Archive for February 26th, 2010

The Truth Will Come Out

Friday, February 26th, 2010

After all, the British courts won’t be intimidated by the efforts of the British government and security services to explain away and/or cover up their involvement in torture.

It’s a victory for the rule of law, as the article makes clear:

In a remarkable sequence of events, appeal court judges considering the case of Mohamed, who claims he was tortured, reinstated their findings about the security services, stating that some officials “appear to have a dubious record when it comes to human rights and coercive techniques”.

When will we see such clarity with respect to our own government’s involvement in torture, rather than the free passes and outright cover ups perpetrated by two successive Administrations?

Gorilla answers: “When the waterboard freezes over!”

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Revised Up (And Down)

Friday, February 26th, 2010

Today’s headline GDP number for Q4 2009 is 5.9%, an upward revision from the initial estimate of 5.7%…

But consumer and residential spending in the same quarter were revised downward.

Message: growth was mostly in inventories, consumer demand remains weak, and the housing market’s moribund.

In Movingforwardville, the headline number will be greeted with confidence, but in Goingbackwardville the numbers say it will be a long time before anything other than a jobless recovery comes to pass.

Gorilla says: “Read between the lines, and you’ll find the proper signs!”

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A Very Small Step

Friday, February 26th, 2010

The FDIC is experimenting with principal reductions for underwater borrowers.

It will only apply to those with loans from banks the FDIC has seized, and to severely underwater borrowers who continue to make payments over a long period of time, but it’s a positive step towards getting the housing crisis under control.

A far more effective step would be to allow bankruptcy court judges to modify loan terms, but that’s been defeated by the Congress twice. The banks remain the first pigs in line at the public trough.

Nothing much will happen with housing until supply (enormous and growing) and demand (puny) get back into balance.

Prices will have to fall further, perhaps 10-15% in the boom/bust areas of the country.

Gorilla thinks: “Washington is beginning to understand that propping up prices is at best a splintered crutch!”

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Blasting Away In Kabul

Friday, February 26th, 2010

Another suicide bombing in the Afghan capital, aimed at foreigners.

What’s interesting about this one is that the targets were Indian, which might indicate, yet again, that the Pakistan-India conflict is now being brought to Afghanistan by the Pakistani government.

Of course, happy bilateral talk also coincided with the bombing, so it seems clear both sides in that conflict are preparing for the day after the US departs.

Gorilla says: “Pakistan’s playing the middle against both sides!”

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