Goldman Trying To Get SEC Charge Knocked Down To “Material Omission” Instead Of Fraud

May 28th, 2010

Funny how that Blankfein banner keeps coming in handy.

Ok, maybe it’s not funny.

Via: Business Insider:

Goldman’s trying to settle with the SEC on a lesser charge than fraud, say John Gapper and Francesco Guerrera of the FT. The firm is also seeking to pay hundreds of millions of dollars in fines and damages instead of billions.

The lesser charge is omitting or misstating disclosures to investors. It would also reduce the threat of lawsuits and avoid the firm’s have to settle a fraud charge.


Government Wants to Monitor Networks of All Critical Infrastructure Providers

May 28th, 2010

Oh sure.

Via: Wired:

Companies that operate critical infrastructures and do not voluntarily allow the federal government to install monitoring software on their networks to detect possible cyberattacks would face the “wild” internet on their own and place us all at risk, a top Pentagon official seemed to say Wednesday.

Defense Deputy Secretary William Lynn III, speaking at the Strategic Command Cyber Symposium in Nebraska, said we need to think imaginatively about how to use the National Security Agency’s Einstein monitoring systems on critical private-sector networks — such as those in the financial, utility and communication industries — in order to protect us.

“Operators of critical infrastructure could opt in to a government-sponsored security regime,” Lynn said. Otherwise, “individual users who do not want to enroll could stay in the wild wild west of the unprotected internet.”

Failure to protect the power grids, transportation system, or financial sector, he said, “could lead to physical damage and economic disruption on a massive scale.”

Privacy and civil liberties groups, however, have raised concerns about the Einstein systems with regard to what information they would collect and share with the government and what oversight, if any, would be put in place to ensure that federal privacy and wiretapping laws are not violated.

The Einstein programs are intrusion-detection and response systems developed by the National Security Agency. The government is in the process of deploying Einstein 2 to federal networks to inspect traffic for malicious threats, but there has been talk of deploying it to private-sector networks as well. Intrusion-detection systems are already a standard tool in the defense arsenal of private-sector businesses, and the government has been unclear about how its system surpasses those already available to companies.


Canada Will Spend $885 Million on Security for G-8 and G-20 Summits

May 28th, 2010

Via: AP:

Canada’s Conservative government says the nearly $1 billion it plans to spend on security at the G-8 and G-20 summits next month is worth it.

Canada has budgeted up to $930 Canadian (US$885 million) for the summits. By comparison, the stated amount spent by Pittsburgh on security for last September’s G-20 summit was US$12.4 million. London’s stated amount for the G-20 last year was US$10.9 million.

Public Safety Minister Vic Toews said Thursday the cost is expensive but the security “worth it.”

Toews argues that hosting separate summits back-to-back is unprecedented.

Canada is hosting the G-20 economic summit on June 26-27 in Toronto. The G-8 is meeting in Huntsville, Ontario, a day earlier.


Spain Loses AAA Rating at Fitch as It Struggles to Cut Debt

May 28th, 2010

Via: Bloomberg:

Spain lost its AAA credit grade at Fitch Ratings, which said the country’s debt burden is likely to weigh on economic growth.

The ratings company cut the grade one step to AA+ and assigned it a “stable” outlook, according to a statement from London today. Spain has held the top rating since 2003.

Spain’s parliament yesterday approved the country’s deepest budget cuts in 30 years by a single vote, casting doubt on the future of the government as Prime Minister Jose Luis Rodriguez Zapatero seeks to garner support for his 2011 budget. Spain has the third-largest budget deficit in the euro region.

“The process of adjustment to a lower level of private sector and external indebtedness will materially reduce the rate of growth of the Spanish economy over the medium- term,” Brian Coulton, Fitch’s head of Europe, Middle East and Africa sovereign ratings in London, said in the statement.

Standard & Poor’s cut Spain’s ratings to AA on April 28.

Research Credit: E


Bond Sales Fall to Least in Decade, Yields Soar

May 28th, 2010

Via: Bloomberg:

Companies sold the least amount of bonds in a decade this month as concern Europe’s sovereign debt crisis will slow the global economy drove up relative borrowing costs by the most since the aftermath of Lehman Brothers Holdings Inc.’s collapse.


New, Giant Oil Plume Seen in Gulf of Mexico

May 28th, 2010

Via: AP:

Marine scientists have discovered a massive new plume of what they believe to be oil deep beneath the Gulf of Mexico, stretching 22 miles (35 kilometers) from the leaking wellhead northeast toward Mobile Bay, Alabama.

The discovery by researchers on the University of South Florida College of Marine Science’s Weatherbird II vessel is the second significant undersea plume recorded since the Deepwater Horizon exploded on April 20.

The thick plume was detected just beneath the surface down to about 3,300 feet (1,000 meters), and is more than 6 miles (9.6 kilometers) wide, said David Hollander, associate professor of chemical oceanography at the school.

Hollander said the team detected the thickest amount of hydrocarbons, likely from the oil spewing from the blown out well, at about 1,300 feet (nearly 400 meters) in the same spot on two separate days this week.

The discovery was important, he said, because it confirmed that the substance found in the water was not naturally occurring and that the plume was at its highest concentration in deeper waters. The researchers will use further testing to determine whether the hydrocarbons they found are the result of dispersants or the emulsification of oil as it traveled away from the well.

The first such plume detected by scientists stretched from the well southwest toward the open sea, but this new undersea oil cloud is headed miles inland into shallower waters where many fish and other species reproduce.

The researchers say they are worried these undersea plumes may be the result of the unprecedented use of chemical dispersants to break up the oil a mile undersea at the site of the leak.

Hollander said the oil they detected has dissolved into the water, and is no longer visible, leading to fears from researchers that the toxicity from the oil and dispersants could pose a big danger to fish larvae and creatures that filter the waters for food.

“There are two elements to it,” Hollander said. “The plume reaching waters on the continental shelf could have a toxic effect on fish larvae, and we also may see a long term response as it cascades up the food web.”

Dispersants contain surfactants, which are similar to dishwashing soap.

A Louisiana State University researcher who has studied their effects on marine life said that by breaking oil into small particles, surfactants make it easier for fish and other animals to soak up the oil’s toxic chemicals. That can impair the animals’ immune systems and cause reproductive problems.

“The oil’s not at the surface, so it doesn’t look so bad, but you have a situation where it’s more available to fish,” said Kevin Kleinow, a professor in LSU’s school of veterinary medicine.


Volcanic Ash Receiving Electric Charge; “Atmospheric Electricity and Normal Weather Activity” Probably Not the Source

May 28th, 2010

HAARP?

Via: National Geographic:

The ash plume from Iceland’s Eyjafjallajökull volcano, which crippled international air travel in April, held a shocking secret: an unexpected electric charge.

Ash plumes directly over erupting volcanoes have been known to generate lightning, and electrically charged ash has been found in previous plumes up to 30 miles (50 kilometers) from their source volcanoes.

But according to a new study, electric ash from the Eyjafjallajökull volcano was found a record 745 miles (1,200 kilometers) away from the eruption.

At that distance, it wasn’t energy from the eruption itself that charged the ash, said study co-author Giles Harrison, a meteorologist at the University of Reading in the U.K. Based on the average size and shape of particles in the ash, “any initial charging that occurred would have decayed away many times over.”

In fact, ash from deep in the volcanic plume was still charged 32 hours after being spewed from the Iceland peak, which suggests that the charge was self-renewing, the scientists say.

The discovery means that many volcanic ash plumes might be electrified, which could have implications for the air-travel industry.

Electric Ash Deep in Volcanic Plume

The Eyjafjallajökull volcano started erupting in late March, and on April 14 the volcano began belching out a gigantic plume of ash.

The plume traveled to continental Europe, grounding flights around the world for days, due to fears of ash clogging plane engines.

As the plume drifted over Scotland, Harrison and colleagues rushed to the western port city of Stranraer (map), where the 1,970-foot-thick (600-meter-thick) layer of ash loomed about two and a half miles (four kilometers) above.

The team launched a custom weather balloon outfitted with instruments to gauge the size and characteristics of atmospheric ash particles.

Even in fair weather, a very small electric field is present in Earth’s atmosphere. This field can charge airborne particles and the edges of clouds, Harrison said.

But the electric volcanic ash was found in the middle of the thick plume, not on its edges. That would seem to rule out atmospheric electricity and normal weather activity as sources of the charge.

“There has to be something related to the particles themselves, because the charge is in proportion to where the particles are and how many there are,” Harrison said. “But we really can’t say any more than that.”

Prior research done with weather balloons had shown that desert dust storms can become electrified through a process of particle collision that is not yet completely understood. The same phenomenon may be at work with volcanic ash, the scientists suggest.

How Electric Ash Affects Flights

Electrified ash could theoretically pose a risk to air traffic, because charged particles might interfere with radio transmissions, the study authors say. Also, if charged ash penetrates an aircraft cabin, it could create an electrostatic hazard to passengers and internal systems.

But Harrison noted that aircraft are built to withstand lightning strikes, which carry comparatively massive charges, so the risks from electricity in ash seem small. (Related: “Gamma Rays a Flight Risk?”)

In fact, Harrison noted, the discovery of electric ash could be a boon to air travelers, because the charge can help scientists better predict a volcanic ash plume’s movements.

Electric charges are fairly easy to observe with existing instruments, so a charged plume should be easier to track, even after the visible plume has largely dispersed.

Scientists also know how charges affect the way particles combine—which impacts their weight and thus their movements—and how easily particles are washed out of the sky by rainfall.

Measuring a plume’s charges could therefore help scientists better estimate where the ash will go and how long it will stay aloft.


Frustrated Plaquemines Parish President Billy Nungesser

May 28th, 2010

Via: Bayoubuzz.com / YouTube:

After BP oil has been found in the marshes of the parish, a frustrated Louisiana Parish President, Billy Nungesser, is interviewed after a press conference at Venice Louisiana on May 23. Nungesser, in responding to questions from Bayoubuzz.com said the U.S. Coast Guard Commandant, Thad Allen, could step up take better control of the oil spill operation which has resulted in oil-affected lands. Nungesser criticized Allen, a top BP official and others. He said something stinks, claimed that they were told to hold that permit up for some reason in referring to an emergency permit to build a barrier. Nungesser also said, its criminal, they ought to go to jail.


USAF Flying BS Generator

May 27th, 2010

Via: Wired:

Name a recent U.S. military operation, and you can pretty much guarantee that a specially modified Air Force plane was somewhere in the vicinity, trying to influencing the minds of the people below. It’s called the Commando Solo. Ordinarily, civilians are not allowed on board.

The 193rd Special Operations Wing operates a fleet of three of these EC-130J aircraft, cargo haulers that have been converted into flying radio and television stations. These “psychological operations” aircraft can broadcast their own signal over AM and FM radio, UHF and VHF television bands – or override broadcast stations on the ground, something they apparently did during operations in Bosnia and Iraq.

I recently accompanied a Commando Solo crew on a training mission. It was an unusual opportunity to see the crew at work testing their radio and television equipment at full power. This was an opportunity for what the crew calls “200 mile work”: In order to avoid interference with domestic frequencies — the aircraft can crank up to 1,000 watts of effective radiated power — the aircraft flies over 200 miles off the East Coast.

Once we’re safely out over the Atlantic, says Weapons Systems Officer Lt. Col. Mike Rice, “it’s game on.”

…

These aircraft play a crucial role in reaching — and persuading — vulnerable civilian populations.


USAF Vehicle Breaks Record for Hypersonic Flight

May 27th, 2010

Via: PhysOrg:

An experimental aircraft has set a record for hypersonic flight, flying more than 3 minutes at Mach 6 – six times the speed of sound.

The X-51A Waverider was released from a B-52 Stratofortress off the southern California coast Wednesday morning, the Air Force reported on its website. Its scramjet engine accelerated the vehicle to Mach 6, and it flew autonomously for 200 seconds before losing acceleration. At that point the test was terminated.

The Air Force said the previous record for a hypersonic scramjet burn was 12 seconds.

“We are ecstatic to have accomplished many of the X-51A test points during its first hypersonic mission,” said Charlie Brink, an X-51A program manager with the Air Force Research Laboratory at Wright-Patterson Air Force Base, Ohio.

“We equate this leap in engine technology as equivalent to the post-World War II jump from propeller-driven aircraft to jet engines,” Brink said.


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