FDA Approves Salmonella

FDA Approves Salmonella

Calling it “perfectly safe for the most part,” and “not nearly as destructive or fatal as previously thought,” the Food and Drug Administration approved the enterobacteria salmonella for human consumption this week.

The federal agency, which has struggled in recent years to contain the food-borne pathogen, and repeatedly failed to prevent tainted products from reaching store shelves, announced Monday that salmonella was now completely okay for all Americans to enjoy.
“Rigorous testing has shown that salmonella is…fine,” FDA director of food safety Stephen Sundlof said. “Our research indicates that there’s no need to pull any more foodstuffs from the market. Not raw chicken. Not contaminated spinach. Not thousands of jars of harmful peanut butter.

Following the announcement, the FDA released a 20-page report, which included evidence that salmonella is barely more dangerous than other live-culture products such as yogurt, and results from a clinical trial which found that participants who ingested salmonella were totally fine for up to three minutes.

The report also concluded that salmonella has been around American kitchens for centuries now. “Of course, as with everything, we encourage moderation,” lead FDA researcher Phillip Millar said. “Don’t just eat a whole pint of salmonella in one sitting. It’s like ice cream or, for example, E. coli in that respect.”

The intracellular bacterium will be commercially available in a variety of forms. Plans are already in the works to offer salmonella as a flavorful topping, food spread, powdered drink mix and dessert gelatin.

One of several new foods to feature the motile microorganism is Salmonell-Os—an O-shaped breakfast cereal packed with hearty typhoid clusters—which are expected to hit grocery stores by April.

Other products currently in development include Salmonella Helper, Kraft’s Extremely Painful Mac, ‘Nella Wafers, and peanut butter.

The Ultimate Bottom. How well will it come up?

The markets matched the lows made in 1996 last week. The S&P 500 closed below the 700 level at 683 on Friday. This current market drop is larger and faster than many market forecasters expected. The big question is have we hit bottom. If so, how well will the markets come up?

I predict the bottom for the S&P 500 will be in the 600 range. The Elliott Wave Theory (sounds impressive) points to a potential bottom of 600. Much to the agony of the buy-and-hold investors, we’re almost there.

When it hits 600, that is when we should we take Barak’s advice to buy stocks (like in GM or Citigroup). Half the level of U.S. private debt ($10-15 trillion) needs to disappear for a recovery.

Many bailout programs, especially Bush’s idiotic TARP, have failed to stop this spiral. We should not keep pouring tax payer money into bottomless sinkholes like AIG.

Those investors that followed sustained trends and converted equities to cash can better take advantage of a turnaround. If a rally starts when the S&P 500 is at the 600, expect it to run into resistance at 730.

OK, so most of my 30 loyal readers know that I have been blogging on politics on the economy. I think we need a new subject. Please reply with one or let me know how you feel about: Michael Jackson’s return, Rihanna, the Octo-mom, the Bachelor’s botched engagement, or March Madness.

Nancy Ramming Bill

Speaker of the House Nancy Pelosi’s home district includes San Francisco.
Star-Kist Tuna’s headquarters are in San Francisco.

Star-Kist is owned by Del Monte Foods and is a major contributor to Pelosi. Paul Pelosi, Nancy’s husband, owns $17 million dollars of Star-Kist stock.

Star-Kist is the major employer in American Samoa employing 75% of the Samoan work force.

Last week when the huge bailout bill was passed, Pelosi added an earmark to the final bill adding $33 million dollars for an ‘economic development credit in American Samoa ‘.

The final version of the bail-out bill was rammed through only 20 hours after the bill was in actual print. The bill was signed by Obama without being posted on the internet for five days for the U.S. taxpayers to read. This internet posting was one of Obama’s campaign promises.

In January, 2007 when the minimum wage was increased from $5.15 to $7.25, Pelosi had worked to have the American Samoa exempted from the increase so Del Monte would not have to pay the higher wage. This would make Del Monte products less expensive than their competitions. And put more money in Paul Pelosi’s pocket.

Other than other hand, Louisiana Governor Bobby Jindal refused to take a portion of Obama’s entitlement-feeding, government expanding bail-out bill. This portion was a $32.8 million for expanding unemployment insurance. The reason is simply it was like taking a dime to later have to spend a dollar.

In taking temporary federal dollars, Louisiana would be forced to receive only three years of funding for a permanent government program as noted in Obama’s spending bill. After the money is gone, your taxpayers and businesses have to pay for it.

This is similar to the past un-funded federal mandates on state governments. So under Obama’s entitlement spending spree both governments become bigger and the federal government mandates laws on the states. This throws out the notion of federalism and the 10th Amendment of the US Constitution.

Paying for the McMansions

Would you want to pay for the McMansions of over-leveraged homeowners who now can’t make their payments?

Many responsible borrowers are still paying the loans as they agreed to. Relatively soon they will pay not only their own mortgages, but likely those that overbought using risky, ARM loans.

After two poorly written bail-outs to Wall Street (plus the Bush bail-outs to Fannie and Freddie), Obama and friends are now bailing-out subprime, over-financed borrowers. There are two problems with the $275 billion plan:

First, there are plenty of rental properties for non-homeowners. Owning a home is a reward for saving money and being responsible. Home ownership is not an inalienable right. It should not serve as an easy-buck to Wall Street, the mortgage industry, and too speculative home-builders.

Second, throwing money at the housing market will not solve the real problem. We will just end up with a confused market. If you allow supply and demand to naturally work, inflated home prices will stabilize. Throwing money to irresponsible borrowers artificially hovers a market that needs to sink.

We need to see housing prices come down. We need borrowers, banks, and Obama to deal with their loans realistically.

Using taxpayers’ money and increasing the national debt for this is a clear sign that US taxpayers will lose out again. Wait until both the Medicare and social security accounts go broke. . .

Would You Like to Buy the Brooklyn Bridge?

1 billion seconds equals almost 32 years. If Obama’s $820 billion dollar spending/uber-entitlement bill is passed, it would take almost 26,000 years to pay-off his spending at $1.00/second. Almost 27 years at $1000/second.

We are again making future generations responsible for our free-spending, risk-ignoring gluttony. It is time for us to stand on our own two feet and accept the consequences and work through it.

Other than throwing $820 billion at the problem, Obama, Congress Democrats, and the Treasury have not given much evidence that they know how to deal with the economy. Look at the Market’s reaction to the “specifics” of this week’s second bank bail-out bill.

Would you like to buy the Brooklyn Bridge? Democratic Senate leaders expected all their colleagues to pass this unprecedented spending bill in one day – before any Senator had a chance to read it. It is not posted on any government website for U.S. citizens, the payors. Will Obama deny his campaign promise not to pass any major bill until it was posted on the internet for five days?

Maybe doing nothing would be a better and cheaper option. The markets (not bailed-out Wall Street bankers) would sort out things; the weak and insolvent companies falling and the sensible ones taking advantage of new opportunities.

Despite what some politicians, greedy bail-out banks, and corporate magnates would have us believe, the sun will rise tomorrow. on’t buy-in to the over-hype. New efficient banks and companies will begin. That is how a responsible, free-market system works.

It will work if we would only let it work. But for some non-descript reason, many people feel that Obama has a magic wand to “save us”. Just print more money, right? – we can be the next Zimbabwe.

Do you like Wall Street?

This year top Wall Street executives gave out bonuses worth $18 billion although they lost $35 billion. Does this mean bonuses will double in 2009 if the loss totals $70 billion? With this model, why don’t all of us just not work and wait for our bail-out?

Since we own more of Wall Street (Fannie, Freddie, AIG, the big banks that received TARP money…), why don’t we just nationalize US banks?
The U.S. taxpayer has already taken huge losses in 2008 with very few results. Wall Street suits and their lawyers got their goodies (your Federal Reserve would not disclose where the TARP money went even in a Congressional testimony– they blacked out figures in their reports.) With the 2008 TARP funds, they received a cheap loan on your back. If things get better, they pay it off and are not held responsible. What do we get? A pathetically low return even if we see the money again.
We own billions worth of shares in Bank of America and Citigroup. (Not that we were ever asked if we wanted to buy toxic shares.) Banks know we are committed to their cause since our money is at stake.
That is the troubling sight of the current financial structure. So here are the options that we have:
(a) Continue with TARP (the Federal Reserve should reveal how your money was spent first).
Pros: The economy improves, banks get away with decades of malfeasance, and taxpayers might simply get only their principal back.
Cons: Many things. We are getting screwed on a continued basis. Most people would not have paid for TARP – but it was rammed down our throats by Paulson and his buddies. Can anyone quantify how much TARP has done for us in six months?
(b) Go with the Bad Bank Model.
Pros: Banks have the chance to unload toxic assets and improve their balance sheets. This should increase consumer lending, but by how much?
Cons: We taxpayers will get screwed because we will get the worst of the worst. Remember the 2008 success (not!) of Fannie Mae and Freddie Mac? We will have a decade of malarkey to work through. It isn’t clear how we will prevent this from ever happening again.
(c) Nationalize Banks
Pros: We own the bank. We can remove bad management and eliminate preferred, self-interested shareholders. Then and only then we can tier and spin-off good and bad assets. It is simply better than these multiple clandestine strategies that are employed by the Federal Reserve.
Look at the Federal Reserve and its quasi-public setup. You cannot serve two masters at once and that is what it is trying to do – helicopter Ben. Clearly, their number one master right now is Wall Street and the money elite. Take a look at the FDIC failed bank list and it will tell you who is connected.
Cons: It may cost us a lot. But the question is, will it cost us less than the two above options that we committed trillions to in 2008 and which grow daily with little result so far?
(d) Do Nothing
Not really an option as the $3.2 trillion already spent just in 2008 is already spent-wasted. It is too late to do nothing since everything is fluid right now. It is now a question of what is the best road to turn onto from the two huge pothole-filled ones we have traveled.
For those who say stay out of Wall Street’s business, talk to Madoff’s investors and Lehmen/AIG shareholders. Look at your mutual fund losses.
How has the trillions spent on Wall Street banks been working for your paycheck? Ready for near future inflation? Try getting a loan right now. Have you shopped for rates on CDs and money markets lately as you stay out of stocks? Are you happy with the increasing bank service fees?
Fundamental changes are coming. We need to look deeply at the structure of both the financial system and the Federal Reserve. Do they deserve the power they currently have?

Don’t Invest Now. Keep money in cash.

Hepcat’s Blog. February 1

Don’t Invest Now. Keep money in cash. Expect new lows in 2009 and even 2010.

I would bet that the right time to invest again is when the S & P 500 recedes down further to 600 points or lower (now at 826). Half the level of U.S. private debt ($10-15 trillion) needs to disappear for a recovery. Obama has no magic wand – Bush bought toxic banks using taxes from your future income. Transparency please.

There are good reasons why over 60% of active fund managers could not beat their respective market index. The mutual fund-brokerage industry has itself dedicated to always being invested in something. So they and you have to pay to price when the bear strikes.

I really doubt these guys missed 2008 so badly. I really doubt they can say that they never looked at trends and major market turning points to assess whether their ideas were wrong.

Retail fund companies only make money selling shares to you and keeping you in funds. So they really don’t have your interest in heart. Did you broker-advisor tell you to sell funds or stocks in 2008?

You need to decide yourself when to start investing back in again. Get smarter on investing and be brave.

2008 was not a matter of “seeing something bad coming”. It was simply a matter of following major trends in the market place and acting at the turning points. That’s it; no more or no less—no smarts required.

The lesson for 2008 was the realization that senseless holding of many investments had bad consequences. How many years will it take for you to break even using a “buy and hold” strategy in 2008?

Investors need to actively monitor and manage their own funds. You were wise to kept most of your 2008 savings in cash and to ignore the “sound advice” of brokers – advisors. Congratulations if you sold a lot in the late Spring.

Another New Blogger

Steve Greene here in Washington, DC. 

This is a shout-out to let whoever know that this is my first post in my new blog.

This new blog is now geared to show my experience and knowledge in association management on a weekly basis.  We will see. 

Maybe a great way to vent politely about my profession, (mis-) management at work, current events, and life in Metro DC.   Therapy and boasting.

Pearls of wisdom – slight chance;  entertaining – possibly;  way to display bad grammar – definitely.  

First political post:

Praying that Obama and the Dems pause to look at the huge bail-out.  Their goal to get folks back to work will cost over $200,000 per new worker.   Let’s make the money trail transparent.   Good macro-economics, please.

Steve