Full Throttle with the Blue Angels

Atlanta Journal Constitution staffer Steve Beatty pulls some Gs in the backseat of an F/A-18 fighter prior to an Air Show featuring the Blue Angels. An embedded video could not be located, so, you’ll have to go here to play it (hat tip BN).
IMAGE His reaction is probably similar to what most young men would do under circumstances such as these, though, he does seem a bit cockier than most, largely due to the gum chewing that was supposed to stop him from getting nauseous.

I don’t know about you, but I got a little woozy just watching the videos.

USA Today reports that mail carriers may spend their Saturday’s home watching college football this fall if their request to ditch weekend delivery is approved by Congress. I don’t know about you, but, while I was aware that the Postal Service wasn’t exactly killing it bottom-line-wise, it comes as news to me that they too are struggling with “massive debt”.

The U.S. Postal Service will move this month toward reducing mail delivery from six days a week to five, a change Postmaster General John Potter has said is critical to reducing its massive debt.

Potter said Monday he’ll submit a formal request by the end of this month to the Postal Regulatory Commission, which must issue an advisory opinion on any change in mail service that would have national impact.

“We know we’re going to have less mail in 2020 than we have today,” Potter says. “We can’t freeze wages. We can’t freeze fuel costs.”

Once Potter makes the request, the Postal Regulatory Commission will hold public hearings in Washington and around the USA and seek expert testimony, Commission Chairwoman Ruth Goldway said.

The Postal Service has already borrowed $10 billion from the U.S. Treasury. Potter says it expects to borrow another $3 billion this year, leaving it just $2 billion under the $15 billion cap set by Congress.

Is anyone not borrowing from the Treasury Department these days?

Wards of the state Fannie Mae and Freddie Mac along with the FDIC, the FHA, and other government agencies are already getting billions from Tim Geithner and the crew at Treasury or they soon will – what’s a few billion more for the Post Office?

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Here’s another chart from the long dormant series of charts that put the S&P Case-Shiller Home Price Index up against a variety of other economic indicators. In this version, home prices are shown on the same chart as consumer sentiment with an unsurprising result.
IMAGE With the exception of the early-2007 period, the two track pretty well.

In fact, if you smooth the consumer sentiment curve as shown below, the two are nearly identical, save for a delayed reaction in the outlook of Americans in 2007 leading up to the fateful events of 2008.

(more…)

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Senator Jim Bunning (R-KY) is doing his impersonation of a “one-man wrecking crew” when it comes to the 100,000 or so unemployed, who are in desperate need of having their jobless benefits extended, along with thousands of government employees who, were, as a result of Bunning’s actions yesterday, told not to report to work.

The Miami Herald reports on the fallout:

The Department of Transportation furloughed nearly 2,000 employees without pay Monday as the government began to feel the impact of Republican Sen. Jim Bunning’s one-man blockage of legislation that would keep a host of federal programs operating.

Bunning’s “hold” also affects jobless benefits for thousands of unemployed workers, rural television customers, doctors receiving Medicare payments and others.

Bunning, R-Ky., wants the $10-billion price of extending the programs offset by reductions in spending elsewhere in the budget to not drive up the deficit.

Absent that, his objections to proceed with the legislation deny the Senate the “unanimous consent” that Senate rules require for going forward under expedited procedure. The Senate can overcome his objection if 60 of its 100 members vote to do so. So far they haven’t, and doing that would take at least four days under Senate rules.

There is also this report of a testy encounter between Bunning and ABC News correspondent Jonathan Karl in a “Senate-only” elevator in the Capitol building.

Not that someone putting their foot down when it comes to rising deficits and debt isn’t a good idea, but it’s worth noting that Bunning plans to step down from his Senate post this fall and he does have something of a history of “erratic” behavior.

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Dr. Doom Brings the Gloom

Marc Faber of the Gloom, Boom, and Doom report thinks that U.S. stocks could fall 20 percent after making new post-crash highs this spring. That would see the S&P 500 rising toward 1,200 and then falling back below 1,000 for the first time since late last summer.

He also thinks the euro is oversold and a good short-term bet, along with Treasuries.

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