Wesley Pruden, Wash Times Now the fun begins. Nothing can fire the anger of an American like the arrogance of a government lawyer with his foot on the throat of a helpless citizen, and the justices of the Supreme Court are the government lawyers with the biggest feet of all.The justices sent a message loud and clear in their decision upholding Obamacare and the requirement that everybody has to buy a health insurance policy, or else. That's a tax, the court held, and the power to tax is the holiest of holies for any government. It's the first rule of politics as well. Franklin D. Roosevelt, the father of the...
Digging deep into the roots and evolution of the American conservative movement, Sam Tanenhaus talks with Bill Moyers about why he believes that conservatism is dead and how it might yet come back to life. Tanenhaus is the editor of both THE NEW YORK TIMES BOOK REVIEW and the Week in Review section of the TIMES.
If time permits, we will try to put together a video this weekend showing bullish developments and concerns that remain. In the chart below of VEU, price is clearly above the upward-sloping trendline near point A. The 20-day moving average (blue line) held and has turned up in a bullish manner (see point B). [...]
Some of the best reads for investors from the Web:
Great interview with economist James K. Galbraith about what caused the financial meltdown. I know, I know -- it's getting boring talking about it, but understanding all of its subtleties will help us avoid (or recognize) the next one. ___________
Interesting pair trade from BAM pair trading. ___________
Eight sneaky ways the government will try to raise your taxes. ___________
How did Big Finance grow so powerful that its hijinks nearly brought down the global economy – and what hope is there for real reform with Washington politicians on Wall Street's payroll? Bill Moyers talks with authors Simon Johnson and James Kwak, two of the nation's most respected economic experts and authors of the new book 13 BANKERS: THE WALL STREET TAKEOVER AND THE NEXT FINANCIAL MELTDOWN. Also, a Bill Moyers essay on the true costs of war.
Michael Moore, Huffington Post Even though it's been a few hours now, I'm guessing you're still pinching yourself to make sure you're not dreaming. But yes, it happened. At 10:07 this morning, the conservative Chief Justice of the U.S. Supreme Court, John Roberts, not only joined with the liberal justices to completely uphold almost every single part of the Obama health care law, he wrote the majority opinion himself! In fact, he went even further. When he realized that the government had poorly made its constitutional case to the court, he went searching for a clause in their argument and the...
In a recent column, The Globe & Mail’s Rob Carrick (see Beware the limitations of buying the index, May 11, 2012) pointed out that investing in just the TSX Composite index might leave an investor with an unbalanced portfolio because of the index’s concentration in just three sectors: financials, energy and materials. The criticism is [...]
I must admit that math is not my strong point. Buying and selling shares of ETFs in order to regain the delicate proportion and balance of each sector is not my forte either. Since the markets are down 10% since March, it might be a good idea to pick up some shares while you can [...]
Sumeet Singh, a technical leader in the applied research and architecture group at Cisco Systems, stopped to chat with us at the Emerging Technologies Conference at MIT last week. He explained a bit more about the inspiration behind and inner workings of his system to automatically protect computer networks against viruses.
At the close of Lincoln's bicentennial year, Bill Moyers Journal takes a unique look at the 16th President. Moyers speaks with critically acclaimed choreographer Bill T. Jones about his creative process, his insights into Lincoln, and how dance can give us fresh perspective on America's most-studied president.
The JOURNAL takes an in-depth look at the news of the week to sort out the media-frenzied hype from the facts the public needs to know. Factcheck.org's Kathleen Hall Jamieson and ON THE MEDIA's Brooke Gladstone dissect the campaign coverage.
The Federal Communications Commission has slapped Comcast with a $800,000 fine for not doing its part to market its standalone broadband Internet service. It was supposed to do just that as part of the conditions of its merger with NBC Universal last year. Back in January 2011, the FCC and the Department of Justice approved [...]
If you enjoy eating I think you will love this new, free, eCookbook. It includes a huge variety of recipes for appetizers, side dishes, entrees and desserts.
So what is the common ingredient in these recipes? It is Philadelphia Cream Cheese. YUM!
Here’s a quick peek at a few of the many recipes that are in this book.
Salmon Cakes with Dill Sauce
Philly Island Shrimp made with Wonton Wrappers
Zucchini Potato Latkes
Creamy Pesto Chicken
Creamy Lemon Squares
Basil Fried Green Tomato Crostini
Fiesta Cheese Fondue
Pizza Buns
Cheese and Onion Bread Pudding
Sweet Paprika Chicken with Creamy Sauce
Portobello Mushrooms Stuffed with Cream Cheese on an Arugula-Walnut Salad
Peanut Butter Pie
Deep-fried Mini Cheesecakes
Red Velvet Cheesecake Brownies
Blueberry Crumble Pizza
Click here to download your free copy of this eCookbook.
From crime beat reporter for the BALTIMORE SUN to award-winning screenwriter of HBO's critically-acclaimed The Wire, David Simon talks with Bill Moyers about inner-city crime and politics, storytelling and the future of journalism today.
I know I have not been posting very much but I thought this was something important to keep up on. So quickly – while I have free time – here is my monthly report. Overall I think I am doing pretty good at reducing my debt. Cash – Chequing Account $275.22 Cash – Everyday Savings [...]
Aided by a number of developments, the Swiss franc has been the second-best performing major currency over the past six months, reports Bloomberg. Since March 29, the currency has outpaced the dollar and the euro by 8.9% and 7.8%, respectively.
First, growing fears about the risk of default by some European nations and the negative impact that could have on the eurozone economy -- and its common currency -- sent many investors scurrying to invest in what has long been seen as Europe's safe haven currency.
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The Swiss franc has also been bolstered by the purchases of those who fear that renewed weakness in the U.S. economy and the likelihood of more monetary accommodation by the Federal Reserve will eventually lead to inflation that will drive down the value of the dollar.
Moreover, efforts by Eastern European governments to unwind low-interest franc-denominated mortgages taken on by citizens in those countries -- which have suddenly become more costly in local currency terms -- are exacerbating the squeeze, according to Bloomberg. The Smart Money Is Betting Against the Franc
The key question, of course, is will the trend continue? While there's no guarantee that the franc won't keep strengthening, various technical and sentiment indicators, as well as some fundamental developments, suggest the Swiss currency is due for at least a short-term correction.
To begin with, the franc is at a level relative to the dollar that has been a major barrier to further strength in the Swiss currency. At the same time, the F/X rate and the trend of its 14-day RSI (Relative Strength Index), a measure of momentum, are diverging somewhat, a development that has often marked short- and medium-term turning points.
In addition, the smart money is making sizable bets against the Swiss currency. Based on data from the U.S. Commodity Futures Trading Commission, commercial traders -- defined by the CFTC as those firms that are engaged in business activities hedged by the use of the futures or option markets -- have their biggest short positions in the franc since December 2009, notes DailyFX.
Bullish sentiment towards the franc has also reached contrarian extremes. According to market blog Trader's Narrative, the Daily Sentiment Index reading for the Swiss unit has reached 95% (out of 100%), while a recent Financial Times report, Resurgent Swiss Franc Seems Unstoppable, was notable for its paucity of bearish perspectives.
To top it off, fundamental conditions are not as supportive as some might believe. In recent weeks, the Swiss National Bank has softened its previously hawkish stance (over inflation concerns), while the strength seen in the currency so far will likely weigh on the nation's exports, undermining growth overall and, ultimately, demand for the Swiss currency.
Right now, the Swiss franc might seem like the one investment you can't do without: That's often the time when savvy investors start thinking otherwise.
When working on your retirement calculator, one of the most important decisions you must make can be a difficult one: when will you retire?
Deciding at which point in your life you will retire can be quite a hassle, and it can affect your future in different ways. To assist you with this, we have provided you with two substantial factors that you must consider that could affect your retirement calculator.
Factor #1: Social Security
Many people don't realize that the full retirement age has changed. They still believe that 65 is the magic number, but that is no longer true. Depending on when you were born, your full retirement age will be closer to 67, and if you're several years away, it could be even later.
Fact is, you can actually retire when you are 62 and begin receiving benefits. But while an early retirement may sound great, making this decision can have a lasting effect on your future. If you retire at 62, your monthly income from Social Security will be less than had you waited until you were 65. Taking that one step further, if you wait until after your full retirement age, your benefits will actually increase. In fact, if you wait to retire until you're 70, you will receive approximately 75% more money than if you had decided to retire when you were 62. Imagine the difference 75% could make to your future.
Factor #2: Health Benefits
If monetary concerns don't interest you as much as simply having the freedom that goes along with retirement, then you might want to consider what happens to your healthcare. As you grow older, your cost for health care will most likely increase due to a number of factors that go along with old age. Making sure that you maintain your healthcare benefits is an important part of your retirement calculator.
Many retirees plan to utilize Medicare. While that system doesn't pay for everything, it can be a great benefit and cover a large portion of your healthcare expenses. Problem is, even though you can officially declare retirement when you're 62, you cannot apply for Medicare until you're 65. Which means that if you retire early, you would need to cover your medical expenses and/or healthcare for as long as three years. This could be a costly decision that might greatly affect your retirement plans.
There are a couple of additional factors to consider, also. First, if you are receiving Social Security disability, you may be eligible to begin receiving Medicare before the age of 65. And second, some employers will supplement your Medicare costs, depending on when you choose to retire. This is becoming an increasingly important factor in the decision-making process of when to retire. If you think your employer might offer this benefit, it would be a good idea to check so that you can plan accordingly.
Other Factors to Consider
The above represent two very important factors that you must consider when deciding when to retire, but they are not the only ones. You must also consider such things as the amount of your earnings from retirement accounts that are separate from Social Security, what types of expenses you might have such as travel or hobbies, the current state of income taxes at the time of your retirement, and any kind of care or other expenses related to family members that you might need to plan for. Above all, it is important to sit down with your loved ones and a financial expert in order to help with this important decision.
Author(s): Adriana Reyneri A margin account offers investors the chance to turbocharge gains, but can also magnify losses. Should the double-edged technique count among your investment strategies? Than depends on your appetite for risk and level of expertise. According to Wilmington Trust, “Buying on margin can be tricky business and is not a venture on which a novice should embark.” How does a margin account work? A margin account allows investors to borrow money from their brokerage firm to purchase securities, according to the Financial Industry Regulatory Authority, or FINRA, which oversees securities firms. So far this year, investors have purchased on margin an average of $320 billion in securities per month, according to FINRA. The volume has regulators worried that many investors “underestimate the risks of trading on margin.” Investors open a margin account with an initial deposit, and secure a loan with securities that they purchase. Using the margin account, they can generally borrow up to 50 percent of the total purchase price for a new or “initial margin” purchase. FINRA rules require investors to maintain a balance in the margin account of at least 25 percent of the current market value of the securities in the account. Brokerage firms may impose higher margin requirements, and may do so for certain volatile stocks or a concentrated position in one stock, FINRA said. (Learn more about how Millionaire investors are responding to stock market volatility.) Should the securities used as collateral drop in price, an investor could face a “margin call,” a demand from the securities firm to repay all or part of the loan. The margin call could force an investor to sell securities at an unfavorable time, creating “substantial losses,” according to FINRA. Margin trading also carries costs, because investors pay interest on their loans. “While the rewards of buying on margin can be great, the potential losses can be just as dramatic,” according to Wilmington Trust. “For every 100 percent gain there is the potential for a 100 percent loss.” In today’s uncertain and volatile markets, Millionaires appear unlikely to make trading on margin one of their go-to investment strategies, according to a wealth study conducted by Millionaire Corner in the first quarter of 2012. About one-third of Millionaires – investors with a net worth of $1 million to $5 million, not including primary residence – say they are willing to “take significant investment risk” on a portion of their investments in order to earn a high return. Nearly half (49 percent) say it’s more important to preserve, rather than grow wealth in the current economic environment. (Risk and diversification are the top two criteria of Millionaire investors.) Still considering a margin account? It’s important you “fully understand how a margin account works,” advises FINRA, before you make trading on margin one of your investment strategies. Related Content: Investment Strategies: Forex for Diversification, Volatility Investment Strategies Millionaires Recommend to Novices
We American are at present living with the prospect of paying more than $5 a Gallon for gas. It has turned our mode of life upside down. We at house housedna.com are working to bring to life, the old joy of driving, by paying 40 cents a gallon of gas. It will be a pleasure going [...]
We have long exposure, which caters to bullish outcomes. We have a ton of cash, which aligns with our fundamental concerns. The significant bull/bear demarcation line sits between 1,268 and 1,240. Even if 1,240 holds and stocks rally, a drop to 1,240 represents a 5.5% decline from present levels. Based on [...]
As you head into retirement, the most important decision to make is how much money to save. You want to make sure that the amount is enough for how you'd like to spend your later years, without needing to worry so much about financial concerns.
But is there a limit as to how much you should be saving? Can you save too much money for your retirement? It's an interesting question, and one that can't be answered too quickly. You'll ultimately need to decide for yourself, but here are a few factors to consider:
Factor #1: You might have a tendency to put off until tomorrow what you could be doing today.
Life is short and if you don't take the time to enjoy it once in a while, it will be over before you know it, and all you'll be able to do is look back and wish you had done something different. This means that if all you're doing is sticking a huge majority of your money into retirement, you could miss out on all the great things life has to offer. Yes, you should be frugal and smart much of the time, but treating yourself to a nice trip or a new car every once in a while can do a lot to help you realize why you're saving in the first place.
Factor #2: Each person desires a different lifestyle when they retire.
No two people are exactly alike. Some will want to spend their retirement on the beaches of Cancun. Others will prefer the leisurely days spent at a golf course in Florida. Whether you choose one of these, or something entirely different, your intended lifestyle will partially determine how much you need to save. And although some people may think that you're saving too much money, it really depends on your individual needs and how luxurious you want your retirement to be.
Factor #3: At some point, your pace will probably slow down.
This is more relevant to the younger generation. When you're young, you can save quite a bit if you're careful with your money, because your expenses will probably be a lot less than when you get older. Years later, you'll probably need to worry about having a family, buying a house, and other such expenses. So although you should try to enjoy life before having all of those responsibilities, if you save as much as you can when you're younger, you won't feel so much of a financial burden once you're older.
Factor #4: You could leave yourself open to lawsuits or similar actions if you save too much.
Granted, this would only be true under very specific circumstances, but it has been known to happen. Basically, you have two inidivduals with similar salaries and mortgage amounts. The first person saves a large amouont of his salary, while the second person spends nearly every penny. Due to falling house prices, the value of their homes are incredibly low, and both decide to walk away. When the bank sees that the second individual has little in savings, they write off the loan, because going after him would be a waste of resources. But since the second person has more than enough in savings to cover the loss, they decide to sue him for the difference. Again, this is a rare scenario, but something similar could happen under the right circumstances. Try not to get yourself into this kind of situation, especially if your savings are high.
Bill Moyers sits down with NYU president and modern renaissance man John Sexton for a wide-ranging conversation about God, baseball, and the importance of thoughtful discourse in society. Previously a champion debate coach and scholar of religion and law, Sexton discusses his unique take on theology, contemporary politics, and the evolving role of universities throughout the world. Born to a struggling Catholic family in Brooklyn, John Sexton still teaches undergraduates in addition to his work as president of one of the world's largest and most prestigious universities.
Bill Moyers celebrates poetry at the Geraldine R. Dodge Poetry Festival, which included renowned poets Coleman Barks, W.S. Merwin, Stanley Kunitz, Kurtis Lamkin, among many others.
Alex Roarty, NJ If historical precedent is a guide, President Obama should be worried about the recent spate of Democrats who have declared that they won't attend their own party's national convention. But the lawmakers' decision to stay home doesn't have other Democrats reaching for the panic button yet. Such defections amounted to an early alarm bell as recently as 2008, when a deluge of Republicans steered clear of the Republican National Convention lest they be associated with a then-deeply unpopular GOP. Three months later, a Democratic wave swept the White House and congressional...
Welcome to the afternoon edition of Friday's Circle of Friends.
It is hard to believe that May is almost over and soon it will officially be summer in our neck of the woods.
There were a lot of blog posts this week about summer vacations, fun things to do in the summer, things that are free to do in the summer, and so on.
Many people make lists of things that they plan to accomplish during the summer months. I don't recall ever doing that, but I plan to do that this summer.
So many times September arrives and I find myself thinking "man, summer went by way too quickly and what did I do?".
So do you make a list of what you plan to do each summer? Maybe your plan includes spending more time outdoors in the sun, or going golfing each weekend, or reading that interesting book that you have put off reading...whatever it is, don't let this summer slip past you.
Speaking of reading, here are some very interesting blog posts for your reading pleasure this weekend. I hope you enjoy them as much as I did!
I am a tad late in releasing the stats for April but that is due to current events in my life. I do love this blog but it does not pay me thus priority is on my job. Stats for March 2012 (stats from Google Analytics except for feeds which is provided by New StatPress plugin) Visitors – 368 Pageviews [...]
Last week, I talked about how investor psychology affects our behavior and then in turn affects our investment performance. Let’s continue by looking as some more examples of how investor behavior can be influenced by psychology. Mental extrapolation. When times are tough, we tend to think they will get even tougher. When investments make money,... Related posts:
Bill Moyers sits down with history and international relations expert and former US Army Colonel Andrew J. Bacevich who identifies three major problems facing our democracy: the crises of economy, government and militarism, and calls for a redefinition of the American way of life. "Because of this preoccupation with the presidency," says Bacevich, "the president has become what we have instead of genuine politics, instead of genuine democracy." Respected across the political spectrum, Bacevich has contributed to The Nation, The American Conservative, Foreign Affairs, among others, and his latest book is The Limits of Power: The End of American Exceptionalism.
This week I found out that another book project I have been working on is going live. The Beginner’s Guide to Saving and Investing for Canadians is a primer for those just getting started with saving and investing. No complicated technical treatments, just 100 pages of easy to understand guidance on saving and investing. This... Related posts:
I love to read the newspaper, even if I am travelling I will read the local newspaper and try to see what is happening. I could read online as well but I like a hard-copy. With my favorite Canadian newspaper announcing a paywall coming soon I am starting to wonder what will a newspaper look [...]
Bill Moyers talks with economist Robert Johnson, who decodes this week's news on the bank bailout, with a hard look at the international ramifications of the plan and a discussion of why nationalization has become a flash point.
Given the widespread fear among investors today, it’s not surprising that financial institutions offer a staggering number of structured products that come with guarantees. Both market-linked GICs and principal-protected notes (PPNs) ensure you will not lose your initial investment, while also offering a chance to profit if the equity markets do well. Investors clearly find [...]
The "quadruple witching" hour -- when index futures, index options, equity options and security futures expire simultaneously -- is traditionally a time of higher trading volumes and investors decide what to do next. But if the low trading volumes so far this week are any indication, the next quadruple witching hour, scheduled Friday, will likely pass with barely a bump.
The investor uncertainty that has characterized the market's choppy performance seems to be going strong. For the entire month of September, investors have behaved as if someone cast a spell rendering them unable to rally or retreat from stocks.
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The market has been stuck in a small trading range of between 1040 and 1130 on the S&P 500 ($SPX) index for the last four months. And there's been a lower-than-normal volume of stock and options trades as investors try to figure out which way the market might head next. Even the approaching quadruple witching hasn't been able to energize traders.
"We are at a point where the economic numbers are a little bit better, but they are not good enough to convince the buyers or sellers to take a stance with any kind of conviction," says Nate Peterson, senior derivatives analyst for Charles Schwab. "It's a market where you continue to wait and see. As the [reports] come out, you look for indicators that will give you a reason to buy, or to short the market."
Waiting for News
Options investors seem to be waiting for news and economic reports to help them reassess their positions before making trades, Peterson says. As a result, the average options volume in September has slipped to 15 million contracts per week from the 20 million contracts per week the market averaged through May.
That options volume may stay low until closer to October, when companies may begin making announcements in advance of the earnings season, Peterson says. Those announcements may then give investors better clues to where the market is headed. Unfortunately, while providing some clarity for investors, those announcements can also create higher market volatility.
"Right now VIX futures are around 25 - so traders are not pricing in a lot of volatility for October," Peterson says, referring to the Chicago Board Options Exchange Market Volatility Index ($VIX), which measures the market's anticipated volatility based on the sale of S&P 500 index futures and options. Historically, volatility has usually grown during earnings seasons, and an increase in the market volatility index generally makes options and futures more expensive, so Friday may be traders' last chance to lock in positions before higher volatility -- and higher prices -- kicks in.
Leading up to the quadruple witching, some traders bought new options on Wednesday and Thursday, but it seems that most are waiting until next week to decide if they need options to protect their long positions. Those who choose to buy put options for that protection as earnings season approaches can likely get them cheap, relatively speaking, on Friday, Peterson says.
And getting cheaper protection would definitely take the hex out of quadruple witching.
NEWARK, N.J. -- A former attorney who admitted feeding privileged information to two confederates over the course of a 17-year insider stock trading scheme was sentenced Monday to 12 years in prison, the longest sentence ever handed out for insider trading, and the trader who reaped more than $20 million in profits from the tips received a nine-year sentence, authorities said.
U.S. Attorney Paul Fishman said former attorney Matthew Kluger's sentence is the longest handed out for that crime. The scheme was carried out from 1994 to 2011 and is believed to be the longest ever uncovered by law enforcement, though the crimes charged dated only to 2005.
"At the end of the day, the judge agreed that these were extraordinarily serious crimes that betray people's trust in the stock market and were motivated purely by greed," Fishman said.
The 51-year-old Kluger, of Oakton, Va., and former trader Garrett Bauer, 44, of New York, admitted last year they conspired with a third man, New York mortgage broker Kenneth Robinson, who acted as the middleman.
Robinson was arrested in 2011 and secretly recorded conversations with the other men, including one in which Bauer discussed lighting $175,000 on fire to erase his fingerprints, according to court documents.
Robinson, who pleaded guilty to his role in the scheme, is scheduled to be sentenced Tuesday.
Kluger admitted passing advance information on company mergers to Robinson, who would give it to Bauer. The trio was estimated to have made $11 million on tech company Oracle's acquisition of Sun Microsystems.
Assistant U.S. Attorney Judith Germano told the judge that Kluger was the mastermind.
"He had wealth, intelligence and family support," she said. "He abused it all. Why? Because he could."
Defense Attorney Alan Zegas argued for a shorter sentence for Kluger and said that Bauer realized the lion's share of the profits while Kluger took only a small fraction of the total and was not aware of many trades that Bauer made on his own.
U.S. District Judge Katharine Hayden rejected Zegas' argument and said that every one of more than 30 insider trades made by Bauer was based on information provided by Kluger, whom she characterized as "amoral" and "thuggish." She compared the trio to drug dealers for the way they used throwaway cellphones and multiple ATM accounts to withdraw cash and exchange it in envelopes or bags.
Zegas said he would appeal the sentence.
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Kluger, who said in remarks to the court that he was "deeply, deeply sorry," insisted afterward that the sentence was too harsh. Hedge fund billionaire Raj Rajaratnam was sentenced to 11 years in October after being convicted in the biggest insider trading case in U.S. history.
"I guess it's better to take $68 million and go to trial and be unwilling to accept responsibility for what you did," Kluger said, referring to Rajaratnam, who maintained that he traded only on publicly available information.
Defense attorney Michael Bachner attempted to persuade the judge to reduce Bauer's sentence by mentioning the numerous public speaking appearances Bauer has made since his arrest at business schools and law schools and the extensive work he has done with children's charities.
"He is not like Gordon Gekko," Bachner said, referring to the Michael Douglas character who said in the 1987 movie Wall Street that "Greed is good."
Assistant U.S. Attorney Matthew Beck painted a contrasting picture to the court, pointing out that after Securities and Exchange Commission regulators began probing his activities in 2007, Bauer upped his trading volume.
"That's a moment of self-reflection for anyone," Beck said. "That's not what they did. Garrett Bauer instead began increasing the size of his trades. This is hubris like you've never seen."
Angela Merkel has firmly rejected the use of eurobonds ahead of a crucial summit in Brussels this week, ruling out jointly guaranteed eurozone debt for "as long as I live".
Bill Moyers talks with economist Robert Johnson, who decodes this week's news on the bank bailout, with a hard look at the international ramifications of the plan and a discussion of why nationalization has become a flash point.
The catastrophe unfolding in the Gulf of Mexico has been portrayed as a one-of-a-kind disaster, a perfect storm of bad equipment, bad planning and bad luck.
But it’s far from the only spill that’s taken place this year – or even the only spill occurring in the Gulf right now.
On June 7, the Mobile Press-Register reported that the Ocean Saratoga rig has been leaking into the Gulf since April 30. Interior Department spokeswoman Kendra Barkoff confirmed the next day that “small amounts of oil” were leaking from the wells beneath the rig, about 10 miles from Louisiana’s southeastern coast.
Taylor Energy, the well’s owner, said in a statement that it was engaged in an “ongoing well intervention plan” with the government to fix damage caused by Hurricane Ivan in 2004, and that no significant new spill had occurred.
The Deepwater Horizon isn’t the only recent spill for BP, either. On May 25, according to Reuters, an accident on the Trans-Alaska pipeline spilled thousands of barrels of oil and forced the pipeline to be shut down for more than three days. BP is the largest owner of the pipeline operator, controlling 47 percent. (Read our story about BP’s troubled history in Alaska and its other U.S. operations.)
If it seems as if oil spills – and particularly offshore spills in US. waters – are on the rise, that’s because they are.
A USA Today analysis of federal data found that spills from offshore oil rigs and pipelines have more than quadrupled in the last decade. From the 1970s to 1990s, offshore facilities averaged four spills per year of more than 50 barrels. From 2000 to 2009, the annual average soared to 17.
The report also found that the rate of oil being spilled was increasing faster than the growth in production. From USA Today:
In the 1980s, an average of about 2,900 barrels of oil and other toxic chemicals spilled a year. That figure rose to more than 4,400 in the 1990s and to more than 6,100 in the 2000s. Offshore oil production increased during that time, but the rate of barrels spilled per barrels produced continued to increase.
The company with the most spills in the last decade was BP, which had reported 23 spills of over 50 barrels without counting the Deepwater Horizon blowout.
Why are offshore oil facilities spilling more in recent years than they have in the past?
One possibility is that regulators haven’t been able to keep up with the surge in offshore drilling. The Washington Post reported Thursday morning that the Minerals Management Service has only seven more inspectors now that it did in 1985, even as offshore drilling projects have skyrocketed. From the Post:
Although the number of exploration rigs soared and the number of deep-water oil-producing projects grew more than tenfold from 1988 to 2008, the number of federal inspectors working for the Minerals Management Service has increased only 13 percent since 1985.
A message left for MMS this morning has not been returned.
Stefan Mrozewski, a drilling engineer with Columbia University’s Borehole Research Group and a former oil industry employee who once worked on the Deepwater Horizon, said the increase may in fact be driven by a very different dynamic – better voluntary reporting of spills by the industry.
Oil companies and service companies in the Gulf of Mexico “have – at least over the past 10 years – been extremely conscientious about report [sic] spills, incidents, hazards, etc,” wrote Mrozewski in an e-mail. “I would venture that the same attitude did not prevail in the 90s, and certainly not in the 70s.”
David Miller of the American Petroleum Institute, a trade association for the oil and gas industry, said that offshore drilling was heavily regulated by the government, citing the MMS’s extensive guidelines for deepwater drilling.
“There’s quite a few regulations that the industry has to follow to be in compliance with the MMS,” said Miller.
Another possibility is that oil is simply harder to reach now – that increased consumption has led companies to turn to deeper waters and riskier procedures to satisfy the ever-expanding demand for energy.
“While the point of “peak oil” may or may not have been reached, what Michael Klare, a professor at Hampshire College, has dubbed the Age of Tough Oil has clearly begun,” wrote the New Yorker’s Elizabeth Kolbert on May 31.
David Boies and Ted Olson talk with Bill Moyers about the Supreme Court's contentious Bush v. Gore decision in 2000 and the court's recent ruling in the Citizens United case.
Author(s): Donald Liebenson Parents are not the only ones worried about the financial situations of their children or grandchildren. Their children and grandchildren are pretty worried, too, according to a recent TD Ameritrade survey. In first quarter wealth level studies conducted by Millionaire Corner, respondents’ concerns about their children’s or grandchildren’s financial situations increased in 2012 over last year, likewise financing the education of their grandchildren. The TD Ameritrade survey finds that college looms large on the list of concerns for Generation Z, those roughly between the ages of 13 to 22. Thirty-nine percent said they are concerned about affording college and having student loans (as befitting this truly wired and tech-enhanced generation, 40 percent said they are worried about their identities being stolen). When asked about their biggest concerns about the economy, nearly a quarter of Generation Z and their parents listed jobs and unemployment. Their concern is well-founded. The unemployment rate for teenagers in May was 24.6 percent. While two-thirds of the Class of 2010 entered the real world with student loan debt, according to a November 2011 report by the Project on Student Debt, just one-quarter of Generation Z said they rely on or will need student loan assistance. Are they more optimistic than their elders or, to quote Professor Harold Hill in The Music Man, are closing their eyes to a situation they do not wish to acknowledge or are not aware of the caliber of disaster that may await them? Millionaire Corner research finds that younger investors do tend to be more optimistic about the economy and their financial futures. In an April survey, eight-in-10 respondents under 40 said they believed the U.S. economy will improve after the election compared with seven-in-10 percent of older respondents. In another survey conducted last March, 62 percent of those under 40 said they were better off than they were four years ago, compared to about 40 percent of baby boomers and seniors. To their credit, 78 percent of Generation Z say that saving money is important and 41 percent said they have established a budget. When asked what they would do with an extra $500, 55 percent said they would save it and 11 percent would earmark it for college. Red flags emerge in their use of a credit card. Fifty-eight percent said that have carried a balance for six months or longer. Less than one-quarter (23 percent) said they pay off their balance monthly. Also troubling is that 23 percent of 18-22 year-olds and 41 percent of 16-18 year-olds said they do not have a checking or savings account. Related Content: Economy Forces Millennials to Put Plans on Hold Gen Xers Not Slacking Off When it Comes to Retirement Planning
Syria Had No Time to Take Any Other Action The world is already in Cold War 2.0 in Syria. Now we are edging closer to a hot war. Self-defense has been a recognized legal right for thousands of years. But … Continue reading →
Cyprus became the fourth eurozone country to ask for an international bail-out with the admission it cannot cope with its spiralling national debt without external help.
TR35 winner Matthew Herren has a plan for improving education in Africa: beam in textbooks using one-way satellite radio. Technology Review asked him about the status of the project at the Emerging Technology Conference today. Herren explained how he hopes to make the most out of the continent's limited infrastructure resources.
Syria Had No Time to Take Any Other Action The world is already in Cold War 2.0 in Syria. Now we are edging closer to a hot war. Self-defense has been a recognized legal right for thousands of years. But … Continue reading →
Is it possible for a portfolio to be too diversified? There are certainly a lot of articles making that claim. Investopedia even has one called The Dangers of Over-Diversifying Your Portfolio that concludes like this: “Diversification is like ice cream: it’s good, but only in reasonable quantities.” Is the only free lunch in investing really [...]
Britain needs a "substantial" amount of further quantitative easing to jump-start its stalled economy, BoE policymaker David Miles said in an interview with the Financial Times.
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Aided by a number of developments, the 
Welcome to the afternoon edition of Friday's Circle of Friends.
The "quadruple witching" hour -- when 
By DAVID PORTER
The catastrophe unfolding in the Gulf of Mexico has been portrayed as a one-of-a-kind disaster, a perfect storm of bad equipment, bad planning and bad luck.
