The Chicago political culture: "where money and government power seem especially fungible"

The Chicago Way, on Tape: This wiretap was golden

Excerpt:

The Governor's comments were taped in court-approved wiretaps and include such self-incriminating classics as: "I've got this thing [the power to appoint Barack Obama's Senate replacement] and it's [expletive] golden, and, uh, uh, I'm just not giving it up for [expletive] nothing. I'm not gonna do it. And, and I can always use it. I can parachute me there." We recommend the entire 76-page FBI affidavit for every high school civics course as proof of the need for political checks and balances.

Comment: 76-page FBI affidavit & Dept of Justice press release. If you have Acrobat Reader - search for "Candidate 5" in the 76-page FBI affidavit. Think "son of shakedown". More from the Wall Street Journal editorial:

If convicted, Mr. Blagojevich would be the second consecutive Illinois Governor to be found guilty of a felony, and the fourth in 35 years. We'd ask if it's something in the water, but that would be unfair to the Chicago River. It is certainly something in the Chicago political culture, where money and government power seem especially fungible.

....

Now would be a good time for the President-elect to say that Mr. Blagojevich and his cronies should have nothing to do with naming Mr. Obama's successor. And that, given the taint of corruption that now hangs over any choice, the state should hold a special Senate election.

Is "son of shakedown" candidate # 5

Sources Say Rep. Jesse Jackson Jr. is 'Senate Candidate #5'

Excerpt:

Chicago Congressman Jesse Jackson, Jr. (D-IL) is the anonymous "Senate Candidate #5" whose emissaries Illinois Governor Rod Blagojevich reportedly claimed offered up to a million dollars to name him to the U.S. Senate, federal law enforcement sources tell ABC News.

..

According to the FBI affidavit in the case, Blagojevich "stated he might be able to cut a deal with Senate Candidate 5 that provided ROD BLAGOJEVICH" with something "tangible up front."

Comment: Seems like the kind of "change" we are getting in Washington is corruption! The phrase "The apple never falls far from the tree" applies to Jesse Jr. More on "father shakedown":

• Shakedown: Exposing The Real Jesse Jackson
  
• Book: Shakedown: Exposing The Real Jesse Jackson
  
• Jesse Jackson – for blacks or himself?
  

Excerpt from Jesse Jackson – for blacks or himself?:

How many blacks can truthfully say they tangibly benefited from Jackson's shakedown of Credit Suisse, Goldman Sachs, Morgan Stanley and Paine Weber?

Many in the media know the merger of Clear Channel Communications and AMFM, Inc. was threatened by Jackson with trumped-up accusations of racism ... that is until they forked over 46 stations, worth $2 billion to minority owners – minority owners who just happened to comprise the support base for the non-profits that pay his bills and organize his travels. (See "Rainmaker Redux" by H.W. Jenkins Jr., Wall Street Journal, Jan. 24, 2001)

Noah Robinson, Jackson's half brother, was the principle beneficiary of Jackson's Coca-Cola shakedown. Jackson successfully strong-armed the Cola giant to award lucrative distributorships to minorities. The recipients were once again those associated with his non-profit supporters. I am certain that all of Robinson's fellow inmates (it seems he was sentenced to life imprisonment for hiring gang members to kill three business associates) are especially appreciative of Jackson on those hot, humid days of summer. After all, time "goes better with Coke."

How many blacks benefited from the hundreds of millions Texaco paid to settle a discrimination lawsuit even though a "smoking gun" tape proved there were no racial slurs voiced by company execs?

Jackson's Wall Street Project takes in approximately $10 million yearly. How much of that goes to blacks outside of his narrow network?

How many of the jeering black faces Jackson uses as backdrop benefited from his 1997 shakedown of Viacom? Once Viacom agreed to pay $2 million with Jackson as the principle recipient, all opposition disappeared.

How much benefit was Jackson's extortion of the SBC and Ameritech merger to blacks in the Watts section of Los Angeles, Harlem, Cincinnati or Chicago? We know Jackson's Citizenship Education Fund was pledged $1 million by the named mergers. We also know that Jackson's "gumba" Chester Davenport, with no prior telecommunications experience, made off with a cellular business as a result of the deal. As Don King would say: "Only in America."

We cannot point to a black NASCAR team or driver, but we can point to a black con-man who made off with a quarter million NASCAR dollars under the guise of producing the same.

We can point to the financial wizardry (spelled t-h-i-e-v-e-r-y) of Terry McAuliffe vis a vis Global Crossings, and Hillary Clinton vis a vis the futures market, but even they pale in comparison to Jackson.

Jackson claims to have an annual salary of $1 – but his plush lifestyle includes limousines, three lavish homes, sweetheart stock deals, big private bank accounts, first-class travel, private schools and the best universities for his children. ("Shakedown" by K.R. Timmerman)

This may be viewed as an acceptable way for corporate America to assuage their collective consciences. It may also be acceptable to blacks who would rather blame "whitey" and be the master's pets waiting for handouts, than to realize they can obtain (what today passes for) education at free schools, learn trades, open shops, go to the best colleges they are not qualified for on scholarship
(even if they can't run, jump or throw) at the expense of someone who is.

Even Jesse James and Al Capone gave away many times that which they kept of their stolen fruit. But Jackson funnels his ill-gotten gains through his Citizenship Education Fund to his wife and children who serve as board members, while paving the way for his mistress to obtain a lucrative consultant job. And let us not forget his sons' – Yusef and Jonathan – lucrative Anheiser-Bush distributorship.

To all of the Jackson sycophants, I ask you the same question: Name 10 things that Jesse Jackson has done to tangibly help individual black Americans.

Blagojevich "go ahead tape me"

The Smoking Gun: Obama Senate Seat For Sale?

Comment: Rod Blagojevich's "Gary Hart moment" (Bug me: Blagojevich has Gary Hart moment)

Illinois: “Land of Greased Palms”

Illinois has long legacy of public corruption - At least 79 elected officials have been convicted of wrongdoing since 1972

Excerpt:

The state, Cook County and its governmental seat, Chicago, have a long history of corruption by elected and appointed officials.

The culture of corruption dates back to the late 19th century, when a gambling-house owner named Michael Cassius McDonald created the city's first political machine, establishing a model in which officials would distribute contracts, jobs and social services in exchange for political support, according to a scholarly history of organized crime in Chicago by Robert Lombardo, a sociology professor and former Chicago and Cook County police officer.

Its persistence was documented in Sept. 7, 2006 by the Chicago Sun-Times, which reported that at least 79 current or former Illinois, Chicago or Cook County elected officials had been found guilty of a crime by judges, juries or their own pleas since 1972. The paper provided this tally of the tarnished: three governors, two other state officials, 15 state legislators, two congressmen, one mayor, three other city officials, 27 aldermen, 19 Cook County judges and seven other Cook County officials.

The article noted that so many aldermen had been jailed that the newspaper ran a front-page-story in 1991 when the year passed with none being indicted or convicted.

The ranks of imprisoned pols include three former Illinois governors — George Ryan, Dan Walker and Otto Kerner Jr.

Ryan, a rare Republican in the heavily Democratic state and Gov. Rod Blagojevich’s predecessor, is serving a six-year prison sentence after being convicted in April 2006 on racketeering and fraud charges. A decade-long investigation began with the sale of driver's licenses for bribes and led to the conviction of dozens of people who worked for Ryan when he was secretary of state and governor.

Illinois Governor in Corruption Scandal


Excerpt:

Mr. Blagojevich, a Democrat, called his sole authority to name Mr. Obama’s successor “golden,” and he sought to parlay it into a job as an ambassador or secretary of Health and Human Services, or a high-paying position at a nonprofit or an organization connected to labor unions, prosecutors said.

He also suggested, they said, that in exchange for the Senate appointment, his wife could be placed on corporate boards where she might earn as much as $150,000 a year, and he tried to gain promises of money for his campaign fund.

If Mr. Blagojevich could not secure a deal to his liking, prosecutors said, he was willing to appoint himself.

“If I don’t get what I want and I’m not satisfied with it, then I’ll just take the Senate seat myself,” the governor said in recorded conversation, prosecutors said.

Comment: One has to wonder how much Barak Obama knew about the plan to sell his Senate seat. Update: Obama: No contact with Blagojevich on Senate seat

Update 2: Or did he? Questions Arise About the Obama/Blagojevich Relationship

But on November 23, 2008, his senior adviser David Axelrod appeared on Fox News Chicago and said something quite different.

While insisting that the President-elect had not expressed a favorite to replace him, and his inclination was to avoid being a "kingmaker," Axelrod said, "I know he's talked to the governor and there are a whole range of names many of which have surfaced, and I think he has a fondness for a lot of them."

...

There are no allegations that President-elect Obama or anyone close to him had anything to do with any of the crimes Gov. Blagojevich is accused of having committed.

In fact, there are indications that Mr. Obama and his team refused to go along with the "pay to play" way Blagojevich is accused of operating, offering only "gratitude" if the governor appointed his friend Valerie Jarrett to take his U.S. Senate seat, much to the governor's chagrin.

But there remain questions about how Blagojevich knew that Mr. Obama was not willing to give him anything in exchange for the Senate seat -- with whom was Blagojevich speaking? Did that person report the governor to the authorities?

And, it should be pointed out, Mr. Obama has a relationship with Mr. Blagojevich, having not only endorsed Blagojevich in 2002 and 2006, but having served as a top adviser to the Illinois governor in his first 2002 run for the state house.

That 2002 endorsement came at the same time that Axelrod had such serious concerns about whether Blagojevich was ready for governing he refused to work for his one-time client.

A call to personal responsibility and market forces

Getting Out of the Credit Mess - The last thing we need is policy that encourages or incurs more debt

Excerpt:

The intellectual start of this mess was in a flawed Boston Federal Reserve study published in 1992 that purported to show that minorities were treated less well than whites. That study led to increased political pressure on banks to modify their standards with increased emphasis through the Community Reinvestment Act, and aided by U.S. Department of Housing and Urban Development regulations in the Clinton administration that required parity of outcomes in the lending process.

The effect of all of this meddling was compounded by the lax or incompetent supervision of Fannie Mae and Freddie Mac. All in all, the government got into the business of encouraging and then forcing lending institutions to make mortgage loans to people who could not pay them back. What we ended up with is a failure of government, which we have erroneously termed a failure of capitalism.

...

All of this led to a huge overleveraging in the consumer market. The increase in debt burden fueled much of the nation's economic growth over recent decades, aided somewhat by increases in productivity and underpinned by easy money from the Federal Reserve. Since consumers represent about 70% of the nation's GNP, and since leverage cannot increase forever, we were bound to see the bubble burst and eventually enter a substantial recession.

So, are the current credit easing actions likely to be helpful or not? In my judgment, measures to create liquidity are likely to be helpful. Financial institutions that lend money to credit-worthy people for reasonable purposes have experienced a substantial reduction in available funding from which they can make loans. Hence the programs to support the securitization markets are sensible because money used for this purpose will be lent and used for purchases. Programs that deliver a short-term reduction in mortgage rates will, at the margin, help absorb some of the available housing stock, reducing the time it will take for housing to reach market-clearing levels.

...

In the longer term, our nation must delever -- either by reducing the amounts of borrowing or by increasing consumer earning power through economic growth. Relying on growth alone implies a growth rate higher than we have ever experienced in our nation's history. Nonetheless, our public policy must encourage economic growth by lowering tax rates for corporations and individuals while at the same time avoiding what would be growth killers, including "card check" legislation and trade restrictions. Public policy should support higher savings rates, and avoid encouraging increased consumer spending funded by further debt, which may be helpful in the short term but catastrophic in the longer term.

It is not only consumers that must delever. Governments must as well. State and local governments across the nation have incurred direct and indirect debt or obligations in the tens of trillions of dollars -- obligations that cannot be met under any set of reasonable circumstances without an explosion in growth and tax revenues. In fact, we continue to incur debt for politically palatable ideas, like rebate checks, which have very little stimulative power but increase the depth of the hole we're in.

To solve this problem for ourselves and future generations, we must get back to our historic reliance on personal responsibility and market forces, and get government out of economic management. It doesn't do a good job, as the current economic mess amply proves.

Comment: The last paragraph is key - "personal responsibility and market forces, and get government out of economic management"

My right foot

This will boggle your mind and you will keep you trying over and over again to see if you can outsmart your foot, but, you can't.

It's pre-programmed in your brain!

1. Without anyone watching you (they will think you are GOOFY......) and while sitting at your desk in front of your computer, lift your right foot off the floor and make clockwise circles.
   
2. Now, while doing this, draw the number '6' in the air with your right hand. Your foot will change direction.
   

I told you so!!! And there's nothing you can do about it! You and I both know how stupid it is, but before the day is done you are going to try it again, if you've not already done so.

Send it to your friends to frustrate them too!

Comment: Sent to me by my Sister-in-law.

Skater goes through ice on Medicine Lake

Skater falls through ice of Medicine Lake

Excerpt:

A skater who fell through thin ice was pulled from Medicine Lake in Plymouth Sunday and rushed to North Memorial Medical Center in Robbinsdale.

The man was found in the water about 3 p.m. after another skater spotted a hat floating in the water and called police at 1:50 p.m., the Hennepin County Sheriff's Water Patrol reported.

When pulled from the water, the man had no pulse and was not responsive to resuscitation attempts, but authorities offered no more information about his condition Sunday evening.

Water Patrol personnel found him about 600 yards from shore, said Sgt. Chris Mathisen of the Sheriff's Department.

The man was wearing ice skates and had a camera around his neck, Mathisen said.

The victim, who authorities believe was visiting from out of town, has not been identified pending notification of relatives.

The area where he was skating, near French Regional Park off Rockford Road, had been open water on Saturday and froze overnight, Mathisen said.

Comment: We saw the news trucks there this afternoon. This is the same area of the lake where 2 trucks went through in February 2007. Trucks through thin ice

What if worship were like the NFL?

HT: The Irish Calvinist



Comment: I'm glad it's not!

Ratings Agencies - just profit-maximization entities?

Debt Watchdogs: Tamed or Caught Napping?

Excerpts:

“The mistaken notion that Moody’s was a company like any other, that was very fundamental,” said Sylvain Raynes, a former Moody’s analyst who is co-founder of R&R Consulting, a firm that helps investors gauge debt risks. “It is not just a profit-maximization entity like Exxon or Microsoft. Moody’s has a duty to the American public. People trusted it.”

Comment: Rating agencies and area of specialty

• Moody's Corporation (commercial and government entities)
  
• Fitch, Inc (One of the 3 NRSRO's along with Moody's)
  
• Standard & Poor's (research and analysis on stocks and bonds) - (One of the 3 NRSRO's along with Moody's)
  
• A. M. Best (insurance companies)
  
• Morningstar (investment offerings, including stocks, mutual funds, bonds, and ETFs)
  

There are two superpowers in the world today in my opinion. There's the United States and there's Moody's Bond Rating Service. The United States can destroy you by dropping bombs, and Moody's can destroy you by downgrading your bonds. And believe me, it's not clear sometimes who's more powerful. (Thomas Friedman. From Feb. 13, 1996 interview with Jim Lehrer.)

Obama's 21st Century New Deal

Obama Pledges Massive Public Works Program

Excerpts:

“We need action — and action now,” he said in an address taped for broadcast Saturday morning on radio and YouTube.

...

Mr. Obama and his team are working with Congressional leaders to fashion a spending package that could invest hundreds of billions of dollars into the economy. A big part of that would be infrastructure projects such as building or repairing roads, bridges, schools, sewer systems and other public utilities. Democrats hope the new Congress that takes office in early January could pass such a measure in time for Mr. Obama to sign almost instantly after taking office Jan. 20.

The president-elect in his Saturday address offered some general ideas of what he wants to see in the package. Besides public works construction, he promised to make government buildings more energy efficient, modernize school classrooms and libraries with computers, expand access to broadband Internet service and upgrade information technology in hospitals and doctors’ offices.

The big ticket will be the public works spending. “We will create millions of jobs by making the single largest new investment in our national infrastructure since the creation of the federal highway system in the 1950s,” Mr. Obama said.

He did not give any estimate of how much he would devote to that purpose, but when he met with the nation’s governors this week, they said the states had $136 billion worth of already-approved road, bridge and other projects ready to go as soon as funding became available. They estimated each billion dollars spent would create 40,000 jobs.

By invoking the federal interstate program, Mr. Obama sought to summon the spirit of Dwight D. Eisenhower, who launched the highway construction that became integral to the nation’s economic development. That imagery seemed intended to respond to critics, who argue that public works spending historically has not been a reliable catalyst for short-term economic growth and instead is more about politicians gaining points with constituents.

Comment: Sounds nice on the surface. But probably will just spend us into more debt.

Updated: (plus changed the title of the blog to reflect politico.com article)

Obama unveils 21st Century New Deal

North Dakota is hiring

North Dakota Asks, What Recession?

Excerpts:

North Dakota’s cheery circumstance — which economic analysts are quick to warn is showing clear signs that it, too, may be in jeopardy — can be explained by an odd collection of factors: a recent surge in oil production that catapulted the state to fifth-largest producer in the nation; a mostly strong year for farmers (agriculture is the state’s biggest business); and a conservative, steady, never-fancy culture that has nurtured fewer sudden booms of wealth like those seen elsewhere (“Our banks don’t do those goofy loans,” Mr. Theel said) and also fewer tumultuous slumps.

As it happens, one of the state’s biggest worries right now is precisely the reverse of most other states: North Dakota has about 13,000 unfilled jobs and is struggling to find people to take them.

...

“Our problem is that everybody thinks that it’s a cold, miserable place to live,” said Bob Stenehjem, a Republican and the State Senate’s majority leader. “They’re wrong, of course. But North Dakota is a pretty well-kept secret.”

With 635,867 residents, North Dakota is among the least populous states, and, in the past few years, more people have moved away, census figures show, than have moved here.

Katie Hasbargen, a spokeswoman for Microsoft’s Fargo campus, which is in the middle of a $70 million or so building expansion and is, even now, looking for a few additions to its work force (of more than 1,500), said false perceptions of the state are the problem when it comes to recruiting workers. “The movie,” Ms. Hasbargen said, referring to the 1996 Coen brothers’ film that bears this city’s name, “didn’t do us a lot of favors.”

Comment: But it is North Dakota! Re: "everybody thinks that it’s a cold, miserable place to live" - they're right!

Job's report: “horrendous"

Grim Job Report Not Showing Full Picture

Excerpts:

The number of people out of the labor force — meaning that they were neither working nor looking for work and that the government did not consider them unemployed — jumped by 637,000 last month, the Labor Department said. The number of part-time workers who said they wanted full-time work — all counted as fully employed — rose by an additional 621,000.

Take these people into account, and the job market may be in its worst condition since the early 1980s. It is still deteriorating rapidly, too.

Already, the share of men older than 20 with jobs was at its lowest point last month since 1983, and very close to the low point of the last 60 years. The share of women with jobs is lower than it was eight years ago, which never happened in previous decades.

...

Even Wall Street economists, whose analysis usually comes shaded in rose, seemed taken aback by the report. Goldman Sachs called the new numbers “horrendous.” Others said “dreadful” and “almost indescribably terrible.” In a note to clients, Morgan Stanley economists wrote, “Quite simply, there was nothing good in this report.” HSBC forecasters said they now expected the Federal Reserve to reduce its benchmark interest rate all the way to zero.

Such language may sound out of step with a jobless rate that, despite its recent rise, remains at 6.7 percent; the rate exceeded 10 percent in the early 1980s. But over the last few decades, the jobless rate has become a significantly less useful measure of the country’s economic health.

That is because far more people than in the past fall into the gray area of the labor market — not having a job and not looking for one, but interested in working. This group includes many former factory workers who have been unable to find new work that pays nearly as well and are unwilling to accept a job that pays much less. Some get by with help from disability payments, while others rely on their spouses’ paychecks.

U.S. Job Losses Signal Recession Will Be Long, Deep

Employers cut payrolls last month at the fastest pace in 34 years as the unemployment rate rose to 6.7 percent, the highest level since 1993. The 533,000 drop brought cumulative job losses this year to 1.91 million, the Labor Department said yesterday in Washington.

“Almost all businesses are in survival mode, and they’re slashing payrolls and investments just to conserve cash,” Mark Zandi, chief economist at Moody’s Economy.com in West Chester, Pennsylvania, said in a Bloomberg Television interview yesterday. “We’re in store for some big job losses.”

Comment: First of three economic posts today. My own company (unnamed by policy) has a hiring freeze. One of my kids is out of work (but has a part time job - was his 2nd job). For the first time in my life, I know personally probably at least a dozen who are out of work or soon will be.

Cars designed in DC won't sell

Bridge Loan to Nowhere - Congress and business 'viability' rarely mix.

Excerpts:

All three restructuring plans are heavy on promises to build the "green" cars that a Democratic Congress wants built. GM promises 15 hybrid models by 2012 and 37 miles per gallon on average for its cars. Chrysler commits to putting flex-fuel engines, which can run on ethanol or gasoline, in half of its cars. Ford promises to save 16 billion gallons of gas by using "advanced technology" and to invest $14 billion to improve fuel efficiency.

...
This is not a bailout that Congress is debating. It is a federal takeover. We don't mean that in the sense that the feds will own the companies on paper, although that can't be ruled out. What Congress wants to own is their business plan, and Detroit seems prepared to oblige.

...
The core problem is that the companies can't pay their creditors in fuel-economy standards. Two economists testified that the ultimate cost of this bailout would certainly be much, much higher than $34 billion. Mark Zandi of economy.com put the number at up to $125 billion -- and he supports the bailout. NYU's Edward Altman said the company proposals were "doomed to fail." He proposed a prepackaged bankruptcy for GM and Chrysler, with the government providing the debtor-in-possession financing if necessary. His point, which ought to be sobering, was that outside of bankruptcy there is no way to make these taxpayer loans senior to existing secured debt -- meaning the government might never get paid back if the companies go bankrupt later.

...
The car makers' request for a bridge loan, by contrast, looks like a $34 billion bridge to nowhere. It has already morphed into an opportunity for political extortion -- and we don't even have a bill yet. When, in a couple years, costs have not come down as expected because of political pressure to keep the unions happy and the green cars aren't selling -- because they were designed in Washington, not for consumers -- the companies will be back for more money.

The bailout commitment, in other words, is effectively open-ended, no matter what anyone says. And with the feds so invested in the companies, it will only be a short step for Congress to begin to coerce consumers to buy the cars that Washington prefers. Mr. Friedman, the concerned scientist, is already planning for that day. He said Friday that we'll eventually have to impose a "fee" (read: tax) on cars that "pollute too much" or use "too much gas."

This fairy tale, in other words, does not end happily ever after. A bankruptcy, prepackaged or otherwise, keeps looking better.

Comment: What Washington gives ... it takes away.

Donald Trump believes in God!

Trump Sees Act of God in Recession

Excerpts:

Guess who is complaining that condominiums in Donald Trump’s latest big project are ridiculously overpriced.

Donald Trump is.

But he isn’t cutting the prices. He says the banks won’t let him.

The project is the Trump International Hotel and Tower in Chicago, which is to be the second-tallest building in that city (after the Sears Tower). By Mr. Trump’s account, sales were going great until “the real estate market in Chicago suffered a severe downturn” and the bankers made it worse by “creating the current financial crisis.”

Those assertions are made in a fascinating lawsuit filed by Mr. Trump, the real estate developer, television personality and best-selling author, in an effort to avoid paying $40 million that he personally guaranteed on a construction loan that Deutsche Bank says is due and payable.

Rather than have to pay the $40 million, Mr. Trump thinks the bank should pay him $3 billion for undermining the project and damaging his reputation.

He points to a “force majeure” clause in the lending agreement that allows the borrower to delay completion of the building if construction is hampered by such things as riots, floods or strikes. That clause has a catch-all section covering “any other event or circumstance not within the reasonable control of the borrower,” and Mr. Trump figures that lets him out, even though construction is continuing.

“Would you consider the biggest depression we have had in this country since 1929 to be such an event? I would,” he said in an interview. “A depression is not within the control of the borrower.”

What's Force majeure?

Force majeure

Excerpt:

Force Majeure (French for "superior force") is a common clause in contracts which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or act of God (e.g., flooding, earthquake, volcano), prevents one or both parties from fulfilling their obligations under the contract.

Comment: But Donald Trump doesn't believe in God for his buyers:

Mr. Trump, it may be noted, does not think remorseful condominium buyers are in a similar position. When I asked him if he would let them walk away from contracts to buy apartments at predepression prices, he said he would not. “They don’t have a force majeure clause,” he said.

Coleman holds +192 lead after recount

The recounting is done (with one exception)

Excerpt:

Except for 133 missing ballots from Minneapolis, the recounting of votes from the U.S. Senate race is over. According to the Star Tribune's tabulations, Republican Sen. Norm Coleman has a 192-vote advantage over Democrat Al Franken, pending the resolution of those Minneapolis ballots and of thousands of ballot challenges.

When the recount began, Coleman held a 215-vote edge.

At 11:29 this morning, Wright County maintenance worker Allen Buskey pushed a cart with 10 boxes of ballots into Room 217 at the county government center in Buffalo and locked up the last of the 2.9 million ballots recounted since Nov. 19.

"We're done," said state elections director Gary Poser, after putting stickers on the 21st challenged ballot from the Wright County town of Montrose.

The last ballot tallied in the recount of the bitter race was for neither Coleman nor Franken, but the Independence Party's Dean Barkley, from a voter in Hanover.

The 192-vote margin almost certainly will change once the challenged ballots that have been set aside are reviewed by the state Canvassing Board.

Comment: Image captured from the Star Tribune (12/5/08). Compare Coleman & Franken: 238 votes from 11/7/08

Update: Minnesota Secretary of State Mark Ritchie said Coleman led Franken by 787 votes

With the recount virtually complete on Friday, Minnesota Secretary of State Mark Ritchie said Coleman led Franken by 787 votes. Local newspapers put Coleman's margin at about 200 votes, tallying ballots that had previously been challenged.

Peet's Coffee and Tea

Peet's Coffee and Tea

I have a special offer for all of my readers and friends. Mention my name and get discounted shipping at Peet's Coffee and Tea through Sunday.

Just mention my name - "Jim Peet"!

Stocks are unreasonably cheap now

Is Buffett Insane?

Excerpts:

In the midst of economic chaos, Warren Buffett recently made a bold prediction. He said that now is the time to buy American stocks.

...

1974: Stagflation


The years 1973 and 1974 were two very bad ones for the market. OPEC had started flexing its muscles, causing oil to quadruple. This resulted in a long recession, with inflation spiking to 12.3% in 1974, while real GDP growth fell by 0.5%. America experienced stagflation -- the ugly combination of a recession and high inflation rates -- and people were terrified. The situation was even worse in the United Kingdom, where the government was bailing out banks after real estate crashed. Over those two years, the S&P 500 plunged by 42%.

It was then, on Nov. 1, 1974, at the height of the pessimism, that Buffett made his first well-publicized bullish market call. He noted that he was well aware that the world was in a mess, but that stocks were simply too cheap. "If you're only worried about corporate profits, panic or depression, these things don't bother me at these prices."

To be totally clear, Buffett made one of the most direct predictions of his entire career: "Now is the time to invest and get rich." Buffett himself was buying shares of The Washington Post (NYSE: WPO) and advertising agency Interpublic (NYSE: IPG).

It worked out pretty well for him. The market jumped 32% in 1975, and another 19% the next year. Even today, the Dow Jones Industrial Average's 38% gain in 1975 stands up as its biggest increase since 1955.

Comment: Unreasonable Pessimism has replaced Irrational Exuberance. Time to keep investing!

Credit President Bush for our safety

Peggy Noonan: 'At Least Bush Kept Us Safe'

Excerpts:

There's a rough justice with the American people. If a president presides over prosperity, whether he had anything to do with it or not, he gets the credit. If he has a recession, he gets the blame. The same with war, and terrorist attacks. We have not been attacked since 9/11. Someone—someones—did something right.

Comments: In my own "book of blames". I blame the Democrats for the Fannie Mae / Freddie Mac mess. I blame the wholly uneducated American consumer - just plain STUPID about debt - for our debt crisis. And I credit President Bush for our safety.

Seems fitting ...

Obama Spent Four Times as Much as McCain at Race End

Excerpt:

Barack Obama’s record-breaking fundraising gave him four times as much cash to spend as rival John McCain in the final months of the presidential campaign.

Obama brought in $291 million between Sept. 1 and Nov. 24 and spent $349 million, helped by funds left over from a primary battle that began in February 2007, his campaign said. McCain, a Republican senator from Arizona, spent $78.9 million of the $84.1 million he received in public financing.

The president-elect shattered fundraising records, with donations of $746 million for the primary and general campaigns. Obama previously reported raising $642 million through Oct. 15. The campaigns reported their final totals yesterday to the Federal Election Commission.

Obama, 47, was the first major party nominee to bypass taxpayer funding for the general election, and his large base of donors gave him a massive advantage over McCain. During the last six weeks of the campaign, the Democrat was able to run twice as many commercials as McCain, 72, according to the Nielsen Co.

McCain spent $26.5 million in the final weeks of the campaign, with $9.5 million going for advertisements, $4.5 million for message phone calls and $2.2 million for salaries. He ended up with $4.9 million in bills still to be paid. McCain also had $25 million in his legal and accounting fund, which can cover expenses incurred during a mandatory FEC audit.

Comment: Seems fitting that "the Father" of the Bipartisan Campaign Reform Act of 2002 (AKA "the McCain-Feingold bill") would be outspent by Barak Obama! Wall Street Journal opines below:

McCain Couldn't Compete With Obama's Money

Mr. McCain was outspent by wide margins in every battleground state. But it would have been worse for him if RNC Chairman Mike Duncan and Finance Chairman Elliott Broidy hadn't stockpiled funds in 2007 and early 2008. The RNC provided nearly half the funds for the GOP's combined general-election campaign, while the DNC provided less than a tenth of the funds that benefited Mr. Obama.

To diminish criticism, Mr. Obama's campaign spun the storyline that he was being bankrolled by small donors. Michael Malbin, executive director of the Campaign Finance Institute, calls that a "myth." CFI found that Mr. Obama raised money the old fashioned way -- 74% of his funds came from large donors (those who donated more than $200) and nearly half from people who gave $1,000 or more.

But that's not the entire story. It's been reported that the Obama campaign accepted donations from untraceable, pre-paid debit cards used by Daffy Duck, Bart Simpson, Family Guy, King Kong and other questionable characters. If the FEC follows up with a report on this, it should make for interesting reading.

Mr. Obama's victory marks the death of the campaign finance system. When it was created after Watergate in 1974, the campaign finance system had two goals: reduce the influence of money in politics and level the playing field for candidates.

This year it failed at both. OpenSecrets.org tells us a record $2.4 billion was spent on this presidential election. And with Mr. Obama's wide financial advantage, it's clear that money is playing a bigger role than ever and candidates are not competing on equal footing.

Ironically, the victim of this broken system is one of its principal architects -- Mr. McCain. He helped craft the Bipartisan Campaign Finance Reform along with Sen. Russ Feingold in 2002.

No presidential candidate will ever take public financing in the general election again and risk being outspent as badly as Mr. McCain was this year. And even liberals, who have long denied that money is political speech that should be protected by First Amendment, may now be forced to admit that their donations to Mr. Obama were a form of political expression.

It is time to trust the American people and remove limits on how much an individual can donate to a campaign. By doing that, we can design a system that will be much more open by requiring candidates to frequently report donations in an online database. Technology makes this possible. Such a system would be easier for journalists to use and would therefore make it more likely that fund raising would be included in news coverage. That would give voters the tools they need to determine if a candidate is getting too much from unattractive people.

Rather than showing the success of a new style of post-partisan politics, Mr. Obama's victory may show the enduring truth of the old Chicago Golden Rule: He who has the gold rules

California's rolling budget fiasco - spending the state to ruin

Arnold's 'Ishtar' - The Governor surrenders on taxes.

Excerpts:

A big part of the problem [in California] is the Terminator himself. When Mr. Schwarzenegger ran for Governor in 2003 amid the last California fiscal crisis, he promised a new ethic of spending restraint, no new taxes and less debt financing. Six years later none of that has happened. Once California crawled out of that last fiscal emergency, Mr. Schwarzenegger made one more stab at budget reform, got clobbered at the ballot box, and has since given in and let the budget grow to $144.5 billion -- a 40% hike over four years.

...

Mr. Schwarzenegger even boasts that his tax plan will "invigorate our economy and generate jobs." Well, perhaps jobs for moving van companies to help people flee to better tax climes. The sales tax could not be more poorly timed: Golden State retailers have already seen a rapid slowdown in sales. The last time the sales tax was raised, in 1991, California's retail sales slumped to their lowest ebb in 30 years.

The only politicians standing against the media-political consensus for higher taxes are Republicans in the Assembly. Under California law, a two-thirds vote by the legislature is needed to pass a tax increase. Assembly leader Mike Villines has it right when he says that "We just believe that higher taxes will lead to more businesses leaving the state and encourage even more spending."

Democrats refuse even to trim the budget. Neither they nor the Governor have proposed shutting down a single government program. Many California voters also seem to live under this delusion that government is free. The state has a debt of $60 billion and the worst credit rating among the 50 states. But in November Californians approved a $10 billion bond for a high-speed rail system that will add $600 million in annual debt servicing costs to the state budget every year until the middle of the century.

...

We'd suggest Mr. Schwarzenegger and the rest of the Sacramento establishment take a field trip to New Hampshire. That state maintains better schools, roads and general public services than California, though the Live Free or Die state has no sales or income tax. Meanwhile, California labors under the second highest income tax rates, and the politicians now want to impose the fourth highest sales tax. And the state still has the largest budget deficit in the nation.

The real crisis isn't a lack of tax dollars. It's a political class that is spending that beautiful state to ruin.

Comment: Michigan's another state that taxed small businesses to emigrate: Michigan: A Taxing Place To Do Business. Note author's comments on Detriot:

Our state’s largest city still has a per capita tax burden far higher than the average for Michigan municipalities. It is burdened by bloated bureaucracy, corruption and cronyism, and old ways of thinking and doing things. Instead of being the engine for Michigan’s growth that it ought to be, it’s too much of a drain on both the economy and state taxes. Indianapolis, a city that works, has one-fourth the bureaucracy per citizen and spends about a third as much. Mackinac Center recommendations for fixing Detroit would go a long way to improving Michigan’s overall tax and business climate.