Real expense of nuclear power evident at Fukushima

Resurgence was brewing for nuclear power, but the Fukushima disaster may have nipped it in the bud. However, the darker side of nuclear energy has been exposed by Japan’s struggle to contain radiation from the reactor damaged by the earthquake and tsunami. Costly new security measures that may be required because of the Fukushima disaster could make the price of nuclear power prohibitive to investors as a primary energy source in the future.

Loan guarantees for nuclear power

In a 2010 Gallup poll, about 62 percent of responders said that using nuclear power as a clean, reliable power source was a good idea. The Obama administration announced plans to provide $54.2 billion in loan guarantees for the construction of nuclear power plants. But even prior to the Fukushima disaster, it was doubtful that new nuclear reactors would be under construction in the U.S. anytime soon, according to Mark Cooper of the Vermont Law School’s Institute for Energy and the Environment. Cooper said the U.S. nuclear industry was a bubble that was going to burst just like any. This was said in Ottawa, Canada, at a presentation at the House of Commons. Billions in loan guarantees were put out for nuclear energy by the Bush administration in 2001 which was when the bubble began. By 2008 it became evident that the nuclear industry couldn’t deliver on costs. Natural gas became a cheap choice while the recession started. The other clean energy possibilities ! helped bring it down also.

Energy from nuclear power not as cheap as it used to be

It might become more costly to build new reactors during the Fukushima disaster. In 1979, there was a Three Mile Island accident in Pennsylvania. After this, as Cooper's research shows, there was a 95 percent increase in construction costs. As a result, households paid 40 percent more for electricity. After the 1986 Chernobyl disaster in Ukraine, construction costs rose another 89 percent, and electricity costs were 42 percent higher. Construction costs for nuclear reactors skyrocketed because of design changes required to address safety concerns. The changes in the United States to address the safety after the Fukushima problem are being addressed currently. The Nuclear Regulatory Commission is together working on it already.

Risking it is asking too much of investors

Now the Fukushima incident has occurred, investors are worried about where they put their money. Instead of invest in nuclear power plants, they are more likely to put money into clean energy alternatives for instance solar, wind and natural gas. Utilities may also pass on assuming the risk of nuclear plants. Financially, nuclear energy is not any longer a cheap choice to other sources of energy. Before taking into account the cleanup costs of a nuclear accident, onshore wind farms, for example, are up to 35 percent cheaper than nuclear plants. The world can get electrical power from several option sources. The nuclear power costs to the economy are avoided with them. It’s more lucrative for investors to invest in clean energy alternatives.

Articles cited

Reuters

reuters.com/article/2011/03/25/idUS423443138820110325

Fast Company

fastcompany.com/1742619/what-are-the-economics-of-nuclear-power-after-fukishima

The National

thenational.ae/lifestyle/personal-finance/japans-nuclear-woes-add-pressure-to-invest-in-green-energy

Google Books ruling depending on copyright and antitrust concerns

Google can’t scan all the world’s novels and make them available online, a judge said Tuesday . Using copyright and antitrust arguments, Google’s opponents successfully overturned a $125 million deal between Google and the publishing industry to complete the project. The negotiation could nevertheless be approved in the future, based on recommendations made by the judge issuing the ruling. Resource for this article – Google Books ruling based on copyright and antitrust concerns by MoneyBlogNewz.

What Google Books settled on

Google Books is an effort to scan every book ever published and make them available to everyone with an Internet connection. Due to the book-scanning project, Google got sued in 2005 by the Authors Guild and the Association of American Publishers. In 2008, Google agreed to pay $125 million up front and provide the means for authors and publishers to get paid any time their books are viewed online. The negotiation has been mired in the legal system as opponents such as Amazon, Microsoft, the Justice Department, copyright experts and some foreign governments argued against it. Denny Chin is the Manhattan federal court. On Tuesday, he said that it wouldn't be right for Google Books to do this because it would create a monopoly and exploit the works of copyright holders without permission.

The orphan works issue

Google Books would be able to digitize any book without permission unless the author and publisher opted out of the agreement because of a provision with Judge Chin objected to the most. Chin suggested that changing the provision to “opt in” could open the door to approval. The opt-out provision was written because of an issue with so-called “orphan works.”. Anytime a book has a copyright holder that cannot be found or is unknown, it’s an orphan work. According to Google, requiring an opt in leaves millions of orphan works out of Google Books, out of print and unavailable — exactly the issue Google Books was created to solve. Opponents of the settlement said the availability of orphan works is an issue best addressed by Congress, not the negotiation of a private lawsuit.

Issues on all of the antitrust

Google defends its book-scanning project as an effort to “democratize knowledge” by offering every book ever written, which is about 130 million and counting, in accordance with the business. Antitrust issues are there also though. Nobody would be able to compete with such a complete library as Google would have with this program. Other critics of Google Books said offering exclusive access to millions of novels would put Google in an unassailable position in Internet search. As the battle goes on, Google has scanned about 15 million novels. There are about 20 percent of copyrighted titles available on Google that the business licensed from publishers. Also, Google's Book Search has expired copyrighted novels accessible. Sample text can be accessed from copyrighted titles that haven’t been licensed to Google.

Information from

New York Times

nytimes.com/2011/03/23/technology/23google.html?_r=1&emc=eta1

Financial Times

ft.com/cms/s/2/f7ee4948-54bf-11e0-b1ed-00144feab49a.html#axzz1HR3IHDr1

PC World

pcworld.com/article/222963/judge_rejects_google_book_deal_over_monopoly_concerns.html

Expense of FHA loans set to increase again

Federally supported mortgages, last year, got more costly. April 18, 2011, the cost will increase again. This increase could make it even more difficult to get a mortgage in the tightening sector.

Where FHA loans go

There are home loans offered by the FHA. These are for specific home mortgage situations. The FHA does not give bad credit personal loans. Instead, it insures mortgages for other loan providers to lend. FHA-insured loans often require very little down payment – between 3 and 6 percent, instead of the standard mortgage down payment of 10 percent. FHA mortgages can be taken out for any amount up to $729,750. The intention is that borrowers who can make mortgage payments but have a tough time making a down payment can become homeowners.

FHA loan costs

For borrowers, getting a Federal Housing Administration loan isn’t significantly different than getting any other mortgage loan. Borrowers are required to pay mortgage loan insurance with FHA loans so that the federal government will repay the lender if something goes wrong. For many years, FHA loans required a 0.5 percent premium be paid as mortgage insurance. The amount went up 0.9 percent last year. In April, the cost is going to increase another 0.25 percent, bringing the total to 1.15 percent of the total loan amount. FHA borrowers have to pay 1.15 percent additional of the mortgage. This will be added to monthly payments. For a $157,000 mortgage, this increase will cost slightly less than $400 per year extra.

Good and bad of FHA

In the first quarter of 2011, the FHA wrote mortgage insurance for a portfolio of $72.1 billion worth of loans. This is fewer mortgages than in previous years, though the FHA also wrote more refinancing loans. The good news is that fewer FHA loans are currently entering default. The bad news is the lower number means the FHA has to raise rates to be able to remain solvent. The expense of mortgages will go up due to this. This might be an indication that the housing sector and the economy are recovering, or it could be an indication that the federal government is still nervous about the status of mortgage lending. Soon, the low interest rates are bound to end.

Articles cited

Tampa Bay Times

tampabay.com/news/business/realestate/fha-raises-mortgage-fee/1159586

Total Mortgage

totalmortgage.com/blog/fha/fewer-fha-loans-going-bad/11172

Investors considering medical marijuana IPOs

To different degrees, medical marijuana is legal in 15 of the United States. The business of supplying medical marijuana shops, and all associated products, can be very profitable. Now, two major marijuana industry corporations have declared plans for initial public stock offerings.

More marijuana use means more companies begin

Medical marijuana has created many new industries. There are several goods the companies offer. They consist of packaging equipment, processing equipment, fertilizers, humidifiers and grow lights. In just 10 years, the marijuana industry can be worth as much as $60 billion. The technology sector of the industry is also continuing to grow. There are wise phone apps to control "grow trailers" now. Also, there's always better hydroponic technology out there. Money is made by many individuals that start medical dispensaries and growth operations. They typically need short term loans to begin though. Typically between 70 and 120 percent market is done in stores.

Initial public offering soon

Companies that directly deal in marijuana exist in a difficult legal gray area. All marijuana is illegal on the federal level. All of the states have illegal recreational use of marijuana. That isn't different. Marijuana for medical use is legal in some states, however federal officials have raided state-compliant businesses in several states. General Cannabis Inc. and GrowOp Technology Ltd. sell equipment to grow your own marijuana. Neither of them sells the substance though to stay away from legal troubles. The corporations are hoping to be put on the stock exchanges for public trade by the end of 2011. The "growth industry" would be traded so many investors could hold parts of the corporations. The companies would get over $10 million from initial public offerings also.

Marijuana finances have problems

Medical marijuana is growing like crazy. Investors want a piece of the action. This growth, however, could be creating another financial bubble. Since medical use was made legal in California in 1992, the price of finished product has dropped from $3,000 or more per pound to $1,800 per pound. There is a lot of competition with warehouse-style operations franchising also. WeGrow is an example. Companies in the medical marijuana industry expect the business to grow. To be able to do that, more states have to make it legal.

Citations

Wall St

247wallst.com/2011/02/18/growop-the-hydroponic-ipo-for-medical-marijuana/#ixzz1F8E7ZdZo

Regulators considering approval of $39 billion AT&T deal

AT&T has opted to make an offer to purchase T-mobile. The merger would have to go through multiple approvals before starting. The Department of Justice and Federal Communication Commission would both have a say. Most consumers would partially benefit and partially be harmed by this merger. Article resource – Good news bad news for consumers as AT&T bids to buy T-mobile by MoneyBlogNewz.

What to anticipate with an AT&T/ T-Mobile company

Right now, T-Mobile is pretty popular in the United States It’s the fourth largest wireless provider. Deutsche Telekom AG owns T-Mobile. Both AT&T and Sprint-Nextel gave offers to T-Mobile. In order the purchase and merge with T-Mobile, AT&T is willing to put up $39 billion in money and stock. If the merger happened, the businesses would be bigger than Verizon Wireless. They would have over 130 million customers. The merger can't just happen. First the Federal Communications Commission and Department of Justice has to approve it. The DOJ must certify that the new business isn’t a monopoly. The FCC must certify that the AT&T / T-mobile merger wouldn’t violate communications law. These regulatory approvals could take a year or more.

Why the AT&T merger is good for your wallet

The AT&T/T-Mobile merger can be good. Consumers could benefit. Regulatory agencies will likely require the new, merged business provide extended service to underserved areas. There would be less of a strain. There are only so many wireless networks to go around. High-speed wireless broadband would become more readily accessible. Expanded service for any wireless customers would be available also.

Customers that might not benefit from the AT&T merger

The proposed merger is expected to increase income by $3 billion per year, most of which will come from the short term loans of customers. Combined, the new AT&T and Verizon would serve 75 percent of wireless consumers in the United States. The services together would be a duopoly. That would mean wireless service prices would increase. The combined company would likely follow AT&T’s lead in limiting wireless data and charging higher costs for overages.

Wireless service costing more and more

Wireless service costs might only go up from here, without contemplating the AT&T and T-Mobile merger. Taxes, just like the federal government taxes, are charged on cellular phone services by cities, states and municipalities. A lot of people end up paying a tax on mobile phone service that is fairly high. It’s about the same as cigarette and alcohol tax. Nationwide, the average tax is 16 percent. More income is paid, percentage wise, by a lower income individual than others for the very same service as the tax is regressive. A three to five percent tax is on landline telephone service.

Citations

Bloomberg

bloomberg.com/news/2011-03-20/at-t-agrees-to-buy-deutsche-telekom-s-t-mobile-usa-unit-for-39-billion.html

KSE Focus

ksefocus.com/wordpress-content/uploads/2011/02/2010-Tax-Study-Final-Tax-Notes-PDF.pdf

Android supplying far more smartphones than Research in Motion

Research in Motion is no longer the king of the hill for smartphones, as the Blackberry line has fallen behind Android. RIM, Microsoft and Apple goods have fallen behind Android, as the wildly popular operating system by Google started spreading like wildfire as soon as it was released. There are far more than 170 Android devices. Resource for this article – Android selling more smartphones than Research in Motion by MoneyBlogNewz.

Blackberry attractiveness dying

When it came to smartphones, Blackberry mobile phones were at the top of the list for Research in Motion. CNN reports the business isn't at the top anymore though. All of the competition has been beaten by the Google based Android system. With 31 percent of product sales, the Android beat Research in Motion product sales and got to the top. The first phone using the Android operating system was the HTC G1, which was released in Nov. 2009 and carried exclusively by T-Mobile. In early 2010, Android had only a 7 percent share of the smartphone sector, however the platform has loved constant growth since its introduction. Now, you will find a ton of Android OS mobile phones. Over 170 types of tablet computers and phones use it.

It is hard for old cell phones to make it

Android is the only smartphone in the United States to continuously grow even though there are four preferred platforms. Research in Motion at one point sold 42 percent of all smartphones, but Research in Motion product sales have dwindled to 30.4 percent between Feb. of 2010 and the end of Jan of 2011. For a while, Windows phones have been going down in industry share for smartphones. Now it’s lower than 10 percent. The iPhone has been good for Apple, but not good enough. It has stayed at a constant for the industry share. The activation of Android cell phones happens all the time. In fact, about 350,000 every single day are activated to begin service. A larger share of the industry was held by Symbian OS from Nokia than form Android until late 2010. This was when the Android sales came up and Symbian OS product sales went down.

Android Nokia cell phone not likely

Just about every phone business makes an Android phone, as Google licenses it for free, and adapting it is fairly simple for any developer, but Nokia isn’t really having it, in accordance with the Los Angeles Times. Nokia and Microsoft have a relationship now. It seems that Windows Mobile on Nokia phones will become the normal thing. Microsoft is reportedly going to pay Nokia $1 billion for the rights to put Windows Phone 7 on Nokia devices, which could possibly be a net benefit for both businesses if it is successful.

Articles cited

CNN

money.cnn.com/2011/03/07/technology/android/index.htm

Los Angeles Times

latimesblogs.latimes.com/technology/2011/03/Microsoft-reportedly-paying-nokia-more-than-1-billion-to-use-windows-phone-os.html

Wisconsin Assembly approves bill dropping collective bargaining rights

The controversial bill denying Wisconsin state workers the right to collective bargaining has been approved by the Wisconsin Assembly. However, the bill has a long way to go before becoming law. The Assembly is the lower house of the legislature, and the Senate may not be able to vote on the bill in the near future. The bill still must pass the Wisconsin Senate. Article source – Wisconsin Assembly passes bill curtailing collective bargaining by MoneyBlogNewz.

Passing the bill will not take place with too few Wisconsin State Senate members

Collective bargaining rights are likely to be taken from the state unionized workers with the Wisconsin Assembly SB11 bill that has approved. There isn’t enough Wisconsin U.S. Senate present to vote on the bill though. MSNBC states that this will mean the bill will be stuck not going anywhere. The 19 Republican members of the Senate are present, however that’s one person shy of the 20-person quorum, the minimum number of people required to officially vote on the bill. There are 14 Democrats that left the state in order to avoid voting on the bill for the Wisconsin Senate. The legislation cannot be voted on until their return. That means no laws can pass.

Assembly Democrats cry foul

The controversial bill was passed in a manner that Wisconsin Democrats view as dishonest. Wisconsin Assembly Republicans voted for a roll call vote after killing the debate after there were 60 hours of debate with Democrats filibustering with additional amendments for the bill. The bill passed 51 to 17 before some Democrats knew what was transpiring, and 28 failed to vote in time, in accordance with Bloomberg. Tries to reach out to the absent U.S. Senate Democrats by sending Wisconsin state troopers to their homes have been for naught, as they remain in exile in Urbana, Ill. for the time being.

Governor did not want to cooperate

There was a prank call done recently where Scott Walker, thinking he was talking to campaign donor Koch, said that he will not work with the unions on the state budget troubles in Wisconsin. The bill mandates union workers absorb more costs for their pension and health care plans, which unions have agreed to. However, the affected unions have maintained they need to retain collective bargaining rights, which Walker refuses to compromise on. Police and firefighter unions could be the only ones in Wisconsin that keep the collective bargaining rights.

Information from

MSNBC

msnbc.msn.com/id/41774667/ns/politics-more_politics

Bloomberg

bloomberg.com/news/2011-02-25/wisconsin-assembly-passes-bill-curbing-unions-collective-bargaining-power.html

From whence the food: Libyan refugees go starving

The Libyan turmoil has thrown desperate refugees into a spiral of hunger. Ships from the United Nations’ World Food Program have been turned away from loyalist ports, as Col. Moammar Gadhafi is using food shortages as a weapon against famished rebels. The United States and U.N. are undergoing Libyan humanitarian aid efforts at this time. Article source – Libya needs food: The struggles of humanitarian aid by MoneyBlogNewz.

Refugees have no other option but to ‘invade Europe,' claims Gadhafi

Gadhafi has made it very clear in his comments and proclamations that he plans to fight until death, although several states about the anti-Gadhafi repels vs. Gadhafi loyalists would suggest a compromise can be in the near future for Gadhafi. Reuters states that Gadhafi claims thousands of Libyan refugees will "invade Europe" if he occurs to fall. Reportedly, tens of thousands have already fled into Tunisia, although that country is also politically unstable.

Gadhafi may be right that the refugees will go anywhere humanitarian aid might be available considering hospitals in cities like Misrata are running low on supplies while the rebels are running out of food. Military analyst Shanshank Joshi of Britain’s Royal United Services Institute told Reuters that the rebels don’t have the upper hand, even though their fighting skills are "reasonably competent."

“Government forces have more mobility than the rebels thanks to airlift and a decent amount of road transport," said Joshi.

Refugees from Libya seek United Nations help

Valerie Amos is a U.N. aid coordinator. She explained that there are already over 1 million Libyans in need of humanitarian aid while more are being taken out of their homes and need it every day. Rebel towns like Misrata, which was recently home to 300,000 people, are considered high-priority areas by the U.N.

“Humanitarian organizations need urgent access now,” said Amos. “People are injured and dying and need help immediately.”

A no-fly zone was set over Libya by U.S. Secretary of State Clinton. She also said that Libyan refugees can count on $10 million in U.S. aid. Interested individual donors are being urged to contribute through the U.N. World Food Program.

Economic climate in Libya needs help

Christopher Albon wrote for the Atlantic that lots of food in Libya is imported since sustaining agriculture is really hard. Considering that food prices have risen 50 to 75 % in war torn areas of Libya, the panic of food shortage has set in. The seaport of Benghazi is where the United States could supply food to the rebel side of Libya in accordance with Albon. Such a move would be a meaningful policy choice for Obama and would keep away from the burden of U.S. military engagement.

Information from

The Atlantic

theatlantic.com/international/archive/2011/03/how-food-could-determine-libyas-future/72097/

Army Times

armytimes.com/news/2011/02/ap-clinton-us-sending-aid-forces-near-libyan-borders-022811/

Reuters

reuters.com/article/2011/03/07/us-libya-protests-idUSTRE71G0A620110307?pageNumber=1

World Food Product

wfp.org/donate/fillthecup_getinvolved

The Telegraph

telegraph.co.uk/news/wikileaks-files/libya-wikileaks/8294883/HEAD-OF-LIBYAS-ECONOMIC-DEVELOPMENT-BOARD-U.S.-LIBYA-RELATIONS-NOT-JUST-ABOUT-OIL.html

U.S. Embassy in Tripoli, Libya (via Wikileaks) Al Jazeera reports: Using food as a weapon in Libya

youtube.com/watch?v=OfF7DmCGhmU

Revenue might be on the horizon for Freddie Mac and Fannie Mae

Despite the last few years being dismal, troubled home loan backers Freddie Mac and Fannie Mae are slowly making headway toward being solvent again. More than $130 billion in loans from the Treasury has been pumped to the mortgage houses since they were placed in conservatorship in 2008. However, a brand new round of foreclosures is on the horizon, and that might undo any progress that has been made.

Staying in business is the goal of Fannie and Freddie

Freddie Mac and Fannie Mae were one of the largest recipients of emergency loans during the federal bailouts of the past several years. Both home loan houses received a combined sum in excess of $130 billion to keep the real estate industry afloat. Right now, less money is being lost by the two corporations. ABC states that this can be a good sign. The last quarter of 2010 states showed that Freddie Mac and Fannie Mae didn't lost too much. Only $1.3 billion from Fannie and $1.7 billion from Freddie was recorded. A $16.3 billion loss from Fannie and $7.8 billion loss from Freddie was reported in this same time of 2009. Fannie has asked for $2.6 billion and Freddie has asked for $500 million in loans, even with these losses decreasing.

Stopping the mortgage titans from ruling

For decades, Fannie Mae and Freddie Mac have played a crucial role in the real estate industry. To be able to get capital freed for loan providers to lend more mortgages, the corporations will purchase mortgages and resell them as investments. Fannie and Freddie's involvement in the home loan industry is frowned upon in the government right now where ways to get them out of it are being looked into. Treasury Secretary Timothy Geithner has admonished Congress to have a significant plan ready before attempting to vote on anything, according to USA Today. The housing finance industry might get destabilized while the real estate sector may have other troubles from these programs getting cut, Geithner warned. Geithner thinks a gradual program should be used. This is if a program is used at all.

Freddie and Fannie expected to get worse

In the coming months, more damage is anticipated to be hitting Fannie and Freddie. Until "robo-signing" cases are solved, several foreclosures cannot be completed while about 50 percent of mortgages in the U.S. are owned by Fannie and Freddie while 90 percent were created in the last few years. In the next few years, Treasury Secretary Geithner thinks that housing prices will go up in the next few years, no matter what occurs with Fannie and Freddie, Reuters states. Housing conditions in the last few years have caused home to recommend that buyers put down more cash. This will create stability.

Articles cited

ABC News

abcnews.go.com/Business/wireStory?id=12995329&page=1

USA Today

usatoday.com/money/economy/housing/2011-03-01-fannie-freddie-geithner_N.htm

Reuters

reuters.com/article/2011/03/01/us-usa-housing-geithner-idUSTRE72000P20110301?pageNumber=1

As Troubled Asset Relief Program ends, views mixed about outcome of program

The Troubled Asset Relief Program lived up to expectations, according to the director of the government bailout. In the final hearing on TARP before the Congressional Oversight Panel March 4, Timothy Massad, the U.S. Treasury official responsible for the program said it prevented a collapse of the financial system and will cost taxpayers less that at first suggested. However Troubled Asset Relief Program failed, in accordance with some on the panel, who pointed out that only Wall Street, not the economy as a whole, benefited from the plan. Source of article – At final hearing for TARP, critics call bailout program a failure by MoneyBlogNewz.

TARP's success, according to the Treasury

Finally, on March 4, the TARP was finally finished. About $411 billion was spent to bail out homeowners that had foreclosure risks to them, the U.S. auto industry and even the Wall Street banks. The Congressional Oversight Panel for TARP had a presentation given by Massad who’s the assistant secretary for the Treasury Department's Office of Financial Stability. He said the U.S. government had no other option but to use TARP to keep out of a depression, which worked. In Oct 2008 when the crisis was at its worst, Congress said that $700 billion might be spent on Troubled Asset Relief Program. It can have had less than that spent. The total could be $475 billion. Initially, the cost to working class individuals was projected at $341 billion, but TARP is estimated to end up costing just $25 billion. Bank of America, Goldman Sachs and Citigroup are among the big Wall Street Banks. They have paid back the bailout money already. About $277 billion in TARP money was a! lready paid back to the government.

Why critics say TARP was a dysfunction

The Congressional Oversight Panel pointed out the severely underperforming TARP-funded Home Affordable Modification Program as evidence that government bailout funds benefited Wall Street but left the rest of The United States in the lurch. The administration said 2 years back that HAMP would help many Americans. About 4 million homeowners facing foreclosure would be helped through the program. Loan modifications have only been given to about 600,000 home owners though. House Republicans try to get rid of the HAMP plan since the oversight panel said less than 800,000 foreclosures would be helped through the plan. This is something Massad warned against. Tens of thousands of homeowners would be without help in this dreary economy if the plan ends.

Is this a moral hazard?

Critics of TARP on the oversight panel contend that TARP condoned moral hazard by assuring Wall Street banks that they are indeed “too big to fail.”. The Wall Street banks know that in the future they will be bailed out. This is the reason why they’ll continue to maximize profits with unnecessary risks. The claim that Massad has that TARP was successful is something TARP critics won't believe. They say that this is since the United States economy is still really bad, the unemployment is still high and the large banks have not changed a thing. Joseph Stiglitz is a Nobel Laureate on the oversight panel. He said that Troubled Asset Relief Program was a "dismal failure" since the goal was to trigger an economic recovery.

Information from

Market Watch

marketwatch.com/story/treasury-tarp-ranks-among-best-crisis-responses-2011-03-04

ABC News

blogs.abcnews.com/thenote/2011/03/treasury-official-praises-tarp-expresses-concern-for-housing-sector.html

Reuters

reuters.com/article/2011/03/04/usa-financial-bailout-idUSN0422157520110304?pageNumber=2

Justice Department to quit defending Defense of Marriage Act

The Defense of Marriage Act, or DOMA, will not any longer be defended by the United States Department of Justice in court proceedings. DOMA was passed in the Clinton administration, and basically means that the federal government doesn’t recognize any homosexual marriage, regardless if it was legally performed. The law was decided to be unconstitutional from an ongoing discussion between the President and the Attorney General. Resource for this article – Justice Department to stop defending Defense of Marriage Act by MoneyBlogNewz.

White House and Justice Department declare Defense of Marriage Act unconstitutional

ABC states the lawsuits that are about the Defense of Marriage Act, or Defense of Marriage Act, won't be pursued by the Department of Justice anymore, the Attorney General told Congress. No matter where the same-sex marriage legally occurred, no territories or states in the United States have to recognize the same-sex marriage in accordance with Defense of Marriage Act which passed in 1996. The objection is not to the act itself, however rather Section 3 of Defense of Marriage Act, which legally defines marriage as a union between a man and a woman as far as the government is concerned. President Obama agrees with what Attorney General Holder believes. It’s unconstitutional to have Section 3 of Defense of Marriage Act.

Searching closer

The government had to determine whether to uphold DOMA due to 2 pending lawsuits, Pedersen v. OPM and Windsor v. United States. Because of constitutional grounds, both lawsuits challenge Section 3. The NY Times reports that they’re being done in court districts that didn’t have previous same sex marriage cases. The Justice Department reviewed those cases using the legal tests of “rational basis” and “heightened scrutiny.”. The reason for a "rational basis" test is to see if a law has no realistic reason. This is done on constitutionally legal laws. In order to decide if an unconstitutional law has a legitimate reason, a "heightened scrutiny" test is done. According to the Justice Department and the White House, it’s unconstitutional to have the same-sex marriage ban because there is no reason in the government to have the ban making it discriminatory.

Defense of Marriage Act is still there

DOMA lawsuits will not be pursued by the Justice Department anymore. Legislation has not been repealed though. The DOMA, including Section 3, remains in effect for the time being. The act is "flawed" according to President Obama. He claims that, to a certain extent, he is still expected to uphold it constitutionally. In order to see if legislation is worth protecting in court, the president can make orders. This would be to the Justice Department.

Citations

ABC

blogs.abcnews.com/politicalpunch/2011/02/president-obama-instructs-justice-department-to-stop-defending-defense-of-marriage-act-calls-clinton.html

NY Times

nytimes.com/2011/02/24/us/24marriage.html

Justice.gov

justice.gov/opa/pr/2011/February/11-ag-223.html

Every Providence educators get pink slips after budget debacle

The Providence Journal states that by the conclusion of the winter quarter, every 1,926 Providence public school educators can be out of a job. It’s a matter of a $ 40 million budget deficit, and the Providence School Board is dealing with it in full panic mode. The school board will make its final decision by March 1. Source of article – All Providence public school teachers to be fired at quarter end by MoneyBlogNewz.

Mass firings in Providence

Last year, Central Falls High School in the Providence area dismissed 88 teachers because students were not meeting standardized test score needs. Right now, the Providence School Board's move is unknown. The scale is the question. The 2011-2012 spending budgets have a $40 million shortfall. Superintendent of Providence Schools Tom Brady said the movie is a "precautionary action" in an e-mail.

"Since the full extent of the potential cuts to the school budget have yet to be determined, issuing a dismissal letter to all teachers was necessary to give the mayor, the School Board and the district maximum flexibility to consider every cost savings option, including reductions in staff," said Brady.

Teachers unions not all happy

The teachers' union leadership wasn't happy even though the Providence School Board may not be firing every Providence teachers.

"This is beyond insane," said Providence Teachers Union President Steve Smith. "Let's create the most chaos and the highest level of anxiety in a district where teachers are already under unbelievable stress. Now I know how the United States State Department felt on Dec. 7 , 1941," the day of the Pearl Harbor bombings.

Providence Mayor Angel Taveras told local press the unsettled state of city finances, coupled with the March 1 deadline, led to the decision to issue the statement that all Providence teachers would be fired. The move helped give "maximum flexibility." The Providence city government and school district needed this.

Losing educators means huge classrooms for the educators left

Firing public school educators in Providence doesn't make any sense. This is something Smith made clear.

"You have so many students," he said. "You need so many teachers. You have a student-teacher ratio of 26 to 1. Do the math."

Articles cited

CNN

articles.cnn.com/2010-02-24/us/rhode.island.teachers_1_teachers-union-troubled-school-reading-specialists?_s=PM:US

Providence Journal

projo.com/news/content/providence_teacher_layoffs_02-23-11_MCML6R3_v17.1a1cc6d.html

‘Exciting times in Rhode Island public education’

youtube.com/watch?v=wOCJ2Jnu4KY