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Lisbon tram from an earlier era when it was electrified in 1915, falls apart in 2025. Reports say a cable broke and the brakes failed. It is a funicular tram that goes down 850 feet a steep hill and connects downtown to the Bairro Alto neighborhood. Many comments refer to overcrowding of this tram and the trams being used as part of the city's public transit system. Much of the older infrastructure in Europe needs updating.

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Collapsing sales for all automakers with GM results 45% decline in October 2008 over October 2007, and Toyota saw decline of 23%, Honda 28%, Ford 30%. One GM marketing executive said its like the lights were turned off in October. Dire consequences for the US and global economy. Toyota once seemingly immune to all this is affected not just here but back in Toyota City in Japan as the area around Nagoya is going into shrinking mode, and the Japanese economy will likely contract by 1% in 2009.

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Renewed warnings about the bubble in housing prices in China. Earlier warnings came from Krugman, Lardy, John Taylor. This one comes from Nomura economists Zhiwei Zhang and Wendy Chen. Could the government's action to curb rising housing prices not be adequate leading to a financial crisis as early as 2014, is the question posed by Zhang and Chen. They cite the rise of housing prices by 84% from 2001 to 2006, before the financial crisis of 2008 in the U.S., using the Case-Shiller housing price index. One problem- the government statistics may have underestimated the extent of the bubble. China's official index shows housing prices rising 113% in major cities from 2004 to 2012. Zhang and Chen say this is much smaller than the actual rise because it includes older, lower quality housing property. They cite an academic paper that adjusts for this and finds prices jumping by 250% in the period 2004 to 2009. Another problem is that China's housing prices growth slows after government action but then resumes the growth, leaving the risk exposure at the high level as before. Because the local governments are tied up in the housing bubble the problem would hit the banking system. About 14.1% of the outstanding bank loans are to local government financing vehicles, and 6.2% to property developers, according to Nomura economists. The declining potential growth rate in China means there is less room for bad loans to be absorbed by hyper growth levels than in the past. Errors in policy can magnify the risk including loosening monetary policy and exacerbating the bubble at the wrong time. In the absence of errors the risks still remain requiring the sale of public assets to bail out local governments and banks. The argument made by Krugman and other economists has been that China is not immune to the risks of a housing bubble going bad, in any way less than Sweden, the U.S., Spain and other countries, requiring bailouts of banks....

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Pultizer prize winning journalist for reporting on the Middle East, Karen Elliott House, reports on Saudi Arabia and Middle East following the Arab Spring and the changes in the Middle East. A vast demographic of young people is stuck in the region facing an impasse of poor leaders, internal divisions, and lack of jobs or economic opportunity, following a failed Arab Spring. Their aspirations for a better life on hold.

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U.S., UK and Swiss regulators charged UBS AG with conspiracy to rig the London Interbank Offered Rate or LIBOR. LIBOR is the interest rate at which large banks lend to each other and is determined from daily reports made by 16 banks to the British Banking Association, giving the rate at which the bank borrows from its peer banks. This rate helps determine the rate for trillions of dollars in securities, home and auto loans, swaps and derivatives. A tiny movement in LIBOR can affect trading profits, and it influences perceptions of a bank's health particularly in a crisis such as the 2008 financial crisis. Every day a 16 bank panel reports this rate to British financial authorites. UBS took full responsibilty and pleaded guilty to criminal fraud. UBS settled the charges for $1.5 billion. Barclays PLC, a UK bank, settled charges for LIBOR manipulation in mid 2012 for $450 million, ending in the departure of the bank chairman and CEO. Britain's regulator the Financial Services Authority, FSA, says in its report that rigging the rate was "routine and widespread" at UBS in order to increase trading profits, done with the knowledge of senior managers, and included cash awards or trading opportunities to employees at other banks to participate in manipulating the LIBOR rate. During one period of 18 months UBS paid 15000 British pounds to a firm of outside brokers every 3 months. FSA says LIBOR and versions of it are "at risk of being improperly influenced " between Jan. 2005-2010. What this means is other large settlements with other banks can be expected. Fannie Mae and Freddie Mac may have lost $3 billon from this manipulation of LIBOR, according to an internal report from the inspector general of the Federal housing Finance Agency, which also says Fannie and Freddie should sue the banks responsible. The whole issue of LIBOR came to light after an article was published in the WSJ, April 16, 2012, and a WSJ study on LIBOR using credit default insurance to track LIBOR rates, on May 29, 2012....

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Rachel Reeves plan to cut disability benefits was very unpopular with Labor voters. You.Gov poll showing Reform UK Nigel Farage party winning more seats than Labor was the last straw. As a public defender Keir Starmer was a lawyer for the Crown, and lacked the confidence to try to understand macroeconomics delegating it to Rachel Reeves. Starmer made the kind of decision that Scholz made that led to disaster for Scholz in Germany. He promised the voters to invest in the economy yet gave the finance minister post to Christian Lindner of the Free Democrats who was openly blocking every move to invest in Germany. Starmer was making the same mistake in UK having Rachel Reeves block every effort for commonsense and honest decisionmaking. DJT in the US is not the old conservative Republican he is commonsense and straightforward. Starmer could not simply cut disability and other benefits after 15 years of Consevatives austerity budget. DJT's cuts come after liberal some could say overspending by 4 years of Biden, so that Labor had to think carefully.  Nigel Farage of UK was simply going to use Reeves cuts to appeal to Labor voters, and to move to show he would support working class voters in different ways, which is why You-gov showed him beating Labor last week. Reeves would prove a disaster waiting to happen for Labor that it did not need particularly as Farage does not have the grasp of the economy that DJT with Bessent at Treasury and Powell at Fed has. ...

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This is a summary of the syrian 10,000 article.

this seems to work pretty well.

 

 

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A 10 month long study by the National Highway Traffic Safety Administration and the National Aeronautics and Space Administration says the electronics was not to blame for the unintended acceleration. It said there were three causes for this- sticky accelerator pedals and floor mats that trapped the throttle in an open position, and drivers hitting the gas pedal when they thought they were hitting the brake. The NHTSA describes the last cause as "pedal misapplication." By clearing the car's electronics this removes an apprehension about this critical area in modern cars, which increasingly use information technology and electronics in every area. It also reduces the potential for large lawsuits. This also improves the prospects for Toyota to recover lost market share with its newly redesigned Camry and RAV4 vehicles.

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The opioid crisis, covid pandemic and failures in healthcare caused the life expectancy in the US to hit new lows in 2021, the lowest since 1996. Life expectancy dropped from 77 years to 76 years, with the death rate rising 5% in 2021.Before the covid pandemic the life expectancy was at about 79 years in 2019. Black people had a life expectancy gap of 6 years in 2021 compared to white people, 70 years compared to 76 years.

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James Galbraith points out how Trump appeals to aging Reagan voters on Social Security, and older white Americans. He says much of the talk about the wall is bluster to appeal to this group of voters. On the Democratic side he points out the failure of Hillary Clinton to appeal to younger voters. Galbraith says the young are voting in large numbers for Sanders, and this is likely to shape U.S. elections in 2020, even though Trump and Clinton are nominees of the Republicans and Democrats in 2016.

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VW's sales goals for the US market to increase sales from 330,000 by taking sales away from Asian brands.

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The Musk View - the Open AI lawsuit case against Sam Altman was about looting a charity by the founders. Basically Musk is saying he gave OpenAI $38 million and became one of its founders because of its non-profit business, not because it was afor profit business which would have raised many questions about the risks of for profits doing the wrong things with AI just for profit. Then Sam Altman breaks the promise of staying non-profit for his personal for profit gain, turns it into a for profit without answering any of the questions raised about the dangers of AI without regulatory safeguards into something worse than social media apps that spread fake news endangering democracies, and endangering education of a young generation, mental health risks for girls and children. Competition with China- in China much of it is controlled by the state and the state imposed limits on social media, to protect China's children and young people's educational needs. Tim Higgins says Musk lost but proved his point anyway on X and in the media so much so that speakers at commencements in American universities are being regularly booed  when they bring up AI.  Public perceptions have still not been shaped by the real issue - the massive misallocation of funds, the dubious propositions, the lack of normal financial scrutiny for return on investment that is supposed to happen in well run financial markets, ( is it or is it not a market system in the US as oligopolies are not free market systems), the failure to prove that the investments are viable by a long shot. Banks and capital markets are distorted in lending trillions of dollars to AI companies that cannot justify the investments on financial grounds of return in investment. Returns to the Nation and the American people, as well as financial returns are far better in rebuilding the  broken down infrastructure that America needs rebuilt, in investing in the industries that create jobs and strengthen competing with China and EU. How can the huge misallocation to AI of trillions of dollars, putting a burden on utilities to supply electricity for AI, and the distortion in capital markets to direct that money to infrastructure building and industrial renewal, be corrected? WSJ reports that there is a huge skeptical public on this issue. It is shown in Pew Research and Pew has not asked the question about alternative investments that are being starved of capital in what America desperately needs for reindustrialization and job creation, income creation, competition with China and the EU.   ...

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The decision to replace Gen. McKiernan with Gen. McChrystal and to have Lt. Gen David Rodriguez as his deputy, was made by Defense Secretary Gates and Jt Chiefs chairman Mullen, after thinking about this during the transition to the new Obama administration. The failing war effort in Afghanistan with the Karzai government controlling only pockets of Afghanistan and Kabul and leaving the countryside to the Taliban has alot to do with this. Gates feeling is "we can and must do better." That it took so long, with the Taliban only 50 miles from Islamabad, Pakistan, and the question of Paksitan's nuclear weapons falling into thier hands vexing the adminstration, shows that things slowed down with the transition and the economic crisis. The decision was not adifficult one considering that McKiernan had little to show for his efforts, and the rapidly deteriorating situation by all accounts. McKiernan was a senior officer who spent his entire military career commanding conventional forces, serving in the Balkans and the Iraq war in 2003, and has the wrong midset and background for counterinsurgency warfare. McChrystal has experiences suited to counterinsurgency warfare, having commanded commando teams that took out leading insurgents. He is also director of the Joint chiefs of staff, so known to Mullen for his abilities. Rodriguez commanded the 82nd Airborne Division in eastern Afghanistan, is seen as aleading expert in counterinsurgency warfare. He is also Gates's senior military advisor so known to Gates for his abilities. The new strategy is to go with counterinsurgency warfare to turn this thing around. This puts 2 commanders with this kind of experience in Kabul, and close communication with Gates and Mullen because they worked together before. With additional troops, and shift in resource acquisition at the Pentagon that Gates is trying to secure for this kind of warfare, this creates the kind of combination that could help the US in Afghanistan and Pakistan, and achieve more modest goals. See the links to Gates's and Petraeus's more modest goals....