Tuesday’s Mini-Report

Today’s edition of quick hits.

* Market watching today, as you might imagine, was not for the faint of heart: “Stocks ended lower, but off the worst levels of the session as worries about a global economic slowdown eased and investors continued to sort through the implications of the Fed’s emergency interest-rate cut. The Dow Jones industrial average lost about 1 percent, recovering from bigger losses during the session. The blue-chip barometer opened the session down by more than 450 points. The broader S&P 500 index gave up 1.1 percent and the Nasdaq composite lost 2 percent, recovering from larger losses. The Russell 2000 small-cap index ended just 0.2 percent lower. The Russell is considered to be in a bear market, having tumbled more than 20 percent off its highs from last summer. Treasury prices rallied, lowering the corresponding yields as investors bet on the comparative safety of government debt. Oil prices fell and gold prices climbed.”

* On a related note, McClatchy has a nicely-done Q&A: “With the market dropping, the economy softening and prices spiking, it’s an unsettling time for most Americans. Here are some answers to key questions consumers face.”

* Bloodshed in Baghdad: “A suicide bomber pushing an electric heater atop a cart packed with hidden explosives attacked a high school north of Baghdad on Tuesday, leaving students and teachers bloodied and bewildered as insurgents appeared to be expanding their list of targets. The bombing — one of two attacks near Iraqi schools on the same day — follows a wave of recent blasts blamed on al-Qaida in Iraq against funerals and social gatherings.”

* AP: “Jose Padilla, once accused of plotting with al-Qaida to blow up a radioactive “dirty bomb,” was sentenced Tuesday to 17 years and four months on terrorism conspiracy charges that don’t mention those initial allegations. The sentence imposed by U.S. District Judge Marcia Cooke marks another step in the extraordinary personal and legal odyssey for the 37-year-old Muslim convert, a U.S. citizen who was held for 3 1/2 years as an enemy combatant after his 2002 arrest amid the “dirty bomb” allegations. Prosecutors had sought a life sentence, but Cook said she arrived at the 17-year sentence after considering the ‘harsh conditions’ during Padilla’s lengthy military detention at a Navy brig in South Carolina.”

* What’s the latest on FISA and retroactive immunity for the telecoms? Paul Kiel has an update: “When [Senate Majority Leader Harry Reid] tried to get a thirty-day extension to that date last month, Republicans blocked it. So this morning he said on the Senate floor that he’d try again. The time pressures are real, he said, and suggested that even if the Senate were to somehow pass a bill, it would be mighty difficult to get it through the House and to the president’s desk before February 1st. The Senate itself will be a high hurdle, with Sen. Chris Dodd (D-CT) filibustering over a retroactive immunity provision on the one hand and Sen. Kit Bond (R-MO) saying that the authority for warrantless wiretapping stems from the Constitution on the other.”

* This wasn’t supposed to happen: “From the blast and the high, thin plume of white smoke above the tree line, it looked and sounded like any other attack. The bare details were, sadly, routine enough: a gunner was killed and three crew members were wounded Saturday when their vehicle rolled over a homemade bomb buried beneath a road southeast of Baghdad. Yet, it was anything but routine. Over a crackling field radio came reports of injuries and then, sometime later, official confirmation of the first fatality inflicted by a roadside bomb on an MRAP, the new Mine-Resistant Ambush-Protected armored vehicle that the American military is counting on to reduce casualties from roadside bombs in Iraq.”

* The WaPo had a great piece today on the Bush White House’s email archive system, or lack thereof, but here’s a good summary of the piece: “[T]he Clinton administration, after getting into trouble over losing some White House emails, had a perfectly good system in place by the end of its term. But the Bushies threw that out the window for no apparent reason when they came in and didn’t put anything in its place. Whether deviousness or incompetence is to blame is unclear.”

* The purge scandal isn’t on the front page anymore, but it’s still percolating and several sources said the controversy may yet have an impact on November congressional elections: “Washington’s attention has been diverted from the scandal since the August resignation of Alberto Gonzales as attorney general, and has focused instead on Democrats’ efforts to hold White House officials in contempt for ignoring congressional subpoenas to testify on Capitol Hill about the firings. But recent behind-the-scenes activity in several investigations suggests that the issue that roiled Congress in 2007 could re-emerge in the heat of the election year. Two inquiries by the House and Senate ethics committees are examining whether several congressional Republicans, including one running for the Senate this year, improperly interfered with investigations.”

* The Oscar nominations were announced this morning, and while entertainment news really isn’t my kind of thing, I was pleased to see “No End in Sight” and “Sicko” get nominations.

* In related news, the writers and the studios are apparently getting ready to talk again.

* Jonathan Schwarz has an interesting, albeit counterintuitive, look at market fluctuations and Social Security privatization.

* And finally, Jay Leno had an amusing line: “In Saudi Arabia last week, President Bush was criticized for doing a little ceremonial dance with a sword given to him by the Saudi prince. A lot of people thought the President was pandering to the Saudis. To be fair, I don’t think the President was pandering. See, I think President Bush is truly fascinated by bright, shiny objects.”

Anything to add? Consider this an end-of-the-day open thread.

“Bernie” played a three-quarter-point rate cut to stem the market’s slide. It worked—the market recoiled from being down nearly 350 points to only being down about 100—and then people began to realize that short-term rate cuts don’t do squat for the housing market, so the market began slipping downward again late in the session. I await—with some measure of anticipation—to see what the Bu$h-Wah-Zee herd can pull out of its profit-speak rectal orifice tomorrow to stem the next session’s blood-letting

And the next day—and the next day—and the….

  • “Consider this an end-of-the-day open thread.”

    Even as passions run high, I think it’s worth remembering that this is CB’s blog, and as his guests we have an obligation to conduct ourselves accordingly. This is his workplace — and to the extent possible, I think we should follow his lead in trying to maintain a sense of decorum. That is, after all, what attracted many of us to this place, and keeps us coming back. One reader’s opinion, anyway…

  • The rate cut is merely a band-aid, as Bernacke well knows. He simply didn’t want to be on the hook for a Black Tuesday style bloodletting. (Which is understandable to some extent.) Markets will deflate a little slower at the price of dollar devaluation and increased consumer inflation.

    The market will unwind in dribs and drabs as the Fed and Bush and Paulson apply tourniquets and stimulus scams and assorted magic tricks to fool the general populace. Watch for adjustments in the way key indicators like inflation and unemployment are tallied — BushCo. loves to cook the books, and hell, this is as good a time as any to pull out the stops.

  • On the open thread note, glad to see this is what our men and women are fighting to protect and sustain in Afghanistan:

    An Afghan court on Tuesday sentenced a 23-year-old journalism student to death for distributing a paper he printed off the Internet that three judges said violated the tenets of Islam, an official said

    If there are people there responsible for 9/11, lets get them and be done with it. But we should not be spending our blood and treasure to support/maintain/establish/whatever the hell we are still doing there a country where printing an article from the Internet is punishable by death.

  • In related news, the writers and the studios are apparently getting ready to talk again.

    For those who might want to understand why I am not entirely overjoyed at this news, I will refer you to Bob Elisberg’s article at The Huffington Post:

    http://www.huffingtonpost.com/robert-j-elisberg/wga-strike-primer-looki_b_82366.html

    Unfortunately, this is starting to look a whole lot like the DGA sellout of the WGA on the issue of home video residuals in 1985 – which was supposed to be “revisited” in 3 years ut was totally ignored in 1988, which is why that strike went so long, and is directly the cause of this strike.

    Unfortunately, 80% of the membership of the DGA doesn’t have a dog in the fight over the issues we are striking over, so for them now – as in 1985 – voting to ignore those issues is a non-issue.

    Larry Gelbart is right that we shouldn’t be creating loopholes that can become nooses, and the 17 free days for rebroadcast on the net is a hole big enough to drive the Sixth Panzer Army through with room to spare.

  • Regarding the FISA legislation. I would rather see the thing rot in committee than let those bastard telecom companies get immunity for their complicity in illegal spying.

  • Heh, Zeitgeist, if it was up to some of the conservatives in America, printing something they perceived as anti-Bible would be punishable by death. Let’s hope those assholes get less and less of an audience as each day passes.

  • “Whether deviousness or incompetence is to blame is unclear.” – Is the WaPo really that stupid about this administration’s intentions when it comes to hiding what they’re doing?

    “Sen. Kit Bond (R-MO) saying that the authority for warrantless wiretapping stems from the Constitution on the other.” Spying on our fellow Americans without a warrant – just like the Framers of the Constitution wanted it.

    While our military keeps insisting that the solution to every problem is more complex and expensive technology, over in Iraq those attacking US forces keep finding relatively simple and inexpensive ways to counter our big bucks armaments. In the battle between our minds and their minds, they are winning. It’s time for a new strategy. Giving them no more US soldiers to kill would be a good one.

  • So the “Protect America Act” expires on Feb. 1. Why would it be a bad thing if it expires?

    We know now that telecom companies were not acting out of a misguided sense of patriotism when they cooperated with Bush and Cheney in their illegal surveillance scheme. It was all about the extra contracts the government would throw them in exchange, as well as the revenue from the taps themselves. Immunity for these crooks would be a travesty.

  • In the battle between our minds and their minds, they are winning. It’s time for a new strategy. Giving them no more US soldiers to kill would be a good one.

    I’ve read about at least two or three big-bucks weapons projects that suffered, or almost suffered, a drop in military effectiveness due to weapons execs and their Pentagon honcho relatives / golf partners / whatevr trying to wrangle a way to throw more cash at the execs. So it probably is more like their minds versus our minds versus our greedy plutocrats’ minds- not too different from anything else in American politics, I’m afraid.

  • Regarding FISA and telecom immunity, the ACLU just released a poll indicating:

    Sixty-three percent (63%) of voters favor requiring the government to obtain a warrant from a court before wiretapping Americans’ international conversations (55% strongly).

    Fifty-seven percent (57%) of voters reject immunity for phone companies that may have violated the law by selling customers’ private information to the government, preferring to let courts decide the outcome of any cases (45% strongly).

    Of course, the fact that the polling was conducted for the ACLU will immediately invalidate it in some circles. Whether that includes Ds in Congress remains to be seen.

  • The above mentioned McCatchy report mentioned: Consumer inflation last year was 4.1 percent — the highest in 17 years — and the economy faces the threat of recession, suggesting that fixed mortgage rates may rise rather than fall.

    Isn’t that interesting, anytime you have the Bush Administration clowns on TV, they never mentioned the bad news, it’s always the good news. I think that consumer inflation being the worst in 17 years, is bad news, not to mention that it was also a Republican President in office, when that occurred.

    Time for the Democratic candidates, to start attacking the Republican fairy tails instead of each other.

  • The economy is a bag of dogshit burning on the front porch. Bernanke just stomped on it. By lowering the rate below the rate of inflation he’s actually paying borrowers from the Fed to take the money.

    Devalued currency + more debt + flat wages + rising imports – what could go wrong?

  • Whether deviousness or incompetence is to blame is unclear.

    Does this comment refer to the email program, or to the entire administration?

  • US censors Arctic scientists’ findings as it prepares for oil and gas auction

    The United States has blocked the release of a landmark assessment of oil and gas activity in the Arctic as it prepares to sell off exploration licences for the frozen Chukchi Sea off Alaska, one of the last intact habitats of the polar bear.

    The long-awaited assessment was meant to bring together work by scientists in all eight Arctic nations to give an up-to-date picture of oil and gas exploitation in the high north. In addition to that it was supposed to give policy makers a clear set of recommendations on how to extract safely what are thought to be up to one quarter of the world’s energy reserves.

    Speaking yesterday from Tromso, one of the report’s lead authors, who asked not to be named, said: “They [the US] have blocked it. We have no executive summary and no plain language conclusions.”

  • Here’s the quote of the day: Chris Matthews at about 7:59. “Some people think it (the race) comes down to McCain and Romney, and Giuliani, just because he hasn’t been beaten yet, Giuliani.” His guest, Capehart (I think he’s from the Washington Post) replied, “I would agree.” You can’t beat that kind of in depth insight.

  • “Does this comment refer to the email program, or to the entire administration?”

    i know you know the answer to this 🙂

  • After x number of years of outsourcing our economy (our production and our jobs), and selling off major industries to other countries….it is going to take more than a little rebate or a lowering of the interest rate to make things ok again.

    1) We can no longer afford an Iraq occupation that is putting us in debt up to our collective noses unto the fifth generation.

    2) We can no longer afford CAFTA, NAFTA, etc. the way they stand.

    3) We need to rebuild our infrastructure, bring back some production with decent paying jobs and protect our own overseas sales with reasonable tarriffs on similar inports.

    4) We need to regulate those industries that have run amuck. Banking, Energy and most of all the Media which is vital to an informed public. Robber barons and monopolies do not share their money with America.

    5) And first and foremost we need to rid our government of corporate interference:
    Campaign Finance Reform and Instant Run off elections will go a long way to help in this area.

    6) We need honesty and intelligence at the helm.

  • Watch out if you go read the link Beep52 (#16) provided, if you have blood pressure or heart problems. You’re going to hit peak in 30 seconds.

    It just constantly amazes me, the depths of the mendacity of these scum. As scummy and mendacious as you can imagine if you spend all day trying, they are scummier and more mendacious.

    And trust me, there really are people out there who – if you told them this – would tell you (as one of them did to me three weeks ago) “if it keeps things going for another 20 years for me and mine, then fuck the polar bear.” No – I am not kidding. I waited until I had hung up on him before cutting loose with five minutes of unrepeated obscenities directed at him.

  • I saw a link here the other day to a story about Mitt Romney saying “Who let the dogs out?” at an appearance. I was just watching Anderson Cooper, and the way they tell it, Romney looked at a bunch of black kids and then belted the phrase out.

    Classy.

  • Whether deviousness or incompetence is to blame is unclear

    Ah, that’s the joy of this misbegotten Administration — you don’t have to choose. It’s not either/or … it’s both/and.

  • Maybe it’s just me, but I see a connection between militant attacks on schools in Baghdad and WaPo/NYT articles about Iraqi students cautiously going back to school now that “the surge is working” and security is so much better. Western journalists and the US government are making these people targets with their happy talk. Anything the Bush government publicly touts as a success must ipso-facto be attacked to prove it’s not a success at all.

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