House says First Amendment not for bloggers

House Says Bloggers Don't Count As Journalists Jason Lee Miller | Staff Writer Forgets the First Amendment Two versions of a bill in Congress would enshrine a journalist’s right to keep his or her sources confidential, effectively banning the government from forcing journalists to reveal whistleblowers. One version though--the House version--gives an incredibly stupid definition of journalist that excludes not only bloggers, but freelancers, independents, and nonprofit journalists as well. For the most part, the Senate and House agree on what a journalist’s duties are and what journalism entails: "the regular gathering, preparing, collecting, photography, recording, writing, editing, reporting, or publishing of news or information that concerns local, national, or international events or other matters of public interest for dissemination to the public." But only the House version, which has more cosponsors than brains apparently, adds to that definition: "for a substantial portion of the person's livelihood or for substantial financial gain and includes a supervisor, employer, parent, subsidiary, or affiliate of such covered person." So, in effect, if journalism is a hobby or passion you do as a public service, or if you are a freelancer without a boss--both of which easily describe a blogger--then the government reserves the right to force you to tell them who told you something, much like the government tried to do with New York Times journalist Judy Miller under the Bush Administration. Apparently our "representatives” have a real problem with citizen journalism done for the sake of journalism and for the good of democracy, and believe protecting the "free flow of information" is only reserved for officially approved press. No bloggers, no patriotic radicals, no underground agitator pamphleteers like the ones who actually founded and fought for this country to begin with. Hate to (once again) school our freaking government about the freaking Constitution they freaking pledge to uphold, but this is Congress making a law abridging the freedom of the press, a violation of the First Amendment. I might be more sympathetic if they missed one further down the list, BUT IT’S THE FIRST FREAKING ONE. By defining who is and who is not considered press, and therefore deciding who is entitled to special protection--in this case, especially, where they base it on who does it for money and who does it for passion (hint: the latter one is more likely to dig up something that matters)--the House of Representatives are doing us all a huge disservice if they don’t change that language.

Questions about Global Currency

Is a global currency possible as a solution to the global banking crises? If so, how would that work? Would we trade-in our tired, worn-out and worthless dollars, euros, francs and pounds - getting a percentage worth of the new currency? Like a in a bankruptcy, where vendors are only paid a fraction of what they're owed, would we have to trade in the value of out dollars for the new and lower value money? How are the going to do that?

Monopoly Game Question

Question: How do you know when the Monopoly Game is over? Answer: When somebody has all the money. So then, we remove the players from the board, ask who wants to play, distribute the money to the bank and start all over again. Sound familiar?

Bernanke Burns More Tax Payer Billions in Banks Capital Assistance Program

Bernanke has fired yet another misguided missile to stabilize the banking system. His new program is called the Capital Assistance Program and supposedly it will restore confidence in banks and get them to lend. Here is a description of the program:

The purpose of the CAP is to restore confidence throughout the financial system that the nation's largest banking institutions have a sufficient capital cushion against larger than expected future losses, should they occur due to a more severe economic environment, and to support lending to creditworthy borrowers. Terms

• Capital provided under the CAP will be in the form of a preferred security that is convertible into common equity at a 10 percent discount to the price prevailing prior to February 9th.
• CAP securities will carry a 9 percent dividend yield and would be convertible at the issuer's option (subject to the approval of their regulator).
• After 7 years, the security would automatically convert into common equity if not redeemed or converted before that date.
• The instrument is designed to give banks the incentive to replace USG-provided capital with private capital or to redeem the USG capital when conditions permit.
• With supervisory approval, banks will be able to request capital under the CAP in addition to their existing CPP preferred stock.
• With supervisory approval, banks will also be allowed to apply to exchange the existing CPP preferred stock for the new CAP instrument.

CAP Facts 1) Amazingly CAP fact sheet states the securities will yield a 9% dividend. However, any bank troubled enough to need the CAP is likewise too troubled to be able to pay a 9% dividend. Banks can't get a 9% return on borrowed money everyone knows it. Instead, expect preferred shares to be converted to common at inflated prices. 2) Digging a bit deeper into the fact sheet we see the " Conversion price is 90% of the average closing price for the common stock for the 20 trading day period ending February 9, 2009. " Think February 9 was selected at random? Think again. The first box in the charts below is the 20 days ending February 9. Compare to what has happened since. Click Here to Read Full Article

Uncle Sam Bank not open for bank business, yet

By Emily Kaiser and Pedro da Costa - Analysis

WASHINGTON/NEW YORK (Reuters) - Just as Wall Street was coming to grips with the notion that bank nationalization might be inevitable, U.S. officials have come out strongly against an idea that strikes at the heart of America's capitalist model.

This does not mean the banks will escape Uncle Sam's grip. Many analysts predict that, with the economic outlook going from bad to worse, prospects are dim for reversing bank sector losses that have all but paralyzed global credit markets.

...Read Full Article

Stimulus Brings Entrepreneurial Opportunity

Bruce Jacobs, acclaimed start up business genius observes: "With the coming tax cuts, personal shoppers will be in high demand. Americans will have more money and they will need help spending it." Bruce offers many interesting and cutting edge ideas on his morning talk show in Phoenix (KFYI).

WASHINGTON - President Barack Obama's assurance Tuesday that his mortgage-relief plan will only benefit deserving homeowners appears to be a stretch.

Even officials in his administration, many supporters of the plan in Congress and the Federal Reserve chairman expect some of that money will go to people who should have known better than to buy that huge house.

The president glossed over a number of complex realities in delivering his speech to Congress and a nation hungry for economic salvation.

---

A look at some of his assertions:

OBAMA: "We have launched a housing plan that will help responsible families facing the threat of foreclosure lower their monthly payments and refinance their mortgages. It's a plan that won't help speculators or that neighbor down the street who bought a house he could never hope to afford, but it will help millions of Americans who are struggling with declining home values."

THE FACTS: If the administration has come up with a way to ensure money does not go to home buyers who used bad judgment, it hasn't announced it.

Defending the program Tuesday at a Senate hearing, Federal Reserve Chairman Ben Bernanke said it's important to save some of those people for the greater good. He likened it to calling the fire department to put out a blaze caused by someone smoking in bed.

"I think the smart way to deal with a situation like that is to put out the fire, save him from his own consequences of his own action but then, going forward, enact penalties and set tougher rules about smoking in bed."

Similarly, the head of the Federal Deposit Insurance Corp. suggested this month it's not likely aid will be denied to all homeowners who overstated their income or assets to get a mortgage they couldn't afford.

"I think it's just simply impractical to try to do a forensic analysis of each and every one of these delinquent loans," Sheila Bair told National Public Radio.

Click for related content

Promises Made: Check Obama's previous comments on issues

OBAMA: "We have already identified $2 trillion in savings over the next decade."

THE FACTS: Although 10-year projections are common in government, they don't mean much. And at times, they are a way for a president to pass on the most painful steps to his successor, by putting off big tax increases or spending cuts until someone else is in the White House.

Obama only has a real say on spending during the four years of his term. He may not be president after that and he certainly won't be 10 years from now.

OBAMA: "Regulations were gutted for the sake of a quick profit at the expense of a healthy market. People bought homes they knew they couldn't afford from banks and lenders who pushed those bad loans anyway. And all the while, critical debates and difficult decisions were put off for some other time on some other day."

THE FACTS: This may be so, but it isn't only Republicans who pushed for deregulation of the financial industries. The Clinton administration championed an easing of banking regulations, including legislation that ended the barrier between regular banks and Wall Street banks. That led to a deregulation that kept regular banks under tight federal regulation but extended lax regulation of Wall Street banks. Clinton Treasury Secretary Robert Rubin, later an economic adviser to candidate Obama, was in the forefront in pushing for this deregulation.

Click for related content

Financial Crises Update for 02-24-09

 - Markets will react to a major speech by President Barack Obama given to
Congress at 9:00 p.m. EST (0200 GMT Wednesday) The president attempted to
strike a balance between grim warnings of economic distress and
reassuring words that Americans can weather the crisis.

 - Fed Chairman Ben Bernanke warns "severe" U.S. recession
could drag into next year, but suggests big banks would survive
without being nationalized, prompting jump in U.S. stocks

 - Bernanke says regulators readying "stress tests" for the
largest U.S. banks to see if they can lend under unexpected
economic strains

 - U.S. home prices plunge at record pace in December and
consumer confidence hits new low in February.

 - U.S. government to launch bank rescue program Wednesday

 - German business confidence index at lowest since 1990

 - Japan investor sentiment slumps to record low

 - Most Americans support Obama's economic plans -  polls indicate

 - China aims to merge automakers as economy falters

                      MARKETS

 - U.S. stocks .N jump, with S&P 500 .GSPF index up
31.03 points or 4.17 percent to 774.36, after hitting 12-year
lows on Monday. The Dow Jones industrial average .DJI rose
249.22 points or 3.5 percent to 7,364.00 and the Nasdaq
Composite Index .IXIC gained 55.31 points or 3.99 percent to
1,443.03.

 - European shares down 1.5 percent, after Asian declines

 - Japan's Nikkei .N225 down 1.5 percent, China stocks
tumble 4.6 percent .SSEC

 - Oil prices rise 4 percent on Tuesday, tracking Wall
Street bounce, with U.S. crude CLc1 up $1.52 to $39.96 a
barrel and London Brent crude LC0c1 rising $1.51 to $42.50.

                       QUOTES

 "While our economy may be weakened and our confidence
shaken, though we are living through difficult and uncertain
times, tonight I want every American to know this: We will
rebuild, we will recover. And the United States of America will
emerge stronger than before." - President Obama in advance
excerpts of his speech to Congress.

 "If actions taken by the administration, the Congress, and
the Federal Reserve are successful in restoring some measure of
financial stability -- and only if that is the case, in my view
-- there is a reasonable prospect that the current recession
will end in 2009 and that 2010 will be a year of recovery." -
Bernanke tells Senate Banking Committee.

 "If I thought the banks were irrevocably damaged, I would
have a different view, but I do believe our major banks have
significant franchise values. There is no commitment by any
means to never shut down a big bank, absolutely not, but I do
believe that the major banks we have now can be stabilized." -
Bernanke to Senate committee.

 The data "suggests, unfortunately, that we still haven't
found the bottom for the economy." - Zach Pandl, economist at
Nomura Securities International in New York.

 "Bernanke certainly paints a more dire picture than the
market was initially anticipating. He is talking about a
non-recovery in 2010 if markets and banks don't stabilize." -
Kevin Flanagan, fixed-income strategist for Global Wealth
Management Morgan Stanley.

 "If we confront this crisis without also confronting the
deficits that helped cause it, we risk sinking into another
crisis down the road." - Obama at opening of White House summit
on Fiscal Responsibility

                         DIARY

 TUESDAY, Feb. 24

 WASHINGTON - President Obama to address joint session of
Congress on the $787 billion U.S. economic stimulus package

 WASHINGTON - Japanese Prime Minister Aso meets Obama

 ROME - Italian-French Summit. Prime Minister Berlusconi and
President Sarkozy expected to attend

 MADRID/BRUSSELS - Deadline for Spain to reply to European
Commission over plan to aid its auto sector

 WEDNESDAY, Feb. 25

 WASHINGTON - National Association of Realtors issues
Existing Home Sales for January

 WASHINGTON - Labor Department releases monthly report on
mass layoffs

 WASHINGTON - Energy Information Administration issues
weekly petroleum stocks and output data

 THURSDAY, Feb. 26

 WASHINGTON - U.S. President Obama to release first budget
proposal

 WASHINGTON - Senate Finance Committee to hold a hearing on
the nomination of former Dallas Mayor Ron Kirk to be U.S. Trade
Representative
(Compiled by Equities Desk Europe, +44 207 542 5599)

AMEX Pays Customers - To Cancel!

This economy brings us new surprises every day. And just when we think we've seen it all ... we haven't.

Cancel The Card; Reap The Rewards.

For some American Express cardholders, membership has $300 worth of privileges: AmEx is paying card holders to close their accounts.

American Express Co (AXP), battered by mounting credit card losses, is offering $300 to a limited number of U.S. card holders who pay off their balances and close their accounts, the company said on Monday. "We sent the offer out to a select number of card members," said Molly Faust, a company spokeswoman. "We are looking at different ways that we can manage credit risk based on the costumers overall credit profile." The company did not say how many card holders would receive the offer and did not disclose the total of their card balances. Card holders have until the end of February to accept the offer and must close their accounts in March or April. Each card holder will receive a $300 pre-paid American Express card. American Express, often seen as catering to relatively wealthy customers and companies, has been expanding its credit card business in recent years by reaching out to a wider range of clients. But that strategy has backfired. The company's earnings tumbled in the fourth quarter as credit losses jumped and debt-burdened consumers slashed spending. In addition, American Express reported last week that credit card delinquencies rose in January more than analysts expected, as U.S. unemployment increased and the global economy deteriorated.

American Express needs to reconsider some of its trademarked slogans. Revised Slogans

• "Don't Leave Home Without It" needs to become "Don't Leave Home With It".
• For our Canadian friends, "Ne Partez Pas Sans Elle" needs to become "Ne Partez Pas Avec Elle"
• "Lifetime Membership" needs to be changed to "Lifetime Membership Maybe"
• "Use The Card. Reap The Rewards" is clearly outdated. "Cancel The Card; Reap The Rewards" more accurately describes the current state of affairs.

Indeed, "Membership Has Its Privileges", a $300 bonus bonanza to anyone politely asked to leave. Read other postings by Mike "Mish" Shedlock

Plea To Obama On Craig's List

My wife, who reads Craig's List every evening, happened upon this unusual post, addressed to President Obama. I was taken with not only with the passion of the writing but with the common sense appeal to Obama as to what being an American is all about. Please take a moment to read it. I hope that you are inspired to post a comment here or to the writer (see link below).

Dear Mr President

Reply to: comm-1047703020@craigslist.org Date: 2009-02-23, 6:07PM Mr President, We are at odds. I don't believe the American people are ready to be under the control of and fed by the government. I agree we are in a mess and yes we became complacent and greedy and we have taken for granted our liberties, but we are Americans. We are people from all over the world who came to this soil to be free of government control via intervention of our lives. We must be allowed to suffer the consequences of our actions so that we may get up and stand tall again. Your intentions, however noble, are in reality, a temporary postponement of the inevitable if we continue on this path. If Americans fail they will get back up, we are a people of free thinkers and a determination beyond any people of any nation, we are those who came to America not to flee Government but to create one that is for the people by the people.... Wake up Mr President ...don't make this country a government by the government for the government, as you are doing so, we will perish as a nation if this continues, and we will become a people who cannot feed it self without the government. Americans are on the verge of a meltdown. We will not stand for continuous failing of the government for its people. Americans will revolt and it will not be pretty. And we will not stand for Government to have a say so in our daily lives. You are to lead by example not by control. We will die to preserve the American Way of life, not the Government way of life.

The Bank Of The United States: Formerly Citigroup

The article states that taxpayers could own up to 40% of the bank's common stock, further diluting the value of its shares. As bank stocks are falling I've been wondering which would be first to to come under government control. Looks like we have the answer. Will Bank of America be next? My guess is yes. Watching the stocks of the major banking institutions around the world, it's becoming increasing apparent to me that they are flat broke. Does anybody know if any of them are trying to sell their assets yet? Here's the article as it appears in Monday's Wall Street Journal href="http://online.wsj.com/article/SB123535148618845005.html">

Eastern European Debt Defaults

Western European banks have lent trillions to Eastern Europe. Defaults would be so large that Europe could see a depression-like economy almost overnight. I found several articles about this on the internet and have heard a few talk show hosts speak about it. One of the more shocking evaluations of the situation appears below. Mike Whitney writes: Eastern Europe is about to blow. If it does, it could take much of the EU with it. It's an emergency situation but there are no easy solutions. The IMF doesn't have the resources for a bailout of this size and the recession is spreading faster than relief efforts can be organized. Finance ministers and central bankers are running in circles trying to put out one fire after another. Its only a matter of time before they are overtaken by events. If one country is allowed to default, the dominoes could begin to tumble through the whole region. This could trigger dramatic changes in the political landscape. The rise of fascism is no longer out of the question. Link to full article http://www.marketoracle.co.uk/Article8925.html