Alex to Become Hurricane as Swells Reach Gulf Spill
June 29th, 2010Via: Bloomberg:
As officials and residents in Texas braced for a strike from Tropical Storm Alex’s most ferocious side, energy companies worked to evacuate offshore rigs.
The storm, with maximum sustained winds of 70 miles (110 kilometers) per hour, was 355 miles southeast of Brownsville, Texas, heading northwest at 12 mph, the U.S. National Hurricane Center said just before 10 a.m. Houston time.
“Strengthening is forecast during the next 36 hours or so before landfall and Alex is likely to become a hurricane later today,” the advisory said.
Brownsville began giving residents sandbags last night. Texas Governor Rick Perry declared 19 counties a disaster to free up resources and activated 2,500 National Guard troops, eight helicopters and three aircraft in advance of the season’s first storm.
The current hurricane center tracks show the center of the storm passing just south of Brownsville tomorrow night, meaning the Texas city of 172,437 will be struck by the Alex’s most powerful quadrant, according to the hurricane center. Hurricane warnings have been issued from Baffin Bay in Texas to La Cruz in Mexico.
Biggest Threat to Your Safety While Traveling by Commercial Flight? The Food
June 29th, 2010What happened to: FDA Warning Letter to LSG SkyChefs (World’s Second Largest Provider of Airline Catering Services) from back in January?
Via: CBS:
Many Americans fear for their safety while flying, scared of the possibility of something going wrong with the plane’s maintenance.
It turns out, however, the biggest safety issue you face while flying could be the food served by the airlines.
More than half a billion meals are made by some of the largest airline food kitchens in the United States. A recent analysis by some of Food and Drug Administration inspection records found that food preparation in some of these kitchens is a recipe for disaster.
Violations include roaches, mice, unsanitary conditions and no place for employees to wash their hands.
“Volume always leads to problems,” said Brian Buckley of the Institute of Culinary Education. “Obviously there’s not a lot of accountability.”
Food preparation in all three area airports were cited for violations, including LSG Sky Chef, for food that was subject to contamination, employees not washing hands thoroughly, touching food surfaces with bare hands and failure to clean and sanitize to protect food from contamination.
Fannie-Freddie Bailout Could Cost Taxpayers $1 Trillion
June 29th, 2010Via: CNBC:
For American taxpayers, now on the hook for some $145 billion in housing losses connected to Fannie Mae and Freddie Mac loans, that amount could be just the tip of the iceberg.
According to the Congressional Budget Office, the losses could balloon to $400 billion. And if housing prices fall further, some experts caution, the cost to the taxpayer could hit as much as $1 trillion.
FBI Rolls Up Russian Spy Ring
June 29th, 2010Via: New York Times:
They had lived for more than a decade in American cities and suburbs from Seattle to New York, where they seemed to be ordinary couples working ordinary jobs, chatting to the neighbors about schools and apologizing for noisy teenagers.
But on Monday, federal prosecutors accused 11 people of being part of a Russian espionage ring, living under false names and deep cover in a patient scheme to penetrate what one coded message called American “policy making circles.”
An F.B.I. investigation that began at least seven years ago culminated with the arrest on Sunday of 10 people in Yonkers, Boston and northern Virginia.
On Tuesday, an 11th accused member of the ring was arrested around 9 a.m. at an airport in Cyprus while trying to leave for Budapest, a police offical said. The suspect, a Canadian citizen, was released on bail and was expected to face an extradition hearing within a month.
“We are holding his passport until plans are made for his extradition,” said the official, who was not identified because he is not allowed to speak publicly about the case.
The documents detailed what the authorities called the “Illegals Program,” an ambitious, long-term effort by the S.V.R., one of the successors to the Soviet K.G.B., to plant Russian spies in the United States to gather information and recruit more agents.
The suspects were directed to gather information on nuclear weapons, American policy toward Iran, C.I.A. leadership, Congressional politics and many other topics, prosecutors say. The Russian spies made contact with a former high-ranking American national security official and a nuclear weapons researcher, among others. But the charges did not include espionage, and it was unclear what secrets the suspected spy ring — which included five couples — actually managed to collect.
After years of F.B.I. surveillance, investigators decided to make the arrests last weekend, just days after an upbeat visit to President Obama by the Russian president, Dmitri A. Medvedev, one administration official said. Mr. Obama was not happy about the timing, but investigators feared some of their targets might flee, the official said.
BP Worker Found Dead of “Natural Causes”
June 29th, 2010Via: nfwdailynews.com:
A BP cleanup worker was found dead in his Village Inn room Sunday afternoon.
The 48-year-old man’s identity has not been released.
“There are no signs of foul play,” said Michele Nicholson, spokeswoman for the Okaloosa County Sheriff’s Office. “I don’t think there was anything suspicious about it.”
A spokeswoman at Mobile’s Unified Command said the death was not related to the oil cleanup. The Port St. Lucie man had a heart attack. He was discovered at 4:05 p.m. by a coworker after he did not show up to work. He was contracted through the Parsons Corporation.
The death marks the third reported death of a person involved in the response.
Coast Guard Adm. Thad Allen, the National Incident Commander for the Deepwater BP Oil Spill response, reported two deaths on June 23.
One person was involved in a swimming accident at a hotel pool; the second was a Vessel of Opportunity operator in Gulf Shores, Ala. who shot himself in the head after a BP training meeting.
Bill Clinton: Blow Up The Well
June 28th, 2010Via: CNN:
RBS: “Get Ready for the Cliff-Edge”
June 28th, 2010Buy U.S. Treasuries? Anyway…
Via: CNBC:
The credit team at RBS in London are getting very bearish and warning clients to “get ready for the cliff-edge,” where prices of stocks and commodities will “collapse.”
RBS credit chief Andrew Roberts said the edge is just around the corner for the European banking industry and the economies of Europe and the US.
“Surely risks associated with us being wrong are low, i.e. rates stay where they are,” Roberts wrote in a research note.
“But risks associated with us being right are 10 percent returns in (10-year US Treasurys) and at the same time that equities/commodities will collapse far beyond what even some equity bears anticipate.”
As a result Roberts is advising investors to get into maximum long-duration bonds in safe-haven markets.
“This means the US, UK and Germany in that order,” he wrote. “Be long gold, think the unthinkable. Get ready for (sub-2-percent yields on two-year Treasurys, sub-2-percent on 10-year bunds) and the UK will not be far behind.”
A Quiet Crisis Whispers of Impending Poverty
June 28th, 2010Via: Automatic Earth:
“The ECRI leading indicator produced by the Economic Cycle Research Institute plummeted yet again last week to -6.9, pointing to contraction in the US by the end of the year. It is dropping faster that at any time in the post-War era.”
The latest data from the CPB Netherlands Bureau shows that world trade slid 1.7% in May, with the biggest fall in Asia. The Baltic Dry Index measuring freight rates on bulk goods has dropped 40% in a month.”
…
$2,5 trillion hasn’t done the trick, and neither will $5 trillion. Money velocity is way down and so is M3 broad money supply. How would Bernanke turn that around? The money simply isn’t going anywhere. Except into a deep dark void. It’s disappearing faster than Bernanke can print.
Once the deflation has run its ugly course, and it will be horrendous, printing presses may cause inflation, and given the level of ass-clowniness among economists it’s highly likely that they’ll pick such a course. They’ve never seen a crisis they couldn’t make worse.
Research Credit: dagobaz
Supreme Court Strikes Down Chicago Handgun Ban
June 28th, 2010The 2nd Amendment has anything to do with “self-protection”… Unless they’re talking about protection from the government.
Via: CNN:
In another dramatic victory for firearm owners, the Supreme Court has ruled unconstitutional Chicago, Illinois’ 28-year-old strict ban on handgun ownership, a potentially far-reaching case over the ability of state and local governments to enforce limits on weapons.
A 5-4 conservative majority of justices on Monday reiterated its two-year-old conclusion the Constitution gives individuals equal or greater power than states on the issue of possession of certain firearms for self-protection.
So Far, 400 Have Sought Medical Care After Visits to Escambia County Beaches
June 28th, 2010Via pnj.com:
The Escambia County Health Department lifted a health advisory on Pensacola Beach on Friday on the advice of a beach official and against the advice of a federal environmental official.
But the advisory was not lifted for Gulf Islands National Seashore’s Fort Pickens beach, immediately west of Pensacola Beach or Johnson Beach on Perdido Key.
And hours after the Pensacola Beach advisory was lifted, the health department asked for state approval to issue an oil-impact advisory that leaves the decision to swim in the Gulf of Mexico up to the discretion of individual beachgoers.
The signs would be posted on 41 of the 43 miles of Escambia County beaches — from the Florida-Alabama line to just west of Portofino Beach — impacted by oil.
Meanwhile, the Environmental Protection Agency plans to put decontamination stations along the beach, possibly as early as this weekend.
These moves send conflicting signals about how safe it is to swim in the Gulf of Mexico as the impacts of the Deepwater Horizon oil spill broadens.
Dr. John Lanza, director of Escambia County Health Department, said the reason for leaving the decision up to beachgoers on whether to swim is because the oil situation on the beach is “very dynamic.”
“We have a situation that changes from one hour to the next, from one tide to the next, from wave to wave, from one wind direction to another,” he said.
Lanza said this ever-changing environment is something “we’re going to face for weeks or months in the future.”
The oil impact signs would be posted indefinitely and warn beachgoers that oil has washed up on the beaches. But the impact advisory would not prohibit people from going swimming as the health advisory for Pensacola Beach issued from Wednesday to Friday morning did.
Similar to the health advisory, the impact advisory would warn beachgoers to avoid touching oily product on the beach and in the water, and it would advise them leaving the beach and seeking medical help if they experience respiratory problems.
So far, 400 people have sought medical care for upper or lower respiratory problems, headaches, nausea, and eye irritation after trips to Escambia County beaches, Lanza said.
…
Swimmers who did venture into the water questioned whether it was really safe to wade, swim and play in the Gulf, especially when they had to walk through a line of tar balls and stay clear of skimmers scooping up oil just 25 and 50 feet from the shore.
“I only went into the water up to my ankles. That’s as far as I wanted to go,” said Joe Chambers, 28, of West Pensacola as he scrubbed off oily residue from himself and his son, Ethan, 4, in the public showers at Casino Beach. “It doesn’t smell like the beach. It smells like a gas station. There are no fish in the water. There’s nothing alive in the water. I don’t know how public officials can just look at the water and make a call to reopen it for swimming.”
Carol Doster of Grand Isle, Miss., said her son Dallas, 12, was frightened by the oil that streaked his legs and arms after a five-minute swim in the Gulf on Friday. “It won’t rub off,” Doster said.
She said the two were not going to get in the water again.


