Ladies Who Lunch - Meg Whitman, Carly Fiorina, and Linda McMahon

We have all heard about "Ladies who lunch."  Wikipedia describes these benevolent women as:

Ladies who lunch is a phrase to describe slim, well-off, old-money, well-dressed women who meet for lunch socially, normally during the working week. Typically, the women involved are married and non-working. Normally the lunch is in a restaurant, perhaps in a department store during shopping. Sometimes there is the pretext of raising money for charity.

They sound so sheik - no?

Well I only wish someone, anyone, had sent the memo to Meg Whitman, Carly Fiorina, and Linda McMahon that they were invited to lunch.  Why?

Between Meg Whitman, Carly Fiorina, and Linda McMahon, they gave $217 million to the “cause” of getting themselves elected as national political leaders.  $217,000,000.00 of their own money.  Now I believe in public service ... but spending $217,000,000.00 to not get elected just seems ... well, gross. 

If the three lovely ladies had instead gotten together for lunch and spent ... say $2,000 on lunch (Christal is very expensive and they wouldn't want to settle for Cold Duck) they could have gotten together for 100,000 lunches.  Yes that is lunch every day of the year for almost 300 years. 

What else could they have done with all of that money?

The Daily Beast reports that:

• Whitman’s spending could have bought full tuition for 23,553 California residents at the University of California-Berkeley, which would almost double current undergraduate enrollment. She could have made 95,764 connections for at-risk youth through Big Brothers Big Sisters of Greater Los Angeles.
• Fiorina spending could have doubled the total assets of Goodwill of Southern California. It could have fully funded Pajaro Valley Unified School District for a year, saving the schools’ sports programs. Or, if Fiorina wanted to befriend folks closer to her mansion in Northern California, she could have increased the budget eight-fold of Raphael House, which provides low-income family services and shelter in San Francisco.
• McMahon spending would have covered a full year’s worth of salary and benefits for 802 state employees facing furloughs because of the state’s budget shortfall. It could have provided heating assistance to Connecticut families in need for seven years. It could have paid for 15 million school lunches across the whole country, or paid for two years of enhanced security for our troops in Iraq.

Yes the $217,000,000.00 is their own money and everyone is entitled to spend it as they please.  But the bigger point is, should anyone spend so much money on having themselves elected to office?  I mean, if you are a worthwhile candidate shouldn't other people and groups support you as well?

It strikes me that we spend far too much money on elections.  Do we really need endless commercials disparaging the other candidate?

But it seems far more ludicrous, in a time when unemployment is so high, when millions struggle every day, that three people spend $217,000,000.00 to elect themselves to office.

I am glad to see more women participate in politics.  We need more women and minorities taking active roles.  But it should not cost $217,000,000.00 to do so!

Republicans Stand Toe To Toe With Neo-Nazis

We are all safe from the boogey-man.  Yes Neo-Nazis Rally For Arizona Immigration Law.

Members of the National Socialist Movement held a march in favor of Arizona's SB-1070 immigration law in Phoenix over the weekend.  This is the same law that the Tea Baggers and GOP support in order to "take back the Country."

As ThinkProgress points out, the alliance between white-supremacy groups and Arizona's anti-illegal immigration legislation appears to be more than a matter of personal associations.


According to an immigration report from change.org earlier this year, numerous groups linked to white nationalist causes have provided monetary support to Arizona's SB-1070, both in its early stages as well as to its legal defense fund.

In an earlier blog I wrote how Arizona Republicans Seek To Tear Down Statue of Liberty.
Wouldn't it be nice if Arizona and Texas COULD be their own country? Let's build a fence to keep these separatist locked inside to themselves. It can be one big white trash BBQ of white, God delusioned, gun carrying bigots---eating corn dogs.

Economics 101

As I have mentioned before, I am often asked by friends what direction I think the economy is headed and how that might affect them.  I do not offer investment advice and am not an investment advisor not an economist, but there are certain items which tend to indicate where we are headed.  The following from the New York Fed indicates we may be in fro a very rough road.
From the NY Fed:

The Empire State Manufacturing Survey indicates that conditions deteriorated in November for New York State manufacturers. For the first time since mid-2009, the general business conditions index fell below zero, declining 27 points to -11.1. The new orders index plummeted 37 points to -24.4, and the shipments index also fell below zero. The indexes for both prices paid and prices received declined, with the latter falling into negative territory. The index for number of employees remained above zero but was well below its October level, and the average workweek index dropped to -13.0.

The expectations was of a reading of positive 15.  Oops.

New Orders feel significantly and general business conditions fell by over 38 points.  Very negative signs.

And then there is the situation in Ireland and the EURO in general.

From CNBC: Ireland Does Not Rule Out EU Rescue Possibility

Ireland did not rule out the possibility of turning to the European Union for help, while an Irish newspaper reported that the Prime Minister may approach Brussels as early as Tuesday.

The Irish Independent said Finance Minister Brian Lenihan may ask his European counterparts in Brussels on Tuesday if it would be possible to funnel funds into Irish banks which he has already promised to pump up to 50 billion euros ($68.38 billion) into.

“There is no question about Irish sovereign debt – the question remains about the funding of the banks. The banks are having trouble getting money,” the newspaper quoted the source as saying.

“We have to find out – could you go to the fund and get money for the banking sector? Lenihan at ECOFIN presents an opportunity to discuss it. It would be the banks that would have to pay it back – not the state.”

The total amount of outstanding European Central Bank loans owed by Irish banks rose to 130 billion euros as of Oct 29 from 119 billion on September 24, data published on the Irish central bank’s website showed on Friday.

Retail sales did increase slightly, but it remains to be seen whether sales continue or it peters out.

Cruise From Hell - Welcome to Gilligan's Island

Huffington Post is reporting that a cruise ship stranded offshore with 4,500 passengers and crew must be towed slowly into a Mexican port and will not arrive until at least Wednesday night, the Coast Guard said Tuesday.


The Carnival Splendor was 200 miles south of San Diego when an engine room fire cut its power early Monday, according to a statement from Miami-based Carnival Cruise Lines.

The 3,299 passengers and 1,167 crew members were not hurt and the fire was put out, but the 952-foot ship had no air conditioning, hot water or telephone service. Auxiliary power allowed toilets and cold running water to be restored Monday night.

The Mexican Riviera-bound ship, which was drifting about 55 miles off the northern Baja California coast, was in contact with the U.S. Coast Guard, which deployed aircraft and ships along with the U.S. Navy and Mexican Navy.

Two Mexican seagoing tugboats contracted out of the port of Ensenada were expected to reach the cruise ship at midday Tuesday and arrive back at the port around 8 p.m. PST Wednesday, Coast Guard Petty Officer Kevin Metcalf said.

Metcalf said the tugs, which will be escorted by a Coast Guard cutter, must move slowly because the ship is so big.

Passengers will be taken by bus to California, said Joyce Oliva, a Carnival spokeswoman. She said she was unaware of any safety concerns from passengers or their families about traveling by bus in Mexico.

Ensenada is about 50 miles south of the nearest U.S. border crossing, in San Diego.

Once passengers are dropped off, the Splendor will be towed back to Long Beach, Calif., a journey that will take days. That's why the passengers will be dropped off in Mexico first.

"They didn't want to keep them aboard any longer than they had to," Metcalf said. "They're running only critical systems as of now."

The U.S. Navy aircraft carrier USS Ronald Reagan, conducting maneuvers 120 miles south of San Diego, was diverted to help the ship. About 70,000 pounds of supplies, including bread, utensils, cups, milk, canned food and other items, will be flown to the Reagan, where helicopters will transfer them to the stricken cruise ship, Cmdr. Greg Hicks said.

The Splendor's seven-day voyage, which began in Long Beach, was canceled and guests will get refunds, reimbursement for transportation costs and a free future cruise of equal value, the cruise line said.

After the fire, passengers were first asked to move from their cabins to the ship's upper deck, but eventually allowed to go back to their rooms. Bottled water and cold food were being provided.

"We know this has been an extremely trying situation for our guests and we sincerely thank them for their patience," Carnival President and CEO Gerry Cahill said in the statement. "Conditions on board the ship are very challenging and we sincerely apologize for the discomfort and inconvenience our guests are currently enduring."

Toni Sweet of San Pedro, Calif., was watching TV when she saw a news report about the stranded ship and realized her cousin Vicky Alvarez and her cousin's husband, Fernando, were on board.

She had dropped the Las Vegas couple off at the dock in Long Beach for the cruise, their first break after caring for their aging parents. She said Vicky was nervous about the trip, but Sweet reassured her everything would be fine. She has not heard from them since the fire.

"It's their first cruise and they were real anxious. I don't think they're going to take another," she said. "Here you want them to have a good time and then this happened."

BP's Oil Spill Still Killing the Gulf - Why Is This Not A Crime?

Scientists from the National Oceanic and Atmospheric Administration believe they have a "smoking gun" after finding dead coral 4,500 feet below the surface in the Gulf of Mexico, seven miles from the Deepwater Horizon rig site. What a coincidence.


Using a submersible robot, scientists found "a brownish substance" on much of the dead coral, and Dr. Charles Fisher told the Times, "We have never seen anything like this at any of the deep coral sites that we've been to. And we've been to quite a lot of them." BP can just add this to its growing tab and all will be forgotten.

[Image via Lophelia II 2010 Expedition, NOAA-OER/BOEMRE]

Biggest Fraud In History?

From zerohedge:

The monetary and financial system that we are enslaved under at the current moment in human history has recently transformed itself into one of the most immoral and destructive forces the world has ever seen. The reason many citizens in America cannot see the extent of it at this time is because the Federal Reserve in coordination with Washington D.C. and the money center banks are doing everything in their power to keep you blind and complacent while they rob you blind. Many of the people in these institutions are not cognizant of the theft they are engaging in as they are either useful idiots or so wrapped up in their ego and false belief that they are making the paycheck they are based on some useful skill rather than simply working at the institutions that are instrumental in carrying out the ponzi scheme. You see, at the highest levels the elite must understand that the U.S. is flat broke; however, an admission of this would mean loss of power and possibly criminal prosecution. As a result, they have zero, I mean ZERO interest in the outcome for the general public and will do “whatever it takes” to quote Ben Bernanke to cover up their economically fatal mistakes and keep the mirage alive. As I mentioned above, there are two main segments that are crucial to keeping the ponzi scheme going, Washington D.C. and the big money center banks. This is why the Federal Reserve is quite purposefully directing all of the new money they are creating out of thin air into these two already bloated and corrupt cancers on the American landscape. - Mike Krieger

The Economy - Good News - Bad News

In my ongoing feature about the state of the economy I thought today I would take a slight change.  Often I have reported on stories which may be perceived as positive or negative.  Problem is, no one seems to know for sure which direction we are headed.  So today I report some good news and some, shall we say, less than positive news from some of my favorite blogs.

Calculated Risk - Headlines from today:

• General Motors: October U.S. sales increase year-over-year
• ISM non-Manufacturing Index increases in October
• ADP: Private Employment increases by 43,000 in October

The one note that I add to the good news from Calculated Risk is the caveat they include regarding employment:

Since employment began rising in February, the monthly gain has averaged 34,000 with a range of -2,000 to +65,000 during the period. October’s figure is within this recent range and is consistent with the deceleration of economic growth that occurred in the spring. Employment gains of this magnitude are not sufficient to lower the unemployment rate.

Mish's Global Economic Analysis - "Economic Conditions Deteriorating":

Unfortunately, but not unexpectedly, things are getting worse since mid-summer.

Adding to the housing misery, over 2 million unemployed workers will lose benefits starting November 30 unless Congress acts to extend benefits in the lame-duck session. Don't count on it.

Furthermore, gallup surveys point to a flat Christmas season at best, so seasonal hiring may not be as good as expected. Finally, stimulus money is spent and there is no driver for jobs with inventory replenishment nearing the end.

These factors will put still more pressure on delinquent loans and foreclosures, which in turn will further pressure prices.

The housing bottom may be a lot further off than most think, in terms of time and price.

Without offering anyone advice (I am no investment advisor), it seems that housing is certainly headed for a double-dip.  As long as unemployment continues at around this level and other economic forces remain tight, housing will suffer.

It also seems like the economy is heading into some strong headwinds.  And - and this is a big AND - the election of Republicans on a low government, less spending agenda, while it may be great for the Country in the long term, will put strong downward pressure on any current economic recovery.  Millions are scheduled to loose their unemployment insurance; we can expect no further stimulus spending; and, expect the Federal Reserve to be under increased pressure.  Those all are ingredients for a slower economy.  You may ask what about extending the Bush Tax Cuts?  Those tax cuts will have a marginal benefit on the middle class (yes they will have a little more money to spend), but it will give the rich a bunch more disposable income to spend at Tiffany's and Gucci. 

On a more cynical note:

How is it possible that consumer spending is back and the economy is nearly fully recovered while unemployment hovers around 10%, foreclosures are mounting, poverty has reached a 15-year high and great parts of the public are struggling with debt? Because the richest 5% account for 37% of all consumer spending. Sorry, but most of the American public simply don't matter.

To the victor goes the spoils.  Buy Tiffany's stock?