US liquor sales not recession proof

The common thinking is that when recession hits, people drink more, but that has not turned out to be true in 2008. Not for hard liquor, at least. Maybe Americans are just getting high on life these days. No?

The Distilled Spirits Council of the United States (DISCUS) also abandoned its practice of giving industry forecasts for 2009, citing marketplace volatility.

The trade group joins a growing list of companies, including Fortune Brands, Microsoft, eBay and Coach, that say it is too hard to predict results in the recession.

DISCUS said U.S. revenue for spirits companies rose 2.8 percent to $18.7 billion in 2008, while sales by volume rose 1.6 percent to 184 million 9-liter cases.

That represents a slowing from 2007, when revenue rose 5.6 percent and volume rose 2.4 percent, and DISCUS's prior forecast, which called for revenue growth of 4 percent to 5 percent and volume growth of about 1.9 percent.

"Contrary to popular belief, the entire beverage alcohol sector is recession-resistant, not recession-proof," said DISCUS CEO Peter Cressy in a press release.

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Ted Haggard on Oprah... you know you wanna know

From Joe.My.God:

Ted Haggard and his wife Gayle appeared on Oprah yesterday and what a festival of nonsense and doubletalk it was. Haggard isn't straight, he isn't gay, he isn't bi, he's just "got issues". God made him this way, but God wants him to resist. Oh, and a monogamous heterosexual relationship is still the only way to go. For her part, Gayle trots out the old "desire vs. behavior" theme - if ol' Teddy is only thinking about mansex, not doing it, then he's straight. I'll have to say that Oprah called them on their bullshit at least twice.

And Joe has the video.More from CNN:

Haggard likened his struggles with his desires to the struggles faced by dieters who say, "'I'm not going to eat today' and then they eat."

Uh, yeah. Right. Read More......

Giuliani supports Wall Street bonuses despite being failures

It's hard to imagine how this guy was blown out so quickly during his Presidential bid. Why does Giuliani hate capitalism? What red blooded American doesn't believe in shoveling over billions to total failures who brought the world into the worst recession in decades? Let's just forgive and forget as we wonder if our jobs will exist tomorrow and the economy falls harder because of greed on Wall Street. How does Giuliani's plan to reward failure fit with the capitalism? Shouldn't success be rewarded? Do government handouts really work, as Giuliani is suggesting? I guess if you are worth hundreds of millions, perhaps, but not if you are poor. Then you are screwing the system and a loafer.

Bonuses for Wall Street fat cats are easy political fodder in uncertain economic times, but former New York Mayor Rudy Giuliani said Friday cutting corporate bonuses means slashing jobs in the Big Apple.

"If you somehow take that bonus out of the economy, it really will create unemployment," he said on CNN's "American Morning." "It means less spending in restaurants, less spending in department stores, so everything has an impact."

President Obama admonished corporate America on Thursday after the New York comptroller reported that Wall Street bankers received $18.4 billion in bonuses in 2008.

Then again, Giuliani does seem to be the expert on being a sponger. He's made millions telling third world cities what they already know. If billions of dollars of handouts are the answer to the problems of America, the country is completely screwed and might as well call it a day. Read More......

Dems: House GOP’s Stimulus Plan Would Actually Raise Taxes For Many Americans

Doh!

GOP leaders — led by John Boehner and Eric Cantor — have spent days bashing the economic stimulus package being touted by President Obama and Democrats because it doesn’t sufficiently cut taxes.

But is it possible that the alternative plan House Republicans unveiled as a more responsible approach earlier this week would have actually raised taxes for untold numbers of Americans?

That’s the surprising claim that House Democratic staffers who have taken a look at the GOP plan are now making. They insist to me that the Republicans did some almost comic number shuffling in drawing up their proposal, the upshot of which would be that the actual tax bill would go up for many.

And they’re now preparing to make an issue of this in the districts of Republican House members by painting Republicans as the would-be tax hikers.

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I'm with Claire McCaskill on this

She's 100% spot on.

One day after President Barack Obama ripped Wall Street executives for their "shameful" decision to hand out $18 billion in bonuses in 2008, Congress may finally have had enough.

An angry U.S. senator introduced legislation Friday to cap compensation for employees of any company that accepts federal bailout money. Under the terms of a bill introduced by Sen. Claire McCaskill, D-Missouri, no employee would be allowed to make more than the president of the United States.

Obama's current annual salary is $400,000.

"We have a bunch of idiots on Wall Street that are kicking sand in the face of the American taxpayer," an enraged McCaskill said on the floor of the Senate. "They don't get it. These people are idiots. You can't use taxpayer money to pay out 18 billion dollars in bonuses."

McCaskill's proposed compensation limit would cover salaries, bonuses and stock options.

On Thursday, Obama said the prospect that some of the $700 billion Wall Street bailout could end up paying for bonuses to managers of struggling financial institutions was "shameful."

The president said it was the "height of irresponsibility" for executives to pay bonuses when their companies were asking for help from Washington.

"The American people understand we've got a big hole that we've got to dig ourselves out of, but they don't like the idea that people are digging a bigger hole even as they're being asked to fill it up," Obama added.

And for those who don't like it, tough. Go find employment somewhere else. It's insulting to see the bonus money still be the sixth highest in history. Bring value to customers and the world and then talk about big money. Read More......

Steele Elected RNC Chair

Yes, he's African-American, and he almost lost to a guy who belonged to a whites-only country club, so let's not get carried away here...

The Republican National Committee elected Michael Steele as its first African American chairman today in Washington, a decision that came after an excruciating series of ballots that displayed a level of drama rarely seen in national politics.

On the sixth and final ballot Steele bested South Carolina Republican party Chairman Katon Dawson 91 to 77.

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They're organizing to protect DOMA already

Religious right bigots are already fundraising to protect the Defense of Marriage Act. What are we doing on our side to effectively get it repealed? This is indicative of the difference between conservatives and liberals: The right organizes years on an issue years in advance, the left organizes after we've lost.

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I think they mean the eternal flames of hell

Reader Phillip writes:

When I first read this piece I thought he was making up snark Maureen Dowd style.

WASHINGTON (CNN) -- The only bright spot in the nation's capital for Republicans these days seems to be a flame that burns 24 hours a day in the courtyard at the campaign headquarters for Republican senators.

The Eternal Flame of Freedom is near the National Republican Victory Monument, which commemorates the 1994 "Republican Revolution," when the GOP wrested control of Congress out of Democratic hands.

But no! They actually have a flame, and a victory monument. Clearly these folk do not read Shelly who penned a line or two about people building memorials to themselves.

And the kicker is that anyone could get their name inscribed on the victory monument if they became a 'platinum' donor. You can almost hear the infomercial voice-over, "but wait, there's more, call now and we will double the benefit, inscribing your name and the name of a loved one on the National Republican Victory Monument. The fully functional working model of the Ronald Regan Eternal Flame is yours to keep whatever you decide. Mount it in your office, your den, or your back deck where it doubles as a BBQ...

Of course they will build a monument for Dufus sooner or later. My suggestion is to get in there first. A twenty foot high statue of the Abu Ghraib crucified man holding a 'mission accomplished banner in his hands, sunk up to his waist in a reflecting pool of crude oil.

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Mother of 6 gives birth to 8 more

Perhaps I'm wrong, but something in my gut is telling me this isn't right. A woman with 6 children goes on fertility medicine and implants 8 more fertilized eggs in her womb? Why? Because she always wanted 7 kids, and was disappointed she only had 6? I mean, it's one thing to get pregnant again after having six kids, it's another to take fertility drugs and go for in vitro. And, these are octuplets, which also raises health issues (in addition to the overall question of whether any one family can appropriately raise 14 kids). Just me, or does anyone else get a bad feeling when they read stories like this? Read More......

Former USS Cole commander on closing Gitmo: ''We shouldn't make policy decisions based on human rights and legal advocacy groups"

Ja wohl, mein Führer:

The former commander of the USS Cole, the American war ship that was struck by a suicide boat in Yemeni waters more than eight years ago, on Thursday slammed President Barack Obama's orders to close the Guantanamo detention center and reassess the prisoners being held there.

''We shouldn't make policy decisions based on human rights and legal advocacy groups,'' retired U.S. Navy Cmdr. Kurt Lippold said in a telephone interview.

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House Republicans "delighted" and "elated" and "celebrating" over their zero votes to save the economy

This says so much about the culture in Washington. You'd like to think that members of Congress are looking out for the nation's good and the well being of their constituents. The Republicans sure aren't. Based on several news reports, it's clear the House Republicans are reveling in the united opposition to the economic recovery package.

This must seem bizarre to most people, especially those who are struggling and have lost their jobs or homes (or both). Everyone seems concerned as the economy continues to tank. Yet, the Republicans are having a party because they all voted against saving the economy. Wow.

And, from the wide coverage, its clear the Republicans want the world to know they're happy.

New York Times:

Republicans profess to be unconcerned. House Republicans on Thursday headed off to a retreat at The Homestead, a Virginia resort, still celebrating their unanimous stand — despite Mr. Obama’s visit to the Capitol to seek their support — against a package that in their view has too much big-government spending and too few tax cuts. Their unsuccessful substitute was entirely of tax cuts.

The Hill:

House Republicans still elated from their unanimous vote againt the Democratic stimulus package think they will be able to work with President Obama on future bills despite the partisan vote

Washington Post:

The bill passed easily despite the opposition of all 177 Republican House members, but party leaders delighted in what they considered a victory after two straight electoral drubbings and much soul-searching about what the party stands for.

It's all fun and games for the GOP. Read More......

US economy shrank 3.8% last quarter -- worst since 1982

Not that it's great news, but this could have been much worse. MarketWatch reports the number was closer to 5.1% if inventory was included.

The U.S. economy shrank at its fastest pace in nearly 27 years in the fourth quarter, government data showed, sinking deeper into recession as consumers and business cut spending.

The Commerce Department on Friday said gross domestic product, which measures total goods and services output within U.S. borders, plummeted at a 3.8 percent annual rate, the lowest pace since the first quarter of 1982, when output contracted 6.4 percent. GDP fell 0.5 percent in the third quarter. These were the first consecutive declines in GDP since the fourth quarter of 1990 and the first three months of 1991.

Analysts polled by Reuters had forecast GDP contracting 5.4 percent in the fourth quarter. The U.S. economy slipped into recession in December 2007, driven by the collapse of the housing market and resulting global credit crisis.

For 2008, GDP rose 1.3 percent, the slowest pace of growth since 2001, when the economy expanded 0.8 percent.

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Roland Burris should resign and let the new governor of Illinois pick someone untainted

Illinois "Senator" Roland Burris will always be seen as a stooge of now ex-governor Blagojevich. No one deserving of an appointment to the US Senate would accept one from a man like Blagojevich. Roland Burris will always be judged by his original sin. He put ego, and loyalty to a now fallen governor, ahead of his state and his country. Burris should resign and let the new governor of Illinois pick a legitimate, untainted senator to represent Illinois.

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Friday Morning Open Thread

Good morning.

This has been quite a week.

We saw our new president sign the first bill into law. The Lily Ledbetter Fair Pay Act is the first of many.

We saw that the House Republicans are continuing their assault on the American economy. It's bad enough they enabled Bush's destruction of the economy. Now, they want to block Obama from fixing it. Duly noted.

So, while there's been change, some things, like Republicans, never change. Ever.

Thread the news... Read More......

Fourth quarter GDP numbers out later today

Most expect Q4 to be bad. Very bad. Despite flimsy - at best - evidence of business tax cuts helping to boost the economy, somehow, the new plan in Washington is full of them. How many more tax cuts is business going to receive before everyone else starts seeing some benefits? What a waste of time and money to win over the GOP who even then won't support the efforts to save the economy. We're in this situation because of the Republicans yet they still don't get it.

The official report is out this morning.

The country tumbled deeper into recession and probably logged its worst economic performance in a quarter-century during the final three months of last year as battered consumers and businesses throttled back spending.

The U.S. economy is deteriorating at an alarming clip as the housing, credit and financial crises — the worst since the 1930s — feed on each other in a vicious cycle that has proven difficult for Washington policymakers to break.

The Commerce Department is set to release a report Friday expected to show the economy shrank at a pace of 5.4 percent in the October-December period, a much faster descent than the 0.5 percent decline logged in the prior quarter. If economists' forecasts are correct, it would mark the weakest quarterly showing since an annualized drop of 6.4 percent in the first quarter of 1982, when the country was suffering through a severe recession.

"It was a bloodbath," said Richard Yamarone, economist at Argus Research, referring to the economy's fourth-quarter performance.

A massive pullback by consumers is expected to play a prominent role in the economy's worsening backslide. They are cutting back on spending as jobs disappear and major investments — homes, stocks, retirement accounts — tank in value. Businesses are retrenching, too, as profits shrivel and demand wanes from customers in the U.S. and overseas.

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Iceland to be fast-tracked to join European Union

Last week I heard a joke in London that asked "what's the difference between Ireland and Iceland? One letter and the EU." (Ireland has also experienced enormous credit related problems but has been propped up by the EU.) That's about to change as the EU is moving to absorb the crisis-hit country that is on the edge of financial ruin. It seems like only yesterday that the EU was berating countries for failing to trim budgets and meet the regulations set by the EU for the common currency but now, failing appears to be a prerequisite. In Euroland (and the US as well) the concern had previously been about Iceland falling into bankruptcy and being bailed out by Russia. Many feared the growing reach of the new Russia, chock full of petro-dollars, spreading its wealth and influence.

The failing Russian economy helped slow down that process and the West provided financial assistance. Now Iceland is on target to be the 29th country in the ever-expanding European Union. Looks like right wing economics is dead in yet another country.

The conservative government in Reykjavik, in power for 18 years, collapsed this week, the first government to fall as a result of the financial meltdown which has wrecked the Icelandic currency, the krona, wiped out savings and pensions, required a massive IMF bailout, sparked unprecedented riots in Reykjavik, and forced the formation of a caretaker centre-left government until new elections can be held, probably on 9 May.

EU membership will be a central theme of the election campaign, with the social democrats - the senior partner in the coalition interim government with the anti-EU Left Greens - pushing to join the EU and to swap the krona for the single European currency as soon as possible.

"The krona is dead. We need a new currency. The only serious option is the euro," said a senior Icelandic official.

The financial disaster in Iceland has triggered extreme volatility among voters. While there is support for joining the euro as a currency safe haven to protect Iceland from a battering by the markets, there is less enthusiasm for full EU membership, particularly among those in the vital fishing sector. This factor has fuelled talk of "unilateral euroisation", meaning that Iceland might join or use the single currency without being admitted to the EU. This is dismissed in Brussels as nonsense.

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Brits may end up spending even more for London Olympics

What a waste of money. When Paris "lost" the 2012 bid to London, may in Paris were upset but I could have cared less. Joelle lived in Montreal during the Olympics and it turned out to be an enormous drain on the system. They were paying additional taxes for the honor of hosting the international drug fest. London had previously been the European capital for big finance where no deal was too large. Whipping up a few dozen billion could practically be done over lunch but those days are long gone. In an economy that heavily relied on finance (roughly 1/3 of the GDP), finance is now the biggest drag on the system. Hmmm, loans for home buyers or a loan for the Olympic village that will be used for three weeks?

Each time the IOC has another competition for the next host city, too many cities that don't have the money spend millions to make the cut. Even after winning and after the games, buildings sit idle never to be used again. Let the sports marketing companies or athletes fund this junk if they want it so much. I've watch enough of this horror show to not care if they ever bother to hold another Olympic game.

The taxpayer may end up paying to build every major venue in London's 2012 Olympic Games because private finance has dried up, the chairman of the Olympic Delivery Authority admitted yesterday.

John Armitt said it was possible that no private sector money would be found for the £1bn Olympic village in the heart of the park, the most high-profile victim of the global downturn which has already cost the taxpayer £326m more than was planned for.

The authority has already given up hope of securing funding for the £355m international media centre, which will now be paid for entirely by the Exchequer. In total, £496m has already been used from the £2bn contingency fund set aside for the project.

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