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European Salon de News, Discussion et Klatsch - 29 September

by Fran Sun Sep 28th, 2008 at 01:51:25 PM EST

On this date in history:

1547 - Birth of Miguel de Cervantes, a Spanish novelist, poet, and playwright. His magnum opus, Don Quixote, considered the first modern novel by some and regularly figures among the best novels ever written.(d. 1616)

More here and here


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by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:51:58 PM EST
Projections: Ruling CSU Party Loses Majority in Bavarian Election | Germany | Deutsche Welle | 28.09.2008
Bavaria's ruling CSU party is heading for heavy losses in Sunday's state elections that will likely end the party's decades-long rule without a coalition partner in the state, according to early projections.

Projections showed the conservative Christian Social Union (CSU), sister party of German Chancellor Angela Merkel's Christian Democrats (CDU), polling around 43 percent of the vote in its worst showing in half a century. The CSU has held an absolute majority in Bavaria since 1962 and won 60.7 percent of the vote in the last state election in 2004.

 

The Social Democrats (SPD), which governs in a grand coalition with the CDU in Berlin, polled around 19 percent, roughly the same as in the last state election in 2003.

 

Among the smaller parties, the conservative Free Voters entered the state parliament in Munich for the first time with 10 percent and the liberal Free Democrats (FPD) were back after an absence of 14 years with 8.5 percent.

by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:53:30 PM EST
[ Parent ]
by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:53:53 PM EST
[ Parent ]
Projections: Austrian Social Dems Victors Despite Far-Right Gains | Europe | Deutsche Welle | 28.09.2008
Austria's Social Democrats are likely to emerge as the biggest party after early elections despite significant gains by parties on the far-right, according to early projections. Forming a government won't be easy.

According to the first projections published by Austrian news agency APA after polling stations closed at 5 p.m. local time on Sunday, the Social Democratic Party of Austria (SPOe) got 28.6 percent of the vote and will remain the largest party in parliament.

 

The conservative Austrian People's Party (OeVP) will get 25.2 percent -- the worst result in the party's history.

 

Two far-right parties, however, were the big winners in the election. The the far-right Freedom Party (FPOe) is expected to get 18.2 percent, with the Alliance for the Future of Austria (BZOe) expected to win 11.8 percent.

by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:54:10 PM EST
[ Parent ]
by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:54:27 PM EST
[ Parent ]
Polls Peaceful in Belarus as Opposition Fears Fixing | Europe | Deutsche Welle | 28.09.2008
Parliamentary elections in Belarus were passing off peacefully Sunday. But the opposition has expressed fears that the polls would be fixed by the Belarusian leadership.

By midday, one-third of the country's 7 million eligible voters had cast their ballots, Elections Supervisor Lidiya Yermoshina was quoted by Interfax news agency as saying from the capital Minsk.

 

Former presidential candidate Alexander Kozulin said he doubted that any opposition candidates would make it into the parliament.

 

Bildunterschrift: Großansicht des Bildes mit der Bildunterschrift:  Alexander Kozulin

"A few supposed opposition politicians will be successful, which will be sold to the European community as a great achievement, but they will only be candidates who suit the powers that be," Kozulin said as he cast his vote.

by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:54:46 PM EST
[ Parent ]
Belarus vote count details could impact EU ties -EUobserver

EUOBSERVER / BRUSSELS - With less than 24 hours to go before polls open on Sunday (28 September), OSCE monitors still don't know if they will be allowed to closely watch the vote count. But an EU decision to relax sanctions may be taken on strategic instead of technical grounds in any case.

In past elections, OSCE observers had to sit about five metres away from tables where the actual vote count takes place. If they stood up or tried to walk across the room, they risked being charged with "interference" in the electoral process under Belarus law.

Lukashenko dancing at an independence day party in July. The 54-year old has forbidden media to picture him from behind, showing his bald patch

"There are media reports the head of the central electoral commission said we will have 'full access.' But we'll have to wait and see what our observers say on the day. We still don't have assurances that we will have meaningful access to the vote count," the OSCE mission spokesperson told EUobserver from Minsk on Saturday.

There has been little progress in democratic standards in the run-up to the election. Opposition candidates have had scant access to media. Some activists have been beaten up or intimidated. A protest to commemorate the regime's "disappeared persons" was violently broken up. Early voting by students, soldiers and government officials - which is notoriously easy to fiddle - has been ongoing since 23 September.

by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:56:59 PM EST
[ Parent ]
No Opposition Member Elected in Belarus, Officials Say | Europe | Deutsche Welle | 29.09.2008
No opposition member won a seat in Belarus parliamentary elections, the country's election commission said as protestors slammed the outcome as a "farce."

Commission head Lidia Yermoshina said the opposition still scared off voters, the official Belapan agency said Monday, Sept. 29. 

"The fear of mass demonstrations and the disapproval of radical changes which could have happened if the opposition was elected, led to these results," Yermoshina said.

Opponents of the regime had previously complained of manipulation of the polls. Despite bans on rallies several hundred opposition members gathered in the city center of Minsk to protest against the alleged fraud, holding up banners decrying the election as a farce.

by Fran (fran at eurotrib dot com) on Mon Sep 29th, 2008 at 02:47:47 AM EST
[ Parent ]
British banks reportedly seek bailout - International Herald Tribune

LONDON: British banks are proposing that the government help bail them out of losses from the credit crunch so they can resume lending, according to four people with knowledge of the discussions, but Prime Minister Gordon Brown suggested Friday that he would not go along.

Brown, who was in Washington for a meeting with President George W. Bush, told the British Broadcasting Corp. television that the best way of dealing with the British aspect of the global financial crisis was to increase liquidity.

"The American plan is designed for a large number of banks and institutions across America," Brown told the BBC. "We have a smaller banking system."

The four people with knowledge of the discussions declined to be identified because the negotiations are confidential. They said industry executives had held talks during the week about different options, including the establishment of a bank, run by the government, that would take over low-value assets including mortgage-backed securities that declined in value with the collapse of the U.S. subprime home-loan market.

by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:57:57 PM EST
[ Parent ]
Shock waves for Georgian economy - International Herald Tribune

TBILISI, Georgia: During the recent war between Georgia and Russia, Russian soldiers broke into a tower housing Georgia's largest Internet provider and blew up its transmission equipment with hand grenades, shutting down television, phone and digital access for two million people across the country.

More than a month later, the company, Caucasus Online, is still struggling with the war's economic fallout. Having restored Internet access to his clients at what he says was a cost of $50 million, the company's managing director, Mamia Sanadiradze, said he now risked defaulting on plans to build a giant telecommunications network stretching from Georgia to Western Europe.

The project was supposed to be completed by October, but has been set back because American engineers hired to install an underwater cable are said to be too worried about the security risk to return to Georgia and go back into the field. Sanadiradze estimates he will lose $1 million for every month the project is delayed.

"The Russians are still stationed on Georgian territory and at any time they can paralyze our communications network or blow up the railway and nobody can stop them," he said. "As long as the Russians are here, it will be impossible to restore business confidence in Georgia that we spent years trying to build up."

by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:58:50 PM EST
[ Parent ]
Hague ready to hold Europe referendum - Times Online
The former Tory leader tells us why the party could loosen Britain's ties with Brussels

A NEW Conservative government could still hold a referendum on Europe, even if the Lisbon treaty had already been fully ratified, should the party win power.

William Hague, the shadow foreign secretary, is considering a special national ballot to help to give him the authority to renegotiate Britain's relationship with Europe.

In a wide-ranging interview with The Sunday Times, Hague said: "The integration of Europe will have gone too far. We won't let matters rest."

A referendum would be popular with the Tories' Eurosceptic MPs and grassroots activists who believe that the European Union reform treaty undermines Britain's national sovereignty. But it would be resisted by some of David Cameron's strategists, who would fear that a prolonged debate on the minutiae of EU procedures would be a turn-off to voters.

[Murdoch Alert]
by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:59:09 PM EST
[ Parent ]
If there was a referendum, the same f..w..ts who plagued Ireland would ensure we voted no as well. I hope brussels has a plan for UK citizens who want to remain part of europe cos otherwise I'm just gonna squat.

Hague is a little englander twerp. I dislike the tories, and think they'll be even worse for the UK than Brown, but if the eurosceptics have theire way we'll really be screwed.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Mon Sep 29th, 2008 at 10:05:10 AM EST
[ Parent ]
I'm starting to wonder whether I should apply for Italian citizenship (I think I qualify by now), in case the U.K. gets serious about withdrawing.
by gk (g k quattro due due sette "at" gmail.com) on Mon Sep 29th, 2008 at 05:38:21 PM EST
[ Parent ]
CIA `backed' Irish battle against Brussels treaty - Times Online

FIRST it was the sheer ingratitude of the Irish, then it was the failure of the Dublin government to mount a successful yes campaign. Now Brussels has found a new explanation as to why Ireland voted down the European Union treaty in June - a CIA and Pentagon-backed plot, devised by American neoconservatives to weaken the EU.

The European parliament wants an inquiry into whether Declan Ganley, the multi-millionaire chairman of the Libertas group that campaigned against the treaty, could be in the pockets of US defence and intelligence services.

The calls have been led by Daniel Cohn-Bendit, the firebrand 1968 student leader turned Green MEP, who pointed to Irish press reports that "revealed there possibly exists a link between the financiers of the no campaign in Ireland and the Pentagon as well as the CIA.

"If proved true, this would clearly show there are forces in the US willing to pay people to destabilise a strong and autonomous Europe", he said.

[Murdoch Alert]
by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:59:26 PM EST
[ Parent ]
This topic doesn't seem to go away. Maybe there is more to it, then just rumors.
by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:59:59 PM EST
[ Parent ]
I hav as a reserve currency. Anything and everything must be done to undermine european integration.e little doubt, politically and economically we are the biggest threat to US hegemony. The euro is a direct threat to the dollar

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Mon Sep 29th, 2008 at 10:06:57 AM EST
[ Parent ]
To Smother Chechen Insurgency, A Campaign of House Burning - NYTimes.com
SHALI, Russia -- The men who set fire to Valentina Basargina's house arrived in the stillness of 3 a.m. There were three of them. Each wore a camouflage uniform and carried a rifle. One held a can of gasoline. They wore masks.

They led Ms. Basargina and her son outside and splashed gasoline in their two rooms, she and her relatives said. One man produced a T-shirt, knotted onto a stick. It was damp with gas.

"This is for the one who is gone," he said in thickly accented Russian. Ms. Basargina's nephew had recently disappeared; the police had said he joined the small but smoldering insurgency fighting for Chechnya's independence from Russia.

The man lit the torch and tossed it inside. The air whooshed. Flames shot through the house.

The attack, late last month, was part of what Chechens described as an intensified government effort to stamp out the remnants of a war that has continued, at varying levels of ferocity, for nearly 15 years.

In a campaign to punish families with sons suspected of supporting the insurgency, at least a dozen homes have been set ablaze since midsummer, residents and a local human rights organization said.



The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt ät gmail dotcom) on Mon Sep 29th, 2008 at 04:06:36 AM EST
[ Parent ]
WORLD
by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:52:17 PM EST
Revealed: secret Taliban peace bid | World news | The Observer
Saudis are sponsoring a peace dialogue involving a former senior member of the hardline group

The Taliban have been engaged in secret talks about ending the conflict in Afghanistan in a wide-ranging 'peace process' sponsored by Saudi Arabia and supported by Britain, The Observer can reveal.

The unprecedented negotiations involve a senior former member of the hardline Islamist movement travelling between Kabul, the bases of the Taliban senior leadership in Pakistan, Saudi Arabia and European capitals. Britain has provided logistic and diplomatic support for the talks - despite official statements that negotiations can be held only with Taliban who are ready to renounce, or have renounced, violence.

Sources in Afghanistan confirmed the controversial talks, though they said that in recent weeks they had 'lost momentum'. According to Afghan government officials in Kabul, the intensity of the fighting this summer has been one factor. Another is the inconsistency of the Taliban's demands.

by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:55:01 PM EST
[ Parent ]
Obama and McCain walk the tightrope - and back $700 billion bail-out - Times Online

Barack Obama and John McCain reluctantly backed the $700 billion rescue plan today, as they were forced into a political balancing act between supporting a deal they both realise is critical to the US economy but deeply unpopular with voters.

The presidential candidates, fresh from their first televised debate on Friday night, appeared on the Sunday talk shows to try and claim some credit for the taxpayer protections inserted into the deal, but also to send a populist message that if elected they will end the days of Wall Street greed.

"My inclination would be to vote for it understanding I am not happy about it," Mr Obama told CBS's Face The Nation. The reaction in the US heartland, just 39 days before the election, was largely hostile to what is seen as a taxpayer-funded Wall Street bailout.

Earlier, in a statement, the Democrat conceded that "failure to deal with the current crisis would have devastating consequences for our economy." He called the breakthrough on Capitol Hill "the culmination of a sorry period in our history," because of the "reckless greed of Wall Street". He called for long-term protections for American taxpayers.

[Murdoch Alert]
by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:55:33 PM EST
[ Parent ]
Bob's got the text of the bailout bill up over at Economic Populist.

I've scanned through part of it, but it looks like the WSJ is right that the main component of the bill is going to be the purchase of upside bad mortgages from the companies.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Sun Sep 28th, 2008 at 06:16:32 PM EST
[ Parent ]
US steps up Pakistan raids to thwart al-Qaeda 'October surprise' plot - Telegraph
US secret forces are intensifying their cross-border raids into Pakistani tribal areas because of fears of a high-profile al-Qaeda attack during the American election campaign, The Sunday Telegraph has learned.

The Pentagon has ordered that raids on suspected terrorist targets within Pakistan be stepped up to pressurise al-Qaeda leaders and distract them from preparing attacks on American targets elsewhere.

"The aim is to disrupt their scope for planning and keep their leaders on the move so that it is more difficult for them to co-ordinate complicated plots," a senior US intelligence official told The Sunday Telegraph.

The operations launched from neighbouring Afghanistan have led to sharply increased tensions with Pakistan's armed forces since President George W.Bush recently authorised assaults involving "boots on the ground" without prior approval by Pakistan's government, a supposed US ally.

by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 02:01:26 PM EST
[ Parent ]
...since President George W.Bush recently authorised assaults involving "boots on the ground" without prior approval by Pakistan's government, a supposed US ally.

But the October surprise is Al Qaeda's, heh?

Europeans think a hundred miles is a long way. Americans think a hundred years is a long time.
by Bernard on Sun Sep 28th, 2008 at 05:13:35 PM EST
[ Parent ]
Al Jazeera English - CENTRAL/S. ASIA - Pakistan faces financial crisis

International efforts are under way to stop Pakistan from defaulting on its debts after its foreign reserves dropped to just $3bn.

With about $1bn a month needed to provide its people with basic requirements there are fears that Pakistan could run out of money before the end of the year.

Saquib Sherani, the economic adviser to Yusuf Reza Gilani, Pakistan's prime minister, said on Sunday that the country urgently needed about $7bn to bridge the expected financing gap for the year.

"Its large and we need it quite fast ... the reserves are down to covering one month of imports," he told Al Jazeera.

by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 02:02:05 PM EST
[ Parent ]
Al Jazeera English - Middle East - US 'deploys' radar system in Israel

The US has deployed an anti-missile radar in Israel that is mainly to warn of incoming Iranian ballistic missiles, Israeli state radio reports.

The radar with a range of more than 2,000km is sited in the south of the country, the radio station said on Sunday.

It is operated by a permanent 120-strong US army staff.

The Associated Press news agency quoted officials as saying that the new radar was flown into Israel last week along with some 120 American crew members and has been set up at the Nevatim air base in the Negev desert.

The system can pick up a ballistic missile shortly after launch. That will cut the response time of Israel's Arrow system, designed to intercept incoming missiles.

The officials spoke on condition of anonymity because the radar's arrival has not been officially made public. It was first reported in Defence News.

by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 02:02:24 PM EST
[ Parent ]
CNN, Sep 28
Sen. John McCain retracted Sarah Palin's stance on Pakistan Sunday morning, after the Alaska governor appeared to back Sen. Barack Obama's support for unilateral strikes inside Pakistan against terrorists

"She would not...she understands and has stated repeatedly that we're not going to do anything except in America's national security interest," McCain told ABC's George Stephanopoulos of Palin. "In all due respect, people going around and... sticking a microphone while conversations are being held, and then all of a sudden that's--that's a person's position... This is a free country, but I don't think most Americans think that that's a definitve policy statement made by Governor Palin."

by gk (g k quattro due due sette "at" gmail.com) on Sun Sep 28th, 2008 at 02:32:13 PM EST
[ Parent ]
FT.com: Wachovia makes approaches to buyers as shares plunge by 27% (September 27 2008)
Wachovia approached potential buyers including Citigroup, Wells Fargo and Spain's Banco Santander yesterday after a 27 per cent plunge in its shares deepened fears over the future of the sixth-largest bank in the US.

The move came after JPMorgan Chase's takeover of most of Washington Mutual, the collapsed lender that became the US's biggest bank failure on Thursday, and did little to soothe investor worries over future casualties of the financial crisis.

People close to the situation said that after seeing its shares slumping throughout the day, Wachovia executives, led by its chief executive Robert Steel, contacted Citi, Wells and Santander - three of the defeated bidders for WaMu. Canada's Toronto Dominion was also interested in WaMu and may take a look at Wachovia, they added. The banks declined to comment.



A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Sun Sep 28th, 2008 at 04:04:34 PM EST
[ Parent ]
The Guardian:
Wachovia's shares fall 60 pct on assets concerns
(September 29 2008)
Shares of Wachovia Corp sank 60 percent in early electronic trading on Monday on concerns about its huge portfolio of illiquid assets and no deal has yet to emerge after sources said it was in talks with Citigroup Inc and Wells Fargo & Co to be taken over.

The New York Times reported that Citigroup and Wells Fargo were unlikely to bid more than a few dollars a share for the sixth-largest U.S. bank by assets.

It is unclear whether Wachovia would be sold in its entirety or be broken up, or how much Wachovia bondholders might lose in any transaction, the newspaper reported.

Wachovia's shares fell 60 percent to $4.

This might be old news already.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Mon Sep 29th, 2008 at 08:38:33 AM EST
[ Parent ]
Now down to $1.40 per share.

Damn, should've gotten my money out.  This is gonna be a pain in the ass.

Be nice to America. Or we'll bring democracy to your country.

by Drew J Jones (pedobear@pennstatefootball.com) on Mon Sep 29th, 2008 at 08:40:38 AM EST
[ Parent ]
Breaking news on CNBC said that Citigroup is buying "banking operations". The FDIC made the announcement, indicating that they are involved.
And instead of giving $700bn to the FDC, Congress just decided to give them to Paulson to buy Big Shitpile from Goldman.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Mon Sep 29th, 2008 at 08:42:14 AM EST
[ Parent ]
Well, it's not as though they wouldn't give $700bn to the FDIC if they had to.

Be nice to America. Or we'll bring democracy to your country.
by Drew J Jones (pedobear@pennstatefootball.com) on Mon Sep 29th, 2008 at 08:44:46 AM EST
[ Parent ]
[Drew's WHEEEEE™ Technology]

Be nice to America. Or we'll bring democracy to your country.
by Drew J Jones (pedobear@pennstatefootball.com) on Mon Sep 29th, 2008 at 08:45:24 AM EST
[ Parent ]
"Emergency Economic Stablization Act of 2008" is on. (no bill number yet at thomas.gov -- I guess the clerk does not work weekends.)

Links to pdf docs at Calculated Risk. I think the house.gov server blew up though. They are dead, as in "document has no data," "server cannot be found," to my machine.

Diversity is the key to economic and political evolution.

by Cat on Sun Sep 28th, 2008 at 06:32:14 PM EST
[ Parent ]
Bob's got a link to a copy over at Economic Populist.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg
by ManfromMiddletown (manfrommiddletown at lycos dot com) on Sun Sep 28th, 2008 at 06:37:05 PM EST
[ Parent ]
Thanks. I'll check it out. LOL ;)

BobbyFlav writes:
I cannot open the PDF.
Anyone else?
Using Mac Preview, version: latest.
Trying to avoid that memory hog from Adobe.
BobbyFlav | 09.28.08 - 4:20 pm | #


Diversity is the key to economic and political evolution.
by Cat on Sun Sep 28th, 2008 at 06:40:48 PM EST
[ Parent ]
Liv writes:
Does that PDF work for others? I am just getting errors on my Mac.
Liv | 09.28.08 - 4:24 pm | #

bwahahahaha ... transparency ... bwahahaha ...

Diversity is the key to economic and political evolution.

by Cat on Sun Sep 28th, 2008 at 06:51:32 PM EST
[ Parent ]
probert writes:
Liv, I am on XP using foxit reader. This is the first time ever that I get a file that is only compatible with Adobe...wow...this government....I tell you...!!
probert | 09.28.08 - 4:26 pm | #


Diversity is the key to economic and political evolution.
by Cat on Sun Sep 28th, 2008 at 06:55:24 PM EST
[ Parent ]
I cannot believe it...

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Sun Sep 28th, 2008 at 06:56:10 PM EST
[ Parent ]
VISTAAAAAAAAAAAAAAAAAAAAAAAA

Diversity is the key to economic and political evolution.
by Cat on Sun Sep 28th, 2008 at 07:03:34 PM EST
[ Parent ]
Anonymous writes:
Many carve outs to warrants and exec pay. This isnt much different than the orginal 3 page plan. Bottom line, Hank Paulson will become the most powerful person in the world. He's proven he's incapable of handling the duties of Treasury Sec so this should be wonderful....
Buy as much Goldman stock as you can.
This plan was designed by GS execs and Buffett for GS execs and Buffett. Dont fight city hall unless you have a lot of money then you can buy city hall.
Anonymous | 09.28.08 - 4:27 pm | #

But it is 106pp.

o.k. Last one. I'm done.

Diversity is the key to economic and political evolution.

by Cat on Sun Sep 28th, 2008 at 06:58:56 PM EST
[ Parent ]
Excellent dood named Requiem posted a clean pdf. I put it here, too, for safe keeping.

Diversity is the key to economic and political evolution.
by Cat on Sun Sep 28th, 2008 at 07:42:48 PM EST
[ Parent ]
Thanks for providing the clean PDF.

MarketTrustee:

Many carve outs to warrants and exec pay.

Although Jerome and BruceMcF explain warrants to some degree, and while common sense says a bird in the hand is worth two in the bush, can you explain in more detail (and in as plain language as possible) how this bill weakens the warrants clause and why warrants in general are significantly worse than outright stock?

(This goes to Cyrille, too.)

Truth unfolds in time through a communal process.

by marco (cowannar at gmail punkt com) on Mon Sep 29th, 2008 at 02:55:13 AM EST
[ Parent ]
I have not read the pdf so I will only answer your question in general terms.

In general, when there is a need for recapitalisation, those who bring the new capital will get a level of ownership in the company. ie, stock.

A stock is a stake in the company. You get that in exchange of bringing money to the company.

Now, a warrant is essentially a bet. What it says is that you get the right to purchase a stock at a set price. If the stock trades lower than that, it's pretty much useless. If the stock trades higher than the set price, it is pretty much worth (at expiry date) the difference between the set price and the trading price.
So that's worth a lot less than a stock, which once again is what you would NORMALLY get for recapitalising.

If the bailout is not enough to save a bank from bankruptcy (it WILL happen to some), stocks will eventually be worth zero and warrants too so it will make little difference in price, but stocks would mean oversight in the meantime and less likelihood of bankruptcy.

If the bailout turns the bank into an absolute money spinner, warrants will be worth the difference between the two prices (I don't see the Government actually exercising them). That would be OK if the trading price becomes hugely higher than set price, but you don't have to worry about that because it won't happen.

The third case is that the bank becomes solvent, even profitable, but not hugely so (at least before the expiry date of the warrant). That is what will happen to all banks not going under.
Specifically, if they are not profitable enough for them to trade higher than the set price, the warrant will be worth ZERO. So the State would have provided money, with Republicans claiming that when all's set and done the State will make money, that would make a private company profitable, and get NOTHING for it.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi

by Cyrille (cyrillev domain yahoo.fr) on Mon Sep 29th, 2008 at 06:20:03 AM EST
[ Parent ]
Wow.  Seems to me if this were widely understood, you would have even more public resistance to this bill.

Thanks very much for this very helpful explanation.

Truth unfolds in time through a communal process.

by marco (cowannar at gmail punkt com) on Mon Sep 29th, 2008 at 07:23:50 AM EST
[ Parent ]
A warrant is a right to purchase equity at a pre-agreed price and a pre-agreed time (or subject to pre-agreed conditions)

is the definition with which I agree. A warrant is a class of provision. Deferred compensation such as "options" awarded the employee of a firm is a type of warrant; this class is distinct from "options" traded in the open market.

A provision is one or more conditions of a contract, enjoining sale of a particular class of equity or a bond security. A warrant is one possible condition. Another is plenary right(s) (e.g. "proxy fights"). Another is par value per share. Another is convertibility between instruments. Another are gates, loan loss, calls etc; that is restrictions on the exercisable rights of a contract's parties. A sale is a contract. The property rights of common shareholders with respect to priority, regardless of class, are inferior and subordinate in priority to those of preferred and trust preferred shareholders. For example:

FDIC underwriting Citi - Wachovia Bank M&A | 29 Sep 2008
Wachovia Corporation [bank ->financial holding corp.] will continue to own AG Edwards and Evergreen. The FDIC has entered into a loss sharing arrangement on a pre-identified pool of loans. Under the agreement, Citigroup Inc. will absorb up to $42 billion of losses on a $312 billion pool of loans. The FDIC will absorb losses beyond that. Citigroup has granted the FDIC $12 billion in preferred stock and warrants to compensate the FDIC for bearing this risk.

$12B is (1) cash ((312-42)+12=$282 FDIC credit facility limit) and (2) the current value of X number of preferred stock, bearing immediate $X borrower payments ($282 - $Xb). The preferred stock ("troubled asset") is collateral for the credit facility provided by FDIC. Apart from payments, FDIC has not published provisions restricting exercise of their shares. Neither has WB (Wachovia) has not filed an 8-K describing share class(es) of warrant(s).

In practice: Provisions are foremost legal mechanisms  to differentiate or secure preference among obligators (e.g. US Treasury, whether shareholder or creditor) and enforce rights in the event the issuer seeks bankruptcy protection including liquidation. Provisions by share class differentiate the absolute priority of obligators viz. the universe of a firm's unsecured and secured creditors. NB - the ambiguity of property rights in the investopedia citation above.

Saying all that, the "Who?Me?" Bailout bill ought to specify all acceptable securities (corporate "troubled assets" available for sale, corporate equities, and corporate debt) by capital risked in order to assure capital recovery in the event of counterparty default --in other words, "protecting the interest of taxpayers by maximizing over all returns and minimizing the impact to the national debt." (§101 Program Guidelines, §103 Pricing Mechanisms, §113 Conditions on Purchase Authority for Warrants [corporate equity] and Debt Instruments [corporate bonds])

In practice: §113 specifies provisions that somewhate circumscribe Treasury's discretion in securities selection and ultimately capital structure of the many US "trust" vehicles to capture income. Generally, it prohibits any "troubled asset" or senior debt instrument purchase from publicly traded corporations absent

(1)"a warrant giving the right to the Secretary to receive non-voting common stock or preferred stock" and EXERCISE PRICE of the warrant
(2) or in the event of issuer's delisting a CONVERSION PROVISION of common stock to senior debt in sufficient amount and interest rate to compensate insufficiency of shareholder vote to authorize additional shares
(3) or ANTI-DILUTION PROVISION of common stock;
(4) or "reasonable participation ...in equity appreciation" or "a reasonable interest rate premium" or "additional protection" [e.g. ABS INSURANCE, §102; MUTUAL FUND INSURANCE or PURCHASE §103(8); §109 FORECLOSURE MITIGATION which is righteous but writes off RMBS value] "against losses from sale of assets"  

Exceptions to these limitatations are contracts with a financial institution of consolidated assets less than $500M or cumulative "troubled asset" transaction less than $100M.

::

Over all, the bill proposes a number of provisions that assure conflict of interest in warrants and in operations scope that undermine recovery of capital risked.


Diversity is the key to economic and political evolution.

by Cat on Mon Sep 29th, 2008 at 02:12:56 PM EST
[ Parent ]
The wording is apparently this:


CRITERIA.--The standards required under 9 this subsection shall include:

(A) limits on compensation that exclude incentives for executive officers of a financial institution to take unnecessary and excessive risks that threaten the value of the financial institution during the period that the Secretary holds an equity or debt position in the financial institution;

Exclude incentives that threaten value? That shouldn't be too hard...

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Mon Sep 29th, 2008 at 03:46:04 AM EST
[ Parent ]
LOL. There's like 3 more pages attempting to describe what is a CEO, what is a C-class employee, what is a C-class employer (where domiciled vs where market), TARP qualifying employers, TARP qualifying compensation, applicable period of review, etc.

The idea is stupid beyond belief.

Much simpler to exclude TARP participants (cap TARP qualifieds below a certain FY 2007 level of exec com, say USD 500K) let losers eat their employment contracts while they tank in order for BODs to learn basic fiduciary lesson.

Diversity is the key to economic and political evolution.

by Cat on Mon Sep 29th, 2008 at 02:36:46 PM EST
[ Parent ]
Bailout Plan in Hand, House Braces for Tough Vote - NYTimes.com
The agreement on a bailout plan was greeted with subdued optimism in early Asian trading on Monday. But shares sank by late Monday morning on renewed worries about the credit crisis, with a decision by HSBC to raise lending rates by 0.5 percent in Hong Kong triggering a drop of 2 percent in the Hang Seng Index in Hong Kong and 0.9 percent in the Kospi Index in Seoul.


The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt ät gmail dotcom) on Mon Sep 29th, 2008 at 04:10:32 AM EST
[ Parent ]
News Analysis - Bailout Is Only One Step on a Long Road - News Analysis - NYTimes.com

The bailout effort, economists say, underlines the pivotal role of the financial industry in the economy and the need for proportionate regulation.

When the Internet dot-com bubble burst at the start of the decade, investors suffered, employment dropped, companies went out of business and America slipped into a brief recession. But there were no calls, or need, for government rescue plans for the technology industry.

"Finance is so central and peculiar, so essential, and yet it carries a death threat for the economy," said Jagdish Bhagwati, a professor of economics at Columbia. "What we've seen, once again, is that finance is a very powerful instrument, but one that needs to be intensively watched."



Truth unfolds in time through a communal process.
by marco (cowannar at gmail punkt com) on Mon Sep 29th, 2008 at 04:21:27 AM EST
[ Parent ]
goes off on "rightwing liars", "ideological kool-aid drinkers", "corrupt toads", and does a pretty good impression of Barney "You big, fat toad" Frank:



Truth unfolds in time through a communal process.

by marco (cowannar at gmail punkt com) on Mon Sep 29th, 2008 at 05:31:43 AM EST
[ Parent ]
Doubt Arises in Account of an Attack in China - NYTimes.com

... fresh accounts told to The New York Times by three foreign tourists who happened to be in the area challenge central parts of the official Chinese version of the events of Aug. 4 in Kashgar, a former Silk Road post in the western desert. One tourist took 27 photographs. <...>

One or two men dressed in green uniforms took out machetes and began hacking away at one or two other men dressed in the same type of uniforms on the ground.

"A lot of confusion came when two gentlemen, it looked like they were military officers -- they were wearing military uniforms, too -- and it looked like they were hitting other military people on the ground with machetes," the friend said.

"That instantly confused us," he said. "All three of us were wondering: `Why are they hitting other military people?' " <...>

The machete attack lasted a minute or two, the tourists said. One uniformed man then handed his machete to another uniformed man who had a machete, the friend said. One of the photographs shows a man walking around clutching two machetes in one hand. Another photograph shows a uniformed man carrying a rifle with a bayonet, a rare weapon in China.

Other officers were trying to disperse civilian onlookers, the tourists said.

Audio slide show of tourists' pictures

Truth unfolds in time through a communal process.

by marco (cowannar at gmail punkt com) on Mon Sep 29th, 2008 at 05:20:16 AM EST
[ Parent ]
How Democrats set Sarah Palin up to 'win' Thursday's VP debate | Top of the Ticket | Los Angeles Times

The upcoming downside for the Obama-Biden campaign is that its supporters became so flustered over Palin's surprisingly explosive popularity coming out of the GOP convention. They have so successfully mocked, derided and lowered expectations for Palin in Thursday night's VP debate that if she doesn't drool or speak in tongues, many millions still open to persuasion will be impressed.

Al Gore's campaign made the exact same mistake going into the 2000 debates. So all Texas Gov. George W. Bush had to do was not lose.

In that sense Democrats may have played right into a PR cul-de-sac. Biden, for instance, described Palin as merely better-looking than him. A far better communications strategy would have been to insincerely portray Palin with superlatives as a superwoman, make it harder, not easy, for her to impress. Too late now.



Truth unfolds in time through a communal process.
by marco (cowannar at gmail punkt com) on Mon Sep 29th, 2008 at 08:35:35 AM EST
[ Parent ]
To be fair, I think any Democrat spin operation would have foundered on the rocks of the Couric interview...
by Metatone (metatone [a|t] gmail (dot) com) on Mon Sep 29th, 2008 at 09:43:18 AM EST
[ Parent ]
Citigroup to buy Wachovia banking operations

5:34 AM PDT, September 29, 2008  LA Times

NEW YORK -- The government says Citigroup will acquire the banking operations of Wachovia in a deal facilitated by the Federal Deposit Insurance Corp.

The FDIC says Wachovia didn't fail, and that all depositors are protected and there will be no cost to the Deposit Insurance Fund.

The sale of Wachovia Corp. comes just days after the government's seizure of Seattle-based Washington Mutual Inc. -- the largest bank failure in U.S. history.

Wachovia has been among the banks hardest hit by the ongoing crisis in the mortgage market. Its current problems stem largely from its acquisition of mortgage lender Golden West Financial Corp. in 2006 for roughly $25 billion at the height of the nation's housing boom. With that purchase, Wachovia inherited a deteriorating $122 billion portfolio of Pick-A-Payment loans, Golden West's specialty, which let borrowers skip some payments.



As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Sep 29th, 2008 at 08:50:30 AM EST
[ Parent ]
NYT: Citigroup Buys Banking Operations of Wachovia
The F.D.I.C. said that the agency would absorb losses from Wachovia above $42 billion and that it would receive $12 billion in preferred stock and warrants from Citigroup in return for assuming that risk.

"Wachovia did not fail," the F.D.I.C. said, "rather it is to be acquired by Citigroup Inc. on an open-bank basis with assistance from the F.D.I.C."

Under the deal, Citigroup will acquire most of Wachovia's assets and liabilities, including $400 billion in deposits and will assume senior and subordinated debt of Wachovia, the F.D.I.C. said. Wachovia Corporation will continue to own the retail brokerage firm AG Edwards and the money management arm Evergreen.

Wachovia did not fail because the FDIC absorbed $30bn in losses and $12 in Citigroup warrants and preferred stock.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Mon Sep 29th, 2008 at 10:11:25 AM EST
[ Parent ]
"...assistance from the F.D.I.C." that has not yet been marked to market?  Perhaps "New Rules" for accounting included in the pending legislation will prevent them from having to mark to market until they have no usable assets.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Sep 29th, 2008 at 10:36:33 AM EST
[ Parent ]
Now, I am wondering about this...

If the FDIC can absorb $42M of losses and get $12M of warrants from Citi, it means the FDIC already has the ability to trade toxic waste for warrants. So why does Congress need to give Paulson that power (and $700bn to exercise it) rather than giving the FDIC $700bn?

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith

by Migeru (migeru at eurotrib dot com) on Mon Sep 29th, 2008 at 10:45:00 AM EST
[ Parent ]
Sorta what I was wondering.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Sep 29th, 2008 at 12:29:27 PM EST
[ Parent ]
Should I do a short DKos/Booman diary?

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Mon Sep 29th, 2008 at 02:09:47 PM EST
[ Parent ]
Obama's brain trust
By Janet Raloff,  Science News
Web edition : Friday, September 26th, 2008

As I noted last week, advisers to the presidential candidates have been fairly mum about which scientists, medical leaders and engineers have signed on to advise and/or support Sens. John McCain and Barack Obama.

It's something Albert H. Teich also noted when I contacted this director of Science & Policy Programs at the American Association for the Advancement of Science several weeks back. Observed Teich in August, "You don't have any really identifiable science people associated with McCain's campaign, whereas there are quite a few people on the Obama side." Indeed, he said, "You could say that there is a brain trust of scientists" linked to the Democratic candidate.

Yesterday, Obama's campaign released "an open letter   to the American people" signed by 61 Nobel laureates. All received their award for achievements in physics (22), chemistry (14) or medicine (25). (My bold)

In their letter, they argue that during the past eight years, "vital parts of our country's scientific enterprise have been damaged by stagnant or declining federal support. The government's scientific advisory process has been distorted by political considerations."

What! Not Economics? Are they saying something?

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Sep 29th, 2008 at 09:13:17 AM EST
[ Parent ]
There is no Nobel prize in Economics, despite the Chicago propaganda.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi
by Cyrille (cyrillev domain yahoo.fr) on Mon Sep 29th, 2008 at 02:19:24 PM EST
[ Parent ]
Russian, South Korean leaders agree on gas, rail links
[ 17:33 ] The presidents of Russia and South Korea agreed on Monday to work on a range of joint projects, including a pipeline to pump Russian gas via North Korea, and the linking of the Russian and Korean rail networks.

World  29/09/2008 15:56
Russia, India to develop new BrahMos cruise missile
Russia and India will jointly develop a new BrahMos-2 hypersonic cruise missile, the head of the BrahMos company said on Monday.
 

http://en.rian.ru/
Looks like they are not isolated...

by vbo on Mon Sep 29th, 2008 at 10:03:21 AM EST
[ Parent ]
THIS, THAT, AND THE OTHER
by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:52:43 PM EST
Italian TV to broadcast Bible reading - International Herald Tribune

ROME: It may have taken God a week to create the world, but it will take nearly as long to read the Bible from beginning to end in what is being described as the longest live television broadcast in Italian history.

On Sunday, Pope Benedict XVI will read the opening verses of the Book of Genesis. The nonstop Bible recital will end 139 hours later when Cardinal Tarcisio Bertone, the Vatican secretary of state, tackles the final verses from the Apocalypse in the Book of Revelation.

In between, about 1,250 readers from many walks of life and religious faiths will take turns until every word in the 73 books that make up the Roman Catholic Bible has been uttered (mostly in Italian but also with some ancient Greek and Hebrew). The first and the last hour of the Bible-a-thon will be broadcast live on the main channel of RAI, the state broadcaster; the rest will be shown on RAI's satellite education channel.

"Please don't call it a marathon - it's more of a nonstop relay," said Giuseppe De Carli, the chief of the RAI division that covers the Vatican and the organizer of the event, which will be held during six days at the Basilica of Santa Croce in Gerusalemme in Rome. "It's not a race, after all, but a reflection on God's way."

by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:57:40 PM EST
[ Parent ]
Europe's public broadcasters alarm commercial rivals - International Herald Tribune

PARIS: On ZDF Dokukanal, a public television channel in Germany, the evening entertainment last Tuesday began with "Illusion of Freedom: How Neurology Is Turning Our Worldview Upside Down." That was followed by a documentary on child poverty.

The channel is no ratings-grabber. So ZDF, one of two main publicly financed television companies in Germany, wants to revamp Dokukanal, a digital channel that was started eight years ago. It intends to replace documentaries and other factual fare with "family entertainment," including soap operas, to attract a broader audience.

"This is the only way for us, in a digital world, to fulfill our communications mission and reach younger people again with our public service content," said Markus Schächter, director general of ZDF, in a statement on the broadcaster's plans.

Commercial rivals of ZDF are crying foul, saying they already provide plenty of options for viewers seeking lighter entertainment. Last Tuesday one of them, RTL, offered reruns of the U.S. drama "CSI: Miami."

by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:58:30 PM EST
[ Parent ]
Frenchman attempts to cross English Channel in pedal-powered airship - Telegraph
A Frenchman inspired by the film ET has set off on an attempt to become the first person to cross the English Channel in a pedal-powered airship.

Stephane Rousson, 39, from Nice, took off from the coast of Hythe in Kent just before 8am and hopes to reach Wissant about five hours' later while suspended from the miniature Zeppelin.

He is being shadowed by two boats during the 28-mile journey across one of the world's busiest shipping lanes in case he and his contraption plunge into the sea.

A spokeswoman for him, who is on board one of the boats, said: "To have set off is a victory in itself. He had to wait for just the right weather conditions but they came at the right time.

"It's all going right. He is hovering about ten metres from the water and is making a really good go of it."

by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 02:00:59 PM EST
[ Parent ]
MI6 seeks recruits on Facebook | Technology | The Guardian

MI6 is using the social networking site Facebook to recruit the next generation of spies. The Secret Intelligence Service, which has traditionally scoured the country's elite universities for recruits, launched a series of online adverts this month as part of its attempts to attract people from a variety of backgrounds.

"A number of public channels are used to promote job opportunities in the organisation and Facebook is a recent example of this," said a Foreign Office spokeswoman. MI6 runs agents in foreign countries and says it wants its officers to "reflect the society" they serve.



The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt ät gmail dotcom) on Mon Sep 29th, 2008 at 03:50:56 AM EST
[ Parent ]
Learning From Mistakes Only Works After Age 12, Study Suggests
ScienceDaily (Sep. 27, 2008) -- Eight-year-old children have a radically different learning strategy from twelve-year-olds and adults. Eight-year-olds learn primarily from positive feedback ('Well done!'), whereas negative feedback ('Got it wrong this time') scarcely causes any alarm bells to ring.  Twelve-year-olds are better able to process negative feedback, and use it to learn from their mistakes.  Adults do the same, but more efficiently.

he switch in learning strategy has been demonstrated in behavioural research, which shows that eight-year-olds respond disproportionately inaccurately to negative feedback. But the switch can also be seen in the brain, as developmental psychologist Dr Eveline Crone and her colleagues from the Leiden Brain and Cognition Lab discovered using fMRI research.  The difference can be observed particularly in the areas of the brain responsible for cognitive control. These areas are located in the cerebral cortex.

Opposite case

In children of eight and nine, these areas of the brain react strongly to positive feedback and scarcely respond at all to negative feedback.  But in children of 12 and 13, and also in adults, the opposite is the case.  Their 'control centres' in the brain are more strongly activated by negative feedback and much less by positive feedback.



The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt ät gmail dotcom) on Mon Sep 29th, 2008 at 04:13:20 AM EST
[ Parent ]

An old news:
http://nightwatch.afcea.org/NightWatch_20080925.htm

Georgia-Abkhazia:  A car bomb exploded this morning near the Abkhazian Interior Ministry and secret service office buildings in Sukhumi, the Abkhazian capital, Interfax reported. The buildings were damaged but no casualties were reported. Abkhaz secret service chief Yury Ashuba was quoted as blaming the attack on Georgia's secret services.

by vbo on Mon Sep 29th, 2008 at 10:08:47 AM EST
[ Parent ]
KLATSCH
by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 01:53:02 PM EST
Nicolas Sarkozy: handle with care - Times Online
Book reveals explosive break-up of President Nicolas Sarkozy's marriage to Cecilia

They have been divorced for almost a year and both have remarried but President Nicolas Sarkozy's stormy parting from Cécilia, his second wife, has returned to haunt him as new details emerged last week of the marital breakdown.

Seldom has a French politician dragged so much colourful personal baggage into the presidential palace. A book that seemed to revel in highlighting that baggage has undermined Sarkozy's latest effort to draw the line under the past and present a more dignified image.

According to Hubert Coudurier, the author of a book about Sarkozy's rise to the presidency, Cécilia filed a complaint about her husband at a police station after a particularly violent row with him in the run-up to last year's election.

"Sarkozy can be very nice," Coudurier explained last week, "but there is also another, more impulsive side. He can get carried away."

[Murdoch Alert]
by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 02:00:27 PM EST
[ Parent ]
There was a rumour about that (Cecilia filing a complaint against Sarko) going 'round the intertubes a few months before the elections, last year. It was dismissed. Lousy journalists not doing their jobs.

Un roi sans divertissement est un homme plein de misères
by linca (antonin POINT lucas AROBASE gmail.com) on Sun Sep 28th, 2008 at 05:52:10 PM EST
[ Parent ]
I have certain knowledge that it was true.
From a lawyer involved.
Can't tell you the name though -for obvious reasons. So I guess you may call me a rumour.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi
by Cyrille (cyrillev domain yahoo.fr) on Mon Sep 29th, 2008 at 01:25:53 AM EST
[ Parent ]
Marlon Brando's tribe left waiting for inheritance - Times Online

The "rainbow tribe" of Marlon Brando's multitude of acknowledged children, ex-wives and lovers are growing impatient for their inheritance.

Penniless relatives are eager to share a fortune after the screen actor died in July 2004. They are hoping to benefit from the transformation of his dilapidated Polynesian atoll near Tahiti into a world-class hotel.

The Brando eco-lodge was due to open this summer with 30 villas in the heart of a South Pacific nature reserve, but last week the agency representing the development said: "Nothing is going on and we don't know when it will."

Brando, who bought the Tetiaroa atoll in 1965, three years after filming Mutiny on the Bounty in Polynesia, talked about leaving it as an unspoilt refuge for his children. However, financial realities have intruded.

[Murdoch Alert]
by Fran (fran at eurotrib dot com) on Sun Sep 28th, 2008 at 02:00:43 PM EST
[ Parent ]
First trailer viewable now: Oliver Stone's 'W'

How the drunk cattle-challenged cowboy made it up to the big house.

You can't be me, I'm taken

by Sven Triloqvist on Sun Sep 28th, 2008 at 03:48:10 PM EST
[ Parent ]
Nice. Very apposite theme song too.

The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt ät gmail dotcom) on Mon Sep 29th, 2008 at 04:40:45 AM EST
[ Parent ]
I am not a great Stone fan, but he might have the right insights to make 'W'.

You can't be me, I'm taken
by Sven Triloqvist on Mon Sep 29th, 2008 at 10:53:41 AM EST
[ Parent ]
Mad Dog Palin

You can't be me, I'm taken
by Sven Triloqvist on Sun Sep 28th, 2008 at 07:59:55 PM EST
[ Parent ]
A slightly more palatable video version of same:

http://www.collegehumor.com/video:1831461

The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman

by dvx (dvx.clt ät gmail dotcom) on Mon Sep 29th, 2008 at 04:36:16 AM EST
[ Parent ]


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