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Monday Morning Business Update

And Late Breaking News.

From Yahoo News Business

1 Source: AIG to get up to $30B more in Fed aid

By IEVA M. AUGSTUMS, AP Business Writer

1 hr 11 mins ago

CHARLOTTE, N.C. – Struggling insurer American International Group Inc. will receive up to $30 billion in additional federal assistance in the fourth government rescue of the company, a person familiar with the matter told The Associated Press on Sunday.

The new infusion is intended to prop up AIG – once the world’s largest insurer – as it is expected to announce $60 billion in quarterly losses early Monday, the source said on the condition of anonymity because the discussions are still ongoing.

The company, which is considered too large to fail, previously received about $150 billion in loans from the government, which now has an 80 percent stake in the company.

Weekend News Digest

Weekend News Digest is an Open Thread

From Yahoo News Top Stories

1 States’ budget woes will outlast the recession

By MICHAEL HILL, Associated Press Writer

42 mins ago

Even after $135 billion in federal aid gets spent, many states will be staring down budgetary black holes unless they initiate dramatic spending cuts or tax increases, or both.

In the short-term, the massive stimulus will help balance budgets and keep key services, such as Medicaid, going. But economists agree the money will not quickly eradicate high unemployment, low consumer spending or distress in the housing market – the triple threats behind a nationwide tax-collection shortfall that is expected to drag on even after the economy begins to rebound.

Without higher taxes, bigger cuts to government services – or yet more federal funding – states face budget gaps that could reach $120 billion nationwide in their 2011 budgets, according to an analyst at the Rockefeller Institute, a think tank in Albany, N.Y. James Diffley, managing director of Global Insight’s U.S. Regional Services Group, says it’s unlikely budget gaps will close before 2013.

Now with U.S. News and Politics.

Weekend News Digest

Weekend News Digest is an Open Thread

From Yahoo News Top Stories

1 Leaving Iraq: Shift to south, exit through desert

By CHELSEA J. CARTER, Associated Press Writer

1 hr 19 mins ago

BAGHDAD – The U.S. military map in Iraq in early 2010: Marines are leaving the western desert, Army units are in the former British zone in the south and the overall mission is coalescing around air and logistics hubs in central and northern Iraq.

Meanwhile, commanders will be shifting their attention to helping Iraqi forces take full control of their own security.

The Pentagon has not released the full details of President Barack Obama’s plan to end America’s combat role in Iraq by Aug. 31 of next year, but the broad contours are taking shape.

Now with World and U.S. News.

The Stars Hollow Gazette

So yesterday I mentioned that I life guarded at the most dangerous natural swimming hole in town.  I should temper that by saying that in mumblety-mumble years of life guarding I can only recall 2 times when any sort of rescue demanded my attention at all, both at a world class ultra modern Olympic caliber pool.

The first one scared the crap out of me.  A little kid, about 6 or 7 was screwing around on the lip of the pool and had one leg slip into the gutter and fell down.  I was sure I’d be dealing with a broken leg if not teeth sprayed out like Chiclets and a concussion.  Kid bounced up almost before I could get to him, giggled, and ran back to his mom.

Hey!  No running on deck!

The other time I was in the chair when some poor kids came in.  I know they were poor because one of them couldn’t afford a bathing suit, only a t-shirt and a bathing cap.  None of them could swim very well but they were staying by the side of the pool and not in any danger that I could see when my supervisor dove in and “rescued” the one with the t-shirt.

Personally I think it was simply for swimming while poor.

And if you happen to think that was icky you never had to deal with the severely learning disabled kids crapping their suits during lessons.  What the hell do you think the chlorine is for?

I haven’t quite gotten to my dangerous swimming hole yet but it will have to wait for another installment while I leave you with this story-

I once worked an outdoor pool in a park where, when people weren’t trying to climb the razor wire after dark, the drunks would amuse themselves by tossing their beer bottles over it so that they would shatter on the edge of the deck and spray the broken glass in the bottom.  The Budweiser and Heineken weren’t so bad, but you really had to look out for the Miller.

The Stars Hollow Gazette

When I was younger I used to go to camp in the summer.

It was a sleep over camp and as you got older your living conditions got progressively more primitive.  It’s kind of creepy to think about living in a hut with only 3 walls.  I suppose actually it was so they could keep closer track of us.

There were all kinds of activities you could pick and choose from, like Arts and Crafts (enamel work is kind of fun) and Tennis (I suck).  Being a swimmer of some accomplishment I gravitated toward waterfront activities like Boating (Row Boats), Canoeing, and Sailing (Sunfish).

My first boating experience was not very successful.  I drew the one with open oarlocks and having no clue on how to work them the oars kept popping out.  I’d call it a cruel joke on the counselor’s part except that they were pretty much given out on a first come first served basis.

The most desirable ones in my eyes were the open ones with pins through the oars because I didn’t like bothering with feathering.  As I got into the advanced classes of course I had to demonstrate my mastery of the technique, but to this day I prefer the pinned ones if only for the fact that you don’t have to deal with the locks slipping down to the blade.

Likewise the Sunfish were tricky too.  The lake was pretty much in a bowl and when you got in the lee of the hills and trees there was no telling which direction the wind would come from and you’d usually end up rowing yourself out with the tiller.  One amenity they had that I missed later in life with my family’s own Sailfish was a beach to run the boat up on when you were done so you could stay dry (unless you capsized of course).  We don’t have much of a beach at the Lake House so we have to moor the boat.  You swim or you don’t sail.

I also took some of the advanced swimming courses like snorkeling.  The big payoff for successfully completing that is they had a surface compressor with a face mask and tube that would let you go about as deep as the lake got.  I never really got a chance to use it though, the mask didn’t fit me very well and I couldn’t deal with the water pouring in from the sides.

Another thing I never did was the Gold swim.  If you were a good enough swimmer that they didn’t need to worry about you much you got a green tag to put up on the buddy board, but if you were especially ambitious several times a summer they’d take you out to a big sloping rock at one end of the lake and have you swim behind a Row Boat out to a stripe they had painted on a cliff face about a mile away.  If you made it you got a Gold tag.

Special huh?

Monster swimmers would go for double and triple Gold (not nearly as cool because all you got was a white tag with a 2 or a 3 on it), but I never tried it at all even though I’d do swim practices in the winter that were up to 10 miles long when our coach was feeling particularly sadistic after we lost a meet.

I’ve just never liked swimming in open water that much.  The darkness of it and not being able to see the bottom gives me the sensation of falling and I have terrible acrophobia.  It’s kind of odd than when I was life guarding I’d get assigned to the most dangerous of the two natural water parks in town instead of any of the 5 pools.  Oh well, at least I could shack up with my girl friend after work.

Wednesday Morning Science Supplement

Wednesday Morning Science Supplement is an Open Thread

From Yahoo News Science

1 NASA rocket failure blow to Earth watching network

By SETH BORENSTEIN, AP Science Writer

Tue Feb 24, 7:23 pm ET

WASHINGTON – A new satellite to track the chief culprit in global warming crashed into the ocean near Antarctica after launch Tuesday, dealing a major setback to NASA’s already weak network for monitoring Earth and its environment from above.

The $280 million mission was designed to answer one of the biggest question marks of global warming: What happens to the greenhouse gas carbon dioxide spewed by the burning of coal, oil and natural gas? How much of it is sucked up and stored by plants, soil and oceans and how much is left to trap heat on Earth, worsening global warming?

“It’s definitely a setback. We were already well behind,” said Neal Lane, science adviser during former President Bill Clinton’s administration. “The program was weak and now it’s really weak.”

David Brooks- Concern Troll

The New York Times, February 23, 2009

I worry that we’re operating far beyond our economic knowledge. Every time the administration releases an initiative, I read 20 different economists with 20 different opinions. I worry that we lack the political structures to regain fiscal control. Deficits are exploding, and the president clearly wants to restrain them. But there’s no evidence that Democrats and Republicans in Congress have the courage or the mutual trust required to share the blame when taxes have to rise and benefits have to be cut.

All in all, I can see why the markets are nervous and dropping. And it’s also clear that we’re on the cusp of the biggest political experiment of our lifetimes. If Obama is mostly successful, then the epistemological skepticism natural to conservatives will have been discredited. We will know that highly trained government experts are capable of quickly designing and executing top-down transformational change. If they mostly fail, then liberalism will suffer a grievous blow, and conservatives will be called upon to restore order and sanity.

It’ll be interesting to see who’s right. But I can’t even root for my own vindication. The costs are too high. I have to go to the keyboard each morning hoping Barack Obama is going to prove me wrong.

So why does this guy still have a job anyway?

In a move of breathtaking and remarkable callousness even for a soulless greed driven banker, JP Morgan announced yesterday that it was slashing it’s dividend 87% from 38 cents to a nickle a share-

JPMorgan slashes dividend

By Jonathan Stempel, Reuters

Tue Feb 24, 2009 4:15am EST

NEW YORK (Reuters) – JPMorgan Chase & Co (JPM.N), the second-largest U.S. bank, slashed its common stock dividend 87 percent on Monday, a surprise move by a lender considered among the strongest in the U.S. financial sector.

The bank also said it has been “solidly profitable” this quarter, and that the outlook for the three-month period is “roughly in line” with analyst forecasts. Shares rose 5.5 percent in after-hours trading.

JPMorgan said its decision to lower its quarterly dividend to 5 cents per share from 38 cents will save $5 billion of common equity a year. It hopes the lowered payout will help it pay back the $25 billion of capital it got in October from the government’s Troubled Asset Relief Program faster.

So why do you think Jamie Dimon is so anxious to pay back the TARP Funds?  Out of a sense of patriotism and the goodness of his heart?

Maybe it has something to do with this-

Geithner May Have Little Leeway on Executive Compensation Rules

By Matthew Benjamin, Bloomberg

February 20, 2009

Treasury Secretary Timothy Geithner and his staff will have little leeway to dilute the executive pay rules enacted by Congress for banks getting U.S. government aid, according to legislative and compensation analysts.

The new rules force the top five executives at banks receiving at least $500 million from the Troubled Asset Relief Program — such as JPMorgan Chase & Co. and Goldman Sachs Group Inc. — and the 20 most highly paid employees at those firms, to forgo cash bonuses. Incentive pay will be limited to stock that is restricted until bailout funds are repaid. The language went beyond guidelines the Treasury previously issued for future recipients of “exceptional” aid.

Jamie Dimon is willing to shaft his shareholders so he and his fellow parasites can keep sucking down their obscene salaries.

Monday Morning Business Update

From Yahoo News Business

1 U.S. seeking up to 40 percent stake in Citigroup: report

Reuters

19 mins ago

HONG KONG (Reuters) – The U.S. government may end up holding as much as 40 percent of Citigroup’s common stock, the Wall Street Journal reported on its website, citing sources familiar with the plans.

But Citigroup executives hope the talks with U.S. federal officials will result in a stake closer to 25 percent, the Journal reported.

The lender is discussing with U.S. officials a scenario in which a substantial portion of the $45 billion in preferred shares held by the U.S. government, amounting to a 7.8 percent stake in Citigroup, would convert into common stock, the newspaper said.

With Bonus Late Breaking News.

Weekend News Digest

Weekend News Digest is an Open Thread

From Yahoo News Top Stories

1 EU leaders back sweeping financial regulations

By PATRICK McGROARTY, Associated Press Writer

1 hr 6 mins ago

BERLIN – European leaders backed sweeping new regulations for financial markets and hedge funds at a summit Sunday in Berlin as politicians and nations scrambled to tame the global economic crisis.

German Chancellor Angela Merkel hosted heads of state and finance ministers from Europe’s largest economies to try to establish a common European position on economic reforms before an April 2 summit of the Group of 20 nations.

“All financial markets, products and participants including hedge funds and other private pools of capital which may pose a systematic risk must be subjected to appropriate oversight or regulation,” Merkel said in a statement released on behalf of the summit members, following the talks.

Everything except Business and Late Breaking News.

Weekend News Digest

Weekend News Digest is an Open Thread

From Yahoo News Top Stories

1 US finds 13 civilians died in Afghanistan strike

By JASON STRAZIUSO, Associated Press Writer

1 hr 7 mins ago

KABUL – An operation the American military at first described as a “precision strike” instead killed 13 Afghan civilians and only three militants, the U.S. said Saturday, three days after sending a general to the site to investigate.

Civilian casualties have been a huge source of friction between the U.S. and Afghan President Hamid Karzai, who has stepped up demands that U.S. and NATO operations kill no civilians and that Afghan soldiers take part in missions to help prevent unwanted deaths.

A U.S. military statement said the decision to dispatch a general to the western province of Herat to investigate shows how seriously the U.S. takes civilian casualties. The U.S. rarely releases the findings of civilian casualty investigations, and the disclosure this time could show the effect of Karzai’s criticisms.

Final Edition.

News Special

an Open Thread

From Yahoo News Top Stories

1 Dow ends at lowest close in more than 6 years

By TIM PARADIS, AP Business Writer

40 mins ago

NEW YORK – An important psychological barrier gave way on Wall Street Thursday as the Dow Jones industrials fell to their lowest level in more than six years.

The Dow broke through a bottom reached in November, pulled down by a steep drop in key financial shares. It was the lowest close for the Dow since Oct. 9, 2002, when the last bear market bottomed out.

The blue chips’ latest slide dashed hopes that the doldrums of November would mark the ending point of a long slump in the market, which is now nearly halfway below the peak levels reached in October 2007.

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