Today on The Stars Hollow Gazette

by: TheMomCat

Wed May 16, 2012 at 14:54:39 PDT

Our regular featured content-

• On This Day In History May 16 by TheMomCat
• Punting the Pundits by TheMomCat

And these featured articles-

• Seven Pillars of Wisdom by ek hornbeck
• The Wild West Is Where I Want To Be by ek hornbeck
• Why the $2 Billion Chase Loss Matters to Everyone by TheMomCat
• Not Capitalism by ek hornbeck
• The Liberal Party by ek hornbeck

Follow us on Twitter @StarsHollowGzt

This is an Open Thread.

Don't Believe Your Lying Eyes

by: ek hornbeck

Wed May 16, 2012 at 14:12:21 PDT

Yet as a writer it's gratifying to come across affirmations of sanity, if not an audience, and in that spirit I offer this-

Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al Engaged in 'Naked Short Selling'
Matt Taibbi, Rolling Stone
POSTED: May 15, 5:39 PM ET

"Fuck the compliance area - procedures, schmecedures," chirps Peter Melz, former president of Merrill Lynch Professional Clearing Corp. (a.k.a. Merrill Pro), when a subordinate worries about the company failing to comply with the rules governing short sales.
...
A quick primer on what naked short selling is. First of all, short selling, which is a completely legal and often beneficial activity, is when an investor bets that the value of a stock will decline. You do this by first borrowing and then selling the stock at its current price, then returning the stock to your original lender after the price has gone down. You then earn a profit on the difference between the original price and the new, lower price.

What matters here is the technical issue of how you borrow the stock. Typically, if you're a hedge fund and you want to short a company, you go to some big-shot investment bank like Goldman or Morgan Stanley and place the order. They then go out into the world, find the shares of the stock you want to short, borrow them for you, then physically settle the trade later.

But sometimes it's not easy to find those shares to borrow. Sometimes the shares are controlled by investors who might have no interest in lending them out. Sometimes there's such scarcity of borrowable shares that banks/brokers like Goldman have to pay a fee just to borrow the stock.

These hard-to-borrow stocks, stocks that cost money to borrow, are called negative rebate stocks. In some cases, these negative rebate stocks cost so much just to borrow that a short-seller would need to see a real price drop of 35 percent in the stock just to break even. So how do you short a stock when you can't find shares to borrow? Well, one solution is, you don't even bother to borrow them. And then, when the trade is done, you don't bother to deliver them. You just do the trade anyway without physically locating the stock.

Thus in this document we have another former Merrill Pro president, Thomas Tranfaglia, saying in a 2005 email: "We are NOT borrowing negatives... I have made that clear from the beginning. Why would we want to borrow them? We want to fail them."

Trafaglia, in other words, didn't want to bother paying the high cost of borrowing "negative rebate" stocks. Instead, he preferred to just sell stock he didn't actually possess. That is what is meant by, "We want to fail them." Trafaglia was talking about creating "fails" or "failed trades," which is what happens when you don't actually locate and borrow the stock within the time the law allows for trades to be settled.

If this sounds complicated, just focus on this: naked short selling, in essence, is selling stock you do not have. If you don't have to actually locate and borrow stock before you short it, you're creating an artificial supply of stock shares.

Magic beans.

Say it ain't so.

by: ek hornbeck

Wed May 16, 2012 at 12:57:35 PDT

Let's begin by stipulating the obvious: nobody outside of JPMorgan Chase knows for sure what really happened with those trades that have cost it so much money and done such severe damage to its once stellar reputation.

You know Joe, it's really not very hard to understand at all.

JP Morgan invested a ton of money, and by a ton I mean Trillions of exposure, in an obscure and lightly traded piece of paper labeled CDX NA IG 9 that represents a notional basket of 125 European stocks.

What do I mean by "notional"?  Well, there's not actually a pile of stock certificates lying around that you can use to wrap fish or wipe your ass or wallpaper your living room, these stocks are "synthetic" meaning that if anyone ever needs to see one you have to go down to the store and buy it at whatever the market price is.

But there is always a price and a market- or is there?

As the Hunt brothers found out in the early '80s with a far more tangible and useful (you can use it to make photographic film and it has excellent electrical conductivity) asset, you can assemble a position that so dominates a market that you can't sell without lowering the price which is high because of your artificially created scarcity.

Supply increases in the face of fixed Demand and the price goes down.  Real Economics 101 stuff, not hard to understand at all.

Now the problem with CDX NA IG 9 is you can't use it to make spoons or candlesticks.  Heck, as I pointed out before you can't even use it to wipe your ass because it doesn't exist.

So its value is entirely dependent on finding another sucker investor who's willing to give you something for nothing.

Good luck with that.

Cartnoon

by: ek hornbeck

Wed May 16, 2012 at 06:49:52 PDT

Not Capitalism

by: ek hornbeck

Wed May 16, 2012 at 06:06:10 PDT

Read that again because it's important.

Their groundbreaking contribution was the concept that markets (individuals) could more efficiently allocate resources (capital) than corrupt cronyism.  You know, free market capitalism.

Compare and contrast-

End of the Affair?
The Editors of The New York Times
Published: May 14, 2012

There has been less buying and selling of stock, and there have been huge outflows of investor dollars from domestic stock mutual funds, as detailed recently by The Times's Nathaniel Popper. If the trend continues, the result could be a less robust market, with fewer companies opting to raise money by issuing shares and fewer investors willing to put their retirement savings into stocks.
...
Policy makers should pay attention. Evidence suggests that investors are not merely reacting to tough conditions, but rather are staying away because they do not trust the market. Restoring trust is crucial to restoring the market.

American stocks have doubled in price since the market hit bottom three years ago. But trading in the United States stock market has not only failed to recover since the 2008 financial crash, it has continued to fall. In April, average daily trades stood at 6.5 billion, about half their peak four years ago. By comparison, after the market busts of 1987 and 2001, trading recovered within two years. In fact, going back to 1960, trading had never declined for three consecutive years, let alone four and counting.

Investors haven't just hunkered down, they have headed for the exits. Since the start of 2008, domestic stock mutual funds, a common way for individuals to invest, were drained of more than $400 billion, compared with an inflow of $52 billion in the four years before that.
...
There is also the feeling that the market has become increasingly unfair to investors. For example, Mr. Popper also reported recently on rebates to brokers from stock exchanges. In general, brokers are required to find the best prices for clients who pay them to buy and sell shares. But with the nation's 13 exchanges now paying brokers for sending them business, brokers may have an incentive to search for the biggest rebate rather than the best price. A new study has estimated that rebates could be costing mutual funds, pension funds and individual investors as much as $5 billion a year.

Also known as "maker-taker" pricing, the rebates have caught the attention of market researchers and investor advocates, including two former economists for the Securities and Exchange Commission who issued a report in 2010 saying that "in other contexts, these payments would be recognized as illegal kickbacks."

I realize citation of major media outlets is considered but a quaint remnant of irrelevant reality by sycophants and 'bots, but I thought I'd draw this to your attention.

On This Day In History May 16

by: TheMomCat

Wed May 16, 2012 at 06:00:00 PDT

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past "On This Day in History" here.
Click on image to enlarge

May 16 is the 136th day of the year (137th in leap years) in the Gregorian calendar. There are 229 days remaining until the end of the year.

On this day in 1868, the U.S. Senate votes against impeaching President Andrew Johnson and acquits him of committing "high crimes and misdemeanors."

In February 1868, the House of Representatives charged Johnson with 11 articles of impeachment for vague "high crimes and misdemeanors." (For comparison, in 1998, President Bill Clinton was charged with two articles of impeachment for obstruction of justice during an investigation into his inappropriate sexual behavior in the White House Oval Office. In 1974, Nixon faced three charges for his involvement in the Watergate scandal.) The main issue in Johnson's trial was his staunch resistance to implementing Congress' Civil War Reconstruction policies. The War Department was the federal agency responsible for carrying out Reconstruction programs in the war-ravaged southern states and when Johnson fired the agency's head, Edwin Stanton, Congress retaliated with calls for his impeachment.

Of the 11 counts, several went to the core of the conflict between Johnson and Congress. The House charged Johnson with illegally removing the secretary of war from office and for violating several Reconstruction Acts. The House also accused the president of hurling slanderous "inflammatory and scandalous harangues" against Congressional members. On February 24, the House passed all 11 articles of impeachment and the process moved into a Senate trial.

Be Prepared

by: ek hornbeck

Tue May 15, 2012 at 16:35:07 PDT

Seven Pillars of Wisdom

by: ek hornbeck

Tue May 15, 2012 at 15:35:01 PDT

Strategy and tactics of guerrilla warfare tend to focus around the use of a small, mobile force competing against a large, unwieldy one. The guerrilla focuses on organising in small units, dependent on the support of the local population. Tactically, the guerrilla army attacks its enemy in small, repetitive attacks from the opponent's center of gravity with a view to reducing casualties and becoming an intensive, repetitive strain on the enemy's resources, forcing an over-eager response which will both anger their own supporters and increase support for the guerrilla, thus forcing the enemy to withdraw.

Fourteenth Edition of the Encyclopedia Britannica (1929)

This seemed unlike the ritual of war of which Foch had been priest, and so it seemed that there was a difference of kind. Foch called his modern war "absolute." In it two nations professing incompatible philosophies set out to try them in the light of force. A struggle of two immaterial principles could only end when the supporters of one had no more means of resistance. An opinion can be argued with: a conviction is best shot. The logical end of a war of creeds is the final destruction of one, and Salammbo the classical textbook-instance. These were the lines of the struggle between France and Germany, but not, perhaps, between Germany and England, for all efforts to make the British soldier hate the enemy simply made him hate war. Thus the "absolute war" seemed only a variety of war; and beside it other sorts could be discerned, as Clausewitz had numbered them, personal wars for dynastic reasons, expulsive wars for party reasons, commercial wars for trading reasons.

Now the Arab aim was unmistakably geographical, to occupy all Arabic-speaking lands in Asia. In the doing of it Turks might be killed, yet "killing Turks" would never be an excuse or aim. If they would go quietly, the war would end. If not, they must be driven out: but at the cheapest possible price, since the Arabs were fighting for freedom, a pleasure only to be tasted by a man alive.
...
In the Arab case the algebraic factor would take first account of the area to be conquered. A casual calculation indicated perhaps 140,000 square miles. How would the Turks defend all that-no doubt by a trench line across the bottom, if the Arabs were an army attacking with banners displayed . . . but suppose they were an influence, a thing invulnerable, intangible, without front or back, drifting about like a gas? Armies were like plants, immobile as a whole, firm-rooted, and nourished through long stems to the head. The Arabs might be a vapour, blowing where they listed.  ...  It seemed that the assets in this sphere were with the Arabs, and climate, railways, deserts, technical weapons could also be attached to their interests. The Turk was stupid and would believe that rebellion was absolute, like war, and deal with it on the analogy of absolute warfare.
...
The Arab army just then was equally chary of men and materials: of men because they being irregulars were not units, but individuals, and an individual casualty is like a pebble dropped in water: each may make only a brief hole, but rings of sorrow widen out from them. The Arab army could not afford casualties.
...
The Arab war should be a war of detachment: to contain the enemy by the silent threat of a vast unknown desert, not disclosing themselves till the moment of attack. This attack need be only nominal, directed not against his men, but against his materials: so it should not seek for his main strength or his weaknesses, but for his most accessible material.
...
The printing press is the greatest weapon in the armoury of the modern commander, and the commanders of the Arab army being amateurs in the art, began their war in the atmosphere of the 20th century, and thought of their weapons without prejudice, not distinguishing one from another socially. The regular officer has the tradition of 40 generations of serving soldiers behind him, and to him the old weapons are the most honoured. The Arab command had seldom to concern itself with what its men did, but much with what they thought, and to it the diathetic was more than half command. In Europe it was set a little aside and entrusted to men outside the General Staff. But the Arab army was so weak physically that it could not let the metaphysical weapon rust unused. It had won a province when the civilians in it had been taught to die for the ideal of freedom: the presence or absence of the enemy was a secondary matter.
...
The Turkish army was an accident, not a target. Our true strategic aim was to seek its weakest link, and bear only on that till time made the mass of it fall. The Arab army must impose the longest possible passive defence on the Turks (this being the most materially expensive form of war) by extending its own front to the maximum.
...
The contest was not physical, but moral, and so battles were a mistake. All that could be won in a battle was the ammunition the enemy fired off.  ...  Battles are impositions on the side which believes itself weaker, made unavoidable either by lack of land-room, or by the need to defend a material property dearer than the lives of soldiers. The Arabs had nothing material to lose, so they were to defend nothing and to shoot nothing. Their cards were speed and time, not hitting power, and these gave them strategical rather than tactical strength.
...
The Desert and the Sea. In character these operations were like naval warfare, in their mobility, their ubiquity, their independence of bases and communications, in their ignoring of ground features, of strategic areas, of fixed directions, of fixed points. "He who commands the sea is at great liberty, and may take as much or as little of the war as he will"  ...  The Arab army never tried to maintain or improve an advantage, but to move off and strike again somewhere else. It used the smallest force in the quickest time at the farthest place. To continue the action till the enemy had changed his dispositions to resist it would have been to break the spirit of the fundamental rule of denying him targets.
...
An Undisciplined Army. The internal economy of the raiding parties was equally curious. Maximum irregularity and articulation were the aims. Diversity threw the enemy intelligence off the track. By the regular organization in identical battalions and divisions information builds itself up, until the presence of a corps can be inferred on corpses from three companies. The Arabs, again, were serving a common ideal, without tribal emulation, and so could not hope for any esprit de corps. Soldiers are made a caste either by being given great pay and rewards in money, uniform or political privileges; or, as in England, by being made outcasts, cut off from the mass of their fellow-citizens. There have been many armies enlisted voluntarily: there have been few armies serving voluntarily under such trying conditions, for so long a war as the Arab revolt. Any of the Arabs could go home whenever the conviction failed him. Their only contract was honour.

Consequently the Arab army had no discipline, in the sense in which it is restrictive, submergent of individuality, the Lowest Common Denominator of men. In regular armies in peace it means the limit of energy attainable by everybody present: it is the hunt not of an average, but of an absolute, a 100-per-cent standard, in which the 99 stronger men are played down to the level of the worst. The aim is to render the unit a unit, and the man a type, in order that their effort shall be calculable, their collective output even in grain and in bulk. The deeper the discipline, the lower the individual efficiency, and the more sure the performance. It is a deliberate sacrifice of capacity in order to reduce the uncertain element.  ...  In irregular war if two men are together one is being wasted. The moral strain of isolated action makes this simple form of war very hard on the individual soldier, and exacts from him special initiative, endurance and enthusiasm. Here the ideal was to make action a series of single combats to make the ranks a happy alliance of commanders-in-chief. The value of the Arab army depended entirely on quality, not on quantity. The members had to keep always cool, for the excitement of a blood-lust would impair their science, and their victory depended on a just use of speed, concealment, accuracy of fire. Guerrilla war is far more intellectual than a bayonet charge.

Here is the thesis:

Rebellion must have an unassailable base, something guarded not merely from attack, but from the fear of it: such a base as the Arab revolt had in the Red Sea ports, the desert, or in the minds of men converted to its creed. It must have a sophisticated alien enemy, in the form of a disciplined army of occupation too small to fulfill the doctrine of acreage: too few to adjust number to space, in order to dominate the whole area effectively from fortified posts.

It must have a friendly population, not actively friendly, but sympathetic to the point of not betraying rebel movements to the enemy.

Rebellions can be made by 2% active in a striking force, and 98% passively sympathetic. The few active rebels must have the qualities of speed and endurance, ubiquity and independence of arteries of supply. They must have the technical equipment to destroy or paralyze the enemy's organized communications, for irregular war is fairly Willisen's definition of strategy, "the study of communication," in its extreme degree, of attack where the enemy is not.

In 50 words: Granted mobility, security (in the form of denying targets to the enemy), time, and doctrine (the idea to convert every subject to friendliness), victory will rest with the insurgents, for the algebraical factors are in the end decisive, and against them perfections of means and spirit struggle quite in vain.

Today on The Stars Hollow Gazette

by: TheMomCat

Tue May 15, 2012 at 13:55:16 PDT

Our regular featured content-

• On This Day In History May 15 by TheMomCat
• Punting the Pundits by TheMomCat

And these featured articles-

• Greece Edging Towards Euro Exit by TheMomCat
• Why Are Bank CEO's Seated on the New York Federal Reserve? by TheMomCat
• Not Capitalism by ek hornbeck

Follow us on Twitter @StarsHollowGzt

Write more and often.  This is an Open Thread.

"Where at least I know I'm free..."

by: ek hornbeck

Tue May 15, 2012 at 13:01:18 PDT

"This is simply a risk management tool, as the public will receive clear information regarding public safety messages and any orders provided by police," Chicago Police spokeswoman Melissa Stratton told the Guardian.

However, during its first outing at a U.S. protest, during the G-20 summit in Pittsburgh in 2009, police blasted non-lethal sound waves from the device as a crowd deterrent. Unlike firing tear gas or swinging batons, deploying the LRAD does not create a dramatic media spectacle; indeed, videos from the Pittsburgh protests capture the LRAD emitting little more than a high-pitched siren. Those within the sound cannon's range, however, have described immense pain and severe headaches and - in some cases - irreversible hearing damage. LRAD Corp., which produces the weapon for the military and domestic policing, said that anyone within 100m of the device's directed sound path will experience "extreme pain," according to Gizmodo (link corrected- ek).

"In Pittsburgh, they directed the LRAD at a crowd coming up the center of a wide street, then sent tear gas canisters down the sides of the street. Tear gas is painful, but everyone ran into the tear gas to get out of the LRAD path," one protester who attended the Pittsburgh G-20 told me, asking to remain anonymous. Chicago's Police Superintendent Garry McCarthy has recently expressed that he believes tear gas to be an ineffective crowd control device - and based on lessons from Pittsburgh, the LRAD can produce a painful enough effect to force crowd dispersal without the dramatic media impact tear gas creates; it's certainly a more insidious weapon.

(h/t Chris in Paris)

Black Holes, Strokes & Zoos

by: TheMomCat

Tue May 15, 2012 at 03:45:14 PDT

Minorities use black hole time travel for revenge, strokes suddenly turn people gay, and a zoo is nothing but monkey prison.

Whatever you do Do Not Google "Gay Tail Spin".

Cartnoon

by: ek hornbeck

Tue May 15, 2012 at 06:47:48 PDT

Why Are Bank CEO's Seated on the New York Federal Reserve?

by: TheMomCat

Tue May 15, 2012 at 03:51:02 PDT

Why is the CEO of JP Morgan Chase, or for that matter any bank CEO, sitting on the board of the body that is supposed to regulate their banks? This is a serious conflict of interest in the face of the 2008 bank crisis and, now, the $2 billion loss by Chase. $2 billion, a pittance you say. Well consider that loss triggered a drop in Chase's market value by another $20 billion

As Matt Taibbi points this is a cause for public concern:

[..] J.P. Morgan Chase is a federally-insured depository institution that has been and will continue to be the recipient of massive amounts of public assistance. If the bank fails, someone will reach into your pocket to pay for the cleanup. So when they gamble like drunken sailors, it's everyone's problem. [..]

{T}he incident underscored the basic problem. If J.P. Morgan Chase wants to act like a crazed cowboy hedge fund and make wild exacta bets on the derivatives market, they should be welcome to do so. But they shouldn't get to do it with cheap cash from the Fed's discount window, and they shouldn't get to do it with money from the federally-insured bank accounts of teachers, firemen and other such real people. It's a simple concept: you either get to be a bank, or you get to be a casino. But you can't be both. If we don't have rules to enforce that concept, we ought to get some.

Dimon being on the board of the New York Federal Reserve is absurd:

The chief executive of JP Morgan Chase -- the largest bank in the land, and the exemplar of a 'too big to fail' institution -- is allowed to sit at the table with the people tasked with deciding when and how much of other people's money gets earmarked for his rescue. This is not the fox guarding the hen house; this is the fox guarding the hen house while selling synthetic derivatives whose value increases with every hen he gobbles up, and who burns down the hen house so he can collect on his fire insurance policy, and then gets the government to build him a new hen house at taxpayer expense. And then, after that, he still gets to guard the new hen house.

Elizabeth Warren, a Massachusetts Democrat running for U.S. Senate, called for Dimon's removal:

JP Morgan Chase CEO Jamie Dimon should resign from the NY Federal Reserve Bank Board

Last week, JP Morgan Chase announced a $2 billion trading loss in two months.

Sunday on Meet the Press, JP Morgan CEO Jamie Dimon said, "We know we were sloppy, we know we were stupid, we know there was bad judgment."

After the biggest financial crisis in generations, Americans are frustrated that Wall Street has still not been held accountable and does not appear to consider itself responsible. Wall Street banks continue to have fundamental problems, and tough oversight and accountability are urgently needed.

Dimon is not only the CEO of JP Morgan, he is also a member of the Board of Directors of the New York Federal Reserve Bank, where he advises the Federal Reserve on the oversight of the financial industry.

Dimon should resign from his post at the New York Fed to send a signal to the American people that Wall Street bankers get it and to show that they understand the need for responsibility and accountability.

Sign Ms. Warren's petition for Dimon to resign

On This Day In History May 15

by: TheMomCat

Tue May 15, 2012 at 06:00:00 PDT

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past "On This Day in History" here.
Click on image to enlarge

May 15 is the 135th day of the year (136th in leap years) in the Gregorian calendar. There are 230 days remaining until the end of the year.

On this day in 1776, the Virginia Convention instructs its Continental Congress delegation to propose a resolution of independence from Great Britain, paving the way for the United States Declaration of Independence.

The Virginia Conventions were a series of five political meetings in the Colony of Virginiaduring the American Revolution. Because the House of Burgesses had been dissolved in 1774 by Royal Governor Lord Dunmore, the conventions served as a revolutionary provisional government until the establishment of the independent Commonwealth of Virginia in 1776.

The fifth convention began May 6, 1776 and met in Williamsburg. On May 15, the convention declared independence from Britain and adopted a set of three momentous resolutions: one calling for a declaration of rights for Virginia, one calling for establishment of a republican constitution, and a third calling for federal relations with whichever other colonies would have them and alliance with whichever foreign countries would have them. It also instructed its delegates to the Continental Congress in Philadelphia to declare independence. Virginia's congressional delegation was thus the only one under unconditional positive instructions to declare independence; Virginia was already independent, and so its convention did not want their state, in the words of Benjamin Franklin, to "hang separately." According to James Madison's correspondence for that day, Williamsburg residents marked the occasion by taking down the Union Jack from over the colonial capitol and running up a continental union flag.

On June 7, Richard Henry Lee, one of Virginia's delegates to Congress, carried out these instructions and proposed independence in the language the convention had commanded him to use: that "these colonies are, and of right ought to be, free and independent states." This paved the way for the American Declaration of Independence, which also reflected the idea that not one nation, but thirteen free and independent states were aborning on the east coast of North America.

The convention amended, and on June 12 adopted, George Mason's Declaration of Rights, a precursor to the United States Bill of Rights. On June 29, the convention approved the first Constitution of Virginia, which was also the first written constitution adopted by the people's representatives in the history of the world. The convention chose Patrick Henry as the first governor of the new Commonwealth of Virginia, and he was inaugurated on June 29, 1776. Thus, Virginia had a functioning, permanent, republican constitution before July 4, 1776 -- uniquely among the thirteen American colonies.

Muse in the Morning

by: Robyn

Tue May 15, 2012 at 03:00:00 PDT

Muse in the Morning

Primaries

Today on The Stars Hollow Gazette

by: TheMomCat

Mon May 14, 2012 at 14:23:41 PDT

Our regular featured content-

• On This Day In History May 14 by TheMomCat
• Punting the Pundits by TheMomCat

These featured articles-

• Pique the Geek 20120513: Melatonin, not just a Sleep Aid by Translator
• 1% Want To Steal Your Social Security, Pres. Obama Is Helping Them by joe shikspack
• Umm... When your bartender cuts you off... by ek hornbeck
• Sunday Train: Faster Trains Yields More Services Per Day by BruceMcF

Follow us on Twitter @StarsHollowGzt

This is an Open Thread

A Horse Argument

by: Lasthorseman

Sun May 13, 2012 at 18:10:42 PDT

LGBT: The Times They Are A Changin'

by: TheMomCat

Sat May 12, 2012 at 18:03:13 PDT

Yes, they are. And the change has finally struck right wing panderer Chris Matthews who finally called out Tony Perkins of the "Family Research Council" for "spreading hateful lies and junk research about the LGBT community." On this May 10 segment of Hardball, Matthews, with the help of Rep. Barney Frank, challenged Perkins' anti-gay misinformation, held him accountable for past statements, and demonstrated how out-of-the-mainstream his extreme positions really are:

Thank you, Mr. Matthews, for showing the rest of the media how a bigot should be treated. This is how a responsible journalist responds to hate speech.

h/t Gaius Publius at AMERICAblog

Cartnoon

by: ek hornbeck

Mon May 14, 2012 at 07:10:58 PDT

236,000 Americans lose unemployment benefits this week

by: gjohnsit

Sun May 13, 2012 at 05:46:10 PDT

 According to CBS, the benefits will be cut due to terms of a benefit extension agreement in Congress. It stated benefits would be cut off if unemployment rates fell below certain thresholds.
  According to CNN Money, starting later this year the maximum number of weeks the jobless can collect unemployment benefits will be reduced to as little as 40 weeks in states with jobless rates below 6 percent and to as many as 73 weeks where unemployment tops 9 percent.

On This Day In History May 14

by: TheMomCat

Mon May 14, 2012 at 06:00:00 PDT

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past "On This Day in History" here.

May 14 is the 134th day of the year (135th in leap years) in the Gregorian calendar. There are 231 days remaining until the end of the year.

On this day in 1796, Edward Jenner, an English country doctor from Gloucestershire, administers the world's first vaccination as a preventive treatment for smallpox, a disease that had killed millions of people over the centuries.

Edward Anthony Jenner (17 May 1749 - 26 January 1823) was an English scientist who studied his natural surroundings in Berkeley, Gloucestershire. Jenner is widely credited as the pioneer of smallpox vaccine, and is sometimes referred to as the "Father of Immunology"; his works have been said to have "saved more lives than the work of any other man".

Smallpox

Lady Mary Wortley Montagu witnessed the Ottoman Empire practice of variolation during her 1716-1718 sojourn in Istanbul, where her husband was the British ambassador. She brought the idea back to Britain. Voltaire, a few years later, recorded that 60% of people caught smallpox, with 20% of the population dying of it. In the years following 1770 there were at least six people in England and Germany (Sevel, Jensen, Jesty 1774, Rendell, Plett 1791) who had successfully tested the possibility of using the cowpox vaccine as an immunization for smallpox in humans. For example, Dorset farmer Benjamin Jesty had successfully vaccinated and presumably induced immunity in his wife and two children with cowpox during a smallpox epidemic in 1774, but it was not until Jenner's work some twenty years later that the procedure became widely understood. Indeed, Jenner may have been aware of Jesty's procedures and success.

Jenner's Initial Theory:
The initial source of infection was a disease of horses, called "the grease", and that this was transferred to cows by farm workers, transformed, and then manifested as cowpox.

Noting the common observation that milkmaids did not generally get smallpox, Jenner theorized that the pus in the blisters which milkmaids received from cowpox (a disease similar to smallpox, but much less virulent) protected the milkmaids from smallpox. He may have had the advantage of hearing stories of Benjamin Jesty and others who deliberately arranged cowpox infection of their families, and then noticed a reduced smallpox risk in those families.

On 14 May 1796, Jenner tested his hypothesis by inoculating James Phipps, a young boy of 8 years (the son of Jenner's gardener), with material from the cowpox blisters of the hand of Sarah Nelmes, a milkmaid who had caught cowpox from a cow called Blossom, whose hide hangs on the wall of the library at St George's medical school (now in Tooting). Blossom's hide commemorates one of the school's most renowned alumni. Phipps was the 17th case described in Jenner's first paper on vaccination.

Jenner inoculated Phipps with cowpox pus in both arms on the same day. The inoculation was accomplished by scraping the pus from Nelmes' blisters onto a piece of wood then transferring this to Phipps' arms. This produced a fever and some uneasiness but no great illness. Later, he injected Phipps with variolous material, which would have been the routine attempt to produce immunity at that time. No disease had followed. Jenner reported that later the boy was again challenged with variolous material and again showed no sign of infection.

Known:
Smallpox is more dangerous than variolation and cowpox less dangerous than variolation.
Hypothesis:
Infection with cowpox gives immunity to smallpox.
Test:
If variolation after infection with cowpox fails to produce a smallpox infection, immunity to smallpox has been achieved.
Consequence:
Immunity to smallpox can be induced much more safely than by variolation.

Ronald Hopkins states: "Jenner's unique contribution was not that he inoculated a few persons with cowpox, but that he then proved they were immune to smallpox. Moreover, he demonstrated that the protective cowpox could be effectively inoculated from person to person, not just directly from cattle. In addition he tested his theory on a series of 23 subjects. This aspect of his research method increased the validity of his evidence.

He continued his research and reported it to the Royal Society, who did not publish the initial report. After improvement and further work, he published a report of twenty-three cases. Some of his conclusions were correct, and some erroneous - modern microbiological and microscopic methods would make this easier to repeat. The medical establishment, as cautious then as now, considered his findings for some time before accepting them. Eventually vaccination was accepted, and in 1840 the British government banned variolation - the use of smallpox itself - and provided vaccination - using cowpox - free of charge. (See Vaccination acts). The success of his discovery soon began to spread around Europe and as an example was used en masse in the Spanish Balmis Expedition a three year mission to the Americas led by Dr Francisco Javier de Balmis with the aim of giving thousands the smallpox vaccine. The expedtition was successful and Jenner wrote, "I don't imagine the annals of history furnish an example of philanthropy so noble, so extensive as this."

Jenner's continuing work on vaccination prevented his continuing his ordinary medical practice. He was supported by his colleagues and the King in petitioning Parliament and was granted £10,000 for his work on vaccination. In 1806 he was granted another £20,000 for his continuing work.

Legacy

In 1979, the World Health Organization declared smallpox an eradicated disease. This was the result of coordinated public health efforts by many people, but vaccination was an essential component. And although it was declared eradicated, some samples still remain in laboratories in Centers for Disease Control and Prevention (CDC) in Atlanta, Georgia in the United States, and State Research Center of Virology and Biotechnology VECTOR in Koltsovo, Novosibirsk Oblast, Russia.

The importance of his work does not stop there. His vaccine also laid the groundwork for modern-day discoveries in immunology, and the field he began may someday lead to cures for arthritis, AIDS, and many other diseases of the time.

Muse in the Morning

by: Robyn

Mon May 14, 2012 at 03:00:00 PDT

Muse in the Morning

Bellow

Off with their heads!

by: ek hornbeck

Sun May 13, 2012 at 21:45:29 PDT

JPMorgan Unit's London Staff May Go as Loss Prompts Exits
By Dawn Kopecki, Bloomberg News
May 13, 2012 8:45 PM ET

The entire London staff of JPMorgan Chase & Co. (JPM)'s chief investment office is at risk of dismissal as a $2 billion trading loss prompts the first executive departures as soon as this week, a person familiar with the situation said.

Pique the Geek 20120513: Melatonin, not just a Sleep Aid

by: Translator

Sun May 13, 2012 at 18:00:09 PDT

Like my current series about The Moody Blues on Popular Culture, this topic was suggested by my very dear high school buddy Steve Ahlert.  (He approved of me using his name.)  Steve and I sort of lost contact for a while, but now we speak almost every day.  I LOVE my Straight Talk unlimited everything, $45 per month plan and my Samsung T528G!

Steve uses melatonin to help him sleep, and it is very effective for him.  Now, Steve is not some new age trend follower.  Actually he is a professional pharmacist, and is the best pharmacist insofar as knowing his area of expertise that I have ever known.  Equally important, the way that he deals with his patients is outstanding.  He has a knack for translating highly technical information to whatever level is necessary for people to understand what they need to do.

Melatonin is interesting because what has turned out to be sort of an incidental effect gave it its name.  It is also interesting from a molecular structure/activity standpoint because it is chemically related to a whole host of psychologically active agents.  Let us examine this interesting substance.

Today on The Stars Hollow Gazette

by: TheMomCat

Sun May 13, 2012 at 14:29:48 PDT

Our regular featured content-

• On This Day In History May 13 by TheMomCat

These featured articles-

• Formula One: Catalunya by ek hornbeck
• Happy Mother's Day by ek hornbeck
• Mothers' Day by TheMomCat
• Fiddleheads! by ek hornbeck

our weekly features-

• My Little Town 20120509: C. W. Clark and the TeeVee by Translator
• Six In The Morning: Sunday by mishima
• Punting the Pundits: Sunday Preview Edition by TheMomCat
• Rant of the Week: Stephen Colbert by TheMomCat

Follow us on Twitter @StarsHollowGzt

This is an Open Thread

Health and Fitness News

by: TheMomCat

Sat May 12, 2012 at 18:14:14 PDT

Questions are encouraged and I will answer to the best of my ability. If I can't, I will try to steer you in the right direction. Naturally, I cannot give individual medical advice for personal health issues. I can give you information about medical conditions and the current treatments available.

You can now find past Health and Fitness News diaries here and on the right hand side of the Front Page.

   I decided to devote most of the recipes this week to dishes that involve cooking lettuce. I couldn't resist one simple romaine and radish salad, but the rest of the dishes are cooked. I used the tough outer leaves of romaine or leaf lettuce in blended sauces and entire heads in soups. I tested several classic French braised lettuce recipes, but as promising as these looked on paper, they didn't appeal to me nearly as much as the more vibrant Chinese stir-fried lettuce dishes I tried, or the puréed soups. In the French braised dishes, the life seemed to be cooked out of the lettuces.

   I used sturdy lettuces like romaine and leaf lettuce for the cooked dishes, not tender spring mixes, which really should be dedicated to salads. Bitter lettuces with tough outer leaves, like curly endive (a k a escarole or chicory) and Batavia, stand up to cooking the same way greens like kale do. Use the recipes not only when you have a surfeit of lettuce in your C.S.A. basket, but also for the tough outer leaves of the one head of romaine in your fridge that you don't want to include in your salads.

~Martha Rose Shulman~

Mothers' Day

by: TheMomCat

Sat May 12, 2012 at 17:53:43 PDT

Mothers' Day was officially established as a holiday in the United States by Pres. Woodrow Wilson on May 9, 1914.

The earliest call for the establishment of Mother's Day in the US came in 1870 with the "The Mother's Day Proclamation" written by Julia Howe, a prominent American abolitionist, social activist, and poet. It was a pacifist reaction to the US Civil War and the Franco-Prussian War. It was Ms. Howe's belief that women had a responsibility to shape society at a political level.

Arise, then, women of this day!
Arise all women who have hearts,
Whether your baptism be that of water or of tears
Say firmly:

"We will not have great questions decided by irrelevant agencies,
Our husbands shall not come to us reeking of carnage,
For caresses and applause.
Our sons shall not be taken from us to unlearn
All that we have been able to teach them of
charity, mercy and patience.

"We women of one country
Will be too tender of those of another country
To allow our sons to be trained to injure theirs."

From the bosom of the devastated earth a voice goes up with
Our own. It says, "Disarm, Disarm!"
The sword of murder is not the balance of justice!
Blood does not wipe out dishonor
Nor violence indicate possession.
As men have of ten forsaken the plow and the anvil at the summons of war.

Let women now leave all that may be left of home
For a great and earnest day of counsel.

Let them meet first, as women, to bewail and commemorate the dead.

Let them then solemnly take counsel with each other as to the means
Whereby the great human family can live in peace,
Each bearing after his own time the sacred impress, not of Caesar,
But of God.

In the name of womanhood and humanity, I earnestly ask
That a general congress of women without limit of nationality
May be appointed and held at some place deemed most convenient
And at the earliest period consistent with its objects
To promote the alliance of the different nationalities,
The amicable settlement of international questions.
The great and general interests of peace.

Originally published as part of a series on History at Docudharma.

Cartnoon

by: ek hornbeck

Sun May 13, 2012 at 06:59:06 PDT

Episode One.

Revisited.

Happy Mother's Day

by: ek hornbeck

Sat May 12, 2012 at 16:44:58 PDT

I tease my mother by calling her Emily after Emily Gilmore both because overall my family reminds me very much of the Gilmores and because she's never met a brand name she didn't like whereas I'm perfectly content to buy generic.

I thank her among many things for a thorough grounding in the domestic and other arts.

Mom teaches first grade and is actually famous in a quiet sort of way.  The kind parents brag about and angle their kids for though she's won national awards too.  Of course I owe everything I know about educating to her and among my own peers I'm considered an asskicking trainer.

She also insisted we learn to perform routine self maintenance, little things like laundry and ironing, machine and hand mending. basic cooking.  Of course she always indulged us with trips to museums and zoos, made sure we got library cards, did the usual bus driver thing to swim practice, had this huge second career as a Brownie/Girl Scout Leader for my sister.

At one point when I was old enough for it to make an impression she took her Masters of Fine Arts in Art of all things, so I know a little Art History with Far Eastern.  I understand how to bang out a copper pot and make silver rings because she took me to class once or twice.  She liked stained glass so much that she and dad made several pieces (you use a soldering iron and can cut yourself pretty bad so it's a macho thing too).  They also did silk screening which taught me a lot about layout and graphic arts.

But she always liked fabric arts and in addition to a framed three dimensional piece in the living room, there are Afghans and rugs and scarves and pot holders and wash cloths and hats and quilts and dolls.

And the training kits and manuals for her mentorship programs, and the adaptations and costumes for the annual first and fifth grade play.  Did I mention she plays 3 instruments, though mostly piano?

She touch types too.

So to Emily, a woman of accomplishment and refinement, Happy Mother's Day.

On This Day In History May 13

by: TheMomCat

Sun May 13, 2012 at 06:00:00 PDT

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past "On This Day in History" here.
Click on images to enlarge

May 13 is the 133rd day of the year (134th in leap years) in the Gregorian calendar. There are 232 days remaining until the end of the year.

On this day in 1846, the United States declared war on Mexico in a dispute over Texas. The U.S. Congress overwhelmingly votes in favor of President James K. Polk's request.

The Mexican-American War (or Mexican War) was an armed conflict between the United States and Mexico from 1846 to 1848 in the wake of the 1845 U.S. annexation of Texas, which Mexico considered part of its territory despite the 1836 Texas Revolution.

Origins of the war

The Mexican government had long warned the United States that annexation would mean war. Because the Mexican congress had refused to recognize Texan independence, Mexico saw Texas as a rebellious territory that would be retaken. Britain and France, which recognized the independence of Texas, repeatedly tried to dissuade Mexico from declaring war. When Texas joined the U.S. as a state in 1845, the Mexican government broke diplomatic relations with the U.S.

The Texan claim to the Rio Grande boundary had been omitted from the annexation resolution to help secure passage after the annexation treaty failed in the Senate. President Polk claimed the Rio Grande boundary, and this provoked a dispute with Mexico. In June 1845, Polk sent General Zachary Taylor to Texas, and by October 3,500 Americans were on the Nueces River, prepared to defend Texas from a Mexican invasion. Polk wanted to protect the border and also coveted the continent clear to the Pacific Ocean. Polk had instructed the Pacific naval squadron to seize the California ports if Mexico declared war while staying on good terms with the inhabitants. At the same time he wrote to Thomas Larkin, the American consul in Monterey, disclaiming American ambitions but offering to support independence from Mexico or voluntary accession to the U.S., and warning that a British or French takeover would be opposed.

To end another war-scare (Fifty-Four Forty or Fight) with Britain over Oregon Country, Polk signed the Oregon Treaty dividing the territory, angering northern Democrats who felt he was prioritizing Southern expansion over Northern expansion.

In the winter of 1845-46, the federally commissioned explorer John C. Fremont and a group of armed men appeared in California. After telling the Mexican governor and Larkin he was merely buying supplies on the way to Oregon, he instead entered the populated area of California and visited Santa Cruz and the Salinas Valley, explaining he had been looking for a seaside home for his mother. The Mexican authorities became alarmed and ordered him to leave. Fremont responded by building a fort on Gavilan Peak and raising the American flag. Larkin sent word that his actions were counterproductive. Fremont left California in March but returned to California and assisted the Bear Flag Revolt in Sonoma, where many American immigrants stated that they were playing "the Texas game" and declared California's independence from Mexico.

On November 10, 1845, Polk sent John Slidell, a secret representative, to Mexico City with an offer of $25 million ($632,500,000 today) for the Rio Grande border in Texas and Mexico's provinces of Alta California and Santa Fe de Nuevo Mexico. U.S. expansionists wanted California to thwart British ambitions in the area and to gain a port on the Pacific Ocean. Polk authorized Slidell to forgive the $3 million ($76 million today) owed to U.S. citizens for damages caused by the Mexican War of Independence and pay another $25 to $30 million ($633 million to $759 million today) in exchange for the two territories.

Mexico was not inclined nor able to negotiate. In 1846 alone, the presidency changed hands four times, the war ministry six times, and the finance ministry sixteen times. However, Mexican public opinion and all political factions agreed that selling the territories to the United States would tarnish the national honor. Mexicans who opposed direct conflict with the United States, including President José Joaquin de Herrera, were viewed as traitors. Military opponents of de Herrera, supported by populist newspapers, considered Slidell's presence in Mexico City an insult. When de Herrera considered receiving Slidell to settle the problem of Texas annexation peacefully, he was accused of treason and deposed. After a more nationalistic government under General Mariano Paredes y Arrillaga came to power, it publicly reaffirmed Mexico's claim to Texas; Slidell, convinced that Mexico should be "chastised", returned to the U.S.