EdCone.com

Information wants to be free, "But unless we want digital newsrooms staffed by skeleton crews of a dozen or so reporters and editors, we have to accept that it costs money to cover news events, perform investigations and tell yarns."

John Kerry calls out George Will: "Dragging up long-discredited myths about some non-existent scientific consensus about global cooling from the 1970s does no one any good."

"The fortunes of the American economy have grown so alarming and the pace of the decline so swift that economists are now straining to describe where events are headed, dusting off a word that has not been invoked since the 1940s: depression." That's kind of depressing.

"During 2008 I did some dumb things in investments."

Take the time to read Warren Buffett's annual letter, which ends with an invitation to Berkshire's annual meeting, "our Woodstock for Capitalists."

There's scary stuff: "Local governments are going to face far tougher fiscal problems in the future than they have to date."

Analysis with a touch of philosophy: "Derivatives are dangerous. They have dramatically increased the leverage and risks in our financial system. They have made it almost impossible for investors to understand and analyze our largest commercial banks and investment banks...Participants seeking to dodge troubles face the same problem as someone seeking to avoid venereal disease: It’s not just who you sleep with, but also whom they are sleeping with."

And this: "America’s best days lie ahead."

Fitna comes to Capitol Hill.

More:

"If this becomes a conversation about free speech, go ahead and hand Geert Wilders the trophy because he wins...The issue isn't whether it's legal to screen Fitna in the LBJ room...We shouldn't try to get Fitna banned. And we shouldn't try to get Wilders deported. We should simply point out that Wilders highlights a choice for America."

"Today, I have come to speak to you about how the war in Iraq will end."

Or at least how US troops will come home this time.

SEC: Stanford ran "massive Ponzi scheme," made "bogus" loans to himself.

"I would hazard a guess that this is easily the worst outcome for any assets that have ever carried a 'triple A' stamp."

No wonder bankers hate mark-to-market pricing -- there's not much of a market for the junk they're holding.

An admittedly extreme case: "The average recovery rate for super-senior tranches of debt – or the stuff that was supposed to be so ultra safe that it always carried a triple A tag – has been 32 per cent for the high grade CDOs. With mezzanine CDO’s, though, recovery rates on those AAA assets have been a mere 5 per cent."

The newspaper, as it stands now, is a message from the past that tells us something about the future. In this, as someone who’s been in the media for over a decade, I see tremendous triumph and crushing, awful failure, all at once.

The 32% analysis no doubt identifies a lot of junk, but not everyone will have the same 32%. That's another problem for newspapers -- they've been omnibus vehicles, and the market is killing them with focused products.

Who knew?

"In a remarkable scene, Gibbs patiently and repeatedly explained that, no really, Obama actually won the election, that he'd explained exactly what he was going to do during the campaign, the American people understood and voted on it, and now he's doing it. During the campaign, Obama had pledged to cut taxes for 95% of American workers and end the catastrophic non-workingness of George Bush's trickle-down tax policy. Now, among some questioners, there seems to be confusion and alarm that Obama intends to implement that policy."

A number of Greensboro residents are feeling the pain of Stanford's fall from grace. A second group of local investors followed their UBS money managers to Stanford last fall, joining those who came over earlier from US Trust.

I'm told that several investors have all their assets under management at the local office, so the freeze on accounts means they have no access to their own money, even though most accounts reportedly do not contain any of the hinky Stanford products.

A meeting between Stanford's NC management and the federal receivers is said to be planned for Sunday.

The iconography of pelicans. I just finished Jesus Swept, and I'm still digesting it.

The funny and scabrous and set-in-North-Carolina parts I get, but this is a book about religion and non-belief with more questions than answers, which I guess is kind of the point.

Some Americans throw around the term "class warfare" every time there's a tax hike on the wealthy. Others argue that if there's a class war, the rich won.

Then there's the Euro model: "[P]rotesters in Berlin rage at their economic plight by targeting the most expensive cars -- symbols of German wealth and power." 29 cars have been torched this year.

It's been said that a European looks at a fancy car and wonders why someone else should have such good fortune, while an American thinks, "I gotta get me one of those."

First criminal complaint and arrest in Stanford case. I'm told the closing of the GSO office was not pleasant, with employees hustled out quickly and forced to leave behind laptops by the feds.

"The Rocky Mountain News publishes its last paper tomorrow." Sad.

Also: "Philadelphia Newspapers L.L.C., which owns The Inquirer, the Philadelphia Daily News, and Philly.com, filed for bankruptcy protection yesterday in a bid to restructure its $390 million in debt load."

And: "[Rupert Murdoch's] lifelong fondness for newspapers has become a significant drag on the fortunes of his company, the News Corporation."

Meanwhile: "The Courant is eliminating about 100 jobs this week, mostly by layoffs, as the longtime slide in advertising revenue gains speed in 2009."

Have I mentioned this week that the N&R was incredibly lucky not to get bought for nine figures of debt?

Who's going to do the reporting?

Lincoln Financial is among the big insurers downgraded by S&P on investment portfolio concerns. That follows a downgrade of LNC by A.M. Best.

The company has reduced its dividend to a penny a share. Previously: LNC brings the pain.

Replacements Ltd featured in USA Today article on dogs in the workplace. Link via Springboard, which gives a shout out to another working canine.

Rhino Schmoozefest, tonight at 6 at Revolution Mill Studios (click image to enlarge).

The renovated mill is worth seeing. This might be a good excuse to check it out.

Lisa Scheer shot this pic recently in Greensboro for her upcoming show on mill village communities.

SFB links to an extremely myopic column by Joel Stein, who seems to live in a Hollywood bubble:

The only people affected by plummeting real estate prices are the ones who bought a house that cost more than they could afford, hoping for a spike in value so they could sell at a profit or take out a new loan based on an increased value. Their home wasn't just a place to live; it was an investment they thought they could liquefy at will.

Well, no.

Lots of people who bought their houses to live in happened to buy as the market inflated. They are now stuck with devalued assets that carry mortgages reflecting the original prices.

And lots of people who bought their houses before the bubble now find it very difficult to sell them, or borrow against them for legitimate needs.

And one of the things ailing the financial system is the ongoing search for the bottom of the market.

And a lot of people who live happily in homes they can afford are getting swamped by the ripples from the housing collapse. And, well, you get the idea.

Yes, a lot of people speculated and overbought. Personal responsibility counts. I don't know if the Obama plan is a good one or not, I have not yet focused on the details. But that is some powerful stupid that Stein is dishing out.

Stanford office in Greensboro "temporarily closed."

Previously: "legitimate business seems to have been the focus of the Greensboro office."

Most Americans like what they're hearing from Obama, and he seems to be moving his agenda forward effectively.

But how long does he have to show results -- or, more accurately, to see improvements in the economy, for which he'll get credit (or blame) whether he deserves it or not?

One obvious cutoff point is the 2010 election season, that is, some point in the middle or third quarter of next year. Democrats will need some strong evidence of recovery to maintain their momentum from the last two elections (which may mean minimizing common off-year losses).

Americans understand that we have a long way to go, and that the fundamental problems with banks and housing that Obama inherited are not close to being fixed. But they won't wait forever -- although the Jindal-era GOP seems intent on helping them as much as possible.

Charlotte expects cutbacks at Wachovia-backed golf tourney: "Outrage isn't so simple when the benefits your (sic) sneering at might ultimately benefit you."

More:

Until now, the Wachovia has cultivated a reputation on the Tour as a top-notch tournament, from the cars the players drive in Charlotte to the perks their wives get to the swankness of the corporate parties.

All of which might be bothersome in this economic climate, especially when name in the tournament title is getting billions in bailout aid.

Yeah, it might be a just a little bothersome.

I feel bad for local merchants hit by the cutbacks, but I'm not sure how that's supposed to temper outrage at Wachovia.

$1.75 trillion. That's a lot of deficit. Banks and healthcare get a lot of money.

The most important decision of the Obama era has been made: they're getting a Portuguese Water Dog. Maybe -- they say they want a rescue dog, and those are hard to find if you're looking for a PWD.

Great dogs, based on the statistical sample I live with. Let's hope this doesn't make them so popular that they're overbred, which can lead to a lot of problems.

Maryland fans prank call Dook players, poorly.

"Sanders accepted a warm hug from a supporter while he waited for the television crew to set up. Rakestraw went to place a call to City Attorney Terry Wood, after which she immediately offered Sanders and Fox their jobs back." News reporting in this town continues its migration to alt-media.

Maybe Roubini was onto something with that six-months-til-nationalization thing: "The government set a six-month deadline for the biggest 19 U.S. banks to raise any new capital deemed necessary after a mandatory review of their balance sheets."

"Stale...nihilism...insane...a disaster for the party." Other than that, he loved it!

The Dumb Money creed rested on four pillars: perpetually low interest rates, perpetually rising asset prices (especially for housing), borrowers of all types remaining perpetually current, and perpetually strong markets for debt. The high priests of this cult were the nation's central bankers. In the Era of Cheap Money (the fall of 2001 through June 2004), Fed Chairman Alan Greenspan convinced us that we could have low interest rates despite inflationary pressures and global growth. His successor, Ben Bernanke, in 2002 began trying to convince us that we might have as much to fear from deflationas from inflation.

Complete with a link to this book; the Amazon page includes raves from Fed and Fannie Mae officials.

Fox 8's Bob Buckley is reporting a feature on six-word stories, the most famous of which is attributed to Hemingway: "For sale: baby shoes, never worn."

I told him I'd give it a shot, and I'd ask you to do the same. He'll be by with a camera tomorrow, and I'll share the best ones with him then.

Here's what I came up with while driving to work:

"I loved her, she loved him."

"He died alone. I was there."

"Mom's favorite? Who is laughing now?"

"Do what with my magic ring?" (Apologies to J.R.R. Tolkien)

Dear Gov. Perdue,

I guess our urban loop is not shovel-ready. I don't see it on your list.

The newspaper is nattering about stimulus funds for the greenway, which would be lovely, but what about our big unfinished road project?

I understand that you may be a little gun-shy, given our tendency to freak out when people actually drive on the roads we build, and you've got to grease the eastern NC machine, but geez this thing is taking forever.

Thnx,

Greensboro

Americans have made it clear that they want a certain kind of government, one that can field a strong military and also maintain popular programs like Medicare. Yet we are not paying nearly enough taxes to maintain those programs.

Well, for a long time we were promised we could have our cake and eat it too, but borrow-and-spend government is not sustainable. Interesting to see how people react if the tax-and-spend reality is made explicit.

"The difference might sound like something only an accountant would worry about, but it lies at the heart of two questions confounding both Washington and Wall Street: Are the nation’s banks sound? And are bank shares a good barometer for the health of the financial system?" Stress-testing ain't easy.

Meanwhile: Left-wing kook Nigel Lawson, "the longest serving chancellor of the exchequer under Margaret Thatcher, said the U.K. government may have to nationalize more banks to quell turmoil in financial markets."

"I had just taken a shot at the buck of a lifetime in my bedroom slippers."

Man kills deer from the comfort of his Oak Ridge home, writes about it in the newspaper.

The single angry comment at the bottom of the online version is an example of the letters that have run this week in the sports section; I wish the N&R would put those letters -- including Ramon Bell's defense of Jeff Myers' kill -- online with the article.

The outrage seems based on a perceived ethical breach, not some knee-jerk bias against hunting. Bell and Myers seem to have considered the ethics of the situation, and decided that it was okay enough to write about in a newspaper.

If, then maybe: "If actions taken by the administration, the Congress, and the Federal Reserve are successful in restoring some measure of financial stability — and only if that is the case, in my view — there is a reasonable prospect that the current recession will end in 2009 and that 2010 will be a year of recovery," Mr. Bernanke said.

"Gov. Bev Perdue today announced 70 highway and bridge projects throughout North Carolina will soon get under way using $466 million in federal economic stimulus funding.  The money is the first half the state will receive for highway improvements through the American Recovery and Reinvestment Act.  The new federal law requires states to obligate the first half of transportation stimulus money within 120 days of receipt, and the remaining half to projects within a year."

Announcement. Hard-to-read PDF of projects, including some high-dollar jobs in eastern NC.

Debating the role of government, at least at the WSJ.

Not sure how this statement: "This question brings forth basic philosophical divides that one might have expected last fall's vote to put to rest for now. But it didn't really do so. The 2008 presidential campaign, though momentous, wasn't particularly ideological."

Jibes with this one: "Democrats look to poll findings such as those in a newly released CNN/Opinion Research survey that finds 63% favor federal aid to homeowners who can't pay their mortgages, and 72% approve of expanding the federal government's 'influence' over the health system."

The Bad Bank alternative to nationalization. How do you force the banks to sell the junk at market rates? I guess by threatening to nationalize them.

Housing: sucks.

"The massive inventory overhang in the market and the surge in foreclosures mean prices will continue to fall rapidly."

Charlotte, once the lone positive blip on the screen, is ailing but still much healthier than places like Phoenix, Las Vegas, and San Francisco.

Contemplation vs agitation.

People immersed in the always-on realtime culture confuse their reality with actual reality. Crazy people suffer from much the same delusion.

A friend asked me the other day if I still read books for pleasure. I was happy to say yes. The quiet world is still there, and it's still valuable. You just have to carve out some space for it.

This argument from anecdote is not very convincing. Maybe he's targeting the wrong demographic. My own statistically-invalid methodology -- asking people in airports if they like their Kindles -- yields a more positive outlook. Anyway, the new one sounds even better.

I watched the HBO documentary on the Dook-UNC rivalry. It was OK, probably informative for auslanders, who will be forgiven if they come away thinking that the state of North Carolina consists of one farm, one road, two universities, and a barber shop.

It's a broad survey with no special depth. Better than the HBO doc on McCain supporters that makes it seem like everyone who voted GOP last November was a rapture-ready racist freak, but no THLTITBHF.

Attention was paid to both programs. Thus we heard about Dean Smith's role in desegregating the sport and molding the character of men, and learned that Dook fans dress like they're going to a Star Wars convention and think the games are about them. Episodes of rough play, alleged to be common on both sides, were illustrated with images of bleeding Carolina players. The great year of 1974 was highlighted. There are worse ways to spend an hour.

"American Insurance Group, the insurance giant that is 80-percent owned by the US government, is in discussions with the government to secure additional funds so it can keep operating after next Monday, when it will report the largest loss in U.S. corporate history." $60 billion, they say.

N&O busts self for over-reliance on one economist for quotes.

The N&R tends to go to Brod, Jud, and Debbage. A good group, but still too small. If they read blogs more, they could have found Dave Ribar pushing back against those Forbes numbers several days before they got around to calling Andy.

As a reporter, I fight the same tendency of going to the same well too often. Sometimes I lose. I remember when Spy mocked this tendency by quoting Norman Ornstein in every story of a particular issue.

"Yes, freshman guard Elliot Williams managed to move back about six feet without actually bouncing the basketball he was carrying, but that doesn't mean there is some sort of national conspiracy to favor the Blue Devils in every aspect of the game." And they play so hard, baybee!

Story less interesting than headline: "Denny's apologizes for Asheville breast-feeding incident."

Seriously, though: "Recently, Facebook has started 'pulling a myspace' by not allowing people to post profile pictures of babies nursing. The pictures have been reported as 'obscene' and have been removed- their posters warned not to repost or fear being kicked off of Facebook."

Quite a change from an earlier "cult of motherhood, abundantly illustrated in daguerreotypes from the eighteen-fifties that showed babies suckling beneath the unbuttoned bodices of prim, sober American matrons, looking half Emily Dickinson, half Leonardo’s 'Madonna and Child.'"

"Recent Civitas polling suggest that things have gone horribly awry for the Republican Party of North Carolina." From the campaign website of Chad Adams, a John Locke Foundation staffer who is running for chairman of the aforementioned state GOP.

"How much do the investors pay for and how much do the taxpayers pay for?" Which is to say, do we privatize profit and socialize risk?

Nobody wants to see investors get wiped out, but they bought into the banks. You're already on the hook for a lot of the bailout, why should you pay more to protect their investments?

Is it too late to get my Oscar picks in? I think Slumdog takes best pic, with Winslet and Penn taking the top acting awards. Some pics and snark here.