XM1063: The U.S. Army’s Mystery Projectile

July 12th, 2008

Via: Guardian:

Is the XM1063 a stink bomb, a banana skin, or a bad trip? It’s hard to know. XM1063 is the code name for the US army’s new secret weapon which will “suppress” people without harming them, as well as stopping vehicles in an area 100m square. But is it a violation of chemical weapons treaties, or a welcome move towards less destructive warfare using non-lethal weapons?

Exactly how it works is classified, but we have established some details. The first part of the weapon is an artillery round – or as the army puts it, “a non-lethal personal suppression projectile” – fired from a 155mm howitzer, with a range of 28km. It scatters 152 small non-explosive submunitions over a 1-hectare area; as each parachutes down, it sprays a chemical agent. Development was overseen by the US Army’s Armament Research, Development and Engineering Centre (Ardec).

A presentation by the makers, General Dynamics, says the XM1063 will “suppress, disperse or engage personnel” and “deny personnel access to, use of, or movement through a particular area, point or facility”.


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July 12th, 2008

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IndyMac Bank Seized by Federal Regulators; Second Largest Bank Failure in U.S. History

July 12th, 2008

Via: Los Angeles Times:

The federal government took control of Pasadena-based IndyMac Bank on Friday in what regulators called the second-largest bank failure in U.S. history.

Citing a massive run on deposits, regulators shut its main branch three hours early, leaving customers stunned and upset. One woman leaned on the locked doors, pleading with an employee inside: “Please, please, I want to take out a portion.” All she could do was read a two-page notice taped to the door.

The bank’s 33 branches will be closed over the weekend, but the Federal Deposit Insurance Corp. will reopen the bank on Monday as IndyMac Federal Bank, said the Office of Thrift Supervision in Washington. Customers will not be able to bank by phone or Internet over the weekend, regulators said, but can continue to use ATMs, debit cards and checks. Normal branch hours, online banking and phone banking services were to resume Monday.

Based on a preliminary analysis, federal authorities said the takeover of IndyMac, which had $32 billion in listed assets, would cost the FDIC between $4 billion and $8 billion. Regulators said deposits of up to $100,000 were safe and insured by the FDIC.

IndyMac’s failure had been widely expected in recent days. As the bank was shuttering offices and laying off employees to cope with huge losses from defaulted mortgages made at the height of the housing boom, nervous depositors were pulling out $100 million a day. The bank’s stock price had plummeted to under $1 as analysts predicted the company’s imminent demise.


ISRAELI WARPLANES MOVED INTO IRAQ?

July 11th, 2008

Yes, no, maybe so, I don’t know.

Via: Jerusalem Post:

Israel Air Force (IAF) war planes are practicing in Iraqi airspace and land on US airbases in the country as a preparation for a potential strike on Iran, sources in the Iraqi Defense Ministry told a local news network on Friday.

The report, carried also by Iranian news outlets, claimed that recently massive nocturnal activity by IAF craft was noted in several American held airbases, including measures by the US army to increase security around the bases.

The Jerusalem Post could not confirm the veracity of the report.

According to the sources, former military officers in the Anbar province said IAF jets arrive during the night from Jordanian airspace, enter Iraq’s airspace and land on a runway near the city of Hadita. The sources estimated the jets were practicing for a raid on Iran’s nuclear sites.

The sources also said the American bases in Iraq might serve as a platform for the IAF from which to attack Iran. If Israeli warplanes will take off from Iraq, they can reach Bushehr in five minutes – a “record time,” the sources said.

After reports of a massive IAF exercise over the Mediterranean surfaced several weeks ago, an Israeli official told the times that the drill was “the dress rehearsal” for an attack on Iran’s nuclear sites.

On Thursday, Defense Minister Ehud Barak said Israel was the “strongest country in the region.” Sending a thinly veiled warning to Iran, Barak said Israel “has already proved it did not shy away in the past from acting when it fears its vital interests are at stake.”


U.S. Weighs Takeover of Two Mortgage Giants

July 11th, 2008

Yep, it’s one big cascading charlie foxtrot out there this morning…

Gold gap.
Dollar crap.
A new record high on oil.

Now, let’s talk trillions.

Via: New York Times / Yahoo:

Alarmed by the growing financial stress at the nation’s two largest mortgage finance companies, senior Bush administration officials are considering a plan to have the government take over one or both of the companies and place them in a conservatorship if their problems worsen, people briefed about the plan said on Thursday.

The companies, Fannie Mae and Freddie Mac, have been hit hard by the mortgage foreclosure crisis. Their shares are plummeting and their borrowing costs are rising as investors worry that the companies will suffer losses far larger than the $11 billion they have already lost in recent months. Now, as housing prices decline further and foreclosures grow, the markets are worried that Fannie and Freddie themselves may default on their debt.

Under a conservatorship, the shares of Fannie and Freddie would be worth little or nothing, and any losses on mortgages they own or guarantee — which could be staggering — would be paid by taxpayers.

The government officials said that the administration had also considered calling for legislation that would offer an explicit government guarantee on the $5 trillion of debt owned or guaranteed by the companies. But that is a far less attractive option, they said, because it would effectively double the size of the public debt.

The officials also said that such a step would be ineffective because the markets already widely accept that the government stands behind the companies.

The officials involved in the discussions stressed that no action by the administration was imminent, and that Fannie and Freddie are not considered to be in a crisis situation. But in recent days, enough concern has built among senior government officials over the health of the giant mortgage finance companies for them to hold a series of meetings and conference calls to discuss contingency plans.

A conservatorship or other rescue operation would be the second time in four months that the Bush administration has stepped in to engineer a rescue to prevent the financial system from collapsing. Last March, it forced the sale of Bear Stearns to JPMorgan Chase to avert a bankruptcy of that venerable investment house.

Officials have also been concerned that the difficulties of the two companies, if not fixed, could damage economies worldwide. The securities of Fannie and Freddie are held by numerous overseas financial institutions, central banks and investors.


Desk Rage Spoils Workplace for Many Americans

July 11th, 2008

The powers of ordinary men are circumscribed by the everyday worlds in which they live, yet even in these rounds of job, family, and neighborhood they often seem driven by forces they can neither understand nor govern. ‘Great changes’ are beyond their control, but affect their conduct and outlook none the less. The very framework of modern society confines them to projects not their own, but from every side, such changes now press upon the men and women of the mass society, who accordingly feel that they are without purpose in an epoch in which they are without power.

—C. Wright Mills, The Power Elite

Take the ‘consumer’ out of zombie consumer and what do you have left?

A serious security problem.

Without being able to self medicate during the weekend recess, the problems that have been there all along, and many new ones, are boiling over.

Via: Reuters:

Get out of the way, road rage. Here comes desk rage.

Anger in the workplace — employees and employers who are grumpy, insulting, short-tempered or worse — is shockingly common and likely growing as Americans cope with woes of rising costs, job uncertainty or overwhelming debt, experts say.

“It runs the gamut from just rudeness up to pretty extreme abusive behaviors,” said Paul Spector, professor of industrial and organizational psychology at the University of South Florida. “The severe cases of fatal violence get a lot of press but in some ways this is more insidious because it affects millions of people.”

Nearly half of U.S. workers in America report yelling and verbal abuse on the job, with roughly a quarter saying it has driven them to tears, research has shown.

Other research showed one-sixth of workers reported anger at work has led to property damage, while a tenth reported physical violence and fear their workplace might not be safe.

“It’s a total disaster,” said Anna Maravelas, author of “How to Reduce Workplace Conflict and Stress.” “Rudeness, impatience, people being angry — we used to do that kind of stuff at home but at work, we were professional. Now it’s almost becoming trendy to do it at work.

“It was something we did behind closed doors,” she said. “Now people are losing their sense of embarrassment over it.”

Contemporary pressures such as rising fuel costs fan the flames, said John Challenger, head of Chicago’s Challenger, Gray & Christmas workplace consultants.

“People are coming to work after a long commute, sitting in traffic watching their discretionary income burn up. They’re ready for a fight or just really upset,” he said.

Added to that, he said, are financially strapped workers having to cut back on paying for personal pastimes that might serve as an antidote to work pressures.


U.S. Airstrike Killed 47 Afghan Civilians

July 11th, 2008

Via: BBC:

A US air strike in eastern Afghanistan on Sunday killed 47 civilians, 39 of them women and children, an Afghan government investigating team says.

Reports at the time said that 20 people were killed in the airstrike in Nangarhar province. The US military said they were militants.

But local people said the dead were wedding party guests.

…

Mr Karzai set up a nine-man commission to look into Sunday’s incident.

The commission is headed by Senate deputy speaker, Burhanullah Shinwari whose constituency is in Nangarhar province. He told the BBC: ”Our investigation found out that 47 civilians (were killed) by the American bombing and nine others injured.

“There are 39 women and children” among those killed, he said. The eight other people who died were “between the ages of 14 and 18”.


OIL BREAKOUT

July 11th, 2008

WARNING: This is not a recommendation to buy, sell or hold any financial instrument.

WTI Crude is breaking higher from the previous range. New record high prints intraday at $145.91, probably on event risk.

Gold is showing a potential intermediate term break out above $950.

The dollar is lower, but that’s not the driver here.

This is a realtime update. Mainstream press will follow.


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July 11th, 2008

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Related: June Earnings


FEMA Trailer Manufacturers Knew About Formaldehyde, Findings Went Undisclosed

July 11th, 2008

It’s not a conspiracy:

“The problem was and remains confusion among federal agencies, not some conspiracy among trailermakers,” said ranking committee Republican Rep. Tom Davis (Va.).

It’s just a Coincidence that thousands of children from low income families will be dead from cancer before they have a chance to have children of their own.

Via: Washington Post:

A leading U.S. trailer manufacturer failed to disclose to Hurricane Katrina evacuees or the government its internal findings that formaldehyde in some units exceeded a federal health standard by as much as 45 times in 2006, its chairman acknowledged to Congress yesterday.

Jim Shea, chairman of Gulf Stream Coach, which built 50,000 trailers for the Federal Emergency Management Agency for $520 million, said his company decided that its results were “irrelevant information” because FEMA already knew about high formaldehyde levels. The agency and the company were working together to improve ventilation, he said, and FEMA later turned down company offers to conduct more tests.

In hindsight Gulf Stream should have shared information from its sampling, Shea said. “Anything that would have been helpful to public health in any kind of way with this in retrospect, we would have loved to have been able to shed more light on it,” he said.

The testimony came as Democrats and Republicans on the House Committee on Oversight and Government Reform clashed over builders’ responsibility for the housing debacle that unfolded after the August 2005 storm, raising both public health alarms along the Gulf Coast and doubts about how the government will house Americans in future emergencies.

The U.S. Centers for Disease Control and Prevention recommended this winter that all Katrina trailer residents be moved to safer housing after finding elevated formaldehyde levels in 42 percent of trailers. Four companies — Gulf Stream, Forest River, Keystone and Pilgrim International — were identified as having significant problems.

Appearing under oath, executives of those companies each acknowledged CDC findings that some of their products contained unsafe levels of formaldehyde, a common industrial chemical used in glues to make particle board and plywood. It has been linked to cancer and higher rates of respiratory illness.

But company officials and some GOP lawmakers blamed the federal government for failing to set any binding indoor air-quality standards for formaldehyde in trailers or any other U.S. housing. Republicans from Indiana, where the recreational vehicle industry is based, defended builders’ records and integrity.

“The problem was and remains confusion among federal agencies, not some conspiracy among trailermakers,” said ranking committee Republican Rep. Tom Davis (Va.).

Research Credit: ltcolonelnemo


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