The Business Facilities Blog

Thursday, January 29, 2009

Blago gets the boot

The tawdry saga of Gov. Rod Blagojevich concluded on schedule this week, when the Illinois State Senate unanimously ousted the helmet-haired governor after a brief trial in which Blagojevich was the most damning witness against himself, courtesy of wiretaps provided by a federal prosecutor.

U.S. attorney Patrick Fitzgerald's impulsive decision two months ago to publicly reveal Hot Rod's efforts to peddle Barack Obama's vacant U.S. Senate seat to the highest bidder provided a much-needed distraction -- and yes, comic relief -- to a shell-shocked nation battered by the worst economic calamity since the Great Depression.

The country was so hungry for an opportunity to express its righteous indignation that it turned a blind eye to the rather odd legal logic employed by Fitzgerald, who didn't bother to wait for the crime to be consummated before he dragged Blago into the public square for tarring and feathering.

The stampede for justice was spontaneous, trampling any annoying doubts that might have arisen if we had stopped to consider the fact that the type of horse-trading at the center of this scandal too often is, behind closed doors and hidden from the public view, a sordid staple of American politics. Blago was stupid enough to do it with a federal prosecutor listening in.

Let's face it: we needed this. It was the perfect scandal for the perfect storm, perfectly tailored for our media-driven celebrity culture and exceedingly short attention span in an age of instant communications.

Everyone played their roles perfectly in this national ritual of condemnation and redemption. Straight out of central casting came Fitzgerald as an over-caffeinated, 21st-century version of Eliot Ness, and Sen. Harry Reid as a stuffy blunderbuss of high moral dudgeon. The lead actors were accompanied by a bevy of celebrity cameos worthy of an Irwin Allen disaster movie. The only thing missing was O.J. and a cat.

And let's not forget the star of this eight-week miniseries, Hot Rod himself, who served up an unforgettable deep-dish pizza of lunacy and ensured himself a place in Chicago infamy right up there with Al Capone.

Although there was never any doubt that Blago would be voted off the island after the transcripts of his profane machinations were read on national television by Fitzgerald, Illinois' chief executive helpfully kept the story line moving by refusing to resign, provoking an impeachment and trial, which he then refused to attend until the final scene.

The Blagojevich scandal is a gift that will keep on giving. The merits of the perfectly teased wisp of hair that kept falling across Rod's forehead will be debated by hair stylists for generations to come. The electrons of Rod's goofy TV appearance with the gals of The View will drift out across the cosmos for eons, no doubt scaring off any would-be invaders from another galaxy.

So Illinois has a new governor, our national honor has been vindicated, and Patrick Fitzgerald has struck a timely blow for truth, justice and the American Way. Soon to be available on DVD at a Walmart near you.

Unfortunately for us, while we were busy burning Blago at the stake a much larger crime was being committed in broad daylight in front of the entire country:

The investment bankers who perpetrated the catastrophic collapse of the global economy have rewarded themselves with more than $18 billion in bonuses, culled from more than $400 billion in federal bailouts paid for by U.S. taxpayers. Most of these bankers haven't even left the scene of the crime. They still sit in their plush offices, waiting for another $700 billion helping of federal largesse.

Paging Eliot Ness. We've got a job for you when you're finished cleaning up the mess in Chicago. Please hurry.

posted by jack rogers at | 0 Comments Links to this post

Tuesday, January 27, 2009

Fighting Back Against Job Slashing

After yesterday's employment massacre--more than 70,000 job cuts announced across various U.S. industries--the role of economic development and the importance of economic developers, have reached new heights.

Before slumping my shoulders in response to the crush of job losses, I was emboldened by news out of North Carolina. EDGE4, a five-year economic development program designed to benefit Raleigh, Wake County and the Research Triangle region, announced an ambitious campaign that aims to raise $12 million for local business development and bring a unfathomable (in today's world) 50,000 jobs to the Triangle.

EDGE4 will host a breakfast tomorrow morning at the Raleigh Convention Center to announce the details of their stimulus program (for more information, contact Vernessa Roberts at 919.664.7080.) EDGE4 Co-Chairs Scott Custer of RBC Bank and Bill Johnson of Progress Energy will discuss the goals of the five-year plan and announce the campaign's current status. As an American and as a journalist focused on the economy, I am curious to see what innovative ideas are being churned out of the Research Triangle.

This announcement from North Carolina follows a promising plan that came out of Missouri on Friday. Governor Jay Nixon, in his first month at the helm, announced his Show-Me JOBS initiative, a bipartisan effort to move Missourians back into the workforce and support small-business growth. Gov. Nixon signed three executive orders, creating the Missouri Automotive Jobs Task Force, the Governor's Economic Stimulus Coordination Council, and a $2-million pool of funds for small business loans.

While corporate America and small town businesses alike are struggling, there has never been a more crucial time for our brightest economic minds to continue doing what they do best: creating opportunities.




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posted by Bill TrŸb at | 0 Comments Links to this post

Monday, January 26, 2009

Where the pain is (and isn't)



A state-by-state breakdown of unemployment, budget deficit and foreclosure statistics, jointly produced by CNN, Fortune and Money magazines, clearly illustrates which states are getting hit the hardest by the recession.

Here are the states that appear to be in the worst shape, economically, according to an aggregate of these indicators:



California -- 8.4 percent unemployment, $14 billion deficit, 3.9 percent of homes in foreclosure

Florida --7.3 percent unemployment, $2.3 billion deficit, 7.3 percent of homes in foreclosure

Michigan -- 9.6 percent unemployment, $145 million deficit, 3.5 percent of homes in foreclosure

Georgia -- 7.5 percent unemployment, $2.5 billion deficit, 2.3 percent of homes in foreclosure

Nevada -- 8 percent unemployment, $536 million deficit, 5.9 percent of homes in foreclosure

Illinois -- 7.3 percent unemployment, $2 billion deficit, 3.5 percent of homes in foreclosure

Arizona -- 6.3 percent unemployment, $1.2 billion deficit, 3.9 percent of homes in foreclosure

Ohio -- 7.3 percent unemployment, $1.2 billion deficit, 3.4 percent of homes in foreclosure


Those on the brighter side (below the national average in negatives) of the economic ledger include:

Nebraska -- 3.7 percent unemployment, no deficit, 1.6 percent of homes in foreclosure

North Dakota -- 3.3 percent unemployment, no deficit, 0.9 percent of homes in foreclosure

Wyoming -- 3.2 percent unemployment, no deficit, 0.6 percent of homes in foreclosure

Montana -- 4.9 percent unemployment, no deficit, 0.6 percent of homes in foreclosure

Texas -- 5.3 percent unemployment, no deficit, 1.43 homes in foreclosure

The full state-by-state breakdown can be viewed at
http://money.cnn.com/news/storysupplement/economy/gapmap/index.htm.

posted by jack rogers at | 0 Comments Links to this post

Tuesday, January 20, 2009

Like there's no tomorrow

The people who brought us the Great Bank Robbery of 2008 are back at work, and this time they're doing something for which they are uniquely qualified: shoveling tons of pork back to the folks in their home districts.

An armada of Brinks trucks, their engines still hot from a breakneck midnight run to deliver $350 billion in ''bailout'' funds to the nationÕs banks, are being reloaded with cash at the U.S. Treasury for the next episode of our ongoing cliffhanger, ''Rescuing the U.S. Economy.''

When we last left this soap opera, we were digesting the distressing news Ð as reported on page one of SundayÕs New York Times Ð that thus far the ''no strings attached'' bank bailout moolah has been pocketed by the banks without any noticeable effect on the credit freeze it was supposed to remedy.

Undeterred by the apparent failure of its last fiscal magic trick, Congress is moving full speed ahead to push all of its chips into the middle of the table.

The majority party in the House of Representatives has unveiled an $825 billion spending orgy it is calling an ''economic recovery'' bill. President Obama says he want this stimulus mega-package ready for his signature within the next three weeks, so no doubt it will move through Congress at warp-speed.

(Warning to readers who resolved to go on a fat-free diet for the new year: you might want to stop here.) This is what's on the menu in Washington:

-- $275 billion: Tax cuts

Includes a tax cut of $500 for individuals and $1,000 for couples by reducing payroll tax withholdings, and a proposal that would allow businesses to cut taxes by writing off current losses against profits earned in the past five years (instead of the usual two years).

-- $119 billion: Aid to states for health care and other essentials

Includes $87 billion to temporarily increase aid to states for Medicaid costs; $25 billion for high priority needs like public safety and other critical services; and $7 billion to help needy families.

-- $117 billion: Education

Includes $41 billion to local school districts for schools serving impoverished and disabled students, and for school construction costs; $39 billion to local school districts, public colleges, and universities; $15 billion to states for meeting key performance measures; and $22 billion for higher education, including increased funding for Pell grants.

-- $106 billion: Aid for unemployed and the needy

Includes $43 billion to extend jobless benefits and provide training services; $39 billion to help unemployed extend medical benefits through COBRA, and to provide short-term options to be covered by Medicaid; $20 billion to increase the food stamp benefit by more than 13 percent; $4 million to increase Social Security benefit payments for low-income disabled and elderly people.

-- $90 billion: Infrastructure

Includes $30 billion for highway and bridge construction; $31 billion to repair federal buildings and other public infrastructure and make them more energy efficient; $19 billion for water and environmental projects; $10 billion for public transit and rail systems.

-- $54 billion: Energy investments

Includes $32 billion for ÒsmarterÓ electricity grid and renewable technology; $22 billion to repair public housing, make federal infrastructure more energy efficient and provide aid to low-income people to weatherize their homes.

-- $16 billion: Investments in science and technology

Includes $10 billion for scientific research and facilities and $6 billion to expand broadband internet services to rural areas.

-- $48 billion: ''Miscellaneous''

Actually, the $48 billion piece wasnÕt labeled ''Miscellaneous'' in the proposed bill. It was simply tagged ''Other'' by the peopleÕs representatives. Hey, you can't expect Congress to waste time with an extra syllable or two when theyÕve got trillions of dollars to spend.

LetÕs hope the ''other'' $777 billion in this bill actually goes where it is supposed to. To paraphrase the late Everett Dirkson:

''A trillion here and a trillion there, and pretty soon this will amount to real money.''

posted by jack rogers at | 0 Comments Links to this post

Monday, January 5, 2009

New Year's resolutions

A new year is always a good time for resolutions. Here's a few we'd like to see in 2009:

-- Anyone who has borrowed money from Citigroup, GMAC or the two dozen other bankrupt financial entities that have been bailed out with federal funds can deduct the balance of their monthly loan payments from their income tax.

-- Bernie must spell his last name phonetically, which would make it Made-off, as in ''made off with $50 billion.''

-- Alan Greenspan must wear an orange robe and serve as translator for the Dalai Lama at all of his press conferences for the next 10 years.

-- Any major league baseball franchise playing in a stadium still named after a bankrupt financial institution automatically finishes the season in last place.

-- Hank Paulson must reimburse anyone who possesses a dollar bill that bears his signature for the difference between the actual and face value of this currency.

-- The U.S. Treasury will cut exorbitant printing costs by outsourcing production of new Benjamins to North Korean counterfeiters, whose low-cost photocopies look better than the originals anyway.

-- Foreclosed properties in the Hamptons and Beverly Hills will be awarded to homeless families by lottery.

-- Any Congressional bailout of state governments will require the Dakotas, Virginias and Carolinas to merge to cut costs.

-- New York City will rezone Wall Street to make it part of the Garment District to accommodate impending transfer of sock production back to the U.S. from China.

-- Chrysler will offer free Corinthian leather to anyone who buys a new Dodge.

-- The Securities and Exchange Commission will relocate to Baghdad, where it will be responsible for guarding the Green Zone.

-- The price of a barrel of oil will be pegged to the price of two corned beef sandwiches at the Carnegie Deli.

-- Ponzi's heirs will receive royalties every time his name is mentioned.

-- Ponzi's heirs will be permitted to sell shares to investors of future royalty revenue. New global derivatives market will be created by bundling risk management instruments guaranteeing debt of Ponzi investors. Ponzi credit swaps will be quietly spread throughout the global financial system, backed by World Bank.

-- Ponzi Bubble will fuel Great Economic Recovery of '09. Wall Street will be rezoned as financial center. Sock production will return to China.

-- Statue of Ponzi will be erected on Wall Street. Ponzi will be standing behind the bronze bull, holding a broom.

posted by jack rogers at | 0 Comments Links to this post

Previous 10 Posts

Delaware Takes a Risk, Announces Shift
Colossus of roads
Private hands, public money
It's raining Benjamins
Loose change
Hall of shame
Does your dog bite?
Blago gets the boot
Fighting Back Against Job Slashing
Where the pain is (and isn't)

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