Wednesday, December 7, 2011

Obama sets campaign theme: Middle class at stake (AP)

OSAWATOMIE, Kan. ? Declaring the American middle class in jeopardy, President Barack Obama on Tuesday outlined a populist economic vision that will drive his re-election bid, insisting the United States must reclaim its standing as a country in which everyone can prosper if provided "a fair shot and a fair share."

While never making an overt plea for a second term, Obama's offered his most comprehensive lines of attack against the candidates seeking to take his job, only a month before Republican voters begin choosing a presidential nominee. He also sought to inject some of the long-overshadowed hope that energized his 2008 campaign, saying: "I believe America is on its way up."

In small-town Osawatomie, in a high school gym where patriotic bunting lined the bleachers, Obama presented himself as the one fighting for shared sacrifice and success against those who would gut government and let people fend for themselves. He did so knowing the nation is riven over the question of whether economic opportunity for all is evaporating.

"Throughout the country, it's sparked protests and political movements, from the tea party to the people who've been occupying the streets of New York and other cities," Obama said.

"This is the defining issue of our time," he said in echoing President Theodore Roosevelt's famous speech here in 1910.

"This is a make-or-break moment for the middle class and all those who are fighting to get into the middle class," Obama said. "At stake is whether this will be a country where working people can earn enough to raise a family, build a modest savings, own a home and secure their retirement."

For Obama, saddled with a weak national economic recovery, the speech was a chance to break away from Washington's incremental battles and his own small-scale executive actions. He offered a sweeping indictment of economic inequality and unleashed his own brand of prairie populism.

He spoke for nearly an hour to a supportive audience, reselling his ideas under the framework of "building a nation where we're all better off."

Billed as an important address that would put today's economic debates in context, Obama's speech seemed a bit like two packaged into one.

The first was that of the campaigner, full of loft and reclamation of American values. The second was the governing Obama, who recited his familiar jobs agenda, his feud with Congress over extending a Social Security tax cut, even his fight to get his consumer watchdog confirmed.

Obama tied himself to Roosevelt, the president and reformer who came to this town in eastern Kansas and called for a "square deal" for regular Americans. Roosevelt said then the fight for progress was a conflict "between the men who possess more than they have earned and the men who have earned more than they possess."

It is a theme Obama is embracing in a mounting fight for re-election against Republicans who, regardless of the nominee, will attack his stewardship of the economy.

One of the leading contenders for the GOP nomination, Mitt Romney, ridiculed Obama for comparing himself to Roosevelt.

Obama "said that he is like Teddy Roosevelt," Romney said at a campaign event in Paradise Valley, Ariz. "And I thought, `In what way is he like Teddy Roosevelt?' Teddy Roosevelt of course founded the Bull Moose Party. One of those words applies."

Kirsten Kukowski, spokeswoman for the Republican National Committee, said, "Maybe instead of trying to be like other presidents, Obama should try being president."

Obama took aim at the Republicans, saying they would only return the same structures that led to America's economic downturn. "Their philosophy is simple: We are better off when everyone is left to fend for themselves and play by their own rules," Obama said. "I'm here to say they are wrong."

The president conceded that the country is in the midst of a consuming re-examination on his watch, prompting national movements against both government spending and an economy that many feel disproportionately favors the elite. Obama went on the offensive about income equality, saying it distorts democracy and derails the American dream.

Responding to those who want to cut taxes and regulation in the belief success will trickle down, Obama said: "Here's the problem: It doesn't work. It's never worked."

Obama noted that Theodore Roosevelt was called a "radical, a socialist, even a communist" for putting forth ideas in his last campaign such as an eight-hour work day, a minimum wage for women, unemployment insurance and a progressive income tax.

Left unsaid: Roosevelt's Bull Moose campaign in 1912 failed to return him to the White House.

Obama attempted to sum up the pain and peril for a society where the middle class is struggling. But he also called for individual responsibility.

"In the end," he said, "rebuilding this economy based on fair play, a fair shot and a fair share will require all of us to see the stake we have in each other's success."

Obama also challenged the big banks that took bailouts from American taxpayers, pointing to "a deficit of trust between Main Street and Wall Street." He said banks that were bailed out had an obligation to work to close that trust deficit and should be doing more to help remedy past mortgage abuses and assist middle-class taxpayers.

___

Feller contributed from Washington. Associated Press writers Erica Werner and Kasie Hunt contributed to this report.

Source: http://us.rd.yahoo.com/dailynews/rss/obama/*http%3A//news.yahoo.com/s/ap/20111207/ap_on_go_ot/us_obama

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Why S&P wields so much power in European crisis (AP)

NEW YORK ? Until this week, the fate of Europe seemed to hang on the decisions of three power brokers ? the president of France, the chancellor of Germany and the head of the European Central Bank.

Add a surprising fourth: Standard & Poor's, the credit rating agency.

S&P ripped into American politicians last summer for failing to address long-term debt and stripped the United States of its top-flight credit rating. Now it is essentially warning Europe to fix its debt problem ? or else.

Critics of S&P have questioned its credibility and relevance because it failed to foresee the collapse in the U.S. subprime mortgage market, which helped trigger the financial meltdown of 2008.

But what S&P says about the creditworthiness of European countries, or just about any other financial entity, still matters a great deal.

S&P rates companies and governments by their ability to repay debt. The higher the rating ? AAA is the highest ? the more investors trust them, and the less interest companies or governments have to pay to borrow money.

S&P threatened to lower its rating on 15 nations ? even Germany, the most powerful economy in Europe ? if their leaders don't agree on a tough response to the European debt crisis.

Borrowing costs for European countries were little changed after S&P's announcement, which came Monday night Europe time. But ratings cuts later could force countries to pay higher interest rates on the national bonds they issue to investors, creating a dangerous debt spiral and pushing them closer to default.

In a debt spiral, a country is forced to put aside an ever larger share of its budget for interest. That leaves less for everything else, and the country has to borrow even more to make up the difference ? or cut services, hurting the economy.

S&P's warning drew angry responses from some European officials who are scrambling to contain the crisis, and outrage from critics who say S&P plays an outsize role in markets.

"It still has enormous power," said Michael Lewitt, a former money manager who pilloried credit raters in his book "The Death of Capital." "I'm surprised it hasn't been throttled back by now."

The spotlight on S&P comes after it stripped the United States of an AAA rating for the first time in August, just after the prolonged debate over whether to raise the nation's borrowing limit.

S&P normally focuses on the financial resources of a company or government to pay back what it owes. But in the U.S. downgrade, it called out Congress and the White House for descending into gridlock over how to fix the nation's long-term debt problem.

Political considerations played a role in S&P's European downgrade threat, too. In a conference call Tuesday, Moritz Kraemer, head of S&P's sovereign ratings for Europe, said the agency is worried about paralysis in European decision-making.

Kraemer, whose division inside S&P issued the warning, told reporters Tuesday that previous efforts by European leaders "have not only been unable to arrest this crisis, but have arguably contributed to weakening confidence further."

He also acknowledged that the timing of S&P's warning was influenced by the importance of a summit of leaders of the European Union that starts Friday in Brussels, with the fate of the euro currency in the balance.

At that meeting, French President Nicolas Sarkozy and German Chancellor Angela Merkel will try to persuade the rest of the EU to adopt centralized controls over how individual countries set their budgets and how much they can borrow.

Already on Tuesday, there were signs that Britain would resist the proposal. France, Germany and 15 other countries use the euro currency. Britain and nine others do not. All 27 must approve changes to the EU treaty.

If the euro collapses, as some financial analysts worry it will, that could create a financial crisis reminiscent of 2008 ? severely restricted lending by banks, panic by investors, a worldwide recession.

"This is the time to turn the situation around," Kraemer warned.

In the run-up to the financial crisis, S&P and its chief rival, Moody's Investors Service, slapped their highest ratings on bundles of mortgages that were sold to investors as securities.

The result: Investors thought it was safe to buy the bundles and poured more and more money into them, inflating the housing bubble and making the eventual collapse that much worse.

The agencies have also been criticized for moving too slowly to downgrade risky companies, saddling investors with losses and the feeling they'd been duped.

One reason the agencies retain such power is that mutual funds, pension funds and other big investors are restricted from holding debt rated below a certain level. That means a downgrade can trigger selling, even by people who don't believe the countries or companies are any more likely to default.

S&P has taken a more aggressive stance than its two biggest competitors, Moody's and Fitch, both of which still have AAA ratings on U.S. debt and both of which have been much less vocal about Europe.

Some experts say that S&P is being aggressive now because it's trying to shore up its reputation after its many missteps.

"It's trying to get its mojo back," said David Kotok, CEO of money manager Cumberland Advisors. He was especially critical of the agency's decision to assess the politics behind fiscal dealmaking. "That's a foggy, fuzzy area."

Jan Randolph, director of sovereign risk for IHS Global Insight, which issues ratings on sovereign debt and is a competitor of S&P, said S&P appeared to be engaging in "a certain amount of overcompensation."

Raghuram Rajan, a finance professor at the University of Chicago's Booth School of Business, cautioned against reading too much into the S&P's motives.

"It's not their job to fix Europe's fiscal situation," he said. "Their job is of an observer who tells the investing public what any changes mean for the credit quality of European bonds."

Others say S&P's criticism reflects a conclusion reached weeks ago by financial markets, and evident in rising interest rates for European debt.

"There's sort of a no-duh aspect to S&P's decision," said Guy LeBas, chief fixed income strategist at Janney Capital Markets. He said that while the timing was unusual, "it certainly gives a kick in the rear end to some of the policymakers who have been slow to act."

In a conference call with reporters, S&P officials said it would be a conflict of interest to tell governments what to do, and that it was unlikely they would consult with governments privately.

They said, however, that they may ask questions later to get details on any European debt agreement.

__

Rugaber reported from Washington.

Source: http://us.rd.yahoo.com/dailynews/rss/europe/*http%3A//news.yahoo.com/s/ap/20111206/ap_on_bi_ge/us_europe_s_p

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Tuesday, December 6, 2011

Astronomers Find Biggest Black Holes Yet

[unable to retrieve full-text content]Cosmologists have measured the biggest black holes ever found, work that could shed light on the formation and evolution of galaxies.

Source: http://feeds.nytimes.com/click.phdo?i=4ca68c04ae4ff3548956d4a1ae04a959

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LEGO And Minecraft: Made For Each Other

11243While this can't be the first time LEGO and indie hit Minecraft have been mentioned in the same breath, I think it's the first time they've really been mixed to this degree. Mojang, the developer of the multi-million-selling mining and adventuring game has put up a project on LEGO's CUUSOO site, which allows people to submit LEGO projects and get royalties from them if they're selected for production.

Source: http://feedproxy.google.com/~r/Techcrunch/~3/k6HC7kRdijE/

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Monday, December 5, 2011

Thomas Worcester: Vermont: Green Mountain Conversion (Huffington post)

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Is Donald Trump an Agent for President Obama? (ContributorNetwork)

COMMENTARY | Donald Trump will moderate an upcoming Republican debate and may potentially run as a third-party candidate, according to Fox News. When these two points are coupled with certain actions of his earlier this year, I have come to believe "The Donald" might actually support President Barack Obama. The reality star might actually be the greatest agent for the president.

A moderator of a debate is able to steer the direction of the evening. The moderator decides who gets the most time to speak and what each candidate is able to speak about. Someone who is working for the president could do a ton of damage to any of the candidate's campaign. This argument is not enough to point out how Trump might be an agent for President Obama, but it is just the tip of the iceberg.

Trump has also stated how he might run under a third-party ticket if he does not like the candidate chosen by the party. Logic would state that a third-party Republican would hurt the GOP's chances as the extra candidate would take votes from the official party candidate. How convenient for President Obama.

Earlier this year, the billionaire theatrically hinted at tossing his hat into the presidential race. He quickly jumped to the top of the polls until he began pressing the birther argument against the president. He drove the argument into the ground and became the target of jokes from the Democrats and Republicans. One of major potential arguments about the president's legitimacy died with Trump's campaign.

Many of the presidential candidates have met with the real estate mogul in the last five months. Michele Bachmann's campaign went off the tracks soon after their meeting. Rick Perry lost his position at the top of the polls soon after meeting with the "campaign adviser." The first harassment accusers against Herman Cain came out just days after he traveled to Trump Tower. Newt Gingrich will meet with Trump on Monday. What will happen to his campaign?

Granted, Mitt Romney met with Trump as well, but it was the only candidate meeting out of the eyes of the press. No cameras were allowed to run during the private meeting. While this could be a coincidence, it might not be. Nobody has done more work for President Obama than Donald Trump. How will he hurt the Republicans next?

Source: http://us.rd.yahoo.com/dailynews/rss/obama/*http%3A//news.yahoo.com/s/ac/20111203/pl_ac/10589911_is_donald_trump_an_agent_for_president_obama

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