What Caught My Eye Today

Economy - Where to begin? The doom and gloom is coming in from all over the place. How about the stock market first? Wall Street extended its 2008 plunge after a regional Federal Reserve report showed a sharp decline in manufacturing activity and as investors feared that downgrades of key bond insurers could trigger further trouble with souring debt. Stocks opened higher but quickly gave up their gains after the Philadelphia Federal Reserve said its survey of regional manufacturing activity registered a negative 20.9 from a revised reading of negative 1.6 in December. The Dow Jones industrial average lost more than 300 points, or nearly 2.5 percent, the Standard & Poor's 500, fell nearly 3 percent and the NASDAQ fell 47.69, or 1.99 percent. For those of you who just can't look away from a train wreck as it is happening, the Dow is down 8.33% for the year, the S&P 500 is off 9.2% and the NASDAQ--first among losers--has lost 11.51%.

Meanwhile, government officials are gathering to figure out how to jump start the economy...Lucky, us. President Bush told congressional leaders he favors personal income tax rebates and tax breaks for businesses to help avert a recession. Bush did not push for a permanent extension of his 2001 and 2003 tax cuts, many of which are due to expire in 2010. That would eliminate a potential stumbling block to swift action by Congress, since most Democrats oppose making the tax cuts permanent. Federal Reserve Chairman Ben Bernanke voiced support for a stimulus package in an appearance before the House Budget Committee, but said it had to be quick and temporary.

Guess what? Yeah, that's right, I got an off-the-record conversation between Bush and Bernanke on how to fix the economy...

Bush: Alright, Ben. The economy is in trouble and needs our help. I'm an idea man. Gimme some good ideas. The economy is your deal,right? Gimme some good ideas.
Bernanke: Of course Mr. President. Putting money into the hands of households and firms that would spend it in the near term, but it has to be quick and temporary.
Bush: Good, good. So what do you have in mind?
Bernanke: Such a plan should be aimed at quickly getting cash into the hands of people, especially those with low and moderate incomes, preferably one that would act quickly, and not have a long-term adverse impact on the deficit. The design and implementation of the fiscal program are critically important.
Bush: No kidding, Sherlock. So what should the plan be?
Bernanke: Getting money to people quickly is good, and getting money to low and moderate-income people is good, in the sense of getting bang for buck because they tend to spend it quickly. Temporary expensing and depreciation provisions for businesses also could spur spending, which would help the economy. Congress might want to consider a diversified mix of elements.
Bush: Specifics, Ben. Gimme some specifics.
Bernanke: I think I've said all that I can on this subject. The rest is up to you and Congress.
Bush: God, you're useless!
Bernanke: Look who's talking.

Border Security - Homeland Security Secretary Michael Chertoff said new border-crossing rules that take effect in two weeks will mean longer lines and stiffer demands for positive ID, including for Americans returning to the U.S. A driver's license won't be good enough to get you past a checkpoint at the Canadian border, Chertoff said. That will be a surprise to many people who routinely cross the border, but Chertoff bristled at criticism that such extra security would be inconvenient. "It's time to grow up and recognize that if we're serious about this threat, we've got to take reasonable, measured but nevertheless determined steps to getting better security," There's an old saying, "Those of us who live in glass houses shouldn't throw stones." Here's an idea, Mr. Secretary. Why don't you sit in one of these security lines at the airport while trying to catch that connecting flight--you know, the one that is already oversold and if you don't get on that plane, you'll be stranded for days--then come back and tell us how reasonable and measured this plan is.

2008 Presidential Race - If you read yesterday's post, I mentioned that the Democrats should figure out some way to grab back some of the political spotlight that the Republicans have had all to themselves in the run up to the Michigan primary. This isn't exactly what I had in mind. A federal judge allowed Nevada Democrats to hold presidential voting in casino hotels on the Las Vegas Strip, potentially helping Barack Obama in the next round of the campaign this Saturday. For the first time, Nevada Democrats planned to set up nine locations for Saturday's vote so casino shift workers, who are largely represented by a union that endorsed Obama, could attend caucuses and vote for a presidential candidate. A teachers' group filed a lawsuit saying the fact that only workers around the casinos could vote at their workplaces was unfair. So here's the deal. The lawsuit was brought by a teachers union--which endorses Hillary Clinton--against a casino workers union--which backs Obama. That's right, Democrats filing suit against Democrats. And get this. The issue they're arguing over is a ruling that makes it easier for more people to participate in the caucuses. Maybe you all could pick something else to focus your energies on.

Afghanistan - Defense Secretary Robert Gates denied reports of discontent between Washington and NATO allies over Afghanistan, a day after a newspaper quoted him criticizing NATO's counterinsurgency skills. Gates projected an image of unity among Western nations involved in Afghanistan during a Pentagon news briefing. "I mention this because there have been several recent media reports of discontent in the United States and among other NATO members about operations in Afghanistan," he said. "This does not reflect reality or, I believe, the views of our governments." But Gates, who had struggled in vain for months to convince other states to send more troops, also reiterated his comments about inadequate NATO training for counterinsurgency operations. Gates also said he had reluctantly asked President George W. Bush to approve the additional troops because it was clear European nations would not boost their force levels in Afghanistan. Here's what I want to know. What poor slob had to tell Gates that he had to apologize for the comments that he made on Wednesday? It's always the little guy delivering the bad news that gets fired over stuff like this.

China - China became the world's largest gold producer last year. China produced 276 metric tons of gold last year, equal to about 9.7 million ounces. That's up 12% from the year-ago and represented just over one-tenth of the world's supply. The ranking pushes South Africa into second place, the first time the gold giant has lost its top ranking since 1905. The title of top gold producer adds to a list of raw materials China can claim to produce more than any other country, including aluminum and steel. South Africa, which was producing as much as 1,000 tons of gold in 1970, has seen its mining production decline for five straight years. Accelerating a drop in output last year, the country's mining authorities started a crackdown on unsafe mines after 3,200 workers were trapped at Harmony Gold Mining Ltd.'s Eldestrand mine in October. Following an order by President Thabo Mbeki, the mining commission in the last three months started to requiring gold mines that suffer a fatal accident to suspend operations while a safety audit takes place. So that explains it. China could care a less about mining accidents. I'm also guessing that the added production of gold will probably push China up on another list as well--greenhouse gas emissions. If it does, at least the U.S. won't be the worst offender anymore.