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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (344529)	7/26/2007 8:08:57 PM
From: longnshort	Respond to of 1574984

god you have no sense of humor, are you divorced ?

To: combjelly who wrote (344529)	7/27/2007 7:58:38 AM
From: Road Walker	Read Replies (2) \| Respond to of 1574984

The Sum of Some Fears By PAUL KRUGMAN Yesterday’s scary ride in the markets wasn’t a full-fledged panic. The interest rate on 10-year U.S. government bonds — a much better indicator than stock prices of what investors think will happen to the economy — fell sharply, but even so, it ended the day higher than its level as recently as mid-May, and well above its levels earlier in the year. This tells us that investors still consider a recession, which would cause the Fed to cut interest rates, fairly unlikely. So it wasn’t the sum of all fears. But it was the sum of some fears — three, in particular. The first is fear of bad credit. Back in March, after another market plunge, I spun a fantasy about how a global financial meltdown could take place: people would suddenly remember that bad stuff sometimes happens, risk premiums — the extra return people demand for holding bonds that aren’t government guaranteed — would soar, and credit would dry up. Well, some of that happened yesterday. “The risk premium on corporate bonds soared the most in five years,” reported Bloomberg News. “And debt sales faltered as investors shunned all but the safest debt.” Mark Zandi of Moody’s Economy.com said that if another major hedge fund stumbles, “That could elicit a crisis of confidence and a global shock.” I saw that one coming. But what’s really striking is how much of the current angst in the market is over two things that I thought had been obvious for a long time: the magnitude of the housing slump and the persistence of high oil prices. I’ve written a lot about housing over the past couple of years, so let me just repeat the basics. Back in 2002 and 2003, low interest rates made buying a house look like a very good deal. As people piled into housing, however, prices rose — and people began assuming that they would keep on rising. So the boom fed on itself: borrowers began taking out loans they couldn’t really afford and lenders began relaxing their standards. Eventually the bubble had to burst, and when it did it left us with prices way out of line with reality and a huge overhang of unsold properties. This in turn has caused a plunge in housing construction and a lot of mortgage defaults. And the experience of past boom-and-bust cycles in housing tells us that it should be several years at least before things return to normal. I’ve written less about oil prices, so let me emphasize two points about the oil situation. First, we’re now in our third year of very high oil prices by historical standards — prices as high, even when adjusted for inflation, as those that prevailed in the early 1980s, after the Islamic revolution in Iran. Second, unlike the energy crises of the past, this price surge has happened even though there hasn’t been any major disruption in world oil supply. It’s pretty clear what’s happening: economic development is colliding with geology. The “peak oil” theorists may or may not be right in asserting that world oil production is already as high as it will ever go — anyone who really knows what’s going in Saudi Arabia’s fields, please drop me a line — but finding new oil is getting a lot harder. Meanwhile, emerging economies, especially in Asia, are burning ever more oil as they get richer. With demand soaring and supply growth sluggish at best, high prices are what you get. So why did people seem so shocked by a few more bad housing and oil numbers? What I guess I didn’t realize was how deep the denial still runs. Over the last couple of years a peculiar conviction emerged among some analysts — mainly, for some reason, among those with right-wing political leanings — that the housing bubble was a myth and that the real bubble was in oil prices. Each new peak in oil prices was met with declarations that it was all speculation — like the 2005 prediction by Steve Forbes that oil was in a “huge bubble” and that its price would be down to $35 or $40 a barrel within a year. And on the other side, as recently as this January, National Review’s Buzzcharts column declared that we were having a “pop-free” housing slowdown. I didn’t think many people believed this stuff, but the market’s sudden freakout over housing and oil suggests that I was wrong. Anyway, now reality is settling in. And there’s one more thing worth mentioning: the economic expansion that began in 2001, while it has been great for corporate profits, has yet to produce any significant gains for ordinary working Americans. And now it looks as if it never will.

To: combjelly who wrote (344529)	7/27/2007 1:59:54 PM
From: longnshort	Read Replies (1) \| Respond to of 1574984

Tempest In A Teapot By INVESTOR'S BUSINESS DAILY Posted Wednesday, July 25, 2007 4:20 PM PT Global Warming: A private firm's downgrade of its hurricane forecast raises an obvious question: If scientists can't get near-future projections in a limited area right, how can they predict the climate decades from now? A reasonable response is: They can't. But the global warming climate of fear did not blow in on the soft breezes of reason, but by the storm winds of emotion. Forecaster WSI Corp. said Tuesday that the season ending Nov. 30 will bring 14 named storms, six of which will grow into hurricanes, three of them major. WSI's initial forecast was for 15 named storms, eight hurricanes and four majors. Why the change? "Because," said WSI forecaster Todd Crawford, "ocean temperatures have not yet rebounded from the significant drop in late spring." Could it be that the 2007 hurricane season is turning out to be as overrated as 2006? Remember last year's predictions — that we were in for a brutal spell of storms? It had been quiet, they said, and we were due for a series of Katrina-like hurricanes. But as we wrote last November, as the much-dreaded '06 season whimpered to a close, the storm year came in like a lamb and went out the same way. For years, the Greenshirts have told us that emissions of carbon dioxide resulting from man's addiction to fossil fuel-based energy are turning the planet into a sweltering hothouse. The United Nations' Intergovernmental Panel On Climate Change has projected a temperature increase of 2 to 11.5 degrees Fahrenheit for the 21st century due to the greenhouse effect. As a result, alarmists say, ice caps will melt, glaciers will thaw and sea levels will rise as much as 20 feet, causing floods and death in low-lying areas. Storms are also predicted to increase in both frequency and intensity. To prevent this coming Category 5 cataclysm, we're supposed to shell out trillions of dollars and gladly adopt Spartan lifestyles. Instead of trying, as their grandparents did, to see how many bodies they can squeeze into a telephone booth, today's college kids are expected to see how many they can get in a Prius. Yet the fact remains: The local weatherman can't forecast more than about 10 days out, and neither can the experts tell us how warm, or cool, the planet is going to be in 2100, 2075 or even 2050. Even short-term predictions have been off. James Hansen, NASA scientist, predicted a 0.45-degree Celsius (0.81-degree Fahrenheit) rise in global temperature from 1988 to 1997. But in reality (a place environmental activists rarely visit) the increase was a mere 0.11-degree Celsius. We hope no one in Hansen's neighborhood relies on him to tell them when it's going to rain or when they'll need a coat and hat. Setting aside the hubristic notion that alarmists know what the right temperature is, too many other factors besides the greenhouse effect influence climate for them to declare they know exactly, or even approximately, what's coming. Solar activity, for instance, is among the most powerful, as are the El Nino and La Nina phenomena. We also question the concept of a "global" temperature. How could such a thing be measured when weather stations dot rather than blanket the Earth? Danish physicist Bjarne Andresen, a professor at the University of Copenhagen, made sense earlier this year when he said it's "impossible to talk about a single temperature for something as complicated as the climate of Earth. "A temperature can be defined only for a homogeneous system (and) climate is not governed by a single temperature," he said. "Rather, differences of temperatures drive the processes and create the storms, sea currents, thunder, etc. , which make up the climate." The formula for a climate of fear, though, requires nothing more than a lot of thunder and a bit of heat generated by political activists. ibdeditorials.com.