Monday, July 26, 2010

Peat fires in Moscow.

An acrid fog from forest and peat fires has blanketed Moscow, as the Russian capital swelters in a record heat wave.

Firefighters were trying to douse 60 fires covering 59 hectares (145 acres) in the countryside outside Moscow on Monday, the emergencies ministry said.

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Geez ... another strange report from Mexico.

Four prison officials in northern Mexico have been arrested for allegedly allowing several inmates to carry out three separate contract killings since February, Mexico’s federal prosecutors’ office said.

Ricardo Najera, a spokesman from the attorney general’s office, said on Sunday that the prisoners were set free from the Gomez Palacios Social Rehabilitation Centre in the northern state of Durango to carry out the killings.

He said the inmates were given weapons that were traced to the prison through bullets found at crime scenes and matched to weapons belonging to four officials.

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Ugly explosion in Mexico

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The rest of the planet is questioning their existence.

Diagnosis is often much simpler than treatment. The failures of Fannie Mae and Freddie Mac, America’s housing-finance giants, are glaringly obvious. The two firms, which own or guarantee more than half of the country’s $10.7 trillion of mortgages, are awash in red ink.

The Congressional Budget Office reckoned in August 2009 the twosome’s cost to taxpayers could go as high as $400 billion. With housing showing renewed weakness, that number may rise.

It is also easy to see why the firms got into such a mess. These “government-sponsored enterprises” (GSEs) occupied a grey area between state and private ownership, benefiting from an implicit government guarantee on their own debt at the same time as they sought to maximize profits for shareholders.

That hybrid model granted the GSEs access to cheap funding and gave them the incentive to load their retained portfolios with subprime mortgages while maintaining capital levels scanty enough to make investment banks blush.

Although everybody agrees on the need to overhaul Fannie and Freddie, nobody is rushing to do much about it.

America’s thumping financial-reform bill, which was signed into law by Barack Obama on July 21, found room in its 2,319 pages to create “Offices of Minority and Women Inclusion” in various federal agencies, but did nothing on Fannie and Freddie.

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I’m sure that this will help.

The United Nations General Assembly is expected this week to approve a new director for the U.N.‘s internal anticorruption unit following the acrimonious departure of the previous director nearly two weeks ago.

U.N. Secretary-General Ban Ki-moon on Friday nominated an as-yet unnamed Canadian woman for the top post at the U.N.‘s Office of Internal Oversight Services.

The former director, Inga-Britt Ahlenius, a Swede, said over the weekend that her successor will inherit a unit in disarray, with some senior posts, including that of director of investigations, having been left vacant for several years.

Ms. Ahlenius, whose nonrenewable five-year term as head ended July 14, left the post after delivering a report to Mr. Ban alleging he interfered with the independence of the nominally independent office charged with rooting out U.N. corruption.

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Sunday, July 25, 2010

Fat chance.

A startling whisper has been reverberating around Washington and in the main stream press: Might President Obama slay the beast of Fannie Mae and Freddie Mac once and for all?

Such a move would fundamentally change both the way Wall Street operates and the way Americans think about life.

The Obama administration appears to be suggesting—very subtly—that homeownership isn’t a God-given right. That the American dream has morphed into an American entitlement. That millions of people who should not have been homeowners in the first place ended up paralyzed by unsustainable debt as a result.

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Friday, July 23, 2010

Back to the hills.

And to cooler afternoons.

image

Back Sunday although I should have some internet access and a little time this weekend.

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Sending an unusual message to her child.

A pregnant British mother has been convicted in the U.S. of lying to the FBI about drawing up a hit-list of possible terrorist targets.

The intelligence agency alleged that Nadia Rockwood, 36, along with her husband, compiled a list of 15 Americans who they believed were enemies of Islam.
The couple pleaded guilty to charges of lying to investigators and making false statements about domestic terrorism when they appeared in court in Anchorage, Alaska.

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Thursday, July 22, 2010

I didn’t realize that there was a money back guarantee.

There was a good article on Bloomberg.com yesterday by Jody Shenn that says that Fannie Mae and Freddie Mac may be able to force mortgage sellers to buy back $30 billion worth of bad loans they were sold before the real estate crash.

According to the article, the Federal Housing Finance Agency (FHFA) issued 64 subpoenas for underwriting and other documentation for mortgage securities purchased by Fannie Mae or Freddie Mac.  FHFA is attempting to discover if there was shoddy underwriting or any other issues with the securities that could trigger buyback clauses in their sales contracts.  When a mortgage held by Fannie or Freddie goes bad, they review the file and may force the seller to buy back the mortgages if documentation or underwriting is lacking

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Terror politics.

You’re right to worry that Uncle Sam responded to the public’s anxiety about terrorism by creating an overgrown intelligence bureaucracy with bloated budgets that strain our wallets and arbitrary powers that mock the Constitution as they threaten our freedoms (“The overgrowth of intelligence programs since Sept. 11,” July 22).

But why do you not also worry about similar extensions of government’s reach into areas such as health-care and finance?  As with fears of terrorism, Americans’ concerns about the cost of medical care and the role of Wall Street have been cynically stoked and used by politicians to expand the role the state.  Vast and bloated bureaucracies are being created to exercise arbitrary powers that are unconstitutional as well as a threat both to our freedoms and to our prosperity.

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The entitlement society

But while one can rationally argue pro or con on these issues, there’s a deeper question that we need to try to answer: Are we, by having the government doing so much to help everyone, encouraging an entitlement mentality in this country that is making problems worse?

In my view, we are already well along this troubling road. Consider:

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Scaring Hezbollah

Lebanon is reported to be planning to file a complaint about Israeli “espionage” at the United Nations Security Council (UNSC), viewing it as a violation to Resolution 1701, according to the country’s Information Minister.

Tareq Mitri said on Wednesday that the Cabinet had agreed to present a “detailed report” about Israeli “espionage” to the UNSC later this week.

The move follows the arrest of two employees, both technicians, from the state-owned Alfa phone company. They could face the death penalty if convicted of spying.

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If it wasn’t so expensive, it would have drifted out of site.

The United Nations remained abuzz Wednesday as Secretary-General Ban Ki-moon returned to New York headquarters days after an internal report from a senior staffer sharply chastised him.

Ban, fresh from a trip to Afghanistan, met with British Prime Minister David Cameron Wednesday afternoon. But those discussions have taken a back seat to the controversy surrounding a leaked 50-page memo from the outgoing U.N. anti-corruption director.

Swedish diplomat Inga-Britt Ahlenius wrote in the memo that the U.N. is “drifting into irrelevance” under Ban’s supervision.

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South Park threat arrested.

The Virginia man who had issued “warnings” to the creators of Comedy Central’s animated series “South Park,” saying they risked death if they showed the prophet Muhammad in a bear costume, has been arrested and charged with giving material support to the Somali terrorist group al-Shabab.

Zachary Chesser, 20, was arrested Wednesday on charges unrelated to the online “warnings” that he posted to “South Park” creators Matt Stone and Trey Parker over the show’s 200th and 201st episodes, in which viewers were led to believe Muhammad was disguised in a bear suit—only it turned out to be Saint Nicholas in the bear costume.

Comedy Central censored the episodes when they were telecast in April, clumsily wiping out the cartoon bear-suited Santa Claus from its scenes.

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Guilty plea

An Alaskan man who is a follower of a radical Muslim cleric pleaded guilty this week to lying to federal agents who were conducting a terrorism investigation, federal authorities said.

Paul Gene Rockwood, 35, faces a sentence of eight years in prison as part of his plea agreement. His wife, Nadia Rockwood, 36, also pleaded guilty to lying to investigators who were asking questions about Rockwood. She is scheduled to be sentenced to five years of probation.

Rockwood is a follower of cleric Anwar al-Awlaki, according to court documents. Al-Awlaki, a Yemeni-American cleric, has been linked to the failed Christmas Day bombing and an attack on military base in Fort Hood, Texas.

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