Climate Change

Of course, if it doesn't happen to those who deny global warming, it's not real -- right?

I think those who deny will say it's "global climate change", not "warming", then wring their hands and say "nothing can be done" -- this after its too late to do much of anything. Once again, I'm happy to be 70 years old, I might just miss most of the chaos that's coming.



Climate change to force 75 million Pacific Islanders from their homes
More than 75 million people living on Pacific islands will have to relocate by 2050 because of the effects of climate change, Oxfam has warned.


By Bonnie Malkin in Sydney
Published: 5:48AM BST 27 Jul 2009

A report by the charity said Pacific Islanders were already feeling the effects of global warming, including food and water shortages, rising cases of malaria and more frequent flooding and storms. Some had already been forced from their homes and the number of displaced people was rising, it warned.

"The Future is Here: Climate Change in the Pacific" predicted that many Pacific Islanders would not be able to relocate within their own countries and would become international refugees.

It urged neighbouring wealthy countries to take urgent action to curb their carbon emissions to prevent a large-scale crisis.

Half of the population of the Pacific live less than 1.5km from the coast and are incredibly vulnerable to sea-level rise and extreme weather. But as well as moving out, the report found that some countries had started adapting to the changing climate.

Fiji is attempting to "climate-proof" its villages by testing salt-resistant varieties of staple foods, planting mangroves and native grasses to halt coastal erosion in order to protect wells from salt water intrusion, and moving homes and community buildings away from vulnerable coastlines.

In the Solomon Islands officials are looking for land to resettle people from low-lying outer atolls, and those living in the outer atolls of the Federated States of Micronesia were also moving to higher ground. The tiny nation of Tuvalu also recently pledged to become carbon neutral by 2020.

Andrew Hewett, Oxfam Australia Executive Director, said it was vital that Australia started working with Pacific governments to plan for the impact of climate change.

As the wealthiest country in the region and the highest per capita polluter, Australia "must prevent further climate damage to the Pacific by urgently adopting higher targets" - reducing emissions by at least 40 per cent on 1990 levels by 2020 - and urging other developed countries to do the same, the report said.

The Australian government's commitment of $150 million (£75m) to help Pacific Islanders adapt to climate change needed to at least double, it said.

"It would be in Australia's interests to act now because, as the situation worsened, it would be called on to respond to more emergencies in the region," Mr Hewett told the Sydney Morning Herald.

With only months to go until the crucial UN negotiations in Copenhagen in December, Australia needed to show Pacific leaders it was willing to do its fair share to address one of the most pressing challenges in the region, he said.

"People are already leaving their homes because of climate change, with projections that 75 million people in the Asia-Pacific region will be forced to relocate by 2050 if climate change continues unabated. Not all will have the option of relocating within their own country, so it's vital that the Australian Government starts working with Pacific governments to plan for this now."

Pacific leaders will raise the issue of climate change with Kevin Rudd, the Australian prime minister, at the Pacific Islands Forum on Aug 4.

This actually happened before the Georgia debacle -- so, this was #58 while Georgia's six were 59 through 64.

I'd bet folks with money in any of those banks are rather happy the dreaded Federal Government is around to insure their losses.

I wonder where their "rugged individualism", "sink or swim on your own merits, own judgement" arguments are now?

Press Releases
Evans Bank, National Association, Angola, New York, Assumes All of the Deposits of Waterford Village Bank, Clarence, New York

FOR IMMEDIATE RELEASE
July 24, 2009
Media Contact:
David Barr
Office Phone: (202) 898-6992
Cell Phone: (703) 622-4790
Email: dbarr@fdic.gov

Waterford Village Bank, Clarence, New York, was closed today by the New York State Banking Department, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Evans Bank, N.A., Angola, New York, to assume all of the deposits of Waterford Village Bank.

The single office of Waterford Village Bank will reopen on Monday as a branch of Evans Bank, N.A. Depositors of Waterford Village Bank will automatically become depositors of Evans Bank, N.A. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use the existing branch until Evans Bank, N.A. can fully integrate the deposit records of Waterford Village Bank.

Over the weekend, depositors of Waterford Village Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of March 31, 2009, Waterford Village Bank had total assets of $61.4 million and total deposits of approximately $58 million. In addition to assuming all of the deposits of the failed bank, Evans Bank, N.A. agreed to purchase essentially all of the assets.

The FDIC and Evans Bank, N.A. entered into a loss-share transaction on approximately $56 million of Waterford Village Bank's assets. Evans Bank, N.A. will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-323-6111. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Friday and Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/waterford.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $5.6 million. Evans Bank, N.A.'s acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Waterford Village Bank is the 58th FDIC-insured institution to fail in the nation this year, and the first in New York. The last FDIC-insured institution to be closed in the state was Reliance Bank, White Plains, March 19, 2004.

What's going on in Georgia?

Press Releases
State Bank and Trust Company, Pinehurst, Georgia, Assumes All of the Deposits of the Six Bank Subsidiaries of Security Bank Corporation, Macon, Georgia

FOR IMMEDIATE RELEASE
July 24, 2009
Media Contact:
David Barr
Office Phone: (202) 898-6992
Cell Phone: (703) 622-4790
Email: dbarr@fdic.gov

The six bank subsidiaries of Security Bank Corporation, Macon, Georgia, were closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with State Bank and Trust Company, Pinehurst, Georgia, to assume all of the deposits of the six bank subsidiaries of Security Bank Corporation.

The six banks involved in today's transaction are: Security Bank of Bibb County, Macon, GA, with $1.2 billion in total assets and $1 billion in deposits; Security Bank of Houston County, Perry, GA, with $383 million in assets and $320 million in deposits; Security Bank of Jones County, Gray, GA, with $453 million in assets and $387 million in deposits; Security Bank of Gwinnett County, Suwanee, GA, with $322 million in assets and $292 million in deposits; Security Bank of North Metro, Woodstock, GA, with $224 million in assets and $212 million in deposits; and Security Bank of North Fulton, Alpharetta, GA, with $209 million in assets and $191 million in deposits.

The six banks had a total of 20 branches, which will reopen during normal business hours beginning tomorrow as branches of State Bank and Trust Company. Depositors of the six banks will automatically become depositors of State Bank and Trust Company. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until State Bank and Trust Company can fully integrate the deposit records of the six failed banks.

Over the weekend, depositors of the six banks can access their money by writing checks or using ATM or debit cards. Checks drawn on the banks will continue to be processed. Loan customers should continue to make their payments as usual.

As of March 31, 2009, the six banks had total assets of $2.8 billion and total deposits of approximately $2.4 billion. In addition to assuming all of the deposits of the failed bank, State Bank and Trust Company will acquire $2.4 billion in assets. The FDIC will retain the remaining assets for later disposition.

The FDIC and State Bank and Trust Company entered into a loss-share transaction on approximately $1.7 billion of the six banks' assets. State Bank and Trust Company will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.

Customers who have questions about today's transaction can contact the FDIC as follows:
Failed Bank FDIC Toll-Free Phone Number FDIC Website
Security Bank of Bibb County 1-800-822-0412 http://www.fdic.gov/bank/individual/failed/sb-bibb.html

Security Bank of Houston County 1-800-822-7182 http://www.fdic.gov/bank/individual/failed/sb-houston.html

Security Bank of Jones County 1-800-822-9247 http://www.fdic.gov/bank/individual/failed/sb-jones.html

Security Bank of Gwinnett County 1-800-822-1918 http://www.fdic.gov/bank/individual/failed/sb-gwinnett.html

Security Bank of North Metro 1-800-823-4939 http://www.fdic.gov/bank/individual/failed/sb-metro.html

Security Bank of North Fulton 1-800-823-3215 http://www.fdic.gov/bank/individual/failed/sb-fulton.html

The phone numbers will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT.

To assume all of the deposits and purchase assets from the FDIC as receiver, State Bank and Trust Company received a $300 million capital infusion from a group of 26 investors, led by Joseph Evans.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $807 million. State Bank and Trust Company's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. The failure of the six banks brings the nation's total number this year to 64, and the total for Georgia to 16. The last FDIC-insured institution to be closed in the state was First Piedmont Bank, Winder, on July 17, 2009.

This Week In Holy Crimes

Directly from Joe. My. God. Go to the original, bookmark the page - it's a fine blog


This Week In Holy Crimes

Over the last seven days...

Florida: Pastor Samuel Darin Taylor charged with defrauding his church of over $250K.
New York: Father James J. McDevitt charged with the sexual abuse of six boys.
Russia: U.S.-based Pastor Hio Sun Pak jailed for 18 months for bribing immigration officials to overlook illegal Chinese labor used to build his church.
Florida: Pastor Donnell Dewitt Williams charged with money laundering after probe reveals $400K in loans processed in the namea of his congregants.
Tennessee: Pastor John Franklin McCarroll charged with indecent exposure at public park. Bonus: Glory hole involved. Extra bonus: McCarroll frequently preached against gay marriage. Extra hilarious bonus: The motto of McCarroll's ministry is "Come as you are, but don't leave like you came."
Texas: Living Praise Christian Academy Prinicpal Darrell Dean Dunn charged with child molestation.
South Carolina: Pastor Leon Dizzley convicted of money laundering for selling nine luxury cars to drug dealers.
New York: Wife of Pastor Mike Bowers charged with 14 felony counts of defrauding a United Nations fund intended to help women in Iraq.
Maryland: Father Aaron Joseph Cote found guilty of child molestation.
Pennsylvania: Christian songwriter and schoolteacher Heather Lynn Zoe charged with having sex with minors. Bonus: Songs on Zoe's debut CD include Face Down and Over And Over.
New York: "Prosperity gospel" motivational speaker Jeffrey Locker found strangled in Harlem. Police suspect the accomplices of the prostitute that Locker had been patronizing.

This week's winners:
India: Father Thomas Kottoor, Father Jose Puthrukayil, and Sister Mary Sephy charged with murdering Sister Mary Abhaya after she walked in them having a threeway. Police say the Holy Trinity beat Sister Abhaya with an axe handle and threw her into a convent well where she drowned.

This From "The Economic Populist" blog - Follow link to go there -- then bookmark it. Varying views from different contributers.

We Are So Screwed

Submitted by manfrommiddletown on Sat, 07/18/2009 - 06:35.

• CIT
• Commercial Real Estate
• Initial claims
• unemployment

Earlier this week, Bondad, Daily Kos's resident economic analyst suggested that there is a Black Swan myth. That's to say that the economy is starting to get better, and that there aren't any potentially catastrophic combinations of economic events on the horizon.

The idea of the Black Swan isn't that events are entirely unforseeable, only that they do not agree with what we think to be true of the world. Because much of what we assume to be economic "truth" occurs operates at a high level of abstraction, linkages that are invisible when we look down on high are missed. And these linkages, like a web, create the possibility for a small event to cascade into something far larger, and more harmful. It often is not any one thing, but the combination of many that creates true crisis. I will get to this, but first let's not fool ourselves into thinking that it's morning in America just yet.

Background

First, the claim that things are starting to improve on the employment front is far more complex than hunky dory picture painted by putting up this graph:

The good news is that last week seasonally adjusted initial claims for unemployment were dropping:

In the week ending July 11, the advance figure for seasonally adjusted initial claims was 522,000, a decrease of 47,000 from the previous week's revised figure of 569,000. The 4-week moving average was 584,500, a decrease of 22,500 from the previous week's revised average of 607,000.

These are the numbers used to produce the graph above. What's not mentioned is that this set of numbers is produced through the manipulation of the actual numbers to conform to a statistical model that attempts to remove seasonal variance to make numbers comparable across seasons. Strip that statistical model away and the numbers tell a far different story.

The advance number of actual initial claims under state programs, unadjusted, totaled 667,534 in the week ending July 11, an increase of 86,389 from the previous week. There were 483,981 initial claims in the comparable week in 2008.

Say again what. The numbers fell, but they actually rose? So which one is right. The hard answer is that they both are supposed to be, but they clearly aren't. Why?

Because the expectations ingrained in the model are wrong. It's a baby black swan. Or more to the point it's a lot of people with a lot of education being incredibly ignorant. What am I talking about?

The seasonal adjusting model operates from the known past, and assumes that there will be summer layoffs for retooling in the auto industry at this time of year. This means that it deflates the actual number of adjusted claims to match what "should" be happening at this time of year. That didn't happen this year. The auto layoffs came early because GM and Chrysler shut down while they went through bankruptcy proceedings. Now that GM is out of court, they've called the guys and gals back in the last week. This has really fucked with the models used to create seasonally adjusted numbers.

The number of Americans filing claims for unemployment benefits fell last week to the lowest level since January, depressed by shifts in the timing of auto plant shutdowns.

Initial jobless claims dropped by 47,000 to 522,000, lower than forecast, in the week ended July 11, from a revised 569,000 the prior week, the Labor Department said today in Washington. The number of people collecting unemployment insurance plunged by a record 642,000, also reflecting seasonal issues surrounding the closures at carmakers.

A Labor analyst said the distortions may play havoc with claims data for another couple of weeks. General Motors Co. and Chrysler Group LLC accelerated shutdowns this year heading into bankruptcy, months before the traditional July closings. Through the gyrations, job losses may subside amid signs the housing and manufacturing slumps are easing.

The distortion started in April and May when large numbers of autoworkers were put on layoff at a time when the model said that plants should be going full bore. It helps to look at the seasonally adjusted and unadjusted numbers from the start of the year to now to get an idea of how this wreaks havoc on the seasonally adjusted reported numbers. As I suggested to New Deal Democrat in Bondad's diary, it's likely that the seasonal adjustment of numbers is obscuring an underlying trend.

I suggested that it would look something like this (blue is seasonally adjusted, red is actual):

If we mock up the seasonally adjusted and real numbers since the start of the year we get this:

Again, there are two different stories, if you want a happy ending you use the blue, seasonally adjusted line. If you want to be more honest about what's happening you use the red line, and you see that unemployment is actually on the rise after having settled down. And worse, this whole measure may not be adequately capturing unemployment. The numbers for initial claims only cover people who are collecting unemployment insurance, but the unemployment rate that we hear about all the time (U-3) includes a much broader group of people

Yesterday the new unemployment statistics came out from the BLS.
And, the numbers are ugly, 15 states and DC have unemployment rates over 10%, and another 6 are over 9%.

So again, we have competing versions of the truth being presented to us statistically. The seasonally adjusted initial claims suggest that the unemployment situation is improving. The new U-3 ("unemployment) figure suggests that things are still declining. Why the difference?

At least part of the story is that only a portion of the currently unemployed are covered by unemployment insurance. The percentage covered is scandalously low in some areas. For example in Washington, DC only 15% of the unemployed are receiving unemployment benefits. In Pennsylvania, on the other hand, that number is 77%. I've laid this out across the nation on the map below.

Throughout most of the country, the initial claims figure covers less than half of the unemployed. It only gives half the story, literally, and as the recession drags on people are increasingly using up all their unemployment benefits, and still without a job. By the end of the year something like 100,000 people will be in this position if current trends continue.

All the things I've brought up suggest that we should be suspicious of the initial claims number as a measure of unemployment, and that things are still pretty bad out there. It's a problem because these models create expectations, and when those expectations are wrong, the response when the truth comes out is shock and awe. Things go awry, and have an outsized impact, lowering consumer confidence and further hurting the economy. And on top of all this, two very big black swans are getting ready to kiss.

Black Swans on the Horizon

Something like 70% of our economy is based in consumer spending. One of the things that keeps this running smoothly is a process called factoring.

Basically factoring works like this. Let's say that I am a shoe store. I buy shoes from the factory and sell them to customers. When I buy shoes I have a period of time (let's say 60-90 days) to pay shoe factory.

If you are the shoe factory, you don't really want to wait 60-90 days for payment. But you have an option, rather than waiting 60-90 days for me to give you cash, you can sell that obligation to a third party. So you get cash from the factoring company, and I pay that factoring company the money instead of you. You are going to get less than the full amount of money that I owe you, but you are going to get that money now. This means you can buy supplies to buy more shoes now with money in hand instead of having to take out a loan. This is the factoring process.

This is what CIT Group does for thousands of small retailers, including franchisees (like Dunkin' Donuts). CIT Group has a serious problem, they are on the verge of bankruptcy.

What would this mean?

In an environment where there is little credit available to retailers, it would mean that they would be unable to get product into stores. So basically empty shelves, potentially into the holiday season. And, of course empty shelves will mean that many businesses will be forced to close. That means more people out of work in the retail industry.

It doesn't end there. The problem is that if companies have to go back to waiting 60-90 days for payment, they have to cut production. And that means that the people who make shoes, and the like, are out of work also.

In the apparel , something like 60% of the industry depends on CIT for factoring. That could lead to huge disruptions if they go bankrupt.

CIT going bankrupt could mean that thousands of retail shops, distributors, and apparel factories could go out of business. It's the same story in many other sectors. This alone could cause a great loss of jobs.

But, it's worse than that. Any sort of retail collapse is going to mean that lots of commercial real estate suddenly becomes vacant.

This comes at a time when the commercial real estate market is extremely shaky.

The $3.5 trillion commercial real estate market is a ticking “time bomb” that may lead to a second wave of losses at large U.S. banks, congressional Joint Economic Committee Chairwoman Carolyn Maloney said.....

There were 5,315 commercial properties in default, foreclosure or bankruptcy at the end of June, more than twice the number at the end of last year, with hotels and retail among the most “problematic,’ Real Capital Analytics Inc. said in a report yesterday. Losses on commercial mortgage-backed securities, or CMBS, will total 9 percent to 12 percent of the market, or as much as $90 billion, said Richard Parkus, a research analyst for Deutsche Bank Securities in New York.

And it's worse than that. Remember that through the magic of Credit Default Swaps (CDS), a $90 Billion nominal loss may lead to an amount 10-20 times that being lost in derivatives markets. Which means the exposure for banks could be huge. And it's not just any banks that are in danger here:

A disproportionately high number of small and medium-sized banks have “sizable exposure” to commercial real estate loans, and delinquency rates at around 7 percent in the first quarter are almost double from a year ago, he said.

In other words if there has to be a rescue, we are likely going to see large banks based in New York swallowing up local and regional banks across the country at fire sale prices. And the concentration of financial power in this country will continue apace.

It's not the CIT situation or commercial real estate alone that can do the real damage, but together the situation is made worse.

A CIT bankruptcy could lead to spiraling retail closures, creating large numbers of distressed commercial properties. Banks would have to hold on even tighter to cash to stay solvent in this environment, meaning less money lent. Less money lent means retail and production companies have less ability to ride out the recession through deficit financing. Which means even more commercial real estate goes vacant. And so on, and so on, until a horrible amount of damage has been done.

This has the smell of a real Black Swan, and it comes at a time when people (falsely) believe that things are finally improving.

• manfrommiddletown's blog

LATE BREAKING NEWS!!

POSTED July 16, 2009

Goldman Sachs in Talks to Acquire Treasury Department

Sister Entities to Share Employees, Money

In what some on Wall Street are calling the biggest blockbuster deal in the history of the financial sector, Goldman Sachs confirmed today that it was in talks to acquire the U.S. Department of the Treasury.

According to Goldman spokesperson Jonathan Hestron, the merger between Goldman and the Treasury Department is "a good fit" because "they're in the business of printing money and so are we."

The Goldman spokesman said that the merger would create efficiencies for both entities: "We already have so many employees and so much money flowing back and forth, this would just streamline things."

Mr. Hestron said the only challenge facing Goldman in completing the merger "is trying to figure out which parts of the Treasury Dept. we don't already own."

Goldman recently celebrated record earnings by roasting a suckling pig over a bonfire of hundred-dollar bills.

Elsewhere, conspiracy theorists celebrated the 40^th anniversary of NASA faking the moon landing.

And in South Carolina, Gov. Mark Sanford gave his wife a new diamond ring, while his wife gave him an electronic ankle bracelet

Bank Failures #54, 55, 56, 57

Bank Failure #54: First Piedmont Bank, Winder, Georgia

Bank Failure #55: BankFirst, Sioux Falls, South Dakota

Bank Failures #56 & #57: Temecula Valley Bank, Temecula, CA and Vineyard Bank, Rancho Cucamonga, CA

I love them "green shoots". Meanwhile, all the big guys seem to be making record profits --- or, at least they are SHOWING record profits.

This from FDIC:

Bank Failures in Brief

---

2009

The list of Bank Failures in Brief is updated through July 17, 2009. Please address questions on this subject to the Customer Service Hotline (telephone: 888-206-4662).

July

Temecula Valley Bank, Temecula, California, with approximately $1.5 billion in assets, was closed. First-Citizens Bank & Trust Company, Raleigh, North Carolina, has agreed to assume all deposits, excluding certain brokered deposits (approximately $1.3 billion). (PR-126-2009)

Vineyard Bank, N.A., Rancho Cucamonga, California, with approximately $1.9 billion in assets, was closed. California Bank & Trust, San Diego, California, has agreed to assume all deposits, excluding certain brokered deposits (approximately $1.6 billion). (PR-125-2009)

BankFirst, Sioux Falls, South Dakota, with approximately $275 million in assets, was closed. Alerus Financial, National Association, Grand Forks, North Dakota, has agreed to assume all deposits (approximately $254 million). (PR-124-2009)

First Piedmont Bank, Winder, Georgia, with approximately $115 million in assets, was closed. First American Bank and Trust Company, Athens, Georgia, has agreed to assume all deposits (approximately $109 million). (PR-123-2009)

Computer Problems

Last Thursday my computer went out. I tried to reboot --- but nothing worked.

Fortunately my sweetie was once a tech. She bought a new case, with a new power supply (for less than a skimpy Sony power supply would have cost) moved everything, figured out how the proprietory connectors worked, and hooked me up.

I now have an old computer in a new case, with much more room to work, bigger power supply, new fans -- and will be adding more memory and a new drive (when we can find a good sale).

With a little luck, I'm good for another 3 - 4 years (fingers crossed).

Anyway, that's why there's been nary a peep from me.

By the way, last Friday, #53 bit the dust (bank, that is).

When will the big ones start to go?

Distressed Commercial Property in U.S. Doubles to 108 BILLION

Distressed Commercial Property in U.S. Doubles to $108 Billion

By David M. Levitt

July 8 (Bloomberg) -- Commercial properties in the U.S. valued at more than $108 billion are now in default, foreclosure or bankruptcy, almost double than at the start of the year, Real Capital Analytics Inc. said.

There were 5,315 buildings in financial distress at the end of June, the New York-based real estate research firm said in a report issued today. That’s more than twice the number of troubled properties at the end of 2008.

Hotels and retail properties are among the most “problematic” assets following bankruptcy filings by mall owner General Growth Properties Inc. and Extended Stay America Inc., according to the report. The scarcity of credit is causing property defaults in all regions and among every investor type, Real Capital said.

“Perhaps more alarming than the rapid growth in the distress totals is the very modest rate at which troubled situations are being resolved,” the report said.

About $4.1 billion of commercial properties have emerged from distress, according to Real Capital.

“In far more situations, modifications and short-term extensions are being granted, but these can hardly be considered resolved, only delayed,” the study said.

The June figures issued today are preliminary.

To contact the reporter on this story: David M. Levitt in New York at dlevitt@bloomberg.net.

"Only A Matter of Time"

This from "When Giants Fall" -- it doesn't matter if you agree or not -- it's still an interesting read.

Only a Matter of Time

When I wrote Financial Armageddon and, later, When Giants Fall, my sense was that the Great Unraveling would entail a series of overlapping crises: first financial, then economic, social, and finally geopolitical.

So far, in my view, we have moved some way through the initial phase (though there are still a few more disasters still to come), and the next stage, the economic crisis, has probably shifted into second gear.

In regard to the third or "social" phase, however, we've yet to see any real traction. However, I believe it is only a matter of time -- and, apparently, so does The Telegraph's Ambrose Evans-Pritchard, as he notes below in "The Unemployment Timebomb Is Quietly Ticking" -- before things begin to flare up on that front.

One dog has yet to bark in this long winding crisis. Beyond riots in Athens and a Baltic bust-up, we have not seen evidence of bitter political protest as the slump eats away at the legitimacy of governing elites in North America, Europe, and Japan. It may just be a matter of time.

One of my odd experiences covering the US in the early 1990s was visiting militia groups that sprang up in Texas, Idaho, and Ohio in the aftermath of recession. These were mostly blue-collar workers, – early victims of global "labour arbitrage" – angry enough with Washington to spend weekends in fatigues with M16 rifles. Most backed protest candidate Ross Perot, who won 19pc of the presidential vote in 1992 with talk of shutting trade with Mexico.

The inchoate protest dissipated once recovery fed through to jobs, although one fringe group blew up the Oklahoma City Federal Building in 1995. Unfortunately, there will be no such jobs this time. Capacity use has fallen to record-low levels (68pc in the US, 71 in the eurozone). A deep purge of labour is yet to come.

The shocker last week was not just that the US lost 467,000 jobs in May, but also that time worked fell 6.9pc from a year earlier, dropping to 33 hours a week. "At no time in the 1990 or 2001 recessions did we ever come close to seeing such a detonating jobs figure," said David Rosenberg from Glukin Sheff. "We have lost a record nine million full-time jobs this cycle."

Earnings have fallen at a 1.6pc annual rate over the last three months. Wage deflation is setting in – like Japan. Interestingly, The International Labour Organisation is worried enough to push for a global pact, fearing countries may set off a ruinous spiral by chipping away at wages try to gain beggar-thy-neighbour advantage.

Some of the US pay cuts are disguised. Over 238,000 state workers in California have been working two days less a month without pay since February. Variants of this are happening in 22 states.

The Centre for Labour Market Studies (CLMS) in Boston says US unemployment is now 18.2pc, counting the old-fashioned way. The reason why this does not "feel" like the 1930s is that we tend to compress the chronology of the Depression. It takes time for people to deplete their savings and sink into destitution. Perhaps our greater cushion of wealth today will prevent another Grapes of Wrath, but 20m US homeowners are already in negative equity (zillow.com data). Evictions are running at a terrifying pace.

Some 342,000 homes were foreclosed in April, pushing a small army of children into a network of charity shelters. This compares to 273,000 homes lost in the entire year of 1932. Sheriffs in Michigan and Illinois are quietly refusing to toss families on to the streets, like the non-compliance of Catholic police in the Slump.

Europe is a year or so behind, but catching up fast. Unemployment has reached 18.7pc in Spain (37pc for youths), and 16.3pc in Latvia. Germany has delayed the cliff-edge effect by paying companies to keep furloughed workers through "Kurzarbeit". Germany's "Wise Men" fear that the jobless rate will jump from 3.7m to 5.1m by next year. The OECD expects unemployment to reach 57m in the rich countries by the end of next year.

This is the deadly lag effect. What is so disturbing is that governments have not even begun the spending squeeze that must come to stop their countries spiralling into a debt compound trap.

French president Nicolas Sarkozy, with a good nose for popular moods, says: "We must overhaul everything. We cannot have a system of rentiers and social dumping under globalisation. Either we have justice or we will have violence. It is a chimera to think that this crisis is just a footnote and that we can carry on as before."

The message has not reached Wall Street or the City. If bankers know what is good for them, they will take a teacher's salary for a few years until the storm passes. If they proceed with the bonuses now on the table, even as taxpayers pay for the errors of their caste, they must expect a ferocious backlash.

We are fortunate that the US has a new president enjoying a great reservoir of sympathy, and a clean-broom Congress. Other nations must limp on with carcass governments: Germany's paralysed Left-Right coalition, the burned-out relics of Japan's LDP, and Labour's death march in Britain. Some are taking precautions: Silvio Berlusconi is trying to emasculate Italy's parliament (with little protest) while the Kremlin has activated "anti-crisis" units to nip protest in the bud.

We are moving into Phase II of the Great Unwinding. It may be time to put away our texts of Keynes, Friedman, and Fisher, so useful for Phase 1, and start studying what happened to society when global unemployment went haywire in 1932

More on Bank Failures

Six Illinois Banks, One in Texas Shut by Regulators (Update1)

By Ari Levy and Flynn McRoberts

July 2 (Bloomberg) -- Six banks in Illinois and one in Texas were seized by regulators as the deepening financial crisis pushed the toll of failed U.S. lenders this year to 52, the most since 1992.

Twelve banks have failed this year in Illinois, the most of any state. The seven lenders seized today, with total assets of $1.49 billion and deposits of $1.34 billion, were closed by state or federal regulators and the Federal Deposit Insurance Corp. was named receiver, according to statements from the FDIC. Buyers were named for each of the closed institutions.

The Illinois banks are affiliates of Peotone Bank & Trust Co., in Peotone, Illinois, about 45 miles (72 kilometers) south of Chicago. The failures resulted primarily because of soured loans and losses on investments in collateralized debt obligations, the FDIC said. Illinois, with an unemployment rate above the national average, was one of seven states to begin the fiscal year yesterday without a spending plan.

“The six failed Illinois banks are all controlled by one family and followed a similar business model that created concentrated exposure in each institution,” the FDIC said. CDOs, which packaged bonds and loans into notes of varying risk and yield, lost money as real estate defaults soared.

Regulators this year have closed the most banks since the savings-and-loan crisis of the 1990s as lenders struggle with mounting losses on mortgages and commercial loans. The total for 2009 is more than double the 25 banks shuttered in 2008 and surpasses the 50 that were closed in 1993. The prior year there were 181 failures or government-assisted transactions.

FDIC Fund

The FDIC estimates today’s seizures will cost its insurance fund $314.3 million. The regulator imposed an emergency fee in May to raise $5.6 billion to rebuild the fund, which has deteriorated in the past 18 months. More assessments are possible, the FDIC said.

Illinois Governor Pat Quinn, a Democrat, refused to sign a budget because lawmakers failed to approve raising the income tax. In his original $53 billion budget proposal in March, the governor sought personal and corporate tax increases to help eliminate an $11.6 billion deficit and maintain state services.

Chicago is 280 miles from Detroit, home to General Motors Corp. and Chrysler LLC, which were forced into bankruptcy. Lear Corp., the Southfield, Michigan-based maker of automotive seats, announced plans today to enter bankruptcy. The unemployment rate in Illinois was 10.1 percent in May, compared with 9.4 percent nationally.

‘A Mess’

“This is a mess,” said Jack Ablin, who oversees $60 billion as chief investment officer at Harris Private Bank in Chicago. “We’re a manufacturing state and in the Midwest, so we’re influenced by the autos.”

In addition to CDOs, the failed banks were plagued by losses on commercial real estate loans. Founders Bank of Worth, the biggest of the Illinois banks seized today, had $374 million in construction and commercial real estate loans as of March, accounting for 63 percent of the bank’s net loans and leases, according to a regulatory report.

Millennium State Bank of Texas, the Dallas-based bank taken over by a state regulator today, had $67.5 million in such loans, or 81 percent of its total loans.

“The common denominator for most of the bank failures so far has been troubled construction loans,” said Matthew Anderson of Foresight Analytics, an Oakland, California-based real estate research firm. “There’s no easy way out with defaulted construction loans in today’s environment.”

The Illinois banks have a combined 29 branches, which will all open under new ownership by July 6, the FDIC said. Millennium’s lone office will open that day as a unit of Irvine- based State Bank of Texas.

The following table lists the banks that were seized today. Asset and deposit figures are in millions of U.S. dollars.

Failed Bank Buyer Assets Deposits

Founders Bank PrivateBank & Trust 962.5 848.9 Worth, IL Chicago

First National First Financial 166 147 Danville, IL Terre Haute, IN

Millennium State State Bank of Texas 118 115 Dallas Irving

Rock River Bank Harvard State Bank 77 75.8 Oregon, IL Harvard, IL

Elizabeth State Bank Galena State Bank 55.5 50.4 Elizabeth, IL Galena, IL

John Warner State Bank of Lincoln 70 64 Clinton, IL Lincoln, IL

First State Bank First National 36 34 Winchester, IL Beardstown, IL

To contact the reporters on this story: Ari Levy in San Francisco at alevy5@bloomberg.net; Flynn McRoberts at fmcroberts1@bloomberg.net.

52 so far this year

I spent the last week looking for "green shoots" to munch on - no nourishment out there.

Anyway, I'm back. more stuff tomorrow.

7 More Today

Bank Failures in Brief

---

2009

The list of Bank Failures in Brief is updated through July 2, 2009. Please address questions on this subject to the Customer Service Hotline (telephone: 888-206-4662).

July

Founders Bank, Worth, Illinois, with approximately $962.5 million in assets, was closed. The PrivateBank and Trust Company, Chicago, Illinois, has agreed to assume all deposits (approximately $848.9 million). (PR-119-2009)

Millennium State Bank of Texas, Dallas, Texas, with approximately $118 million in assets, was closed. State Bank of Texas, Irving, Texas, has agreed to assume all deposits (approximately $115 million). (PR-118-2009)

The First National Bank of Danville, Danville, Illinois, with approximately $166 million in assets, was closed. First Financial Bank, N.A., Terre Haute, Indiana, has agreed to assume all deposits (approximately $147 million). (PR-117-2009)

The Elizabeth State Bank, Elizabeth, Illinois, with approximately $55.5 million in assets, was closed. Galena State Bank and Trust Company, Galena, Illinois, has agreed to assume all deposits (approximately $50.4 million). (PR-116-2009)

Rock River Bank, Oregon, Illinois, with approximately $77 million in assets, was closed. The Harvard State Bank, Harvard, Illinois, has agreed to assume all deposits (approximately $75.8 million). (PR-115-2009)

The First State Bank of Winchester, Winchester, Illinois, with approximately $36 million in assets, was closed. The First National Bank of Beardstown, Beardstown, Illinois, has agreed to assume all deposits (approximately $34 million). (PR-114-2009)

The John Warner Bank, Clinton, Illinois, with approximately $70 million in assets, was closed. State Bank of Lincoln, Lincoln, Illinois, has agreed to assume all deposits (approximately $64 million). (PR-113-2009)

More Banks Go Belly Up

I got your "green shoots" right here!

Bank Failure #41: Community Bank of West Georgia, Villa Rica, Georgia

Bank Failure #42: Neighborhood Community Bank, Newnan, Georgia

Bank Failures #43 & #44: MetroPacific Bank, Irvine, CA, Horizon Bank, Pine City, Minnesota

Bank Failure #45: Mirae Bank, California Fails

Myth: Republicans value sexual morality Specific examples, in alphabetical order

The devil decries evil.
Virtue is his guise
To find the hidden villain
Listen for the loudest voice

Rodger Malcolm Mitchell

Adelphia Communications Corp.: Donated large sums of money to some of the most conservative members of Congress. They are also the first cable company to offer hard-core adult movies to subscribers. Daily Kos article

Edison Misla Aldarondo, Republican legislator from Puerto Rico, was sentenced to 13 years in prison for molestation of his daughter and her friend for eight-year period starting when they were 9. Full Article

Randal David Ankeney, Republican activist from Colorado, arrested on suspicion of sexual assault on a child with force. He faces 6 charges related to getting a 13-year-old girl stoned on pot and then having sex with her. Source Also accused of sexually assaulting another girl. Denver ABC Article

Dick Armey (R-Texas), former professor, has been accused by The Dallas Observer of sexually harassing female students.

Jim Bakker, televangelist with Pat Robertson at Robertson's Christian Broadcasting network. Committed adultery with Jessica Hahn [1] and then used charitable donations to pay her hush money[2]. Fellow televangelists say he's gay. [3][4]Indicted on 23 federal charges of fraud, tax evasion, and racketeering [5].

Merrill Robert Barter, Republican County Commissioner from Maine, pleaded guilty to unlawful sexual contact and assault on a teenage boy. Booth Bay Register Article

Bob Barr, Republican Congressman from Georgia. Sponsored the anti-gay Defense of Marriage Act, saying "The flames of hedonism, the flames of narcissism, the flames of self-centered morality are licking at the very foundation of our society, the family unit." Was married three times. Paid for his second wife's abortion. Failed to pay child support to the children of his first two wives and while married to his third and present wife was photographed licking whipped cream off of strippers at his inaugural party.

Merrill Robert Barter, Republican County Commissioner, pleaded guilty to unlawful sexual contact and assault on a teenage boy. Booth Bay Register Article

Robert Bauman, Republican congressman and anti-gay activist from Maryland, was charged with having sex with a 16-year-old boy he picked up at a gay bar. Source: Washington Blade

Parker J. Bena, Republican activist and Bush Elector from Virginia, pleaded guilty to possession of child pornography (including children as young as 3 years old) on his home computer and was sentenced to 30 months in federal prison and fined $18,000. Conservative Babylon

William Bennett, Drug Czar under George H. W. Bush, compulsive gambler who has had to wire as much as $1.4 million to cover gambling losses in a 2 month period. NY Press Article | Washington Monthly Article

Louis Beres, chairman of the Christian Coalition of Oregon. 3 of his family members accuse him of molesting them when they were pre-teens. Editor and Publisher article

Howard L. Brooks, Republican legislative aide and advisor to a California assemblyman, was charged with molesting a 12-year old boy and possession of child pornography. Sacramento Bee article

John Bolton: George W. Bush's latest Ambassador to United Nations. Corroborated allegations that Mr. Bolton’s first wife, Christina Bolton, was forced to engage in group sex have not been refuted by the State Department. Raw Story Article

Mike Bowers Former State Attorney General of Georgia, prosecuted the famous "Bowers vs. Hardwick" case, based on Georgia anti-sodomy laws. Admitted to a 10-year adulterous affair Slate article

Andrew Buhr, Republican politician, former committeeman for Hadley Township Missouri, was charged with two counts of first degree sodomy with a 13-year old boy. Source

Jeffrey Buley (http://www.nypost.com/news/regionalnews/36931.htm), New York Republican Party's top lawyer, and senior political adviser to Gov. Pataki (R), arrested for assaulting his wife in a drunken rage. They have two young children.

Ted Bundy campaigned for the Republican Party. Infamous serial rapist who murdered 16 women. Source: BBC

Jim Bunn Congressman of Oregon: With his success due in great part to support from the Christian Coalition, Bunn won his congressional seat, then immediately ditched his wife (and mother of his five children), married a staffer, and put his new wife on the state payroll for the unheard-of salary of $97,500. Conservative Babylon

John Allen Burt, Republican anti-abortion activist from Pensacola, Florida, convicted of sexually molesting a 15 year old girl at the home for troubled girls that he ran. Source: Pensacola News Journal

Dan Burton, Republican Congressman from Indiana who, while married, fathered a child by another woman. Salon.com Article

George W. Bush, Republican president, accused in a criminal complaint and lawsuit of raping Margie Schoedinger, who was later suicided. Accused by Tammy Phillips, a former stripper quoted in the National Enquirer in 2000 saying she had an affair with Bush that had ended in 1999.

Neil Bush, brother or G. W. Bush, in a March 2003 divorce deposition, admitted repeatedly having sex with strange women who just showed up at his room while on an Asian business trip. (Overshadowing the sex scandal; the business scandal--see link.) Washington Post article.

John Butler, Republican activist, was charged with criminal sexual assault on a teenage girl.

Ken Calvert, Congressman (R-Ca), champion of the Christian Coalition and its "family values." Sued as an alimony deadbeat by his ex-wife. Said "We can't forgive what occurred between the President and Lewinsky." In 1993 he was caught by police receiving oral sex from a prostitute and attempted to flee the scene.

Charles Canady, Congressman (R-Florida), Judiciary Committee member. Lied to his constituents about his adulterous affair with Sharon Becker, which caused her divorce.

Helen Chenoweth, Congresswoman (R-Id.). Admitted to a six-year adulterous affair with a married associate. In 1995, Chenoweth had denied the affair when asked about it by The Spokane Spokesman-Review, but now she claims a pardon from a higher authority: "I've asked for God's forgiveness, and I've received it," she revealed.

Keola Childs, Republican County Councilman from Hawaii, pleaded guilty to sexual assault in the first degree for molesting a male child.Honolulu Star-Bulletin Article

Kevin Coan, Republican St. Louis Election Board official, arrested and charged with trying to buy sex from a 14-year-old girl whom he met on the Internet. Source: Newmax

Roy Cohn, continually condemned gays and gay rights. Was a closet gay who died of AIDS. Wikipedia Article

Carey Lee Cramer Political consultant and anti-Kerry ad producer, tried for molesting two young girls, one of whom lived with him, and was 8 yrs old; the other starred in an anti-Kerry commercial. Diary Diary. The Monitor.

Dan Crane, Republican Congressman from Illinois, married, father of six. Had sex with a minor working as a congressional page. Salon.com article --Bkmeyers 08:36, 3 October 2006 (PDT)On July 14, 1983 the House Ethics Committee concluded that Rep. Dan Crane (R-Ill.) had engaged in sexual relationships with minors, specifically 17-year-old congressional pages. In Crane's case, it was a 1980 relationship with a female page. wikipedia.org article

Paul Crouch Televangelist, Former President of Trinity Broadcasting Network (TBN). Paid $425,000 in hush money in an attempt to cover up a gay affair. Christianity Today article

Randy Cunningham: Federal prosecutors are investigating allegations that Congressman and confessed-felon 'Duke' Cunningham was periodically supplied with prositutes.[6] Cunningham pled guilty to corruption charges, and is currently serving jail-time.

Richard A. Dasen Sr., Republican benefactor of conservative Christian groups, convicted of sexual abuse of children, promotion of prostitution and several counts of solicitation, enough to add up to a sentence of 126 years in prison. Investigators estimated that he spent up to $5,000,000 on prostitutes. Missoulian Article on the trial | Missoulian Article

Richard A. Delgaudio, Republican fundraiser and Bush pioneer, was found guilty of child porn charges. WBAL Channel article

Peter Dibble, Republican legislator from Connecticut pleaded no contest to having an inappropriate relationship with a 13-year-old girl. News Channel 8 Article

Brian J. Doyle, Deputy Press Secretary for U.S. Department of Homeland Security. On March 12, 2006, Doyle contacted a 14-year-old girl whose profile was posted on the Internet, and initiated a sexually explicit conversation with her. The girl was actually an undercover Polk County Sheriff s Computer Crimes detective. Doyle knew that the girl was 14 years old, and he told her who he was and that he worked for the U.S. Department of Homeland Security. During future online chats, Doyle gave the undercover detective posing as a 14-year-old girl his office phone number and his government-issued cell phone number, so that they could have telephone conversations, in addition to their online chatting. Doyle used the Internet to send hard-core pornographic movie clips to the girl and used the AOL Instant Messenger chat service to have explicit sexual conversations with her. [7]

Nicholas Elizondo, Republican director of the "Young Republican Federation" molested his 6-year old daughter and was sentenced to six years in prison. Halfway down this Bakersfield Californian article

Larry Dale Floyd, Republican Constable in Denton County, Texas Precinct Two. Arrested for allegedly crossing state lines to have sex with an 8-year old child and was charged with 7 related offenses. Age 62 at time of arrest. Dallas News Article | Atrios Article

Mark Foley, US Representative from Florida, engaged in sexually-explicit SMS text-messaging with 17-yo males, former pages. He had been chairman of the House Caucus on Missing and Exploited Children. details He was protected by US House Speaker Dennis Hastert.

John Fund, of the Wall Street Journal, a prominent anti-abortion columnist and GOP fund raiser. He lost his position after it was revealed that he impregnated the daughter of an old girlfriend and then encouraged her to abort his child. American Politics Journal Article

[[[Steven Gaines]], Pastor in a Southern Baptist Church. For a year, he kept secret the allegations that another pastor in his church had sexually abused a young family member years earlier.

Jeff Gannon Partisan blogger with no journalism credentials and a fake name who got invited to Bush's Press conferences. Is also a pimp and a gay prostitute. Truthout Article. See also dKospedia's page on Jeff Gannon.

Jack W. Gardner, Republican Councilman from Pennsylvania, had been convicted of molesting a 13-year old girl. when the Republican Party, knowing of these crimes, put him on the ballot. Article with documents

Richard Gardner, a Nevada State Representative (R), admitted to molesting his two daughters. Review Journal Article

Newt Gingrich, Republican from Georgia, married three times. Gingrich campaign worker Anne Manning admitted that she gave Newt oral sex while he was still married to his first wife. Informed one wife he was filing for divorce while she was in the hospital recovering from cancer treatments. Salon Article

Philip Giordano, Republican mayor from Connecticut sentenced to 37 years for forcing two 8 and 10 year old girls to perform oral sex on him in his City Hall office. NBC Article | Newsday Article

Matthew Glavin, President and CEO of the Southeastern Legal Foundation, big player in the Clinton Impeachment, and many anti-gay jihads, has been arrested multiple times for public indecency, one time fondling the crotch of the officer who was arresting him. Full Article

Marty Glickman, Republican activist, was taken into custody by Florida police on four counts of unlawful sexual activity with a juvenile and one count of delivering the drug LSD.

Mark A. Grethen, Republican activist from Virginia, convicted on six counts of sex crimes involving children. Orlando Weekly article

Jon Grunseth, Republican businessman and candidate for Minnesota governor, withdrew his candidacy after allegations surfaced that he went swimming in the nude with four underage girls, including his daughter, and tried to grope one. "I've made some mistakes" he said. USA Today article

Dr. W. David Hager, Bush appointee from Kentucky, member of Focus on the Family's Physician Resource Council, player in movement to ban the morning-after-pill. Had an adulterous affair, before divorcing his wife he sexually abused her, including sodomizing her in her sleep. Article

Ted Haggart, pastor of a 3,000-member church, who preached often against homosexuality, spoke with President Bush frequently, and was held up as a pillar of "family values." Turns out he had a sexual relationship with a male prostitute, who he also paid for meth-amphetamines.

Mark Harris, Republican city councilman from Wisconsin who is described as a "good military man" and "church goer," was convicted of repeatedly having sex with an 11-year-old girl and sentenced to 12 years in prison.

Dennis Hastert protected Mark Foley for over a year, keeping private the news that Foley had engaged in sexually-explicit conversations with teenage boys.

John Hathaway, Republican Senate candidate from Maine, was accused of having sex with his 12-year old baby sitter and withdrew his candidacy after the allegations were reported in the media. Source: Casco Bay weekly

Howard Scott Heldreth, anti-abortion activist who gained fame during the Schiavo media-circus, was convicted of two charges of raping a child in 2002. page at Florida Department of Law Enforcement's Sexual Offender/Predator Unit

Mike Hintz, a First Assembly of God youth pastor from Des Moines, Iowa, introduced by Bush on the campaign trail, and promoted his policies. Says he supports Bush's values. Two months later, this married father of four turned himself into police, charged with the sexual exploitation of a child. Article | Commentary Also signed an ad (that called for criminally prosecuting business that sell porn), together with another pastor who was repeatedly busted for public masturbation.

Neal Horsley, anti-abortion activist from Georgia. Has called for the arrest of all homosexuals. Admitted on the Fox News Radio's The Alan Colmes Show, that he's had sex with mules. Put photographs on his Web site of naked men engaging in homosexual acts and a nude woman engaging in bestiality amid shots of grotesquely maimed fetuses. Drug dealer convicted of possession of hashish with intent to sell. He calls for "the establishment of a new government, one that can obey God's plan for government."

Henry Hyde, Republican Congressman from Illinois, Judge who oversaw Clinton's impeachment proceedings, prominent opponent of reproductive rights, who had an extramarital affair with a woman who was married and had three children, during the course of which she and her husband were divorced. Salon.com article

Don Haidl, Assistant Sheriff of Orange Country, in violation of California's rape shield law, led a smear campaign against the child his son poisoned and then violently gang-raped on videotape, adding up to 24 felony counts. He said that his son "acted accordingly" because the child was a "slut". The full gruesome story, with many newspaper articles.

Tim Hutchinson, divorced his wife of 29 years to marry a congressional aide he was having an affair with.

Paul Ingram, Republican Party leader of Thurston County, Washington, pleaded guilty to six counts of raping his daughters and served 14 years in federal prison. Source: The Olympian Article

Bill Janklow, former S. Dakota Governor and Congressman, arrested for drunk driving, disorderly conduct, assaulting an officer, and indecent exposure in 1974. Pardoned his son-in-law for multiple drunk driving convictions in 2002. Resigned congressional seat due to a felony manslaughter conviction in a reckless driving incident (running a stop sign at 70 mph)in 2003 that resulted in the death of farmer, Vietnam veteran, and motorcyclist Randy Scott, 55, of Hardwick, Minnesota. Janklow served 100 days of a possible 11-year sentence. Janklow sought and received immunity from civil damages on the grounds that he was traveling on business related to his role as a congressman when the killing of Scott occurred. Janklow also petitioned to get back (and was granted) his license to practice law in the state of South Dakota. Link from American Motorcyclist Association webpage - [8]

Bernard Kerik, had two simultaneous adulterous affairs.

Earl Kimmerling, from Indiana, sentenced to 40 years in prison after he confessed to molesting an 8-year old girl after he attempted to stop a gay couple from adopting her. Anderson, IN, Mayor Mark Lawler and Republican State Reps. Jack Lutz of Anderson, IN, and Woody Burton of Greenwood, IN, supported him.Source

• Randy Steven Kraft Republican serial killer convicted of 16 murders and suspected of at least 51 others. [9]

I. Lewis Libby, former Assistant to the President and Chief of Staff to Vice President Dick Cheney. In 1996 published a novel containing bizarre sexual content, including bestiality and pedophilia.Full Details (Oh yeah, and he's also been indicted on obstruction of justice, perjury and making false statements, charges adding up to 10 years in prison.)

Rush Limbaugh, triple-divorcee[10], 30-pill a day drug addict. Goodies from The Smoking Gun.com

Bob Livingston, former Congressman (R-La.), Speaker of the House; resigned from the House in the wake of revelations about his past adultery -- at the same time he was leading calls for impeachment of President Clinton.

Donald Lukens, Former Ohio Republican Congressman, was found guilty of having sex with a minor - a girl he was accused of sleeping with since she was 13. Also convicted of taking $15,000 in bribes from the operators of a trade school while he was a congressman. A U.S. District Court jury in Washington deliberated for just one hour before reaching the verdict. Time Article

Pat McPherson, Douglas County, Nebraska Election Commissioner. Arrested for fondling a 17-year-old girl. Article

Jon Matthews, Republican talk show host in Houston, was indicted for indecency with a child, including exposing his genitals to a girl under the age of 17. Source: ABC News

Jeff Miller, (R-Cleveland), Senate Republican Caucus Chairman in Tennessee and the sponsor of Tennessee’s Marriage Protection act, getting divorced (as of April 2005) because of an affair he was having with an office aid. Miller described the Tennessee Marriage Protection Act as a means of preserving the sanctity of marriage. He opposed an amendment, however, which stated that “Adultery is deemed to be a threat to the institution of marriage and contrary to public policy in Tennessee.” [11] [12]

Nicholas Morency, Republican anti-abortion activist from Cape May County, NJ, pleaded guilty to possessing child pornography on his computer and offering a bounty to anybody who murders an abortion doctor The Dallas Morning News article.

Sue Myrick, Congresswoman (R-NC), describes herself as a "devout Christian." Committed adultery with a married man.

Bill O'Reilly Right-wing conservative talk show host on Fox News, sued for sexual harrassment by his producer. The suit included graphic details, including tape-recordings. O'Reilly's wife was pregnant at the time. O'Reilly settled and paid millions of dollars rather than have the details become public.

Bob Packwood, Senator (R-Ore.), resigned in 1995 under a threat of public senate hearings related to 10 female ex-staffers accusing him of sexual harassment.

Jeffrey Patti, Republican Committee Chairman from Sparta, NJ, was arrested for distributing what experts call "some of the most offensive material in the child pornography world" - a video clip of a 5-year-old girl being raped. Daily Record News Article

Brent Parker Utah State Representative. Arrested for soliciting sex from an undercover officer posing as a male prostitute. KSL News Article |Deseret News Article

John Paulk, lied about prowling for gay sex while running a fundamentalist group to cure gays.

Mark Pazuhanich, Republican judge from Monroe County, PA, pleaded no contest to fondling a 10-year old girl and was sentenced to 10 years probation. Pocono Record article

John Peterson, Congressman (R-Pa), accused of sexual harassment and creation of a hostile work environment by six women. Peterson has refused to admit a crime, saying only "I may have been an excessive hugger."

Harvey Pitt, SEC Chief under George W. Bush until he was forced to resign in 2002. Worked for New Frontier Media, a firm which distributed teen sex videos.

Dennis Rader AKA the Bind Torture Killer or BTK killed ten people to satisfy his sexual urges. He was also a leading local Republican.[13]

Ronald Reagan First president to be divorced (from a woman who had been married two or three times before him - the record is unclear, none of which seems to bother the religious right).

George Roche III, carried on a 19 year affair with his son's wife, while serving as president of Hillsdale College in Michigan, which "emphasizes the importance of the common moral truths that bind all Americans, while recognizing the importance of religion for the maintenance of a free society."

Beverly Russell, County Chairman of the Christian Coalition as well as a member of the South Carolina Republican Party’s executive committee, sexually molested his step-daughter, Susan Smith, who later drowned her two children. Herald-Journal Article |Commentary on Newsweek Article

Jack Ryan, 2004 Republican nominee for US Senate from Illinois, pressured his wife, actress Jeri Ryan, to have sex with other men. Tricked her into visiting sex clubs, where he asked her to have sex with him while others watched.[14]

Rick Santorum, used $100,000 of PA state funds earmarked for that state's school children to educate his own children, who were not residents of Pennsylvania. source (http://www.postgazette.com/pg/04323/413787.stm)

Joe Scarborough, former Republican Congressman from Pensacola, Florida, currently a conservative talk show host. Resigned his congressional seat abruptly to spend more time with his family, amidst allegations of an affair. His intern, Lori Klausutis, was soon after found dead in his office. The medical examiner, who had his license revoked in Missouri for falsifying information in an autopsy report, and suspended in Florida for six years, ruled the case an accident, after giving conflicting information about her injuries. He said he lied about them because "The last thing we wanted was 40 questions about a head injury."

Ed Schrock, two-term Republican Congressman from Virginia, with a 92% approval rating from the Christian Coalition. Cosponsor of the Federal Marriage Amendment, consistently opposed gay rights. Married, with wife and kids. Withdrew his candidacy for a third term after tapes of him soliciting for gay sex were circulated.

Dr. Laura Schlessinger, right wing conservative radio host. Promotes family values, but estranged from her mother; opposes birth control, but has had her tubes tied; espouses saving oneself for marriage, but admits to having had sex before she was married; opposes adultery, but has committed adultery while she was married, and has slept with a married man; opposes divorce, but is divorced and remarried, has posed for nude photos which are available online.

Larry Jack Schwarz, Republican parole board officer and former Colorado State Representative, fired after child pornography was found in his possession. Rocky Mountain News article With his political career over, he went to work in the hard-core pornography industry for Platinum X Pictures, owned by his daughter, porn starlet Jewel De'Nyle (Stephany Schwarz). Wikipedia article

Arnold Schwarzenegger, Republican governor, had sex with a 16 year old when he was 28. Numerous allegations of gropings, harassment, in California.

John Scmitz, right-wing republican congressman, who had had his committee chairship taken away from him in the California State Senate after issuing a press release attacking Jews, feminists and gays. Forced out of office in 1982 for having an adulterous affair and fathering two children out of wedlock with one of his students. He was caught because his baby was admitted to hospital for having hair tied so tightly around his penis that it was almost severed. His daughter, Mary Kay LeTourneau, was convicted of having an adulterous affair with one of her students, and giving birth to two of his children. Wikipedia article

Don Sherwood, The former Republican member of the U.S. House of Representatives representing the 10th Congressional District of Pennsylvania. Eventually admitted to an affair with a woman 30 years younger than him, after she accused him of physical abuse and attempting to choke her. Post-Gazette Article

Tom Shortridge. Republican campaign consultant and former head of the South Bay, CA, Republican Club, was sentenced to three years probation for taking nude photographs of a 15-year old girl. Los Angeles Times Article

Fred C. Smeltzer, Jr., Republican City Councilman from Wrightsville, PA, pleaded no contest to raping a 15 year-old girl and served 6-months in prison. Sex Offender Registry page | Article

Jim Stelling, Seminole County Republican Party chairman who believes in "family values", as he told a judge. Filed a defamation lawsuit against Nancy Goettman, a former county GOP executive committee member, for falsely claiming he had been married six times. Stelling has been married 5 times. Article

Roger Stone, Republican dirty-tricks operative, led the mob that shut down the Miami-Dade County recount; advisor for Bob Dole and Arlen Specter's Presidential campaigns, owner of Washington, D.C.-based Ikon Public Affairs. Place X-rated ads for group sex with his wife, Nydia. Claimed he was framed, even though the ads were placed with his credit card and used his P.O. Box. [15]

Jimmy Swaggart, televangelist, said during a sermon "I'm trying to find the correct name for it … this utter absolute, asinine, idiotic stupidity of men marrying men. … I've never seen a man in my life I wanted to marry. And I'm gonna be blunt and plain; if one ever looks at me like that, I'm gonna kill him and tell God he died." Had an affair with a prostitute.

David Swartz, Republican County Commissioner from Ohio, pleaded guilty to molesting two girls under the age of 11 and was sentenced to 8 years in prison. Rocky Mountain News Article

Randall Terry, Right to Life activist, founder of Operation Rescue, involved in the Terri Schiavo protests. Once imprisoned for sending former President Bill Clinton an aborted fetus. His son Jamiel is gay; his daughter Tila had sex outside of marriage, became pregnant, had a miscarriage - she is no longer welcome in his home; his daughter Ebony had 2 children outside of wedlock and became Muslim. He has campaigned against infidelity and birth control, gays and unwed mothers. Terry himself was censured by his church after committing adultery.

Bill Thomas Republican congressman, had an affair with Deborah Steelman, a health care lobbyist who steered huge campaign gifts to Thomas' war chest.

Strom Thurmond, Now dead Republican Senator from South Carolina and racist, impregnated a 15-year old African American maid. (BBC Article)

Robin Vanderwall, Republican strategist and Citadel Military College graduate, convicted in Virginia on five counts of soliciting sex from boys and girls over the internet. Virginian-Pilot Article

Robert Waltrip, Bush campaign contributor. Runs a funeral company which had to settle a lawsuit because bodies were being dug up and dumped in the woods. According to Fox News, Waltrip's company, a cemetery company called Service Corporation International (also known as Dignity Memorial) was "recycling" graves, removing the bodies that were there originally and throwing them in the woods to use the space to house new customers at two Jewish cemeteries in Florida. George W. Bush, who had met with Waltrip, was subpoenaed but refused to testify in the case.

J.C. Watts, Representative (R-Oklahoma), loud champion of "moral values." Has out-of-wedlock children.

Jim West, Spokane Mayor. Supported a bill, which failed, would have barred gays and lesbians from working in schools, day-care centers and some state agencies. Voted to bar the state from distributing pamphlets telling people how to protect themselves from AIDS. Proposed that “any touching of the sexual or other intimate parts of a person” among teens be criminalized. Had a sexual affair with an 18 year old boy.Source: Spokesman Review

Keith Westmoreland, a Tennessee state representative (R), was arrested on seven felony counts of lewd and lascivious exhibition to minors under 16 (i.e. exposing himself to children). Tennessean Article

Stephen White, Republican preacher. Was arrested after allegedly offering $20 to a 14-year-old boy in West Chester, PA, for permission to perform oral sex on him. Daily Pennsylvanian article | Daily Yale News Article

Paul Williams, pastor in a large Southern Baptist Church, resigned suddenly amid allegations that he had sexually abused a young family member 17 years ago. He was protected for a year from these allegations being made public by the Church Pastor, Dr. Steven Gaines.