DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
Attention
Wednesday, November 09, 2011
Salisbury City Council President Cohen Responds To Press Release Regarding Wal-Mart Security Request
The Salisbury City Council did not reject any deal to provide this service at Wal-Mart North, nor did I give a deadline for noon today for Wal-Mart to produce a signed memorandum of understanding (MOU).
Council was making every effort to accommodate this late-in-the-game request, right up until it was informed this morning that someone at Wal-Mart had decided to go with the Sheriff’s Department. Those efforts included adding the discussion as an emergency item to the Monday work session, even though the Council had no written or verbal confirmation at that point that Wal-Mart was willing to enter into a legal agreement with the City.
The goal was to have an MOU with Wal-Mart on a legal par with the City’s MOU with the Centre at Salisbury, which had been reviewed by the City’s legal counsel and which took into account a number of important requirements for the protection of the City.
The Council did not see the MOU referenced at the work session. Council was not provided a copy of the Wal-Mart agreement. Staff had not reviewed the document and could not confirm to Council if the MOU was the same as the Centre at Salisbury’s or if it had been changed in some way. Council was not given a name as to who signed the agreement, but was told it was signed by a "manager." Council asked if the City knew who Wal-Mart authorizes to sign these agreements, and staff did not know.
Council was ready to move forward pending advice from the City’s legal counsel that the MOU was consistent with the Centre at Salisbury agreement and pending confirmation from Wal-Mart as to who its legal designee would be.
Since there was no mention of the name of who signed the agreement, the accusations by the Mayor in his press release today that Council’s actions were politically motivated against a specific employee of Wal-Mart are baseless and offensive.
Mental Health Worker Who Reported Child Porn Fired
We're not allowed to go to police' unless actual child abuse is observed, supervisor says
Dozens May Have Been Exposed To Radiation In Idaho
BREAKING NEWS: Dow Closes Down 389
From Fox News
Mortgage Giant Fannie Mae Wants Another $7.8 Billion
White House Sidelines Christmas Tree 'Tax'
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Extra Brain Cells May Be Key To Autism, Study Says

Children with autism appear to have too many cells in a key area of the brain needed for communication and emotional development, helping to explain why young children with autism often develop brains that are larger than normal, U.S. researchers said on Tuesday.
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FBI Wants A New Home
BREAKING NEWS: Magnitude 5.7 Quake Hits Turkey
From Fox News
Texas Lawmaker Apologizes For Anti-Semitic Slur
(JTA) -- A Texas state representative apologized after using the slur "Jew them down" during a public hearing.
Larry Taylor at a legislative oversight hearing on Nov. 3 concerning a quasi-public wind insurance agency and its need to pay claims on time said "Don't nitpick, don't try to Jew them down." He reportedly quickly added, "That's probably a bad term."
Hot Spot Cool Easts Partners With Dorchester Humane Society
Will You Stand With Me And Wear The Badge Of The 99%?
Recently I flew across the United States. During my travels I wore a home-made “99%” patch on the front of my shirt. It was a simple patch created with paper, a marker and masking tape. Clean, shaved and dressed casually I looked like the middle-aged, middle class American man that I am. Without my patch harried travelers and airport workers for the most part would not notice me.
I wore my patch to humanize Occupy participants. I’ve been participating in Occupy activities in my hometown, and I’ve found that the others are people like me. People who want to make their country or the world a better place for all. I do not agree with all of the prescriptions for improvement suggested by everyone that I’ve met at Occupy. I do not agree with all of the ideas of everyone that I know. Different people believe different things. This is not a weakness; it is a strength. I do not speak for everyone. I speak for me. I wore my patch to present an Occupier to a population who see only what mass media chooses to show them.
I wore my patch because I object to my country being a police state, and airports illustrate the police state that America has become. At the airport I was expected to submit to a naked-body scan. I declined and was groped instead. I object to theater security. It is a fraud–not improving security but traumatizing and demeaning. It conditions people to submit to a police state. I wore my patch because I am tired of being told that I should be scared and docile. I wore my patch because I am not a sheep.
I wore my patch and expected to be laughed at and mocked. I expected a public that had been told that Occupiers are dirty and lazy would laugh at me to mask their own insecurities. I was wrong. Not one person made any negative remark that I heard. I was questioned. “What does your patch mean?” I tried to explain.
Sometimes my explanation was adequate. Sometimes I was applauded. One middle-aged man in an expensive suit said “nice sign” as he hurried past. I thanked him and suggested that he could wear a patch, too. I wore my patch hoping that others would follow my lead.
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BREAKING NEWS: Dow Drops Nearly 400 Points
From Fox News
Poopsie Euthanized This Morning
Poopsie's condition continued to deteriorate rapidly in recent weeks, to the point she stopped eating her regular meals. Poopsie would have been 38 years old on December 27th. Spectacle Bears usually only live 25 to 28 years in captivity.
I may be out of line by speaking for my Wife but I can tell you this will cut deep into her heart knowing what her former co workers, (especially Ann and Gary) are feeling and experiencing.
GOP Rep. Joe Walsh Melts Down, Screams At Constituents: ‘Dont Blame Banks!…I Am Tired Of Hearing That Crap!’
A Friend Sent These Images Of Fog Yesterday Morning
Ahamdinejad: Iran Won't Retreat From Nuke Plans
TEHRAN, Iran - Iran won't retreat "one iota" from its nuclear program but the world is being misled by claims that it seeks atomic weapons, President Mahmoud Ahmadinejad said Wednesday in his first reaction since a U.N. watchdog report that Tehran is on the brink of developing a warhead.
Orioles Pitcher Acquitted In Dominican Shooting Death
WANTED SEX OFFENDERS ARRESTED BY OCPD
The off-duty officer contacted the on-duty OCPD shift supervisor and related the information. OCPD officers verified that Harris was wanted by the Worcester County Sheriff’s Office for failing to register as a sex offender after his release from jail in April.
Harris was located by the OCPD at 507 Philadelphia Ave. and taken into custody without incident. Harris was seen by an Ocean City District Court Commissioner.
He was held without bond and transferred to the Worcester County Jail.
The following day, November 8, 2011, at approximately 6:50 p.m. OCPD officers received information about a second wanted sex offender who may be in Ocean City.
Evening shift officers investigated the whereabouts of the wanted person and were able to determine that Delmar James Cubbage, 21, of Ocean City, was wanted for failing to register as a sex offender. Police located Cubbage at 801 Philadelphia Ave. Cubbage was taken into custody without incident.
Cubbage was seen by an Ocean City District Court Commissioner and was held
without bond. He was transferred to the Worcester County Jail.
Toyota Recalls 550,000 Cars For Steering Issue
The recall affects 447,000 vehicles in North America, as well as 38,000 in Japan and another 25,000 in Australia and New Zealand, said Toyota spokesman Dion Corbett. In Europe some 14,000 vehicles are being recalled along with 10,000 in the Middle East and 14,000 in Asia outside Japan.
Big Banks Plead With Customers Not To Move Their Money
Yes, The Big Banks DO Care If We Move Our Money
650,000 customers moved $4.5 billion dollars out of the big banks and into smaller banks and credit unions in the last month.But there is a myth making the rounds that the big banks don’t really care if we move our money. For example, one line of reasoning is that no matter how many people move their money, the Fed and Treasury will just bail out the giants again.
But many anecdotes show that the too big to fails do, in fact, care.
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Clinton: Debt-Hike Battle Made US Look ‘Weak And Confused’
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Penn State Students Gather Outside Joe Paterno's House In Show Of Support
Paterno's exit as football coach is being planned by university officials, the New York Times reported today, amid a sex-crimes scandal involving former assistant coach Jerry Sandusky. This after Spanier called for the cancellation of Paterno's weekly news conference just over an hour before its usual 12:30 p.m. start time.
Paterno was cleared of any wrongdoing last week by Attorney General Linda Kelly. Athletic director Tim Curley and vice president Gary Schultz, have stepped down from their posts as they defend themselves against perjury charges.
Nationwide Emergency Alert System Test Scheduled
What Does the GOP Really Want In 2012?
I won’t keep you waiting. The Republican leadership would like nothing better than to have another four years of Dictator BHO.
Of course, they will never admit it. And I don’t doubt that they’d like as many party loyals elected to 2012 state and federal offices, good suits who will do Boehner’s bidding, and stay bought. It’s just that, well, there’s nothing like the Obaminator to rally the party troopers and inspire order.
The Tea Parties have greatly annoyed the Republican establishment with their small government advocacy, their insistence on bringing up the Constitution at inconvenient times, and their pervasive lack of faith in federal solutions, federal justice and federal monetary policy. They are, at the heart of it, just not good Republicans. What’s worse, they revel in their independence.
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PRESCRIPTION DRUGS AND THEIR SIDE EFFECTS
He declines. "Thanks for asking, but I'm not hungry right now. It's this Viagra," he says. "It's really taken the edge off my appetite.
At lunchtime, she asks him if he'd like something.
"How about a bowl of soup, homemade muffins, or a cheese sandwich?"
He declines. "The Viagra," he says, "really trashes my desire for food.
Come dinner time, she asks if he wants anything to eat. "Would you like a juicy rib eye steak and some scrumptious apple pie? Or maybe a rotisserie chicken or tasty stir fry?"
He declines again. "No," he says, "it's got to be the Viagra. I'm still not hungry."
"Well," she says, "Would you mind letting me up? I'm starving."
Hard Evidence: Bailed-Out Banks Take More Risk
Researchers have asked for some time whether and how bailouts might affect banks’ risk-taking. Would they run wild, aware of the high likelihood of being bailed out again if they ran into trouble? Or would they ease off precisely because they’d now be assured of lower financing costs and long-term survival, and therefore would want to avoid doing anything that might cause regulators to take that valuable banking license away? More daring or more discipline?
Each of these camps had its underpinnings yet the question was a difficult one to study. Why? Because, generally speaking, the developed Western countries didn’t really do bank bail-outs. [Insert smirk here.]
But then came 2008 and its bailout-palooza. And so, thanks to hundreds of billions of taxpayer dollars and an alphabet-soup of bank welfare programs, this question can now benefit from the availability of real-life, empirical data. (Cloud, silver lining and all that.)
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Cain Accuser Filed Complaint At Next Job
WASHINGTON - A woman who settled a sexual harassment complaint against GOP presidential candidate Herman Cain in 1999 complained three years later at her next job about unfair treatment, saying she should be allowed to work from home after a serious car accident and accusing a manager of circulating a sexually charged email, The Associated Press has learned.
This Is How The Daily Times, (Susan Parker) Works
It got to the point that Ms Mann told her she'd send her her phone number since the questions weren't going to stop anytime soon. What I found odd was how Ms. Parker was asking anyone who posted something
about him questions for her article. Most of these people weren't personal friends of Mr. Hawkins, they saw him at the monthly Mayor's Assoc meetings where people from all over the Eastern Shore (MD) get together for a dinner/meeting. I have met Mr. Hawkins several times over the past 35 years due to my cousin marrying someone in his family. I almost posted something to Ms. Mann about how sad it will be not to see him at the family dinners but stopped myself due to not wanting to get hit with questions from Ms. Parker especially since I don't feel I know him well enough to answer some of the things she was asking. I can say that he was always friendly towards me and always gave me a hug with a huge smile. He certainly did love his family and openly showed it.
I was sitting in the car at the Fruitland McDonalds when the ambulance drove by. My mind was still going over everything that had just been said at the doctor's office when I heard the sirens. When my boyfriend got
back in the car I told him how someone's life must be in danger due to how the ambulance driver was using every siren plus blowing the horn all the way through Fruitland. When I had my heart attack I remember
being told how they did that with me. So when I hear that noise I know what it means. I couldn't of done anything if I had known Mr. Hawkins was inside it but I could of said a prayer for him which was made as
soon as I saw it on your blog. I know your told many times every day how wonderful your blog is due to how fast the news is posted plus many other reasons which would take me most of the morning to list.
For me there have been three times when you have listed a death that was important for me to know since I wouldn't of known otherwise until reading the obituary due to not being immediate family. You might
remember this. A few years ago you posted about a hit and run where the one hit had died and police were looking for the vehicle. At that time, for me it was just a post. The next morning the new post was how the driver had been found and how he had tried to hide his vehicle in his backyard by covering it up with a tarp. The last name was Mitchell. I have Mitchell's in my family but this man's name wasn't familiar I was just glad they had found him due to the accident he had caused which resulted in a death of an innocent person.
The next day the post was how the Mitchell man had hung himself in his jail cell. It still wasn't familiar...the only thing I felt was that was a sign of being guilty and not man enough to appear in court to get what was coming towards him. But I did notice lots of comments which I usually read each one if I have read the post. A comment caught my attention. It was his sister who was mad that you had posted the news of how he had died before all of the family could be called that he was her brother and she had to find out on your blog.
Something about the comment struck me as familiar so I went back and read every post and every comment again. The man was my cousin's son. I had never met the son. I felt bad for my cousin but chose not to attend the funeral due to how I felt about what he had done about running from the accident and then taking his life. After things calmed down a few weeks later I did visit my cousin to pay my respects. I wouldn't of known any of this if it hadn't been for you. Yes, there was an obituary in the DT's which I would of seen he was my cousin's son and would of attended the funeral due to not knowing any of what he had done. This is just one way you have touched my life. The most important way was while I was away two yrs ago for Christmas. I stayed glued to my laptop getting updates from your blog about Sarah's disappearance and eventually being found. Even miles away you were touching my life. I would look at the end of each day to see what was on the WBOC and DT's sites only to see they had finally updated their sites hours after you had done it. So after two days, I stopped looking at their sites since I had already read what they had posted.
Let A Thousand 'Rogue' Grand Juries Bloom!
Over the past decade, hundreds of police departments nation-wide have purchased the vehicles with the help of federal grants. The testing device deployed in them, the Intoxilyzer, is considered infallible by law enforcement agencies and most trial judges. However, the Kentucky-based company that manufactures the the Intoxilyzer has refused to disclose its source code. Without access to the source code, the device's findings are unverifiable. As one defendant points out, the machine could simply be a gimmicky random number generator, rather than a finely calibrated scientific instrument.
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Obama Couldn’t Wait: His New Christmas Tree Tax
In the Federal Register of November 8, 2011, Acting Administrator of Agricultural Marketing David R. Shipman announced that the Secretary of Agriculture will appoint a Christmas Tree Promotion Board. The purpose of the Board is to run a “program of promotion, research, evaluation, and information designed to strengthen the Christmas tree industry’s position in the marketplace; maintain and expend existing markets for Christmas trees; and to carry out programs, plans, and projects designed to provide maximum benefits to the Christmas tree industry” (7 CFR 1214.46(n)). And the program of “information” is to include efforts to “enhance the image of Christmas trees and the Christmas tree industry in the United States” (7 CFR 1214.10).
To pay for the new Federal Christmas tree image improvement and marketing program, the Department of Agriculture imposed a 15-cent fee on all sales of fresh Christmas trees by sellers of more than 500 trees per year (7 CFR 1214.52). And, of course, the Christmas tree sellers are free to pass along the 15-cent Federal fee to consumers who buy their Christmas trees.
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Md. Businesses Uneasy About Economic Growth
Continue Reading...
BREAKING NEWS: Joe Paterno Reportedly To Step Down
From Fox News
Complicating Twitter And Journalism
The Associated Press caused a minor furor recently, when the news-wire service updated its social-media policy and forbade its writers from expressing opinions on Twitter, including implied opinions in the process of retweeting posts by others. In the wake of that controversy, Jeff Sonderman at the Poynter Institute has suggested that journalists could use their own Twitter shorthand to prevent anyone from getting the wrong impression when a reporter retweets something.
As I’ve argued before, all we really have to do is admit that journalists of all kinds might have opinions, instead of trying to pretend that they don’t—or trying to force them not to.
According to the Associated Press policy (PDF link), the risk in simply retweeting comments made by others—with no disclaimer or qualifying comment—is that readers might assume that a retweet endorses whatever views have been expressed by the original poster. Many journalists on Twitter have tried to deal with this by adding a line to their Twitter bio that says “retweets are not endorsements.” Apparently this isn’t enough for the wire service.
The AP’s policy states: “Retweets, like tweets, should not be written in a way that looks like you’re expressing a personal opinion on the issues of the day. A retweet with no comment of your own can easily be seen as a sign of approval of what you’re relaying [and] these cautions apply even if you say on your Twitter profile that retweets do not constitute endorsements.”
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Commentary: Currie Verdict Shows We Reporters Are Wasting Our Time
Dutifully – well, at least occasionally on a slow day — we would walk over to the 45 Calvert Street offices of the State Ethics Commission in Annapolis and ask to see the annual statements from elected and appointed officials.
To get the records, we’d hand over our driver’s license to be copied and pay 25 cents a page for documents that were often filed electronically, but not available over the Internet, the way they are in many states.
Officials filling out the forms can ask to be notified when someone requests their financial disclosure forms. Some are notified by phone, I found out one day.
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China Telecom Plans To Offer Wireless Service In U.S. In 2012
Suspects Photo - Sexual Assault
Location Occurred: Pocomoke, Worcester County, Maryland
Crime or Violation: Sex Offense Second and Third Degree, Sex Abuse of Minor,
Assault Second Degree, Child Abuse: 2nd Degree
Victim: Juvenile 15 Years of Age
Accused: Daniel Crismond, 47 Years of Age of Pocomoke, Worcester County, Maryland
Narrative:
On 11/04/2011, investigators from the Worcester County Bureau of Investigation conducted a sexual assault investigation in Pocomoke, Maryland. Investigation revealed the accused was having sex with an under aged female. The accused was identified as Daniel Crismond, age 47 from Pocomoke, MD. When Daniel Crismond was confronted about the allegations, he confessed to his involvement. Crismond was arrested and charged with Second and Third Degree Sex Offense, Sex Abuse of a Minor, Second Degree Assault, and Child Abuse: 2nd Degree.
Crismond was taken to the Commissioner, where he was held on $25,000 bond.
Online Dating Scam: 'Military Guy' Steals Widow's Heart And Nearly $500,000
Will the Supreme Court Carve Up Obamacare?
The court could find the "individual mandate" unconstitutional but leave the rest of the law intact
For insurance companies nervously watching the legal fight over the constitutionality of the President’s health-care law, it would be the unthinkable: The U.S. Supreme Court strikes down the law’s so-called individual mandate, which requires millions of young, healthy people to buy coverage—but leaves intact rules compelling insurers to cover sick people, who are likely to cost far more in benefits than they pay in premiums. Congress is then left to fix the problem.The scenario is a real possibility. In a challenge to the health-care law brought by 26 states, a federal appeals court took exactly that approach, declaring in August that the mandate is unconstitutional while saying the rest of the law could stand. The Supreme Court is expected to take up the question of the statute’s constitutionality next year. If the justices agree with the lower court and strip out the mandate, “that would be the worst of all worlds for insurers,” says Paul Heldman, a health policy analyst with Potomac Research Group in Washington. “You’ve got to have some way to ensure that healthy people are going to sign up for coverage to offset the cost of sicker people.”
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Tell-Tale Signs You've Had Too Much Caffeine
If people feel the need to satisfy that fix a few more times over the course of the day, it might do harm than good.
There have been all sorts of studies on the risks and side effects of caffeine, but how much is too much?
The American Dietetic Association says 300 milligrams is tops, which amounts to three eight-ounce cups a day.
Prevention Magazine has gathered up some tell tale signs that you're over-caffeinated.
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Child's Death Sheds Light On Biblical Disciplinary Teachings
"Where did this bruise come from?" she would ask systematically. "Myrtle," a United Airlines shift control manager and devout Christian, made it a game, quizzing and recording her five little ones, drilling them to say, "I fell" or "I bumped into something."
Pillar Hotels Cutting 159 Jobs At Three Maryland Holiday Inns
The Texas-based hotel management company is terminating its contracts with the Holiday Inn and Holiday Inn Express in Frederick and the Holiday Inn in Cumberland, according to state labor officials. Pillar filed a notice of the layoffs Tuesday under the Worker Adjustment and Retraining Notification Act. They will become effective Dec. 31.
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Did Fracking Help Cause Oklahoma Earthquakes?
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Maryland State Senator Ulysses Currie Acquitted In Public Corruption Case
The jury gave its verdict Tuesday relating to the influence peddling case involving the 74-year-old Currie, a Prince George's Democrat, and two former Shoppers Food Warehouse executives.
The executives were also acquitted on related charges.
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Bill Clinton: How I'd Fix The Economy
NEW YORK (CNNMoney) -- Move over Congress. Move over President Obama. Bill Clinton is back -- and he has a lot of economy-fixing ideas.
The elder Democratic statesman has crammed his latest book -- called "Back to Work" -- with dozens upon dozens of policy prescriptions designed to get the economy back on track.
TRAFFIC ALERT - Christiana Mall Road Bridge Project Will Require Nighttime Lane Closures Of Route 1
Northbound closures will occur on the evenings of Friday, November 11, Saturday, November 12, and Monday, November 14. Southbound closures will occur on the evenings of, Tuesday, November 15, through Saturday, November 19. Nighttime closures will also occur on both Monday, November 21, and Tuesday, November 22 - direction of closures will be determined.
Northbound motorists will be instructed to follow the posted detour route, exiting at Route 273 westbound, onto I-95 northbound, and back onto Route 7.
Southbound motorists will be instructed to follow the posted detour route, southbound I-95 to Route 273 eastbound, and back onto Route 1.
Number Of Victims In Sandusky Sex Case Reportedly Nearing 20
Apple Banishes Expert Who Exposed Software Flaw
Swedish Lingerie Chain Asks Employees to Display Their Bra Sizes

The company's CEO says it will help customers judge their own sizes. Some employees just feel violated.
Ever feel like you have too much privacy at work? Wish you could really let it all hang out on the job? If so, you should consider applying for a position at Change, a Swedish lingerie chain that suggests employees display their bra cup size on their name tags.
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Body Retrieved From Broadkill River In Milton
Rhee: Today's Kids Must Learn To Work Hard
PHILADELPHIA - America was born 235 years ago, and it is still a work in progress. With most Americans unhappy about the direction of the country, CBS News decided to go back to where it all began: Independence Hall in Philadelphia.
Where the founding fathers met, CBS Evening News anchor Scott Pelley gathered a panel of some of the wisest people of our time to ask them how they would move the country forward.
Rugby Jock Says Stroke Turned Him Gay
The 26-year-old Welshman suffered a stroke after breaking his neck while attempting a back flip at a gym, The Daily Mail reported. His then-fiancé and family stayed by his side, but when he woke, something had changed.
Tuesday, November 08, 2011
Madoff Investors Sue JPMorgan For $19 Billion
Missing Boy, 2, Had Been Left Alone In Car Before
'Absolutely, we suspect foul play,' officer says; mom's apartment searched
BREAKING NEWS: Mississippi Voters Reject 'Personhood' Measure
Babies on Path To Obesity? A New Sign May Offer An Answer

Researchers say there's a new way to tell if infants are likely to become obese later on: Check to see if they've passed two key milestones on doctors' growth charts by age 2.
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Holder 'Regrets' Death Of Border Patrol Agent, Stands By Response In Aftermath
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How The War On Terror Has Militarized The Police
Over Half Of Owners Will Buy Pet Holiday Gifts
Poll shows they plan to spend average of $46 with toys, treats topping list
K-9 Sniffs Out 58 Pounds Of Pot In MD
PUT THEM TO DEATH
End Bonuses for Bankers
More than three years since the global financial crisis started, financial institutions are still blowing themselves up. The latest, MF Global, filed for bankruptcy protection last week after its chief executive, Jon S. Corzine, made risky investments in European bonds. So far, lenders and shareholders have been paying the price, not taxpayers. But it is only a matter of time before private risk-taking leads to another giant bailout like the ones the United States was forced to provide in 2008.The promise of “no more bailouts,” enshrined in last year’s Wall Street reform law, is just that — a promise.
The financiers (and their lawyers) will always stay one step ahead of the regulators. No one really knows what will happen the next time a giant bank goes bust because of its misunderstanding of risk.
Instead, it’s time for a fundamental reform: Any person who works for a company that, regardless of its current financial health, would require a taxpayer-financed bailout if it failed, should not get a bonus, ever. In fact, all pay at systemically important financial institutions — big banks, but also some insurance companies and even huge hedge funds — should be strictly regulated.
Critics like the Occupy Wall Street demonstrators decry the bonus system for its lack of fairness and its contribution to widening inequality. But the greater problem is that it provides an incentive to take risks. The asymmetric nature of the bonus (an incentive for success without a corresponding disincentive for failure) causes hidden risks to accumulate in the financial system and become a catalyst for disaster. This violates the fundamental rules of capitalism; Adam Smith himself was wary of the effect of limiting liability, a bedrock principle of the modern corporation.
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Next In Line For Implosion: Pension Plans
I'm afraid it's time for an intervention. I don't enjoy being the bearer of difficult news, but now that Europe has stumbled drunkenly into the pool and been "rescued," it's once again tearfully blubbering that this time it's all going to change, and a new prime minister in each dysfunctional, insolvent EU nation is going to make the pain and the addiction all go away.
It's time we face the reality that Europe and the U.S. are full-blown financial alcoholics, addicted to illusion and debt. And what do they turn to as "solutions"? The very sources of their pain: illusory "fixes" and more debt. Have you ever seen a global market as dependent on rumors of "magical fixes" for its "resilience" as this one?
What's truly remarkable is the psychotic distance between the facts--Europe's debts are impossible to service, its economy is free-falling into recession, the U.S. is already in recession, China's real estate bubble has popped and cannot be reinflated-- and the heady leap of global markets on every trivial rumor of a magic fix.
Since it runs in our family, I do not use the word "alcoholic" lightly. Those of you who have to deal with alcoholics know the drill: the liquor stashed behind the fridge, as if everyone doesn't know it's there; the stumbling into the pool, the humiliating rescue, the tearful promise of change which goes nowhere, and all the rest.
I seriously suspect the entire global economy is alcoholic--not about liquor, but about debt and the impossibility of paying entitlements which expand by 8% a year in an economy which grows by 2% a year at best. In all the millions of words printed about the subprime meltdown, the gutting of the U.S. financial and housing markets and now about Europe's impossible burden of debt, how often have we seen anyone in the MSM or mainstream financial press confess that "borrowing our way of out of trouble" is not just financially bankrupt but morally bankrupt as well?
Like a full-blown alcoholic, the people and governments of the U.S. and Europe stagger from debt source to debt source, weaving drunkenly between "stashes" of new debt in the Fed, Treasury and private sector markets. Despite the abject failure of the magical-thinking "fix" of becoming solvent by exponentially expanding debt, we see the same pathetic pattern repeating in Europe, where the apologists for the alcoholic debt-binge continue to claim the risk of systemic failure and collapse of asset values is low.
While everyone is focused on the drunk being pulled from the pool--Europe's sovereign debt--another drunk is teetering on the edge: public and private pension plans. Here's the reality in a nutshell: pension plans only work if they earn average returns of around 8% per year, basically forever.
Gripped by the mono-maniacal desperation of an addict who sees no other path but another hit, central banks have lowered interest rates to near-zero to "spark growth." Unfortunately the only thing being goosed is the future cost of servicing the additional debt.
How do you earn 8% on money which yields at best 3%? You can't. How do you reap a gain on bonds when interest rates have already hit bottom and can't fall any lower? You can't.
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BREAKING NEWS: Ohio Voters Oppose Health Care Mandate
BREAKING NEWS: Ohio Voters Defeat Ballot Initiative on Unions
Judge Approves BofA's $410M Overdraft Settlement
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