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Politics : Sioux Nation -- Ignore unavailable to you. Want to Upgrade?


To: Rock_nj who wrote (184330)1/8/2010 1:09:55 AM
From: koan2 Recommendations  Respond to of 362350
 
People can move to Alaska, the country of milk and honey. Almost no snow this year and temperatures around mid 30's all this winter in southeast. 43 in Sitka tomorrow.

Ony 700,000 people in a state over twice as large as Texas, tons of jobs, no taxes, social programs in tact, little crime, best schools, $1,500 a year to each resident, wilderness is the norm, pristine waters and unpolluted fish and game.

Best fishing and hunting in the country. Pretty nice place to live.

The water I drink every day is pristine and ice cold and comes out of pure aquaifers in the high mountians and no air pollution.

And all the ameneties of modern cities.



To: Rock_nj who wrote (184330)1/8/2010 7:20:41 AM
From: stockman_scott1 Recommendation  Read Replies (1) | Respond to of 362350
 
Eugene Robinson argues that less sometimes is really more

dailykos.com



To: Rock_nj who wrote (184330)1/8/2010 7:23:24 AM
From: stockman_scott  Respond to of 362350
 
Hedge funds gain 24.6 per cent in 2009

hedgeweek.com

Fri, 08/01/2010

The Hennessee Hedge Fund Index gained 24.6 per cent in 2009, according to data from Hennessee Group.

The S&P 500 advanced 24.7 per cent, the Dow Jones Industrial Average returned 18.8 per cent, and the Nasdaq Composite Index jumped 43.9 per cent.

Bonds also experienced broad based gains as the Barclays Aggregate Bond Index rose 5.9 per cent, while the Merrill Lynch High Yield Master II Index gained an impressive 57.5 per cent.

“Hedge funds experienced their best year since 1999 and were able to perform in line with the traditional equity markets in 2009 despite the strong rally and moderate net exposure,” says Charles Gradante, managing principal of Hennessee Group. “The top three performing strategies in 2009 included convertible arbitrage, emerging markets and distressed. Of these, we are particularly bullish in distressed in 2010 due to enormous opportunities still remaining and yet to come.”

The Hennessee Arbitrage/Event Driven Index advanced 30.1 per cent in 2009, driven by gains in the top two performing hedge fund strategies for the year – convertible arbitrage and distressed. Managers were able to take advantage of the massive deleveraging and forced liquidations as a result of the credit crisis in 2008 and purchase securities at very attractive valuations earlier in the year.

The Hennessee Convertible Arbitrage Index, advanced 39.9 per cent, its best year on record. Convertible bond funds benefited from elevated levels of volatility and a significant contraction in credit spreads throughout the year. In addition, the convertible market received a significant boost from cross-over buyers that were attracted to the deeply discounted valuations.

Credit spreads dropped from a historic wide of 2,000 bps above treasuries to 639 bps. Distressed funds benefited from the steep contraction in credit spreads and a long bias, as the Hennessee Distressed Index rose 43.3 per cent for the year. Distressed managers were also able to take advantage of a growing opportunity set throughout the year, as the default rate on junk bonds reached 12.0 per cent in late 2009, up from only 2.8 per cent a year ago.

The Hennessee Merger Arbitrage Index advanced 9.1 per cent for the year. Merger arbitrage was a lagging strategy in 2009 as financing was less attainable and deal flow slowed considerably throughout the year, particularly in value.

“With the S&P 500 Index trading at a multiple of approximately 23x, the equity markets appear to be pricing in strong earnings growth and a V-shaped economic recovery in 2010,” says Gradante. “We believe momentum may have carried the equity markets too far in 2009 and at current levels, appear a bit frothy. If earnings or economic growth disappoint, we could see a near term correction. In addition, we anticipate fundamentals to be under greater scrutiny in 2010 which should lead to large performance dispersions among stocks and sectors. This should prove to be a favorable environment for long/short equity funds.”

The Hennessee Long/Short Equity Index advanced 21.7 per cent in 2009. After plunging nearly 60 per cent from its high in October 2007 through early March 2009, the equity markets experienced a strong, broad based rally, gaining over 65 per cent during the final nine months of the year. Long/short equity funds profited from positions in their long portfolios while short portfolios and hedges generally served as a drag on performance.

Growth stocks outperformed value with the Russell 3000 Growth Index gaining 37.0 per cent in 2009 while the Russell 3000 Value Index advanced 19.8 per cent.

From a sector perspective, technology stocks led the way with a 59.9 per cent gain, followed by material stocks (45.2 per cent) and consumer discretionary stocks (38.8 per cent).

Hedge funds most willing to take on heightened directional risk while buying up high beta stocks that experienced the steepest sell-offs during the credit crisis were most rewarded while those funds that remained defensively positioned, and cautious, with an emphasis on fundamentals, generally lagged, particularly as the year progressed. Short biased managers suffered in 2009 as the Hennessee Short Biased Index declined 17.5 per cent.

The Hennessee Global/Macro Index advanced 24.6 per cent in 2009. The international equity markets participated in the broad based market rally, led by the emerging markets, particularly China. The Hennessee International Index advanced 21.4 per cent for the year, while the Hennessee Emerging Markets Index returned 39.1 per cent.

The MSCI EAFE rose 27.8 per cent, while the MSCI Emerging Markets Index jumped 74.5 per cent and the Shanghai SE Composite Index leaped 79.9 per cent. The Chinese equity markets benefited from a favourable economic outlook due to unprecedented government support and a general belief the country will lead the global economy out of recession.

Another area of strength in 2009 was Latin America as the MSCI EM Latin American Index gained a strong 98.1 per cent for the year, led higher by Brazil. While macro funds lagged the majority of strategies in 2009, the Hennessee Macro Index still managed to produce a respectable gain of 13.1 per cent for the year. Popular themes for macro managers in 2009 included short positions in the US dollar and treasuries, and long positions in oil and gold. In addition, macro managers took advantage of historically low rates, particularly in the US, to profit from the carry trade.

The S&P Crude Oil Spot gained 77.9 per cent for the year after selling off steeply in late 2008 while gold reached an all-time high crossing over USD1,200 in November of 2009.



To: Rock_nj who wrote (184330)1/9/2010 12:45:02 AM
From: stockman_scott  Read Replies (1) | Respond to of 362350
 
Republican Lugar Calls Cheney’s Criticism of Obama ‘Unfair’

By Viola Gienger

Jan. 9 (Bloomberg) -- Richard Lugar, the top Republican on the Senate Foreign Relations Committee, called President Barack Obama’s handling of recent terrorism threats “strong,” disputing former Vice President Dick Cheney’s criticism.

“It’s unfair,” Lugar said in an interview for Bloomberg Television’s “Political Capital with Al Hunt,” airing this weekend. “I think the president is focused.”

Cheney, who frequently has led Republican attacks on the Democratic president since leaving office a year ago, told Politico on Dec. 29 that Obama “is trying to pretend we are not at war” with a “low-key response” to the Dec. 25 attempt to ignite a bomb aboard a flight to Detroit.

To the contrary, Obama has demonstrated “firmness” and “decisiveness,” Lugar, who represents Indiana, said. “That’s been the antidote to the criticism.”

Still, the U.S. may be focusing too much on Afghanistan at a time when al-Qaeda is finding havens in other hot spots such as Yemen and Somalia, Lugar said. Umar Farouk Abdulmutallab, the 23-year-old Nigerian indicted in the Detroit plane plot, allegedly received his training in Yemen.

“I suspect that we will have to try to think through why we went to Afghanistan,” Lugar, 77, said.

After eliminating the al-Qaeda training camps there, the U.S. undertook “nation-building” beyond traditional development aid, he said. Projects such as advancing democracy, ensuring girls can attend school and promoting agriculture to replace poppy cultivation, while laudable, have cost “tens of thousands of people, hundreds of billions of dollars,” he said.

Progress Falls Short

“And now we find even Afghanistan is not exactly making the progress we hoped,” Lugar said.

U.S. intelligence agencies have heeded the potential threats from unstable states such as Yemen and Somalia, and will have to do more to understand the origins of terrorist attacks and why young Muslims get involved, Lugar said.

“We have to see the comprehensive nature of this, how many countries have potentially failing governments or very weak governments in which al-Qaeda could” have some influence, Lugar said.

As airline security improves, al-Qaeda and other terrorists targeting the U.S. will seek other ways to attack, Lugar said.

Americans “may be inclined to feel that once you solve the aircraft problem, somehow or other you’re in better shape,” Lugar said.

The administration has properly calibrated its support for the opposition in Iran, verbally and through activities such as ensuring they have access to telecommunications that allow them to maintain contact.

Support Liberty

“We ought to indicate that, as a matter of fact, that we support liberty,” Lugar said. “We support the building of institutions.”

One pivot point in countries such as Iran or Yemen or Pakistan has been the young people, Lugar said. While some are leading the way in challenging autocratic regimes such as the one in Iran, others are susceptible to the lures of extremist ideology, he said.

“Our intelligence focus has got to be very comprehensively on why young people would go in this direction, and if they do, who they are,” Lugar said.

By contrast, in Iran, “the young people are well ahead of us” and taking charge of the situation, Lugar said. “With the young people, the promise is the best.”

Violent Young Men

Two researchers at the government-chartered U.S. Institute of Peace agree that the understanding of why and how young men turn violent or become extremists is limited. Policies or programs focused solely on providing jobs or education may miss the point, they say.

“The dynamics of this are more complicated,” said Marc Sommers, a senior fellow at the institute in Washington and an associate research professor at Tufts University’s Fletcher School in Medford, Massachusetts.

Factors may include what society demands for a young man to be recognized as a successful adult, such as land or housing to provide for a family, Sommers said.

“They have a term for this in West Africa: It’s a youth man,” said Sommers, who will present his findings later this month with another fellow, U.S. Army Colonel Matt Venhaus, who is conducting related research for the Defense Department.

“There is an assumption that young men are inherently dangerous in places that are volatile,” Sommers said. “It’s not true.” The question sometimes boils down to “what must they do to avoid a situation where they’re looked on as a failure.”

To contact the reporter on this story: Viola Gienger in Washington at vgienger@bloomberg.net.

Last Updated: January 9, 2010 00:00 EST



To: Rock_nj who wrote (184330)1/9/2010 4:36:06 AM
From: stockman_scott  Respond to of 362350
 
Invitation to Disaster
_______________________________________________________________

By BOB HERBERT
Op-Ed Columnist
The New York Times
January 9, 2010

We didn’t pay attention to the housing bubble. We closed our eyes to warnings that the levees in New Orleans were inadequate. We gave short shrift to reports that bin Laden was determined to attack the U.S. And now we’re all but ignoring the fiscal train wreck that is coming from states with budget crises big enough to boggle the mind.

The states are in the worst fiscal shape since the Depression. The Great Recession has caused state tax revenues to fall off a cliff. Some states — New York and California come quickly to mind — are facing prolonged budget nightmares. Across the country, critical state services are being chopped like firewood. More cuts are coming. Taxes and fees are being raised. Yet the budgets in dozens and dozens of states remain drastically out of balance.

This is an arrow aimed straight at the heart of a robust national recovery. The Center on Budget and Policy Priorities has pointed out that if you add up the state budget gaps that have recently been plugged (in most cases, temporarily and haphazardly) and those that remain to be dealt with, you’ll likely reach a staggering $350 billion for the 2010 and 2011 fiscal years.

This is not a disaster waiting to happen. It’s under way.

Without substantial new federal help, state cuts that are now merely drastic will become draconian, and hundreds of thousands of additional jobs will be lost. The suffering is already widespread. Some states have laid off or furloughed employees. Tens of thousands of teachers have been let go as cuts have been made to public schools and critically important preschool programs. California has bludgeoned its public higher education system, one of the finest in the world.

Michigan has cut some of the benefits it provided to middle-class families struggling with the costs of health care for severely disabled children — benefits that helped pay for such things as incontinence supplies and transportation to special care centers. The Grand Rapids Press quoted a state official who acknowledged that the cuts were “tough” and were hurting families. But he added, “The state simply doesn’t have the money.”

The collapse of state tax revenues caused by the recession is the sharpest on record. Steep budget cuts have not been enough to offset the unprecedented plunge in tax collections that resulted from unemployment and other aspects of the downturn. The shortfalls swept the nation. As the Rockefeller Institute of Government reported, “Total tax revenue declined in all 44 states for which comparable early data are available.”

State governments are not without fault. Very few have been paragons of fiscal responsibility over the years. California is a well-known basket case. New York has a Legislature that is a laughingstock. But for the federal government to resist offering substantial additional help in the face of this growing crisis would be foolhardy. You can’t have a healthy national economy while dozens of states are hooked up to life support.

The Center on Budget offered some insight into how the trouble in the states adds up to trouble for us all:

“Expenditure cuts are problematic policies during an economic downturn because they reduce overall demand and can make the downturn deeper. When states cut spending, they lay off employees, cancel contracts with vendors, eliminate or lower payments to businesses and nonprofit organizations that provide direct services, and cut benefit payments to individuals.

“In all of these circumstances, the companies and organizations that would have received government payments have less money to spend on salaries and supplies, and individuals who would have received salaries or benefits have less money for consumption. This directly removes demand from the economy.”

The Obama administration has provided significant help to states through its stimulus program, and it has made a difference. It prevented the crisis from being much worse. But much of that assistance will run out by the end of the year and states are fashioning budgets right now that will absolutely hammer the quality of life for some of their most vulnerable residents.

New York’s lieutenant governor, Richard Ravitch, has been trying to bring a measure of sanity to the state’s budget process. But as he told me this week, without additional federal help, many states will have no choice but to impose extreme budget cuts, or raise taxes, or — most likely — do both.

We need more responsible and less wasteful fiscal behavior from all levels of government. But the country is still faced with a national economic emergency, with tens of millions out of work or underemployed. We can hardly afford any additional economic shocks. Turning our backs on the desperate trouble the states are in right now is nothing less than an utterly willful invitation to disaster.

Copyright 2010 The New York Times Company