November, 2007

Public funds: $50 billion here, $50 billion there -- pretty soon you're talking about real money

Submitted: Nov 29, 2007

Wall Street Journal
11-26-07
Schumer's Letter on FHLB Loans

Sen. Charles Schumer, a New York Democrat, urged regulators to examine potential risks posed by a sharp increase in lending by the Federal Home Loan Bank of Atlanta to Countrywide Financial Corp., the nation's biggest mortgage lender. The following is his letter to regulators.
http://online.wsj.com/article/SB119610390093704160.html?mod=googlenews_wsj

November 26, 2007

Ronald A. Rosenfeld
Chairman
Federal Housing Finance Board
1625 Eye Street NW
Washington, DC 20006

Dear Chairman Rosenfeld:

I write to express my serious concern over the lending practices of the Federal Home Loan Bank of Atlanta, specifically in regard to the significant volume of advances made to Countrywide Bank. I am concerned that the loans being pledged by Countrywide to secure these advances may pose a risk to the safety and soundness of the FHLB system as a whole. I urge you to conduct a careful review of FHLB Atlanta's collateral evaluation policies, as well as Countrywide's pledged collateral, in an effort to determine the risk that Countrywide's collateral poses to the FHLB system. During the current market crisis, it is important that the FHLB system perform its critical mission safely without imposing additional risks on an already strained market.

According to the most recent SEC filings, FHLB Atlanta had made $51.1 billion in advances to Countrywide Bank, representing 37 percent of the Bank's total outstanding advances as of September 30, 2007 and far exceeding advances made to the next largest borrower. Countrywide had pledged $62.4 billion of mortgages as collateral for the FHLB advances, representing 78 percent of its total mortgage loans held for investment at the bank.

I find these numbers alarming as reports continue to emerge about how Countrywide's reckless and predatory lending practices were a leading contributor to today's foreclosure crisis. Moreover, it is my understanding that Countrywide's loans held for investment at the bank have been far from immune from the credit deterioration that has resulted from unsound lending.

Countrywide reportedly held $27 billion of "pay option ARMs" as of September 30, 2007, accounting for over one-third of the loans held for investment by the bank. Countrywide's option ARMs were (and may still be) often underwritten with less than full documentation – according to UBS Warburg data prepared for the Wall Street Journal, 91 percent of Countrywide's option ARMs underwritten in 2006 were "low doc." It has been reported that delinquencies on Countrywide's pay option ARMS are skyrocketing, jumping nearly 75 percent in the last quarter.

Given this rapid deterioration in the credit quality of Countrywide's option ARMs, I urge you to conduct a review of the loans that are being held as collateral for FHLB advances in an effort to determine if FHLB Atlanta has adequate collateral to secure these advances. I would also like an explanation of how any second lien mortgages during a time of property price declines could be viewed as adequate collateral for large FHLB advances.

Furthermore, I believe that you should consider preventing any further or continuing overnight advances based on collateral that does not meet the joint financial regulators' guidance on nontraditional and subprime mortgage products (e.g., Interagency Guidance on Nontraditional Mortgage Product Risks and joint Statement on Subprime Mortgage Lending). This quarter, Countrywide reported that 89 percent of their 2006 originations of pay option ARMs did not conform to the joint regulators' guidance, which increases the likelihood that Countrywide is pledging loans deemed predatory by the regulators as collateral for FHLB advances. Importantly, Fannie Mae and Freddie Mac's safety and soundness regulator has specifically prohibited any new direct or indirect investment in loans that do not meet this guidance. As the mortgage crisis threatens to get worse from here, it is critical that the FHFB do the same.

Thank you for your prompt attention to this matter, and I look forward to working with you on these issues in the coming weeks and months. If you should have any questions, please contact David Stoopler on my staff at 202-224-6542.

Sincerely,

Charles E. Schumer

United States Senator

CNN.com
Bush urges Congress to approve war funding before Christmas
Pentagon says Army will have to make major cutbacks if it doesn't get the funds

ttp://www.cnn.com/2007/POLITICS/11/29/bush.war.funding/
WASHINGTON (CNN) -- President Bush on Thursday called on Congress to approve billions of dollars in additional funding for the wars in Iraq and Afghanistan before lawmakers leave for their Christmas break.
President Bush wants Congress to approve his request for war spending before the holidays.
He said the Army will have to shut down bases and start furloughing between 100,000 and 200,000 civilian workers by mid-February if Congress does not clear the funds.
"Pentagon officials have warned Congress that the continued delay in funding our troops will soon begin to have a damaging impact on the operations of this department," Bush said Thursday. "The warning has been laid out for the United States Congress to hear."
Defense Secretary Robert Gates already has ordered the Army and Marine Corps to plan for cutbacks, including civilian layoffs, termination of contracts and reduced operations at bases, The Associated Press reported. A $50 billion war spending bill, which would have required U.S. troops to begin leaving Iraq within 30 days, passed the House but stalled last week in the Senate -- with Republicans balking at the withdrawal provision...

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November 2007 genetic engineering update, Part 1

Submitted: Nov 29, 2007

Following stories have been collected by Ecological Farming Association's GE News, the indispensable electronic clipping service on genetic engineering.
Badlands Journal editorial board

New York Times
ttp://www.nytimes.com/2007/11/27/business/27sugar.html
November 27, 2007
Round 2 for Biotech Beets...ANDREW POLLACK
Each growing season, like many other sugar beet farmers bedeviled by
weeds, Robert Green repeatedly and painstakingly applies herbicides in a
process he compares to treating cancer with chemotherapy.
"You give small doses of products that might harm the crop, but it harms
the weeds a little more," said Mr. Green, who plants about 900 acres in
beets in St. Thomas, N.D. But next spring, for the first time, Mr. Green intends to plant beets genetically engineered to withstand Monsanto's powerful
Roundup herbicide. The Roundup will destroy the weeds but leave his crop
unscathed, potentially saving him thousands of dollars in tractor fuel
and labor.
For Mr. Green and many other beet farmers, it is technology too long
delayed. And the engineered beets could pave the way for the eventual
planting of other biotech crops like wheat, rice and potatoes, which
were also stalled on the launching pad. Seven years ago, beet breeders were on the verge of introducing Roundup-resistant seeds. But they had to pull back after sugar-using food companies like Hershey and Mars, fearing
consumer resistance, balked at the idea of biotech beets. Now, though,
sensing that those concerns have subsided, many processors have cleared
their growers to plant the Roundup-resistant beets next spring. It would be the first new type of genetically engineered food crop
widely grown since the 1990s, when biotech soybeans, corn and a few
other crops entered the market.
"Basically, we have not run into resistance," said David Berg, president
of American Crystal Sugar, the nation's largest sugar beet processor.
"We really think that consumer attitudes have come to accept food from
biotechnology"...

There's abundant evidence to warn people against GE crops
Sydney Morning herald, November 28 2007
http://www.smh.com.au/text/articles/2007/11/27/1196036886354.html
Announcements in Victoria and NSW that genetically engineered (GE) crops will be allowed threaten more than just the income of Australia's farmers and food companies. There is irrefutable evidence that GE foods are unsafe to eat.
Working with more than 30 scientists worldwide, I documented 65 health risks of GE foods. There are thousands of toxic or allergic-type reactions in humans, thousands of sick, sterile, and dead livestock, and damage to virtually every organ and system studied in lab animals. Government safety assessments, including those of Food Standards Australia New Zealand (FSANZ), do not identify many of the dangers, and analysis reveals that industry studies submitted to FSANZ are designed to avoid finding them.
The process of inserting a foreign gene into a plant cell and cloning that cell into a GE crop produces hundreds of thousands of mutations throughout the DNA. Natural plant genes may be deleted or permanently turned on or off, and hundreds can change their function. This is why GE soy has less protein, an unexpected new allergen and up to seven times higher levels of a known soy allergen.
The only human feeding study conducted on GE foods found genes had transferred into the DNA of gut bacteria and remained functional. This means that long after we stop eating a GE food, its protein may be produced continuously inside our intestines.
Lab animals fed GM crops had altered sperm cells and embryos, a five-fold increase in infant mortality, smaller brains, and a host of other problems.
Documents made public by a lawsuit revealed that scientists at the US Food and Drug Administration warned that gene-spliced foods might lead to allergies, toxins, new diseases and nutritional problems. When 25 per cent of US corn farmers planted GE varieties, corn sales to the European Union dropped by 99.4 per cent. All corn farmers suffered as prices fell by 13 to 20 per cent. In North America a growing number of doctors are prescribing a non-GE diet. Next year, the US natural food industry will remove all remaining GE ingredients.
Consumer buying pressure will likely force the entire food chain in North America to swear off GE within the next two years. Such a tipping point was achieved in Europe in April 1999. Australia should be taking notice of the response to GE foods throughout the world. It is certainly not the time to let the state bans expire.
Jeffrey M. Smith Executive director Institute for Responsible Technology Iowa, USA

Bush's Ag Secretary Nominee is GMO Shill
News Type: Opinion - Fri Nov 2 2007 [edited]
http://minnieapolis.newsvine.com/_news/2007/11/02/1067645-bushs-ag-secretary-nominee-is-gmo-shill
On Halloween, Pres. Bush nominated Edward Schafer for the post of Agriculture Secretary. Schafer is a two-time North Dakota governor and former co-chairman of the Governors Biotechnology Partnership. While the White House is highlighting Schafer’s experience at directing emergency aid to the 1997 flooding disaster, voters and the Senate would do well to consider his role in shielding the biotech industry from consumer product labeling laws.
According to an online search, Ed Schafer was the former co-chairman of the Governors Biotechnology Partnership. He was instrumental in getting former Pres. Clinton to back off of requirements that GM modified foods be labeled as such. See the article from The Guardian in May of 2000, titled, "Clinton bows to food producers."
There was quite a flurry of press about Mr. Schafer in 2000. You might like to look up the Salon article from its archive, "Stalking the wild Frankensalmon," from May 5, 2000. Quote:
"On Wednesday, 13 governors joined forces with the biotech industry to try to persuade American consumers to become more enthusiastic consumers of engineered food. "It makes sense to say that this isn't just the big, bad chemical companies trying to engineer something to jam down your throats," said North Dakota Gov. Ed Schafer… How political is the coalition? Consider that two of the group's three Democratic governors are from states housing the headquarters of biotech gorillas Monsanto and DuPont."
And an editorial and letter to editor in Gentech, also from May 2000, has even more of his own words about the 'promised land' of GM foods...
" In 1998, the Governor let his constituents know his innermost feelings about the "new" agriculture. In his State of the State address, he said: "...today different winds blow across our fields of waving wheat. Washington has changed the rules on...agriculture."
His 1999 address included a commercial for Monsanto's pesticide: "Every day I read about a new innovation...Roundup-ready crops..."
This year, the governor made no mistake about his intentions: "Genetic engineering will make farms smaller, more specialized and more profitable."
This ill-informed politician is the chief executive of an agricultural state, North Dakota, which produces enormous surpluses. Farmers in his state are paid subsidies not to grow corn and soybeans, yet the governor believes that genetically modified foods are the keys to easing world hunger. "

Modified forests could severely impact natural land
By: Josh Grenzsund, Columnist
Oregon Daily Emerald, 24 October 2007
http://media.www.dailyemerald.com/media/storage/paper859/news/2007/10/24/Opinion/Modified.Forests.Could.Severely.Impact.Natural.Land-3053006.shtml
Oregon has a growing self-perception, and reputation, as being a leader in the local and natural food craze. While "local" may be easy to define, it is harder to define what we mean when we say "natural."
A lot of the anxiety behind consumers' demands for "natural" foods comes from fear of the unknown. Will genetically engineered organisms spread their modified genes to their formerly "wild" counterparts and irrevocably alter the "natural" world? Maybe it's already happened. According to an article from Capital Press, "The West's Agricultural Web Site," there are as many as four million genetically improved Douglas Fir "super trees" growing in about 790 test plots in Washington and Oregon.
While that may sound like a lot of pollen blowing unchecked under the summer sun, one has to choose how to interpret the information. One could side with the official line, pushed by forest products companies like Weyerhaeuser that focus on the benefits that could be had by faster reforestation after clear cutting or fire. Or one could side with the anti-modification advocates who not only push a more sensational story, but in the past have backed up their views with vandalism and arson. One such case in 2001 actually helped U.S. District Judge Ann Aiken give Stanislas Meyerhoff a 13-year prison sentence, and qualified him as a terrorist.
In contrast to the dramatic measures used by some modification opponents, the corporate story, at least according to Weyerhaeuser, says that what is occurring in Oregon's forests is quite natural and nothing to pay much mind to. Weyerhaeuser will tell the press that their trees that display remarkable disease resistance, rapid growth, and straight trunks are not actually "genetically modified," but rather are just "genetic families" that have been bred for their desirable qualities. This is reassuring. As a discerning public we have generally acknowledged that breeding is acceptable, and a slightly controlled choice of which little fir tree gets to push its straight trunk into genetic futurity is just good business. Corporations will claim that breeding better, more disease-resistant organisms will also help with humanitarian problems, from hunger to global warming. It is, in short, inevitable, desirable progress.
The problem, however, begins to develop when Weyerhaeuser markets these same straight little trees as "genetically improved" stock for when "things are too important to be left to chance." Just a little looking will reveal some of the steps that they have taken in order to assure high survivability and growth rates.
When the Tree Biosafety and Genomics Research Cooperative at Oregon State University was still known as The Tree Genetic Engineering Research Cooperative, they publicized their work with "Roundup® resistant" trees. Aside from the obvious involvement of Monsanto on this project, Weyerhaeuser also helps fund the tree lab at OSU.
The old TGERC Web site still has information posted about their hundreds of lines of transgenic trees that "have demonstrated high levels of tolerance and no detectable growth loss after multiple Roundup® applications…[and others]…that contain a synthetic gene from the cry3a strain of Bacillus thuringiensis…showed strong resistance to the cottonwood leaf beetle…and enhanced growth rate." Here is where forest products companies end their tale and the anti-modification advocates pick it up.
While he most inflammatory propaganda from this camp will go on about "frankenforests" of genetically modified trees that will devastate native forests and change the entire notion of what the natural world is, there are more reasoned arguments that intelligently refute the economic and humanitarian claims of corporations. The coherent core of these counter-claims takes a step back and looks not only at the trees and how they fall into the saws and pulps of our economic cycles, but how they stand as organisms within a larger cycle of plant and animal organisms in the places we call our forests.
In their publication, "Genetically Modified Trees: The ultimate threat to forests," the Friends of the Earth argue that the reason we should not genetically modify our trees, and thus our forests, is because we are not the only creatures who value trees. Insects, birds, and animals do not acknowledge property and national forest boundaries. They will eat or use whatever tree they happen to encounter and, for example, a tree with insecticide properties could pollinate across boundary lines, impact insect populations and disrupt an entire food chain.
This possibility of broad pollination raises a darker part of the issue: property. If, in two or three generations, forest life contains modified genes through cross-pollination, will the companies give up their ownership of that modified gene, or will we, the people, have to give up the trees that make up our forests?
We should not allow for that possibility. We should resist technological determinism when discussing whether or not we should modify organisms' genes, because giving in to its apparent inevitability will allow the genetic composition and fate of our world, and eventually our bodies, to be established by corporations' economic concerns. This local and worldwide issue is one in which you don't want to miss the forest for all the trees.

NAFTA and Biotech: Twin Horsemen of the Ag Apocalypse
The Last Days of Mexican Corn
By JOHN ROSS
CounterPunch, November 21 2007
http://www.counterpunch.org/ross11212007.html
Mexico City.
The single, spindly seven foot-tall cornstalk spiring up from the planter box outside a prominent downtown hotel here was filling out with new "elotes" (sweet corn) to the admiration of passer-bys, some of whom even paused to pat the swelling ears with affection. Down the centuries most of the population of this megalopolis migrated here from the countryside at one time or another over the course of the past 500 years and inside every "Chilango" (Mexico City resident) lurks an inner campesino.\
But the solitary stalk, sewn by an urban coalition of farmers and ecologists under the banner of "No Hay Pais Sin Maiz" ("There Is No Country Without Corn") in planter boxes outside the downtown hotels, museums, government palaces and other historical monuments can just as easily be seen as a signifier for the fragile state of survival of Mexican corn.
As the year ripens into deep autumn, the corn harvest is pouring in all over Mexico. Out in Santa Cruz Tanaco in the Purepecha Indian Sierra of Michoacan state, the men mow their way down the rows much as their fathers and their fathers before did, snapping off the ears and tossing them into the "tshundi" basket on their backs.
In the evenings, the families will gather around the fire and shuck the "granos" from the cobs into buckets and carry them down to the store to trade for other necessities of life. It is the way in Tanaco in this season of plenitude just as it is in the tens of thousands of tiny farming communities all over Mexico where 29 per cent of the population still lives. But it is a way of life that is fading precipitously. Some say that these indeed may be the last days of Mexican corn.
In fact, this January 1 may prove to be a doomsday date for Mexican maiz when at the stroke of midnight, all tariffs on corn (and beans) will be abolished after more than a decade of incremental NAFTA-driven decreases. Although U.S. corn growers are already dumping 10 million tons of the heavily subsidized grain in Mexico each year, zero tariffs are expected to trigger a tsunami of corn imports, much of it genetically modified, that will drive millions of Mexican farmers off their land - in NAFTA's first 13 years, 6,000,000 have already abandoned their plots - and could well spell the end of the line for 59 distinct "razas" or races of native corn.
Corn was first domesticated eight millennia ago in the Mexican states of Puebla and Oaxaca and Mexico remains the fourth largest corn producer on the planet but its 22,000,000 ton annual yield pales in comparison to U.S. growers who are expected to harvest near 300,000,000 tons this year, accounting for 70 per cent of the world's maize supply. A third of U.S. corn acreage is now under genetically modified seed.
Big Biotec has had its guns trained on Mexican corn for a long time but under the national biosecurity law, Monsanto and its ilk have been barred from selling their GMO seed here. Now the transnationals are putting a full court press on the CIBOGEN, the inter-secretarial committee on bio-security, to vacate the prohibition on GMO sales - the measure was originally enacted in the late '90s in an effort to protect native seed from contamination and homogenization by genetically modified materials.
This September, the CIBOGEN was on track to designate experimental GMO farms in the north of Mexico (Sonora's Yaqui Valley and the Valley of Culiacan) where there are no native corns that could be corrupted by the engineered seeds but the designation was abruptly postponed around issues of potential contamination to the great frustration of a powerhouse pro-GMO coalition motored by the Biotec giants and including the Mexican National Farming Council (big growers), the National Association of Self-Service Stores (Wal-mart - now the biggest tortilla retailer in the country), and the National Farmers Central (CNC) which groups together rank and file farmers attached to the once-ruling (71 years) PRI party.
A dubious milestone in the history of corn was reached in July when scientists at the National Genetics & Biodiversity Laboratories announced that they had successfully mapped the genome of Mexican maiz. That was the good news. The bad news is that the genome will be available to anyone who can pay the Institute's asking price.
Who owns the genome is crucial to the survival of Mexican corn. There is little doubt that the Monsanto Corporation of St. Louis Missouri would love to get its hands on this breakthrough information so that for-profit scientists could design seeds modeled upon the DNA of native corns for commercial sales.
Mexican corn is a rich source of genetic history. Millions of adaptations to specific conditions have created a seed stock with extremely variegated properties. For millennia, native seed savers have set aside corn seed that is resistant to drought whose DNA structure Monsanto will now be able to simulate in its laboratories and market under its brand.
Monsanto took a giant step in locking up the genetic wealth of Mexico this past April 18 when it signed an agreement with the National Association of Corn Producers (CNPMM), a section of the CNC that groups together big corn farmers, to establish regional seed banks in the center and south of the country. CNC members were designated "guardians of the seed" and charged with assembling collections of native corn to be housed in Monsanto-financed repositories.
(Big bucks from Cargill and Maseca-ADM have also funded the seed banks.) "Allowing Monsanto to get so close to the secrets of Mexican corn is like asking Herod to baby-sit," writes Adelita San Vicente, an activist with the "No Hay Pais" coalition in a recent agrarian supplement of the left daily La Jornada.
55 per cent of the crops needed to feed the human race are now grown by just ten corporations. The biggest players in this monopoly game are Bayer, Dow, Dupont, Syngenta (once Novartis), and Monsanto. None of these conglomerates is a seed company. They all began their corporate life selling chemicals for war and farming.
Monsanto, which dominates 71 per cent of the GMO seed market, has operated in Mexico since the post-World War II so-called "green revolution" that featured hybrid seeds ("semillas mejoradas") that only worked when associated with pesticides and fertilizers manufactured by the transnational chemical companies. Selling hybrid seeds and chemical poisons in Mexico continues to be profitable for Monsanto whose total 2006 sales here topped 3,000,000,000 pesos ($300 million USD.) It doesn't hurt that Monsanto Mexico sells hybrid seed for $2 Americano for a packet of a thousand when its states-side price is $1.34.
22,000,000 Mexicans, 13,000,000 of them children, suffer some degree of malnutrition according to doctors at the National Nutrition Institute and Monsanto insists that it can feed them all if only the CIBOGEN will allow it to foist its GMO seed on unwitting corn farmers. But the way Monsanto sells its GMO seed is severely questioned.
Farmers are forced to sign contracts, agreeing to buy GMO seed at a company-fixed price. Monsanto's super-duper "Terminator" seed, named after California's action hero governor, goes sterile after one growing cycle and the campesinos are obligated to buy more. By getting hooked on Monsanto, Mexican farmers, once seed savers and repositories themselves of the knowledge of their inner workings, become consumers of seed, an arrangement that augurs poorly for the survival of Mexico's many native corns.
Moreover, as farmers from other climes who have resisted Monsanto and refused to buy into the GMO blitz, have learned only too traumatically, pollen blowing off contaminated fields will spread to non-GMO crops. Even more egregiously, Monsanto will then send "inspectors" (often off-duty cops) to your farm and detect their patented strains in your fields and charge you with stealing the corporation's property.
When Saskatchewan farmer Percy Schmeiser came to Mexico several years back to explain how Monsanto had taken his farm from him for precisely these reasons, local legislators laughed that it was a science fiction scenario. "It is going to happen to you," the old farmer warned with all the prescience of an Aztec seer.
Mexican corn is, of course, not the only native crop that is being disappeared by global capitalism. Native seeds are under siege from pole to pole. In Iraq, where the Tigris and Euphrates rivers come together to form the birthplace of agriculture, one of the very first acts of George Bush's neo-colonial satrap L. Paul Brenner was to issue the notorious Order 81 criminalizing the possession of native seeds. The U.S. military spread out throughout the land distributing little packets of GMO seeds, the euphemistically dubbed Operation "Amber Waves." To make sure that Iraq would no longer have a native agriculture, the national seed bank, located at Abu Ghraib, was looted and set afire.
The threat to native seed has become so acute that the United Nations Food & Agricultural Organization is funding the construction of a doomsday vault on remote Svalbard Island in northern Norway 800 miles from the North Pole. It was thought that seeds cryogenically frozen and stored in deep underground bunkers would be insured of survival. But as the polar bears of that gelid bioregion now know only too well, nothing is safe from the globalizers' hunger to destroy the planet and what it grows.

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Vern Williams

Submitted: Nov 28, 2007

I mourn the passing of Vern Williams and extend condolences to his family and his many friends and colleagues. I cannot yet imagine Vern absent from a newsroom somewhere, perhaps convening one of his incomparable "Come to Jesus" meetings to calmly restore order when it has broken down.
Bill Hatch

Merced Sun-Star
Tuesday, Nov. 27, 2007
Former Sun-Star editor, 'skilled newsman,' loses battle with cancer
By DOANE YAWGER
http://www.mercedsunstar.com/167/story/83422.html

Vern Williams

Vern Williams, a calm and steadying influence on Merced and Modesto journalism for 43 years, died early Monday morning at his Merced home after a lengthy battle with cancer. He was 62.

Williams, most recently the photo editor at the Modesto Bee, began his career as an apprentice printer at the Merced Sun-Star and advanced to positions as Linotype operator, sports editor, editor of the Sunday Sun, a short-lived Sunday newspaper, and ultimately managing editor before moving to the Modesto Bee seven years ago.

Funeral arrangements are pending for Williams, a lifelong Mercedian who also excelled in fast-pitch softball and loved all sports, particularly baseball and golf.

"He was a class act," Mike Conway said. "He managed to remain cool no matter what the pressure. He exuded calmness and confidence and always was the coolest head in the crowd."

Conway, now the city of Merced's public information officer, worked with Williams at both Merced and Modesto newspapers. He said Williams was always there when you needed him, was a positive influence on many people and had good news sense.

Frank Thompson, the Sun-Star's production manager for 31 years, hired Williams in 1964 and said he was a fine employee. He had graduated from Merced High School the previous year.

"He followed orders real good; he was a fine worker and always conscientious. He could do anything in the composing room and could be trusted," Thompson said. In his early days at the Sun-Star, he was a linotype operator and later worked in the camera room when the paper advanced from what was called letterpress or "hot type" to offset "cold type" operations.

"You couldn't help but like Vern -- and respect him as well," said Mark S. Vasché, the Modesto Bee's editor and senior vice president. "He was a dedicated and skilled newsman. More important, though, he was an all-around good person -- a man of integrity and character, with a quiet strength and a heart of gold. He will be missed by all who knew and worked with him."

Williams joined The Bee in 2000 as a copy editor on the paper's news desk. In 2004 he was named director of photography, overseeing the paper's photo and video operation.

Smokey Thomas of El Nido, who retired in May as the Sun-Star's press foreman, said he and Williams used to have fun together years ago on fishing trips and playing cards.

"He was always a helluva nice guy and a good friend," Thomas said.

Joe Cortez knew Williams for 21 years, when he was hired as a "stringer" or part-time correspondent to cover local sports events. Now a copy editor at the Bee, Cortez said he was just an aimless kid but Williams saw an aptitude for sports and writing in him.

"He took me under his wing," Cortez said. "The man had given me a career, a path in life. In the newspaper world with the landscape ever-shifting, with deadlines and rewrites, I've never met anyone who kept his head in a crisis in the way Vern did."

What started out as a boss-employee relationship just evolved, Cortez said, with Williams becoming a tremendous friend.

Williams' last day at work was Oct. 26.

Williams became the Sun-Star's sports editor on June 1, 1985 and became managing editor about 10 years later. He was a member of the Three Gateways Sportsmen's Club and was an active booster of both Golden Valley High School's football and band programs.

Williams is survived by his wife of 44 years, Kathie; three sons, Jeff, Chris and Andrew, all of Merced; a niece, Ruth Sweatt of Galt; and three granddaughters, Ashlie, Amberlee and Elizabeth Williams.

Dave Lyghtle, the Modesto Bee's assistant managing editor, also praised Williams on personal and professional levels.

"Personally, it's been a rough day up here," Lyghtle said. "Those of us who worked with Vern the past seven years really, really admired him -- respect that was cultivated long before his cancer diagnosis. In our hearts, we knew this day was coming, but the suddenness took us by surprise. He will be very much missed."

Mike Bradley, currently the Sun-Star's press foreman, knew Williams since 1970 when he started in the newspaper's composing room. He joined other Sun-Star employees at card parties Williams periodically hosted.

"He was pretty even-keeled, always a nice guy. I enjoyed working with him," Bradley said.

Bobby Dallas, of Atwater, played fast-pitch softball with Williams on the ASA Major Division national champions and said he was a mentor to him and his brother Tommy.

Williams, who went from being a catcher to coaching, was a big part in the team's success, Dallas said.

"Vern recruited me to play. He was a super guy to be with. The team was a dream of his and Norm Marasti's. He was a good person," Dallas said.

Former Sun-Star wire editor Rick Albright came to work at the Sun-Star only months after Williams started. He remembers Williams' early duties involved dumping bins of old lead type from that day's newspaper and then working setting type on one of the newspaper's linotype machines.

Albright also remembers hearing stories of Williams' travels with the California Kings' national championship men's major division fast-pitch softball team in 1984. Williams always played catcher during high school and adult softball careers.

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Department of Interior admits MacDonald wrongdoing

Submitted: Nov 27, 2007

Press release from House Natural Resources Committee on Julia MacDonald. The Department of Interior admitted to the committee that MacDonald interferred with the US Fish & Wildlife Service on behalf of special interests in several Endangered Species Act cases. Two of those cases occurred in Merced County.
Badlands Journal editorial board

------------------------

November 27, 2007

CONTACT:
Allyson Groff, 202-226-9019
Allyson L. Groff

Communications Director
Committee on Natural Resources
U.S. House of Representatives
http://resourcescommittee.house.gov

Rahall: Interior Concedes MacDonald Meddled with Science

Washington, D.C. – In response to months of allegations about political tinkering within its own ranks and demands for reviews by House Natural Resources Committee Chairman Nick J. Rahall (D-WV), the Department of the Interior today conceded that seven out of eight decisions made during the tenure of Julie MacDonald, former Deputy Assistant Secretary for Fish and Wildlife and Parks, warrant revision.

“Julie MacDonald, who was a civil engineer by training, should never have been allowed near the endangered species program. This announcement is the latest illustration of the depth of incompetence at the highest levels of management within the Interior Department and breadth of this Administration’s penchant for torpedoing science. Today we hear that seven out of eight decisions she made need to be scrapped, causing us once again to question the integrity of the entire program under her watch,” Rahall said.

Rahall has repeatedly pressed the agency to review possible political tampering within its ranks. A May 9 oversight hearing, called in the aftermath of a scathing Inspector General report, examined MacDonald’s role in politicizing the Endangered Species Act (ESA). Following up, Rahall sent two letters, dated May 17 and June 20, to Interior’s Deputy Secretary Lynn Scarlett, requesting a departmental review of a number of ESA listing decisions made during MacDonald’s service.

The latest announcement outlines seven specific ESA decisions that Interior has determined were “inappropriately influenced” by MacDonald. The Fish and Wildlife Service had announced on July 20 that it intended to review eight ESA decisions where it appeared that MacDonald had played a significant role in asserting her own political interests to overrule scientific decisions on endangered species recovery.

“Julie MacDonald’s dubious leadership and waste of taxpayer dollars will now force the agency to divert precious time, attention, and resources to go back and see that the work is done in a reliable and untainted manner. The agency turned a blind eye to her actions – the repercussions of which will not only hurt American taxpayers, but could also imperil the future of the very creatures that the endangered species program intends to protect,” Rahall said.
..............................

Contact: Leda Huta, (202) 320-6467

Sarah Matsumoto (510) 520-1004

US FISH AND WILDLIFE SERVICE TO REVISE 7 ENDANGERED SPECIES DECISIONS TAINTED BY CORRUPTION

Press Statement of Leda Huta, Executive Director, Endangered Species Coalition

Washington, DC- “The Endangered Species Coalition welcomes the news that the U.S. Fish and Wildlife Service will revise seven endangered and threatened species decisions improperly influenced by political appointees.

“We are heartened to hear that the Canadian lynx, the California red-legged frog, the Preble’s meadow jumping mouse and other species on the brink of extinction may finally receive the protections they urgently need. However, this should be the first step in a complete investigation into the Bush Administration’s corruption and political manipulation of decisions affecting our nation’s endangered species.

“This is the tip of the iceberg in terms of endangered species protections that have been weakened by political manipulations. The depth of the Bush Administration’s corruption and suppression of science has not yet been fully uncovered.

“We call on President Bush to reexamine all cases where there is documented evidence that Department of Interior officials interfered with scientific decisions. Interior Secretary Dirk Kempthorne and U.S. Fish and Wildlife Service Director Dale Hall must ensure that this process is open and transparent and that the decisions be made based on science rather than politics.

“The Bush Administration has a long history of corruption and political interference in scientific decision making in endangered species decisions. A report released in March by the Inspector General of the Department of Interior found that Assistant Secretary of Fish, Wildlife and Parks Julie MacDonald rode roughshod over numerous decisions by agency scientists concerning protection of the nation’s endangered species. The report also found that MacDonald violated federal rules by sending internal documents to industry lobbyists with ChevronTexaco, the Pacific Legal Foundation, California Farm Bureau, and others.

“We thank the members of the House Natural Resources Committee for holding oversight hearings regarding many of these decisions as well as other cases of political interference in endangered species decisions. We welcome the opportunity to work with Congress to ensure that this is a complete and thorough examination so that species on the brink of extinction receive the protections they deserve.”

As the guardian of the Endangered Species Act of 1973 (ESA) and the wildlife it protects, the Endangered Species Coalition (ESC) is composed of 380 environmental, conservation, religious, scientific, humane, sporting and business groups around the country. Our tools are public education, scientific information and citizen participation in decisions affecting the fate of at-risk species. Through extensive grassroots work, education, discussions with lawmakers, and the dissemination of information, we work to ensure that the Act itself, as well as all endangered animals and plants, can be passed on safely into the future.

###

Sarah Matsumoto
Deputy Director
Endangered Species Coalition
Oakland, CA
(510) 520-1004
smatsumoto@stopextinction.org
www.stopextinction.org

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Is growth inevitable?

Submitted: Nov 24, 2007

There are a number of planning processes going on in the San Joaquin Valley at the moment. They include the California Partnership for the San Joaquin Valley, the San Joaquin Valley Blueprint dealing with transportation planning, numerous general plan updates of counties and cities including Merced County and whatever proposals UC/Great Valley Center is fomenting. Although these planning processes are formally uncoordinated, they are closely linked by the guiding ideology of finance, insurance, real estate and large landholding interests: "Growth is inevitable."

Isn't it more likely that death and taxes are inevitable and that growth is merely desirable to some people in society? In fact, recent news suggests that growth may not even be possible in the near future, let alone inevitable.

If you read the local papers, you will see that in September Merced had the highest rate of households in some stage of foreclosure in the nation (one in 68 households). In October, Stockton came on strong with a rate of one in 31 households.

If you read the financial news, you will see that when reset time comes on the mortgages loaned in 2006 at the height of the speculative housing boom, foreclosure rates will rise.

If you read further in the financial section, you will see that most financial news is bad at the moment and that the speculative housing bubble, having burst, is spreading to credit card debt and auto loans and in fact to all securitized loans and to the banks and hedge funds. You will note articles that attribute falling stock-markets from the US to Germany to Shanghai to problems in the US mortgage-lending industry. You will also note that oil is very close to $100 a barrel now, which among other things is a hardship on the hundreds of thousands of commuters in the north San Joaquin Valley who drive to the Bay Area for work every day. You will also note bankruptcies among nationwide construction corporations and falling stock prices for those still standing.

Countrywide Financial sank 20.1 per cent on the week to $9.65 after analysts said the company could be affected if GSEs stopped buying its mortgages in the secondary market. However, the company said rumours that it would seek bankruptcy protection were "absolutely false".Meanwhile the big banks once again suffered a torrid week, precipitated by a Goldman Sachs analyst note that forecast another $48bn in writedowns by the end of 2008. Citigroup shed 6.8 per cent to $31.70 after the note said Citi could take $22bn in writedowns linked to its portfolio of collateralised debt obligations, $11bn this quarter, and $11bn next year.Homebuilder stocks were also punished amid a deepening malaise in the US real estate market.The S&P homebuilder index was down 14.3 per cent this week at 318.07, declining for six consecutive days before buyers sparked a rebound yesterday.Shares in Pulte Homes , shed 25 per cent of their value this week at $9.63. With house prices plummeting, nervous investors are keeping a careful eye on retail sales amid fears that belt-tightening consumers may deliver a poor shopping holiday season...
Elsewhere, General Motors was the Dow's biggest fallers this week, down 7.2 per cent at $27.16.-- Financial Times, Nov. 24, 2007

Recession appears now to be a more likely outcome of the speculative housing bubble than growth.

But, planners say: Now that we have the rooftops (setting aside for a moment whether the houses are inhabitated), the commercial development will come. All we need is more federal highway funds in one of the top two worst air-pollution basins in the nation as oil prices continue to escalate, they say. They also say that nothing bad can happen in Merced because we have the UC campus.

But more and more mainstream economists are saying that there has been something quite wrong with the way both residential and commercial real estate investment is handled in the US, and this mishandling is leading to global financial problems of a magnitude no one quite understands. No one is talking about any other kind of growth around here but residential and commercial real estate growth.

The slogan, "Growth is inevitable," in the San Joaquin Valley, which contains cities with the highest mortgage foreclosure rates in the nation, seems a little silly right now. The planners, politicians and special interests should come up with another slogan. If they are too rigid to invent a new slogan, perhaps the public could help them with something less rigid and more open, perhaps even a question like: "Is growth inevitable?"

Bill Hatch
----------------------

Notes:
Financial Times
Ailing mortage lenders set tone on Wall St...Chris Bryant in New York...11-23-07
http://www.ft.com/cms/s/1df0301e-990e-11dc-bb45-0000779fd2ac,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F1df0301e-990e-11dc-bb45-0000779fd2ac.html&_i_referer=http%3A%2F%2Fwww.ft.com%2Fhome%2Fus

ECB set to pump cash into money markets...Ralph Atkins and Ivar Simensen in Frankfurt and David Oakley in London...11-23-07
http://www.ft.com/cms/s/6a8adc9a-99b7-11dc-ad70-0000779fd2ac,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F6a8adc9a-99b7-11dc-ad70-0000779fd2ac.html&_i_referer=http%3A%2F%2Fwww.ft.com%2Fhome%2Fus

CounterPunch.com
"A Generalized Meltdown of Financial Institutions"
Take a Look at Professor Roubini's Crystal Ball...MIKE WHITNEY...11-24-07
http://www.counterpunch.com/whitney11242007.html

Nouriel Roubini's Global EconoMonitor
The Next Shoe to Drop in the Credit Meltdown: Commercial Real Estate and Its Massive Forthcoming Losses...Nouriel Roubini...11-14-07
http://www.rgemonitor.com/blog/roubini/226654/

The Housing Bubble
http://thehousingbubbleblog.com/index.html

Center for Economic and Policy Research: Housing
http://www.cepr.net/component/option,com_issues/task,view_issue/issue,11/Itemid,22/

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Wade resigns presidency of East Merced Resource Conservation District

Submitted: Nov 21, 2007

Bernard Wade, president of the East Merced Resource Conservation District, resigned his office and board membership at the monthly EMRCD meeting Wednesday afternoon.

At a very tense meeting of the Merced River Stakeholders Monday, Wade, who has a riverfront property near Snelling, attempted several times to inject an element of rational explanation into the argument between MRS stakeholders and the EMRCD. The attack on the stakeholders by three of the five EMRCD board members attending the MRS meeting was led as usual by Merced County Planning Commissioner Cindy Lashbrook, who is also a paid staffer for the EMRCD and the Merced River Alliance and owns a farm on the river.

The speculation is that the EMRCD would not tolerate Wade's continual polite friendliness to members of the river stakeholders groups, even those who opposed the EMRCD grant as little more than a staff gravy train.

He closed his short letter of resignation to the EMRCD board with a line from Shakespeare: "The fault is not in our stars... but in ourselves."

Bernard Wade is a gentleman whose good manners, friendliness, ability to listen and tolerance of disagreement will be sorely missed in Merced County public affairs.

Badlands Journal editorial board

The critical spirit makes distinctions, and to distinguish is a sign of modernism. In modern culture the scientific community praises disagreement as a way to improve knowledge. For Ur-Fascism, disagreement is treason. Umberto Eco, ternal Fascism: Fourteen Ways of Looking at a Blackshirt

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Varieties of federal farm subsidies

Submitted: Nov 20, 2007

"David believes this is a system that's in need of reform," Johnson said, adding that his boss is unlikely to accept any more subsidy checks. --- Scripps Howard News Service, Nov. 16, 2007, http://www.scrippsnews.com/node/28427

The terrible news about flagrant misappropriation of farm-subsidy funds begins:

"Even billionaires get ag handouts" by Lisa Hoffman More than 50 American billionaires have received government farm handouts in recent years from a program created to help struggling small farmers survive. David Rockefeller alone received more than $50,000 from investments in farming between 2003-2005.

Evidence is heaped on that those poor struggling small farmers, whose 40 acres and their mules are now being swept away by a plague of billionaires in the following graphs:

 Read More »
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Unasked questions about TNC Staten Island

Submitted: Nov 17, 2007

Assemblyman Bill Maze, R-Visalia, sicced the state auditor on a Natural Conservancy-owned ranch near the San Joaquin Delta recently. Maze says the easement and TNC management of the 9,200-acre ranch stink and asks why $17.6 million in state flood protection funds is being spent on a Delta island that shows no signs of levee improvement.

The money came from Prop. 13, passed in March 2000, originally AB 1584, the $1.97-billion Safe Drinking Water, Clean Water, Watershed Protection, and Flood Protection Act authored by then Assemblman Mike Machado, D-Linden.

The Sacramento Bee article on the flap fails to raise several important questions.

For example, quite aside from the issue of who funded the project, would TNC be able to build flood-control levees according to the terms of its conservation easement on Staten Island, winter home of a TNC-estimated 15 percent of the migratory Sand Hill cranes? The plan, as best we can determine from the article is to flood the island in the winter after the grain crops are harvested to make a pleasant habitat for the traveling cranes and other flocks. Some in Merced familiar with the quality of the TNC conservation easements to mitigate for UC Merced know that TNC is not shy about taking public funds for easements that cannot stand the light of public scrutiny. And so does the state Department of Fish and Game, the Wildlife Conservation Board and UC.

Another example of questions unasked is: how much money did TNC contribute to get Prop. 13 passed? According to CalVoter archives for the March 7, 2000 primary, although no funds were recorded in opposition to the proposition, $10,502,802 were spent selling it. (Sixty-five percent of the voters approved it.) TNC, the top contributor to the Prop. 13 campaign, gave $3,022,068 -- 29 percent of all money raised for the proposition. TNC was also the top contributor, with the same amount, to Prop. 12, the Parks, Water and Coastal Protection Act Bond, according to CalVoter.

It is also a matter of political curiosity that Staten Island is on the border of Machado's present state Senate district.

Three million to make $35 million (the other half of the Staten Island funding comes from the CALFED Bay-Delta Program) isn't a bad deal if you have the $3 million to put down when the time is right. And TNC did and no doubt made many friends among the state and federal agencies in charge of dispensing these public funds. A similar return on investment could no doubt be traced to some of the other top 10 contributors to the Prop. 13 campaign.

If this background is added to the particulars of Maze's Tulare County district, represented in Congress by Devin Nunes, R-Visalia, Scourge of the San Joaquin River Restoration Settlement that passed its first hurdle in Congress last week, perhaps the story below becomes clearer as part of the general California water war. But it is also evidence of the very arrogant way in which the multi-national environmental Leviathan TNC does business (as we have seen in Merced County), it gives bushwhackers like Maze their opportunity, it encourages every grant grifter in the tules to whip up a group of bogus stakeholders and write the state for the big bucks, and it darkens the reputation in the general public of every environmental group trying to do a decent job in a lawful, socially responsible way.

Bill Hatch
-------------------

11-12-07
Sacramento Bee
Quiet island in dispute
Use of state flood grants to buy land scrutinized...Judy Lin
http://www.sacbee.com/111/v-print/story/485403.html

STATEN ISLAND – This time of year, when the sun falls earlier by the day and the corn has been harvested, is the best time to see the sandhill cranes.

The sky above a stretch of flooded farmland on this island in the Sacramento-San Joaquin Delta becomes speckled with white and pale gray birds.

The creatures – distinguished by long legs and longer necks – come to roost on this wetland each winter. Some have been spotted for at least 18 years.

Conservationists tout the 9,200-acre island, located south of Walnut Grove in San Joaquin County, as a successful marriage between wildlife and agriculture. They applaud the state Department of Water Resources for its willingness to invest in wildlife preservation.

But a recent state audit has raised questions about the department's decision to hand $17.6 million in flood protection bond money to a non-governmental organization that emphasizes habitat protection over flood control.

State Auditor Elaine Howle stressed the need for better monitoring as the department gets ready to dole out $330 million in additional flood protection bonds.

"DWR needs to do a better job of managing the flood protection corridor program," Howle said in an interview. "We found several weaknesses in awarding the grant, as well as monitoring how well those programs are proceeding."

The audit, which was released Nov. 5, said the department failed to show the merits of five grants in 2001, including the $17.6 million Staten Island grant. The grants, which totaled $28 million in all, were funded through the Flood Protection Corridor Program, created by Proposition 13 in 2000.

DWR Director Lester Snow agreed the department needs to do a better job of tracking grants and decisions. The audit was especially critical of the department, then under former director Tom Hannigan, for not using a scoring tool that would have ranked projects based on their merit.

Snow said more staff members have since been assigned to the program.

The Staten Island grant helped the Nature Conservancy buy the island for $35 million. The California Bay-Delta Authority put up the rest of the money.

In return for the department's investment, the state retains easement rights for flood projects.

Keeping the land undeveloped gives Staten Island the potential to absorb water in case of a flood, said Dawit Zeleke, regional director for the Nature Conservancy. The water around the island is fed by the Cosumnes and Mokelumne rivers.

"When I look at the cranes, I think it's a wise investment," Zeleke said.

Some believe the money should never have been spent on buying Staten Island.

Assemblyman Bill Maze, R-Visalia, who called for the audit, took notice of Staten Island in 2005 after reading a story in The Bee about the precarious nature of levee funding. At the time, the story found that only six of the 26 miles of levees surrounding Staten Island had been maintained.

"It should not have been used for that project whatsoever," Maze said.

Since then, the audit found that not much has improved.

"Six years after Nature Conservancy acquired Staten Island, Water Resources has yet to implement a flood protection project on the island, and it is unclear whether the acquisition will ultimately result in a tangible flood protection project," the audit states.

The audit also questioned the department's contention that the island provides significant flood protection by preventing development in a flood-prone area, given what the audit called "the current legal restrictions prohibiting such development."

Snow, however, defends the department's selection of Staten Island.

Snow said funding from Proposition 13 allowed the department to acquire easements to protect floodplains while preserving the agricultural use of the property.

"The Staten Island project," Snow said, "clearly meets the statutory criteria for the program."

In addition to questioning the Staten Island grant, Howle recommended changing the grant selection process to require the department to justify the merits of each project. She also recommended following up to make sure grant recipients spent the money appropriately.

Auditors said they had no way to review the selection committee's decisions. Of 11 projects the department considered funding, five were selected without proof of a competitive process.

Snow said he intends to adopt a ranking system for future flood protection projects as the department prepares to hand out new bond money.

Last November, voters approved two bond measures – propositions 84 and 1E – that provide the department with $330 million for flood protection projects. The money has been designated for the protection, creation and enhancement of flood protection corridors and bypasses.

At Staten Island, the Nature Conservancy says the state's investment allows the farm to export nearly 40,000 tons of corn a year and provide a home for up to 15 percent of the region's greater sandhill cranes, which are listed as a threatened species.

The cycle is simple. Farmers grow corn and wheat during the year, then flood the land after crops are harvested, creating a haven for cranes and other birds.

The cranes that winter on the island are playful. On a dirt road cutting through the farm, Zeleke looks out on the birds as they throw their heads up, fan their wings and occasionally toss grass.

"This is the ideal situation," Zeleke said. "You have the economy benefiting ... and also managing the land in a successful way that the cranes keep coming back."
-----------------

Notes:

http://www.lao.ca.gov/ballot/2000/13_03_2000.html
http://www.calvoter.org/voter/elections/archive/2000/primary/propositions/13.html
www.calvoter.org/voter/elections/archive/2000/primary/propositions/topten.html
http://www.nature.org/wherewework/northamerica/states/california/projectprofiles/staten_island.html

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The real speculators

Submitted: Nov 15, 2007

The only story that matters in Merced today is how one in 68 householders are in foreclosure trouble. But, that is the story least likely to be told in public because it involves the people we elected to the city councils and the county Board of Supervisors. We will have to do our own reflecting on it; elected officials won’t.

In incorporated cities, the councils are the local land-use authorities. In unincorporated areas, the board of supervisors is the local land-use authority. These are all elected officials. In addition to two state legislators, Merced also has a congressman, Dennis Cardoza, heavily involved in real estate, whose local office is on the third floor of the county administration building.

Although we are familiar with a few development projects that have been sued, some successfully, we are only aware of one project that was rejected during this whole frenzy, which has now given Merced such a fine reputation in the finance, insurance and real estate industry. Admittedly, last month Stockton surpassed us with a one-in-31 rate, tops in the nation, but the housing crash is young and we may yet regain our title on a per capita basis.

Although it may be a benefit to the city of Merced that one realtor and one realtor/insurance agent/mortgage broker were replaced by two candidates not involved in real estate, it doesn't matter -- the damage is done and cannot be undone. When the damage was being done, five of the seven members of the Merced City Council were actively engaged in the real estate business, including the reelected mayor. The damage, however, could still be limited. The entire county does not have to become an urban, industrial slurb along the lines of cities east of Los Angeles. But, that would require reflection and gumption on the part of public officials. The recent winner of the Merced City mayoral sweepstakes, realtor Ellie Wooten, seemed to have chosen patriotism over real estate as her theme, enlivening her campaign with a rendition of “Yankee Doodle Dandy.” Patriotism is the last refuge of realtors?

Surely there were other voices in Atwater beside the realtors on its council during that town's real estate frenzy, but the realtors drowned out all others. In Livingston, the planner quipped, "When the rooftops are built, the commercial arrives." Los Banos simply exploded with commuters.

The county board of supervisors is composed of three large landowners, one failed dairyman and a professional rightwing politician, all busily speculating on more growth for Merced County on behalf of their own landholdings and on those of their supporters.

These elected officials are intent on destroying the agricultural base of this county's economy, making Merced air quality as bad as Fresno or Bakersfield, ruining the region's water quality, and destroying the natural resources and wildlife habitat that is Merced County's unique beauty and the source of what is healthy that remains in its environment. They have not shown an inkling of judgment since UC Merced was a "done deal" and to imagine they have been chastened by the foreclosure rate is fantasy. There are too many big deals in the offing: To name a few: Castle redevelopment, Riverside Motorsports Park (RMP), the WalMart distribution center, a 3,000-home new town in Stevinson, development to link Delhi and Hilmar with Turlock, a whole new commercial enterprise zone mapped out with multiple locations throughout the county, all the development that will occur along the UC Merced Parkway, the several thousand more homes in the UC Community, commercial plans for Mission Blvd. south of Highway 99, and greedy “spheres of influence” reaching out from each municipality.

Far from exercising any caution toward predatory finance, insurance and real estate special interests as well as slick operators like RMP, our elected local land-use authorities made love to them from the beginning. To believe they will change their views at this point is absurd. But absurdity is always a part of real hope. It is false hope that lacks the leaven, and false hope is going around Merced like this winter’s flu, foreclosure and fear.

To believe that chatting them up politely in their offices will change their minds belies repeated experience. All it will do is suggest to them new clever tricks to get by the public, like Kelsey's non-hearing "town-hall" meetings on RMP, or demure statements on the WalMart distribution center recently made by the city attorney or the many calculated misstatements of the losing candidate for mayor of Merced. Their minds were captured by visions of development bonanza. No matter how many development corporations go bankrupt, no matter how many of their own citizens suffer foreclosure, the elected officials on our local land-use authorities – many collecting fees on foreclosures – have been permanently blinded by that bonanza. And, for a heady season, they were somebodies, courted by the rich and powerful as the local realtors and mortgage brokers raked in the fees. And they are untouchable in their local jurisdictions.

Today, Merced County residents are suffering one of the larger financial wounds in California.. It is a position shared with those other great centers of foreclosure, Modesto and Stockton, all parts of the region we have called until recently Pombozostan, in honor of representatives Pombo and Cardoza, who intended to obliterate the very idea of endangered species and any open rangeland on which they might exist free from the developers’ ripping chisel. Stockton's largest developer leads the famous California Partnership with the San Joaquin Valley to map out future growth alongside the Valley transportation blueprint two years after he gathered a group to provide a $50,000 campaign pourboire for the Pomboza’s last charge against the Endangered Species Act.
The stink from Pombozastan keeps on rising, like the stench from the old Moffat Manteca-Fed feedlot.

The public must forget this because it is inconvenient to elected officials that the public remember it. So, hacks and flaks are dispatched to make the public forget and provide soothing propaganda to put the public to sleep again and encourage elected officials to continue the mad pace of growth to urbanize one of the world’s greatest agricultural valleys, because its land is cheaper than coastal property. This week, a free-market hack named O’Toole told a gathering of realtors in Modesto to work for the abolition of planning departments and all regulations and laws concerning planning and let the market decide it all. It was reported as an amusing lecture. In fact, that is what was done in Merced and other parts of the former Pombozastan, despite the screaming denials of the hacks and flaks. At the recent UnityFest at UC Merced, a ludicrous seminar allegedly on “Political Participation” took place, consisting of a public “dialogue” between the Merced County flak and the UC Merced flak, tossing puffballs between themselves to the mystification of a few UC students and members of the public who came to learn something about public political participation. The flaks and the hacks are very busy making the public forget what is going on as fast as it happens. The hacks and flaks are in crisis mode. Their job is to make it as difficult as possible for the public to reflect on what has happened in Merced. Today, the rap of the highly coordinated hacks and flaks in town is an impenetrable wall of development propaganda, constantly projecting an even rosier urban future as the here and now gets worse.

In a recent poll, Valley residents alone among the state’s several regions said that Valley air pollution -- not global warming -- was the worst problem in the world. We think that Valley residents, asked the question, took the opportunity to denounce their air quality and the policies, developers and politicians behind it even though the question addressed a region (the world) somewhat larger than the Valley.

The idea that a gigantic slurb the length of the San Joaquin Valley is going to be able to employ its residents is a dubious proposition, first, because the place created by the population estimated will be nearly unlivable – as Stockton and Sacramento would be without a Delta breeze – and won’t be the place attracting business geniuses creating employment. Secondly, because there is no discernable employment plan. UC Merced could well end up being the academic equivalent of Naomi Klein’s crisis capitalism, a ghoulish institution studying environmental diseases and social breakdown caused by growth its arrival in part stimulated. However, vast tracts of the Valley are owned by agribusinesses that don’t employ enough people, are selling to developers or becoming developers. Agricultural organizations like the farm bureaus (insurance companies) have become useless as representatives of anything but private property rights. Valley agriculture is in a contraction pattern, holding onto land waiting for the developer. The creativity, innovation, risk and growth that characterized it through most of the last century is exhausted. Despite massive public water projects, subsidies and subventions and psychotic immigrant policies, and decades of agribusiness propaganda, or perhaps because of them, Valley agriculture seems unfocused today, as if it has lost its sense of meaning, its purpose, its style and its sense of humor. Today, with some exceptions, it is a supine culture, full of empty self-congratulation and empty slogans it no longer believes. Valley agriculture acts like it no longer believes in itself and verything’s for sale. Ag land values seem to be holding at least in Merced County, due to sales to development investors and, lately, to ethanol pressure (one of the latest investment bubbles, which might pop before it floats). But agricultural production looks like a pretty cynical affair these days. Rice, cotton and dairy are still strong enough politically to get what they want out of a federal farm bill, but the specialty crops that are the backbone of California production got very little. Rep. Mike Thompson, D-St. Helena, would have been a far better choice than Cardoza to argue their causes in Congress. But, the Democratic leadership chose the inept Shrimp Slayer, who we think shot his wad during his sojourn in Pombo’s hip pocket trying to wreck the ESA on behalf of local developers rather than specialty-crop producers. Even members of Congress must be able to see through that: the Assistant Destroyer of ESA in 2006 becoming the Champion of Almonds, Kiwis, Blueberries and the Honey Bee in 2007.

It’s been 40 years since Valley agriculture employed many people from the towns and cities it surrounds. Perhaps that loss of connection – knowing the family of the kid in your packing shed – has also slowly rotted agriculture’s sense of local social purpose and the urban Valley’s sense of the local social purpose of agriculture. The food-distribution oligopoly and mounting off-shore competition haven’t helped either.

Politicians, bureaucracies, banks, insurance companies and every business that makes a dime off agriculture have babbled the empty slogans – worst of which because greatest insult to reality is the sanctity of “family farming” – for so long and so effectively that they have hollowed out all content from these sacred phrases. And, like more and more farming, especially of the type best done in California, American manufacturers have been chasing cheap wages off-shore to a point of probable no return and much food processing has gone with them.

Empty phrases like “working class” are beginning to appear in the newspaper. Urban hammers with rural sickles yet, from the mouths of Democrats in City Hall? Unions, which young working people tend to reject, don’t talk about the working class much anymore. Many younger Mexicans never heard of Ricardo Flores-Magon and think Cesar Chavez was a boxer.

Language—above all—language means nothing in this town since UC Merced and the developers bought public speech and the local media. Concerned citizens are warned by supervisors to speak as politely as developers, and our congressman is led to the gutless vacuum of “balance” on every important issue of state. But, we live in a moment of drastically important issues of state in which there is no “balance” whatsoever. Single-issue opponents of projects are cajoled into presenting alternatives they lack the knowledge and data to back up. Merced elected officials are competent manipulators on behalf of their own interests and other special interests. The common good of residents in the here and now is not their interest, special or otherwise. However, embracing the absurdity necessary for real hope, let us hope that the working poor of Merced and those of slightly higher income bilked by mortgage brokers in the “house of their dreams” form unions, among them a Union of the Foreclosed with Ruined Credit. The false hopes of “activists” making alliances with the gravediggers of the present residents promise nothing but one more carefully built trail over another cliff. “Working Class – This Way, Please.” When we need people to confront the land-use authorities that brought this mess down on us, we get people whose one political move is the Big Kiss Up.

Merced was a great place to farm and agriculture was acknowledged by local government to be the prime economic force in the county until the arrival of UC Merced. The campus stimulated a wild season of real estate speculation, a bubble that has now like a balloon filled with sewer water. UC Merced suggested a whole new, urban, high-tech, bio-tech future for the county, which immediately inflated the residential real estate values and deflated the importance of agriculture (if not ag land values). In one fell swoop, according to the One Voice of our leaders, Merced would transcend the problems of agriculture and become one more fantasy Silicon Valley, just like all the other fantasy Silicon Valleys scattered across the nation. It was lunacy but it sold houses at incredibly inflated prices for incredibly bad mortgages, which are now a part of a global credit crunch that is beginning to cause banks to fail. We are at the center of a massive fraud that everybody who is anybody from Merced County – from Washington to Wall Street to Bob Hart Square – was in on.

The foreclosure crisis is an opportunity for the public to reflect on the veracity, competence, and the intent of its political leaders. They show every sign of wanting to continue their mad urbanization of a rural, agricultural county still productive, relatively beautiful and healthy compared to worse excesses in San Joaquin, Stanislaus, Fresno, Tulare and Kern counties. Since the arrival of UC, their dream solution for poverty has been to squeeze out poor people with inflated real estate values. Too many ships that strategy raised a few years ago are sinking fast these days, having struck predatory financial mines. Local land-use authorities have in front of them the imperious, publicly funded, development greed of the University of California, the anchor tenant for growth down the entire east side of the San Joaquin Valley. The other end of the UC Merced Parkway is anchored by the proposed WalMart distribution center. The UC Community is planned to fill in some of the “blank space” (prime farmland) in between. Behind them, our elected officials have finance, insurance, real estate and large landholding interests. Is there any room for the citizens of Merced County today in their elected officials’ plans for their own tomorrows?

“Growth” here, which simply means more subdivisions, is anything but “inevitable.” It is the result of political deals that profit somebody at the cost of everybody’s future. We must escape the destructive drift of the economic predators and their political cronies. Banks, insurance companies, realtors and large landholders have never been the friends of rural America and they are not now, either. They should not own Merced County’s local land-use authorities. These authorities in the pockets of predators have caused economic havoc and despair in their own communities. The Valley once understood such elementary facts but its steady urbanization has reduced it to the idiocy accompanying mature corruption – the impenetrable mindset of the political class that believes its own propaganda. Former Modesto Mayor Carol Whiteside, founder of the most cynical development propaganda organ in the Valley, the UC/Great Valley Center, showed this region the way 20 years ago, with Village 1, a deal between her city council and developers that cost the City of Modesto $40 million plus interest.

The test of government is its care of the least of us, not the richest and most powerful. The grand result of local governments’ land-use design in Merced County has been to grow slums full of strangers. In a particularly cruel twist, some of these slums are brand-new subdivisions in which too many people are going bankrupt to form anything like the roots of neighborhoods. A decade ago, there were more humane elected officials and – at least in retrospect – a coherent community. The main cultural difference is UC, whose commitment to rural California has always been the technology of agribusiness. Smaller farmers and lower-income townspeople need to get together, fast. Everyone who is not in on the deal needs to organize against the deal. But, this would require a willingness to confront a gang of experienced, corrupt politicos stoned on their own growth propaganda, spoon-fed them daily by their in-house hacks and flaks. They cannot afford to admit they have done anything wrong or made any mistakes.

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Open letter from Stevinson resident Robby Avilla to Supervisor Diedre Kelsey and Assistant Planning Director Bill Nicholson

Submitted: Nov 11, 2007

As I have noted in letters to the editor of the Merced Sun-Star, and also before the Hilmar/Stevinson MAC Board, I am greatly disturbed by the process that Merced County used to expand the Stevinson SUDP (Specific Urban Design Plan).

This expansion is only being created to enable the Stevinson Ranch developers to attach a 3,880 unit gated community onto a town with a population of 400 people. Without the development there were no plans by Merced County government in place to expand the growth boundaries of the town of Stevinson.

The two of you, Supervisor Kelsey and Planner Bill Nicholson, both have said numerous times that you wanted to give something to the residents of Stevinson if this development were to be built, and so you wanted the developers to provide sewer and water to the residents of Stevinson. This was both of your selling points for including the development within an expanded SUDP for Stevinson.

I feel that you led the citizens of Stevinson astray with those comments. First, the sewer installation will be a sewer trunk line. Local residents cannot hook into a sewer trunk line. There are only 34 homes along the road where the line is to be installed. A sewer trunk line needs at least 50% capacity before it can flow. The current homes, plus the school, would not even come close to making that trunk line flow. That sewer trunk line will only be used by developers when they create even more residential development in the town of Stevinson. It will never be used by current residents for their own use as you professed that it would. Likewise, the water lines would support such a small contingency of Stevinson's population that it is all but useless to the community as a whole. Merquin School's water is continually tested. It has tested clean for drinking and they would be the main user on that line. Your idea of providing Stevinson with these amenities does not hold up considering the increase in traffic congestion that all of us would have to put up with for years before we would get new roads. I believe that both of you knew that the sewer trunk line would not be usable to the current Stevinson residents and was only being installed for further development, and also that you knew how small a population would be served by the water lines. So, I believe that both of you were not really interested in providing these amenities to the residents of Stevinson, but, instead, were trying to soften the blow of the astoundingly large development to the residents of our community.

MAC Board Chairman, Peter Stavrianoudakis, came to our group, the Stevinson Citizen's Group, saying that the Kelley family requested that Supervisor Kelsey not let him lead meetings in Stevinson anymore. When we questioned him why this could be, he said, "The Kelley family thinks that I am against their development. I am not against their development, I am just against the process that Merced County is using to get it in." Supervisor Kelsey, within one month you removed Mr. Stavrionoudakis from the board completely. You would not give a reason for his removal to the other members of the MAC Board, saying that they serve at your discretion. I feel like the MAC Board needs to be told that the Kelley family made that request of you and then just a short time later you did in fact remove him from the Board.

MAC Chairman, Peter Stavrianoudakis, requested on three separate occasions at MAC meetings that a guidance package should be provided to the Hilmar/Stevinson MAC Board for the Stevinson Ranch/Gallo Lakes Development. Mr. Nicholson, you replied that none had ever been presented to the board for comment and, you also stated, before the Board and the residents in attendance, that you would provide one. You never did so. The Hilmar/Stevinson MAC Board has never had a guidance package to comment on about the Stevinson Lakes/Gallo Ranch proposed development. However, the MAC Board was recently given a guidance package to comment on about the Turlock Golf Course Development. They are both privately funded developments. Why would a guidance package be necessary on one development and not the other?

Lastly, and most importantly, every single meeting of the steering committee that formed the enlarged Stevinson SUDP was held in violation of the Brown Act. Nothing was posted in our local newspaper about the formation of the steering committee or the meeting times and dates. Nothing was posted on our post office or any buildings in town of the meeting dates. There were no fliers sent to local residents. The meetings were held in the Stevinson Ranch Clubhouse with no agenda posted on the door.

Supervisor Kelsey, I work within the land use arena in Merced County and many of the people that I work with are staunch defenders of you. You support them and so they want to turn a blind eye as to what you have done in Stevinson. I feel differently. I do not expect them to understand what we have gone through in Stevinson, but I do expect you to right your wrongs. You have touted the Stevinson Ranch/Gallo Lakes Development on two separate occasions at the Board of Supervisor meetings, saying that you think it is a "good project". You made that statement to the Board before a final plan had been drawn and before an EIR has even been completed. You used the Stevinson Development as an excuse to keep projects ongoing during the General Plan update process.

The above issues lead me to believe that the two of you have worked in cooperation to enable the owners and developers of the Stevinson Ranch/Gallo Lakes Development to have an unfair advantage in bringing their project and an unlawfully created SUDP plan before the Merced County Planning Commission and Merced County Board of Supervisors. I believe that you knowingly led residents to believe they would benefit from amenities they will not be receiving, you tried to control the local MAC Board's opposition to the process that Merced County was using by eliminating it's Chairman at the developing family's request, you unlawfully kept the steering committee meetings quiet and you did not give the Hilmar/Stevinson MAC Board the proper paperwork.

I am sending this letter via email and hard copy. I am requesting that respective to your particular duties you:

1. Write a letter to the community of Stevinson stating that local residents would not be allowed sewer usage because of flow issues with the development's sewer trunk lines. I want it stated that these lines are for the use of future residential development and not for the use of current resident's waste. I feel that the citizens of Stevinson deserve clarification on this issue.
2. Write a letter to the Hilmar/Stevinson MAC Board stating why Chairman Peter Stavrianoudakis was ejected from the board. Bear in mind that Frank Amaral has been allowed to remain on the board as one of two representatives from Stevinson even though he rarely attends a meeting.
3. I request that the Merced County Planning Department send a guidance package for comment to the Hilmar/Stevinson MAC Board regarding the Stevinson Ranch/Gallo Lakes Development.
4. I request that the Merced County Planning Department scrap current plans of enlarging Stevinson's SUDP and start from scratch with a process that is legal, publicized and will allow the residents of Stevinson a voice in the size and scope of their own town. A steering committee might be a good solution for some situations, but I believe that when you are considering taking a town from a population of 400 to 19,000 residents it is of utmost importance for the whole town to feel they have representation. This was done in Hilmar and needs to also be done in Stevinson.
5. I request that you form a separate MAC Board for Stevinson. I request that you make that Board represent all members of our community, with members who are both pro and against this development.

I am emailing a copy of this letter to concerned parties so that they know exactly what my grievances and requests are.

Thank you, Robby Avilla

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Right here in River City?

Submitted: Nov 10, 2007

The Sacramento-based law firm of Somach, Simmons and Dunn filed suit on November 5 against Riverside Motorsports Park (RMP) for breach of a promissory note. Somach alleges that John Condren, CEO of Riverside, signed a promissory note on August 17 for $147,703.32, payable on November 1 for legal services the firm rendered to RMP. The two Somach attorneys representing RMP departed that firm for another Sacramento firm about that time, presumably piling up new, unpaid legal bills. Only one of the questions raised by the Somach suit is who will pay RMP attorneys to defend against it.

There were recent reports about a similar situation between RMP and Merced County, currently being sued under the California Environmental Quality Act for approving the racetrack project. RMP is indemnifying the county for the lawsuit, presumably paying all its legal bills. Lawsuits are now flying around the Altamont Speedway, another RMP project. Then, there were the post-Merced County-approval revelations about Condren's prior unsavory business affairs. An interesting portrait is beginning to emerge. We don't refer to the portrait of Condren, who is beginning to look like a practitioner of a fascinating criminal specialty better dealt with by dramatic geniuses like David Mamet than by mere country bloggers. We refer to now suspected suckers in high places, the same glorious Merced business, professional and political leadership that brought the city the highest mortgage-foreclosure rate in the nation last month.

Common sense and a decent hope suggest that the talented impresario might vanish, a sack of other peoples' money in hand and a trail of unpaid bills behind him. If that came to pass, perhaps a little trail of smooth dirt could be fashioned on one or two of those RMP parcels, where the above-mentioned "leaders" caked with the well-known substance could peddle their grandchildrens' plastic tricycles and chant in unison, "Vroom, Vroom, Vroom," for public amusement at the First Annual Suckers 500.

Badlands Journal editorial board

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Anatomy of the housing bubble

Submitted: Nov 04, 2007

Readers familiar with Gray's Anatomy (the book, not the TV show), will recall it is full of detailed, numbered and labeled diagrams of every part of the physical human body, the result of a long scientific tradition begun by body snatchers and grave robbers.

We have recently come across a website, http://the housingbubbleblog.com, which approaches reports of the crash of the housing bubble with the same obsessive, scientific focus on detail. Ben Jones of Flagstaff AZ, author of the site, may be the present-day Vesalius of the crash of the speculative housing boom. Although it is possible Jones is a member of the foreclosure vulture flock, even if he is out speculating on the disaster it is well to recall how useful vultures are in the natural world.

Jones gathers a great abundance of news clips from home and abroad on the housing-bubble collapse. He is performing an extremely valuable service, making the depth and breadth of the crash visible beyond the confines of any particular community in America or elsewhere -- from local housing markets to high finance to foreign markets to the economic consequences beyond the housing bubble crash. These days, The Housing Bubble Blog is an indespensible site. We are very grateful to Jones for his fine work.

Badlands Journal editorial board
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A few random selections from the blog's latest posts:

From the report: “2. What happened in 2004? The relationship between Californian house prices and disposable income as a multiple of long rates broke down in 2004; we believe that aggressive sales of ‘affordability products’ (e.g., subprime, option ARMs, home equity loans), which spiked in 2004 (see Exhibit 2), drove Californian home prices well-above levels supported by economic conditions.”
“Now that the secondary market for these affordability products has all but evaporated, we expect home prices in California to return to normalized levels (i.e. levels implied by current and forecast disposable income in California as well as U.S. ten-year treasury yields); this implies a 35-40% fall.”
“As of last August the median house price in California was $589K, but economic conditions support prices between $350-380K (see Exhibit 1); material price declines are likely, in our view.”

“‘In general, the mortgage company wants to see a consumer default on three separate payments before considering a loan modification,’ says Elizabeth Schomburg, senior VP of the Family Credit Counseling Service in Chicago.”
“Gail Cunningham, a spokeswoman for the National Foundation for Credit Counseling, says its member agencies in areas from Southern California to Texas have seen the same trend. ‘One counselor in Amarillo, Texas, just told me ‘It seems to me they almost encourage people to fall behind in order to find help,’ Ms. Cunningham says.”

“Canfor Corp. president and CEO Jim Shepard said Friday he won’t hesitate to take more sawmill shutdowns in the face of a continuing poor market and high Canadian dollar.”
“‘If this market ratchets down, we will ratchet down our production, full stop,’ Shepherd told analysts and reporters on a conference call to discuss the company’s $42.1-million third-quarter loss.”
“Prince George Trucking Association president Stan Wheeldon said there was already a reduction in work in the summer which meant more people chasing less work.”

Retail changes? “Wal-Mart is selling 26-inch high-definition TVs for $450 this weekend. Circuit City plans to give away consumer electronics prizes every day for the next 30 days, starting Sunday.”
“Retailers, eyeing the housing slump and the credit crunch that has decimated consumer confidence, are slashing prices early in the hope of snagging a bigger share of the annual Christmas spending spree. That spree is expected to be more subdued than usual, said Ellen Davis, spokeswoman for the National Retail Federation.”

“A man waiting to transfer money at the scene told Sai Gon Giai Phong he earlier bought a $300,000 apartment which now costs $2 million. ‘There’s no business more profitable than this,’ another sitting nearby intervened.”
“Vietnamese Deputy Prime Minister Nguyen Sinh Hung promised government will impose progressive taxes on housing speculation to help deflate an impending bubble in the real estate market.”
“Ho Chi Minh City recently saw disturbing degrees of speculation-based property sales ominous of a bubbling market when thousands surrounded a housing site last week to purchase flats even before foundations had been laid.”
“Prospective buyers hired proxies to wait in long winding lines for registration applications, with at least one person paid some US$1,000 simply stand in line.”

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