lagged behind state regulators in catching upto the mess resulting in afreeze up of auction rate securites markets. In June and July 2008, Massachusetts and New York securities regulators filed fraud charges against big firms in that matter. Another failure was the failure to look into the mortgage securites that were held in brokerage accounts and see that the valuations of these securites are sound. Finra only filed small cases against Lehman Brothers, with a fine of only $125,000 for failing to keep accurate books and records. As late as May 7, 2008 in speaking at the Financial Services Institute meeting, Schapiro was asked about what FINRA was doing to regulate complex packaged products like mortgage securites. And even though credit rating agencies had by this time been exposed as having failed, Ms Schapiro would only say, according to a financial advisor who asked the question, that "we have credit rating agencies that rate them." A pretty hands off view for a regulator when the cracks in the system were already exposed in mid 2008. Another facet of this is the high levels of compensation especially for a regulator. For her job at FINRA she received pay of $3.1 million a year including $2.5 million in compensation and $615,000 in benefits and deferred pay. In 2007 she also earned $449,000 in cash and stock grants as director of Duke Energy and Kraft Foods. All of which means that it is straining credulity for Obama to suggest that Mary Schapiro is the best person the Democrats could find for this critical job, in which the record has been severely impaired....

LyrArc Article Gist
Feldstein points out that Obama economic plans missed the real target, which was on the home front where it came down to addressing the problems of 15 million homeowners under water- with mortgages exceeding the value of their homes- and lack of solutions to deal with the $1.5 trillion in troubled commercial real estate loans. Administration plans really did not help more than a couple of hundred thousand homeowners to reduce their monthly mortgage payments. Getting banks to start lending again by selling impaired loans to nonbank investors, also failed to work, as banks were reluctant to do so and reduce their accounting capital. Health care legislation simply distracted attention from the real problems. See the links to Feldstein's repeated insistence that the new administration (and even during the late stages of the Bush administration) focus on these problems. Health care legislation that passed simply would not control the increase in health care spending, that the public correctly perceived as the real problem if the other health care issues were to be resolved. Instead Obama's health care legislation offered to increase the deficit to unsustainable levels, with no solutions to more pressing home front problems in sight. Feldstein, is one of the most eminent US economists....

LyrArc Article Gist
The German people offer a warm welcome to refugees from Syria and North Africa suffering enormous hardships to make their way across seas and overland through Eastern Europe to Germany's borders. Germany of its own accord waived the right to deport Syrians back to the first European nation entered, and supported Syrian refugees right to stay with an 87% acceptance rate for Syrians seeking asylum. In August 2015 alone 100,000 refugees were accepted. Chancellor Merkel and Germany lead the European Union by example, and what an example it has been. Faiola of the Washington Post tells the story of Abed Almoen Alalie, a civil servant from Syria who fled with his family, and after being roughly treated in Budapest, Hungary, cannot believe his eyes seeing the welcoming crowds as he gets off the train in Munich. Never has a nation in such a short time made its way into the hearts of so many as Germany has done in 2015. The crisis found Germany, or Germany found the crisis, either way Germany embraced it and the people who came with it in a way hard to imagine. With chancellor Merkel leading the way using strong words and courage of her Lutheran convictions- "The fundamental right to asylum does not have a limitation. As a strong, economically healthy country, we have the strength to do what is necessary." Many Germans have responded in a degree and manner that is hard to imagine . They say this was Germany's effort at redemption after the war. In a poll by ARD released September 3, 2015, 88% of Germans said they would donate money or clothes to refugees or have done so, and 67% say they will volunteer to help. ...

LyrArc Article Gist
The corporate share buybacks announced by U.S. companies in the last 3 months now exceed $200 billion, more than double than in 2017, according to a WSJ analysis. This includes Cisco, Wells Fargo, AbbVie, Amgen, Alphabet (Google). The surge in corporate buybacks started in December after the tax cut of the Trump administration cut U.S. taxes by $1.5 trillion over a decade, cutting the corporate tax rate for large companies from 35% to 21%. The tax cut also included a one time tax for repatriation of $2 trillion held by U.S. companies overseas. This WSJ analysis says there are questions whether the tax cut is working, whether it will encourage new investment, lead to companies increasing wages, or whether this will largely result in corporations returning money to investors with larger dividends and corporate buybacks. Morgan Stanley's analysis of earnings transcripts of companies in the S&P 500 show 44% of the companies say they will use some portion of the tax gains to make capital investments and increase wages, with 28% going in the opposite direction and using them to return money to shareholders. Experts caution that corporate buybacks do not always lead to the company's stock outperforming the stock market. The future of companies depends more on the capital investments and in human capital. There is a sense that workers wages have stagnated since the mortgage financial crisis in 2008, with the economic crisis, globalization and outsourcing, reduced alternatives for workers, geographic pressures in relocation, all pushing wages down.  This is being closely watched with articles on stagnation in wage growth this week in the NYT and WSJ, and earlier in the Economist magazine. Reports on the Trump administration tax cuts passed by a Republican Congress suggested a large tilt towards benefitting the highest income households. Problem with higher stock prices reaching the broader middle class are recognized in that one third of stocks are owned by overseas investors, and 84% of the remaining stocks are owned by the wealthiest 10%. Republicans have turned to bonuses typically of $1000 per person given by companies yet this amounts now to about a few billion dollars over an estimated 4 million Americans, says this WSJ analysis. This is not enough to justify a huge tax cut and raise the deficit by over a trillion over 10 years on the assumption that it would lead to higher wages or capital investment when about $200 billion goes to boosting stock prices. This comes at a time when the American middle class is not broadly invested in the stock market after the exit following the battering stock prices took during the 2008 financial crisis. ...