More and more industries are lining up to receive some sort of federal assistance, including the commercial real estate and aviation industries. Sorry, but if you are a struggling homeowner and about to lose your home, you have to wait at the end of the line until we make sure that all the corporate interests are satisfied. Hopefully, you will move up to the front of the line (or at least near the front) around January 20, 2009.
Also, reaction to Clinton's plans for the State Department, as well as the picks for her two deputies.
And, Sarah Palin wins a "Conservative of the Year" award and is compared to Margaret Thatcher, all in one day!
The line starts here! The commercial real estate industry is the latest group to advocate for financial assistance from the federal government:
Some of the country's biggest commercial real estate players are asking the government for help, as their $6 trillion industry of hotels, office buildings and shopping malls faces a record amount of debt coming due in the next few years.
and:
The real estate industry is going to the government for help because "they can," said Jim Sullivan, a managing director at Green Street, a real estate research firm in Newport Beach, Calif.
"They see what everybody else has gotten," he said. "Real estate is a capital-intensive business and there is no capital. They'll take cheap money from whoever is giving it out and now there's only one source -- the government."
The trade associations are asking that their members be included in a $200 billion lending facility that was created by the government to support the market for consumer debt such as car loans, student loans and credit cards.
As it seems with nearly every industry, something bad will happen to the economy if X, Y or Z is allowed to occur because of government inaction:
Industry officials said thousands of office buildings, hotels, shopping centers and other commercial buildings could be headed into foreclosure or bankruptcy unless the government provides support.
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Steven Syre, a columnist for the Boston Globe, explains the differences between those affected by the residential and commercial real estate markets:
Anyone who has spent much time watching the value of a home sink this year will not be shocked to discover that commercial property owners are experiencing problems of their own.
One big difference between them and you: Big commercial property owners and developers are organized when they whine to the government. They want their own slice of the $700 billion federal-loan pie.
While the commercial real estate industry doesn't get much sympathy from Syre, Mark Zandi argues it makes sense for the economy:
Some economists think the government should take action here. "This is the next big problem for the financial system and the broader economy," says Mark Zandi, who heads up Moody's Economy.com.
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Apparently, it doesn't end with commercial real estate. CQ Politics reports that the aviation industry is also looking for its share of the pie:
Virtually every sector of the aviation industry is pressing an expansive request for help in the upcoming economic stimulus bill, including proposals some groups have sought for a long time.
The joint request is coming from groups representing the major U.S. airlines, private pilots, airports, business aviation and airplane manufacturers large and small. Congress is expected to act on the stimulus legislation in January.
The aviation industry is not a huge surprise. They were in trouble even before the economic crisis hit.
Well, don't fret because I have found one industry that will likely make it through the economic crisis without needing a bailout from the federal government. The plastic surgery industry seems to be doing just fine. The Wall Street Journal reports that the botox business is still thriving even though consumers are pinched with other costs. They interview a woman with $140,000 in debt who has slashed her budget and stopped eating out, but refuses to stop getting botox injections. So, I guess this is one industry we don't have to worry about.
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Roy Blount Jr. thinks that instead of being depressed by the latest economic forecasts, we should instead update our vocabulary. 'Tis the season:
So let’s say “bah, humbug” to b-words like bailout and bankrupt. Let’s digress from anything ending in -ession. Let’s entertain some new, upbeat holiday words.
Why not wake up tomorrow morning feeling consumptious? Rhymes with scrumptious, and approaches sumptuous. When we’re consumptious we’ve got that fire in the belly that’s burning a hole in our pocket. We’re going to be pumping bucks today, we’re going to open our hearts to goods and services, we’re going to take it upon ourselves to help America, and consequently the world, re-conomize. In so doing, we can personalize what is just about the only appealing phrase regarding the economy that has emerged this year: each of us can be his or her own stimulus package.
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In political news, the New York Times reports on Clinton's plans for increasing the influence and power of the State Department:
The official, who spoke on condition of anonymity because the discussions were private, said Mrs. Clinton was being supported in her push for more resources by Defense Secretary Robert M. Gates and Mr. Obama’s incoming national security adviser, Gen. James L. Jones Jr.
For years, some Pentagon officials have complained that jobs like the economic reconstruction in Afghanistan and Iraq have been added to the military’s burden when they could have been handled by a robust Foreign Service.
“The Pentagon would like to turn functionality over to civilian resources, but the resources are not there,” the official said. “We’re looking to have a State Department that has what it needs.”
Clinton is also seeking a larger role for the State Department in economic affairs, particularly in regards to China. With that in mind, Hillary has recruited Jacob Lew, who served as Bill Clinton's budget director, to serve as one of her two deputies. Will this create tensions between the State Department and other members of Obama's economic team? Noam Schieber doesn't think so, claiming that Lew is "by all accounts one of the nicest, least sharp-elbowed guys you'll ever meet."
Clinton's other deputy will be James Steinberg, who was deputy national security advisor in the Clinton administration.
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In a not-unexpected move, Clinton announced yesterday that she is writing off the $13.1 million that she lent her campaign during the primaries. Ouch. I forget how much they are worth, but $13 million is a lot of money. You know what hurts even more? $40 million. That's the hit Romney took for his primary battle. I know he is worth about a bazillion dollars, but isn't that ridiculous?
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I'm sure Clinton will be heavily involved in solving this problem as well. Following Portugal's lead, Germany has said it will consider taking some detainees from Guantanamo, but only if other EU nations do as well. Al Jazeera reports that a government spokesman claims it is the responsibility of the United States to find homes for its detainees, but Germany may consider offering to help:
Frank-Walter Steinmeier, the German foreign minister, has ordered ministry officials to begin preparing for a possible request to take in former Guantanamo prisoners, a spokesman said, adding that German officials met with human rights activists and lawyers for detainees last month.
"Efforts to close Guantanamo must not be allowed to fail" because of difficulty finding countries to accept former inmates, Ploetner said.
Stacy Sullivan, a human rights observer at Guantanamo, asks why the government is acting like the military commissions will continue after Bush leaves office. She refers specifically to the case of Omar Khadr, who was 15 when he was detained on suspicion of killing an American soldier (he is now 22). The military is currently conducting pre-trial hearings for Khadr, and has another hearing scheduled on January 19th - the day before the inauguration and a federal holiday.
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Oh, gag. Well, it seems Sarah Palin gets a consolation prize after losing out on becoming our next Vice President:
It's no upset, and it certainly doesn't compare to the vice-presidency, but Sarah Palin didn't come away from the 2008 campaign empty-handed: she's been named "Conservative of the Year" by the right-wing magazine Human Events. And, in an extra-special honor for Alaska's governor, the announcement was made by no less a personage than Ann Coulter herself.
Even Coulter thinks Palin should get a little "older and wiser" before running for President. I think the emphasis is on "wiser" there. Also.
John O'Sullivan writes an op-ed for the Wall Street Journal claiming that Palin is actually a lot like Margaret Thatcher. And she is a star. And she is a good speaker (he loses all credibility with that one). And the "conservative snobs" are wrong about her. Also.
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Is it weird that our President-elect is a sex symbol? There is some crazy reaction this morning to his shirtless photos. Politico has a Men's Health editor discussing Obama's likely body fat percentage. The Washington Post calls it a "pec-tacular" Obama shot. Celebuzz.com calls him the "hottest President ever." Anyone else think it is just a little bit weird? Oh, and for the record, I've always thought children should be off-limits to the paparazzi. Taking pictures of people's kids and posting them online is decidedly uncool.
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So what's on your mind this morning?
I probably won't be posting every day over the holidays, so don't think I have ditched you.