$5.15 An Hour

That would be the current Federal minimum wage. USAToday (05.31.05), via NextHurrah:

“More states are raising their minimum wages, pushing hourly rates above $7 in some and shrinking the role of the federal minimum wage, which hasn’t gone up in eight years.

In all, 17 states and the District of Columbia — covering 45% of the U.S. population — have set minimums above the federal rate of $5.15. That has helped cut the number of workers earning the minimum or less (for those earning tips) from 4.8 million in 1997 to 2 million last year, or 2.7% of hourly earners, the Bureau of Labor Statistics says.”

States say $5.15 an hour too little

“About half of minimum-wage earners work at restaurants.”

Ungrateful bastards!! Why they must make hundreds of dollars in tips, plus because it’s cash they probably report nothing to the IRS.

Hell, $5.15 an hour, 40 hours a week, why that’s over $10,000 a year. You telling me someone can’t live on that?

Cupboard Getting Bare

A dearth of intellectual curiousity coupled with an inability to distinguish competency from sycophancy. Doesn’t bode well. Washington Post (05.31.05):

“Two days after winning reelection last fall, President Bush declared that he had earned plenty of ‘political capital, and now I intend to spend it.’ Six months later, according to Republicans and Democrats alike, his bank account has been significantly drained.

With his approval ratings in public opinion polls at the lowest level of his presidency, Bush has been stymied so far in his campaign to restructure Social Security. On the international front, violence has surged again in Iraq in recent weeks, dispelling much of the optimism generated by the purple-stained-finger elections back in January, while allies such as Egypt and Uzbekistan have complicated his campaign to spread democracy.”

Bush’s Political Capital Spent, Voices in Both Parties Suggest

Not to mention the stem cell research bill in the House, the blocked confirmation of Bolton in the Senate, the Senate fight over his judicial nominees, the Senate transportation bill, the energy bill, the State backlash against NoChildLeftBehind. Not mention the extremely tepid economic boom.

“‘There is a growing sense of frustration with the president and the White House, quite frankly,” said an influential Republican member of Congress. ‘The term I hear most often is ‘tin ear,” especially when it comes to pushing Social Security so aggressively at a time when the public is worried more about jobs and gasoline prices. ‘We could not have a worse message at a worse time.'”

And there’s more out there waiting to bite him in the ass. Among other things, there’s the abuse at Guantanamo and the housing bubble.

Last but not least, 2006 will be here before you know it.

Ha, Ha Ha; Ho, Ho, Ho

And a couple of la-dee-dahs; that’s how we laugh the day away! LATimes (05.31.05), via Washington Monthly:

“CEOs at California’s largest 100 public companies took home a collective $1.1 billion in 2004, up almost 20% from 2003. That compares with the 2.9% raise that the average California worker saw last year, according to the Economic Policy Institute in Washington.

The difference is even sharper at the top rungs of the ladder. The 10 highest-paid executives on this year’s list earned 36.7% more than last year’s top 10 — garnering a collective $467.5 million. That’s enough to buy about 275 homes in Malibu or 1.5 million sets of golf clubs or two 747 jumbo jets.

Gulf Between Top, Bottom Gets Wider

“‘The average CEO made 42 times the average worker’s pay in 1980. That increased to 85 times in 1990 and is now over 300 times,’ said Brandon Rees, a research analyst with the AFL-CIO’s office of investment, a group that tracks, and is critical of, executive pay policies. ‘That is clearly not a sustainable rate of growth.'”

“Compensation consultants counter that high salaries are driven by competition for the best bosses.” Yeah like the guys at GM, United, Tyco, Delta, Adelphia, Ford, AIG, Exxon, Priceline, blah, blah, blah.

“Everywhere there’s lots of piggies,
Living piggy lives.
You can see them out for dinner,
With their piggy wives.
Clutching forks and knives to eat their bacon.”

Ups And Downs

This would be in manufacturing growth. It’s down in New York and Philly too. Bloomberg (05.31.05):

“An index of Chicago-area business fell in May to the lowest level in almost two years, a survey of executives in the region found, suggesting the pace of growth is slowing more than expected.

The decline comes after reports from New York and Philadelphia showing growth in those regions was slower than forecast. Lower factory demand supports forecasts that this year’s economic growth will trail that of 2004, when the economy expanded at the fastest rate in five years.”

U.S. Chicago Purchasers Index Fell to 54.1 in May

” Other reports support views that manufacturing growth is slowing. On May 19, the Philadelphia Federal Reserve Bank said its gauge of manufacturing in the region fell to 7.3 from 25.3, the biggest monthly drop since January 2001. The New York Fed said May 16 its index of manufacturing in New York state plummeted this month to 11.1, the lowest level since April 2003.”

“The Manufacturers Alliance/MAPI on May 19 trimmed its industrial growth forecast for this year to 3.4 percent from the 3.5 percent the group projected in February. Growth next year will be 3.3 percent, down from an earlier estimate of 3.6 percent, the group said.”

Reuters (05.31.05):

“U.S. consumer confidence rose in May with concerns about jobs and the economy easing, a report said on Tuesday.

The increase in confidence came as consumers felt less anxiety about the labor market and the economy, with belief in economic growth ahead, the Board said.”

Consumers feel more upbeat in May, report says

The numbers: the ubiquitous analysts were looking for a reading of 96.5; it came in at 102.2.

On the other hand, folks “saying jobs were ‘hard to get’ went from 22.9 to 24.2%.

Reuters gives us some background. “Consumer spending is the backbone of the U.S. economy, accounting for two-thirds of activity, and an increase in confidence is seen as a possible precursor to stronger growth.”

“In recent years, however, the correlation between confidence and retail sales has weakened, with consumers buying cars and homes even as they tell surveys things are getting worse.”

Who’d Have Guessed?

We never thought this would happen. NYTimes (05.31.05):

“When the drug industry came under fire last summer for failing to disclose poor results from studies of antidepressants, major drug makers promised to provide more information about their research on new medicines. But nearly a year later, crucial facts about many clinical trials remain hidden, scientists independent of the companies say.”

Despite Vow, Drug Makers Still Withhold Data

Some background here.

Sometimes Bad Things Happen

So if there isn’t a problem, what’s the problem? Knight-Ridder (05.27.05):

“Secretary of State Condoleezza Rice brushed off growing calls for an independent investigation of conditions at the Guantanamo Bay detention center and in an interview labeled as ‘absurd’ a new Amnesty International report equating the facility with Soviet-era gulags.

Asked in an interview with Knight Ridder about an outside probe, Rice responded that it isn’t necessary.”

Independent investigation of detainee abuse unnecessary, Rice says

In a nonresponsive, nonsensical and somewhat bizarre statement, Ms. Rice said: “‘The United States is as open a society as you will find,’ she said, and the administration is being held accountable ‘by a free press, by a Congress that is a separate and co-equal branch of government, and by its own expectations of what is right.'”

She continued: “‘The United States of America is one of the strongest defenders of human rights around the world. We’ve fought hard and worked hard even in the circumstances of a new kind of war (on terrorism) to treat people humanely,’ Rice said.”

“The secretary of state, while acknowledging that ‘sometimes bad things happen,’ argued that the charges of Quran abuse and other violations should be put in context.”

This administration going to hold itself accountable by its own expectations of what is right? Heaven help us.

The Independent (05.31.05):

“Confidential papers detailing tribunal hearings held at Guantanamo Bay have revealed a further raft of allegations of US mistreatment of detainees held at the detention camp.

The transcripts of tribunal hearings were released by the US Department of Defence after an application under the US Freedom of Information Act by the American news agency Associated Press.”

Claims of abuse at Guantanamo are revealed

Yep. We’re a society so open the AP had to use the Freedon Of Information Act to obtain the transcripts.

Going Bust In Boston?

Boston Globe (05.31.05):

“To afford Greater Boston’s soaring home prices, one in four homebuyers last year took out a risky, interest-only mortgage that offers lower monthly payments in the initial years of the loan but raises payments sharply in later years.

In 2002, just 5 percent of new mortgages in the Boston area were interest-only, according to LoanPerformance, a San Francisco firm that tracks the housing market.”

Mortgage trend poses risks in downturn

“Housing specialists say the growing dependence on these loans could spell trouble for the housing market if interest rates rise and house prices stagnate or fall, and large numbers of homeowners are unable to pay their mortgage bills. If they can’t and decide to sell, a glut in the market would send prices spiraling downward.”

”’If the only way that new buyers or people trading up can afford to do so is by taking out interest-only loans, they’ve hit the ceiling in terms of affordability,’ said David Stiff, an economist for Fiserv CSW Inc. in Boston, a real estate research firm. Tough times, he said, ‘will dry up [housing] demand very quickly, because people are already tapped out.'”

For example, given a $350,000 purchase, your monthly payments would be about $1,800 with a 30-year fixed. With an interest-only, your monthly payments would be about $1,350. At least for a while. Then you’ll have to figure out where you’re gonna come up with the difference.

“LoanPerformance, a unit of First American Corp., said about 85 percent of interest-only loans are refinanced within four years. ‘That could change if interest rates go up,’ said Bob Visini, vice president.”

Nope. That will change when interest rates do go up.

Dunno about where you live, but around these parts (Minneapolis/Saint Paul), homes are moving, but very, very slowly. This has become a significant topic of conversation among realtors.

Right Where We Want ‘Em.

But it ain’t looking too good. Washington Post (05.30.05):

“President Bush’s congressional allies on Social Security are limping into the week-long Memorial Day recess, battered by public opinion polls yet hopeful that a rising awareness of Social Security’s long-run financing problems will propel a legislative solution.

But with just 49 legislative days left before Congress’s planned adjournment, the odds are still against Bush securing the centerpiece of his domestic agenda, Republican lawmakers concede.”

GOP Lawmakers Acknowledge Uphill Fight on Social Security

“‘I don’t know if we can get it done this year,’ said Rep. E. Clay Shaw Jr. (R – FL22), a member of the Ways and Means Committee. ‘I don’t think you could get a third of the Congress to vote for any one plan at this point.'”

“‘They’ve made slight progress,’ said Rep. Michael N. Castle (R – DE), a moderate, ‘maybe ‘slight’ being the key word.'”

Meaing forget it.

Ever the optimist, “White House spokesman Trent Duffy said Washington is exactly where Bush strategists thought it would be right now on Social Security, with a rising awareness of the system’s problems and Congress entering a summertime legislative push.”

Trent must be smoking crack.

“Duffy pointed to poll numbers showing an increasing percentage of the population identifying Social Security’s finances as a growing problem. But those same polls show the public strongly against Bush’s proposals and highly critical of his handling of the issue. If anything, public opposition appears to be hardening.”

A Bane Amid The Housing Boom: Rising Foreclosures

Washington Post (05.30.05):

“Foreclosure rates rose in 47 states in March, according to Foreclosure.com, an online foreclosure listing service. The rates in Florida, Texas and Colorado are more than twice the national average. Even in New York City and Boston, where real estate markets are white-hot, foreclosures are rising in working-class neighborhoods.

Should the nation’s housing bubbles deflate, as many economists and federal officials expect, the foreclosures could prefigure a national crisis. Americans now shoulder record levels of housing debt — more than 8 percent of homeowners spend at least half their income on their mortgage.”

A Bane Amid The Housing Boom: Rising Foreclosures

Half of the net income going to the mortgage? That is insane.

“State and federal regulators place much of the blame for the foreclosure problem at the feet of mortgage brokers and bankers, who have crafted ever-riskier ways for Americans with poor credit to buy homes. Interest-only and adjustable-rate mortgages account for 63 percent of new mortgages.”

And guess what? The Fed isn’t done raising interest rates!!

Locking It Up With The Pentagon

Damned those lawyers and their Constitution. NYTimes (05.30.05):

“In the last few months, the small commercial air service to the naval base at Guantánamo Bay, Cuba, has been carrying people the military authorities had hoped would never be allowed there: American lawyers.

And they have been arriving in increasing numbers, providing more than a third of about 530 remaining detainees with representation in federal court. Despite considerable obstacles and expenses, other lawyers are lining up to challenge the government’s detention of people the military has called enemy combatants and possible terrorists.”

In Rising Numbers, Lawyers Head for Guantánamo Bay

“The increase in lawyers for Guantánamo detainees was set in motion last June when the Supreme Court ruled against the Bush administration and said the prisoners there were entitled to challenge their detentions in federal courts.”

Some of the folks heading down are from the biggest powerhouse firms in the country: Wilmer, Cutler, Pickering, Hale & Dorr; Clifford Chance; Covington & Burling; Dorsey & Whitney; and Allen & Overy.

“‘People are now eager to take this on,’ (Michael Ratner, president of the Center for Constitutional Rights) said. The law firms are bearing all the expenses, he said.”

And when someone started watching, what happened? “The influx of defense lawyers at Guantánamo Bay also seems to have had some impact on the character of the detention facility. Some of the lawyers say that it was likely a factor in the authorities’ decision to end most of the interrogations in recent months. In addition, some lawyers and human rights officials say that the lawyers’ presence has reduced reports of abusive treatment by guards and interrogators that previously were the subject of complaints from the Red Cross and the F.B.I.”

Huh. Imagine that.

Relying On China

Because there’s nothing we can do about it. AP (05.29.05):

“Vice President Dick Cheney said the United States is relying on China to persuade North Korea to end its nuclear weapons program, despite Beijing’s reluctance to exert pressure on its neighbor.”

Cheney Says U.S. Relying on China to Pressure North Korea to End Nuclear Ambitions

“‘The Chinese need to understand that it’s incumbent upon them to be major players here,’ Cheney said in a taped interview with CNN’s ‘Larry King Live’ scheduled to air Monday night.”

“Talks involving China, the United States, Russia, Japan and South Korea have been sidelined for nearly a year, even as North Korea says it is building atomic bombs.”

We’re not exactly sure why the talks have been sidelined for this long, but we get the feeling this may have something to do with it. Bangor Daily News (05.09.05):

“President Bush’s latest contribution to the crisis over North Korea’s nuclear weapons program was to call its leader, Kim Jung Il, ‘a tyrant’ and ‘a dangerous person.’ North Korea’s Foreign Ministry fired back, calling Mr. Bush ‘a half-baked man in term of morality and a philistine whom we can never deal with.’ It also called him a ‘hooligan.’”

Nukes and Name-Calling

There was talk about calling each other “poopy snot butts”, and letting it go at that, but cooler heads prevailed. Whose, we don’t know.

Hearts And Minds

How not to win them. LATimes (05.29.05):

“A year after the Abu Ghraib abuse scandal erupted, Iraqi anger has flared anew over the growing numbers of detainees held without charge at the notorious detention center and another prison in the south.

In the battle against the insurgency, U.S. military sweeps net many guerrillas, but also thousands of people whose offenses are nonexistent, minor or impossible to prove. They are often held for months, only to be released without explanation.”

Long Jailings Anger Iraqis

“The population of long-term detainees at Abu Ghraib and the larger Camp Bucca, near Basra, has nearly doubled since August and now tops 10,000. With a large operation by Iraqi security forces underway in Baghdad, that number could rise.”

“Records provided by the military…show that the evidence against suspects justifies prolonged detention in only about one in four cases. Nonetheless, more than half are held three months or more before being freed.”

Kafka, “The Trial“: “The Court wants nothing from you. It receives you when you come and it dismisses you when you go.”

IMF Getting A Bit Squiffy About US Current Account Deficit

They don’t think much of Bush’s Social Security privitization scheme either. Reuters (05.27.05):

“The steadily widening U.S. current account deficit poses a significant risk to the global economy and bolder action is needed to cut the shortfall, an International Monetary Fund staff assessment of the U.S. economy said on Friday.

IMF economists also warned that President Bush’s plan to let workers divert money into personal savings accounts as part of a proposal to overhaul the Society Security retirement program could push the deficits higher if enacted.”

IMF staff urges bolder action on deficits

“The IMF cautioned that if investors’ appetite shifted from U.S. assets, it could have adverse effects on interest rates and global capital markets.”

“They said tax reform should be part of the U.S. effort to lower the deficits and backed legislated rules to enforce budget discipline.”

Yeah. Sure. Might not want to be holding your breath on that.

Just The Beginning

Reuters (05.28.05):

“U.S. officials said Friday they approved a plan by three states to pool together and negotiate lower prices for prescription medicines under their Medicaid insurance programs for the poor.

The three states that will participate are Louisiana, Maryland and West Virginia, the Department of Health and Human Services said in a statement.”

U.S. OKs 3-state plan to lower Medicaid drug prices

According to the HHS press release, this is the second pooling plan. The first was approved back in April 2004, and “included five states: Michigan, Vermont, New Hampshire, Alaska and Nevada. Since its approval, Hawaii, Minnesota, and Montana have joined that original pool.”

Sounds like it’s none too soon. Knight-Ridder (05.27.05):

“As many as 2.4 million low-income people will miss out on generous savings when the Medicare prescription-drug benefit begins next year because they have too many personal assets.

Even though their incomes are low enough to qualify for coverage that pays 85 to 98 percent of their drug costs, millions of retirees won’t get the benefit because the size of their bank and retirement accounts and other assets makes them ineligible for it.”

“Assets will bar many low-income elderly from getting drug benefit

It’s not like they’re rolling in the dough. “A disproportionate share are older, widowed women with modest incomes who live alone, according to a study by the Kaiser Family Foundation. Nearly 60 percent of these women, and others who live alone, have life savings of no more than $51,500, the study found. For married couples, the figure is $63,000.”

Geez. If it ain’t the orphans, it’s the widows. David Rice, a UCLA researcher who co-authored the Kaiser study, observes, “That’s not a lot of money for retirement savings.”

I Spy

Notice the Administration apparently waited until late Friday, and a Friday before a three-day weekend to boot, before filing? Friday is also the best day to serve a party with a Summons, especially before a three-day weekend. That way, they have three whole days to stew over it. AP (05.27.05):

“The Bush administration asked a federal appeals court Friday to restore its ability to compel Internet service providers to turn over information about their customers or subscribers as part of its fight against terrorism.

U.S. District Judge Victor Marrero of New York last year blocked the government from conducting secret searches of communications records, saying the law that authorized them wrongly barred legal challenges and imposed a gag order on affected businesses.”

Administration Asks Appeals Court to Overturn Limits on Secret Records Searches

All the AP article says is that this is a “legal filing with the 2nd Circuit U.S. Court”. It doesn’t mention if this is a notice of appeal or what. Nice that there is an article about this; too bad it’s not as clear and concise as it should be.

You can bet the ACLU (those commie ratdogs) will have more to say about this. Thank god.