Housing Crisis Explanation

Don't understand the financial catastrophe? Help has arrived. This article a week ago from Culture11 - posted by by admin@libertywire.com.

Lee

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5 Easy Pieces

Don't understand the financial catastrophe? Help has arrived.

By Conor Friedersdorf, September 22, 2008

Why is our financial system on the brink of collapse? Believe it or not, I can tell you the whole story in a single page -- as long as I'm allowed help from the easiest to understand stuff on the Internet.

Visit these 5 links and you'll once again understand the world.

#1) Background knowledge: "The Giant Pool of Money"

This is the best piece of financial journalism ever, and it doesn't even require you to read anything! Hear from a homeowner who admits to borrowing irresponsibly, a guy who got filthy rich selling loans he knew were bad, and the many threads that connect them. NPR's report covers 90 percent of what you need to know about what caused the housing crisis.

Explained: What exactly is a housing bubble? How did America get into one? Who gave out all those bad home loans? Who took them? Why didn't anyone seem to know better?

#2) Giant Companies You've Never Heard Of Fail

Some very smart people from the University of Chicago explain why it matters.

Explained: What is Fannie Mae? Who are the Lehman Brothers? What is AIG? Why did they fail? Why should you care?

#3) What's a "Credit Crunch"?

With banks and other large corporations failing, and those still solvent worrying about how much money they've actually got, it's going to be increasingly hard to borrow money:

A credit crunch happens when banks begin clinging to their money rather than lending it out. The result of this is that fewer people are able to get loans, credit cards and mortgages so things that we would buy if we had those credit facilities – such as houses, cars, holidays and so on – are no longer an option.

All that via this obscure British Web site that's probably not worth visiting.

The concern is that if consumers can't borrow, they won't spend as much. And the people who make and sell stuff won't make as much money, so they'll lay people off.

#4) The Road to Serfdom... or Salvation

Okay, now we know why we're in trouble. So how do we get out of it? Jim Manzi explains where we're trying to get--and the catastrophes that could result if we fail.

Explained: Wait, I don't have a bad mortgage or much stock -- why should I care if the government bails out failing banks? What are the risks of Congressional action? What could happen if they don't do anything? What's the best case scenario? What's the worst case?

#5) The Plan to Save Us

This brief Q&A explains the Wall Street bailout plan that Congress is considering. Extra credit: a slightly more complicated explanation of why it should terrify you.

Explained: Why would the government buy bad mortgages? Why is $700 billion the amount they're willing to spend? Is this plan unfair to some people? Does it give the Secretary of the Treasury insane amounts of power?

(Additional reading: if you've now become a finance junkie, start reading blogs by Megan McArdle, Tyler Cowen, and Paul Krugman, and the people to whom they link.)

Iran: A Christian jailed for converting from Islam

Team, Below is a reminder of the intolerance and hate we are dealing with. Why would anyone in their right mind think that such an intolerant regime based on Islamic fundamentalism that would hate and kill for turning from Islam is better or on any kind of moral standing to critique the USA which has done more good throughout the world to ease pain and encourage human rights. BTW. The record of building up people and respecting life is indisputable and provable - the opposite is not. Lee -------------------------------------------------------- Iran: A Christian jailed for converting from Islam

from The Corner by Mike Potemra Wednesday, 03 September 2008

NCRI – On August 22, Ramtin Soudmand, a Christian man whose father was executed 20 years ago by the mullahs' regime for converting to Christianity was arrested by the local office of the Ministry of Intelligence and Security (MOIS) in the holy city of Mashhad. "He was summoned to the local office of MOIS in Mashhad," a family member said. Soudmand lived in Tehran since his father's execution, however he was to report to Mashhad. "Ramtin decided not to pay any attention to the call and had said that he would wait until MOIS office in Tehran sent him a new summon," his mother said. Considering Mrs. Dibaj and her husband's problems in the past with the MOIS in Mashhad, Soudmand changed his mind and reported to the dreaded MOIS in that city where he was last seen. Rev. Mehdi Dibaj was brutally murdered by agents of the Ministry of Intelligence and Security (MOIS). Dibaj was abducted on June 24, 1994. His body was found in a west Tehran park on July 5, 1994. On September 26, 2006, the MOIS agents arrested Mrs. Fereshteh Dibaj, 28 and her husband, Reza Montazami, 35 in the holy city of Mashhad. Later the couple were transferred to an unknown location for a few days. While in custody, their house was searched by the MOIS and some of their belongings such as computers, CDs, documents and Christian books, were sized. On July 26, the mullahs' agents of the notorious Ministry of Intelligence and Security (MOIS) attacked a house-church in the small township of Malak in the suburbs of the central city of Isfahan. In the raid, eight men, 6 women and two children were arrested. The victims were transferred to an unknown location. Among the detainees, there was an elderly couple in their 60s. The suppressive forces beat up these two senior citizens causing them serious injuries. They were transferred to Shariati Hospital in Isfahan where they were hospitalized in ICU. The MOIS agents thoroughly searched the house for forbidden Christian books and literatures. In a similar raid on a house-church in October of last year, the MOIS agents arrested a Christian couple in Karaj 40 kilometers west of the capital. The mullahs' regime is furious over Muslims converting to any other faith especially Christianity. It has even introduced a controversial bill to its Majlis (parliament) calling for death penalty for individuals converting from Islam to any other faith.

Back to Iraq

Back to Iraq

from The Corner by Jonah Goldberg

Dexter Filkins had a very interesting piece in yesterday's New York Times: BAGHDAD -- At first, I didn't recognize the place. On Karada Mariam, a street that runs over the Tigris River toward the Green Zone, the Serwan and the Zamboor, two kebab places blown up by suicide bombers in 2006, were crammed with customers. Farther up the street was Pizza Napoli, the Italian place shut down in 2006; it, too, was open for business. And I'd forgotten altogether about Abu Nashwan's Wine Shop, boarded up when the black-suited militiamen of the Mahdi Army had threatened to kill its owners. There it was, flung open to the world. Two years ago, when I last stayed in Baghdad, Karada Mariam was like the whole of the city: shuttered, shattered, broken and dead. Abu Nawas Park -- I didn't recognize that, either. By the time I had left the country in August 2006, the two-mile stretch of riverside park was a grim, spooky, deserted place, a symbol for the dying city that Baghdad had become. These days, the same park is filled with people: families with children, women in jeans, women walking alone. Even the nighttime, when Iraqis used to cower inside their homes, no longer scares them. I can hear their laughter wafting from the park. At sundown the other day, I had to weave my way through perhaps 2,000 people. It was an astonishing, beautiful scene -- impossible, incomprehensible, only months ago. When I left Baghdad two years ago, the nation's social fabric seemed too shredded to ever come together again. The very worst had lost its power to shock. To return now is to be jarred in the oddest way possible: by the normal, by the pleasant, even by hope. The questions are jarring, too. Is it really different now? Is this something like peace or victory? And, if so, for whom: the Americans or the Iraqis? There are plenty of reasons why this peace may only amount to a cease-fire, fragile and reversible. The "surge" of American troops is over. The Iraqis are moving to take their country back, yet they wonder what might happen when the Americans' restraining presence is gone. The Awakening, a poetic name for paying former Sunni insurgents not to kill Americans or Iraqis, could fall apart, just as the Shiite Mahdi Army could reanimate itself as quickly as it disappeared. Politics in Iraq remains frozen in sectarian stalemate; the country's leaders cannot even agree to set a date for provincial elections, which might hand power to groups that never had it before. The mountain of oil money, piled ever higher by record oil prices, may become another reason to spill blood. But if this is not peace, it is not war, either -- at least not the war I knew. When I left Iraq in the summer of 2006, after living three and a half years here following the collapse of Saddam Hussein's regime, I believed that evil had triumphed, and that it would be many years before it might be stopped. Iraq, filled with so many people living so close together, nurturing dark and unknowable grievances, seemed destined for a ghastly unraveling. And now, in the late summer of 2008, comes the calm. Violence has dropped by as much as 90 percent. A handful of the five million Iraqis who fled their homes -- one-sixth of all Iraqis -- are beginning to return. The mornings, once punctuated by the sounds of exploding bombs, are still. Is it possible that the rage, the thirst for revenge, the sectarian furies, have begun to fade? That Iraqis have been exhausted and frightened by what they have seen?

Factcheck.org - Palin Truth in the face of lies

Team,

Increasing lies and innuendos about Governor Palin abound. The Dems will stop at nothing - seem to know no moral bounds - to discredit the no. 1 threat to their Presidency... Sarah Palin. Now, don't get me wrong, McCain is finally hitting his stride as well (maybe spurred by Sarah) but without Palin, his candidacy is very ordinary.

Below is a link to Factcheck.org where lies are sorted from the truth. I have copied the "Sliming Palin" article from there for ease of distribution.

Sarah Palin is not "perfect" (there may be minor missteps that come to light) but her integrity and intent is above board and as attacks increase on her, I believe it will have the effect of painting the Dems in a bad light and backfire.

Here's to the Dems stepping in a pile of poo again!

Lee

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http://www.factcheck.org/election-2008/sliming_palin.html

Sliming Palin

September 8, 2008

False Internet claims and rumors fly about McCain's running mate.

Summary

We’ve been flooded for the past few days with queries about dubious Internet postings and mass e-mail messages making claims about McCain’s running mate, Gov. Palin. We find that many are completely false, or misleading.

* Palin did not cut funding for special needs education in Alaska by 62 percent. She didn’t cut it at all. In fact, she tripled per-pupil funding over just three years.

* She did not demand that books be banned from the Wasilla library. Some of the books on a widely circulated list were not even in print at the time. The librarian has said Palin asked a "What if?" question, but the librarian continued in her job through most of Palin's first term.

* She was never a member of the Alaskan Independence Party, a group that wants Alaskans to vote on whether they wish to secede from the United States. She’s been registered as a Republican since May 1982.

* Palin never endorsed or supported Pat Buchanan for president. She once wore a Buchanan button as a "courtesty" when he visited Wasilla, but shortly afterward she was appointed to co-chair of the campaign of Steve Forbes in the state.

* Palin has not pushed for teaching creationism in Alaska's schools. She has said that students should be allowed to "debate both sides" of the evolution question, but she also said creationism "doesn't have to be part of the curriculum."

A few of these claims were included in a chain e-mail by a woman named Anne Kilkenny. We'll be looking into other charges in that e-mail for a future story. For more explanation of the bullet points above, please read the Analysis.
Analysis
Since Republican presidential nominee John McCain tapped Alaska Gov. Sarah Palin to be his running mate, information about Palin's past has been zipping around the Internet. Several claims are not true, and other rumors are misleading.

No Cut for "Special Needs" Kids

It's not true, as widely reported in mass e-mails, Web postings and at least one mainstream news source, that Palin slashed the special education budget in Alaska by 62 percent. CNN's Soledad O'Brien made the claim on Sept. 4 in an interview with Nicolle Wallace, a senior adviser to the McCain campaign:

O'Brien, Sept. 4: One are that has gotten certainly people sending to me a lot of e-mails is the question about as governor what she did with the special needs budget, which I'm sure you're aware, she cut significantly, 62 percent I think is the number from when she came into office. As a woman who is now a mother to a special needs child, and I think she actually has a nephew which is autistic as well. How much of a problem is this going to be as she tries to navigate both sides of that issue?

Such a move might have made Palin look heartless or hypocritical in view of her convention-speech pledge to be an advocate for special needs children and their families. But in fact, she increased special needs funding so dramatically that a representative of local school boards described the jump as "historic."

According to an April 2008 article in Education Week, Palin signed legislation in March 2008 that would increase public school funding considerably, including special needs funding. It would increase spending on what Alaska calls "intensive needs" students (students with high-cost special requirements) from $26,900 per student in 2008 to $73,840 per student in 2011. That almost triples the per-student spending in three fiscal years. Palin's original proposal, according to the Anchorage Daily News, would have increased funds slightly more, giving intensive needs students a $77,740 allotment by 2011.

Education Week: A second part of the measure raises spending for students with special needs to $73,840 in fiscal 2011, from the current $26,900 per student in fiscal 2008, according to the Alaska Department of Education and Early Development.

Unlike many other states, Alaska has relatively flush budget coffers, thanks to a rise in oil and gas revenues. Funding for schools will remain fairly level next year, however. Overall per-pupil funding across the state will rise by $100, to $5,480, in fiscal 2009. ...

Carl Rose, the executive director of the Association of Alaska School Boards, praised the changes in funding for rural schools and students with special needs as a "historic event," and said the finance overhaul would bring more stability to district budgets.

According to Eddy Jeans at the Alaska Department of Education and Early Development, funding for special needs and intensive needs students has increased every year since Palin entered office, from a total of $203 million in 2006 to a projected $276 million in 2009.

Those who claim that Palin cut special needs funding by 62 percent are looking in the wrong place and misinterpreting what they find there. They point to an apparent drop in the Department of Education and Early Development budget for special schools. But the special schools budget, despite the similar name, isn't the special needs budget. "I don’t even consider the special schools component [part of] our special needs funding," Jeans told FactCheck.org. "The special needs funding is provided through our public school funding formula. The special schools is simply a budget component where we have funding set aside for special projects," such as the Alaska School for the Deaf and the Alaska Military Youth Academy. A different budget component, the Foundation Program, governs special needs programs in the public school system.

And in any case, the decrease in funding for special schools is illusory. Palin moved the Alaska Military Youth Academy's ChalleNGe program, a residential military school program that teaches job and life skills to students under 20, out of the budget line for "special schools" and into its own line. This resulted in an apparent drop of more than $5 million in the special schools budget with no actual decrease in funding for the programs.

Not a Book Burner

One false rumor accuses then-Mayor Palin of threatening to fire Wasilla’s librarian for refusing to ban books from the town library. Some versions of the rumor come complete with a list of the books that Palin allegedly attempted to ban. The story is false on several fronts: Palin never asked that books be banned; the librarian continued to serve in that position; no books were actually banned; and many of the books on the list that Palin supposedly wanted to censor weren't even in print at the time, proving that the list is a fabrication.

It’s true that Palin did raise the issue with Mary Ellen Emmons, Wasilla’s librarian, on at least two occasions. Emmons flatly stated her opposition both times. But, as the Mat-Su Valley Frontiersman (Wasilla’s local paper) reported at the time, Palin asked general questions about what Emmons would say if Palin requested that a book be banned. According to Emmons, Palin "was asking me how I would deal with her saying a book can't be in the library." Emmons reported that Palin pressed the issue, asking whether Emmons' position would change if residents were picketing the library. Wasilla resident Anne Kilkenny, who was at the meeting, corroborates Emmons' story, telling the Chicago Tribune that "Sarah said to Mary Ellen, 'What would your response be if I asked you to remove some books from the collection?' "

Palin characterized the exchange differently, initially volunteering the episode as an example of discussions with city employees about following her administration's agenda. Palin described her questions to Emmons as “rhetorical,” noting that her questions "were asked in the context of professionalism regarding the library policy that is in place in our city." Actually, true rhetorical questions have implied answers (e.g., “Who do you think you are?”), so Palin probably meant to describe her questions as hypothetical or theoretical. We can't read minds, so it is impossible for us to know whether or not Palin may actually have wanted to ban books from the library or whether she simply wanted to know how her new employees would respond to an instruction from their boss. It is worth noting that, in an update, the Frontiersman points out that no book was ever banned from the library’s shelves.

Moreover, although Palin fired Emmons as part of a "loyalty" purge, she rehired Emmons the next day, and Emmons remained at her job for two-and-a-half more years. Actually, Palin initially requested Emmons’ resignation in October 1996, four days before the public discussion of censorship. That was at the same time she requested that all four of Wasilla’s department heads resign. Palin described the requests as a loyalty test and allowed all four department heads to retain their positions. But on Jan. 30, 1997, three months after the censorship discussion, Palin informed Emmons and Wasilla’s police chief, Irv Stambaugh, that they would be fired. According to the Chicago Tribune, Palin did not list censorship as a reason for Emmons’ firing. Palin rehired Emmons the following day. Emmons continued to serve as librarian until August 1999, when the Chicago Tribune reports that she resigned.

So what about that list of books targeted for banning, which according to one widely e-mailed version was taken “from the official minutes of the Wasilla Library Board”? If it was, the library board should take up fortune telling. The list includes the first four Harry Potter books, none of which had been published at the time of the Palin-Emmons conversations. The first wasn't published until 1998. In fact, the list is a simple cut-and-paste job, snatched (complete with typos and the occasional incorrect title) from the Florida Institute of Technology library Web page, which presents the list as “Books banned at one time or another in the United States.”

Closet Secessionist?

Palin was never a member of the Alaskan Independence Party – which calls for a vote on whether Alaska should secede from the union or remain a state – despite mistaken reports to the contrary. But her husband was a member for years, and she attended at least one party convention, as mayor of the town in which it was held.

The party's chair originally told reporters that Palin had been a member, but the official later retracted that statement. Chairwoman Lynette Clark told the New York Times that false information had been given to her by another member of the party after she first told the Times and others that Palin joined the AIP in 1994. Clark issued an apology on the AIP Web site.

The director of Alaska’s Division of Elections, Gail Fenumiai, confirms that Palin registered to vote in the state for the first time in May 1982 as a Republican and hasn’t changed her party affiliation since. She also told FactCheck.org that Palin’s husband, Todd, was registered with AIP from October 1995 to July 2000, and again from September 2000 until July 2002. (He has since been registered as undeclared.) However, the AIP says Todd Palin "never participated in any party activities aside from attending a convention in Wasilla at one time."

There is still some dispute as to whether Sarah Palin also attended the AIP’s 1994 convention, held in Wasilla. Clark and another AIP official told ABC News’ Jake Tapper that both Palins were there. Palin was elected mayor of Wasilla two years later. The McCain campaign says Sarah Palin went to the 2000 AIP convention, also held in Wasilla, “as a courtesy since she was mayor.” As governor, Palin sent a video message to the 2008 convention, which is available on YouTube, and the AIP says she attended in 2006 when she was campaigning.

Didn't Endorse Pat Buchanan

Claims that Palin endorsed conservative Republican Pat Buchanan for president in the 2000 campaign are false. She worked for conservative Republican Steve Forbes.

The incorrect reports stem from an Associated Press story on July 17, 1999, that said Palin was "among those sporting Buchanan buttons" at a lunch for Buchanan attended by about 85 people, during a swing he took through Fairbanks and Wasilla. Buchanan didn't help matters when he told a reporter for the liberal publication The Nation on Aug. 29: "I'm pretty sure she's a Buchananite." But in fact, she wasn't.

Soon after The AP story appeared, Palin wrote in a letter to the editor of the Anchorage Daily News that she had merely worn a Buchanan button as a courtesy to her visitor and was not endorsing him. The letter, published July 26, 1999, said:

Palin, July 26, 1999: As mayor of Wasilla, I am proud to welcome all presidential candidates to our city. This is true regardless of their party, or the latest odds of their winning. When presidential candidates visit our community, I am always happy to meet them. I'll even put on their button when handed one as a polite gesture of respect.

Though no reporter interviewed me for the Associated Press article on the recent visit by a presidential candidate (Metro, July 17), the article may have left your readers with the perception that I am endorsing this candidate, as opposed to welcoming his visit to Wasilla. As mayor, I will welcome all the candidates in Wasilla.

Palin actually worked for Forbes. Less than a month after being spotted wearing the "courtesy" button for Buchanan, she was named to the state leadership committee of the Forbes effort. The Associated Press reported on Aug. 7, 1999:

The Associated Press, Aug. 7 1999: State Sen. Mike Miller of Fairbanks will head the Alaska campaign chairman for Republican presidential candidate Steve Forbes, campaign officials said. Joining the Fairbanks Republican on the leadership committee will be Wasilla Mayor Sarah Palin, and former state GOP chairman Pete Hallgren, who will serve as co-chairs.

Still, after nine years, the truth has yet to catch up completely.

No Creationism in Schools

On Aug. 29, the Boston Globe reported that Palin was open to teaching creationism in public schools. That's true. She supports teaching creationism alongside evolution, though she has not actively pursued such a policy as governor.

In an Oct. 25, 2006, debate, when asked about teaching alternatives to evolution, Palin replied:

Palin, Oct. 25, 2006: Teach both. You know, don't be afraid of information. Healthy debate is so important and it's so valuable in our schools. I am a proponent of teaching both. And you know, I say this too as the daughter of a science teacher. Growing up with being so privileged and blessed to be given a lot of information on, on both sides of the subject – creationism and evolution. It's been a healthy foundation for me. But don't be afraid of information and let kids debate both sides.

A couple of days later, Palin amended that statement in an interview with the Anchorage Daily News, saying:

Palin, Oct. 2006: I don't think there should be a prohibition against debate if it comes up in class. It doesn't have to be part of the curriculum.

After her election, Palin let the matter drop. The Associated Press reported Sept 3: "Palin's children attend public schools and Palin has made no push to have creationism taught in them. ... It reflects a hands-off attitude toward mixing government and religion by most Alaskans." The article was headlined, "Palin has not pushed creation science as governor." It was written by Dan Joling, who reports from Anchorage and has covered Alaska for 30 years.

That E-mail Author

Switching gears: Almost 100 readers have written to ask us if the many claims made about Palin in an e-mail written by someone named Anne Kilkenny are true. We can tell you that Kilkenny is a real person. (She was quoted by the Chicago Tribune, as we said above.) According to the New York Times, she’s a Democrat. According to Kilkenny herself, Palin “has hated me since back in 1996, when I was one of the 100 or so people who rallied to support the City Librarian against Sarah’s attempt at censorship."

We’re still analyzing Kilkenny’s claims, and we will be posting something on this soon.

—by Brooks Jackson, Jessica Henig, Emi Kolawole, Joe Miller and Lori Robertson
Sources
Sutton, Anne. "Governor signs revamped education package into law." Anchorage Daily News, 28 Mar. 2008.

Holland, Megan. "Intensive needs funding examined." Anchorage Daily News, 12 Jan. 2008.

Cavanagh, Sean. "Alaska Legislators Overhaul Funding." Education Week, 29 Apr. 2008.

Joling, Dan. "Palin has not pushed creation science as governor." The Associated Press, 3 Sept. 2008.

Hayes, Christopher. "Sarah Palin, Buchananite." The Nation "Capitolism" Web site, 29 Aug. 2008.

Palin, Sarah. "Letters from the People." Anchorage Daily News. 26 July 1999; 5B.

The Associated Press: "Forbes sets Alaska leadership team," 7 Aug 1999.

Kizzia, Tom. "'Creation science' enters the race." Anchorage Daily News, 27 Oct. 2006.

Paulson, Michael. "Sarah Palin on faith, life and creation." The Boston Globe, 29 Aug. 2008.

Tapper, Jake. “Another AIP Official Says Palin Was at 1994 Convention.” ABCNews.com, 2 Sept. 2008.

Tapper, Jake. “Members of ‘Fringe’ Alaskan Independence Party Incorrectly Say Palin Was a Member in 90s.” ABCNews.Com, 1Sept. 2008.

Komarnitsky, S.J. "Wasilla Keeps Librarian, But Police Chief Is Out." 1 February 1997. The Anchorage Daily News, 8 Sept. 2008.

Stuart, Paul. "FROM THE ARCHIVE: Palin: Library Censorship Inquiries 'Rhetorical'." 18 December 1996. Mat-Su Valley Frontiersman, 8 Sept. 2008.

White, Rindi. "Palin Asked City Librarian Whether She'd Ban Books." 7 September 2008. The Chicago Tribune, 8 Sept. 2008.