And The Band Plays On

I learned last evening that Joe, a friend of nearly three decades, finally succumbed to AIDS after waging a valiant battle against the disease for over two decades.

I hadn't been aware that his health was in decline, having not spoken to him since July, but from what I gather, even those closest to him were kept unaware of the seriousness of his deteriorating condition, not at all surprising given Joe's penchant for privacy and stoicism in the face of tragedy.

His sudden death has profoundly impacted me - much more so than I'd have imagined. We haven't been particularly close these past few years, largely because of a geographic separation. After his loss of his life-partner a dozen years ago, he returned to his home state, finding his adopted city of New York oppressive, laden with cursed memories of joy lost.

I don't believe he found returning home to be all that comforting, yet it was recognizable, largely unchanged from his boyhood. He knew what to expect, and found some solace in the predictability of the community - a normalcy, a consistency with which he had learned to cope.

And make no mistake - coping in New York is a challenge in the best of circumstances. For many gay men who flocked to the city during the 1970s and 1980s AIDS made the city unbearable. There really is no way to adjust to the loss of so many friends and associates.

I can recall during the late 1980s and early 1990s attending at least one memorial service per week, a litany of depressing endings so persistent and encompassing that it became dehumanizing. Gratefully, the pace of death over the past decade has slowed considerably due to improved treatment. It's been over a year since the last time I learned of the death of a friend due to AIDS, a respite that has lulled me into a sense of complacency about the seriousness of the epidemic.

Yet, in recent months I've read extensively of a resurgence of infections in the gay community, which some attribute to a sense that the disease is no longer a death sentence, but rather, a treatable illness not unlike diabetes. Joe's passing is a potent reminder of the foolishness of such assumptions, and how important it is that we continue to educate young people about the dangers of the disease and its ultimately lethal consequences.

It's at moments such as these that I wish I possessed the eloquence to offer some profound insight, or at least a modicum of inspiration. Sadly, the talent eludes me, but I welcome contributions from others and offer a reminder:

How did a few failed banks add up to a financial meltdown?

Nobel Prize winning economist and New York Times columnist Paul Krugman explains how a few failed banks caused an historic financial meltdown at a Zocalo Public Square lecture.

Barbara Walter's Interview of Barack Obama

What's So Funny About Peace, Love and Understanding?

Can The Financial Markets Be Saved?

Saving the financial markets has been at the top of the agenda of the Bush administration for the past couple of months, with literally trillions of dollars in taxpayer guarantees being used to support beleaguered Wall Street. But for millions of Americans, the real problem is the plunge in the value of their homes, which represent their largest asset and have been used to supplement their incomes during years of declining wages.

The crisis facing homeowners is real, and according to McClatchy News:

Housing Is Bad Enough, But Wait - It'll Get Worse

By Kevin G. Hall

WASHINGTON — If you think the housing slump can't get much worse, Martin Feldstein thinks that both home prices and the broader economy can — and very likely will — get a whole lot worse.

The Harvard University professor and former chief economic adviser to Ronald Reagan isn't part of the crowd that continually forecasts doom. For two decades, he's headed the National Bureau of Economic Research, which officially determines when U.S. recessions begin and end.

So when he spoke on Monday night at the annual dinner of the National Economists Club, a gathering of like-minded wonks, Feldstein's grim calculations were noteworthy.

"There are now 12 million homes in the United States with a loan-to-value ratio greater than 100 percent. That's one mortgage in four. The aggregate amount of that is some $2 trillion," said Feldstein. "If you look at the median (midpoint) loan-to-value ratio in that 12 million group of underwater mortgages — mortgages with negative equity — the median loan-to-value ratio is 120 percent." ...continue reading

Inside the Transition: Melody Barnes

An introduction to Melody Barnes, President-elect Obama's Director-designate of the Domestic Policy Council:

Obama and Bush Working to Calm Volatile Market

From the New York Times:

Obama and Bush Working to Calm Volatile Market

CHICAGO — President-elect Barack Obama sought to seize the reins of the economic crisis Monday as he and his new economic team worked closely with President Bush to inject confidence into the trembling financial markets, which rallied and erased most of last week’s losses.

The coordination between Mr. Obama and Mr. Bush was taking place among aides, as well as in direct talks about the rescue plan for Citigroup and unresolved details of the overall Treasury bailout plan. The president said his successor would be informed of every “big decision” that was made, adding, “It’s important for the American people to know that there is close cooperation.”

To calm anxious markets, the Federal Reserve and the Treasury plan to announce a major lending program on Tuesday to jump-start frozen loan markets, administration officials said. The Treasury had signaled earlier this month that it was considering such an action for consumer loans, but the action to be announced will broaden the program to include business debt. ....continue reading

Proposition 8 Exposing Dissent Within Mormon Church

Not all Mormons are opposed to same-gender marriages, nor all they all homophobic. As this article in the Boston Globe illuminates, there is considerable dissent within the church over its public support for Proposition 8, which changed California's Constitution in order to prohibit same-gender marriages.

Gay-Marriage Debate Roils, Unites Mormons

This has been a stormy year for Mormons in the United States. First, there was the candidacy of Mitt Romney for president, which brought to the surface a deep strain of anti-Mormonism in American culture. Then, there was the raid on a group of schismatic polygamists in Texas, which reminded America of Mormonism's uncomfortable history. And now, there is a wave of protest, rolling across the country from west to east, in which some gay rights advocates have targeted Mormons because of their church's support for a successful California referendum to overturn same-sex marriage.

Ironically, the protests appear to be helping repair a rift within Mormonism caused by the election. The church's outspoken support for Proposition 8 exposed an unusual level of disagreement in the ordinarily harmonious Church of Jesus Christ of Latter-day Saints, as the Internet facilitated grass-roots organizing by the minority of Mormons who support same-sex marriage. But a smattering of anti-Mormon acts since Election Day - the burning of a Book of Mormon, a mailing of packets of white powder to Mormon sites, and some anti-Mormon invective expressed on signs and in sloganeering - has helped rally a denomination with a long history of persecution.

...continue reading

One group of Mormons, "Hotter Than Saints", while not openly taking a position on Proposition 8, has nevertheless earned the reprobation of church leaders for its homo-erotic calendar, "Men On A Mission", which features 12 shirtless young men offered as "12 Reasons To Believe In God". A video promoting the calendar is below.

The Mother Of All Bailouts!

Federal regulators have agreed to bailout Citigroup, one of the world's largest banking companies by infusing it with $20 billion in new capital and assuming the liability for $300 billion in risky loans, largely extended in the form of residential and commercial mortgages.

From the New York Times:

U.S. Approves Plan To Help Citigroup Weather Losses

By ERIC DASH

Federal regulators approved a radical plan to stabilize Citigroup in an arrangement in which the government could soak up billions of dollars in losses at the struggling bank, the government announced late Sunday night.

The complex plan calls for the government to back about $306 billion in loans and securities and directly invest about $20 billion in the company. The plan, emerging after a harrowing week in the financial markets, is the government’s third effort in three months to contain the deepening economic crisis and may set the precedent for other multibillion-dollar financial rescues.

Citigroup executives presented a plan to federal officials on Friday evening after a weeklong plunge in the company’s share price threatened to engulf other big banks. In tense, round-the-clock negotiations that stretched until almost midnight on Sunday, it became clear that the crisis of confidence had to be defused now or the financial markets could plunge further.

Whether this latest rescue plan will help calm the markets is uncertain, given the stress in the financial system caused by losses at Citigroup and other banks. Each previous government effort initially seemed to reassure investors, leading to optimism that the banking system had steadied. But those hopes faded as the economic outlook worsened, raising worries that more bank loans were turning sour. ...continue reading

Details of the plan can be found here.

Should Detroit Automakers Be Allowed To Fail?

There are many arguments in favor of allowing Detroit's "Big Three" automakers to fail, forcing them either into Chapter 11 (reorganiation) or Chapter 7 (liquidation) bankruptcy. No one can deny that GM, Ford and Chrysler have been environmentally irresponsible, promoting gas guzzling SUVs instead of investing in new, fuel efficient technologies so desired in today's market place driven by high gasoline prices.

Yet Detroit cannot be blamed for feeding America's fuel gluttony, anymore than McDonald's or Burger King can be held totally accountable for Americans' insatiable appetite for ever larger portions of unhealthy food. An American truism is that "bigger is better", whether it be cars, meals, homes, television screens, or the size of the local supermarket.

Nor can the United Auto Workers be held entirely to blame for the automakers' current financial straits. While it's true that union employee health benefits add an estimated $1,700 to the cost of each vehicle manufactured by the "Big Three", that's a cost imposed by our society's refusal to provide government funded, universal health care, a benefit enjoyed by workers in most other industrialized countries. Relieved of the cost of health care benefits, Detroits' automakers would earn roughly $900 per vehicle manufactured, as opposed to its current per vehicle loss of $800.

Former U.S. Senator and Secretary of Energy Spencer Abraham makes a good case for saving Detroit in a column in today's New York Times:

For Detroit, Chapter 11 Would Be The Final Chapter

MANY commentators and members of Congress have declared that the best hope for the Big Three auto companies is to declare bankruptcy. Airlines have gone through bankruptcy and adjusted, after all, so why can’t carmakers?

This comparison is appealing, but flawed. Almost every carmaker that has ever gone bankrupt has disappeared for good. And there is no reason to believe the Big Three would not do the same. Chapter 11 filing would almost surely lead to liquidation.

Just as financial institutions depend on the confidence of those with whom they do business (as Bear Stearns and Lehman Brothers discovered), automakers depend on the confidence of car buyers. To purchase a car is to make a multiyear commitment: the buyer must have confidence that the manufacturer will survive to provide parts and service under warranty. With a declaration of bankruptcy, that confidence evaporates. Eighty percent of consumers would not even consider buying a car or truck from a bankrupt manufacturer, one recent survey indicates. So once a bankruptcy proceeding got started, the company’s revenue would plummet, leading it to hemorrhage cash to cover its high fixed costs. ...continue reading

Detroit makes its own case in the following video:

Wal-Mart proves its patriotism

From the Boston Globe, via Arnie Arnesen, comes this incredibly reassuring story:

BENTONVILLE, Ark. - Wal-Mart Stores Inc. has signed on to an Army Reserve program in which the company and the Army will work together to recruit and train people interested in serving in the military and working for the giant retailer. continue reading



This presents so many opportunities! With its vaunted purchasing power, Wal-Mart could save the Department of Defense billions by equipping and arming those reservists. Wal-Mart could contract with Chinese and Indian manufacturers for uniforms, weapons, ordinance, field equipment, and even GPS units and computers and other electronic devices which could then be dispensed to troops as they're called to duty. The cost savings would be phenomenal, not just because the goods would carry a much lower price than what the DOD normally pays through its "competitive" bidding process, but also because thousands of acres of storage facilities could be eliminated and the military would be on a more competitive, "JIT - Just In Time" procurement track.

Not only that, but Wal-Mart could serve as the nation's military recruitment centers, administering tests, physicals, and background checks to ensure that no one of questionable moral or political character somehow found their way into the ranks of the military or in the aisles of their stores. It would reinforce America's confidence in Wal-Mart's commitment to "America".

Imagine, too, how safe Americans will feel shopping in Wal-Mart when its employees are all heavily armed and properly vetted, and know how to respond in case of a Chemical, Biological or Radiological Attack! Terrorists wouldn't dare venture anywhere near a Wal-Mart store, assuring Americans that they can fulfill their patriotic duty to shop.

So many possibilities, so little time to consider them all. I really must put my "snark" device on overdrive.

The Socialists Are Coming -- And They Are Us

WARNING! WARNING! THE SOCIALISTS ARE COMING! BARACK OBAMA WANTS TO SPREAD THE WEALTH!

Of all the scare tactics employed in this election season, this latest gambit by the McCain-Palin ticket is among the most ludicrous, and would be amusing if it were not for the seriousness with which some people are fearing Armageddon.

Come on, people. Sharing the wealth has always been an American tradition. Sometimes it’s achieved through the largesse of individuals. On other occasions religious and charitable organizations undertake the task of distributing generous donations collected from individuals and businesses. And frequently, we rely upon government to assist us in spreading around the wealth.

Nor is our socialization limited to sharing the wealth. We’re also a nation given to sharing risk and to collectively carrying the burden of catastrophe or disaster. That’s a major part of what defines us as a civilization.

In a little over a month our community will unite behind one of the most incredible annual acts of generosity in which each of us takes pride - the Annual WLNH Children’s Auction. Literally hundreds of local residents volunteer their time, energy and money to this charitable endeavor, and hundreds more anxiously await the opportunity to bid on items they don’t necessarily want or need, frequently donating them back for resale, or providing them for use by other charitable organizations and groups.

This year each of us will be asked once again to pay a share of our income to support the County Nursing home, committed to ensuring our elderly a safe, secure and healthy life no matter their economic or familial circumstances. I’ve not met anyone who believes we should turn these people out on the streets to fend for themselves.

Each month thousands of seniors in the Lakes Region rely upon a check arriving in the mail from Social Security. Get the name? Social Security? It’s socialism, my friends. We’re all asked to contribute a portion of our income to ascertain that seniors and the disabled are not abandoned to poverty. All of us contribute during our working years to support those generations that came before us, and we expect that ensuing generations will continue that tradition.

And what is Medicare but socialized medicine? Again, we all contribute to the pot because we don’t believe being old should mean being denied health care services that are beyond one’s ability to pay.

Let’s look at insurance. All insurance. The purpose of insurance is to share the risk and the costs. It’s a socialization of risk. I’ve driven an automobile for over forty years, dutifully paying my insurance premiums which have amounted to tens of thousands of dollars. Yet the only claim I’ve ever filed cost the carrier $450 and that was in 1970. Nevertheless, I still regard insurance as an important expenditure.

Rarely does a day pass when I don’t traverse at least a segment of our streets and roadways, crossing bridges, passing beneath viaducts, all on a complex network built by shared contributions.

When I awaken in the morning the first thing I do is flip on the kitchen light and brew a pot of coffee, trusting that electricity will flow into my home unless some dastardly storm or errant vehicle has somehow interrupted the transmission system. Like you, I share in the cost of supporting the nation’s electrical grid, aware that it’s highly unlikely that I’d be able to generate my individual energy needs without incurring monumental expenses.

Within minutes of pouring my first cup of coffee I’m greeted by the outdoor sounds of children heading off to school, another collective cost that we share. Yes, our schools are expensive, consuming a large slice of our local tax dollars, yet few of us fail to recognize that public education is a necessary and valuable investment, providing lifetime rewards.

Over the past five years New Hampshire has sacrificed 23 lives in Iraq and another five in Afghanistan. Laconia residents have contributed in excess of $30 million to the costs of the wars. It’s a collective burden, borne most heavily by those families who’ve lost loved ones, yet apportioned to all of us.

Barack Obama has come to the conclusion that too much of the shared burden has fallen upon the middle class, and that for eight years the Bush administration has shifted much of the onus onto future generations, compiling nearly $5 trillion in debt that will be a millstone around the necks of our children and grandchildren. That kind of irresponsibility must stop.

We face serious and expensive problems, from two wars to crumbling infrastructure, and from energy dependence to a financial meltdown. Fixing these problems is going to be costly and necessary. And it can’t be done by bankrupting the middle class.

So yes, the wealthiest among us are going to have to pay a bit more. That’s the American way. We’re all in this together, sharing the same ship of state. It’s time to set aside the petty bickering and senseless name calling and recognize that each of us has a responsibility for our nation’s future. And if John McCain is so opposed to sharing burdens perhaps he should give up his government funded health insurance and disability pension. After all, he and his wife are worth an estimated $150 million.