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Scientists have the first evidence that life-threatening peanut allergies may be cured one day. A few kids now are allergy-free thanks to a scary treatment — tiny amounts of the very food that endangered them. Don’t try this at home. Doctors monitored the youngsters closely in case they needed rescue, and there’s no way to dice a peanut as small as the treatment doses required. But over several years, the children’s bodies learned to tolerate peanuts. Immune-system tests show no sign of remaining allergy in five youngsters, and others can withstand amounts that once would have left them wheezing or worse. “We’re optimistic that they have lost their peanut allergy,” said the lead researcher, Dr. Wesley Burks, Duke’s allergy chief. Rhonda Cassada['s] 7-year-old son, Ryan, has been labeled allergy-free for two years and counting. It’s a big change for a child who couldn’t tolerate one-sixth of a peanut when he entered the study at age 2 1/2. By 5, Ryan could eat a whopping 15 peanuts at a time with no sign of a reaction. More rigorous research is under way to confirm the pilot study, released Sunday at a meeting of the American Academy of Asthma and Immunology. If it pans out, the approach could mark a major advance for an allergy that afflicts 1.8 million people in the United States. Millions of people have food allergies and peanut allergy is considered the most dangerous, with life-threatening reactions possible from trace amounts. It accounts for most of the 30,000 emergency-room visits and up to 200 deaths attributed to food allergies each year. Although some children outgrow peanut allergy, that’s rare among the severely affected. There’s no way to avoid a reaction other than avoiding peanuts.
Note: For many hopeful reports on health issues from major media sources, click here.
When [Claudette Colvin] was 15, she refused to move to the back of the bus and give up her seat to a white person — nine months before Rosa Parks did the very same thing. Most people know about Parks and the Montgomery, Ala., bus boycott that began in 1955, but few know that ... Colvin was the first to really challenge the law. She remembers taking the bus home from high school on March 2, 1955. The bus driver ordered her to get up and she refused, saying she'd paid her fare. Two police officers put her in handcuffs and arrested her. Now her story is the subject of a new book, Claudette Colvin: Twice Toward Justice. Author Phil Hoose says that ... there was this teenager, nine months before Rosa Parks, "in the same city, in the same bus system, with very tough consequences, hauled off the bus, handcuffed, jailed and nobody really knew about it." He also believes Colvin is important because she challenged the law in ... the court case that successfully overturned bus segregation laws in Montgomery and Alabama. People may think that Parks' action was spontaneous, but black civic leaders had been thinking about what to do about the Montgomery buses for years. The stories of Parks and the Rev. Martin Luther King Jr. are ... the stories of people in their 30s and 40s. Colvin was 15. Hoose feels his book will bring a fresh teen's perspective to the struggle to end segregation.
Note: For more along these lines, see concise summaries of deeply revealing civil liberties articles from reliable major media sources.
Powerful Democrats on Capitol Hill are clamoring for creation of a bipartisan "9/11 style" commission to investigate the legality of the Bush administration's antiterrorism tactics—especially its use of harsh interrogation techniques. The case for a "truth" commission was bolstered by the disclosure this month that the CIA had destroyed 92 videotapes of the interrogations and confinement of Al Qaeda suspects. A dozen showed the use of ... torture. Lawmakers say the obvious model for such an inquiry would be the 9/11 Commission. [But] the commission appears to have ignored obvious clues throughout 2003 and 2004 that its account of the 9/11 plot and Al Qaeda's history relied heavily on information obtained from detainees who had been subjected to torture, or something not far from it. The [Commission] raised no public protest over the CIA's interrogation methods. In fact, the Commission demanded that the CIA carry out new rounds of interrogations in 2004 to get answers to its questions. That has troubling implications for the credibility of the commission's final report. In intelligence circles, testimony obtained through torture is typically discredited; research shows that people will say anything under threat of intense physical pain. Former senator Bob Kerrey of Nebraska, a Democrat on the commission, told me last year he had long feared that the investigation depended too heavily on the accounts of Al Qaeda detainees who were physically coerced into talking. Kerrey said it might take "a permanent 9/11 commission" to end the remaining mysteries of September 11.
Note: For key statements by hundreds of respected scholars and professionals questioning the accuracy of the 9/11 Commission's report, click here.
The Obama administration said Friday that it would abandon the Bush administration’s term “enemy combatant” as it argues in court for the continued detention of prisoners at Guantánamo Bay, Cuba, in a move that seemed intended to symbolically separate the new administration from Bush detention policies. But in a much anticipated court filing, the Justice Department argued that the president has the authority to detain terrorism suspects there without criminal charges, much as the Bush administration had asserted. It provided a broad definition of those who can be held, which was not significantly different from the one used by the Bush administration. The filing signaled that, as long as Guantánamo remains open, the new administration will aggressively defend its ability to hold some detainees there. The filing, in Federal District Court in Washington, was meant to provide a definition of those detainees who can be held and bitterly disappointed critics of Guantánamo, who said it seemed to continue the policies they have criticized for more than seven years. It was the latest example of the Obama administration’s taking ownership of Guantánamo, even after having announced it would close the prison, where 241 men remain. “This seems fundamentally consistent with the positions of the prior administration,” said Steven A. Engel, who was a senior lawyer responsible for detainee issues in the Justice Department’s Office of Legal Counsel until the final day of the Bush administration.
Note: For lots more on the "war on terrorism", click here.
People are looking for ways to trim budgets and cut down on energy use. There's a product heating up in Utah that does just that. It even helps a good cause. Don't underestimate the power of cooking with the sun. LaRue Howells first bought a Global Sun Oven a year ago to be prepared for an emergency, but now she uses it a few times a week, all-year round and shares her knowledge with members of her church. Howells said, "I can grab the solar oven and some food and take off if I needed to, and it's wonderful to have." She baked bread for us. The temperature outside was in the low 40s. "We baked bread when it was 17 degrees outside," she said. "The temperature outside isn't the issue, it's the sun." To control the heat of the oven, you adjust the angle of the oven to the sun. If you want to reduce the heat, you angle it away from the sun. One-third of the Sun Ovens sold in the U.S. are sold in Utah. Joe Crane, with Kitchen Kneads, said, "Just being prepared, self-sufficient brings a lot of peace of mind to people." Crane started to sell them nearly a year ago. "Temperature makes no difference," he said. "I've cooked at 5 below to 90 degrees in the summer time." All you need is sun, and cook times aren't much longer than with a conventional oven. As useful as we might find them, Sun Ovens are life sustaining in developing countries looking for solutions to deforestation and energy deficiency. Domestic sales help pay for ovens in Afghanistan, Nepal and South Africa. They cost around $300. Sun Ovens [use] no electricity and [burn] no fuels, meaning no emissions.
Note: For more on this fascinating development, https://www.sunoven.com. See also http://solarcookers.org
Retirement slammed Carole Jacko. Raising two grandchildren, she's too young for Medicare and too strapped to pay $600 a month for health insurance. So when a trip to the emergency room ended with a diagnosis of diabetes, Jacko found a creative solution. She became a medical guinea pig, offering herself to science in exchange for free medication, free doctor's visits and even a modest payment. With the economy careening and millions uninsured, some doctors and researchers believe the lure of volunteering for medical research is growing – and so are potential ethical pitfalls. "Sometimes desperation leads people to be poor shoppers," to gloss over risks or grasp at imagined benefits, said Kevin Weinfurt, a Duke University professor who focuses on medical decision-making and ethics. No regulations limit how much a person can be paid to take part in medical research. Researchers do not agree on how much money it takes to cross the line and exert "undue influence" or coercion to get someone to enroll in a study. That's something federal regulations do forbid. "This is the most complicated issue in research ethics, and it's still an unsettled question," Weinfurt said. It has lingered for more than 100 years, since an Army surgeon named Walter Reed paid volunteers at a Cuban outpost $100 in gold to risk being infected with yellow fever. The men got another $100 if they contracted the disease, payable to themselves – or any designated survivor.
Note: For many reports on corruption in the pharmaceutical and medical industries from major media sources, click here.
Financial institutions that are getting government bailout funds have been told to put off evictions and modify mortgages for distressed homeowners. They must let shareholders vote on executive pay packages. They must slash dividends, cancel employee training and morale-building exercises, and withdraw job offers to foreign citizens. As public outrage swells over the rapidly growing cost of bailing out financial institutions, the Obama administration and lawmakers are attaching more and more strings to rescue funds. The conditions are necessary to prevent Wall Street executives from paying lavish bonuses and buying corporate jets, some experts say. Some bankers say the conditions have become so onerous that they want to return the bailout money. The list includes small banks ... as well as giants like Goldman Sachs and Wells Fargo. They say they plan to return the money as quickly as possible or as soon as regulators set up a process to accept the refunds. A senior Treasury official involved in the bailout effort said the administration was carefully trying not to do anything that could harm the banks and was giving financial incentives to modify mortgages. But by keeping weak banks operating, the markets continue to sink and taxpayer costs are mounting, outside experts said. “The current policy is likely to result in weaker banks,” Mr. Seidman said. “And keeping insolvent banks in operation does not benefit the system.”
Note: Could it be that that the main reason top bank executives are now talking about giving money back is that don't want to give up their lavish bonuses and corporate jets? What about all the talk about how the whole world would go to pot if they didn't get this bailout money? Somehow this is not surprising.
[Pulitzer prize winning] investigative reporter Seymour Hersh may have made a little more news than he intended by talking about new alleged instances of domestic spying by the CIA, and about an ongoing covert military operation that he called an “executive assassination ring.” [In reply to a question, Hersh said] "After 9/11 ... the Central Intelligence Agency was very deeply involved in domestic activities against people they thought to be enemies of the state, without any legal authority for it. Today, there was a story in the New York Times that ... mentioned something known as the Joint Special Operations Command -- JSOC it’s called. They reported directly to the Cheney office. They did not report to the chairman of the joint chiefs of staff or to Mr. [Robert] Gates, the secretary of defense. They reported directly to [Cheney]. ... Congress has no oversight of it. It’s an executive assassination ring essentially, and it’s been going on and on. They’ve been going into countries, not talking to the ambassador or the CIA station chief, and finding people on a list and executing them and leaving. That’s been going on, in the name of all of us." He added that both the press and the public let down their guard in the aftermath of 9/11. “The major newspapers joined the [Bush] team,” Hersh said. Top editors passed the message to investigative reporters not to “pick holes” in what Bush was doing.
Note: For further revelations of the excesses committed in the name of the "war on terror", click here.
Prominent banking analyst Meredith Whitney warned that "credit cards are the next credit crunch," as contracting credit lines will lower consumer spending and hurt the U.S. economy. "Few doubt the importance of consumer spending to the U.S. economy and its multiplier effect on the global economy, but what is under-appreciated is the role of credit-card availability in that spending," Whitney wrote in the Wall Street Journal. Although credit was extended "too freely over the past 15 years" and rationalization of lending is unavoidable, what needs to be avoided was "taking credit away from people who have the ability to pay their bills," said Whitney, CEO of Meredith Whitney Advisory Group. Whitney said available lines were reduced by nearly $500 billion in the fourth quarter of 2008 alone, and she estimates over $2 trillion of credit-card lines will be cut within 2009, and $2.7 trillion by the end of 2010. "Inevitably, credit lines will continue to be reduced across the system, but the velocity at which it is already occurring and will continue to occur will result in unintended consequences for consumer confidence, spending and the overall economy," Whitney said. There is roughly $5 trillion in credit-card lines outstanding in the U.S., and a little more than $800 billion is currently drawn upon, she said. "Lenders, regulators and politicians need to show thoughtful leadership now on this issue in order to derail what I believe will be at least a 57 percent contraction in credit-card lines," she said.
Note: Some believe that rising defaults on credit card debt could cause yet another financial shock to the system. For many more revelations of the amazing realites of the Wall Street bailout and the now world-wide financial and credit crises, click here.
The U.S. will reduce its military presence in Iraq by 12,000 troops over the next six months as part of the first major drawdown since President Obama announced his plan to end combat operations in the country next year, U.S. military officials in Baghdad [announced]. The drawdown reflects ... a major shift in priorities for the U.S. military, which is increasingly focused on efforts to arrest the deteriorating situation in Afghanistan. The plan would reduce U.S. troop strength by nearly 10%. The plan calls for the number of U.S. brigade combat teams to drop from 14 to 12. Two brigade teams that had been scheduled to redeploy in the next six months will not be replaced. When the American move is completed, it would reduce the U.S. military presence in Iraq to about 128,000 troops. The Iraq withdrawals are crucial to the administration's plans to devote more military resources to Afghanistan. Senior U.S. national security officials are nearing completion of a strategic review of the U.S. mission in Afghanistan, a step that Obama has described as an effort "to stabilize a deteriorating situation." Seven years after the U.S. invasion, Afghanistan's stability is threatened by a renewed Taliban insurgency. Last month, Obama announced plans to send 17,000 additional U.S. soldiers and Marines to Afghanistan -- deployments that would more than offset the troop reductions in Iraq.
Note: So President Obama withdraws 12,000 troops from Iraq, yet sends 17,000 troops to Afghanistan. What kind of withdrawl is this? Could it be that even Obama supports the war machine? To find out more, click here.
Five of America's largest banks, most of which have received $145 billion in taxpayer bailout dollars, still face potentially catastrophic losses from exotic investments if economic conditions substantially worsen, their latest financial reports show. Citibank, Bank of America, HSBC Bank USA, Wells Fargo Bank and J.P. Morgan Chase reported that their "current" net loss risks from derivatives — insurance-like bets tied to a loan or other underlying asset — surged to $587 billion as of Dec. 31 ... a jump of 49 percent in just 90 days. The banks' potentially huge losses ... shed new light on the hurdles that President Barack Obama's economic team must overcome to save institutions it deems too big to fail. While the potential loss totals include risks reported by Wachovia Bank, which Wells Fargo agreed to acquire in October, they don't reflect another Pandora's Box: the impact of Bank of America's Jan. 1 acquisition of tottering investment bank Merrill Lynch, a major derivatives dealer. The risks of these off-balance sheet investments, once thought minimal, have risen sharply. Fears are rising that a spate of corporate bankruptcies could deliver a new, crippling blow to major banks. Because of the trading in derivatives, corporate bankruptcies could cause a chain reaction that deprives the banks of hundreds of billions of dollars in insurance they bought on risky debt or forces them to shell out huge sums to cover debt they guaranteed. The biggest concerns are the banks' holdings of contracts known as credit-default swaps.
Note: For many powerful revelations from major media sources of the Wall Street bailout, click here.
A silent $1 trillion "Run on Britain" by foreign investors was revealed yesterday in the latest statistical releases from the Bank of England. The external liabilities of banks operating in the UK – that is monies held in the UK on behalf of foreign investors – fell by $1 trillion (Ł700bn) between the spring and the end of 2008, representing a huge loss of funds and of confidence in the City of London. Some $597.5bn was lost to the banks in the last quarter of last year alone, after a ... massive $682.5bn haemorrhaged in the second quarter of 2008 – a record. About 15 per cent of the monies held by foreigners in the UK were withdrawn over the period. This is by far the largest withdrawal of foreign funds from the UK in recent decades – about 10 times what might flow out during a "normal" quarter. The revelation will fuel fears that the UK's reputation as a safe place to hold funds is being fatally compromised by the acute crisis in the banking system and a general trend to financial protectionism internationally. The slide in sterling – it has shed a quarter of its value since mid-2007 – has been both cause and effect of the run on London, seemingly becoming a self-fulfilling phenomenon. The danger is that the heavy depreciation of the pound could become a rout if confidence completely evaporates. Paranoia that the UK could follow Iceland into effective national insolvency and jibes about "Reykjavik on Thames" will find an unwelcome substantiation in these statistics.
Note: For many deep revelations of the realities of the world financial crisis from reliable sources, click here.
There's a $700 trillion elephant in the room and it's time we found out how much it really weighs on the economy. Derivative contracts total about three-quarters of a quadrillion dollars in "notional" amounts, according to the Bank for International Settlements. These contracts are tallied in notional values because no one really can say how much they are worth. But valuing them correctly is exactly what we should be doing because these comprise the viral disease that has infected the financial markets and the economies of the world. Try as we might to salvage the residential real estate market, it's at best worth $23 trillion in the U.S. We're struggling to save the stock market, but that's valued at less than $15 trillion. And we hope to keep the entire U.S. economy from collapsing, yet gross domestic product stands at $14.2 trillion. Compare any of these to the derivatives market and you can easily see that we are just closing the windows as a tsunami crashes to shore. The total value of all the stock markets in the world amounts to less than $50 trillion, according to the World Federation of Exchanges. To be sure, the derivatives market is international. But much of the trouble we're in began with contracts "derived" from the values associated with U.S. residential real estate market. These contracts were engineered based on the various assumptions tied to those values. Few know what derivatives are worth. I spoke with one derivatives trader who manages billions of dollars and she said she couldn't even value her portfolio because "no one knows anymore who is on the other side of the trade."
Note: Banks and financial firms deemed "too big to fail" were bailed out worldwide at taxpayers' expense. But what will happen if losses in the derivatives market skyrocket? No government in the world has the resources to save financial corporations from a collapse in their derivatives trading. For a treasure trove of reports from reliable sources detailing the amazing control of major banks over government and society, click here.
It's not often that a place like Harvard Medical School gets an F – particularly when rivals Stanford, Columbia and the University of Pennsylvania are pulling A's and B's. But that's what happened recently when the members of the increasingly influential – and increasingly noisy – American Medical Student Association (AMSA) decided to grade 150 med schools on just how much money and gifts they're collecting from drug companies. The more goodies a school is vacuuming up from the industry, the worse its grade. It turns out that many professors and instructors are, legally, on the dole as well, and students are beginning to worry that what they're being taught is just as one-sided as what patients are being prescribed. Harvard, at the moment, is at the center of it. Of Harvard's 8,900 professors and lecturers, 1,600 admit that either they or a family member have had some kind of business link to drug companies – sometimes worth hundreds of thousands of dollars – that could bias their teaching or research. Additionally, pharma contributed more than $11.5 million to the school last year for research and continuing-education classes. And while Harvard might be the highest-profile name that was posted on AMSA's grade list, it was hardly the only one that flunked: 40 out of the 150 schools surveyed received F's; only 22 got an A or B. Harvard has convened a 19-member committee ... to review its pharma policy, though the university is hedging on whether it actually plans to change the way it operates.
Note: For more along these lines, see concise summaries of deeply revealing news articles on Big Pharma corruption from reliable major media sources.
With economic activity contracting in 2009's first quarter at the same rate as in 2008's fourth quarter, a nasty U-shaped recession could turn into a more severe L-shaped near-depression (or stag-deflation). The scale and speed of synchronized global economic contraction is really unprecedented (at least since the Great Depression), with a free fall of GDP, income, consumption, industrial production, employment, exports, imports, residential investment and, more ominously, capital expenditures around the world. And now many emerging-market economies are on the verge of a fully fledged financial crisis, starting with emerging Europe. In the meantime, the massacre in financial markets and among financial firms is continuing. The debate on "bank nationalization" is borderline surreal, with the U.S. government having already committed--between guarantees, investment, recapitalization and liquidity provision--about $9 trillion of government financial resources to the financial system (and having already spent $2 trillion of this staggering $9 trillion figure). Thus, the U.S. financial system is de facto nationalized, as the Federal Reserve has become the lender of first and only resort rather than the lender of last resort, and the U.S. Treasury is the spender and guarantor of first and only resort. And even with the $2 trillion of government support, most of these financial institutions are insolvent, as delinquency and charge-off rates are now rising at a rate ... that means expected credit losses for U.S. financial firms will peak at $3.6 trillion. So, in simple words, the U.S. financial system is effectively insolvent.
Note: The author of this insightful analysis, Nouriel Roubini, has a very informative blog, available here.
Federal Deposit Insurance Corp. Chairman Sheila Bair said the fund it uses to protect customer deposits at U.S. banks could dry up amid a surge in bank failures, as she responded to an industry outcry against new fees approved by the agency. “Without these assessments, the deposit insurance fund could become insolvent this year,” Bair wrote in a March 2 letter to the industry. “A large number” of bank failures may occur through 2010 because of “rapidly deteriorating economic conditions.” The fund, which lost $33.5 billion in 2008, was drained by 25 bank failures last year. Sixteen banks have failed so far this year, further straining the fund. Smaller banks are outraged over the one-time fee ... Camden Fine, president of the Independent Community Bankers of America, said yesterday. The agency, which has released the change for 30 days of public comment, could modify the assessment to shift the burden to the large banks “that caused this train wreck,” Fine said. “Community bankers are feeling like they are paying for the incompetence and greed of Wall Street,” he said. Consumers should watch this issue closely, said Edmund Mierzwinski, consumer program director at U.S. PIRG, a Boston- based consumer-watchdog group. “I wouldn’t take their money out of the bank yet,” Mierzwinski said. “If the FDIC is saying that there is this serious problem, then we should all be concerned. I think there is a chance the FDIC is going to have to ask taxpayers for money in the future.”
Note: For lots more on the financial crisis from reliable sources, click here.
One in every 31 adults, or 7.3 million Americans, is in prison, on parole or probation, at a cost to the states of $47 billion in 2008, according to a new study. Criminal correction spending is outpacing budget growth in education, transportation and public assistance, based on state and federal data. Only Medicaid spending grew faster than state corrections spending, which quadrupled in the past two decades, according to [a new report] by the Pew Center on the States, the first breakdown of spending in confinement and supervision in the past seven years. The increases in the number of people in some form of correctional control occurred as crime rates declined by about 25 percent in the past two decades. As states face huge budget shortfalls, prisons, which hold 1.5 million adults, are driving the spending increases. Pew researchers say that as states trim services like education and health care, prison budgets are growing. Those priorities are misguided, the study says. “States are looking to make cuts that will have long-term harmful effects,” said Sue Urahn, managing director of the Pew Center on the States. “Corrections is one area they can cut and still have good or better outcomes than what they are doing now.” About $9 out of $10 spent on corrections goes to prison financing (that includes money spent to house 780,000 people in local jails). One in 11 African-Americans, or 9.2 percent, are under correctional control, compared with one in 27 Latinos (3.7 percent) and one in 45 whites (2.2 percent).
Note: Crime is down 25%, yet prison spending is 400% of what it was 20 years ago. Is there anything strange here? The prison-industrial complex is mighty big and in many ways mighty corrupt.
The U.S. economy is in free fall, the banking system is in a state of complete collapse and Americans all across the country are downsizing their standards of living. The nation as we’ve known it is fading before our very eyes, but we’re still pouring billions of dollars into wars in Afghanistan and Iraq with missions we are still unable to define. Even as the U.S. begins plans to reduce troop commitments in Iraq, it is sending thousands of additional troops into Afghanistan. The strategic purpose of this escalation, as Defense Secretary Robert Gates acknowledged, is not at all clear. We invaded Afghanistan more than seven years ago. We don’t even have an escalation strategy, much less an exit strategy. An honest assessment of the situation ... would lead inexorably to such terms as fiasco and quagmire. Instead of cutting our losses, we appear to be doubling down. As for Iraq, President Obama announced last week that substantial troop withdrawals will take place over the next year and a half and that U.S. combat operations would cease by the end of August 2010. But, he said, a large contingent of American troops, perhaps as many as 50,000, would still remain in Iraq for a “period of transition.” That’s a large number of troops, and the cost of keeping them there will be huge. I can easily imagine a scenario in which Afghanistan and Iraq both heat up and the U.S., caught in an extended economic disaster at home, undermines its fragile recovery efforts in the same way that societies have undermined themselves since the dawn of time — with endless warfare.
Note: The strategic purpose of keeping the wars going is well known by the bankers and power elite. A top U.S. general revealed it all in a powerful book, of which we have a two-page summary available here. For revealing reports from reliable sources on the realities of the Iraq and Afghan wars, click here.
Public pension funds across the U.S. are hiding the size of a crisis that’s been looming for years. Retirement plans play accounting games with numbers, giving the illusion that the funds are healthy. The paper alchemy gives governors and legislators the easy choice to contribute too little or nothing to the funds, year after year. The misleading numbers posted by retirement fund administrators help mask this reality: Public pensions in the U.S. had total liabilities of $2.9 trillion as of Dec. 16, according to the Center for Retirement Research at Boston College. Their total assets are about 30 percent less than that, at $2 trillion. With stock market losses this year, public pensions in the U.S. are now underfunded by more than $1 trillion. That lack of funds explains why dozens of retirement plans in the U.S. have issued more than $50 billion in pension obligation bonds during the past 25 years -- more than half of them since 1997 -- public records show. The quick fix for pension funds becomes a future albatross for taxpayers. The public gets nothing from pension bonds -- other than a chance to at least temporarily avoid paying for higher pension fund contributions. Pension bonds portend the possibility of steep tax increases. By law, states must guarantee public pension fund debts. “What appears to be a riskless strategy is actually very risky,” says David Zion, director of accounting research for New York-based Credit Suisse Holdings USA Inc. “If the returns on the pension bond-financed assets don’t exceed the cost of servicing the debt, the taxpayers bear the brunt.”
Note: The risks to pension funds may require yet another huge public bailout. Where will the money come from? For lots more on the realities of the Wall Street bailout, click here.
Supertankers that once raced around the world to satisfy an unquenchable thirst for oil are now parked offshore, fully loaded, anchors down, their crews killing time. In the United States, vast storage farms for oil are almost out of room. As demand for crude has plummeted, the world suddenly finds itself awash in oil that has nowhere to go. It’s been less than a year since oil prices hit record highs. But now producers and traders are struggling with the new reality: The world wants less oil, not more. And turning off the spigot is about as easy as turning around one of those tankers. So oil companies and investors are stashing crude, waiting for demand to rise and the bear market to end so they can turn a profit later. Meanwhile, oil-producing countries such as Iran have pumped millions of barrels of their own crude into idle tankers, effectively taking crude off the market to halt declining prices that are devastating their economies. Traders have always played a game of store and sell, bringing oil to market when it can fetch the best price. They say this time is different because of how fast the bottom fell out of the oil market. “Nobody expected this,” said Antoine Halff, an analyst with Newedge. “The majority of people out there thought the market would keep rising to $200, even $250, a barrel. They were tripping over each other to pick a higher forecast.” Now the strategy is storage. Anyone who can buy cheap oil and store it might be able to sell it at a premium later, when the global economy ramps up again.
Important Note: Explore our full index to key excerpts of revealing major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.