cryptogon.com

“The information the committee is requesting is highly classified and not information we can make available,” White House spokesman Tony Fratto said in signaling a possible court fight.

The Senate Judiciary Committee approved the subpoenas in a 13-3 vote following 18 months of futile efforts to obtain documents related to Bush’s contested justification for warrantless surveillance begun after the September 11 attacks.

Three Republicans joined 10 Democrats in voting to authorize the subpoenas, which may be issued within days.

“We are asking not for intimate operational details but for the legal justifications,” said Committee Chairman Patrick Leahy, a Vermont Democrat. “We have been in the dark too long.”

Authorization of the subpoenas set up another possible courtroom showdown between the White House and the Democratic-led Congress, which has vowed to unveil how the tight-lipped Republican administration operates.

Last week, congressional committees subpoenaed two of Bush’s former aides in a separate investigation into the firing last year of nine of the 93 U.S. attorneys.

Bush could challenge the subpoenas, citing a right of executive privilege his predecessors have invoked with mixed success to keep certain materials private and prevent aides from testifying.

Conservative and liberal lawmakers alike raised alarms that the measure would violate the civil liberties of people never convicted of a crime and set a dangerous precedent for government collection of sensitive genetic information.

“I think it is egregious,” Rep. Eddie Farnsworth, a conservative Republican from Gilbert and chairman of the House Judiciary Committee, said on the House floor Tuesday. “It tramples on the liberties and freedom of the people.”

Supporters say the move provides an expanded crime-solving tool for law enforcement and compared taking a DNA sample to taking a mug shot or fingerprints at the time of arrest. Current law requires DNA samples only after a person is convicted of certain felonies.

…

Rep. Kyrsten Sinema, D-Phoenix, called it a “radical change” in law that would disproportionately affect minorities and presume everyone arrested is guilty.

“The Oversight Committee has learned that over the objections of the National Archives, you exempted the Office of the Vice President from the presidential executive order that establishes a uniform, government-wide system for safeguarding classified national security information,” Rep. Henry Waxman (D-CA), the Committee’s chairman, wrote in a letter to Cheney. “Your decision to exempt your office from the President’s order is problematic because it could place national security secrets at risk. It is also hard to understand given the history of security breaches involving officials in your office.”

Did they jump or were they pushed? Was Hamas’s seizure of Fatah security offices in Gaza unprovoked, or a pre-emptive strike to forestall a coup by Fatah? After last week’s turmoil, it becomes increasingly important to uncover its origins.

The fundamental cause is, of course, well known. Israel, aided by the US, was not prepared to accept Hamas’s victory in last year’s Palestinian elections. Backed by a supine EU, the two governments decided to boycott their new Palestinian counterparts politically and punish Palestinian voters by blocking economic aid. Their policies had a dramatic effect, turning Gaza even more starkly into an open prison and creating human misery on a massive scale. The aim was to turn voters against Hamas – a strategy of stupidity as well as cynicism, since outside pressure usually produces resistance rather than surrender.

The policy shocked even moderate western officials like James Wolfensohn, the former World Bank chief, whom the Americans had appointed to help Gaza’s economy before the Hamas election victory. “The result was not to build more economic activity but to build more barriers,” he said this week while explaining why he resigned in disagreement with US and Israeli strategy.

It is also well known that Hamas was as surprised by its election victory as everyone else and that it offered its rival, Fatah, a coalition government of national unity. The offer was refused. If this was done initially out of wounded pride, Fatah’s rejection of Hamas’s regularly repeated overtures increasingly appeared to be coordinated with Washington as part of the boycott strategy.

Reports have been circulating for months of a more sinister side to the boycott. According to them, the US decided last year on a plan to arm and train Mahmoud Abbas’s presidential guard in a deliberate effort to confront and defeat Hamas militarily. Israel has already locked up several dozen Hamas legislators and mayors from the West Bank. The next stage was to do the same in Gaza but have Palestinians, rather than Israelis, run the crackdown.

The jump in 30-year mortgage rates by more than a half a percentage point to 6.74 percent in the past five weeks is putting a crimp on borrowers with the best credit just as a crackdown in subprime lending standards limits the pool of qualified buyers. The national median home price is poised for its first annual decline since the Great Depression, and the supply of unsold homes is at a record 4.2 million, the National Association of Realtors reported.

“It’s a blood bath,” said Mark Kiesel, executive vice president of Newport Beach, California-based Pacific Investment Management Co., the manager of $668 billion in bond funds. “We’re talking about a two- to three-year downturn that will take a whole host of characters with it, from job creation to consumer confidence. Eventually it will take the stock market and corporate profit.”

…

New-home sales will decline 33 percent from 2005’s peak to the end of this year, according to the Realtors’ group, exceeding the 25 percent three-year drop in 1991 that helped spark a recession.

…

The investment banks, insurance companies, pension funds and asset-management firms that hold some of the U.S.’s $6 trillion of mortgage-backed securities have yet to suffer the full effect of subprime loans gone bad, said David Viniar, Goldman’s chief financial officer. Subprime mortgages, given to people with bad or limited credit histories, account for about $800 billion of the market.

“I continue to believe that we haven’t seen the bottom in the subprime market,” Viniar said on a June 14 conference call with reporters. “There will be more pain felt by people as that works through the system.”

He didn’t return calls this week seeking additional comments.

…

Homebuilding stocks are down 20 percent this year after falling 20 percent in 2006, according to the Standard & Poor’s Supercomposite Homebuilding Index of 16 companies. Before last year, the index had gained sixfold in five years.

“There isn’t a recovery about to happen,” said Ara Hovnanian, chief executive officer of Hovnanian Enterprises Inc., the Red Bank, New Jersey-based homebuilder. The company’s stock tumbled 42 percent this year through yesterday.

The share of people taking out all types of adjustable-rate home loans averaged 29 percent during the past three years, compared with the 17 percent average of the prior three years, according to data compiled by Mclean, Virginia-based Freddie Mac.

Higher fixed mortgage rates and stricter lending standards mean some of those borrowers won’t be able to refinance into fixed- rate loans. Many of them have seen their home’s value drop even as their interest rates adjust higher.

“When all these people see their mortgage payment and it’s up 40 or 50 percent, they’re going to say, ‘We can’t stay in this house,'” Pimco’s Kiesel said. “And there are millions of people in this situation.”

…

The recent increase in mortgage rates is the biggest spike since 2004. The change means buyers can afford 8 percent less house than they could five weeks ago, Kiesel said.

“Prices are going lower,” he said.

…

In addition to their primary mortgages, homeowners had $913.7 billion of debt in home equity loans in 2005, more than double the $445.1 billion in 2001, according to a paper by former Federal Reserve Chairman Alan Greenspan and James Kennedy on equity extraction issued by the Fed three months ago.

About a third of that money, extracted as home values surged 53 percent from 2000 to 2005, was used to buy cars and other consumer goods, according to the paper. The interest rate on those loans doubled to 8.25 percent in 2006 from 4 percent in 2003.

…

Homebuyers who got an adjustable-rate mortgage, a so-called ARM, in 2004 have seen their rate climb by about 40 percent. That’s enough to add $288 to the monthly payment for a $300,000 mortgage. The average adjustable rate last week was 5.75 percent, an 11-month high, according to Freddie Mac.

…

Making it harder for those people to buy houses is going to create trouble all the way up the housing chain as people who own starter homes find it more difficult to sell their real estate and buy bigger properties, said Neal Soss, chief economist at Credit Suisse Holdings USA Inc. in New York.

…

Measured annually, the national median price for a previously owned home hasn’t dropped since the Great Depression in the 1930s, according to Lawrence Yun, an economist with the trade group. This year it probably will fall 1.3 percent, Yun said.

The share of mortgages entering foreclosure rose to 0.58 percent in the first quarter, the highest on record, from 0.54 percent in the final three months of 2006, the Mortgage Bankers Association said in a report last week. Subprime loans going into default rose to a five-year high of 2.43 percent, up from 2 percent, and late payments from borrowers with poor credit histories rose to almost 13.8 percent, the highest since 2002.

Prime loans entering foreclosure increased to 0.25 percent, the highest in a survey that goes back to 1972. That’s a sign that even the most creditworthy borrowers are being squeezed, Roubini said.

…

“We have a lot of people, even prime borrowers, who are at the edge because they either bought with no equity, they have an ARM that’s seen a rate spike, or they used their house like an ATM and turned their equity into cash,” Roubini said. “Many of those people are under water today, and if they have to sell, it’s going to drag down values in their neighborhood.”

…

“A lot of people went out on a limb to pay the record high prices for homes, and they’re in trouble now,” he said.

Borrowers who got loans with so-called teaser rates are in the biggest bind, according to Shilling. Prices surged a record 12 percent in 2005, spurring buyers to “stretch” to qualify for bigger loans by using interest-only ARMs or so-called option ARMs with low introductory payments.

This fall, Troy University in Alabama will begin rolling out the cameras for many of its approximately 11,000 online students, about a third of whom are at U.S. military installations around the world.

Or, more accurately, out of uniform.

A photo spread in the upcoming July issue of the U.S. lad mag Maxim features a roster of Israeli models, all ex-soldiers, photographed wearing very little in the cause of their country. Initiated by Israel’s New York consulate and headlined “Women of the Israel Defense Forces,” the campaign has already been criticized as inappropriate by some in Israel.

The Maxim shoot presents Israeli models like Nivit Bash, who apparently served in military intelligence — though the only remnant of an army career evident in her photograph on the magazine’s web site is a military-style black cap that matches a minimal swimsuit.

Gal Gadot, a former Miss Israel and army fitness instructor, appears sprawled provocatively on the ledge of a Tel Aviv high-rise.

The idea originated in the media office at Israel’s consulate in New York City, where research showed that Israel meant little to young American men.

“Males that age have no feeling toward Israel one way or another, and we view that as a problem, so we came up with an idea that would be appealing to them,” said David Dorfman, a media adviser at the consulate.

Maxim’s popularity with that demographic led to the strange partnership.