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Saturday, December 18, 2010
Armed Robbery At Family Dollar
There has been an armed robbery at the Family Dollar on Rt. 13 near Pep Boys. police aren't even on the scene yet. More to come....
Sheriff's Department Breaks Up Huge Party & Fight
We've just been informed the Sheriff's Department was called to the dirt road behind Sam's Club where a huge party was going on. A fight broke out and they have called in the Salisbury Police Department and the Maryland State Police. More to come.
GOP Bid To Change U.S.-Russia Nuclear Treaty Fails
WASHINGTON — Democrats have deflected an attempt by Republicans to require U.S. and Russian negotiators to reopen a nuclear arms treaty being debated in the Senate.
But the 37-59 vote against the measure by Arizona Sen. John McCain exposes doubts about whether the Senate can ratify the treaty as written before a new, more Republican Congress assumes power in January.
Treaties require a two-thirds majority of those voting in the Senate, or 67 votes if all 100 senators vote. Thirty-seven senators on Saturday voted for McCain's amendment to send the treaty back.
Republicans want to strike a reference in the treaty's preamble to missile defense systems. They say the preamble, as written, would allow Russia to withdraw from the pact if the U.S. develops a missile defense system in Europe.
Dog Found On Woodland Road
UPDATE: This dog has been turned over to the Salisbury Animal Control. We've been told by the individual that rescued this dog, if you'd like to adopt the dog they will take care of the fees to do so. The dog is at the Wicomico Humane Society.
Please call 410-430-0644 or 410-742-6220 if you own this dog.
4 In 10 Americans Still Hold Creationist Views
The percentage is declining, however, from a 1999 high of 47 percent
If you're in a room of 100 people, odds are likely about 40 think God created humans about 10,000 years ago, part of a philosophy called creationism, according to a Gallup poll reported Friday (Dec. 17). That number is slightly lower than in years past and down from a high of 47 percent in both 1993 and 1999.
And 38 percent of Americans, the poll estimates, believe God guided the process that brought humans from "cavemen" to today's incarnation over millions of years, while 16 percent think humans evolved over millions of years, without any divine intervention.
This secular view, while a relatively small number, is up from 9 percent in 1982, according to Gallup.
Like most American attitudes, Gallup wrote, views on human origins have political consequences. For instance, debates and clashes over which explanations for human origins should be included in school textbooks have persisted for decades. And with 40 percent of Americans continuing to hold to an anti-evolutionary belief about the origin of humans, it is highly likely that these types of debates will continue, according to Gallup.
The findings also stand in stark contrast to another announcement Friday, this one by John Holdren, director of the White House Office of Science and Technology Policy. The memo was issued to federal science agencies to guide them in making rules to ensure scientific integrity.
GO HERE to read more.
Senate Advances Bill To Lift Military Gay Ban
63-33 vote all but guarantees passage of legislation overturning 17-year 'don't ask, don't tell' rule that banned openly gay troops from serving.
GO HERE to read more.
GO HERE to read more.
Woman Killed In Salisbury Last Night
A 65 Y/O woman was shot in her home on Dale Road, off Jersey Rd. some time last evening. MSP is investigating. More to come..
The Naked Truth About Royal Farms In Hebron
This morning Wicomico County Sheriff's Deputies were called out to the Royal Farms on Rt. 50 in Hebron.
It turns out, a young woman entered the story and started stripping. In fact, she stripped everything until she was completely naked. Once naked she started doing cartwheels in the store. She then went over to the fruit, opened it and started pouring it over her body. She then started doing cartwheels once again until Sheriff's Deputies arrived and arrested her.
I'm pretty confident we will not be receiving store video but to those who I know who were in the store at the time, they had a hard time getting their cell phones out of their pockets to get pictures.
It turns out, a young woman entered the story and started stripping. In fact, she stripped everything until she was completely naked. Once naked she started doing cartwheels in the store. She then went over to the fruit, opened it and started pouring it over her body. She then started doing cartwheels once again until Sheriff's Deputies arrived and arrested her.
I'm pretty confident we will not be receiving store video but to those who I know who were in the store at the time, they had a hard time getting their cell phones out of their pockets to get pictures.
Salisbury Police Department Press Releases
On December 15, 2010 at approximately 10:47 pm, Detectives of the Salisbury Police arrested the below listed three (3) suspects on charges of breaking into a business on Industrial Parkway and destroying the interior of the business during a party. In July of 2010 Officers of the Salisbury Police received a call to respond to a business in the Northwood Industrial Park for the report of a break in and malicious destruction of property. Upon arrival the officers met with representatives of Trinity Sterile who were in the process of a construction project involving the interior of the business. The officers observed that unknown suspect(s) had broken into the business and had destroyed the interior, punching holes in the walls and pulling light fixtures from the ceiling. Representatives from the business advised that the cost of the damage totaled over $ 21,000.00. Located within the damaged building were large amounts of empty beer and liquor containers.
The investigation by Salisbury Detectives revealed that the below listed suspects had broken into the business for the purpose of having a party for themselves and friends and during the party had caused the damage and littering.
ARRESTED #1: Scott Leroy Cunningham, 19 years of age
Salisbury, Maryland
ARRESTED #2: Anthony Robert Bowser, 18 years of age
Salisbury, Maryland
ARRESTED #3: Juvenile, 17 years of age
Princess Anne, Maryland
CHARGES (All): Fourth degree burglary
Malicious destruction of property
DISPOSITION: Suspect # 1 and # 2 released to Central
Booking
Suspect # 3 released to guardian
CC # 201000026920
On December 15, 2010 at approximately 8:15 pm, Officers of the Salisbury Police received a call to respond to a residence on the five hundred (500) block of Jefferson Street for the report of an assault. Upon arrival the officers met with an adult male victim who advised that during a domestic type argument, the below listed suspect obtained a kitchen knife and attempted to stab the victim. The victim was not injured.
ARRESTED: Timika Lee White, 30 years of age
Salisbury, Maryland
CHARGES: First degree assault
Second degree assault
Reckless endangerment
Possession of a deadly weapon
DISPOSITION: Released to Central Booking
CC # 201000048942
The investigation by Salisbury Detectives revealed that the below listed suspects had broken into the business for the purpose of having a party for themselves and friends and during the party had caused the damage and littering.
ARRESTED #1: Scott Leroy Cunningham, 19 years of age
Salisbury, Maryland
ARRESTED #2: Anthony Robert Bowser, 18 years of age
Salisbury, Maryland
ARRESTED #3: Juvenile, 17 years of age
Princess Anne, Maryland
CHARGES (All): Fourth degree burglary
Malicious destruction of property
DISPOSITION: Suspect # 1 and # 2 released to Central
Booking
Suspect # 3 released to guardian
CC # 201000026920
On December 15, 2010 at approximately 8:15 pm, Officers of the Salisbury Police received a call to respond to a residence on the five hundred (500) block of Jefferson Street for the report of an assault. Upon arrival the officers met with an adult male victim who advised that during a domestic type argument, the below listed suspect obtained a kitchen knife and attempted to stab the victim. The victim was not injured.
ARRESTED: Timika Lee White, 30 years of age
Salisbury, Maryland
CHARGES: First degree assault
Second degree assault
Reckless endangerment
Possession of a deadly weapon
DISPOSITION: Released to Central Booking
CC # 201000048942
Kendel Ehrlich: Will She Or Won't She?
ANNAPOLIS - It was election night, and the losing candidate for governor devoted several minutes of his concession speech to the woman standing behind him on stage.
"I married the right girl -- Kendel Ehrlich -- trust me," Bob Ehrlich said. "She loves politics, college football, and golf, you know, come on."
That night, former governor Ehrlich said that his own political career was coming to a close. But what of his wife, a political enthusiast herself? Would she pick up the torch and run for a seat?
Those acquainted with her over the years -- as well as GOP leaders in the state and Anne Arundel County -- said she has all the qualities of an electable candidate. And some say they'd like to see her run.
But in a recent interview at her home in Annapolis, Kendel Ehrlich said that public office isn't in the foreseeable future, although she did not completely dismiss the possibility.
"I'm certainly not discounting it sometime in my future, but I'm certainly really focused right now on what I'm doing -- being with the kids and the radio -- at this point in time," she said.
GOP leaders, coworkers, former employees and friends all say Ehrlich never actually told them of political aspirations, but they wouldn't be surprised if she made a run, either.
"If she decided to run someday, and I hope she would, she would be an amazing candidate," said Derek Fink, who was a press secretary for Kendel Ehrlich in her final years as Maryland's first lady.
"She's a strong leader. She's a very positive person ... I can tell you she's genuine. She really does believe in the issues she takes on," said Fink, who was elected last month to Anne Arundel county council.
If Ehrlich does run for a seat, she'd already be accustomed to the political spotlight, which she was immediately introduced to 20 years ago when she started dating Bob Ehrlich, then a state legislator running for his second term.
GO HERE to read more.
Congress On Brink Of Repealing Military's 'Don't Ask' Policy
The Senate is preparing a landmark vote to allow gays to serve openly in the military for the first time in U.S. history, testing Republican opposition and putting Democrats within striking distance of overturning 'don't ask, don't tell.'
GO HERE to read more.
GO HERE to read more.
U.S. Finds Little BP Oil On Seafloor; Some Don't Buy It
'We went to the same place and saw a lot of oil,' expert says of one area
NEW ORLEANS — Federal scientists said Friday extensive sampling of the Gulf of Mexico seafloor found oil in quantities too small to collect and in concentrations below harmful levels, except in the area surrounding the BP well.
The Coast Guard's report contrasts independent scientists who say oil from the BP spill extensively damaged the seafloor and killed coral, sea fans and many bottom-dwelling animals like tubeworms.
"We are not finding any recoverable amounts of oil" on the seafloor, Rear Adm. Paul Zukunft said. "We are dealing with barely detectable amounts of oil in the parts per billion in many places."
He said the tiny amounts of oil fall well under pollution limits, except for the area within 1 1/2 miles of the BP well, where oil is bound with drilling mud pumped into the BP well to cap it, Zukunft said.
The BP well, located about 50 miles offshore from Louisiana, was plugged in September, but not before more than 170 million gallons of oil leaked into the Gulf.
Still, government scientists said Friday's report was a guide for the Coast Guard and cleanup crews, not an assessment of the spill's damage to the ecosystem.
GO HERE to read more.
Walmart Manager Opens Up His Own Business... With $250K Worth Of Allegedly Stolen Items
As avaricious as Walmart is, we're sure that the company would be at least mildly amused at the idea of one of its store managers taking the initiative to begin his own business selling similar products. But we're guessing that Big W isn't exactly thrilled if said manager uses $250,000 worth of stolen Walmart property as his inventory.
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Billionaire Widow Gives $7.2 Billion Back To Madoff Victims
Victims of douchebag-supreme Bernie Madoff's Ponzi scheme are getting an early Christmas present. The widow of one of Madoff's biggest beneficiaries has agreed to return $7.2 billion in proceeds to those who were defrauded.
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Con Ed Won't Change The Name On My Electric Bill Because I'm Gay
John recently married his significant other in Vermont and the couple hasn't had any problem getting their names legally changed at the bank, the DMV, the Board of Elections, the Social Security Administration, or even their cellphone provider. All they had left to do was change the name on their electric bill at the Con Ed office in Brooklyn. Should be simple enough, right?
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Highlighted Events This Week in Wicomico Schools
Tuesday, Dec. 14, 1:30 p.m.
Monthly Meeting of Wicomico County Board of Education
Board of Education Auditorium
The December meeting of the Wicomico County Board of Education will be held at 1:30 p.m. Tuesday, Dec. 14, in the Board of Education auditorium. The agenda will be posted by Friday, Dec. 10, at www.wcboe.org. 410-677-4561.
Tuesday, Dec. 14
Holiday Hop for Prek Students and Families
Wicomico County Library
Pre-Kindergarten Three and Four Year Olds and Salisbury II Head Start are invited to attend the Judy Center sponsored partner event at the Wicomico County Library at 6 p.m. Tuesday, Dec. 14. Students will sing and dance with Miss Rosie and participate in interactive stories told by Miss Barb. Students and parents/guardians will be served apple cider, holiday cookies and candy canes. Each child in attendance will receive a free book to take home. 410-677-5900.
Wednesday, Dec. 15
Holidays Around the World
Wicomico Early Learning Center
Pre-Kindergarten Three and Four Year Olds and Salisbury II Head Start will participate in the Holidays Around the World Parent/Child Event beginning at 9:45 a.m. at the Wicomico Early Learning Center. Students will travel to stations located throughout the school to participate in science, reading, math, art, social studies and cooking activities. Families are invited to attend with their child. This activity is a Judy Center funded event. 410-677-5900.
Wednesday, Dec. 15
Superintendent’s Open Door Session
Board of Education Office
A Superintendent’s Open Door Session will take place Wednesday, Dec. 15, from 4-6 p.m., in the Administrative Conference Room at the Board of Education Office. The Open Door Sessions are opportunities to meet one-on-one with Superintendent of Schools Dr. John Fredericksen to discuss any issue, idea or concern. No appointments are made: Anyone interested in meeting with the superintendent should come to the Board office that day and sign in. Other Superintendent Open Door Sessions for this year are scheduled for Jan. 19, Feb. 23, March 23, April 27 and May 25. 410-677-4495.
POSTPONED, TO BE RESCHEDULED
Friday, Dec. 17
3rd annual Operation SPEAK Oratorical Competition for Fifth-Graders from Prince Street, Pinehurst and Glen Avenue Schools
At Prince Street Elementary School
Monthly Meeting of Wicomico County Board of Education
Board of Education Auditorium
The December meeting of the Wicomico County Board of Education will be held at 1:30 p.m. Tuesday, Dec. 14, in the Board of Education auditorium. The agenda will be posted by Friday, Dec. 10, at www.wcboe.org. 410-677-4561.
Tuesday, Dec. 14
Holiday Hop for Prek Students and Families
Wicomico County Library
Pre-Kindergarten Three and Four Year Olds and Salisbury II Head Start are invited to attend the Judy Center sponsored partner event at the Wicomico County Library at 6 p.m. Tuesday, Dec. 14. Students will sing and dance with Miss Rosie and participate in interactive stories told by Miss Barb. Students and parents/guardians will be served apple cider, holiday cookies and candy canes. Each child in attendance will receive a free book to take home. 410-677-5900.
Wednesday, Dec. 15
Holidays Around the World
Wicomico Early Learning Center
Pre-Kindergarten Three and Four Year Olds and Salisbury II Head Start will participate in the Holidays Around the World Parent/Child Event beginning at 9:45 a.m. at the Wicomico Early Learning Center. Students will travel to stations located throughout the school to participate in science, reading, math, art, social studies and cooking activities. Families are invited to attend with their child. This activity is a Judy Center funded event. 410-677-5900.
Wednesday, Dec. 15
Superintendent’s Open Door Session
Board of Education Office
A Superintendent’s Open Door Session will take place Wednesday, Dec. 15, from 4-6 p.m., in the Administrative Conference Room at the Board of Education Office. The Open Door Sessions are opportunities to meet one-on-one with Superintendent of Schools Dr. John Fredericksen to discuss any issue, idea or concern. No appointments are made: Anyone interested in meeting with the superintendent should come to the Board office that day and sign in. Other Superintendent Open Door Sessions for this year are scheduled for Jan. 19, Feb. 23, March 23, April 27 and May 25. 410-677-4495.
POSTPONED, TO BE RESCHEDULED
Friday, Dec. 17
3rd annual Operation SPEAK Oratorical Competition for Fifth-Graders from Prince Street, Pinehurst and Glen Avenue Schools
At Prince Street Elementary School
News from the December Board Meeting of the Wicomico County Board of Education
The Wicomico County Board of Education at its Dec. 14 monthly meeting:
Public Comments
Heard from a community member interested in how the school system handles disruptive students. He told the Board the issue must be addressed if the rest of the students are going to get the education and training they need to succeed beyond high school. (Please look below for information on the Connections program for persistently violent and disruptive youth, and the Choices alternative program.)
Heard from a community member that the Board of Education and school system should have a clear policy on naming things other than facilities (such as the current community-generated proposal to name the field at Wicomico County Stadium for the late Charles R. Berry) so that requests could be addressed according to policy. In his Superintendent’s Report (below), Superintendent of Schools Dr. John Fredericksen said the question of whether to name the field at County Stadium the Charles R. Berry Field, after the late coach and athletic supervisor, is an administrative and not Board member because a field is not a facility and is not covered by the Board’s policy on naming facilities. Through Dec. 20, comments on this particular naming proposal, as well as the practice of naming places such as fields, gyms, etc. for individuals, are being taken by voicemail message at 410-677-5251, by email at comments@wcboe.org, and by mail to the superintendent’s attention at Wicomico County Public Schools, PO Box 1538, Salisbury, Md. 21802. Dr. Fredericksen said he isn’t counting votes, but does want to hear people’s thoughts on naming.
Superintendent’s Report
Heard from Superintendent Dr. Fredericksen that:
The school system’s budget team planned to meet as long as necessary after the Board meeting to draft a response to a legislative proposal on teacher pension costs. Dr. Fredericksen said the proposal for the state to pass 50 percent of teacher pension costs to counties could lead to an additional $7 million in cuts to the school system budget, on top of cuts already anticipated. The financial impact of this proposal would be “monumental” on the school system, he said. The school system anticipated the possibility of having to pick up 5 or 10 percent of pension costs, but 50 percent is “huge.” Board member Ronald Willey emphasized that while the 50 percent proposal is alarming, it is at this time only a proposal from one legislator.
Wicomico’s Race to the Top plan submitted in November generated only one question from the state, and Wicomico is now awaiting word on approval of its plan, which details how $3.1 million in federal Race to the Top funds would be spent to improve Wicomico schools over the next four years.
The $825,000 the school system was told it would receive from the Education Jobs Bill may shrink to $80,000, as the state looks at using about 80 percent of the funds to help address state budget woes. The jobs bill money is to be used for class-size reduction and prekindergarten programs.
Work continues on the school vehicle contract, with a closed meeting on the Board next week to consider final details. A new school vehicle contract will be ready for a Board vote before the end of the 2010-11 school year.
A public comment last month about whether the cost of the Magnet Program is lower than the cost of other programs has been checked, and Dr. Fredericksen said it cost an additional $344,000 last year to provide the program and $224,000 this year, because there are fewer students enrolled. The school system has not realized any overall savings from the decrease in the size of the third-grade Magnet class, however; the $120,000 difference in the program cost from last year to this year is now allocated elsewhere in the budget, for teaching positions needed where the students are being served. Comparisons of the cost of the Magnet Program to Title I and the Choices alternative program are not valid, he said, because federal and state laws require the school system to provide those programs. The school system has examined the third-grade cohort again to ensure that no student who should have been provided the opportunity to participate in the Magnet Program was overlooked, and be believes no student was left out who should have qualified. Dr. Fredericksen said the school system believes there is a high degree of value to the Magnet Program, and that it is a “wonderful program and opportunity” for students who qualify and take advantage of the opportunity. The program also has a high degree of parental satisfaction and support. He said he believes the school system made the right decision when it raised the eligibility standard from the 85th percentile to the 90th percentile to make sure the program has only the students who will most benefit from the challenging activities.
The school system is continuing the process of seeking the full funding amount requested from the state for the Bennett Middle replacement project. In the first round of funding recommendations, the state was looking at not fully funding the request. Wicomico will appeal for full funding in January, as it is critically important to move forwarded on the project, keep Wicomico’s position in the funding line, and complete the replacement Bennett Middle so that the James M. Bennett High project can also be completed.
The City of Salisbury is planning additional meetings on the Onley Road/Division Street/Bateman Street intersection improvements.
GO HERE to read more.
Public Comments
Heard from a community member interested in how the school system handles disruptive students. He told the Board the issue must be addressed if the rest of the students are going to get the education and training they need to succeed beyond high school. (Please look below for information on the Connections program for persistently violent and disruptive youth, and the Choices alternative program.)
Heard from a community member that the Board of Education and school system should have a clear policy on naming things other than facilities (such as the current community-generated proposal to name the field at Wicomico County Stadium for the late Charles R. Berry) so that requests could be addressed according to policy. In his Superintendent’s Report (below), Superintendent of Schools Dr. John Fredericksen said the question of whether to name the field at County Stadium the Charles R. Berry Field, after the late coach and athletic supervisor, is an administrative and not Board member because a field is not a facility and is not covered by the Board’s policy on naming facilities. Through Dec. 20, comments on this particular naming proposal, as well as the practice of naming places such as fields, gyms, etc. for individuals, are being taken by voicemail message at 410-677-5251, by email at comments@wcboe.org, and by mail to the superintendent’s attention at Wicomico County Public Schools, PO Box 1538, Salisbury, Md. 21802. Dr. Fredericksen said he isn’t counting votes, but does want to hear people’s thoughts on naming.
Superintendent’s Report
Heard from Superintendent Dr. Fredericksen that:
The school system’s budget team planned to meet as long as necessary after the Board meeting to draft a response to a legislative proposal on teacher pension costs. Dr. Fredericksen said the proposal for the state to pass 50 percent of teacher pension costs to counties could lead to an additional $7 million in cuts to the school system budget, on top of cuts already anticipated. The financial impact of this proposal would be “monumental” on the school system, he said. The school system anticipated the possibility of having to pick up 5 or 10 percent of pension costs, but 50 percent is “huge.” Board member Ronald Willey emphasized that while the 50 percent proposal is alarming, it is at this time only a proposal from one legislator.
Wicomico’s Race to the Top plan submitted in November generated only one question from the state, and Wicomico is now awaiting word on approval of its plan, which details how $3.1 million in federal Race to the Top funds would be spent to improve Wicomico schools over the next four years.
The $825,000 the school system was told it would receive from the Education Jobs Bill may shrink to $80,000, as the state looks at using about 80 percent of the funds to help address state budget woes. The jobs bill money is to be used for class-size reduction and prekindergarten programs.
Work continues on the school vehicle contract, with a closed meeting on the Board next week to consider final details. A new school vehicle contract will be ready for a Board vote before the end of the 2010-11 school year.
A public comment last month about whether the cost of the Magnet Program is lower than the cost of other programs has been checked, and Dr. Fredericksen said it cost an additional $344,000 last year to provide the program and $224,000 this year, because there are fewer students enrolled. The school system has not realized any overall savings from the decrease in the size of the third-grade Magnet class, however; the $120,000 difference in the program cost from last year to this year is now allocated elsewhere in the budget, for teaching positions needed where the students are being served. Comparisons of the cost of the Magnet Program to Title I and the Choices alternative program are not valid, he said, because federal and state laws require the school system to provide those programs. The school system has examined the third-grade cohort again to ensure that no student who should have been provided the opportunity to participate in the Magnet Program was overlooked, and be believes no student was left out who should have qualified. Dr. Fredericksen said the school system believes there is a high degree of value to the Magnet Program, and that it is a “wonderful program and opportunity” for students who qualify and take advantage of the opportunity. The program also has a high degree of parental satisfaction and support. He said he believes the school system made the right decision when it raised the eligibility standard from the 85th percentile to the 90th percentile to make sure the program has only the students who will most benefit from the challenging activities.
The school system is continuing the process of seeking the full funding amount requested from the state for the Bennett Middle replacement project. In the first round of funding recommendations, the state was looking at not fully funding the request. Wicomico will appeal for full funding in January, as it is critically important to move forwarded on the project, keep Wicomico’s position in the funding line, and complete the replacement Bennett Middle so that the James M. Bennett High project can also be completed.
The City of Salisbury is planning additional meetings on the Onley Road/Division Street/Bateman Street intersection improvements.
GO HERE to read more.
EconomicPolicyJournal.com Totally Busted The Truth About Goldman's Bailout By The Fed.htm
Thanks to these spectacularly large taxpayer-funded bailouts, Goldman was able to continue “doing God’s Work” – as CEO Lloyd Blankfein infamously remarked – like the work of producing billion-dollar trading profits without ever suffering a single day of losses.
Thanks to the Fed’s massive, undisclosed assistance, Goldman Sachs managed to project an image of financial well-being, even while accessing tens of billions of dollars of direct assistance from the Federal Reserve.
By repaying its TARP loan, for example, Goldman wriggled out from under the nettlesome compensation limits imposed by TARP, while also conveying an image of financial strength. But this “strength” was illusory. Goldman repaid the TARP loans with funds it procured days earlier from the Federal Reserve. Then, over the ensuing months, Goldman recapitalized its balance sheet by selling tens of billions of dollars of mortgage-backed securities to the Fed.
And the public never knew anything about these activities until two weeks ago, when the Fed was forced to reveal them....
Secret bailouts do not merely benefit recipients; they also deceive investors into mistaking fantasy for fact. Such deceptions often punish honest investors, like the honest investors who sold short the shares of insolvent financial institutions early in 2009.
Some of these investors had done enough homework to understand that no private-market remedy could ride to the rescue of certain financial firms. Therefore, these investors sold short the shares of certain ailing institutions and waited for nature to take its course. But the course that nature would take would be shockingly unnatural. We now know why. The Federal Reserve altered the course of nature, and did so without telling anyone.
Many of the investors who sold short ailing financial firms in 2009 were alert to the possibility that bailouts by the Federal Reserve could change the calculus. In other words, the Fed could make the bearish case less bearish...at least temporarily. Therefore, many of these investors studied the Federal Reserve’s disclosures, as well as corporate press releases, in order to quantify the Fed’s influence.
Based on all available public disclosures, the story remained fairly grim into the spring of 2009. Accordingly, the short interest – i.e., number of shares sold short – on Goldman Sachs common stock hit a record 16.3 million shares on May 15, 2009 – about 3.3% of the public float. But over the ensuing six months, Goldman’s stock soared more than 30% – producing roughly $500 million in losses for those investors who had sold short its stock. Not surprisingly, the total short interest during that timeframe plummeted to less than 6 million shares, as short-sellers closed out their losing positions.
Was it just bad luck? Or was something more nefarious at work here?
Let the reader decide. But before deciding, let the reader carefully examine the chart below, while also carefully considering a selection of public announcements from Goldman Sachs during this timeframe.
Based upon contemporaneous public disclosures, Goldman Sachs was “forced” by the Federal Reserve to accept a $10 billion loan from the TARP facility in October 2008. But Goldman’s top officers repeatedly – and very publicly – bristled under the compensation limits the TARP loan imposed.
Therefore, as early as February 5, 2009, Goldman’s chief financial officer, David Viniar, remarked, “Operating our business without the government capital would be an easier thing to do. We’d be under less scrutiny...” And on February 11, 2009, CEO Blankfein magnanimously remarked, “We look forward to paying back the government’s investment so that money can be used elsewhere to support our economy.”
But at that exact moment, we now know, Goldman was operating its business with at least $25 billion of undisclosed “government capital.”
In April, 2009, The Wall Street Journal observed, “Goldman Sachs group Inc., frustrated at federally mandated pay caps, has been plotting for months to get out from under the government’s thumb... Goldman’s managers have a big incentive to escape the state’s clutches. Last year, 953 Goldman employees – nearly one in 30 – were paid in excess of $1 million apiece... But tight federal restrictions connected to the financial-sector bailout have severely crimp the Wall Street firm’s ability to offer such lavish pay this year.”
On May 7, 2009, a Goldman press release states: “We are pleased that the Federal Reserve’s Supervisory Capital Assessment Program has been completed... With respect to Goldman Sachs, the tests determined that the firm does not require further capital... We will soon repay the government’s investment from the TARP’s Capital Purchase Program.”
On June 17, 2009, Goldman finally got its wish, thanks to some timely, undisclosed assistance from the Federal Reserve. Goldman repaid its $10 billion TARP loan. But just six days before this announcement, Goldman sold $11 billion of MBS to the Fed. In other words, Goldman “repaid” the Treasury by secretly selling illiquid assets to the Fed.
One month later, Goldman’s CEO Lloyd Blankfein beamed, “We are grateful for the government efforts and are pleased that [the monies we repaid] can be used by the government to revitalize the economy, a priority in which we all have a common stake.”
As it turns out, the government continued to “revitalize” that small sliver of the economy known as Goldman Sachs. During the three months following Goldman’s re-payment of its $10 billion TARP loan, the Fed purchased $27 billion of MBS from Goldman. In all, the Fed would purchase more than $100 billion of MBS from Goldman during the 12 months that followed Goldman’s TARP re-payment.
Did private investors not have the right to know that the Federal Reserve was secretly recapitalizing Goldman’s balance sheet during this period? Did they not deserve to know that the Fed’s MBS buying was producing Goldman’s “perfect” trading record during this timeframe?
Yes, would seem to be the obvious answer.
“There’s a saying in poker: If you don’t know who the patsy is at the table, it’s you,” observes Henry Blodget, the once and again stock market analyst, “Next time you feel like bellying up to the Wall Street poker table, therefore, ask yourself again who the sucker is.”
Thanks to the Fed’s massive, undisclosed assistance, Goldman Sachs managed to project an image of financial well-being, even while accessing tens of billions of dollars of direct assistance from the Federal Reserve.
By repaying its TARP loan, for example, Goldman wriggled out from under the nettlesome compensation limits imposed by TARP, while also conveying an image of financial strength. But this “strength” was illusory. Goldman repaid the TARP loans with funds it procured days earlier from the Federal Reserve. Then, over the ensuing months, Goldman recapitalized its balance sheet by selling tens of billions of dollars of mortgage-backed securities to the Fed.
And the public never knew anything about these activities until two weeks ago, when the Fed was forced to reveal them....
Secret bailouts do not merely benefit recipients; they also deceive investors into mistaking fantasy for fact. Such deceptions often punish honest investors, like the honest investors who sold short the shares of insolvent financial institutions early in 2009.
Some of these investors had done enough homework to understand that no private-market remedy could ride to the rescue of certain financial firms. Therefore, these investors sold short the shares of certain ailing institutions and waited for nature to take its course. But the course that nature would take would be shockingly unnatural. We now know why. The Federal Reserve altered the course of nature, and did so without telling anyone.
Many of the investors who sold short ailing financial firms in 2009 were alert to the possibility that bailouts by the Federal Reserve could change the calculus. In other words, the Fed could make the bearish case less bearish...at least temporarily. Therefore, many of these investors studied the Federal Reserve’s disclosures, as well as corporate press releases, in order to quantify the Fed’s influence.
Based on all available public disclosures, the story remained fairly grim into the spring of 2009. Accordingly, the short interest – i.e., number of shares sold short – on Goldman Sachs common stock hit a record 16.3 million shares on May 15, 2009 – about 3.3% of the public float. But over the ensuing six months, Goldman’s stock soared more than 30% – producing roughly $500 million in losses for those investors who had sold short its stock. Not surprisingly, the total short interest during that timeframe plummeted to less than 6 million shares, as short-sellers closed out their losing positions.
Was it just bad luck? Or was something more nefarious at work here?
Let the reader decide. But before deciding, let the reader carefully examine the chart below, while also carefully considering a selection of public announcements from Goldman Sachs during this timeframe.
Based upon contemporaneous public disclosures, Goldman Sachs was “forced” by the Federal Reserve to accept a $10 billion loan from the TARP facility in October 2008. But Goldman’s top officers repeatedly – and very publicly – bristled under the compensation limits the TARP loan imposed.
Therefore, as early as February 5, 2009, Goldman’s chief financial officer, David Viniar, remarked, “Operating our business without the government capital would be an easier thing to do. We’d be under less scrutiny...” And on February 11, 2009, CEO Blankfein magnanimously remarked, “We look forward to paying back the government’s investment so that money can be used elsewhere to support our economy.”
But at that exact moment, we now know, Goldman was operating its business with at least $25 billion of undisclosed “government capital.”
In April, 2009, The Wall Street Journal observed, “Goldman Sachs group Inc., frustrated at federally mandated pay caps, has been plotting for months to get out from under the government’s thumb... Goldman’s managers have a big incentive to escape the state’s clutches. Last year, 953 Goldman employees – nearly one in 30 – were paid in excess of $1 million apiece... But tight federal restrictions connected to the financial-sector bailout have severely crimp the Wall Street firm’s ability to offer such lavish pay this year.”
On May 7, 2009, a Goldman press release states: “We are pleased that the Federal Reserve’s Supervisory Capital Assessment Program has been completed... With respect to Goldman Sachs, the tests determined that the firm does not require further capital... We will soon repay the government’s investment from the TARP’s Capital Purchase Program.”
On June 17, 2009, Goldman finally got its wish, thanks to some timely, undisclosed assistance from the Federal Reserve. Goldman repaid its $10 billion TARP loan. But just six days before this announcement, Goldman sold $11 billion of MBS to the Fed. In other words, Goldman “repaid” the Treasury by secretly selling illiquid assets to the Fed.
One month later, Goldman’s CEO Lloyd Blankfein beamed, “We are grateful for the government efforts and are pleased that [the monies we repaid] can be used by the government to revitalize the economy, a priority in which we all have a common stake.”
As it turns out, the government continued to “revitalize” that small sliver of the economy known as Goldman Sachs. During the three months following Goldman’s re-payment of its $10 billion TARP loan, the Fed purchased $27 billion of MBS from Goldman. In all, the Fed would purchase more than $100 billion of MBS from Goldman during the 12 months that followed Goldman’s TARP re-payment.
Did private investors not have the right to know that the Federal Reserve was secretly recapitalizing Goldman’s balance sheet during this period? Did they not deserve to know that the Fed’s MBS buying was producing Goldman’s “perfect” trading record during this timeframe?
Yes, would seem to be the obvious answer.
“There’s a saying in poker: If you don’t know who the patsy is at the table, it’s you,” observes Henry Blodget, the once and again stock market analyst, “Next time you feel like bellying up to the Wall Street poker table, therefore, ask yourself again who the sucker is.”
Marine Stabbed By Suspected Shoplifter
AUGUSTA, Ga. - A U.S. Marine reservist collecting toys for children was stabbed when he helped stop a suspected shoplifter in eastern Georgia.
Best Buy sales manager Orvin Smith told The Augusta Chronicle that a man was seen on surveillance cameras Friday putting a laptop under his jacket at the Augusta store.
When confronted, the man became irate, knocked down an employee, pulled a knife, and ran toward the door. Outside were four Marines collecting toys for the service branch's "Toys For Tots" program.
Smith said the Marines stopped the man, but he stabbed one of them, Cpl. Phillip Duggan, in the back. The cut did not appear to be severe.
The suspect was later transported to the local hospital with two broken arms, a broken leg, possible broken ribs, and assorted lacerations and bruises that he obtained when he fell trying to run after stabbing the Marine.
The suspect, whose name was not released, was held until police arrived. The Richmond County Sheriff's office said it is investigating.
Best Buy sales manager Orvin Smith told The Augusta Chronicle that a man was seen on surveillance cameras Friday putting a laptop under his jacket at the Augusta store.
When confronted, the man became irate, knocked down an employee, pulled a knife, and ran toward the door. Outside were four Marines collecting toys for the service branch's "Toys For Tots" program.
Smith said the Marines stopped the man, but he stabbed one of them, Cpl. Phillip Duggan, in the back. The cut did not appear to be severe.
The suspect was later transported to the local hospital with two broken arms, a broken leg, possible broken ribs, and assorted lacerations and bruises that he obtained when he fell trying to run after stabbing the Marine.
The suspect, whose name was not released, was held until police arrived. The Richmond County Sheriff's office said it is investigating.
FIRST LEGO LEAGUE Regional Tournament Winners
A number of teams were winners and several qualified for the state FIRST LEGO LEAGUE Tournament at the Dec. 11 Regional FIRST LEGO LEAGUE Tournament held at Salisbury Middle School.
The following teams qualified for the state FLL tourney:4H Color Confusion (Wicomico 4H), Tournament Champions and winner of the Robotic Competition Award
Dragon Defenders (The Salisbury School), Winner of the Technical Award
SMS Hawks (Salisbury Middle School), Winner of the Research Award
Lockerman Wildcats (Lockerman Middle School), Winner of the Teamwork Award
Pittsville Spartans (Pittsville Elementary and Middle School), Winner of the Innovative Design Award
The Maryland FIRST LEGO LEAGUE Tournament will be held on Feb. 26 at University of Maryland, Baltimore County.
Other category winners included:
Lego Warriors (Wicomico Middle School), Gracious Professionalism Award
Somerset Robotics (Somerset Intermediate School), Rookie Team Award
Many thanks to the many individual volunteers and the community support from the following business and partners:
Home Depot
Eastern Shore Robotics
Stroehmann/Bimbo Bakeries in Salisbury
Salisbury Middle School
Becker Morgan Group
NASA
Wicomico 4-H
Salisbury University Physics Dept.
Coca - Cola of Salisbury
Wicomico Co. Public Library
University Maryland Eastern Shore
SMS STEM Academy Teachers
Deli at Pecan Square
Eastern Shore Chapter of the American Society of Civil Engineers
MARYLAND GRAPE GROWERS REPORT 2010 BEST HARVEST IN YEARS
Despite extreme weather throughout the growing season, 2010 is proving to have been one of the best harvests on record. Reports from around the state indicate that that 2010 vintage will be stellar—perhaps the best in a decade.
“The quality has been phenomenal in 2010,” said Anthony Aellen of Linganore Winecellars in Mt. Airy. “We haven’t seen sugars like this in 38 years; we were pulling in Chambourcin at 25 brix.”
Greg Lambrecht of Serpent Ridge Vineyard in Westminster said the climate pattern –namely high temperatures– offered an earlier harvest than usual. “Rains were adequate – plentiful early and just enough during the regular season to keep the plants from being too stressed,” Lambrecht said.
On the Eastern Shore, some vineyard yields were lower due to a late frost, but the quality is expected to be higher than normal, according to Tom Shelton of Bordeleau Vineyards & Winery in Eden.
“We tasted our new Chardonnay this past weekend and compared it with the 2009; the 2010 is much more flavorful, has more fruit and more character,” said Rich Fuller of Port of Leonardtown Winery in Leonardtown.
Doug and Maureen Heimbuch, owners of Thanksgiving Farm, a winery and vineyard located in Anne Arundel County, said the 2010 growing season for their grapes was the best they have seen since planting grapes in 1998. The growing season was the hottest on record and rainfall was well below average, prior to harvest.
“The grapes we harvested from our vineyards this year were beautifully ripe, with low acidity, high sugar content and wonderfully ripe flavors,” said Doug Heimbuch. “We just finished pressing our 2010 Petit Verdot and Cabernet Sauvignon and those very young wines are fantastically rich and flavorful, and we fully expect our 2010 Meritage to exceed the excellent quality of our 2007 vintage,” Heimbuch said.
According to Jennie Schmidt, president of the Maryland Grape Growers Association and owner of Schmidt Vineyard Management, the significant summer drought affected Maryland's main field crops, yet was beneficial to grape production, resulting in high quality fruit up until the fall rains.
Expect to see the first 2010 vintage white wines released in early 2011, with reds following in the summer and fall. Winemakers statewide are thrilled for what the 2010 vintage will bring to the table.
There are currently 48 licensed wineries in Maryland. These wineries sold about 1.4 million bottles of wine in 2009, and annual sales in fiscal 2009 are estimated at over $15 million.
DSP Promotion Announcement
Location:
- Wilmington University Dover, Delaware
DATE and TIME:
- Tuesday, December 21, 2010 at 1:00 p.m.
Promotes:
- From Captain to Major
- Charles J. (Chip) Simpson (Headquarters- Dover)
- Melissa A. Zebley (Headquarters- Dover)
- From Lieutenant to Captain
- Sherri L. Benson (Headquarters-Dover)
- Thomas Logan (Headquarters- Dover)
- From Sergeant to Lieutenant
- Charles C. Condon (Troop 3 – Woodside)
- Matthew E. Cox (Troop 2- Newark)
- Douglas P. Deveney (Headquarters- Dover)
- From Corporal to Sergeant
- Tonya L. Armstrong-Widdoes (Headquarters- Dover)
- Robert M. Jones (Troop 2- Newark)
- John J. McColgan (Troop 5 – Bridgeville)
- Anthony Mendez (Troop 7 – Lewes)
- Thomas Paskevicius (Troop 3- Woodside)
Resume:
On Tuesday, December 21, 2010 Colonel Robert M. Coupe, Superintendant of the Delaware State Police, will announce the division’s most recent promotions. The promotional ceremony will be held at Wilmington University in Dover, DE and begin at 1:00 p.m.
Notable dignitaries scheduled to make remarks include the Honorable Governor Jack Markell, Lt. Governor Matthew Denn, Attorney General Joseph R. “Beau” Biden III, and Cabinet Secretary Lewis D. Schiliro.
Surrounded by family, friends and colleagues 12 Delaware State Troopers will be promoted to new ranks including Major Melissa A. Zebley, who Colonel Coupe named as the first female major in the history of the Delaware State Police.
GOVERNOR MARTIN O’MALLEY TO PARTICIPATE IN DEPLOYMENT CEREMONY FOR LOCAL TROOPS
ANNAPOLIS, MD – Governor Martin O’Malley will join the 203RD Military Intelligence Battalion in Baltimore on Sunday for a farewell ceremony as approximately 40 Army Reserve Soldiers deploy to Afghanistan in support of Operation Enduring Freedom. After the ceremony, the Soldiers, who are based at Aberdeen Proving Ground, will depart to their mobilization station at Ft. Dix, N.J. for further training.
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