only

I disagree with color experts like Susan Wright, clothing and textile specialist, who claims “To select becoming colors for your wardrobe, you must consider three very important factors — your skin, your eyes and your hair.” If that’s true, then how come everything that comes out of my washing machine is pink? I hate pink. It’s not only that I look like a rotund salmon in pink, but who wants that to be the only color in the closet? What if someone dies and I go to the funeral in pink? What am I, a lawn flamingo? Sure, sure, I know how important pink is. It’s the color of the elephants we see when tipsy, we can be tickled pink, we can feel in the pink. That isn’t what I’m talking about. I’m talking about being pinkified against my will. If it isn’t the fault of the United States Department of the Exterior that all my stuff turned pink, then whose fault is it? The question is, should I institute a lawsuit against the Fed, the World Trade Organization, and the People’s Republic of China on charges of Subliminal Invasion of laundry room? Let me publicly state that I have nothing against any country that has the Great Wall and the Yangtze River. China’s been around for over 2,000 years, not an paltry few hundred years like the U.S.A. Why, the Chinese invented wheelbarrows, whiskey, matches, kites, iron and steel, parachutes, playing cards, the suspension bridge, the fishing reel and the favorite game of all the smarties I know, chess. With an impressive record like that, wouldn’t you think they could make clothing that’s colorfast? But noooooo, that’s not the case, which is why practically everything I own is now pink. I’m embarrassed to tell people the new red shirt I bought turned everything else in the laundry pink, so I tell them it’s the latest trend called Shanghai Chic. In today’s politically correct world, am I now supposed to identify myself as a Pink-American? Unlike clothing made in the U.S.A. which has rules requiring colorfast and pre-shrunk fabrics, we appear to overlook those regulations when it comes to imported fabrics, though the Fed heatedly denies that. You know how they are. They don’t allow child labor here either, but there are probably Chinese children slaving away on clothing we have a yen for. That’s probably why the fairy tale The Emperor’s New Clothes tells us that the Emperor had no clothes on at all. Not only was he unable to find anything that fit, he probably didn’t look good in pink either. “Clothing colors affect apparent body size. Generally, warm, light … colors make the figure appear larger…” say the experts. Gee thanks. Like I didn’t have enough weight problems before? Can’t they figure out that it’s not easy being pink day after day? And that’s not the only problem. We’re advised by our own government to wash everything before wearing it. Not only do these clothes bleed into all the laundry even in cold water turning everything pink, they shrink to a size more easily worn by, say, Barbie or Ken. You want to talk size? For Christmas, I bought a 6′ tall friend a pair of men’s pajamas made in China, size XL. He told me that when they were washed, the elastic waistband shrank to about the diameter of his wedding band and the new pajamas fit no one in his house except his 6-year-old son, who still has a crenulated waistline. It’s no laughing matter after your new duds have shrunk in the wash and you try to get into them, especially the ones you pull on over your head. It’s like wearing pantyhose on your face. Like a Chinese finger puzzle, the more you struggle, the tighter you’re trapped. And good luck trying to find Made in the U.S.A. labels. Best you can hope for is the deceptive label, ” Assembled in the U.S.A.” What’re we, stupid? Like we can’t figure out stuff is made in China and shipped to the U.S. for “assembling?” The only thing I can come up with to keep even my “assembled in the U.S.A.” pick-up truck from turning pink and shrinking to a VW in the rain, is to check out malls in Shanghai. With any luck, everything there is made in the U.S.A.

See more here:
Maggie Van Ostrand: Red China Turns U.S.A. Pink

{ 0 comments }

By Keith Naughton (Corrects to 12 months in last paragraph.) Jan. 22 (Bloomberg) — The United Auto Workers, which gave up bonuses and cost-of-living increases at Ford Motor Co. last year, is waging a campaign against the carmaker to protest reinstatement of raises and benefits for salaried employees. UAW Vice President Bob King , nominated as the union’s next president, is asking all 41,000 of Ford’s hourly U.S. workers to file a “policy grievance” against the company for restoring raises, 401(k) matches and tuition assistance to white-collar employees, said Mark Caruso, president of a union local in Saline, Michigan. King has said he protested directly to Ford. “We’re disappointed that Ford Motor Co. would give back these take-aways to the salaried folks and not to us,” said Nick Kottalis, president of the Dearborn, Michigan, truck unit of UAW Local 600. “They’re violating the policy that called for equity of sacrifice in the modifications we passed in 2009.” Ford’s hourly workers agreed in March to give up annual bonuses, cost-of-living increases and some unemployment benefits that the company said would save $500 million in annual labor costs. Ford, the only major U.S. automaker to avoid bankruptcy, posted a surprise $997 million third-quarter profit last year after losing a record $14.7 billion in 2008. “This sends a signal that people are angry; it’s a warning,” said Harley Shaiken , labor professor at the University of California at Berkeley. “Ford understands the importance of good relations with the union. I suspect the company will be in the position to redress something, whether restoring something to hourly workers or rescinding something to salaried workers.” Added Concessions Rejected The Dearborn-based company told employees it wouldn’t grant raises last year, and said it suspended tuition assistance in 2008 and 401(k) matches last year. In November, 70 percent of Ford’s production workers and 74 percent of skilled trades rejected additional concessions that included a six-year ban on some strikes and a freeze on entry- level wages until 2015. Reached by telephone, Marcey Evans, a Ford spokeswoman, declined to comment. Christine Moroski, a UAW spokeswoman, didn’t immediately respond to a request for comment. Mark Fields , Ford’s president of the Americas, told the company’s 17,000 U.S. salaried workers in a Dec. 10 memo that they would be eligible for merit raises in 2010 and the company would resume matching 401(k) retirement savings for as much as 5 percent of base pay. “The members are tired of being the only one taking concessions,” Caruso said. “We’d like some equality of sacrifice.” Ford shares fell 66 cents, or 5.9 percent, to $10.52 at 4 p.m. in New York Stock Exchange composite trading. The stock has climbed fourfold in the past 12 months. To contact the reporter on this story: Keith Naughton in Southfield, Michigan, at Knaughton3@bloomberg.net

Link:
UAW Wages Campaign Against Ford to Protest Raises for White-Collar Workers

{ 0 comments }

Telefonica Profit May Trail as Devaluation Heightens Latin American Risks

January 12, 2010

By Paul Tobin Jan. 12 (Bloomberg) — Telefonica SA , Europe’s second- largest phone company, may fall short of profit targets as Venezuela’s currency devaluation highlights risks in Latin America, its fastest-growing market, some analysts said. Venezuela’s decision to devalue the bolivar by 50 percent may halve the more than $2 billion Telefonica had expected to repatriate from the country, its second-largest Latin American revenue generator after Brazil. The Madrid-based company is unlikely to meet its 2010 earnings-per-share goal of 2.1 euros ($3.05), said Georgios Ierodiaconou , an ING Groep NV. analyst. “Going into 2010, it’s going to be very difficult for Telefonica to deliver real growth in operating earnings from Latin America,” said London-based Ierodiaconou, who has a “sell” rating on the stock. “I see a 15 percent downside risk to the 2010 EPS guidance.” Telefonica has invested more than $50 billion in acquisitions in Latin America since the 1990s. Venezuela isn’t the only trouble spot for the company in the region. In Argentina, economic insecurity looms with the nation’s president and chief of the central bank pitted against each other over the use of national reserves to pay debt. Inflation is quickening both in Venezuela and Argentina. In Brazil, competition may intensify after France’s Vivendi SA defeated Telefonica in a takeover battle for phone company GVT (Holding) SA . Negative News Telefonica got 40 percent of revenue in the first nine months last year from Latin America, with the region the only one to post growth for the company. Telefonica’s operations in Latin America span from Mexico to Chile, with 163.7 million clients at the end of the third quarter, or 61 percent of the group’s customer base. Telefonica tumbled 3.2 percent to 18.50 euros in Madrid trading yesterday, the biggest decline in one year, and compared with a 0.6 percent drop in the Bloomberg Europe Telecommunication Services Index . Last year, Telefonica added 23 percent, more than double the 11 percent gain in the index. “Venezuela is not the only threat for Telefonica,” said Luis Benguerel , a Barcelona-based trader who helps manage $140 million at Interbrokers Espanola SA. “The news flow is turning negative from Latin America.” In the first nine months of the year, operating income before depreciation and amortization slipped 2.2 percent to 16.65 billion euros, with Latin America accounting for 40 percent of the total. Annual Inflation Telefonica maintains its short and mid-term goals and its dividend objectives through 2012, spokesman Miguel Angel Garzon said yesterday. The company has pledged to pay a 2010 dividend of 1.40 euros and it aims for a 2012 dividend of at least 1.75 euros. The reiteration came after Venezuela President Hugo Chavez on Jan. 8 devalued the 2.15-per dollar exchange rate for the bolivar to 4.3 and set a rate of 2.6 for imports of items such as food and medicine. Other global companies are also counting the cost of the devaluation. Procter & Gamble Co., the world’s largest consumer- goods company, yesterday said it is reviewing the impact of Venezuela’s devaluation. As of May 2009, Telefonica was seeking permission to repatriate the equivalent of $2 billion from its unit in Venezuela, Chief Financial Officer Santiago Fernandez Valbuena said on a conference call then. The devaluation could erode 2010 net income by 330 million euros, David A. Wright , a London-based analyst at Deutsche Bank, said in a note to investors. Should Telefonica use inflation accounting for Venezuela, the 2010 profit goal could be at risk, he said in the note. Argentina, Brazil Telefonica had 11.9 million clients in Venezuela in September, and generated 6.3 percent of nine-month group sales and 8 percent of Oibda from the country. The devaluation in Venezuela will add to an annual inflation of 27 percent, the highest among the 78 economies tracked by Bloomberg. In Argentina, consumer prices rose 0.8 percent in November from the previous month. Annual inflation quickened to 7.1 percent. Private economists and politicians such as Vice President Julio Cobos have questioned whether the country’s inflation is higher than reported. Argentine President Cristina Fernandez de Kirchner on Jan 7. ousted central bank chief Martin Redrado for refusing to support her plan to tap $6.6 billion in reserves to pay debt this year. A day later he returned to his post after a judge blocked a decree signed by Fernandez and her entire Cabinet dismissing him. Argentine bonds slumped to a one-month low last week amid the dispute. In Brazil, Vivendi gained control of GVT in November with an offer worth 7.2 billion reais ($4.2 billion), or 56 Brazilian reais a share, bringing increased competition for Telefonica. The Spanish company had offered to pay 50.50 reais per share, 20 percent more than an initial 42-reais offer that Vivendi disclosed in September. To contact the reporter on this story: Paul Tobin in Madrid at ptobin@bloomberg.net

Read the full article →

Meritage Homes Becomes the Only Large National Builder to be Energy Star Qualified in Every Home, Setting the Standard for Green Homebuilders

January 12, 2010

SCOTTSDALE, Ariz., Jan. 12, 2010 (GLOBE NEWSWIRE) — Meritage Homes Corporation (NYSE:MTH), a leading U.S. homebuilder, announced today that it enters its 25th Anniversary year in 2010 as the only large public builder to meet Energy Star standards in every home it builds. A green builder for many years, the company has strategically moved to incorporate more energy-efficient and environmentally-friendly features as standard features in its homes.

Read the full article →

• Real estate agents hoping market will right itself in 2010 (The Salisbury Post)

January 10, 2010

By Shelley Smith ssmith@salisburypost.com A new year means new beginnings,and local real estate agents in Rowan and Cabarrus counties are hoping that real estate sales in 2010 are better than the past few years. Realtors aren’t the only ones hoping …

Read the full article →

Urban Meyer Takes Leave as Florida Gators’ Football Coach Due to Health

December 27, 2009

By Nancy Kercheval Dec. 27 (Bloomberg) — Urban Meyer will leave his University of Florida football coaching position for health reasons after the No. 5 Gators play the third-ranked University of Cincinnati in the Sugar Bowl. The 45-year-old coach was hospitalized with chest pains after then top-ranked Florida lost 32-13 to No. 2 University of Alabama in the Southeastern Conference title Dec. 5. The Gators will meet Cincinnati on Jan. 1 in New Orleans. “I have given my heart and soul to coaching college football and mentoring young men for the last 24-plus years and I have dedicated most of my waking moments the last five years to the Gator football program,” Meyer said yesterday in a statement on the Gainesville university’s Web site. “I have ignored my health for years, but recent developments have forced me to re-evaluate my priorities of faith and family.” Meyer led the Gators to two National Championships and two SEC conference titles in 2006 and 2008. He is the only coach to win two Bowl Championship Series titles and the only coach in the history of the SEC to win two outright National Championships. Meyer has a 95-18 record for an .841 winning percentage over nine seasons. During the past five at Florida, he is 56-10 for an .848 winning percentage, the best in the school’s history and 32-8 in the SEC to earn the top career conference winning percentage of .800 among head coaches who were in the SEC at least five years. BCS Winner “I’m very thankful for the chance to work with some of the best assistants in college football and coach some of the best college football players and watch them grow both on and off the field as people,” said Meyer, who coached 2007 Heisman Trophy winner Tim Tebow . “I will cherish the relationships with them the most.” Under his direction, the Gators twice beat the BCS top- ranked teams in consecutive games by defeating Alabama in the SEC Championship in 2008 and then the University of Oklahoma in the national title game. The previous year, Florida beat Ohio State University in the national championship game to make Meyer the only coach to defeat three No. 1-ranked teams in his career. “The bottom line is that Coach Meyer needed to make a choice that is in the best interest of his well being and his family,” Athletics Director Jeremy Foley said. “I have never seen anyone more committed to his players, his family and his program.” ‘Lasting Legacy’ Four of the 17 Gators he coached who were selected for the National Football League Draft were picked in the first round. During his career, he has coached 62 players who signed NFL contracts. Meyer began his head coaching career in 2001 at Bowling Green State University, which went from a record of 2-9 to 8-3. He moved to the University of Utah, tallying 16 consecutive victories at the end of his time there in 2004. He extended his winning streak to 20 games when the Gators won their first four contests under his coaching expertise. “As a Gator, Urban has done everything we asked of him and more,” said university President J. Bernard Machen . “He leaves a lasting legacy on the field, in the classroom and in the Gainesville community. I am saddened that Urban is stepping down but I have deep respect for his decision.” To contact the reporter on this story: Nancy Kercheval in Washington at nkercheval@bloomberg.net .

Read the full article →

Leslie Pratch, Ph.D.: The U.S. Tax Code

December 3, 2009

This entry is the third in our series about capitalism, economics, education, the environment, and value creation. Fair taxation is the only true driver for an equitable and stable society. The U.S. tax code is a cruel joke. Due to excessive corruption within government and lobbying, it is unwieldy and serves those tax payers with enough money to exploit the loopholes. The simple answer is to scrap the code completely and replace it with a sliding scale of tax on everyone, with no exceptions, no special interest groups, no trust funds to protect the rich – and the only groups eligible for exemption are charities. Already we can hear the screams that a simple sliding scale would destroy businesses and kill innovation but surely not! There is always room for true entrepreneurship and the discovery of a useful drug that could heal where others could not deserves to earn a premium. We don’t see that a sliding scale on income tax would kill innovation. It would merely even the field all around. After all, isn’t a fair playing field and competition a central tenet on which our country was founded? Or was it ” free competition only if I have an advantage first. ” Do we really need trust funds? The wealthy have enough money to provide for their children (which includes the cost of education). A trust would then serve only to reduce the tax or to protect one’s assets in case one goes bankrupt. Neither of these reasons is acceptable for the creation of trust funds. The super wealthy could create scholarships for fatherless but promising youngsters in war torn regions outside the U.S. or urban ghettos. In both cases, the chances of that young person becoming a productive adult are slim compared to the effects of higher education and mentors when they’re needed. Such scholarship and mentoring programs are a far better use of surplus income of a wage earner that turning that money into a trust fund for a kid who would as easily blow it all away in a cocaine habit. A virtuous cycle began with directing a financial surplus from the core family unit (once basic legitimate expenses are covered for the rest of that family unit’s life) is an example creating a social good. This is the third in a series by Raj Alur and Leslie Pratch. Raj is an entrepreneur/technologist born and raised in India, educated in the United States, who now markets green energy solutions globally. Leslie is a clinical psychologist with an M.B.A. from The University of Chicago who specializes in working with private equity firms and their portfolio companies.

Read the full article →

Leslie Pratch, Ph.D.: The U.S. Tax Code

December 3, 2009

This entry is the third in our series about capitalism, economics, education, the environment, and value creation. Fair taxation is the only true driver for an equitable and stable society. The U.S. tax code is a cruel joke. Due to excessive corruption within government and lobbying, it is unwieldy and serves those tax payers with enough money to exploit the loopholes. The simple answer is to scrap the code completely and replace it with a sliding scale of tax on everyone, with no exceptions, no special interest groups, no trust funds to protect the rich – and the only groups eligible for exemption are charities. Already we can hear the screams that a simple sliding scale would destroy businesses and kill innovation but surely not! There is always room for true entrepreneurship and the discovery of a useful drug that could heal where others could not deserves to earn a premium. We don’t see that a sliding scale on income tax would kill innovation. It would merely even the field all around. After all, isn’t a fair playing field and competition a central tenet on which our country was founded? Or was it ” free competition only if I have an advantage first. ” Do we really need trust funds? The wealthy have enough money to provide for their children (which includes the cost of education). A trust would then serve only to reduce the tax or to protect one’s assets in case one goes bankrupt. Neither of these reasons is acceptable for the creation of trust funds. The super wealthy could create scholarships for fatherless but promising youngsters in war torn regions outside the U.S. or urban ghettos. In both cases, the chances of that young person becoming a productive adult are slim compared to the effects of higher education and mentors when they’re needed. Such scholarship and mentoring programs are a far better use of surplus income of a wage earner that turning that money into a trust fund for a kid who would as easily blow it all away in a cocaine habit. A virtuous cycle began with directing a financial surplus from the core family unit (once basic legitimate expenses are covered for the rest of that family unit’s life) is an example creating a social good. This is the third in a series by Raj Alur and Leslie Pratch. Raj is an entrepreneur/technologist born and raised in India, educated in the United States, who now markets green energy solutions globally. Leslie is a clinical psychologist with an M.B.A. from The University of Chicago who specializes in working with private equity firms and their portfolio companies.

Read the full article →

Best Buy, hhgregg and Others Give Needed Jolt to Former Circuit City-Anchored Shopping Centers

December 2, 2009

Throughout this downturn, electronics superstore Best Buy hasn’t been the only retailer fighting to gain market share following Circuit City’s liquidation of more than 700 stores and Tweeter’s bankruptcy and liquidation of about 150 stores. Regional electronics…

Read the full article →

Municipal Derivative Mythology Turns on 500 Swaps: Joe Mysak

November 25, 2009

Commentary by Joe Mysak Nov. 25 (Bloomberg) — States and municipalities used a lot fewer derivatives than we thought. Why everyone with an interest in public finance was led to believe that swaps mania was rampant says a lot about the conflicted and murky nature of the market. Those issuers that engaged in the swaps game are now getting out of it, often with a great deal of pain, in the form of multimillion-dollar payments to investment banks. The local governments among them are doing so at the same time their tax revenue has dropped off a cliff, unemployment is rising, and property values — and assessments — are falling. There’s a very good reason that most analysts say the default rate, now less than 1 percent, is going to rise. The damage is bad enough. Let’s take a look at the numbers. There are 89,526 state and local governments, including public school systems, in the U.S., according to the Census Bureau’s 2007 Census of Governments (released every five years). In any given year, states and municipalities offer about 10,000 bond issues. And now the most surprising number of all. How many have done swaps? Just 500. In October, Moody’s Investors Service produced a report on how the financial crisis was affecting municipal-bond issuers with variable-rate debt and swaps. That’s All? “When the credit market disruption began two years ago, we embarked on a comprehensive review of all Moody’s rated state and local governments with variable rate debt and swaps,” Moody’s said on Page 7. “We have since reviewed all of the approximately 500 issuers in this group.” Hold it right there: 500? After almost two decades of nationwide, frenzied marketing by bankers who said that everybody was doing it, that’s all? The size of the swaps and derivatives market has always been one of the great mysteries of public finance. “Market participants have suggested that the market is between $100 billion and $300 billion, annually, in notional principal amount, but until these derivative transactions are formally tracked, the figure will be unreliable,” the Municipal Securities Rulemaking Board said in a report published in April. This report, on unregulated municipal market participants, seems to have been a desperate bid to retain some relevance for the market’s self-regulatory organization. Inflated Estimates To be sure, that single sentence is remarkable. What it says is: We can’t possibly estimate how many muni swaps and derivatives there are, and because the only way we can try is by using the industry’s own inflated estimates, please don’t take them seriously. Now why do you think that is? This wasn’t the first time that market participants tried to gauge municipalities’ use of swaps and derivatives. No, that occurred back on July 30, 2007, when Standard & Poor’s published a report that said it had completed 750 “Debt Derivative Profiles” since it began tracking the use of swaps by municipal-bond issuers in September 2004. Only 255 were state or local governments. I thought this was a pretty small number compared with the hype I had heard about these things, and wrote a column about it. I received a barrage of e-mail from angry bankers and financial advisers, all of whom counseled me that S&P was wrong, the market was much bigger than that, and that obviously S&P had missed happy swaps users by the boatload. No Update S&P never seems to have updated that report, by the way. I wonder why. What might the real number be? The rating companies report only on the issuers they grade. They don’t rate all the issuers that sell bonds. There’s a lot of overlap between the two major companies. So let’s say there’s no overlap. That means 1,250 municipal-bond issuers have engaged in swaps and derivatives. Let’s say both rating companies missed some users. How many? 250? 500? 550? Let’s be generous and say 550. That brings the grand total of issuers who have used derivatives to 1,800. That’s not a very big number at all, compared with the almost 90,000 local governments out there, is it? You can see why bankers were licking their chops in 2002, 2003 and 2004, when it looked like more and more issuers were getting comfortable, finally, with the concept of swaps. Tainted Love I’m not the only one who bought the hype about these things. Earlier this month, the New York Times, in an article on Jefferson County, Alabama, reported with some confidence, “Over the last decade, thousands of governments around the country entered into deals linking bonds with derivatives, forming complex structures that were supposed to hold down borrowing costs.” The reason for the mismatch between the perception and the reality is that it was in nobody’s interest, except the public’s, for the truth to be told. The bankers who pushed these things so aggressively, because they could charge whatever they wanted for them, sought to reassure conservative public officials that they weren’t doing anything that everyone else wasn’t doing. All the other parties to the transaction, with a few rare exceptions, got in line if they wanted to feed at the trough. If there’s no deal, remember, nobody gets paid. ( Joe Mysak is a Bloomberg News columnist. The opinions expressed are his own.) Click on “Send Comment” in the sidebar display to send a letter to the editor. To contact the writer of this column: Joe Mysak in New York at jmysakjr@bloomberg.net

Read the full article →

Krugman: Obama Intimidated By Wall Street Scare Stories

November 23, 2009

A funny thing happened on the way to a new New Deal. A year ago, the only thing we had to fear was fear itself; today, the reigning doctrine in Washington appears to be “Be afraid. Be very afraid.” What happened? To be sure, “centrists” in the Senate have hobbled efforts to rescue the economy. But the evidence suggests that in addition to facing political opposition, President Obama and his inner circle have been intimidated by scare stories from Wall Street.

Read the full article →

Giants’ Tim Lincecum Wins National League Cy Young Award as Top Pitcher

November 19, 2009

By Erik Matuszewski Nov. 19 (Bloomberg) — Tim Lincecum of the San Francisco Giants beat out St. Louis Cardinals teammates Chris Carpenter and Adam Wainwright for the National League Cy Young, becoming the fourth repeat winner in the award’s history. Lincecum received 11 of 32 first-place votes and 100 points in the balloting by the Baseball Writers Association of America. Carpenter, the 2005 Cy Young Award winner, topped nine ballots and totaled 94 points, while Wainwright, whose 19 wins tied for the Major League Baseball lead, received 12 first-place votes and 90 points. Lincecum is just the second pitcher to win the award without receiving the most first-place votes, following Tom Glavine in 1998. Lincecum had a 15-7 record with a 2.48 earned-run average this season and led the NL with four complete games, two shutouts and 261 strikeouts. His win total is the lowest for a Cy Young winner in either league. The 25-year-old right-hander is the first NL pitcher to claim consecutive Cy Young awards since Randy Johnson won four years in a row from 1999 through 2002. Greg Maddux and Sandy Koufax are the only other pitchers to win back-to-back Cy Young awards in the NL. Pedro Martinez , Roger Clemens , Jim Palmer and Denny McLain won the AL Cy Young in successive years. Carpenter’s Stats The 34-year-old Carpenter, who was limited to four starts in 2007 and 2008 because of elbow problems, went 17-4 this season and led the NL with a 2.24 ERA. Wainwright was 19-8 with a 2.63 ERA. Two writers in each of the 16 NL cities selected their top three choices for Cy Young, with five points for a first-place vote, three for second and one for third. The fewest wins previously by a NL Cy Young winner was 16, by Brandon Webb of the Arizona Diamondbacks in 2006. Zack Greinke of the Kansas City Royals won this year’s AL honor with 16 wins. David Cone was the only other pitcher to capture the award with 16 victories, in the strike-shortened 1994 season. To contact the reporter on this story: Erik Matuszewski in New York at matuszewski@bloomberg.net

Read the full article →

How to Workout Distressed Commercial Real Estate Loans

November 4, 2009

On Friday the FDIC issued guidance to banks in the form of a policy statement entitled Prudent Commercial Real Estate Loan Workouts . The stated purpose of the document is It is intended to promote… [[ This is a content summary only. …

Read the full article →

Charlotte NC Real Estate Blog » Blog Archive » How to spot a deal …

November 3, 2009

The Bad: Poor choice for the inexperienced DIYer or someone with limited cash reserves, due diligence required, must act quickly. Well-Aged Listings. Cheese and wine are not the only things that get better with age; real estate can as …

Read the full article →

The Real News Network – Goldman left investors holding its …

November 3, 2009

McClatchy also learned of a second private Goldman deal, in which it sought in May 2007 via another Cayman company to sell $44.6 million in bonds related to subprime loans written by New Century Financial , a mortgage lender that weeks earlier had careened into … Goldman was a latecomer to the subprime game on Wall Street, and it was the first to get out and the only one to get out safely. But in the middle of the height of all this, Goldman was doing a lot of deals. …

Read the full article →

CIRE Magazine :: Betting On Troubled Assets

October 31, 2009

These cash-rich buyers are pooling funds to pick up troubled commercial real estate assets at bargain prices. “They are about the only ones with enough cash and no immediate expectation of financing being available soon,” says Ron L. …

Read the full article →

Freakonomics Guys Flunk Science of Climate Change: Eric Pooley

October 20, 2009

Commentary by Eric Pooley Oct. 20 (Bloomberg) — Steven D. Levitt and Stephen J. Dubner are so good at tweaking conventional wisdom that their first book, “ Freakonomics ,” sold 4 million copies. So when Dubner, an old friend, told me their new book would take on climate change, I was rooting for a breakthrough idea. No such luck. In “ SuperFreakonomics ,” their brave new climate thinking turns out to be the same pile of misinformation the skeptic crowd has been peddling for years. “Obviously, provocation is not last on the list of things we’re trying to do,” Dubner told me the other day. This time, the urge to provoke has driven him and Levitt off the rails and into a contrarian ditch. Their breezy take on global warming unleashed a barrage of highly detailed criticism from economists and climate experts , including a scientist who is misrepresented in the book. Dubner wonders why everyone is so angry. In part, it’s because the book’s blithe remedies — “We could end this debate and be done with it, and move on to problems that are harder to solve,” Levitt told the U.K. Guardian newspaper — are an insult to the thousands of scientists who have devoted their careers to this crisis. One of the injured parties is Ken Caldeira , a climate scientist at Stanford University who is quoted (accurately) as saying that “we are being incredibly foolish emitting carbon dioxide.” Then Dubner and Levitt add this astonishing claim: “His research tells him that carbon dioxide is not the right villain in this fight.” Provocative, Untrue That’s provocative, but alas, it isn’t true. Caldeira, like the vast majority of climate scientists, believes cutting carbon dioxide and other greenhouse-gas emissions is our only real chance to avoid runaway climate change. “Carbon dioxide is the right villain,” Caldeira wrote on his Web site in reply. He told Joe Romm , the respected climate blogger who broke the story , that he had objected to the “wrong villain” line but Dubner and Levitt didn’t correct it; instead, they added the “incredibly foolish” quote, a half step in the right direction. Caldeira gave the same account to me. Levitt and Dubner do say that the book “overstates” Caldeira’s position. That’s a weasel word: The book claims the opposite of what Caldeira believes. Caldeira told me the book contains “many errors” in addition to the “major error” of misstating his scientific opinion on carbon dioxide’s role. Why does this matter? Because there’s a titanic battle going on over whether and how to reduce carbon emissions, and this soon-to-be bestseller tries to convince people that we don’t need to do so. Dubner and Levitt trumpet their “wrong villain” line in their table of contents and promotional material . On National Public Radio the other day, Levitt said , “The real problem isn’t that there’s too much carbon in the air.” Multiple Villains “SuperFreakonomics” never identifies the “right villain,” so I called Dubner and asked. “I don’t think anybody knows for sure,” he told me. Then he acknowledged that the chapter’s most newsworthy claim “could have been better phrased, as ‘carbon dioxide is not the only villain.’” That’s a huge admission. No climate scientist believes carbon dioxide is the only villain: methane, nitrous oxide and other gases need to be reduced too. But that basic truth wouldn’t have drawn attention. It wouldn’t have given Levitt a bold contrarian line for NPR. Dubner and Levitt acknowledge that the planet has warmed but pretend that cutting emissions is a hopelessly old-school response. “It’s not that we don’t know how to stop polluting the atmosphere,” they write. “We don’t want to stop.” They ignore the fact that U.S. emissions have dropped 9 percent since 2007 — not just because of the recession but also thanks to energy efficiency and cleaner fuels. Chance of Catastrophe They exaggerate the cost of climate action and underestimate the likelihood of runaway global warming, pretending that the “relatively small chance of worldwide catastrophe” isn’t worth getting bothered about. They dismiss global warming as a “religion” and rehash the so-called “global cooling” scare of the 1970s, a favorite skeptic myth . (A handful of scientists warned of a coming ice age, a false alarm in no way comparable to today’s scientific consensus on warming.) They trumpet the “little-discussed fact” that the average global temperature has decreased in recent years. This is accurate according to one set of global data — the other shows an increase — but scientists say it proves nothing. Imagine the Dow climbing to 14,000, with a wobble to 13,950. That’s what global temperatures have done. Even with small fluctuations, this decade is by every measure the hottest in recorded history. The second hottest is the 1990s. The third hottest is the 1980s. Get the picture? Levitt and Dubner don’t. Shooting Sulfur Dioxide Having downplayed the problem, they try to solve it with a set of silver-bullet technologies known as geoengineering. One would shoot millions of tons of sulfur dioxide 18 miles into the air to artificially cool the planet. This could work; it also could have dire unintended consequences. Caldeira, who is researching the idea, argues that it can succeed only if we first reduce emissions. Otherwise, he says, geoengineering can’t begin to cope with the collateral damage, such as acidic oceans killing off shellfish. Levitt and Dubner ignore his view and champion his work as a permanent substitute for emissions cuts. When I told Dubner that Caldeira doesn’t believe geoengineering can work without cutting emissions, he was baffled. “I don’t understand how that could be,” he said. In other words, the Freakonomics guys just flunked climate science. ( Eric Pooley , a former managing editor of Fortune magazine who is writing a book about the politics of global warming, is a Bloomberg News columnist. The opinions expressed are his own.) Click on “Send Comment” in the sidebar display to send a letter to the editor. To contact the writer of this column: Eric Pooley at epooley2@bloomberg.net

Read the full article →

Homebuilder Confidence in U.S. Unexpectedly Drops as Credits Set to Expire

October 19, 2009

By Shobhana Chandra Oct. 19 (Bloomberg) — Confidence among U.S. homebuilders unexpectedly fell in October on mounting concern sales will retrench once government credits expire. The National Association of Home Builders/Wells Fargo confidence index declined to 18 from a reading of 19 in September that was the highest in more than a year, the Washington-based association said today. Figures less than 50 mean most respondents view conditions as poor. Builders are fretting as time runs out for purchasers to take advantage of the Obama administration’s $8,000 tax credit for first-time buyers, which expires at the end of November. All three components of the index, including measures of current and future sales and buyer traffic, dropped, signaling the market may take a step back after advancing for five consecutive months. “Clearly, builders are experiencing the effects of the expiring tax credit on their sales activity, since it would be virtually impossible at this point to complete a new home sale in time to take advantage of that buyer incentive,” David Crowe , the NAHB’s chief economist, said in a statement. Crowe said 85 percent of the members polled thought an extension of the credit would boost sales. The builder confidence index was forecast to rise to 20 this month, according to the median of 44 estimates of economists surveyed by Bloomberg News. Projections ranged from 18 to 21. The gauge, which was first published in January 1985, averaged 16 last year. Survey Components Builder shares fell for a third consecutive day. The Standard & Poor’s builder supercomposite index was down 0.8 percent to 267.09 at 1:38 p.m. in New York. The broader market rallied, sending the S&P 500 Index up 1.1 percent to 1,099.77 on better-than-anticipated earnings. “I would regard today’s numbers as a temporary blip,” said Michelle Meyer , an economist at Barclays Capital Inc. in New York. “Once we smooth through that volatility, home sales will continue to improve. The tax credit isn’t the only thing that’s helping sales.” The drop in prices, which has made buying more affordable, and a general improvement in the economy are among the factors that will contribute to a rebound, she said. The builder survey asks builders to characterize current sales as “good,” “fair” or “poor” and to gauge prospective buyers’ traffic. The survey also asks participants to gauge the outlook for the next six months. Broad Decline All three measures dropped for the first time since November. The builders group’s index of current single-family home sales fell to 17 this month from 18 in September. The gauge of buyer traffic dropped to 14 from 17, and a measure of sales expectations for the next six months decreased to 27 from 29. Confidence decreased in three of four regions, led by a four-point slump in the West. The Northeast was the only region to register a gain. The Mortgage Bankers Association, National Association of Home Builders and the National Association of Realtors today sent a letter to Treasury Secretary Tim Geithner , White House economic adviser Lawrence Summers and Housing and Urban Development Secretary Shaun Donovan requesting an extension of the credit for at least a year after it expires on Nov. 30. The three groups urged Congress to expand the initiative to include all, not just first-time, buyers of primary residences, increase the amount of the credit and make the funds available for closing. The Realtors’ association estimated the program generated about 355,000 more home sales than would have been the case. Sales Gains Sales of new homes dropped to a four-decade-low 329,000 annual pace in January. Purchases climbed in six of the next seven months, reaching a 429,000 pace in August. Commerce Department figures on September sales are due next week. If Congress extends the credit and credit begins to flow again “we can turn this thing around by the middle of next year,” NAHB President Jerry Howard , said in an interview on Bloomberg Television. If lawmakers don’t act quickly, “then the housing industry is in jeopardy. The group projects an extension for another year will create 350,000 jobs, generate $28.2 billion in wages and business income and $11.6 billion in additional tax revenue. Preparing for Rebound D.R. Horton Inc., the largest U.S. homebuilder by revenue, is among companies projecting the recent improvement will be sustained. The Fort Worth, Texas-based company said last month it is buying finished lots, rather than building on undeveloped land it already owns, to boost its construction pipeline in anticipation of a housing revival. “There have been some small encouraging signs in our sales and our average sales prices,” Bill W. Wheat, D.R. Horton’s chief financial officer, said on a Sept. 30 call with investors. Stabilization in residential construction is among the reasons economists project the U.S. began to grow again last quarter. The world’s largest economy probably expanded at a 3.2 percent annual pace from July through September, according to the median estimate of economists surveyed earlier this month. To contact the reporter on this story: Shobhana Chandra in Washington schandra1@bloomberg.net .

Read the full article →

Ivy League upset – Endowment leader shifts

September 25, 2009

… cut back on equities and move into distressed debt? It came out of the experience … than our peers in private equity and real estate and other illiquid asset classes. They’re only …

Read the full article →

Polish Government Approves Sale of State Assets to Cover Swollen Deficit

August 11, 2009

By Katya Andrusz and Dorota Bartyzel Aug. 11 (Bloomberg) — Poland’s Cabinet approved a plan to sell stakes in state-owned companies including KGHM Polska Miedz SA and Grupa Lotos SA in an effort to finance its budget deficit after tax revenue slumped and public debt soared. “The plan acknowledges the need to speed up privatization,” said Prime Minister Donald Tusk at a press conference in Warsaw today. The budget “requires a cash injection to cover basic spending.” The move will release almost 37 billion zloty ($12.5 billion) through 2010, a key contribution to financing the general budget gap, which the European Commission says may widen to 7.3 percent of gross domestic product in 2010 from an estimated 6.6 percent in 2009. That would send the shortfall to 95.52 billion zloty, nearly double the 2008 general government deficit, according to Bloomberg calculations based on the Commission’s forecasts. The agreement sparked a workers strike earlier today at copper producer KGHM that lasted two hours. Tusk later responded with assurances that the Treasury will maintain a controlling stake in KGHM and Lotos, as well as in other power plants earmarked for divestment, after previously saying the state might sell as much as 42 percent. “The revenue from the sale will be used by the state budget, thus it will be of benefit for all Poles and not only for the workers of KGHM,” Tusk said. Poland remains the only one of the European Union’s eastern members to have avoided a recession since the global credit crisis started. Even so, next year’s budget is vital to boost the economy and put Poland back on track for euro adoption, after the government was forced last month to abandon its 2012 euro-adoption goal. It has not yet set a new target date. ‘Extremely Sensible’ “It’s high time that Poland undertook real privatization,” said economist Miroslaw Gronicki, a former finance minister, by phone. “Any revenue from privatization means a reduction in debt, and as far as the budget is concerned it’s an extremely sensible move.” According to Stanislaw Gomulka , who served as deputy finance minister under the current government, asset sales would allow the government to circumvent political obstacles to resolving its fiscal dilemma. President Lech Kaczynski has said he would veto any attempt to raise taxes as a way of increasing budget revenue, while his twin brother and leader of the main opposition party, Jaroslaw, has ruled out cooperating on measures to augment revenue. ‘Virtually Impossible’ “The legislative route is virtually impossible for the government, so privatization is the only way out,” Gomulka said by phone. “Union protests have been a big factor in the lack of privatization in recent years — but the situation has got so bad now this constraint might have been lifted.” The government also plans to sell stakes in its largest power groups, including Polska Grupa Energetyczna SA and Enea SA, as well as oil refiner Grupa Lotos SA, the Warsaw Stock Exchange and coal mine Lubelski Wegiel Bogdanka SA. The sale of 67 percent of Enea, valued at 7.4 billion zloty, would be the biggest disposal since France Telecom SA bought a stake in Telekomunikacja Polska SA in 2000. The state also holds 2.5 percent of Bank Handlowy w Warszawie SA, a subsidiary of Citigroup Inc., and 1.9 percent of Allied Irish Banks Plc’s Bank Zachodni WBK SA unit. Ten-year bond yields could fall as much as 20 basis points over the next few weeks as the combination of higher asset sales and signs of economic recovery prompt investors to reassess Poland’s borrowing needs next year, said Mateusz Szczurek, chief economist at ING Bank Slaski SA in Warsaw. “The government’s plan has the potential to do some good at the long end of the yield curve,” he said. To contact the reporters on this story: Katya Andrusz in Warsaw at kandrusz@bloomberg.net Dorota Bartyzel in Warsaw at dbartyzel@bloomberg.net

Read the full article →

Polish Government May Agree Asset Sales Are Best Option to Finance Deficit

August 11, 2009

By Katya Andrusz and Dorota Bartyzel Aug. 11 (Bloomberg) — Poland’s government may decide today that selling state-owned companies is its best option for financing a budget deficit after tax revenue slumped and public debt swelled. A government advisory panel late yesterday cleared the way for Cabinet to discuss a proposal by the country’s Treasury to speed up asset sales. The plan, as outlined by Treasury Minister Aleksander Grad on July 23, would raise as much as 37 billion zloty ($12.7 billion) over the next 18 months. The move would help finance Poland’s general government deficit, which the European Commission estimates will widen to 7.3 percent of gross domestic product next year from 6.6 percent in 2009, without forcing the government to borrow through bond sales. The proposal has also roused opposition from the government’s junior coalition partner, led by Deputy Prime Minister Waldemar Pawlak , and provoked trade unions to call a two-hour strike by workers at copper producer KGHM Polska Miedz SA for 6 a.m. today. “The fiscal threat is so great that it puts privatization in a new context,” said Michal Boni , chief adviser to Prime Minister Donald Tusk , in an Aug. 8 interview with television station TVN24. “The rigors of an excessive deficit mean we need to look for subtle instruments.” Poland remains the only one of the European Union’s eastern members so far to have avoided a recession. Even so, next year’s budget is vital to boost the economy and put Poland back on track for euro adoption. “It’s high time that Poland undertook real privatization,” said economist Miroslaw Gronicki, a former finance minister, by phone. “Any revenue from privatization means a reduction in debt, and as far as the budget is concerned it’s an extremely sensible move.” Abandoned Target Tusk’s government is seeking to speed up sales of state assets after the government was forced last month to raise its 2009 deficit target by 48 percent after tax revenue slumped in the wake of the global economic crisis. The country abandoned its 2012 euro adoption target without setting a new deadline. According to Stanislaw Gomulka , who served as deputy finance minister under the current government, asset sales would allow the government to circumvent political obstacles to resolving its fiscal dilemma. President Lech Kaczynski has said he would veto any attempt to raise taxes as a way of increasing budget revenue, while his twin brother and leader of the main opposition party, Jaroslaw, has ruled out cooperating on measures to augment revenue. ‘Virtually Impossible’ “The legislative route is virtually impossible for the government, so privatization is the only way out,” Gomulka said by phone. “Union protests have been a big factor in the lack of privatization in recent years — but the situation has got so bad now this constraint might have been lifted.” Opposition from the government’s coalition partner, led by Deputy Prime Minister Pawlak, may urge policy makers to hesitate before turning to asset sales. Poland needs “level-headed privatization, not a quick mass sale,” he said in an interview with the newspaper Gazeta Wyborcza last month. Pawlak has argued that workers and managers at state-owned companies should be given the first opportunity to buy stakes if the government puts them up for sale. The Treasury has said it may sell as much as the entire 42 percent stake that the state holds in KGHM. Boni has since said the government won’t sell more than about 10 percent in the company. The government needs to retain effective control of the company even if it sells some of its shares, Boni said. The government’s need for deficit financing in 2010 is so “desperate” that it will probably sell a 10 percent stake in KGHM, no matter how much the unions protest, said Michal Marczak, a Warsaw-based analyst at BRE Bank SA. “The unions know the government needs cash and will fight to gain some benefits,” Marczak said. “They’ll win something, the government will sell a stake and life goes on.” To contact the reporters on this story: Katya Andrusz in Warsaw at kandrusz@bloomberg.net Dorota Bartyzel in Warsaw at dbartyzel@bloomberg.net

Read the full article →

Lloyd Chapman: Who Are the Real Small Business Advocates in America?

July 27, 2009

Can Legitimate Small Business Groups be Funded by Fortune 500 Firms? Can an organization claim to represent the interests of small businesses and never lift a finger to stop the most highly publicized issue affecting small businesses for the last eight years? Can an organization funded by Fortune 500 firms truly represent small businesses?

Read the full article →

Lloyd Chapman: Who Are the Real Small Business Advocates in America?

July 27, 2009

Can Legitimate Small Business Groups be Funded by Fortune 500 Firms? Can an organization claim to represent the interests of small businesses and never lift a finger to stop the most highly publicized issue affecting small businesses for the last eight years

Read the full article →