Somali Pirates to acquire Citigroup

December 2, 2008

(hat tip Walnuts)

November, 2008 (Bloomberg) — The Somali pirates, renegade Somalis known for hijacking ships for ransom in the Gulf of Aden, are negotiating a purchase of Citigroup.

The pirates would buy Citigroup with new debt and their existing cash stockpiles, earned from hijacking numerous ships, including most recently a $100 million Saudi Arabian oil tanker.  The Somali pirates are offering up to $0.10 per share for Citigroup, pirate spokesman Sugule Ali said earlier today.  The negotiations have entered the final stage, Ali said.  ”You may not like our price, but we are not in the business of paying for things.  Be happy we are in the mood to offer the shareholders anything,” said Ali.

The pirates will finance part of the purchase by selling new Pirate Ransom Backed Securities.  The PRBS’s are backed by the cash flows from future ransom payments from hijackings in the Gulf of Aden.  Moody’s and S&P have already issued a AAA investment grade rating for the PRBS’s.

Head pirate, Ubu Kalid Shandu, said “We need a bank so that we have a place to keep all of our ransom money.  Thankfully, the dislocations in the capital markets have allowed us to purchase Citigroup at an attractive valuation and to take advantage of TARP capital to grow the business even faster.”

Shandu added, “We don’t call ourselves pirates.  We are coast guards and this will just allow us to guard our coasts better.”

optionarmageddon.ml-implode.com

Posted in Politics | Tagged , , , , , , | Leave a comment

Louisiana State Government – ‘Year of the Wildebeest’

by JEREMY ALFORDGambit Weekly (excerpt)

 

In a few months’ time, Louisiana lawmakers will make their own pilgrimage to Baton Rouge — possibly for a special session in January, but definitely for the annual session in April. It’s as predictable as the wildebeest migration. Lawmakers, however, will arrive at their destination to find grazing opportunities as barren as the Serengeti Plain the wildebeests left behind. And just like the beasts, it’s all because of their own gluttonous ways. Fiscally, lawmakers will be forced to forage for whatever scraps the administration throws their way — and they won’t eat for free. Those who feed at the administration trough will have to toe the line, more like trained circus acts than wild animals.

Louisiana presently has an $865 million surplus, which will be doled out sometime next year by the administration of Republican Gov. Bobby Jindal. That rosy fiscal picture will give way, however, to an anticipated $1.3 billion shortfall for the fiscal year that begins July 1, 2009. In most households, the answer would be obvious: use this year’s surplus to mitigate next year’s shortfall.

Unfortunately, the surplus “cannot be used to mitigate the shortfall for Fiscal Year 2010,” says Commissioner of Administration Angele Davis, the governor’s chief budget officer. Under our state constitution, the surplus can be used for one-time expenses such as retiring debt, bolstering the coast and paying for construction projects. A surplus can even be placed in a savings account for future use, but it will still be confined to the same select areas of spending.

Rep. Joe Harrison, a Republican from Napoleonville, says a constitutional convention could be called to remove restrictions on surplus dollars and to alter the method in which budget cuts are applied. Jindal and his team are open to the idea, but it can’t happen soon enough to plug the coming $1.3 billion shortfall. Had lawmakers taken advantage of past opportunities to save money, the challenge might be less onerous. They gorged themselves on a $1 billion surplus earlier this year and increased spending in the current budget by another $1 billion this summer. Now the pastures aren’t so green, and state officials have no place to migrate.

Perhaps appropriately, Davis says the first items to be stripped from the coming budget will be lawmakers’ pet projects. Of course, that could just be the administration’s opening line in negotiations over the current $865 million surplus. Some lawmakers say the horse-trading has already started, with those on the receiving end expected to swallow Jindal’s budget cuts next year.

The predatory jockeying for the surplus dollars has taken solid form in a short period of time. The Capital Region Legislative Delegation, for instance, recently met with Davis and Jindal Chief of Staff Timmy Teepell to secure $60 million for Baton Rouge-area transportation projects. Senate Retirement Chairman Butch Gautreaux, a Democrat from Morgan City, is trying to line up $100 million to pay down debt in the state’s retirement systems. The overall tally, known as unfunded accrued liability, has eclipsed $10 billion; the requested $100 million is a drop in the proverbial bucket.

Truth is always hard to swallow. Lawmakers like to cut services about as much as wildebeests like to cross the dangerous Mara River. The gnus steel themselves for the task — to the point of sacrificing some of their own for the overall good of the herd — because they know they’ll find better times on the other side. Lawmakers, on the other hand, are not as willing to sacrifice. They fear another kind of population check: Louisiana voters at election time.

lanewslink.com

Posted in Politics | Tagged , , | Leave a comment

The high cost of FEMA’s learning curve

The high cost of FEMA’s learning curve

By GREG GARLAND
Advocate Westside bureau
Published: Dec 3, 2008

The Federal Emergency Management Agency faced a daunting task as victims of Hurricane Katrina moved out of trailers that had been serving as temporary shelters since the 2005 storm.

What was to be done with the more than 100,000 trailers deployed along the Gulf Coast? Worse, 80 percent to 90 percent were small travel trailers built with unsafe levels of formaldehyde that limited FEMA’s ability to resell them to the public.

The easy answer, and probably the best one for taxpayers, was to tow the whole lot of them to scrap yards and recover whatever FEMA could get and be done with it.

But this is the federal government and things are never that simple. The trailers instead have been towed to 21 so-called “staging areas” around the country.

FEMA estimates the cost to transport, store and secure the trailers at $1,000 per unit, per year. That adds up to a yearly expense for taxpayers of more than $100 million.

Hardly chump change.

About 50,000 of the trailers are stored at two sites in Louisiana, in Lottie and Melville. Expenses for those sites show why costs are so high.

For one thing, authorities said they were not able to find suitable land to park and store the trailers among the 250,000 acres the federal government already owns in Louisiana .

FEMA instead leased land from private owners. The agency is paying $79,467 a month for a 447-acre site in Lottie, and $101,888 a month for a similar tract in Melville, according to contract documents.

FEMA paid hundreds of thousands more to improve the property, once used to grow sugar cane and soybeans and to graze cattle. Meanwhile, armed guards working under contract provide round-the-clock security.

Jim Stark, FEMA’s assistant administrator for Gulf Coast recovery efforts, said the formaldehyde issue caught the agency off guard and disrupted plans for disposing of the trailers.

The agency planned to sell the trailers to disaster victims who wanted to keep them, he said. Others trailers were to go to small staging areas where a quick decision would be made about whether to sell them to the public or hold them for future disasters.

The agency has since decided, because of the formaldehyde issues, to auction all of the small travel trailers as scrap.

While it is tempting to blame the mess on an inept government bureaucracy, academicians who study how organizations work say that isn’t necessarily why things go wrong.

“It would be easier if bad things came from decisions made by dumb people,” said Donald F. Kettl, a political science professor at the University of Pennsylvania.

“Problems tend to come instead from organizations that try to handle things that go far beyond their usual, proven practice.”

After its early failures in responding to Katrina, FEMA rushed to prepare a strategy for dealing with overwhelming housing problems that the devastating storm left in its wake, he said.

“The rush to get things done meant some things didn’t get done right,” Kettl said.

Still, as costs continue to mount, FEMA has yet to set any firm timelines for disposing of the trailers and clearing the staging areas.

Asked in a recent interview why the agency isn’t moving more quickly to dispose of trailers it knows are going to be sold as scrap, Stark responded: “I don’t know why we can’t move faster on that. We should.”

Taxpayers can only hope the agency finds a way to turn the page quickly on the trailer saga before any more money is wasted storing and securing trailers of little value.

2theadvocate.com

Posted in Environmental Health Threats, FEMA Trailers, Politics | Tagged , , , , , , , , , , , | Leave a comment

New to the List – Notorious Landlords

Four new additions – two in GA and two in NY.

Atlanta, GA 
 
Auburn Glenn
49 Boulevard
Atlanta, GA 30312 
 
Lithia Springs, GA
 
Brodick Hill
7703 Lee Road
Lithia Springs, GA 30122
 
White Plains, NY
 
Bank Street Commons
15 Bank Street
White Plains, NY 10606
 
One City Place at City Center
One City Place
White Plains, NY 10601
Posted in Riverstone Residential | Tagged , , , , , | Leave a comment

Louisiana’s Katrina cottage failure is now Gov. Bobby Jindal’s mess

Posted by The Times-Picayune editorial staff December 02, 2008

In his inaugural address, Gov. Bobby Jindal spoke eloquently about our state government’s history of mediocrity, promising that his administration would mark “a new beginning.”

We can build, the governor said, “a Louisiana where incompetence is not a synonym for government.”

He is delivering on that promise in many aspects of his administration. But incompetent is still the way to describe the state’s failure to build a single Katrina cottage two years after landing $74.5 million in federal money for them.

All Louisiana has done so far is make Mississippi look like a million bucks. Our neighbor to the east, which got funding for its cottage program at the same time, has put occupants in 2,818 units.

That’s an embarrassing number next to Louisiana’s “0” — and that’s something Gov. Jindal needs to change.

The governor has already accomplished more efficient government in many important state functions, such as the state’s response to disasters. He has also held some administration officials accountable for their failures, as he did when the Department of Social Services botched an emergency food stamp program after Hurricane Gustav.

Why is the governor tolerating incompetence when it comes to the Katrina cottages?

This editorial page has been among the harshest critics of Louisiana’s bureaucracy-loving approach to the cottages. We tried persuasion, shame and even ridicule seeking to nudge Gov. Kathleen Blanco’s administration into action. Nothing worked.

When he took office, Gov. Jindal took the program away from the hapless state housing agency and put the Louisiana Recovery Authority in charge. Yet no cottage was built, and in October Gov. Jindal declared that “unacceptable.”

Here we are two months later, and his administration still hasn’t built a cottage. That’s unacceptable. The governor ought to give the program’s uncommitted funds to proven organizations that can build cottages and deliver them to individual private sites — as Mississippi has done.

We can easily think of two such entities: Habitat for Humanity, which has completed dozens of homes in the Musicians’ Village, and actor Brad Pitt’s Make It Right Foundation, which has finished several homes in the Lower 9th Ward. Maybe Louisiana can even recruit the officials who have led the cottage effort in Mississippi and put them in charge here.

This is more than an issue of state pride. As Gov. Jindal said in his inaugural address, the poor image of our state government has cost us in the past.

“Those stereotypes cost us credibility. They cost us investment. They cost us jobs,” he said, correctly.

That’s the real problem with inexcusable failures like the cottage program. It was a mess that Gov. Jindal inherited, but this mess is now his administration’s. It’s up to him to fix it.

nola.com

Posted in Louisiana Housing Finance Agency, Politics | Tagged , , , , | Leave a comment