Monthly Archives: January 2010

Roubini Says US Economy is Not Out of the Woods

America don’t shout Alleluia just yet. Economy numbers are misleading. New York University Professor Nouriel Roubini nick-named Dr. Doom says fourth quarter growth is misleading.  Roubini says growth “very dismal and poor” because growth  which supplanted by government spending and incentives.

“The headline number will look large and big, but actually when you dissect it, it’s very dismal and poor,” Roubini told Bloomberg Television in an interview at the World Economic Forum’s annual meeting in Davos, Switzerland. “I think we are in trouble.”

Roubini says as incentives from the stimulus expires growth will slow down from 5.7% to a depressing 1.5%.

He says US economy will not fall into recession it will feel like it as unemployment will climb above 1o %.

“It’s going to feel like a recession even if technically we’re not going to be in a recession,” he said.

Bloomberg News

Gallup Finds Obama Numbers Evenly Split at 47%

Days after President Obama’s State of the Union Address the latest Gallup Inc poll finds the American people is evenly split at 47% approve and 47% disapprove. Based on a three-day average.

Many commentators found the speech angry and defiant. Most thought the president would be more conciliatory  and interpretive. The main theme of the message jobs, jobs and more jobs. He announced a jobs bill that would contain tax credits for hiring workers and breaks for buying new equipment.

Republican say the plans don’t go far enough. They want president keep the Bush tax cuts that expire in 2011 to stay indefinitely

Gallup

President Obama Finally Meet the Republicans on Their Turf

Nearly nine months ago President Obama has his first and only meeting with members of the GOP and he was hostile and unreceptive. On Friday it was more of the same. The president invited to the 2010 House of Representatives Republican Retreat in Baltimore.

Reuters has more.

The Recession is Officially Over

Very Good news for the US Economy and The Obama Administration the recession is over.  The economy grew at 5.7 percent in the 4th quarter  a rate larger and faster than expected. The growth however is unsustainable. Unemployment at 10 %. Consumer spending is very weak.

Many analysts predict gross domestic product will expand at a rate closer to 2.5 to 3 percent in the current quarter and 2.5 percent or less for the year.

Roughly two-thirds of the quarter’s growth came from increased manufacturing as businesses drew down their stockpiles of goods at a slower rate. But companies will eventually let those inventories fall again unless consumers — who account for about 70 percent of the economy — spend more.

Unlike past rebounds driven by the spending of ordinary shoppers, this one appears to hinge on spending by businesses, foreigners and — until it runs out — government stimulus.

To drive down the jobless rate by just 1 percentage point this year, the economy would have to grow by 5 percent for the whole year. No one thinks that will happen.

AP via Yahoo Finance

Seven Banks Are Shut Down by the FDIC

Seven banks across the country closed by Federal Deposit Insurance Corporation Friday. The banks closed and sold off because the banks were not  financially sound. The banks did not meet capital requirements.

First Regional Bank, in Los Angeles closed. The bank had $2.2 billion assets and $1.9 billion in deposits. First Regional has 10 branches and 3 specialty offices. The branches will reopen as branches of First Citizens Bank and Trust based in Raleigh,NC. In 2009 First Citizens bought failed Temecula Valley Bank.

First National Bank based in Carrollton,GA in suburban Atlanta was shut down regulators on Friday. Community and Southern Bank a newly charter bank acquires the assets of First National Bank . The 11 banks branches re-open as community and Southern Bank  a bank chartered to buy failed banks.

A second Georgia bank Community Bank and Trust,Cornelia. The bank had $1.2 billion in assets and $1.1 billion in deposits; Community Bank and Trust had 36 branches in west and northwest Georgia and Eastern Alabama. The bank has been sold to SCBT the parent company of South Carolina Bank and Trust based in Columbia.

Florida Community Bank of Immokalee, Fla., with $875.5 million in assets and $795.5 million in deposits; Marshall Bank of Hallock, Minn., with $59.9 million in assets and $54.7 million in deposits; and American Marine Bank of Bainbridge Island, Wash., with $373.2 million in assets and $308.5 million in deposits.

Florida Community Bank was sold to Premier American Bank and  open as branches of Preimer American.

Marshall Bank sold to United Valley Bank, based in Cavalier, N.D.,

Columbia State Bank, based in Tacoma, Wash., is assuming the assets and deposits of American Marine Bank.

Yahoo Finance News

Los Angeles Times

WXIA-TV “11 Alive News”

America’s Fastest Growing Cities of 2010

As the recession is officially is over  business Week magazine has listed five fastest growing cities in the US.  The survey by Gadberry Group of Little Rock,AR.  Gadberry Group criteria including areas larger than 10,000 occupied households that met requirements for growth rate, household income, length of residence, and other factors.

Here are top five of the fastest growing cities in  America:

Fastest Growing Cities by State

Arizona: Buckeye
Number of households: 18,112
Pct. Chg: +10% since 2008 (+261% since 2000)
Average household income: $52,927 (–6% since 2000)

Why: Buckeye is one of the fastest-growing suburbs in Arizona and has seen a large influx of Asian residents, especially Vietnamese, according to Gadberry. While many new housing units are planned, the price of real estate in Buckeye has dropped nearly 12% since 2008, according to Trulia, and thousands of properties are in the foreclosure process.

California: Lincoln
Number of households: 21,997
Pct. Chg: +10% since 2008 (+250% since 2000)
Average household income: $90,608 (+16% since 2000)
Why: Lincoln, a suburban development 30 miles from Sacramento, is the fastest-growing suburb of California and the third fastest-growing town in the U.S. New office buildings, shopping centers, housing developments, and custom home properties have gone up in recent years as a part of the local development plan, according to ZipRealty.

Georgia: Braselton
Number of households: 13,929
Pct. Chg: +8% since 2008 (+118% since 2000)
Average household income: $113,664 (+67% since 2000)
Why: Gadberry Group noted Braselton, a suburb of Atlanta, as a remarkable high-growth area due to increases not only in population, but also average income and average household net worth ($532,628). Companies operating here such as Sears Logistics, Tractor Supply, Mitsubishi, and Progressive Lighting have helped to generate jobs.

Indiana: Avon
Number of households: 11,521
Pct. Chg: +8% since 2008 (+73% since 2000)
Average household income: $97,355 (+35% since 2000)
Why: Avon has experienced rapid growth since the 1990s due to its convenient location 10 miles from Indianapolis, where health care, social services, and education are the leading industries, according to Simply Hired.

Iowa: Urbandale
Number of households: 16,402
Pct. Chg: +8% since 2008 (+44% since 2000)
Average household income: $93,655 (+12% since 2000)
Why: Urbandale, within an hour’s drive from Kansas City and Minneapolis, has a lower unemployment rate than the national average. The insurance and finance industries are major employers.

Some of the communities on the list have been hardest by housing crisis including Summerlin South community in the Las Vegas metro area,and Ft. Mill,SC in the Charlotte,NC area.

“If you live by migration, you also die by migration,” says Kenneth Johnson, senior demographer at the University of New Hampshire’s Carsey Institute. “It doesn’t guarantee continued growth.”

Yahoo Business

Business Week

Oregonians Pass Major Tax Increases

While California rebelled against the politicians tax increases, their friends in Oregon have passed major tax increases which will send jobs to Washington, Idaho, Utah, Colorado, Texas and Lower cost of living will go up.

Measure 66 and 67 has passed handily. Supporters calls it Tax fairness .Critics says jobs will go away. Measure 66 was ahead 54 to 46 percent. Measure 66 raise a 2 percent on people earning $250,000 and higher.  Measure 67  raises the corporate income tax from $10 to $150  if your business shows a loss.

Supporters excited about the win.
“We’re absolutely ecstatic,” said Hanna Vandering, a physical education teacher from Beaverton and vice president of the statewide teachers union. “What Oregonians said today is they believe in public education and vital services.”

Critics were disappointed  to say the least.

“It’s disappointing and discouraging,” said Pat McCormick, spokesman for Oregonians Against Job-Killing Taxes. “The tone and tenor was often venomous, trying to pit the haves against the have-nots.”

He said the business community now must figure out “how to participate in a system that’s largely disconnected from us.”

Supporters says the will close a $725 budget shortfall.

Oregonian

President Obama State of Union Speech will focus on New Ideas

On Wednesday, President Obama 1st  State of The Union address will focus on the Accomplishments include the so-called Save or Created Jobs. The Job were mainly  government posts and bailout, local governments, cities, towns, counties; states  and schools.  Despite private sector unemployment  at 10% he will claim 2 million jobs.

The President will make several recommendations including doubling the child tax credit, tax credits for small businesses and a spending spree.

US Senator Chuck Schumer defends the President  and point out he making to change to focus on jobs and the economy.

“The middle class feels beleaguered, and I think the message of Massachusetts, which I believe the president is now heeding, was pay attention to our plight. We’re not as worried about changing the health care system as we are about getting by week to week,” Sen. Charles Schumer said.

This will show the American People he gets it and he will focus on the middle class.

However, Republicans  are not buying it. President’s war on banks has hit the middle class in the New York Metropolitan  area.

“No, I don’t see any real relief coming from Barack Obama to the middle class. I think he is still on a very liberal agenda. He’s mouthing some words which maybe will play in some states but his policies are devastating to New York,” Rep. Peter King said.

King is calling on Obama for an cost of living adjustment on federal taxes   because the New York City area is expensive.

“If he’s serious about the middle class there should be an allocation or adjustment made for people living in a high-income area, high-expense area, high cost of living area,” the Republican from Long Island said.

All eyes are on the State of the Union, Will he hit a home run? Or will bunt or or Strike out we will see.

WCBS-HDTV “CBS 2 NEWS”

Ellie Light: President Obama’s SuperFan

Last Week  a letter to editor of over a dozens of Newspapers causes a firestorm of controversy. Not for what the letter said but who is the letter from  and is the writer real  and why is it sent to a variety of small to large size  markets across the country.

Who is Ellie Light is a mystery. Since the beginning of January she has sent letters of support for President Obama to a dozen of newspapers in the country.

In the letter Light, takes on the Presidents critics:

A year ago, if we had read in the paper that employers were hiring again, that health care legislation was proceeding without a bump, that Afghanistan suddenly became a nice place to take your kids, we would’ve known we were being lied to. Back then, we recognized that the problems Obama inherited as president wouldn’t go away overnight.

During his campaign, Obama clearly said that an economy that took eight years to break couldn’t be fixed in a year, that Afghanistan was a graveyard of empires and would not be an easy venture for us. Candidate Obama didn’t feed us happy talk, which is why we elected him. He never said America could solve our health care, economic and security problems without raising the deficit. Instead, he talked of hard choices, of government taking painful and contentious first steps towards fixing problems that can’t be left for another day.

Right after Obama’s election, we seemed to grasp this. We understood that companies would be happy to squeeze more work out of frightened employees, and would be slow to hire more. We understood that the banks that had extorted us out of billions of dollars, were lying when they said they would share their recovery. We understood that a national consensus on health care would not come easily. Candidate Obama never claimed that his proposed solutions would work flawlessly right out of the box, and we respected him for that.

But today, the president is being attacked as if he were a salesman who promised us that our problems would wash off in the morning. He never made such a promise. It’s time for Americans to realize that governing is hard work, and that a president can’t just wave a magic wand and fix everything.

The letters initially seem like a coincidence except if the letter has an address; example  A few letters sent national news organizations Like The Politico,  USA Today, Yahoo News Buzz, and Washington Times as well of local paper Daily Breeze based in Torrance,CA  signed Ellie Light in Long Beach,CA

Most letters sent papers with a local address: Huntsville Times  Huntsville,AL  Huntsville,Al is address. Or a letter with a nearby address Stamford Advocate local address Greenwich,CT.

A blogger/ columnist for the Cleveland Plain-Dealer Sabrina Eaton discovered that Ellie Light seems to live all over the place not only her paper, she found the letters was sent from different addresses She the letter from the Philadelphia Daily News and  the letter found later in the San Francisco Examiner  for Eaton bells went off. She continued searching Mansfield OH News Journal, Ruidoso,NM News with an address of Three Rivers. Next was the Myrtle Beach,SC Sun News with Myrtle Beach Address (this letter was reprinted in have a half-dozen newspapers across the country.

Soon after Los Angeles Attorney and blogger Patterico’s Pontifications discovered more letter from Ellie Light “and syndicated Columnist and blogger Michelle Malkin  also did some digging.

Eaton wrote to Light  about the alleged letters with a different addresses (or hometown listed)Light would not answer questions about letters with different addresses or a former co-worker similar name as Light.

“I do not write as a representative of any organization,” she said in an e-mail. “The letter I wrote was motivated by surprise and wonderment at the absence of any media support for our President, who won a record-breaking election by a landslide less than 18 months ago, and now, seems to be abandoned by all, supposedly for the infantile reason that he couldn’t make all of Bush’s errors disappear in one day.”

Patterico asked his readers about the letters and send him  a link. He also points out that Democrat blogger Glenn Greenwald  notices the Obama staffer Cass Sunstein head of the Office of Information and Regulatory Affairs suggested government infiltration in chat rooms and social network to get point across supporting Obama’s plans.

Sunstein advocates that the Government’s stealth infiltration should be accomplished by sending covert agents into “chat rooms, online social networks, or even real-space groups.” He also proposes that the Government make secret payments to so-called “independent” credible voices to bolster the Government’s messaging (on the ground that those who don’t believe government sources will be more inclined to listen to those who appear independent while secretly acting on behalf of the Government).

You have to wonder is this what House Speaker Nancy Pelosi meant about astroturf(ing) in here criticisms about tea party members.

Reprint from Ben Smith/The Politico

Cleveland Plain-Dealer

Michelle Malkin

Patterico’s Pontifications

Iranian Offical Call President Obama the “N-word”

So much for bowing and scraping to dictators. An Iranian Official uses the Farsi language equivalent of the “N-word” in reference to President Obama. Mohammad Javad Larijani used the derogatory word in a speech  critical of the President. PBS reports

“When Barack Obama was sworn into office he talked of verbally engaging Iran,” the U.C. Berkeley graduate was quoted as saying. “What has changed is that today this [the equivalent of the N-word in Farsi] talks of regime change in Iran.”

In a Saturday meeting at the Islamic Engineers Society, Larijani said, “I am not a racist, but I must respond to this man [Obama] in some way.”

Larijani’s brother, Ali, is the speaker of Majles (Parliament). Another brother, Sadegh, is head of the judiciary.

WOW! How’s that for “Hope and Change!”

Mr. President you cant talk to everybody. Iran absolutely want noting to do with us. By the way you barely did anything in regarding to people who want to overthrow the current regime. So much for freedom.

PBS

H/T: Jim Hoft  Gateway Pundit