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Saturday, 13 October 2007

Toyota and Tech Advance

Posted on 12:14 by aryan
From the Green Car Advisor at Edmunds.com (hat tip: C-J)...

Toyota Motor Corp. has shown reporters in Japan a hydrogen fuel-cell vehicle that has more than twice the range of its present FC model -- thanks to more onboard fuel storage. The increase, to 484 miles from 205 miles came after Toyota engineers installed new, larger hydrogen fuel tanks...The new tanks hold fuel that's pumped in at a higher pressure —for more density—than before...The range would make Toyota’s fuel-cell vehicle competitive with most conventional gasoline vehicles in terms of range between fueling stops.

Fuel cells, which convert hydrogen and oxygen to electricity that can be used to power traction motors for electric cars, are being developed by most major automakers as they search for pollution-free alternatives to today’s petroleum-burning cars and trucks. While production of hydrogen consumes energy and creates emissions at the fuel-making stage, the only tailpipe emission from fuel-cell motor vehicles is a dribble of distilled water.

Lack of a hydrogen fueling infrastructure, however, is likely to hold back widespread use of fuel-cell vehicles one the technology is refined for mass produced cars and trucks.

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a very useful WSJ data-set on sub-prime/high-risk mortgages

Posted on 11:56 by aryan
A very cool data set from the same WSJ article-- in the form of an interactive map...

In each state, there are data for:
a.) the number of high-risk loans (not that interesting since it's not per capita or normed in some way to account for population)
b.) the percentage of high-risk loans-- the number of individuals impacted
c.) the dollar volume of high-risk loans-- the impact on the industry

Data are recorded by state and by metropolitan area within states.


Here's one other data map produced for the article...

[Map]






















Thanks to the WSJ for their impressive work on an important topic...
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it's much broader than you think: sub-prime/high-risk mortgages

Posted on 11:48 by aryan
Yesterday, I blogged on the numbers, some moral/ethical considerations, the racial angle and public policy possibilities.

Now, for more on the sub-prime mortgage problems, an excellent data-driven and investigative piece from Rick Brooks and Constance Mitchell Ford in Thursday's Wall Street Journal...

In a nutshell: it's a national thing-- from rural to urban, from poor to rich borrowers, from "homeowners" to investors, from small to large lenders.

As America's mortgage markets began unraveling this year, economists seeking explanations pointed to "subprime" mortgages issued to low-income, minority and urban borrowers. But an analysis of more than 130 million home loans made over the past decade reveals that risky mortgages were made in nearly every corner of the nation, from small towns in the middle of nowhere to inner cities to affluent suburbs.

The analysis of loan data by The Wall Street Journal indicates that from 2004 to 2006, when home prices peaked in many parts of the country, more than 2,500 banks, thrifts, credit unions and mortgage companies made a combined $1.5 trillion in high-interest-rate loans. Most subprime loans, which are extended to borrowers with sketchy credit or stretched finances, fall into this basket.

High-rate mortgages accounted for 29% of the total number of home loans originated last year, up from 16% in 2004. About 10.3 million high-rate loans were made in the past three years, out of a total of 43.6 million mortgages. High-rate lending jumped by an even larger percentage in 68 metropolitan areas, from Lewiston, Maine, to Ocala, Fla., to Tacoma, Wash.

To examine the surge in subprime lending, the Journal analyzed more than 250 million records on mortgage applications and originations filed by lenders under the federal Home Mortgage Disclosure Act. Subprime mortgages were initially aimed at lower-income consumers with spotty credit. But the data contradict the conventional wisdom that subprime borrowers are overwhelmingly low-income residents of inner cities. Although the concentration of high-rate loans is higher in poorer communities, the numbers show that high-rate lending also rose sharply in middle-class and wealthier communities.

Banks and other mortgage lenders have long charged higher rates to borrowers considered high-risk, either because of their credit histories or their small down payments. As home prices accelerated across the country over the past decade, more affluent families turned to high-rate loans to buy expensive homes they could not have qualified for under conventional lending standards. High-rate loans are those that carry interest rates of three percentage points or more over U.S. Treasurys of comparable durations.

The Journal's findings reveal that the subprime aftermath is hurting a far broader array of Americans than many realize, cutting across differences in income, race and geography. From investors hoping to strike it rich by speculating on condominiums to the working poor chasing the homeownership dream, subprime loans burrowed into the heart of the American financial system -- and now are bringing deepening woe.

The data also show that some of the worst excesses of the subprime binge continued well into 2006, suggesting that the pain could last through next year and beyond, especially if housing prices remain sluggish. Some borrowers may not run into trouble for years....

The data suggest that financial suffering is likely to persist in many parts of the U.S. where subprime lending had surged. Many loans at risk of going bad have not yet done so. As much as $600 billion of adjustable-rate subprime loans, for example, are due to adjust to higher rates by the end of 2008, which means that more and more borrowers are likely to fall behind....

Seven of the 10 large metro areas now struggling with the highest foreclosure rates -- including Miami, Detroit and Las Vegas -- saw borrowers barrel into high-rate loans much faster than the country as a whole....

There are some less gloomy signs, too. Last year, the number of new high-rate loans fell 2% to about four million, after jumping 88% in 2005. That reflects the collapse of some of the most aggressive lenders and tightening credit standards of others. Slowing home sales have put the brakes on loan demand, and borrowers have grown more wary of mortgages with teaser rates and other gimmicks....

Higher-income home buyers began using such loans for larger purchases. Among borrowers characterized in the data as white with annual income of at least $300,000, the number of high-rate loans jumped 74% last year, the numbers show. The average high-rate loan grew 10% to $158,000 last year, compared with a 1% rise in the average size of all home loans. The 2006 data include records from 8,886 lenders nationwide, which generate an estimated 80% of U.S. home mortgages....

Lenders also extended more "second-lien" mortgages -- many of them "piggyback" second loans that borrowers used to cover down payments. Such second-lien loans climbed to 22% of all mortgages last year, up from 12% in 2004. Piggybacks are considered far more likely to default than a standard mortgage....

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Friday, 12 October 2007

Joe Huber!

Posted on 10:45 by aryan
An interview with Joe Huber in today's C-J...

I mentioned Joe in my last posting on corn, farming, mazes and so on...
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sub-prime mortgages IV: policy possibilities going forward...

Posted on 10:25 by aryan
From Nick Timiraos of the Wall Street Journal…

Lawmakers face a difficult balancing act between protecting vulnerable homeowners and ensuring that individuals bear responsibility for taking mortgages that they couldn't afford. Some borrowers have defaulted on mortgages even before those loans reset to higher rates, while other foreclosures have hit speculators who bought properties primarily as investments.

To stem foreclosures, the White House has turned to the Federal Housing Administration, which doesn't originate loans but guarantees the loans of higher-risk borrowers against default. President Bush loosened some rules last month that could help 80,000 borrowers refinance mortgages next year. The House and a Senate committee approved legislation this past week that would further ease FHA underwriting standards.

Democrats want to allow Fannie Mae and Freddie Mac, the two government-sponsored mortgage brokers, to purchase mortgages above their current $417,000 loan limit. Demand for securities backed by larger, or jumbo, mortgages has dried up on Wall Street and that credit crunch risks placing further strain on the housing market in large U.S. cities. Federal regulators set those limits last year after the lenders disclosed accounting misstatements of $11.3 billion. The White House has opposed increasing loan limits until accounting overhauls are in place.

Uhh...Why is the federal government in the business of purchasing individual mortgages?!


From the WSJ’s op-ed page (September 22-23), it looks like politicians may try to ignore the disincentives and inequities of a bail-out...

This week the House of Representatives overwhelmingly approved a plan to erase billions of dollars of subprime loan defaults in the private mortgage industry. How? By making taxpayers responsible for future losses.

The Bush Administration recently announced support for a similar plan, and the housing industry is in full lobbying mode. One of the lone skeptics is Alabama Senator Richard Shelby, who warns that this could be one of the most expensive federal bailouts since the savings and loan crisis of the late 1980s. He's on to something….

No one wants to see borrowers lose their homes, and the good news is that private lenders are already working with late-payment borrowers to refinance the terms of these subprime loans. What's troubling about the FHA expansion plan is that the insurance guarantee places taxpayers atop the housing bubble….If housing prices keep falling, home owners would have a financial incentive to walk away from the loan and leave it to taxpayers to pay off the balance.


And finally, some soft-hearted and soft-headed counsel to pursue “tenderness” in this arena—from Tom Teepen (published as an op-ed in the C-J):

From the way President Bush's comments on the mortgage meltdown were pitched in advance, you would have thought his compassion had finally caught up with his conservatism…

Choose your own response to Tom's opening blast:
a.) HAHAHA! Stop it, Tom...your making me laugh milk through my nose!
b.) What a tender and compassionate thing for Tom to say.
c.) Mortgage meltdown? Is the entire housing sector falling apart?
d.) How compassionate is it to make money from people who are being responsible with their mortgages to subsidize those who are not?

[But] Bush did not...come to the rescue of the literally millions who may be within months of seeing their homes snatched away by jacked-up payments. Instead, the administration would make maybe 80,000 additional people eligible for FHA-backed loans and will ask Congress for legislation to make it easier for some shaky homeowners to renegotiate with their mortgage holders…Notice, please, how tardily, tentatively and minimally officialdom has come to the plight of workaday folks who are headed for dispossession.

In his much-awaited utterance on this mess, Bush scolded, "It is not the government's job to bail out speculators or those who made the decision to buy a home they could never afford."
Bill Clinton could feel your pain at 100 yards. Bush, too. The difference being this president thinks you had it coming…Sometimes a little humanity can be good business.


I hate to end these foour postings on such a lame note. But we must avoid the "analysis" of those like Teepen-- and wrestle with the policy earnestly as the WSJ does above.
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sub-prime mortgages III: the racial angle

Posted on 10:14 by aryan
And then, there’s the racial angle…

Thomas DiLorenzo at LewRockwell.com points to the blame that the federal government must shoulder in trying to manipulate the market along racial lines…

The thousands of mortgage defaults and foreclosures in the "subprime" housing market (i.e., mortgage holders with poor credit ratings) is the direct result of thirty years of government policy that has forced banks to make bad loans to un-creditworthy borrowers. The policy in question is the 1977 Community Reinvestment Act (CRA), which compels banks to make loans to low-income borrowers and in what the supporters of the Act call "communities of color" that they might not otherwise make based on purely economic criteria…

Banks have been placed in a Catch 22 situation by the CRA: If they comply, they know they will have to suffer from more loan defaults. If they don’t comply, they face financial penalties and, worse yet, their business plans for mergers, branch expansions, etc. can be blocked by CRA protesters, which can cost a large corporation like Bank of America billions of dollars. Like most businesses, they have largely buckled under and have surrendered to their bureaucratic masters.

Consequently, banks in every community in America have been forced to hold a portfolio of bad loans, euphemistically referred to as "subprime" loans. In order to compensate themselves for the added risk of extending these loans, many lenders have increased the lending fees associated with mortgage loans. This is simply an indirect way of doing what banks always do – and what they must do to remain solvent: charging effectively higher rates of interest on riskier loans.


from Bob Tedeschi with the New York Times (reproduced in the C-J)…

A lawsuit brought by the National Association for the Advancement of Colored People accuses 11 major mortgage lenders of singling out African-Americans for costly subprime loans…Since then, Ms. Ciccolo and Mr. Tighe said, three separate offices set up to field lending discrimination complaints have continued to receive “a significant number” of calls from African-Americans who said they had been given high-cost loans when they could have qualified for prime mortgages at lower rates.…many of those who held such mortgages were not aware that they could have taken out far less costly ones.

Does this open the door for people to go back on previous purchases-- when they could have found a lower price?! What is the responsibility of the seller in informing the consumer about their options?

The suit, filed in Federal District Court in Los Angeles, cites studies from three different organizations suggesting that blacks received high-cost subprime loans at least 30 percent more frequently than whites with similar qualifications. It contends that lenders, in doing so, “engaged in institutionalized, systematic racism,” in violation of the Equal Credit Opportunity Act, the Fair Housing Act and the Civil Rights Act…

"With similar qualifications"...that sounds nice, but to be something beyond conjecture and anecdote, it must be based on rigorous statistical analysis-- a rare thing. It also flies in the face of assumptions about greedy businesses. If they want to make so much money, why don't lenders jump in there and provide competitive services/prices to this niche in the market? Either they're not so interested in money or they're morons. It takes too much faith for me to believe either of those...
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sub-prime mortgages II: the moral/ethical angle (from a Christian perspective)

Posted on 10:05 by aryan
From Joel Belz at World on subprime mortgages as "sin"...

To say that the recent troubles of the U.S. market in home mortgages are the result of human sinfulness will strike some folks as overly moralistic, accusatory, and judgmental. But it is the case—on at least two fronts.

We're uncomfortable, of course, calling these things "sin."…But subprime mortgages, by definition, are loans written on behalf of borrowers who really can't afford them. That means that at least two forms of sin are occurring: First, someone is coveting a house that he shouldn't yet be thinking about buying; it's beyond his means. Second, someone who should be looking out for the weakness of his neighbor (the customer), and helping protect him against that weakness, is instead sucking him right into destructive behavior.

The first person is trifling with the Tenth Commandment. The second person is trifling with the whole Second Table of the Law—the commandments that Jesus summarized as teaching us to love our neighbor as much as we love ourselves.

And then broadening the application to society as a whole...

But before we start feeling too judgmental and superior toward the first sinner, the one trifling with the Tenth Commandment, we need to remember how much a picture of our whole society that person has become. We are a nation of coveters. We spend our whole lives trying to figure out how to have what God has not yet given us…

There are laws that hold such bartenders accountable. Right now, the main laws holding lending institutions accountable are the laws of the market, and they've exacted some pretty severe penalties in recent weeks as reminders that you can't play games with financial realities.

And oh, yes. There are also God's laws. Godliness, with contentment, is great gain. And even in your business dealings, treat your neighbor the way you want him to treat you. Anything less is subprime.



From Chuck Colson in his September 10th Break-Point on morality and markets (hat tip: Linda Christiansen):

More regulation may be necessary, but what's at the root of the current crisis is imprudence—on the part of borrowers and lenders—a sad reminder that in financial matters, like all the rest of life, there's no substitute for virtue.

The sub-prime market is for people who cannot qualify for conventional mortgages, many because of their credit histories, others because they want to borrow more than they can truly afford. So why would mortgage lenders make such risky loans?

Well, some years back, Wall Street came up with a clever way to increase profits. They could buy mortgages from banks, package them into what are called mortgage-based securities, and sell them to clients….

Once again we see worldviews really do matter. The worldview that says live for the moment, get whatever you can, always leads to disaster. The Christian worldview, on the other hand, teaches behaving responsibly, living within your means, and deferring gratification—all of which are requirements for sustaining personal prosperity and the free-market system.

Economist Michael Novak said it best: Free, democratic capitalism is like a three-legged stool, supported by economic freedom, political freedom, and moral restraint. Today's sub-prime mortgage crisis, which could threaten the American economy, shows what happens when you forget that third leg of the stool—moral restraint.
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sub-prime mortgages I: the numbers

Posted on 09:49 by aryan
Shock waves, yes. But the extent? A relatively small number when compared to total homeowners. Numbers from Lew Uhler of the National Tax Limitation Committee (hat tip: Chuck Muth): There are 75 million (residential) homeowners, 50 million have mortgages, 250,000 have mortgage problems—.5% of that group. (Many of those who lost were investors.)


On investors, from Nick Timiraos of the Wall Street Journal: Investment properties account for 11% of subprime defaults nationwide, and up to one-quarter in Nevada, California, Arizona and Florida, according to an August study by the Mortgage Bankers Association.


The regional/Kentuckiana angle from Gregory Hall with the C-J, illustrating that those in KY and IN are struggling more than average.

Court-ordered foreclosures in Jefferson County are on track for a second straight record high this year as a nationwide upheaval in the mortgage market forces people throughout the region out of their homes.

High-risk loans get much of the blame for the national increase, officials said, as homeowners approved for loans despite shaky credit struggle to pay their monthly bills.

The situation is the same throughout Kentucky and Indiana. The Mortgage Bankers Association said yesterday that Kentucky is tied for 11th and Indiana is third in a national ranking based on the percentage of loans going into foreclosure during the April-June quarter.

According to a figure from the article which I can copy over, foreclosures rose from 437 in 1996 to about 1000 in 2000 to an about 3000 per year since 2003.

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Econ 101: Profits, Not Unions, Save Jobs

Posted on 09:40 by aryan
Excerpts from Linda Chavez's essay on TownHall.com...

Workers at Chrysler's U.S. plants went back to work six hours after the United Auto Workers union struck the automaker this week. The once powerful UAW, which in its heyday had more than 1.5 million members, used to be able to bring Detroit to its knees. No more. Today the UAW claims only 640,000 active workers, and its major goal in negotiations with the big car companies is to keep that number from shrinking. But the battle ultimately may be a losing one -- and the union is largely to blame.

It costs Chrysler an average of $75.86 an hour to employ each worker, according to the Associated Press, which is the highest in the American auto industry...

Last year, GM lost $10.6 billion, while the Chrysler division of DaimlerChrysler -- the German company that owned Chrysler until it was sold recently to a private equity firm in the U.S. -- lost $1.5 billion. Companies that lose money can't continue to increase salaries and benefits, much less pay out billions in benefits to people who no longer work for the company. But unions rarely demonstrate an understanding of this basic economic fact.

Even harder for unions to grasp is that there is no such thing as job security. Sure, a company can foolishly promise never to lay off workers, but it can't keep its promise if it doesn't make a profit. And unless productivity rises -- which means producing more with fewer workers -- profits will decline...

Unions would be far better off abandoning their adversarial role and trying to become helpful partners with employers. It's in everyone's interest -- from the lowest-paid worker to the CEO -- that a company maximizes its profits.

But doing this would require unions to abandon outdated work rules, which prevent union members from doing jobs outside their specific category, working flexible schedules without demanding overtime or sitting on employer-employee committees except those sanctioned in collective bargaining. As a result, non-union companies often offer workers more individual choice...

The most constructive thing unions could do to help their current members is to ensure that those workers are more, not less, productive. But even a union's best efforts to hold onto its members' specific jobs won't stop capitalism's creative destruction engine. Some jobs in some industries will always be lost in order for other jobs to be created...

In the end, however, it will be the companies' profitability, not the union's efforts, that will keep good-paying jobs available for those workers.
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why payroll taxes for SS are such an important (economic justice) issue

Posted on 05:09 by aryan
Let me try another angle: If we're going to take $3,000 from a 25-year-old earning $25,000-- let's say a head-of-household (married or single) with one child-- it better be for some incredible reason.

In my mind, saying thanks and "we'll get that back to you in 40 years at a 1% rate of return" with Social Security does not qualify as a sufficiently good answer.

(We could also talk about Medicare and Indiana's income taxes on the working poor-- smaller but still significant issues.)
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Thursday, 11 October 2007

voter ID

Posted on 20:40 by aryan
Gary Varvel (from the Indy Star) makes a great point here about the trials and tribulations of showing a voter ID. (Hat tip: World.)

09272007.jpg
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oooh....more fun with corn!

Posted on 20:26 by aryan
I had blogged earlier about a corn-field ode to Gerald Ford--
"a strange tribute to a mediocre president".

Then, in the WSJ, Jane Garmey had a nice article on
the Ellsworth Hill (Farm) Maze.

Mr. Cockerline is a local farmer who began designing mazes eight years ago. He got interested when a friend of his described a corn maze he had recently visited. It struck him as an interesting idea, a chance to make a little money, and a good way to get children interested in the land. As a farmer, he knew the correct way to plant a corn field, so he got out pencil and paper and worked on a plan. Next, he came up with the idea of planting different crops within the maze and using them as "destinations" that provided the answers to a series of questions about the crops, the composition of the soil, and the contours of the land. A sheet with a list of 10 questions is given to each child or family group entering the maze. There's nothing dumbed down about these questions, and to answer them requires good observation skills. (For instance, do you know what a drumlin is?)

Mr. Cockerline estimates that to "do" the maze, reach all the crop destinations, and answer the questions takes most people about an hour. And do children ever get lost in the maze? "Well the only time that ever happened," he told me, was when "I had this grandfather come out of the maze and tell me he's lost his grandson. So I went into the maze to find him and soon enough the kid appeared. 'But I'm not lost,' he tells me. 'I just wanted to ditch my grandfather.' "

...In the past 20 years, corn mazes have become big business not only in this country but all across Europe. The generally acknowledged father of the maze movement is Adrian Fisher, an Englishman who for 20 years not only has created mazes but has turned them into a form of popular entertainment. His Web site (www.mazemaker.com) gives a huge list of his clients and provides details on some of his most fanciful designs -- from mazes in the shape of a sheriff's badge and a "royal" crown to the world's first double-decker bridge in a cornfield, set within the design of a Tyrannosaurus rex....

The other big man in the world of mazes is Brett Herbst. His first was done on his own farm, and in 1996 he set up a company to design mazes for clients. He works on computer and his Web site (www.cornfieldmaze.com) reveals that he has designed 1,200 mazes since then....

The overall concept of consumer-focused activities on the farm, which can range from pick-your-own-fruit to hay rides, petting zoos to pumpkin fests, is called agritourism, which, it seems, has become the latest gambit in small-farm survival tactics, and is now taught as a subject in many agricultural colleges. (Mr. Herbst is an agribusiness graduate from Brigham Young University.) Mr. Cockerline, who cheerfully admits he's small potatoes in the maze game -- 4,000 visitors represents good attendance for him -- wants no part of what he considers the blatant commercialization of most mazes and shook his head in horror when I told him that the questions in one farmer's maze were all about finding the names of films and film stars. Forget Johnny Depp and Captain Sparrow. For him, the maze experience is about getting kids to observe the stems of broom corn and having them understand how this plant has played a role in cleaning houses since time immemorial. And drumlins, of course.

By the way, a local icon, Joe Huber was one of the pioneers in the "field" of broadening the farming endeavor to become a consumer experience.

Isn't corn wonderful? It's good to eat; it can be a source for entertainment, a medium for artistic expression, and an inefficient fuel for vehicles! It's fantabulicious!
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run the good race...NOT!

Posted on 20:07 by aryan
Apparently, Roberto Madrazo is not good at running in political races or foot races. Madrazo was the losing candidate for President in Mexico last year. Then, on Sunday, September 30th, he was crowned the winner of the over-55 category at a marathon in Berlin-- before it was revealed that he did not complete the course.

From the A-P article by Jessica Bernstein-Wax in Wednesday's C-J...

After a humiliating defeat in Mexico's presidential election last year, Roberto Madrazo appeared to be back on top: He'd won the men's age-55 category in the Sept. 30 Berlin marathon with a surprising time of 2:41:12.

But Madrazo couldn't leave his reputation for shady dealings in the dust. Race officials said Monday they disqualified him for apparently taking a short cut - an electronic tracking chip indicates he skipped two checkpoints in the race and would have needed superhuman speed to achieve his win.

According to the chip, Madrazo took only 21 minutes to cover nine miles - faster than any human can run. "Not even the world record holder can go that fast," race director Mark Milde said.

In a photograph taken as he crossed the finish line, Madrazo wears an ear-to-ear grin and pumps his arms in the air. But he also wore a wind breaker, hat and long, skintight running pants - too much clothing, some said, for a person who had just run 26.2 miles in 60-degree weather...

Madrazo's reputation at home was already tarnished. In 1996, Mexico's attorney general confirmed reports that he had spent tens of millions of dollars more than the legal campaign spending limit in his winning 1994 bid for the Tabasco state governorship.

While under investigation on those charges, Madrazo told police he was kidnapped for seven hours, beaten and threatened with death by unidentified assailants. Police couldn't find evidence of any such abduction, and many saw it as a sympathy ploy.

During the 2006 presidential campaign, opponents plastered walls with posters reading, "Do you believe Madrazo? I don't either!"

In June, Madrazo completed the San Diego marathon with a time of 3:44:06 - more than an hour slower than his time in Berlin, Mexican newspaper Reforma reported. Madrazo's office did not return phone calls from The Associated Press.

Race director Milde noted that Madrazo may have intended to drop out and taken a shortcut to reach the start-finish area.

"I don't know if it was his intention or accidental: I try to believe in the good of people," Milde said. But the fact that Madrazo appears to be celebrating in the photograph could go against this theory, he added.

Then an update in today's C-J where Madrazo tries to explain his actions...

Madrazo...said yesterday he never intended to complete the race and went to the finish line simply to collect his belongings. Breaking a week of silence, he issued a statement in which he said the allegations of cheating were nothing more than political attacks meant to discredit his sporting career...

Madrazo said he stopped running after the 21st kilometer because of an injury and headed to the start/finish line to pick up his clothing and participatory medal. He said he never tried to fool anyone with his 2:41:12 clocking.

"My marathon times have been between 3 hours, 14 minutes and 3 hours, 54 minutes -- never 2 hours and 40 minutes," he said. "It would be impossible for a 55-year-old man to do that."

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Pelosi's prayers

Posted on 19:08 by aryan
A liberal letter-writer to the C-J blows up Pelosi on her failure to lead on Iraq...

So, House Speaker Nancy Pelosi is against the war tax so ingeniously proposed by Rep. David Obey. What a wonderful way to have Iraq war supporters lay their wallets on the line in an effort to literally put their money where their mouths are.

But alas, Pelosi is instead opting to "pray for Mr. Bush"...

It's also doubtful if Pelosi was elected by her California constituents to pray for our President rather than do something about his out-of-control actions. Perhaps next year's election will clarify this for Pelosi.

CHARLES M. CASPER; Louisville 40207

Boom! You wonder how much anger and disgust will be directed at Democrats for failing to take a firm stand on the War.
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C-J goes negative on Clarence Thomas again...

Posted on 17:57 by aryan
OK, the C-J is 2-0 on negative vs. positive commentary Clarence Thomas' autobiography.

First, Eugene Peterson from the Washington Post-- and now Frank Rich from the New York Times...

There's still time to turn things around, but it's not looking likely.

I suppose it's ok if the C-J's self-acclaimed balance and objectivity goes out the window when there's a black conservative at stake...
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principle vs. pragmatism: it's not yes/no, it's a spectrum

Posted on 17:47 by aryan
James Dobson, in an interview with Frank Pastore on his (very) public announcement that he would not vote for Guiliani-- or any pro-abortion candidate.

...So I wrote an op-ed in The New York Times saying why we would not do that—because you start with a moral principle. You have to make your decisions about who’s going to lead you not on the basis of pragmatics—not on the basis of who can win or who’s ahead in the polls or who has the most money or who’s the most popular. You begin by saying what are the irreducible minimums that I believe in, that I care about; what are the biblical values I cannot compromise.

I think, Frank, that many Christians have not thought it through yet and they look at Hillary Clinton and they’re scared to death of her (for very good reason, I am too) and they just say anybody’s better than that, let’s take the lesser of two evils. I cannot do that.

I know what he means. But to be more precise, he means that he's willing to compromise on some things and not others. He is willing to choose the lesser of two evils-- if the compromise is not "too much". (And what's "too much" to me or you may not be "too much" for James or Frank.)

In my case, would he have voted for me because I would not send taxpayer money to Planned Parenthood-- or for my pro-life Republican opponent who had done that twice, but was much more likely to win? I think he would have voted R rather than L. He would have gone for pragmatism over principle. Many Christians made the same choice. Such a choice is legitimate and respectable, but one cannot call it principle when pragmatism turns out to be the key determinant.
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cartoon on racial tensions

Posted on 17:43 by aryan
hyperbole, but some truth to it as well...
(hat tip: Susan Astroff)

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the Religious Right on sexual ethics and public policy

Posted on 08:18 by aryan
I'm cross-posting my comment from a discussion at Veritas Rex-- a blog run by a group of Christian social conservatives...

The VR discussion began with:

Thanks to the folks at Personal Democracy. I stumbled across a fascinating blog entitled, Revolution in Jesusland. It is written from the perspective of a secular progressive about a new movement within the Evangelical Church.

From there, the blog entry details research of some sort which purports to find damage to the Church (and presumably, the Kingdom) from the Religious Right's emphasis on homosexuality and "same-sex marriage". And here was my reply...

Thanks Kurt for posting this. A number of things on which we should be able to agree:

-Homosexuality is defined biblically as a sin. But if not confronted properly, this is a sin as well (E.g., the "preacher" from Kansas who goes to funerals for homosexuals with signs saying "God hates fags").

-Same-sex marriage is an oxymoron and incoherent in a biblical worldview. But again, handling the issue appropriately is required of us as well.

-What Christians should do with both topics-- with respect to government activism-- is another question. For example, just because something is sin, it doesn't mean that Christians should seek to use govt as a means to godly ends. Too often, that's the only motivation/rationale Christians bring to the political table.

-Too often, we've come across as if homosexuality is the entire or primary concern within a Christian sexual ethic. (Why not much more on divorce, adultery, pre-marital sex, etc.?)

-Too often, we've come across as if "same-sex marriage" and abortion are the only important things within a Christian social ethic.

-Too often, Christians have ignored vital issues of economic justice. Some of this is understandable since the layperson has to "pick his spots". But "justice" issues are where our biblical case for activism is the strongest-- and outside of abortion, we're largely silent.

-The Religious Left does not cause many black eyes for the faith (in the world's eyes) because 1.) they aren't as large; 2.) they're fighting for good things (with poverty-- biblically and in the world's eyes); and 3.) although their policy prescriptions are often unethical and impractical, people often fail to understand this.

And finally, where we might disagree:

-The Religious Right is prone to cause black eyes for the faith (in the world's eyes) because 1.) they are large/public; 2.) they're using govt to pursue a mixed bag of things (e.g., gambling)-- biblically, and certainly, in the world's eyes; and 3.) people often see their policy prescriptions as unethical (by their norms) and impractical.

Govt is a powerful but dangerous tool. Scripture warns of this. And people don't like being told what to do. So, we must take great care to invoke govt when it is most appropriate-- and to do so appropriately. Else, we risk unnecessary damage to God's Kingdom and we erect non-Cross barriers to those who might otherwise enter.

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Wednesday, 10 October 2007

the Unabomber, a member of ZZ-Top, or a biblical prophet?

Posted on 14:10 by aryan
Two reports-- one from MSNBC (including a very interesting video interview--as much for Matt Lauer's questions than A.J. Jacobs' answers) and an article in USA Today-- on one man's attempt to live out Bible precepts "literally". (Hat tips to Chris Snider and Linda Christiansen.)

From MSNBC:

For a full year, the Esquire magazine editor-at-large followed the mandates of the Bible as closely as possible and wrote it about it in a new book, The Year of Living Biblically: One Man's Humble Quest to Follow the Bible as Literally as Possible.

The MSNBC cite has an excerpt from the book's intro. There, A.J. Jacobs describes his (scary-to-some) facial hair before moving to his thesis:

But I mean no harm. The facial hair is simply the most noticeable physical manifestation of a spiritual journey I began a year ago.

My quest has been this: to live the ultimate biblical life. Or more precisely, to follow the Bible as literally as possible. To obey the Ten Commandments. To be fruitful and multiply. To love my neighbor. To tithe my income. But also to abide by the oft-neglected rules: to avoid wearing clothes made of mixed fibers. To stone adulterers. And, naturally, to leave the edges of my beard unshaven (Leviticus 19:27). I am trying to obey the entire Bible, without picking and choosing.

He then moves to a key sub-plot: what is biblical "literalism"?

[T]his project would be a way to explore the huge and fascinating topic of biblical literalism. Millions of Americans say they take the Bible literally. According to a 2005 Gallup poll, the number hovers near 33 percent; a 2004 Newsweek poll put it at 55 percent...

But my suspicion was that almost everyone's literalism consisted of picking and choosing. People plucked out the parts that fit their agenda, whether that agenda was to the right or left. Not me. I thought, with some naïveté, I would peel away the layers of interpretation and find the true Bible underneath. I would do this by being the ultimate fundamentalist. I'd be fearless. I would do exactly what the Bible said, and in so doing, I'd discover what's great and timeless in the Bible and what is outdated.

Yes and no. Certainly some of that happens. But at least three other principles are in play here. First, I've never met anyone who reads the Bible literally-- through and through. For example, Jesus is described as a lion and a lamb and it is said that the Lord has cattle on 1000 hills. Such references must be taken as metaphor, figurative language, etc. Although people can disagree over the extent to which the Bible should be read literally, the fact is that everyone does it.

Second, a claim to need to read literally is based on a flawed hermeneutic that ignores literary type. Prose is not poetry is not apocalyptic is not prophecy is not history is not narrative. Paraphrasing a scholar on the book of Revelation: reading John's Apocalypse like prose is akin to reading the phone book like a novel. (I understand that many Christians are wary of Scripture being diminished in terms of inspiration-- but this is unrelated to the incoherent claim that we should read the entire Bible literally.)

Third, Jacobs starts by interpreting the OT without benefit of the NT. Thus, he leaves behind the NT distinction between ceremonial law (which have been fulfilled in the ministry of Jesus), civil law (which related to the nation of Israel) and moral law (which is relevant for all time). Failure to observe this basic distinction leads to all sorts of misinterpretation out of ignorance (or shenanigans out of knowledge).

In any case, to the extent that his project was "biblical", it would be better to say that he tried to follow the Scriptures seriously or earnestly-- rather than literally.

From the USA Today interview, we get perhaps a better sense of his humor and the bigger-picture things he learned...

This [adventure] led him to:

•Wear white. "It was like always being dressed for the semifinals at Wimbledon or a P. Diddy party."

•Wear a robe and sandals. "Reactions varied from raised eyebrows, to people crossing to the other side of the street, to those who thought I was a tourist attraction and took pictures."

•Herd sheep. "It's very good for the ego. Sheep live up to stereotype — they're sheepish. It was a good entry-level job for patriarchs. First they were shepherds, and then they led people out of Israel."

•Eat crickets. "I chose to eat the chocolate-covered ones. They were crunchy."

The Manhattan-based Jacobs also went on field trips. He visited with Jehovah's Witnesses, Hasidic Jews, the Amish, Samaritans and evangelical Christians. Of these experiences, he says: "I learned to be more tolerant. Handling snakes doesn't seem as crazy when you're seeing it firsthand."

His biggest challenge? "That'd be no coveting, no lying, no gossiping. They're little sins, but they're killers. My year made me realize just how many of these sins I committed every day. And refraining from them for a year was really hard but completely transforming."

Biggest lesson? "Your behavior shapes your beliefs. If you act like a good person, you eventually become a better person. I wasn't allowed to gossip, so eventually I started to have fewer petty thoughts to gossip about. I had to help the less fortunate, so I started to become less self-absorbed. I am not Gandhi or Angelina Jolie, but I made some progress."

One rule he followed to the max: Be fruitful and multiply. During his year of living biblically, his wife, Julie, gave birth to twins, Zane and Lucas.

His next project? "I'm waiting for divine inspiration," Jacobs says.

I'd imagine that Jacobs' book would be an entertaining and insightful read. In any case, it's an interesting idea that wrestles with huge topics.

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unions only like it when...

Posted on 13:58 by aryan
...their competition is restricted-- rather than when they're being restricted!

Unions-- cartels in labor markets-- are fine, in and of themselves. But their self-serving use of government policy to restrict their competition in product and labor markets is quite troubling-- since it imposes significant costs on consumers and non-union workers. When the tables are turned-- even outside the legislative process-- they don't like it very much...

From Neal Boudette in today's WSJ, an article on the impending Greensburg, IN Honda plant-- and Honda's plans to restrict employment to a 20-county area which would largely exclude former union workers...

Honda's unusual hiring restriction highlights an often overlooked aspect of the United Auto Workers union's declining power. While Detroit's big auto makers and their unionized suppliers have been slashing jobs, wages and benefits, foreign car companies have added U.S. plants and created thousands of new automotive jobs. Yet they have effectively kept auto workers with UAW membership cards out of their factories, hampering the union from gaining any foothold where the jobs are.

Of the 33 auto, engine and transmission plants in the U.S. that are wholly owned by foreign companies, none have been organized by the UAW, despite repeated attempts. Mainly, foreign auto makers have located plants in Southern states where the UAW has little presence and where right-to-work laws limit union power. When they have ventured into Northern states such as Indiana and Ohio, they have mostly chosen rural locations far from any unionized plants and UAW halls. The moves now are helping the foreign-owned plants begin to lower wage scales...

Under the National Labor Relations Act, companies cannot discriminate against workers because of affiliation with a union. They are, however, allowed to restrict hiring to certain geographical areas if they have a legitimate business reason for doing so, a spokeswoman for the National Labor Relations Board said. UAW officials are gathering information in hopes of filing official complaints with the NLRB or possibly the Equal Employment Opportunity Commission.

Honda spokesman David Iida said the Greensburg hiring policy is not intended to prevent union members from applying. The auto maker just wants workers to live within an hour's drive of the plant so they can get to work on time even in bad weather, he said. The area does include a UAW-organized plant in Indianapolis and one organized by the International Union of Electrical Workers in Connersville, both of which closed and together idled about 1,500 people. Honda won't accept applicants from outside the hiring zone who would be willing to move into it, Mr. Iida said, because that could slow down Honda's "aggressive launch schedule" to start production in late 2008...

Indianapolis, about 50 miles northwest of Greensburg, is the only big city in Honda's hiring zone. It also is the only place in the hiring area where major UAW locals are located. The rest of the zone is predominantly rural and has few manufacturing workers. UAW members in Indianapolis are free to seek jobs in Greensburg, Mr. Iida says. Ms. Ward counters that despite some layoffs, most UAW members in Indianapolis are employed and don't need Honda jobs, unlike in Anderson. "We have a lot of people in Anderson who need jobs, but we can't apply," she says.
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Tuesday, 9 October 2007

two different views on Clarence Thomas

Posted on 14:46 by aryan
A respectful look from economist Thomas Sowell at TownHall.com and a far less sympathetic view from Eugene Robinson of the Washington Post as reprinted in the Sunday Forum section of the C-J.

I wonder if the C-J will print a favorable review of Thomas' auto-biography to balance Robinson's piece...
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Hillary Clinton and Sandy Berger?! puh-leaze!

Posted on 14:42 by aryan
From Bill Sammon at The (SF) Examiner...

Sandy Berger, who stole highly classified terrorism documents from the National Archives, destroyed them and lied to investigators, is now an adviser to presidential candidate Hillary Rodham Clinton.

Berger, who was fired from John Kerry’s presidential campaign when the scandal broke in 2004, has assumed a similar role in Clinton’s campaign, even though his security clearance has been suspended until September 2008. This is raising eyebrows even among Clinton’s admirers.

“It shows poor judgment and a lack of regard for Berger’s serious misdeeds,” said law professor Jonathan Adler of Case Western Reserve University, who nonetheless called Clinton “by far the most impressive candidate in the Democratic field.”

Adler told The Examiner that it is “simply incomprehensible to me that a serious contender for the presidency would rely upon him as a key foreign policy advisor.”
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Bush on Islam...puh-leaze!

Posted on 14:34 by aryan
The first third of Cal Thomas' essay on Bush's recent, heretical comments about Christianity vs. Islam...

Whatever else his critics say of him, no one can fault President Bush for failing to go the extra mile in his efforts to show that neither he, nor the United States, is opposed to the Islamic faith, or to Muslim nations.

Last week, the president and Mrs. Bush hosted their seventh Iftaar Dinner, the celebration that breaks the Muslim fast during Ramadan. Immediately after 9/11, the president visited a Washington, D.C., mosque and proclaimed Islam a "religion of peace." He has frequently said that terrorists are not real Muslims, anymore than people who proclaim to be Christian and engage in violence are genuine Christians.

The president is the most openly evangelical Christian and faithful churchgoer since Jimmy Carter. And the evangelical community has mostly embraced him and twice voted for him in overwhelming numbers. But that constituency is likely to be troubled over something the president said in an interview with Al Arabiya television. In an official transcript released by the White House, the president said, "Å I believe in an almighty God, and I believe that all the world, whether they be Muslim, Christian, or any other religion, prays to the same God." Later in the interview, the president repeated his statement: "I believe there is a universal God. I believe the God that the Muslim prays to is the same God that I pray to. After all, we all came from Abraham. I believe in that universality."

To paraphrase a remark often attributed to the late Sen. Daniel Patrick Moynihan, everyone is entitled to his or her own faith, but everyone is not entitled to define the central doctrines of that faith. The doctrines of what is called Christianity not only stand in stark contrast to Islam, they also teach something contrary to what the president says he believes.

It is one thing to try to reach out to moderate and sincerely peaceful Muslims. It is quite another to say the claims of your own faith are of no greater importance than the often contradictory claims of another faith. If we all worship the same God, the president should answer the call of Iranian President Mahmoud Ahmadinejad and Osama bin Laden, convert to Islam and no longer be a target of their wrath. What difference would it make if we all worship the same God?
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Schansberg welcomes Sodrel back to the race

Posted on 14:22 by aryan
On Tuesday, Dr. Eric Schansberg welcomed former Representative Mike Sodrel to the 2008 race for Indiana’s 9th District U.S. House seat. Sodrel joins Schansberg and Repesentative Hill for a second campaign together—after a close race in 2006. (Hill received 50.0% of the vote; Sodrel received 45.5%; and Schansberg received 4.5%.) Sodrel and Hill also battled in 2002 and 2004.

Schansberg said, “I’ll continue to raise important public policy issues and promote a useful discussion of those issues. As in the last campaign, I will run educational and entertaining ads. I hope Hill and Sodrel will do these things too.”

On the differences between himself and Sodrel, Schansberg said, “Although there’s still only one fiscal conservative in the race, Sodrel will compete with me for pro-life voters. Voters will now have two pro-life choices: a candidate who voted twice to take money from taxpayers to give to Planned Parenthood—and a candidate who would never do that.”
Contrasting himself with Hill, Schansberg said, “I look forward to engaging Hill as well. I hope that he’ll get much more aggressive in pushing to get our troops out of Iraq. And I hope that he’ll join me in addressing some issues of vital significance to the working poor and middle class—payroll taxes, Social Security reform, and significant education reform.”
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Saturday, 6 October 2007

Bingham on Bennett

Posted on 17:17 by aryan
My buddy/colleague Jon with some insightful comments on Bill Bennett's show on homeschooling!

Bennett praises Jon and then gives him a free watch! Awesome!
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comments on Hill's recent fund-raising letter

Posted on 10:29 by aryan
Comments on a fund-raising letter from Baron Hill, anticipating the entry of Mike Sodrel into the 2008 Congressional race (hat tip: Hoosier Pundit)...


It is looking more and more like they intend on running Mike Sodrel again.

An interesting choice to use the passive voice. Would he write this about himself: "It is looking more and more like they intend on running Baron Hill again."?


It's been reported that Mike will to make up his mind and make an announcement in early October. In addition, he was in Washington, DC last week, making the rounds with his old special interest buddies who financed his negative campaign the last time.

Special interests? Negative campaigns? Pot, have you met the kettle? Then again, Hill is probably still mad that Sodrel called him a Washington lobbyist the last time.


One thing is for sure, whoever they select will be well-funded, and they'll do what they always do - attack me relentlessly and unfairly.

Relentless? Yep. Unfairly? Quite a bit. What will Hill do to Sodrel? The same thing.


I need your generous support today to send them a message that we're ready, we'll fight back, and we'll continue to represent a progressive agenda in Congress.

Progressive? How so? Avid support followed by tepid opposition to the War in Iraq? Little helpful said or done about the primary issues that affect the working poor and middle class-- payroll taxes, Social Security and education? Support for various subsidies to corporations and the wealthy?


Hoosiers need a strong voice in Congress who will fight for their interests, not the special interests of Mike Sodrel and his Washington friends.

It sounds like Baron will be voting for me in the next election!


In Congress, I'm fighting for the issues you care about most: protecting Social Security, improving our schools, creating new jobs and ending our reliance on foreign oil.

-Protecting the 12.4% tax which results in an average 1% rate-of-return that is the primary or exclusive nest egg of the working poor.
-How are federal efforts going to improve local schools?
-How is Baron going to create new jobs?
-Baron's plans here result in subsidies to corporations and the wealthy-- and trust the government more than the market to find the newest, greatest innovations in the energy field.
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renters vs. owners?

Posted on 10:16 by aryan
From Lesley Stedman Weidenbener in yesterday's C-J, a story on polling results about property taxes...

A statewide poll has found that most Hoosiers don't want to pay higher income taxes, even if the money is used to reduce their property-tax bills.

About 44 percent of respondents to the poll paid for by the Indiana Chamber of Commerce said they oppose paying a local income tax to reduce property taxes, while 40 percent said they support the idea. Sixteen percent said they were uncertain...

At first, I thought this was another no-brainer: people don't like taxes--but enjoy some of the benefits of taxes. This would be the flip side of the politicians common approach to things: talk about the benefits but not the costs (as the recent KY gubernatorial candidates comments about the bridge).

Then, it occurred to me that this might be renters (who perceive that they would gain-- from transferring property tax burdens to other taxes) vs. owners (who perceive that they would lose). It'd be interesting to survey people based on their housing status...

Other findings:

Fifty-six percent said they believe the property-tax situation in Indiana to be a crisis, while 34 percent said it is an important issue but not a crisis. A combined 8 percent said it was a minor issue or no issue at all, and 2 percent were uncertain.

Thirty-eight percent said the Indiana General Assembly bears the most responsibility for developing a solution to high property taxes. Twenty percent of respondents said voters have the responsibility, 16 percent said the governor, 13 percent said local governments, 2 percent said schools, and 11 percent were either uncertain or had other answers.

So, most believe it's a crisis. Interesting...and a good sign if one wants some sort of (significant) reform to come out of this continuing problem.

And most people (now) blame the legislature. A previous survey blamed the governor (somehow) more than the legislature.
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ok, it's not silver, it's gold...

Posted on 08:18 by aryan
From the C-J editorialists in this morning's paper on what it titled "the 'growth through trauma' defense"...

The Bullitt County trial of the lawsuit brought by a young woman who was strip-searched and sexually assaulted at the McDonald's restaurant where she worked didn't provide uplifting glimpses into corporate management or human nature.

The C-J allows for NO personal responsibility with respect to Ms. Osburn's actions (or lack thereof). It should say "a young woman who allowed herself to be..."-- implying responsibility for her and the perpetrators.

Nonetheless, we found it easy to spot the lowest moment even in such tawdry proceedings. That was when a forensic psychologist hired by McDonald's Corp. testified that the employee, Louise Ogborn, has "grown in some ways" because of the ordeal.

Now, we understand why lawyers do what they do. In a case that involved a huge demand for damages (Ogborn sued for more than $200 million), part of their mission was to plant the idea that the lasting harm done to the plaintiff wasn't severe.

But we also understand that paid experts are recruited to say what their clients want them to, and this was stomach-turning. Yes, people are resilient and can demonstrate strength, even in the wake of humiliation, violence or tragedy.

That doesn't make the wrong done to them a silver lining.

Right, as I noted yesterday, it's a gold lining...

The C-J is wrong to imply that there cannot be silver linings to dark clouds. In fact, oftentimes, people will say they have some of their best and most important experiences in the midst of turmoil. But the C-J is correct in implying that the perpetrators and their defense attorneys should not be the ones pointing to personal growth as a part of their defense strategy.
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Kool-Aid, Indiana, trans-racial adoption, and basketball

Posted on 07:26 by aryan
Wow...

From Jon Fish and Chris Connelly at ESPN.com and leading into the network's "Outside the Lines" program tomorrow night (9:30AM, EDT; a significant portion of the program is available on the website as well)...And a hat tip to the C-J who reprinted a short USA Today article on this...

It is early February, and basketball has brought Rob Jones and his father, Jim Jones Jr., to senior night at San Francisco's Archbishop Riordan High School. Rob is the best high school basketball player in the Bay Area. He's 6-foot-6 and 230 pounds -- a forward with strength and quickness.

"His 'Wow!' factor is rebounding and positioning down low," says his coach, Rich Forslund. "He dominates at the high school level down there. Virtually anybody he plays, he gives them grief."

And this night is no exception: Rob racks up 30 points and 17 rebounds.

"It was his time, it was his moment," his father says with pride. "He made sure everybody knew it."

Rob's success holds special meaning for his father. Years ago, he also had a basketball team, a team he loved and will never forget.

"I wouldn't be talking to you if it wasn't for basketball," Jim Jones Jr. says. "It spared my life."

The words are not an empty cliché. They are true. Basketball kept this family alive, and now Rob and basketball are helping restore honor to the family name.

Why? Because the name "Jones" can be found in the history books and in news coverage from 29 years ago, linked to an infamous place called Jonestown. There, in November 1978, more than 900 men, women and children died in a mass suicide orchestrated by the Rev. Jim Jones, founder and leader of Jonestown -- and the grandfather of Rob Jones...

That history began after stops in Indiana and rural Northern California, when the Rev. Jones landed in San Francisco. [Jones was born in Crete or Lynn, IN and attended high school in nearby Richmond, before earning his bachelor's at Butler and going to grad school at IU in Bloomington.] There, in the mid-1970s, he used social activism, radicalized rhetoric and elements of that old-time religion, like purported acts of faith healing, to whip the multicultural congregation of Peoples Temple into a fervor. He was undeniably charismatic, and manipulative.

"My father was a master of finding what was most important to you [and] finding a way to make you believe he was giving it to you," says Stephan Jones, 48, the biological son of the Rev. Jones. "I know that's how I was worked."

The Rev. Jones became a political force in San Francisco politics. Yet when questions were raised about abuses within Peoples Temple, he moved his flock to South America and created a would-be utopia -- Jonestown -- in the jungles of Guyana, which neighbors Venezuela.

"I believed. I believed we could change the world," says Jim Jr., 47, who was the first African-American child in Indiana state history to be adopted by a white couple: the Rev. Jim and Marceline Jones.

But when the Rev. Jones arrived in Guyana for good in August 1977, some who already were there felt the magnetism that had created Peoples Temple was devolving into paranoia and madness.

"When Dad got down there," Stephan says, "work immediately went from being a means of production to a means of control … the atmosphere was immediately oppressive."

Jonestown was accessible only by boat or plane, a big change for people like Johnny Cobb who were accustomed to San Francisco.

"You know, you don't have the fast-food places to go to," says Cobb. "You don't have this corner store to go to. No television. … Within two months you find yourself reading more books. Start doing other things. Playing sports again."

So a basketball hoop was erected in the encampment, built on a platform floor in a place originally intended to be a storehouse. For the young men who played there, the game became a kind of organized defiance against the Rev. Jones...

A Guyanese government official offered them a chance to compete in a tournament against the region's national teams in the capital city of Georgetown, a two-hour plane ride away. The Rev. Jones agreed to let the team go, seizing a chance to get some good publicity for Peoples Temple...

On Nov. 7, 1978, one day after the team arrived in Georgetown, there was news from California. Then-U.S. Rep. Leo J. Ryan Jr. (D-Calif.) announced he would travel to Jonestown with former Peoples Temples members who had left the camp. He intended to investigate accounts of followers being held against their will and reports of suicide drills.

Stephan imagined what that news meant: "It was ugly when the congressman was coming and … it couldn't be a good thing to bring the U.S. government and the press and defectors down at the same time -- the three things my father hated most."

Ryan arrived in Guyana on Nov. 15. That day, at Peoples Temple headquarters in Georgetown, the Rev. Jones' voice came over the ham radio. He demanded that the players return to Jonestown immediately. But they refused...

"We played the Guyanese the first day and honestly we got blown out by 30," says Jim Jr.

The teams played another tournament game two days later and lost by 10 points. That same night, Ryan had arrived in Jonestown, and Peoples Temple threw a party in the area known as the pavilion. There was music and singing, and Ryan addressed the crowd.

"I think you know that I'm here to find out more about questions that have been raised about your operation here," Ryan said. "But I can tell you right now that from the few conversations with folks here already this evening, that whatever the comments are, there are some people here who believe this is the best thing that ever happened to them in their whole life."

The pavilion erupted into joyful delirium. Wild cheering and applause filled the space. Scores of young faces -- men and women of every color, adults and children -- beamed. Less than 24 hours later, nearly everyone in the room would be dead.

The next day, Nov. 18, Ryan invited anyone who wanted to leave Jonestown with him to do so. More than a dozen followed. At the pavilion, there were scenes of rage and anguish. Families could be seen splitting apart on the spot amid bitter recriminations.

Ryan and his delegation left Jonestown. They were driven six miles to a dirt landing strip. As they were about to board their planes, a tractor pulled up alongside the landing strip and members of the Peoples Temple got out, aimed their rifles and opened fire.

Five people died, among them Ryan and NBC cameraman Bob Brown, whose camera was still rolling when he was shot and killed. Some of the victims were shot at point-blank range. An apocalypse had been set into motion...

The hours that followed were a blur of frantic movement and increasing desperation all over the capital city as members of the basketball team pleaded with authorities to get to Jonestown immediately...

At Jonestown, a vat of cyanide-laced Flavor Aid was being prepared. Mothers were instructed to bring their children forward first. The last audiotape from Jonestown, recorded by Peoples Temple members, captured the unimaginable horror, as the Rev. Jones beckoned his followers to the grave...

When it was over, more than 900 people were dead. The Rev. Jones was dead from a gunshot. The players on the basketball team had lost everyone they loved. Jim Jr. had lost his parents, his wife and their unborn child...

Jim Jr. returned to San Francisco, eventually married again, had three boys and put his life back together. But he avoided the game he had always enjoyed, until his eldest son brought it back.

"It wasn't until Robert showed an interest that I started coaching him," says Jim Jr. "And I've developed a love for it again."

"I thank God every day," says Rob, now a freshman forward at the University of San Diego. "I'm a real lucky man just to have a father and that he's there supporting me in whatever I do, no matter what."

"When I first saw the article, 'Jones leads Riordan to the top,' I just paused initially," says Jim Jr. "Our family name in the paper -- Jones leading anybody -- was leading them to not a very positive outcome. It just gave me a swell of pride that here's a Jones leading an organization or a program in a very positive direction."

Says Rob: "I'm proud just to do what I do and give the family a good name. That's probably been one of the greater feelings I've had in my life."

"I was known in basketball gyms as the son of the infamous Jim Jones," Jim Jr. says. "Now I'm known as the father of Rob Jones. That's a good feeling."

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Fletcher & Beshear's courageous stand...NOT!

Posted on 07:05 by aryan
From the front page of yesterday's C-J, Marcus Green reports on the position of the gubernatorial candidates on transportation issues, especially the Louisville bridge projects.

Incumbent Gov. Ernie Fletcher and challenger Steve Beshear both say the project is important to Louisville and the state...[But] both oppose raising Kentucky's gasoline tax to help pay for building and maintaining the state's roads and bridges. They also are against tolls as a potential method of financing the Ohio River bridges project...

So, they're for the benefits but against the costs. Thanks guys! In the next article, we'll probably read about how they support "sunshine on a cloudy day".

On top of that, the C-J's front section editor let them both off the hook by titling the article "Candidates favor bridges" with a much smaller sub-title on their opposition to tolls and gas taxes to pay for it.

"I have worked hard to eliminate tolls in Kentucky, and am committed to do everything I can to fund those bridges without tolls," Fletcher said...

So Fletcher is also proud of eliminating user fees for roads, preferring the money to come from the general treasury instead. Why is it preferable to take money from average taxpayers from across the state-- rather than those who will benefit from the bridge?

Beshear also said he's against tolls, yet acknowledged that the size and cost of the Louisville bridges venture and other "megaprojects" -- roads or bridges that typically cost at least $1 billion -- will require innovative approaches.

"We must bring state government, the federal government and the Jefferson County community together to look at our options and find an answer which will work," Beshear said. He did not elaborate.

"Innovative approaches". Blah, blah, blah. Bring the state, federal, and local community together to look at options. Blah, blah, blah. He didn't elaborate? No kidding...

It's a good thing that we don't rely on effective government for very much...
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David (McCarty) vs. Goliath

Posted on 06:24 by aryan
Well...except Goliath is mostly a good guy too-- and he's the one putting rocks in the air-- and David got beat in this case by the government.

From yesterday's (Louisville) Courier-Journal, Charlie White and Sara Cunningham report on the stand-off between homeowner David McCarty and the local Wal-Mart under construction in Lebanon, KY.

Complying with a court order, a Central Kentucky man yesterday ended his sit-down protest a few feet from a blasting site -- part of the construction of a Wal-Mart development adjacent to his property. As dusk approached, David McCarty took refuge in his house just outside Lebanon before workers set off the dynamite near his back fence.

On Wednesday, weary from months of the nearby construction work and angry over what he said was damage to his property, McCarty had been determined to keep Wal-Mart from detonating the dynamite to make way for a water line...

The explosions occurred about 5 p.m., ending an exhausting couple of days for the family, whose members say they dealt with daily noise, dust and debris for about four months before deciding to take action...

The police couldn't intervene in the stand-off because neither side is breaking the law, said Shelton Young, chief of the Lebanon Police Department.

"There was no legal basis for us to make him go in or stop (construction workers) from detonating," Young said. "The homeowner was just as cordial and courteous as could be to the officers and to the Wal-Mart construction people. The workers weren't aggressive either. We stayed for a couple hours to make sure everyone was keeping friendly and then we left."...

The McCartys, who have lived at 2040 Campbellsville Road just outside the Lebanon city limits for 10 years, are now surrounded on all sides by the development.

"They are literally on an island in a sea of construction," Spainhour said of his clients. "You can't stand in his yard without getting covered in dust."...

McCarty said he is eager to sell his property. "I want out of here," he said in an interview late Wednesday night...he gave a quote for the land to Wal-Mart officials, but would not specify the amount. He acknowledged that the quote was more than the property is worth.

"It may not be worth it right now, but when the new Wal-Mart is up and running, it will be worth every penny," he said.

Beyond an interesting story, economists would point to the "externalities" involved here. This is a case where one party causes damage-- and benefit-- to another party. Wal-Mart is damaging McCarty by lowering the value of his property in the short-term (e.g., he can't sit in his back yard when they set off the dynamite) and helping him by enhancing the value of his property in the long-term (his land is worth much after a Wal-Mart is next door).

But in addition to Wal-Mart's impact on McCarty, the latter can mess with the former-- whether by sitting in his lawn chair or by demanding an artificially high price for his land (or going inside his house while they blow things up). Once Wal-Mart bought the property next to McCarty, he gained tremendous bargaining power over the company and the control of its land!

At least in theory, all of this could have been handled privately. I suspect that WalMart and McCarty could have reached a contractual agreement that was mutually beneficial. When that didn't/couldn't happen, the matter must be settled by some aspect of government. The police (as enforcement officers of the State) had no jurisdiction since no laws were being broken. So, it was left to a judge's interpretation.

How hard did David and Goliath work to avoid the stand-off? It's not reported. But in this case, a market solution was available before people started throwing stones.
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Howey updates solutions to property tax woes

Posted on 06:13 by aryan
This week, Brian Howey updates potential solutions to the property tax fiasco...

On the timing and the sense of Daniels' general plan...

INDIANAPOLIS - Two property tax proposals - by the Indiana Farm Bureau and Indiana Association of Realtors - were floated late last month. But the real drama will come later this month. That's when Gov. Mitch Daniels will weigh in, selecting one of several plans now before him. Several observers I've has talked with believe that the governor and a rather complex plan Sen. Luke Kenley is currently floating will likely meld together. Look for circuit-breakers, a shift to sales and/or income taxes, and moving assessing duties from townships to counties as almost certain hallmarks of any such plan. One source suggested that an income tax increase is giving the governor heartburn. He is said to desire a simplified system...

Lt. Gov. Becky Skillman told the Columbus Republic, "I expect the 2008 session to be consumed by the property tax debate. The governor will have a proposal on the table. It should be announced within the next 30 days or so. He talks regularly with the legislative leaders to try to reach some consensus on a long-term plan."...

The October unveiling is critical to give legislators time to react with their constituents to any plan prior to November's legislative Organization Day...

On the connection to local government and government spending in general...

At Valparaiso University, Gov. Daniels told students there he is thinking about seeking spending caps in the Indiana Constitution. A long-term approach would include the local government reorganization that is being researched by the Kernan-Shepard Commission. Gov. Daniels has said repeatedly that property tax and government reform are inextricably linked...

According to estimates by the Legislative Services Agency, net property taxes in Indiana grew between 2006 and 2007 by about $800 million - an increase of more than 14 percent. This is nearly six times the current inflation rate of 2.36 percent. In contrast, the previous two years saw a combined increase of $470 million...

Howey's conclusion...

Any legislator who thinks maintaining the status quo or applying another bandage will run the risk of ... unemployment. Having said that, any new system is likely to have a little castor oil for everyone. My advice: pay attention, keep an open mind, take in as much information as you can, resist making this a Republican vs. Democrat issue, and don't leap to conclusions.


I'm not usually optimistic about the ability of the general public to overcome bad policy through their elected governments. But this event has a key catalyst for significant change: an existing policy that substantially irritates a lot of people, especially when it's been going on for a long time. But there is reason to think that we'll end up with something less: the complexity of the topic, the continuing activity of narrow special interests (e.g., farmers), and the existence of broad special interests (renters vs. homeowners).
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Friday, 5 October 2007

drinking age: 18 vs. 21

Posted on 17:08 by aryan
On ethical grounds, the choice of drinking age is largely arbitrary. The matter, then, should rest on practical grounds and the data...

Again, a hat tip to Jacob Sullum in this month's Reason...

The primary argument for 18 (vs. 21) is saving lives. A recent NBER's study by Harvard's Jeffrey Miron and Yale's Elina Tetelbaum find little improvement in the statistics, resulting from the changes in the laws. (This is much easier to study since states passed laws about this over a period of years.)

M&T find a 8% drop in fatalities for 18-20 year olds. And interestingly, most of the drop was in states that voluntarily reduced their drinking ages-- before the federal government started to twist the arms of the remaining states, by threatening to withhold federal funding for roads. (As an aside, this is further evidence of federalism's effectiveness. States that "needed" to do this the most, had already done so.)

Of course, auto fatalities have decreased quite a bit since the late 1960s-- despite higher speed limits re-introduced in the 1990s. Almost all of these gains can be credited to technological advance in auto safety and medical care.

One other interesting finding: a lower drinking age has led to a modest increase (3-4%) in drinking and "heavy drinking".


And then, on a related matter, from one of the lead articles in this month's Reason, David Harsanyi has an article on the same topic which is based on his recent book, Nanny State: How Food Fascists, Teetotaling Do-Gooders, Priggish Moralists, and other Boneheaded Bureaucrats are Turning America into a Nation of Children. (What a long but entertaining title!)

Harsanyi cites a study by Donald Freeman in Contemporary Economic Policy on the negligible effects of dropping Blood/Alcohol Content (BAC) standards from .10% to .08%. Whether the states adopted the new standard on their own or were coerced into it by the Federal government, "there's no evidence that lowering the BAC limits...reduced fatality ates, either in total or in crashes likely to be alcohol-related."

According to Harsanyi, in 1982, 60% of traffic-related fatalities were related to alcohol and this number fell steadily until 1997 when it reached about 40% (and has stayed steady since). He credits the work of MADD and others efforts to educate the public and stigmatize drunk driving. But the new, tighter restrictions were of no evident, practical use.
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