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Thursday, November 11, 2010

California Finally Gets A Break


While many folks are bemoaning the Red Tide that swept across America last week. The Sierra's seemed to have prevented the tidal wave from reaching all the way to the Pacific Ocean.

On the contrary, there were many positive aspects of last weeks elections that may eventually help California to move beyond it's political and economic malaise.

The article listed here first was not part of the election, but should, nevertheless, be considered a step in the right direction when it comes to getting our financial house in order.

The first piece of good news from last weeks election was the passage of Proposition 25 which does away with the hated 2/3rd majority for any budget to be passed in the State of California. This should enable budgets to be done sooner as a simple majority is all that will be needed to pass a budget in the state. Note that this is for the passage of a budget only, raising taxes still requires a 2/3rd majority for passage.

Riding on the coat tails of Prop 25 was Prop 26 which forbids legislatures from re-classifying what was once considered a tax (vehicle registration for instance) into a fee in order to bi-pass the state law that required a 2/3rd majority for any tax increase.

Last, was the passage of Proposition 20 which takes congressional redistricting out of the hands of politicians. New rules require an independent board of citizens who will draw the new lines for the election of 2012. Much of the extreme partisanship and gridlock in California has been blamed on politicians who are being elected in very safe districts which can often put the more extreme members of each political party into office. The idea behind the passage of Prop 20 is that the new citizens board will draw more competitive districts which will force politicians to govern from the center so as to appeal to as many people as possible to get elected.

All in all, as depressing as last weeks election was to many on the left of the political spectrum, California, at least in my opinion, has at a few good changes coming down the pike.

151 comments:

  1. I would like to hope there will be important changes that follow-on to the election. I know some of us here despair, but I have hope. I am glad to see some changing of the guard; after living in one place for 14 years, my collection of stuff weighed me down so much I found change impossible. So, in my opinion, new blood brings us opportunity. It's too bad we can't peg Dem against Dem, or Rep against Rep, but them's the rules. So some Rep changes are appropriate, and let's move that collection of stuff out so we don't have to carry the weight.

    Good article, Thor. Well written.

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  2. OK, Yesterday I went through and identified the best herds. Now, how do we identify the best cows? There are several alternatives: Check fundamentals and look at profit margins, surprises, Debt-to-equity ratio and free cash flow. Make sure the debt's not going up because that could modify the free cash flow and make the company look better. And more techniques of financial analysis.

    Another alternative is to let the market tell us which ones to investigate further; the market speaks loudest with price action, so let's find a pullback and see which stocks pulled back the least. These would be the strongest. I have a screener I can run which will go through each segment "Level 1" list of stocks and identify which ones have the biggest % gains (or negative gains, that is losses). All I have to do is edit the date range, and the software will put up the %ages. This screener comes standard with TDAmeritrade's StrategyDesk. You can also do it with a calculator, but that's pretty tedious.

    In KOL we have a pullback from Oct 15 thru Oct 19. The clear wwinners are MEE and PVG, with +5.99% and +.62%. In other words, while KOL as a group was pulling back, these 2 were still going up. Quite a clear demonstration of relative strength.

    for the others:

    For RTH, we had a pullback for the last 4 days. The winners are BJ and RL (Not exactly fair, they reported and got their pop for beeeting the streeeet), so then we have DKS, PLCE, URBN, BKE, and MW
    For IYE, we have a pullback on Oct 18-19. The winner is DRQ. Nobody else was close.
    For OIH, we had a pullback 10/16-10/18. The winners are PZE, BP, XOM
    For XES, we had a micro pullback of Oct 18 and 19. The winners are: ESV SLB and TDW
    For IHI, we had a pullback 10/28-11/01. The winners are VAR, TMO, and CMED
    For KCE, we had a pullback 10/23-10/26. The winners are DFS, HTS, V MA
    For XLK, we had a pullback 10/18, 10/19. The winners are NTAP EMC ACN
    For SMH, we had a pullback from 10/12-10/19. The winners are MIPS, EMC, TLAB, KLAC


    I'll leave the autos up to the student. See what you can do to find the strongest cow in that herd.
    I have no positions in any of these stocks, but I'm going to start some depending on the market. Just knowing these are considered by the latest price action to be the strongest, is a help to me to go forward. My next step is to confirm the strength through an analysis of the balance sheet. If you don't know how to do this, a book that is pretty short and to the point is "Techniques of Financial Analysis" which was one of my texts from MBA school.

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  3. Saw the movie "Inside Job" last night. Not much new for me, but the interviews with some key people were really illuminating just how deep and pervasive the corruption is among the global elites on Wall Street, government and academia. Quite sad.

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  4. I think dead hobo may have rang the bell over the TBP last week when he claimed he was finally buying equities. ;-)

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  5. @Mannwich:

    Thanks for the tip. I saw Boiler Room. I know it's fantasy, but it sure shows what's possible.

    I'll go get Inside Job.

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  6. re Manny:lol indeed.. I believe that's our long-awaited correction beginning. Will probably be fine to go long if we've a decent down move.

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  7. @Rock: "Inside Job" is a documentary, not fantasy, sadly enough. The interviews with Fred Mishkim and Glen Hubbard are PRICELESS. Such shifty, soulless bastards.

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  8. Mishkin - AKA - Napoleon Dynamite.

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  9. Not worry until S&P breaks throuh 13 day moving average to the down side.

    I Can

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  10. Also, G-20 meeting in Korea. China is stuborn, not letting their currency appreciate.

    World trade is not a one-way deal. Ems are so use to whining and crying. It's their elite who want to keep the masses ignorant and enslaved.

    Everyone wants to be net exporter! But China, now can afford to allow a balance trade.

    I Can

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  11. @ICan
    I think China can't let their currency appreciate. They have been negotiating trade agreements with some nations (including Singapore, I have direct knowledge) using the RMB instead of the dollar as the trade basis.

    Today I went to the FairPrice (our local Sing government sponsored supermarket) and I saw (did not buy) so many things from China: Broccoli, cauliflower, oranges, apples, spinach, spring onion, unrecognizable green vegetables, so much stuff. That would stop, should the Chinese let their currency appreciate. I would starve. Chinese exports would stop, and the companies producing these items would rebel against the established Chinese government. We would have huge instability in the region.

    I think it's that serious.

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  12. BIDU new 52-week high.

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  13. Morning all!

    Well look at that! I think we have a correction on our hands!

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  14. Not quite, Thor, but one seems to be looming.

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  15. Rock - That's fascinating, about the food. Do you know anything about food safety? Is there any perception that the food being shipped in from China might not meet Western health standards?

    Not that our own food would meet Western health standards anymore, but you get the idea. . .

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  16. Manny - Wishful thinking on my part? :P

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  17. @Mannwich,

    I also saw Inside Job. Nothing too new or surprising, from what I've been following from you guys (and gals) here. Thanks for that, btw.

    "Napoleon Dynamite" - Ha! Mishkin clearly does not have a media handler.

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  18. Cameron - Hey there! Thank you buddy, welcome :-)

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  19. Slow day due to Veteran's Day.

    Gorgeous weather!

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  20. @Rock, I understand how the Chinese govt. keeps the masses employed through exports, as they donot have homegrown demand yet. But U.S. businesses have to sell too. Oh well.

    U.S. farmers must be loving all that QE2 money pouring into commodities.

    I read somewhere Almond farmers from Cali were in India. Doing good business.

    I Can

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  21. @Rock, re food from China.

    My personal experience- in our supermarket we, get fresh Leechy nuts from China and Taiwan. Guess which one I would pick - Taiwan.

    India, same thing. I am so afraid of the pestcides they use on food.

    I Can

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  22. @I Can,

    There was an NPR spot the other day about the trade war with Brazil about cotton. I didn't know that cotton was grown in Brazil much less enough for a trade war.

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  23. I'm am afraid of any food stuff out of China.

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  24. Rock,

    Do you want to do a guest post for tomorrow?

    ReplyDelete
  25. Interesting that the GLD contract is not keeping up with Gold futures.

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  26. Agreed Cameron, but what was striking to me were the interviews. It was painfully obvious just how corrupt these guys are.....

    What I also liked about the film is that it's laid out in such simple and stark terms linking the events and people together that most people can understand. That's VERY important. There were several audible gasps and outright pissed off chortles in the audience throughout the film.

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  27. The documentary is only in two theaters here, is it going to get a wider distribution?

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  28. I wondered that as well, denise. Not being widely played here either, but fortunately for me it's down the street at my little movie house that somehow still makes it and stays open even with all of these brand new and more comfortable, state of the art places popping up. They tend to show better movies at this place so I guess they have a niche there.

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  29. They closed down our little theater and made it into retail/dining space, one of which is now a vacant store front, and the other has the 2nd struggling over priced "restaurant" in four years. What a shame.

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  30. Maybe it will be available on Netflix.

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  31. Denise & Manny - knock on wood, we still have tons of small, independent movie theaters here. They're the one's that show all the small indy films. Hard to get rid of those here I'd imagine, too much a part of the film industry for the smaller production houses.

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  32. I put it on my watch list and maybe it will become available.

    Is anyone else having trouble with the site crashing?

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  33. We have a few theaters left in the burbs, but mostly it is the mega chains around here.

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  34. In India, tainted sweets, tainted milk are a regular occurance. People are shifting away from sweet stuff toward dry fruits - almonds, dry fruits in general. This is a major shift

    Festival of lights - Diwali, wedding season, and winter season in general is when Indians consume major amounts of sugar.

    I Can

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  35. Nice post, Thor. Thank goodness that the hypocrite Meg Whitman and the failed CEO Fiorina did not make it. We have enough losers in government with out these two added to the mix.

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  36. Thank God I covered my short when I did and took my losses. Up another 7+% today and going parabolic on nothing. HFT action or just more shorts running for cover? Weird

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  37. Make that another 9%. Crazy.

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  38. Denise - Thanks! Who knows what will actually become of all these propositions as well as the new Brown administration, probably nothing, but it's still nice to be hopeful about something. Everything else isn't looking too rosy.

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  39. Looks like Ireland is going to be the next Greece. Who's next Spain?

    Prediction: As much as the Europeans are complaining about QE2, they're going to be forced to do exactly the same thing pretty soon.

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  40. Following up on that, a peak into our future?

    Ireland on the brink as budget crunch looms

    Yields on government bonds have soared in recent days as investors increasingly fear that the only long-term option for Ireland will be a bailout from Europe. But sympathy for Brian Cowen’s Fianna Fail–led coalition is almost nonexistent among Dubliners, who see the government as the biggest villain in the collapse of the Irish economy.

    In a country where the taoiseach, the prime minister, is reportedly the highest-paid politician in Europe and where each member of the lower house represents just 26,000 constituents — compared with more than 94,000 each in the U.K. — there is palpable anger that those seen as most responsible also appear to be hurting the least.

    “People are really angry. People on social welfare, pensioners and lower income earners feel that they’re going to be hit in December’s budget, and when that happens there’s going to be outrage, because those at the top of the food chain aren’t being touched,” said Laura Waters, a former employee of retailer Laura Ashley who lost her job when the company closed its flagship Dublin store.

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  41. @Dss

    I have a "Hi, I'm Rock" post composed as an introduction. Who I am, what i've done, and where I'm going. I'm frightened to post that.

    And I'm concerned I won't do well with the mechanics.

    If I post, after another post, and it won't upset anyone, I could do that. I think I saw in a comment "there's a new post" then after one or two comments, everybody switched over to the newer post.

    If that's OK, when I wake up, I'll see if I can figure out how this mechanics works.

    I'm so very sorry to be rock.

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  42. Rock,

    That sounds like a fine first topic. The actual mechanics of posting are fairly simple. (even I, a very technically challenged person, was able to master it)

    There is a clickable link on the posting template that says "post options" and this is where you can select the time your post will run. We usually have them run very early.

    No worries if you don't have time to do a post and figure out the mechanics for tomorrow. We didn't give you a great deal of notice!

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  43. @Thor

    RE: Food safety:

    I wish this could be a private post. It deserves privacy.

    I came here 2 years ago. In those two years, I have had 2 or 3 normal bowel movements. I had QE2 with all that extra liquidity as a rule. My son and I had to visit a physician to get antibiotics to try to stop one of them. It was painful.

    It's been unpleasant. The food here is cheap and tastes excellent, but somehow it disagrees with western, um, internals.

    You can't stop living. You go out and eat. But I think the food safety issue has a substantially different priority here compared to the west.

    We used to keep it in the water.....I've had Montezuma's revenge, but it's nothing like the constant discomfort here.

    If Chinese food gets to the US, I would advise you to not buy it.

    I apologize to anyone this might offend. I mean it only to indicate there are differences in regards to "food safety", depending on where you live.

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  44. Rock - Also, I'm here and closer to your time zone than most of the folks on the East coast so I can help you out if you get stuck technically. Of course, I'll cover tomorrow if it's too soon or too much of rush, no worries at all!

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  45. Apparently CROX is making a comeback. New 52-week high. I thought the fad of wearing ugly plastic shoes was over. Was I wrong?

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  46. @Manny,

    I a word, no. Not only are they ugly but they look like they would be very bad for your feet.

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  47. Manny - It's more than over here in Socal. Maybe their international sales are doing well?

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  48. @Rock,

    That is another reason why "buy local" has become so popular and Farmer's markets are so big. Fresh food and you know where it comes from.

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  49. Rock,

    And it is another reason why I am really hesitant to visit China or other lesser developed countries. Anthony Bourdain will eat anything, but I get queasy watching him.

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  50. @Denise/Thor: I simply never "got" that fad and still don't. They don't look good or comfortable. It's just strange how some things become popular that you think would never have a chance, while others that seem more likely languish. So random.

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  51. U.S. is still net (quality) food exporter! In Canada we get fresh vegiees and fruit from U.S. Mexico,and Chillie in winter and inspring. U.S. grown food tastes the best. Indians love sweet fruit, and Cali weather is very similar to our home state weather in India. Oranges, grapes, melons..really good.

    I Can

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  52. Crox.....
    You won't understand the appeal until you get them. Very comfortable and convenient with toe protection. Great for kids (no laces), mowing the lawn, rafting/tubing/canoeing or anytime you need to run outside real quick to get something.
    Terrible for being seen in public.

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  53. Lou Mish has a good one on Cisco's ongoing chickanery and whining about corporate taxes:

    http://globaleconomicanalysis.blogspot.com/2010/11/congratulations-to-cisco-insiders-for.html

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  54. @Thatguy: I hear you, but I guess I always thought were other more appealing footwear options for doing those things. Maybe I'm wrong about them. After all, I was also slow to the punch on the whole i-Phone craze.

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  55. Never underestimate the appeal of athlete's foot and other fungus!

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  56. @Manny,

    You really didn't just equate Crocs with the iPhone? At polar opposites on the spectrum of cool and not cool.

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  57. Thatguy - Hah! Full disclosure. I own a pair to work in the yards :-) I'd never be caught dead wearing them around town though!

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  58. LOL Denise. So true, but I was making the point that I don't get easily suckered into fads. I'm a skeptical late adopter (and often not at all) of new things.

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  59. Manny - Could you ever give your iPhone back at this point though? I was like you, I waited almost two years, I hate the thing to talk on, but I could never give it back now, I'm too dependent on so many of the Apps!

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  60. The muni market is taking it on the chin as well.

    Look MUB.

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  61. dss said:

    "Thank goodness that the hypocrite Meg Whitman and the failed CEO Fiorina did not make it. We have enough losers in government with out these two added to the mix."
    ~~~~~~~~~

    Wish I could be a "loser" like Meg Whitman. :-)

    From Wikipedia:

    "Whitman served as President and Chief Executive Officer of eBay from 1998 to 2008. During her ten years with the company she oversaw expansion from 30 employees and $4 million in annual revenue to more than 15,000 employees and $8 billion in annual revenue when she stepped down. She is the the fourth wealthiest woman in the state of California with a net worth of $1.3 billion in 2010."

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  62. No way, Thor. I'm FAR too addicted to that thing. I'm glad I waited though.

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  63. Anon - The Governator ruined the chances of anyone without any political experience being Governor here for awhile. He's a very unpopular Governor unfortunately. Also, there's there small problem of her not voting for many years. Last, she was well known in the SF Bay area and I don't think she was very popular there at all. Same for Fiorina, too many people in the Bay Area who are connected with HP who know that she was not well liked within the company.

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  64. "her" and "she" being Meg Whitman of course. I'm not quite the multi-tasker that I used to be it seems ;-)

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  65. @anon,

    She is still a hypocrite with zero government experience running for governor. A good example of her political tone deafness is her hiring of illegal aliens to do her domestic chores and when caught, she lied about it.

    Of course, in politics in the 21st century, where hypocrites, liars, pedophiles, tax cheats and Louisiana senators who like to put diapers on when having sex with prostitutes hold office, this more than qualifies her for governor of California, in fact this is such a minor offense when I think about it.

    No one said she wasn't a success at eBay. But I guess the voters of CA thought she was too odious of a candidate, despite her business success.

    Might have been all of those Hispanic voters that the Republicans are so fond of pissing off. The day is past when candidates like her can count on the white vote to put them into office while publicly dissing a major voting bloc.

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  66. Wow - Cisco is taking a beating today - worst day in 16 years? That's hard to believe considering the .com crash!

    Denise - Gracias! ;-)

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  67. There are times when I do agree with Lou Mish his Cisco post is dead on. Corporations like CSCO want it both ways, pay almost no taxes on overseas operations and then pay almost no taxes when they want to repatriate the capital. And we wonder why there are huge budget deficits? Of course the budget deficits are all caused by entitlements, which must now be cut to the bone.

    Corporate profits over the elderly! It is the American way!

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  68. By MARC LEVY
    Associated Press

    (AP:HARRISBURG, Pa.) The Republicans' big election victories in Pennsylvania and on Capitol Hill could be Christmas-come-early for the drilling companies that are rushing to exploit the Marcellus Shale, the biggest known deposit of natural gas in the nation.

    Republican Gov.-elect Tom Corbett is seen as a lot friendlier toward the industry than outgoing Democrat Ed Rendell, who has clashed with natural gas companies over both taxes and tougher new clean-water regulations.

    Also, the GOP takeover of the U.S. House will almost surely doom efforts in Congress to impose federal regulation over gas drilling.

    Among many Republicans, there is elation. GOP strategist Karl Rove told participants in an oil and gas industry conference in Pittsburgh last week that they can now expect "a period of sensible regulations."

    "As a signal, is it good? Yes," said a more cautious-sounding William Garner, a Houston lawyer and former investment banker who specializes in the natural gas industry. "But will it make a difference? Time will tell."

    Among other things, the incoming governor opposes any attempt to slap a gas-extraction tax on the industry. Pennsylvania is the largest gas-drilling state without such a tax, and Rendell tried and failed to persuade the Legislature to approve one. Corbett has also said he will lift Rendell's executive order preventing the issuing of any more drilling leases in state forests.

    A drilling boom has been under way since 2008 in the Marcellus Shale, a vast underground geologic formation that extends from West Virginia and eastern Ohio through Pennsylvania into southern New York. Some geologists estimate it could yield enough natural gas to supply the entire East Coast for 50 years.

    Its huge commercial potential was underscored earlier this week when oil giant Chevron struck a $4.3 billion deal to buy Atlas Energy, a major Marcellus Shale driller.

    Combining a new process of horizontal drilling with a technique known as hydraulic fracturing, or fracking, drillers are unlocking vast deposits there and in other formations around the U.S. such as the Barnett Shale in Texas _ a boom that could ensure cheap and plentiful natural gas for many years to come for homeowners, factories and power plants.

    The drilling frenzy in the Marcellus Shale is also credited with enriching landowners and pumping new life into trucking companies, short-line railroads, quarries and steel-pipe makers, as well as the restaurants and hotels hosting out-of-state drilling crews...."
    http://news.ino.com/headlines/?newsid=68974693798501

    AAIP

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  69. Ill. gambling revenue lowest in 10 years

    "Revenue from legalized gambling in Illinois is the lowest in 10 years.

    A report from the Legislature's Commission on Government Forecasting and Accountability found gambling revenue totaled just over $1 billion in the last fiscal year. That's a 4.5 percent drop from the previous year.

    Gambling industry representatives blame a smoking ban on riverboat casinos. Since the ban took effect nearly three years ago, receipts have dropped 28 percent."

    What surprised me is that the gambling industry is $1 billion in Illinois.

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  70. @Denise: Maybe everyone lost their money in the other less regulated casino also known as "Wall Street"? Maybe people are just too flat broke to gamble? Well, in the class formerly known as the "middle".

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  71. Poor Benny. Unhappy to be taking the blame for some of Greenie's sins. Here's the thing, wasn't Ben Greenie's right hand man for much of the time though?

    http://www.nytimes.com/2010/11/12/business/12norris.html?_r=1&hp

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  72. Denise - I think it's the smoking ban. They keep screwing around with that crap and people will just buy their smokes on the black market. People will always find a way to get around bans and taxes.

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  73. Manny, good article. Poor Benny.

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  74. It probably was a bit of both, bad economy and smoking ban. They shouldn't present it as an either/or causation. When the economy picks up I guess they will see if it is the smoking ban that was the main culprit.

    I won't go into a casino because of the smoking! (I gamble everyday, no need for a casino :-)) But maybe it is the tendency of people who smoke to gamble as well?

    Plus did I ever tell you about the preponderance of red vehicles in the parking lots of casinos? There are two close to my vacation home and I noticed that there were so many red cars and trucks in the parking lot.

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  75. Denise - really? I did not know that. I'll test the red car theory this weekend in PS! There are Indian casino's all over the place there, I stop at one on my way back to LA every weekend because the gas is so much cheaper.

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  76. http://finviz.com/quote.ashx?t=CSCO

    I've long wondered who? (what?) draws the lines on these Charts..

    http://finviz.com/quote.ashx?t=DIS&ty=c&ta=1&p=d

    http://finviz.com/quote.ashx?t=AGM&ty=c&ta=1&p=d

    "Farmer Mac" never gets any attention..

    AAIP

    also, the Sweet Stuff 'soured'..

    http://finviz.com/futures_charts.ashx?t=SB

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  77. http://finviz.com/futures_charts.ashx?t=CT&p=d1

    who likes ~120 before ~160

    on the Soft Stuff?

    AAIP

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  78. AP:WASHINGTON) Ralph Nader and consumer groups want the Obama administration to suspend General Motors' initial public stock offering, saying taxpayers could lose billions of dollars in the deal.

    Nader said in a letter Thursday that delaying the stock offering would allow the government to recoup more of its $50 billion investment and cautioned that the government would have less influence over the auto giant by reducing its ownership stake. He estimated taxpayers could lose nearly $5 billion by conducting the IPO this year.

    General Motors is moving ahead with a public offering expected to raise about $10 billion. The stock sale is expected to occur Nov. 18 and the government, the largest owner, is expected to reduce its stake in the company from 61 percent to just over 40 percent.

    GM has outlined plans to sell 365 million shares for $26 to $29 per share. The Treasury Department would receive about $7 billion from the stock sale, which would be followed by additional sales in the future to further reduce its ownership stake.

    The Obama administration has said it wants to sell off its ownership of GM as quickly as possible while protecting taxpayers and recouping as much of the $50 billion in federal aid as it can. Treasury officials have said they are not involved in GM's daily business decisions.

    The Treasury Department and GM both declined comment on Nader's letter. But there have been no indications that the IPO will be delayed. GM executives are conducting a global "road show," discussing the company's prospects to institutional investors to drum up interest in the sale.

    The letter was signed by Nader, the former presidential candidate and longtime auto industry critic, and leaders of consumer watchdogs Public Citizen and the Center for Auto Safety.
    http://news.ino.com/headlines/?newsid=689746956772790

    Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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  79. Nader is still alive? Anonymouys - we're going to have to delete that comment unfortunately.

    Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

    Is pretty clear . . . .

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  80. Or can we cut and paste AP stuff in it's entirety? Does anyone know?

    ReplyDelete
  81. Thor,

    no probs, btw, that was done on purpose

    also, @16:18 was me..

    AAIP

    By KEN THOMAS
    Associated Press

    (AP:WASHINGTON) Ralph Nader and consumer groups want the Obama administration to suspend General Motors' initial public stock offering, saying taxpayers could lose billions of dollars in the deal.

    Nader said in a letter Thursday that delaying the stock offering would allow the government to recoup more of its $50 billion investment and cautioned that the government would have less influence over the auto giant by reducing its ownership stake. He estimated taxpayers could lose nearly $5 billion by conducting the IPO this year.

    General Motors is moving ahead with a public offering expected to raise about $10 billion. The stock sale is expected to occur Nov. 18 and the government, the largest owner, is expected to reduce its stake in the company from 61 percent to just over 40 percent.

    GM has outlined plans to sell 365 million shares for $26 to $29 per share. The Treasury Department would receive about $7 billion from the stock sale, which would be followed by additional sales in the future to further reduce its ownership stake.

    The Obama administration has said it wants to sell off its ownership of GM as quickly as possible while protecting taxpayers and recouping as much of the $50 billion in federal aid as it can. Treasury officials have said they are not involved in GM's daily business decisions.

    The Treasury Department and GM both declined comment on Nader's letter. But there have been no indications that the IPO will be delayed. GM executives are conducting a global "road show," discussing the company's prospects to institutional investors to drum up interest in the sale.
    http://news.ino.com/headlines/?newsid=689746956772790

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  82. "excerpt" posted for educational use

    @16:40

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  83. also, for peep interested in things "mobile" (IT)

    this:

    http://mobiledevdesign.com

    is a good site

    AAIP

    ReplyDelete
  84. This article was covered on NPR the night before last and it got me spooked about this stuff :-)

    Online Rage Goes Viral After Cooks Source Lifts Article Claiming Internet is 'Public Domain

    Cooks Source, a website providing online recipes and cooking advice, has become the subject of controversy after a claim the site had copied an article from another website without permission. Cooks Source maintains the St. Petersburg Times.

    The conflict began in late October, when a contributor for Godecookery.com was informed by a friend her article about Medieval apple pie had been posted on Cooks Source. Monica Gaudio was unaware her article had been published elsewhere and began making inquiries immediately.

    The editor of Cooks Source responded to Gaudio's query by saying, "the web is considered 'public domain' and you should be happy we just didn't 'lift' your whole article."

    The Internet community did not find the editor's reply at all amusing or satisfactory. Shortly thereafter, the uproar went viral, as sympathetic and angry bloggers learned of Gaudio's story after she posted a copy of the reply to her site. Facebook and Twitter users as well as bloggers everywhere rallied so vehemently against the blatant copyright infringement violation, the website was ultimately taken down.

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  85. "If you were to believe the banks, the concern over foreclosure “improprieties” is way overdone. They claim that the robo signers really weren’t doing anything seriously wrong, the banks just need to redo some paperwork, and everything else about foreclosures is just fine.

    Yet Bank of America, having made the implausible claim that it had reviewed 102,000 cases in a few weeks and nothing was amiss, was forced to retreat and acknowledge that it’s review hadn’t been comprehensive, and it was finding errors at a rate that could exceed 5%.

    The bank position so far has been that problems so far are mere mistakes and “sloppiness”. But as we’ve described repeatedly, the problems with securitzations run much deeper than that. It appears that the parties to the deal often failed to take the time consuming steps necessary to convey the note (the borrower IOU) to the trust as stipulated in the contract governing the deal, the pooling and servicing agreement. The PSA required that each note in the deal had to be signed by multiple intermediary parties before it got to its supposed final resting place, a trust. And that had to take place by closing or at most 90 days thereafter..."
    Guest post from Yves Smith of Naked Capitalism.

    http://dailybail.com/home/robo-signing-is-childs-play-compared-to-this-bank-of-america.html

    AAIP

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  86. Just saw at the gym that Disney missed badly on both top and bottom lines? Is that right? Another bellweather missing? Ominous signs?

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  87. Manny - at the very least should be good for another down day tomorrow.

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  88. Matt Taibbi blows the door off the entire Foreclosuregate scam with yet another article.....

    In one case handled by Jacksonville Area Legal Aid, a homeowner refinanced her house in 2005 but almost immediately got into trouble, going into default in December of that year. Yet somehow, this woman's loan was placed into a trust called Home Equity Loan Trust Series AE 2005-HE5 in January 2006 — five months after the deadline for that particular trust. The loan was not only late, it was already in foreclosure — which means that, by definition, whoever the investors were in AE 2005-HE5 were getting shafted.

    Why does stuff like this matter? Because when the banks put these pools together, they were telling their investors that they were putting their money into tidy collections of real, performing home loans. But frequently, the loans in the trust were complete ****. Or sometimes, the banks didn't even have all the loans they said they had. But the banks sold the securities based on these pools of mortgages as AAA-rated gold anyway.

    Right. So what's the bottom line?

    In short, all of this was a scam — and that's why so many of these mortgages lack a true paper trail. Had these transfers been done legally, the actual mortgage note and detailed information about all of these transactions would have been passed from entity to entity each time the mortgage was sold. But in actual practice, the banks were often committing securities fraud (because many of the mortgages did not match the information in the prospectuses given to investors) and tax fraud (because the way the mortgages were collected and serviced often violated the strict procedures governing such investments). Having unloaded this diseased cargo onto their unsuspecting customers, the banks had no incentive to waste money keeping "proper" documentation of all these dubious transactions.
    ....
    http://market-ticker.org/akcs-www?singlepost=2259213

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  89. Nothing surprises me anymore anon, although I guess I'm a little surprised by the continued blase deer-in-the-headlights mentality by the public at this point. Do people just not understand how widespread the fraud was, and continues to be or do they prefer to remain in denial about it because culturally we're a nation of naive children who can't face up to truths if they happen to be unpleasant. I wonder if there will ever be a tipping point when enough people care enough to do something about it?

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  90. Manny - forget about that. I'm almost apoplectic that people don't seem to understand, at a fundamental level, what we face over the next 10 years. You want to grab people and shake them. I used to think it was just an LA thing, but in talking to my friends in other states, it's like this everywhere!

    I understand that people have lives to live, but sheesh!

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  91. I am not sure that posting the large excerpts or entire articles constitutes "fair use" of copyrighted materials whether it is for educational use or not without permission by the author.

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  92. Consequences of Uploading Copyrighted Material

    Anytime Blogger is properly notified that a blog or any part of a blog on our site infringes the copyrights of a third party, we will take it down from the site as required by law. If you believe that a blog infringes your copyright, please send us a copyright notice and we'll take it down. If you believe we've removed content from your blog in error and that you are the copyright owner or have permission, you can file a counter notice and let us know. Accounts determined to be repeat infringers may be subject to termination.

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  93. The first piece of good news from last weeks election was the passage of Proposition 25 which does away with the hated 2/3rd majority for any budget to be passed in the State of California. This should enable budgets to be done sooner as a simple majority is all that will be needed to pass a budget in the state. Note that this is for the passage of a budget only, raising taxes still requires a 2/3rd majority for passage.

    Riding on the coat tails of Prop 25 was Prop 26 which forbids legislatures from re-classifying what was once considered a tax (vehicle registration for instance) into a fee in order to bi-pass the state law that required a 2/3rd majority for any tax increase.

    Last, was the passage of Proposition 20 which takes congressional redistricting out of the hands of politicians. New rules require an independent board of citizens who will draw the new lines for the election of 2012. Much of the extreme partisanship and gridlock in California has been blamed on politicians who are being elected in very safe districts which can often put the more extreme members of each political party into office. The idea behind the passage of Prop 20 is that the new citizens board will draw more competitive districts which will force politicians to govern from the center so as to appeal to as many people as possible to get elected.

    ---

    If I may play professor for a moment. Can you explain to me your rationale for each of these measures, without any challenge from this forum, being, as you dub, "good changes coming down the pike."?

    No time limit will be placed on this exam. It's just to satisy my intellectual curiosity.

    Thank you.

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  94. Anonymous - No, get a handle and I might consider it.

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  95. @MEH,

    Thanks for "thoughts" on Cotton. Appreciate.


    I Can

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  96. This about sums it up from that Taibbi article. People just don't give a shit. At all. Will that ever change?

    "What's sad is that most Americans who have an opinion about the foreclosure crisis don't give a shit about all the fraud involved. They don't care that these mortgages wouldn't have been available in the first place if the banks hadn't found a way to sell oregano as weed to pension funds and insurance companies. They don't care that the Countrywides of the world pushed borrowers who qualified for safer fixed-­income loans into far more dangerous adjustable-rate loans, because their brokers got bigger commissions for doing so. They don't care that in the rush to produce loans, people were sold houses that turned out to have flood damage or worse, and they certainly don't care that people were sold houses with inflated appraisals, which left them almost immediately underwater once housing prices started falling."

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  97. What a great final line in that article too -

    "Because in America, it's far more shameful to owe money than it is to steal it."

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  98. Manny - nope, people don't care at all. When the people running things are this crooked, why would we expect anyone else to care about such things? Everyone seems to be out for themselves.

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  99. @Thor: I'd like to hear your reply on the inquiry above. We did say that we encouraged dissenting points of view.....

    I don't necessarily have an opinion on this either way but would like to see some back and forth on it.

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  100. Manny - "there is no time limit on this exam"

    Exam? What exam? No thanks. I'll be happy to email you directly if you'd prefer, but I'm not playing this game, yet again.

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  101. And really now - I need to explain to someone why not having a 2/3rd majority to pass a budget after we've had to resort to IOU's twice in the last 10 years and the last budget was almost 90 days late?

    Or Why it's a positive thing that legislatures cannot reclassify taxes as fees to get around a 2/3rd majority for raising taxes?

    That seems silly to me, the intent of this anonymous poster is obviously not to engage in debate, it's to test whether or not I can argue a point. "exam" get it? ;-)

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  102. @Thor,

    Geez Louise, I got scared there for a moment thinking we have to pass exams again!

    ReplyDelete
  103. Everyone - With regard to posting copyrighted material, I think we should abide by the Blogger Rules set out by Google.

    Links should always be provided to any material that is not your own, and limit the amount of cutting and pasting of this material. A few sentences is considered "fair use", any more than that can be considered in violation of the United States copyright laws.

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  104. Denise - I know, that's what turned me off, you don't start a discussion with someone by saying it's an exam :-)

    I left off Proposition 23 which would have suspended AB 32, The Global Warming Act of 2006. I can imagine that would have sent a few people over the edge.

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  105. Denise - ooooh, that's good to know. I usually only cut and paste a few paragraphs. Probably doesn't matter if it's in a post, or a comment does it?

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  106. Elizabeth Warren is in the running to be Time's Person of The Year. I hope to hell she wins. I'd love to know if anyone is tracking her approval rating.

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  107. @Thor/Denise

    So. I assume that means I can expect no reply then. Unless I get what you label as "a handle", for your blog.

    OK. Here's my handle. I'm "Governor Jerry Brown". As newly elected governor of the state of Califiornia, I'm interested in knowing how my constituents view these measures/propositions.

    Please comply (for the betterment of the State of California).

    Thank you, sir!
    JB

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  108. @Thor,

    No. Anything that a person posts (comments) to a website is subjected to these rules. I know I don't want to get sued or have this website deleted because of copyright infringement.

    It is a bannable offense at some websites to post material without attribution, or posting too much of a copyrighted piece.

    I don't make the rules! (Google does)

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  109. Yes. of course. "do no evil" (google)

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  110. @anon 7:35

    I don't know why you are referencing me in your response to Thor. If you have a problem with Thor's response, please limit your comments to him.

    But since you dragged my name into this:

    No one is under any obligation to respond to anyone else's demand for answers, explanations or exam, no matter how politely the questions are asked.

    Especially when they do not give everyone here on the blog the courtesy of identifying themselves. This is a blog, we are not testifying under oath.

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  111. So, let's move on, shall we boys and girls?

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  112. Anonymous - what exactly are you looking for here? You want more detail than I've already given you on why I think these are good propositions?

    What do I get if I pass your "exam"? A gold star?

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  113. JB . . . JB . . . .ooooooooh! Sneaky! ;-)

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  114. @Thor,

    Maybe when you pass the exam you could put a big gold star on your cute little dog, you know like they give the kids in pre-school.

    Take all the time you need, Thor, I know these exams are really, really hard for you. ROFL.

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  115. Governor Jerry BrownNovember 11, 2010 at 8:05 PM

    Thor-

    Since it appears that there will be no answer forthcoming with regards to my inquiry (as to your motives for your pledged support of the various California ballot initiatives expressed in this thread).

    I will, as you request, move on to the governors mansion.

    I apologize, in advance, for any failures I may have as governor, to satisfy your future concerns as a citizen. (as, of course, I have no idea as to what they may be since you express reluctance in contributing opinions towards that end).

    I wish you all the best in your quest for 'truth discovery' as witnessed this evening by your blogging correspondence. And, of course, thank you you for what I expect was your vote.

    JB

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  116. JB - Hah! That was awesome! That most definitely warrants a reply to your original question. I'm about to head home (it's after 5:00 here) so will reply as soon as I get in.

    Thanks for having a sense of humor about it - we've had some unfortunate anonymous drive by's so we're (or maybe just me) are a bit sensitive about it.

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  117. And look - Someone gave me a Gold Star already!!

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  118. Governor Jerry BrownNovember 11, 2010 at 8:19 PM

    Thor-

    No problem.

    I'd be delighted to hear your thoughts.

    JB

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  119. @Thor:

    I find it hard to believe that a Governor of a state with one of the largest economies in the world has time to prepare comments and blog, as above.

    I'm not a resident of the State of California anymore, but I would hope that a Governor would use his time more usefully, like have his staff prepare a survey to find out the thoughts of many/most people about what they think of this stuff, and read a summary and take appropriate action. I would think that, as you said, the propositions passed, so the thoughts of one individual are truly moot; now the time should be spent on making it happen. The people have already spoken.

    I never was a Governor, but I ran a department of over 400 people, and let me tell you, I never had time to go out and find out individually what one was thinking: I had managers and supervisors for that who prepared reports for me to read. And that was only 400 people. I forget exactly how many are in California, but I think it's lots more than that.

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  120. Rock-

    Of course. You're exactly right.

    Policy should never be based on the thoughts of any one individual. Just like fine wine. It would be ridiculous to think that a good wine could ever be produced from the careful cultivation from the vineyard of one conscientious grape grower who devoted a lot of time, effort, and toil to his/her craft.

    Instead, a good wine must naturally & simply come from mixing a bunch of grapes together ad hoc.

    Even if it tastes like rock gut. You must force it upon people & demand that they enjoy it because, well, you demanded it to be that way.

    In the name of community harmony, good will, and understanding, of course.

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  121. ROck - Hah, true dat. I think we know our anonymous friend though. Just a feeling.

    JB - give me a few, I need to take my evening, um, yeah.

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  122. JB - Can you clarify this statement for me please?

    "Can you explain to me your rationale for each of these measures,"

    What do you mean my rationale? Do you mean my opinion on why their passage was positive? Or what I think well result from their passage? Or why I voted for these particular propositions? Or, why I felt they were needed in the first place?

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  123. Here's a quote from the rock:

    Next to Newspapers, cut-and-paste is the largest impediment to independent thought.

    The rules of Blogger supersede copyright law, and what I read from Dss' link above is that if the author complains and provides DMCA-compliant notification to Google, the blog may be taken down. Whether or not it violates fair use is not a consideration.

    I believe Google is doing this to protect themselves in the event of a dispute.

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  124. Rock - I like that quote a lot, is that yours?

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  125. @Anonymous:

    In this case, the majority of the people who spoke, like this rot-gut, and now the ball's in your court. What are you going to do, and when will it be done?.

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  126. ICan - I saw something today that made me think of you. Actually it made me think of Rock too. From a facebook friend I went to high school with - her husband was transferred to India for work.

    Helen - A big phrase here is "loose motions" after you've eaten too much Indian. I mean, even in polite conversation they'll mention their loose motions. WHOA! TMI !

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  127. @Thor:

    I'll try for a post. It will be trade-oriented, so I hope the political stuff can stay here.

    I'll let you know if/when I fail.

    As far as I know, that quote is mine. I googled "largest impediment to independent thought", and although that's not a complete search, there were no hits.

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  128. Rock - sounds good. I'm normally up till about 11 Pacific, which is about 3 your time I think.

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  129. Thor-9:25

    all of the above

    Rock-9:38

    I don't understand a word you're saying there. I'm guessing you're not American becuase your use of the English language there is garbled.

    No offense intended by that. Most Americans can't even spell. I apologize in advance if it was my error for not understanding.

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  130. Asperger syndrome or Asperger's syndrome (English pronunciation: /æspɜrɡɜrz/) is an autism spectrum disorder that is characterized by significant difficulties in social interaction, along with restricted and repetitive patterns of behavior and interests.

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  131. JB - OK. The propositions speak for themselves for the most part.

    Proposition 25 did away with the 2/3 majority requirement for the legislature to pass a budget. As I'm sure you are aware, in the last 20 years California has passed it's budget on time only a hand full of times. The lack of a budget has been, at least in part, responsible for a number of credit downgrades, which, as I'm sure you also know, has cost the state a considerable amount of money.

    An argument could be made, that having a simple majority will only give the democrats an easier way in which to spend taxpayers money unwisely, as democrats are wont to do, blah blah blah. I would counter that argument by saying that for the foreseeable future, California is not going to have very much extra money for Democrats to waste. Also, when times are good in California, the Republicans in this state, as in the rest of the country, are more than happy to increase spending. Let's not forget, that in many cases, it's these very Republicans, who voted for the increase in pay and pension benefits to these horribly greedy public employees.

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  132. Moving on -

    Riding on the coat tails of Prop 25 was Prop 26 which forbids legislatures from re-classifying what was once considered a tax (vehicle registration for instance) into a fee in order to bi-pass the state law that required a 2/3rd majority for any tax increase.

    I'm confused as to why you would need me to clarify anything in this, I think it rather speaks for itself don't you?

    In any case. For a number of years now, the Democrats have been playing, what I feel, are dirty tricks with the budgets in order to get their way. Any tax increases in the state of California require a 2/3rd majority in the legislature. A fee, on the other hand, say admission to State Parks, or a business license, only requires a simple majority.

    What the Democrats have been doing, is taking things that were considering taxes, like vehicle registration, and re-classifying them as a fee to get around the 2/3 rule.

    The passage of Prop 26 forbids this.

    Bottom line, in my opinion, what I think we have accomplished in this state with these two propositions, is that it is going to be just as difficult as it has always been to raise taxes, in fact, it is now harder, because reclassifying a tax as a fee is a no no. However, cutting costs, in order to get a budget on time, will now be easier because it only requires a simple majority. I still believe, as naively as it may sound, that there ARE enough sane, fiscally responsible, Democrats in the legislature, so that enough of them will join with the Republicans and make an effort to get our budget mess under control.

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  133. Proposition 20 is far more complicated - it goes into the demographics of the state, the psychology of our primary system, and a lot of conjecture on who exactly is going to pick this "citizens commission" I don't think I have it in me tonight to write that up properly.

    The public employee union contract that was just signed speaks for itself. Yes, it's only 5%, and yes, they are now immune to more furlough days, but it's a start, and please at least acknowledge that 75 of public employee members who voted, voted yes for this. It's a start, and it certainly pokes a hole in Lou Mish's carefully crafted caricature of the greedy, selfish, union member sucking America dry.

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  134. is naively even a word?? NAIVE!

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  135. And last - Be nice. I don't know who you are but I have a suspicion and you should know better by now.

    I don't care if you don't mean any offense at all buddy, but you don't come here and say shit like " becuase your use of the English language there is garbled" to people on this blog. Do you understand? We treat each other with respect, and if you do do not think you can abide by those rules, then buddy, take that sorry ass attempt at condescension right on down the road. We're not interested.

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  136. @Anonymous

    Let me see if I can be more clear. I forget you are a politician, and need perfect clarity. Hopefully I can do this adequately in your native tongue.

    1. You say you are the Governor of the State of California, Jerry Brown.

    2. In your 9:14 post, you say "Policy should never be based on the thoughts of any one individual".

    3. In your 9:14 post, You use a metaphor changing "policy" to "wine".

    4. In your 9:14 post, you insinuate this wine, or policy, may taste like "rock gut". That presumably is bad, but I may be misinterpreting "rock gut" in which case you should write more clearly.

    5. In my 9:38 post, I say "In this case" which means the policy referenced in the top post.

    6. In my 9:38 post, I say "the majority of the people who spoke" which means that "the majority of the people who voted." Being a politician, I'm sure you realize the only way for people to express their will officially to an elected official is to vote. This is the way we the people speak to politicians.

    7. In my 9:38 post, I say "like this rot-gut". Here is my error: I meant to write "like this rock-gut" continuing your metaphor.

    8. In my 9:38 post, I say "and now the ball's in your court". This is a metaphor. Since you used one, you appear to understand their use. I can understand how you may not grasp its meaning. This metaphor is in reference to a tennis game, where the ball is hit from one side of a net to another. If the ball is hit into your court, it is your responsibility to deal with it. So the metaphor "the ball's in your court" means the policy which has been communicated to you, the Governor of California, is your responsibility to handle.

    9. In my 9:38 post, I say "What are you going to do" which means what will you do about handling the above referenced responsibility.

    10. In my 9:38 post, I say "when will it be done" where the "it" references the "what" portion of the "what are you going to do". This sentence therefore asks for a schedule of when you are going to handle and complete your responsibility.

    I hope this clarifies the 9:38 post enough for even someone with a Harvard law education to understand.

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  137. Well then, I think I'll just mosey on over to the corner then. It seems as if Rock is perfectly capable of defending himself. :-)

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  138. My heart was in the right place though!!

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  139. @Thor: Thanks.

    My images on the other post didn't come out so well.

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  140. Rock - how do you mean? Do you want me to take a look?

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  141. @Thor:
    No, I guess they're OK. I click them and they blow up to a size that I can read.

    How do you put images at the end? Or in the middle? AmenRa used to be able to do that.

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  142. Rock - When you upload images, or at least when I do, they always go to the top for some reason. No matter where I try to put them. So, once I see that html code at the top of the post, I just cut and paste it down to another part of the post.

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  143. Great post, Rock but I expected you would do well.

    The template that is provided is easy to use but it does have it's limitations.

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  144. Governor Jerry BrownNovember 12, 2010 at 5:06 AM

    Thor-

    10:11
    An argument could be made, that having a simple majority will only give the democrats an easier way in which to spend taxpayers money unwisely, as democrats are wont to do, blah blah blah. I would counter that argument by saying that for the foreseeable future, California is not going to have very much extra money for Democrats to waste.

    **

    I'll give you credit for identifying the possible other side of the argument (that being the notion that only requiring a simple majority would most likely end up having spending initiatives fast tracked by whichever party happens to be in the majority).

    Good - if you're in the majority, bad if you're not.

    As for spending, what makes you think that just because the state is broke, it won't still pass spending measures? The USA is broke, and it's not having any problem spending money.

    Perhaps I'm putting words into your mouth here, but I take it to assume that as long as the party you like is in the majority, then the measure has a thumbs up. When the party you don't like comes into majority, the idea won't seem like such a good one.

    To give you an example, the GOP just took over the US HOR by a pretty wide margin. In theory, if there had existed the same type of proposition (applied to the US in this case). You'd be scared to death right now (notwithstanding the fact that the GOP, "falsely" puts itself out to be the party of austerity).

    Bottom line? No matter what happens, there are going to be clowns spoending money. You just want them to be "your" clowns.

    10:21
    Semantics. Don't take my tone as being inflammatory here, but what the hell difference does it make if something is called a tax or a fee? What comes out of your pocket is what's at issue here. Not what it's called.

    Prop 20
    Regardless of what you decide to pen, I'm probably going to take the other side of that and say that sounds downright scary.

    Demographics of citizens? Hmmm. I wonder where that could possibly lead?

    - Oh no, what if all the "tea partiers" organized to seat themselves on these boards?
    - Maybe there is a latent nazi party that wanted to resurface?
    - gays?
    - hot rod clubs?
    - hells angels?
    - Sara Palin fan club members?
    - crips?
    - bloods?

    And again, it's semantics. What in the world is the difference between the politicians themselves, or what this is, an essential "buffer zone" (likely controlled by the politicians anyway).

    It's just more fancy ways of doing things (in the name of progress), when nothing is actually being done.

    But in the end. I'm glad you seem to be happy about everything.

    Thanks for taking time on the explanation.

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  145. Governor Jerry BrownNovember 12, 2010 at 5:16 AM

    @Rock

    11:05
    Your explanation, frankly, explained nothing (I'm being serious).

    But it was highly entertaining! :-)

    And since the discourse apparently went from the "sublime to the ridiculous" in that "volley" (to use your tennis metaphor), I suppose we ought to leave it at that.

    Your right. We politicians are s-l-o-w (especially me). But I'm glad that Thor saw past all that and voted me into office anyway. :-)

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  146. Governor Jerry BrownNovember 12, 2010 at 5:17 AM

    "You're" right (we politicians make a lot of typing errors as well).

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  147. Governor Jerry BrownNovember 12, 2010 at 5:28 AM

    One last thing.

    The QOTD

    "The cynics are right nine times out of ten"
    H.L. Mencken

    From what I've read, all of you seem to like to agree on everything.

    I'm "cynical" of what's produced by that dynamic. So based on someones motivation to feature that as a QOTD, does that make me stand a 90% chance of being correct in that observation?

    Or did someone just slap it [the QOTD] up there because it looks intelligent? Just wondering?

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