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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (62118)	5/28/2006 6:02:28 PM
From: Crimson Ghost	Respond to of 110194

President Bush has granted his intelligence czar the authority to exempt publicly traded companies from reporting requirements - in the name of national security. Kai Ryssdal talks with BusinessWeek reporter Dawn Kopecki. Transcript Kai Ryssdal: Don't know if you caught this in the papers this morning, but the Federal Communications Commission isn't going to investigate the NSA. FCC Chairman Kevin Martin said his agency can't look into the government's domestic surveillance program because ... it's classified. The guy in charge of most of the classified stuff in this country is John Negroponte. He's the National Director of Intelligence. And President Bush just gave him something else to do, too. Dawn Kopecki's a correspondent for BusinessWeek. Dawn, what is that's happened? Dawn Kopecki: The President just delegated authority to John Negroponte that allows him to exempt any publicly traded corporation that is working on national defense issues or national security issues from the reporting and accounting requirements under the 1934 Securities and Exchange Act. It's basically the rules and regulations that require companies to keep accurate records, acurate books, accurate accounting ... and then disclose those projects and that information to investors. Ryssdal: This authority, this power that the President has to do this is not necessarily new. It's the use that you've uncovered. Kopecki: Well, we're not actually sure whether or not it's been used before. Every president since Jimmy Carter has had this authority. It was given to the president in 1977 in the Foreign Corruption Act. We don't know whether or not it's been used by the President, but what we do know, or what the White House told us, is that they don't believe any president has ever delegated that authority to anyone outside of the Oval Office. Ryssdal: When the President signs memoranda like this, in most cases it has to be published in the Federal Register. I'm going to guess, though, that the subject heading in the Federal Register of how this was listed didn't say "President lets John Negroponte decide what companies have to report their books. How did you find this story? Kopecki: I've covered a lot of different issues over the years in Washington, and one of them is securities laws. One of my securities sources knew that I was now covering defense issues and he called me up and said, "Hey, did you see this?" I knew that it was probably a little bit bigger than what the White House and other blogs and what-not had eluded to. Ryssdal: The memo that the President signed was dated May 5. Talk to me about the timing of this for a second. Kopecki: Well, May 5 is the day that Porter Goss stepped down from the CIA. It's also six days before USA Today published its story that three major telephone companies had turned over massive amounts of customer calling records to the federal government, that the NSA was using to data-mine and look for patterns and, basically, spy on. Ryssdal: Now, if you play this out, conceivably what this rule now means is that AT&T and Bell South and Verizon, who have these government contracts - it's been reported in the papers - have these government contracts to sell customer data to the government, they may never have to report that income or how the finances of that program worked. Kopecki: It's true. That could be one possibility. The White House, when I asked them point-blank whether or not any company, including those telephone companies, had been given this waiver, they said no comment. Negroponte's office hasn't called me back since I sent them my questions two days ago. We really don't know, and I believe, and what securities attorneys have told us, is we may never know because it doesn't require anyone to disclose it to anyone outside the Senate and House intelligence committees. Ryssdal: Dawn Kopecki's a Washington correspondent for BusinessWeek magazine. Dawn, thanks so much for your time. Kopecki: Sure.

To: John Vosilla who wrote (62118)	5/29/2006 12:07:07 AM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Haven't you been saying deflation and lower prices are coming for years now? How long are K cycles? Just what do you think the margin of error is in hitting it? Why do yo keep asking the same FN questions over and over? I am quite happy with my call for deflation right now. I have told you 100 times already what it will take for me to change my mind. Humor me and post it for me. Then when you think it is about to happen ask me again. Personally I think you are yanking my chain but typing this stuff over and over again is tiring. Mish

To: John Vosilla who wrote (62118)	5/29/2006 12:16:23 AM
From: mishedlo	Read Replies (2) \| Respond to of 110194

Haven't you been saying deflation and lower prices are coming for years now? Actually that is not even an accurate quote. Lower ASSET prices (stocks and housing) I have no freaking idea what happens to the price of bread or gasoline, nor is it it important to my model (except for the fact that $Ben is likely to focus on the wrong thing and do the wrong thing in response). Mish

To: John Vosilla who wrote (62118)	5/29/2006 6:01:35 AM
From: Square_Dealings	Read Replies (3) \| Respond to of 110194

Home prices will come down 20% oil will go to $200/bl and Mish will still be calling it a deflationary K wave Gold will be at $2500/oz and russ will still be flipping currencies and T-bills feeling good about not participating in the mania whatever s

To: John Vosilla who wrote (62118)	5/29/2006 7:43:40 AM
From: Mike Johnston	Read Replies (2) \| Respond to of 110194

No matter what happens, the average, paycheck to paycheck consumer will be decimated in the coming years. There is only a question of how ? 1. A housing depression with millions of layoffs and foreclosures. With finance, construction and retail industries going into major contraction it would not be a stretch to assume that 10% of population would lose their jobs, translating into about 14-15 million jobs lost. Also 10% or more of housing stock might go into foreclosure. 2. A dollar crisis causing many consumers not being able to afford even a japanese subcompact and possibly even a Sony television set. Lower income consumers would not even be able to shop at Wal Mart. Domestically manufactured goods would increase in price as well, so that while domestic stuff might be a bit cheaper, consumers might not be able to afford it either.