Eeyore's News and views

Here is an alternative housing idea. I remember not to long that you could buy those containers pretty cheaply from ports. It was cheaper for China to build new ones then to ship the original ones back to China. So they were piling up in the ports. I imagine with the run up of the price of steel, they were probably taking them out and scrapping them.
Young firm turns shipping containers into homes The Associated Press CORRALES, N.M. - It was a side trip through a destitute, ramshackle neighborhood in Ciudad Juarez, Mexico, that detoured Brian McCarthy from building houses in Albuquerque to an idea to offer the very poor a chance to own a home.His answer lies in a humble steel shipping container, 40 feet long, 8 feet wide, 8 1/2 feet tall.McCarthy, 30, and three partners, Pablo Nava, 22; Kyle Annen, 23; and Mackenzie Bishop, 22, have made a prototype out of a standard shipping container that hauls goods worldwide - a 320-square-foot home with a kitchen, bath with toilet, sleeping areas, windows and a bright blue door. The exterior is painted with a white epoxy coating that has light-reflecting properties to prevent the sun's heat from penetrating. Each small house includes hookups for air conditioning, ventilation, electrical and water systems - and the units ideally could be set up in small communities to make accessing utilities more efficient.The idea began to take shape several years ago, when McCarthy went to the Mexican border city on a field trip as part of an executive MBA program. He found himself impressed by the sophistication and rapid growth of industry in Juarez, but shocked when the bus cut through a poor neighborhood on the way out of the city."We saw hundreds of homes that are made out of wood pallets and cardboard and scrap metal and scrap building material," McCarthy said. When he questioned the bus driver, "he said, Well, all the people who live here work in the places you just visited.'""It was amazing to me that in an area where there was such growth and economic prosperity, that these employees of Fortune 1000 companies were living in such poor conditions."With Juarez growing by 50,000 to 60,000 people a year and wages low, it was evident traditional homebuilding couldn't respond, said McCarthy, who'd worked in various facets of building homes in Albuquerque.An idea began taking shape about a year and a half later when he saw an article about a shipping container converted into guest quarters."They talked about the merits of the construction, how strong they are, how affordable they are, and how plentiful they are," McCarthy said.He called Nava, his cousin, with the low-cost home idea. A year later, Nava, then a junior at Notre Dame University, suggested entering the university's business plan competition.Their initial three-quarter page concept expanded as they advanced in the contest. Along the way, Nava invited his roommate, Annen, to join. As the group's acknowledged computer graphics whiz, Annen added drawings to give the presentation more life.Eventually, they won the contest with a 55-page document, illustrated by renderings and floor plans.In July 2007, the partners formed PFNC Global Communities - PFNC stands for "Por Fin, Nuestra Casa," which roughly translates as "Finally, our own home." They operate out of a back room in a Corrales realty firm but eventually expect offices in Juarez or adjacent El Paso, Texas, and a Juarez plant to manufacture shipping container homes.The house faces two constraints: designing in only 320 square feet and keeping the price to around $8,000 to be affordable for the average worker at maquiladoras, manufacturing plants in Mexico along the U.S. border, McCarthy said.The partners looked at clever designs for small condos and lofts, travel trailers and even private jet planes, adapting ideas they felt would work."We started with a kitchen and bathroom because they're the most necessary and most basic ingredients of a home," McCarthy said. They designed a galley-style kitchen with a stove, sink, refrigerator and dinette, and a 48-square-foot bathroom with a pedestal sink, shower and commode. Adjacent to the kitchen is a bunk area for children; separate sleeping quarters for the owners lie behind the bathroom wall.The house may be sparse by U.S. standards, but Nava said it's a huge improvement in safety, security and health over where many now live.When drawings and color pictures of the prototype were shown around a poor Juarez neighborhood, people said, "You know it'd be like a dream to live in one of these," Nava said. "You know, just the thought of having nice fresh air ventilating through the house, a large bed ... a normal kitchen and a safe home that locks and closes each night was more than appealing."Annen cites modern architectural design, with bare metal and piping. "This would fit right in any major city," he said.The company has received a commitment for equity investment and is in the process of finishing details and closing its first round of funding. The partners anticipate starting production early next year, with the capacity to produce 3,000 homes in the first year and later ramping up.They figure a half million people could benefit from such homes in Juarez alone.PFNC doesn't intend just to build shelter. It wants to build communities, and McCarthy said the group expects to have the first pilot community on the ground late next year."That was our goal, more than just four walls and a roof but to kind of raise the standard of living in Juarez and other places," Nava said.The shipping containers, which can be hauled by truck, rail or ship, are designed to stack. PFNC envisions a cluster arrangement, eight side by side and four high, with apartment-type balconies and staircases in the corners.Clusters could be arranged into squares, creating "a safe little plaza in the middle where we hope to build a soccer field or a playground, some safe area for families to be," Nava said.PFNC wants to set up programs with maquiladoras to offer housing as an employee benefit, helping cut the high rate of worker turnover, now between 7 percent and 10 percent a month, McCarthy said. The company is working with a Mexican law firm that has handled work-to-own housing programs."This is not a rental-type situation or free housing while you work here," McCarthy said. "Rather, the employer takes on some of the burden in setting up the financing program to transfer ownership to the employee."That's important because PFNC needs large orders to keep costs down so low-wage workers can afford the home. The incentive for employers: Studies show housing for employees dramatically increases retention, and having more workers in a given area will reduce the number of buses maquiladoras run to take people to and from their jobs.PFNC doesn't view its homes as the last stop."With our design and with our price point, we think we'll at least be able to take the first step of getting more families into more homes" and formal property ownership, McCarthy said."We fully anticipate that people will move into our homes, build up some equity, sell this home," he said. "We see this is a stepping stone to get into a bigger or more comfortable home."http://www.azcentral.com/business/consumer/articles/2008/09/23/20080923biz-containerhomes23-ON.html

This is interesting timing, why would Washington Mutual go out or under while or as the talk of the bail out was taking place. I yhink most people are over looking the timimg here. Most are satified that trhe Goverment got a billion plus (bribe money) for doing the deal. Strange
WaMu becomes biggest bank to fail in US history
By MADLEN READ, AP Business Writer Fri Sep 26, 4:00 PM ET
NEW YORK - As the debate over a $700 billion bank bailout rages on in Washington, one of the nation's largest banks — Washington Mutual Inc. — has collapsed under the weight of its enormous bad bets on the mortgage market.
The Federal Deposit Insurance Corp. seized WaMu on Thursday, and then sold the thrift's banking assets to JPMorgan Chase & Co. for $1.9 billion.
Seattle-based WaMu, which was founded in 1889, is the largest bank to fail by far in the country's history. Its $307 billion in assets eclipse those of Continental Illinois National Bank, which failed in 1984 with $40 billion in assets; adjusted for 2008 dollars, its assets totaled $67.7 billion. IndyMac, seized in July, had $32 billion in assets.
One positive is that the sale of WaMu's assets to JPMorgan Chase prevents the thrift's collapse from depleting the FDIC's insurance fund. But that detail is likely to give only marginal solace to Americans facing tighter lending and watching their stock portfolios plunge in the wake of the nation's most momentous financial crisis since the Great Depression.
You can read the whole article here
http://news.yahoo.com/s/ap/washington_mutual_future

This also something that you should be watching, is how much of the money is going to these other countries to help them through.
Asia Needs Deal to Prevent Panic Selling of U.S. Debt, Yu Says
By Kevin Hamlin
Sept. 25 (Bloomberg) -- Japan, China and other holders of U.S. government debt must quickly reach an agreement to prevent panic sales leading to a global financial collapse, said Yu Yongding, a former adviser to the Chinese central bank.
``We are in the same boat, we must cooperate,'' Yu said in an interview in Beijing on Sept. 23. ``If there's no selling in a panicked way, then China willingly can continue to provide our financial support by continuing to hold U.S. assets.''
An agreement is needed so that no nation rushes to sell, ``causing a collapse,'' Yu said. Japan is the biggest owner of U.S. Treasury bills, holding $593 billion, and China is second with $519 billion. Asian countries together hold half of the $2.67 trillion total held by foreign nations.
China, Japan, South Korea and others should meet soon to seal a deal, said Yu, a former academic member of the central bank's monetary policy committee. The talks should involve finance ministers, central bank governors and even national leaders, he said.
``Whether some kind of agreement between them to continue to hold Treasury bills is viable, I'm not sure,'' said James McCormack, head of sovereign ratings at Fitch Ratings Ltd in Hong Kong. ``It would be unusual. If it became apparent that sovereigns in Asia were selling Treasuries the market would take that quite badly, it's something to be avoided.''
The global credit crisis, triggered by a housing slump in the U.S., has saddled financial companies with more than $520 billion in writedowns and losses, collapsing Bear Stearns Cos. and Lehman Brothers Holdings Inc. in the process. Insurer American International Group Inc. and mortgage giants Fannie Mae and Freddie Mac also were rescued by the government.
`Grave Threats'
U.S. Treasury Secretary Henry Paulson is urging Congress to pass a $700 billion plan to remove devalued assets from the banking system. Federal Reserve Chairman Ben S. Bernanke said Sept. 24 that the U.S. is facing ``grave threats'' to its financial stability.
China's huge holdings of U.S. debt means it must bear a large proportion of the ``burden of sorting things out'' in the U.S., Yu said. China is not in a hurry to dump its U.S. holdings and communication between the two nations every ``couple of days'' is keeping Chinese leaders informed and helping to avoid a potential panic, he added.
``China is very worried about the safety of its assets,'' he said. ``If you want China to keep calm, you must ensure China that its assets are safe.''
Currency Manipulator
Yu said China is helping the U.S. ``in a very big way'' and added that it should get something in return. The U.S. should avoid labeling it an unfair trader and a currency manipulator and not politicize other issues, he said.
``It is not fair that we are doing this in good faith and are prepared to bear serious consequences and you are still labeling China this and that, accusing China of this and that,'' he said. ``China knows what to do. We don't need your intervention.''
The U.S. financial crisis had taught China a lesson and that was: ``Why are we piling up these IOUs if they may default?'' China's economic expansion strategy, which emphasizes export growth that has led to trade surpluses and the accumulation of $1.81 trillion in foreign-exchange reserves, is the main problem, said Yu.
``Our export-growth strategy has run its natural course,'' he said. ``We should change course.''
China should stop intervening in the foreign currency markets and thus allow rapid appreciation of the yuan, he said. While this would cause pain for exporters, China could ease the transition by using its strong fiscal position to aid those who lose their jobs. It also should stimulate domestic demand to offset lower income from overseas sales.
Without yuan appreciation, China will continue to accumulate foreign reserves, which means further accumulating ``IOUs from the U.S.,'' said Yu. ``This is paper and it may default and it will not increase China's national welfare.''
If China doesn't allow the yuan to appreciate and continues to promote export-led growth it will lead to confrontation with the U.S. and Europe, Yu said.
http://bloomberg.com/apps/news?pid=20601087&sid=anZHfo6tQi60&refer=home


Ron Paul's Federal Reserve Abolition Act - HR 2755 - Bravo!9-25-8
If you agree, call your Congressman today...
Federal Reserve Board Abolition Act (Introduced in House)
HR 2755 IH

110th CONGRESS

1st Session

H. R. 2755

To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

June 15, 2007

Mr. PAUL introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Federal Reserve Board Abolition Act'.

SEC. 2. FEDERAL RESERVE BOARD ABOLISHED.

(a) In General- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System and each Federal reserve bank are hereby abolished.
(b) Repeal of Federal Reserve Act- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Federal Reserve Act is hereby repealed.
(c) Disposition of Affairs-

(1) MANAGEMENT DURING DISSOLUTION PERIOD- During the 1-year period referred to in subsection (a), the Chairman of the Board of Governors of the Federal Reserve System--
(A) shall, for the sole purpose of winding up the affairs of the Board of Governors of the Federal Reserve System and the Federal reserve banks--
(i) manage the employees of the Board and each such bank and provide for the payment of compensation and benefits of any such employee which accrue before the position of such employee is abolished; and
(ii) manage the assets and liabilities of the Board and each such bank until such assets and liabilities are liquidated or assumed by the Secretary of the Treasury in accordance with this subsection; and
(B) may take such other action as may be necessary, subject to the approval of the Secretary of the Treasury, to wind up the affairs of the Board and the Federal reserve banks.

(2) LIQUIDATION OF ASSETS-

(A) IN GENERAL- The Director of the Office of Management and Budget shall liquidate all assets of the Board and the Federal reserve banks in an orderly manner so as to achieve as expeditious a liquidation as may be practical while maximizing the return to the Treasury.
(B) TRANSFER TO TREASURY- After satisfying all claims against the Board and any Federal reserve bank which are accepted by the Director of the Office of Management and Budget and redeeming the stock of such banks, the net proceeds of the liquidation under subparagraph (A) shall be transferred to the Secretary of the Treasury and deposited in the General Fund of the Treasury.

(3) ASSUMPTION OF LIABILITIES- All outstanding liabilities of the Board of Governors of the Federal Reserve System and the Federal reserve banks at the time such entities are abolished, including any liability for retirement and other benefits for former officers and employees of the Board or any such bank in accordance with employee retirement and benefit programs of the Board and any such bank, shall become the liability of the Secretary of the Treasury and shall be paid from amounts deposited in the general fund pursuant to paragraph (2) which are hereby appropriated for such purpose until all such liabilities are satisfied.

(d) Report- At the end of the 18-month period beginning on the date of the enactment of this Act, the Secretary of the Treasury and the Director of the Office of Management and Budget shall submit a joint report to the Congress containing a detailed description of the actions taken to implement this Act and any actions or issues relating to such implementation that remain uncompleted or unresolved as of the date of the report.
http://rense.com/general83/paulab.htm

2 terrorist suspects arrested on German flight
BERLIN (AP) — German police boarded a plane at Cologne airport and arrested two terrorist suspects Friday just before the plane took off for Amsterdam.
A 23-year-old Somali man and a 24-year-old German man born in Somalia were arrested before the KLM flight left the airport, a spokeswoman for North Rhine-Westphalia state police said.
Police spokeswoman Katharina Breuer told The Associated Press that officers boarded the plane at 6:55 a.m.local time and arrested the men without incident. She said authorities do not think the men planned to hijack the flight.
Germany's top-selling Bild newspaper, citing police sources, said the men had been under observation for months and a suicide note was found in their apartment saying that they wanted to die for the "jihad" or "holy war."
Breuer would not disclose how authorities knew the men would be on board.

Elfrieke van Galen, a KLM spokeswoman, said police boarded the Fokker 50 jet when it was at its "point of departure" and grabbed the two suspects. Van Galen said the 46 remaining passengers aboard KLM Flight 1804 were then forced to leave the plane.
"Then a 'baggage parade' took place to see if the two passengers who were taken by the police had bags with them," she said.
Van Galen said the plane took off after an hour delay and landed at Schipol airport in the Netherlands without further incident.
The Dutch anti-terror chief warned earlier this month that the country remains one of the top targets for Islamic terrorist groups because of publicity surrounding a lawmaker's anti-Islam film.
The National Coordinator for Combating Terrorism said in a report the film "Fitna" by lawmaker Geert Wilders has made the Netherlands a "preferred target" for Islamic groups.
Fitna set Koranic texts against a background of violent images, which the agency said "is considered a major insult and provocation" by terrorist groups.
The country's terrorist threat has been rated as "substantial" since the film's launch in March.
Frank Wallenta, a spokesman for federal prosecutors in Germany, said the arrests in Cologne were not related to an announcement Thursday that two men linked to terrorist suspects may be on their way back to Germany.
On Thursday, prosecutors announced that Eric Breininger, 21, and Houssain Al Malla, 23 could be headed to Germany after leaving a terrorist training camp in the border region between Afghanistan and Pakistan. The men are linked to a foiled plot to attack American targets in Germany in 2007.
http://www.usatoday.com/news/world/2008-09-26-germany-terrorsuspects_N.htm?loc=interstitialskip


"Wall Street Should Be Looking for Bail, Not a Bailout"
LIUNA Opposes Any No-Strings Raid on Taxpayers; Calls for Congress to Seize the Opportunity to Build America So America Works Again
Last update: 3:42 p.m. EDT Sept. 25, 2008
WASHINGTON, Sep 25, 2008 (BUSINESS WIRE) -- As the Bush Administration and Congress craft a $700 billion Wall Street bailout, LIUNA -- the Laborers' International Union of North America -- is rejecting any no-strings raid on taxpayers and calling on Congress to seize the opportunity to build America.
"Wall Street has been allowed to run wild for eight years and they've acted like pigs at a trough. They should be looking for bail, not a bailout," said LIUNA General President Terence O'Sullivan. "The most important asset in America is not Wall Street -- it's Main Street and working people. Unfortunately all Americans are stuck in the same boat with those at fault and if they sink, they will drag us down with them. But this bailout cannot be another Bush Administration, no-strings raid on taxpayers and the Treasury."
Acknowledging the reality of an economic crisis requiring emergency action, LIUNA strongly opposes any bailout that does not protect working people or does not include restraints and controls on those who caused the crisis.
LIUNA believes any bailout must include help for the 3 million working people who are facing foreclosure, protections for worker pensions which have suffered large losses because of Wall Street irresponsibility and ensure that taxpayers receive any future profit from mortgages that are bought by the Treasury. In addition, the bailout cannot come without caps on executive pay for firms that take advantage of the plan or without new regulations to prevent this from happening again -- including more transparency, limits on leverage, increased capital requirements, stricter conflict of interest protections and prohibitions on the ability of certain industries to write mortgages, such as corporate homebuilders who helped cause the crisis by pushing risky loans.
"Showering Wall Street with $700 billion will not get our economy back on track. For this to have a positive impact, we need real economic stimulus that creates jobs," O'Sullivan said. "The Bush Administration may have just discovered the economic crisis last week, but it is not new to working Americans."
LIUNA is calling for an immediate $100 billion investment to stimulate our economy, create good jobs and build America -- our roads, bridges and mass transit systems that we all rely on but are crumbling due to years of neglect.
Investing in America has an immediate impact on our economy. The U.S. Department of Transportation estimates that 47,500 good jobs can be created for every $1 billion investment building America. According to the American Association of State Highway and Transportation Officials, there are more than 3,000 crucial projects ready to begin within 30-90 days if funded. These projects, valued at $18 billion would create 855,000 jobs.
A $100 billion investment in needed projects would create nearly 5 million good new jobs at a time when 9.4 million workers are unemployed.
"The Wall Street bailout must not be used as an excuse to say we can't take care of the basics of America and help working people who have been hurt the most in this economic crisis," said O'Sullivan. "Instead of just helping Wall Street, this is an opportunity for our nation to resolve to enact real economic stimulus that will build America so America works again."
The members of LIUNA -- the Laborers' International Union of North America -- are on the forefront of the construction industry.
SOURCE: Laborers' International Union of North America (LIUNA)
http://www.marketwatch.com/news/story/wall-street-should-looking-bail/story.aspx?guid=%7B4A7AC707-C99B-4FA6-B2F5-F0D2FCFB9322%7D&dist=hppr

MOSCOW (AP) — Russia's navy dispatched a warship to Somalia's coast, officials said Friday, a day after pirates there carried out their boldest attack yet — the capture of a Ukrainian vessel manned with Russian and Ukranian crew and loaded with 33 tanks and ammunition bound for Kenya.

Russian navy spokesman Capt. Igor Dygalo said in a statement that the frigate Neustrashimy left the Russia's Baltic port of Baltiisk on Wednesday. The statement did not specifically mention the seizure of the Ukrainian ship, which happened Thursday.

Dygalo did not answer calls that The Associated Press made to his cell phone later Friday.

Ukrainian Defense Minister Yury Yekhanurov, meanwhile, said that the ship, the Faina, was carrying 33 Russian T-72 tanks and a substantial quantity of ammunition and spare parts. Yekhanurov said the tanks were sold in accordance with international law, according to Larisa Mudrak, a spokeswoman for Ukrainian President Viktor Yushchenko.

U.S. ships in the area were aware of the seizure of the Ukranian ship and were "monitoring the situation," said Lt. Nate Christensen a spokesman for the U.S. Navy's 5th Fleet based in Bahrain.

"Obviously, we are deeply concerned," Christensen told The Associated Press. "We have ships in the area and we are monitoring the situation closely. Piracy is an international problem and it requires an international solution."

He was unable to provide more specifics because of the security issues involved, he said.

A Kenyan government spokesman, Alfred Mutua, confirmed that the East African nation's military had ordered the tanks and spare parts and said Kenya had made such a huge order of tanks as part of a two-year rearmament program for the military.

"We will do whatever it takes to secure the ship," Mutua told The Associated Press when asked whether Kenya will send a naval vessel to intercept the hijacked vessel.

He added that the cargo was insured, but "the responsibility of the insured cargo rests with the shipper."

A person who answered the phone at Ukrainian state-controlled arms dealer Ukrspetsexport, which brokered the sale, refused to comment about the Ukrainian vessel, and said all requests for information must be submitted in writing.

Ukrainian officials and an anti-piracy watchdog said 21 crew members were aboard the seized ship, and Ukraine's Foreign Ministry said the crew included three Russians.

Mikhail Voitenko, editor-in-chief of the journal "Naval Bulletin-Sovfrakht" said in televised comments that the ship sailed under a Belize flag and the operator is a Ukrainian company based in the Black Sea port of Odessa. Ukrainian news agencies identified the ship operator as a company called Tomex Team.

U.S. Defense Department spokesman Bryan Whitman said the U.S. was concerned about the attack and noted that the U.S. military has assisted foreign countries in previous instances of piracy.

"I think we're looking at the full range of options here," said Whitman. "A ship carrying cargo of that nature being hijacked off the coast of Somalia is something that should concern us, and it does concern us."

Roger Middleton, a researcher at London's Chatham House, said it was unlikely the pirates knew there were tanks aboard the Faina, and he said unloading the cargo would be very difficult.

"Most of their attacks are based on opportunity. So if they see something that looks attackable and looks captureable, they'll attack it," he told AP.

"I'm not sure how helpful such a high-profile cargo will be for them. It makes them much more vulnerable," he said. "I'd imagine they're quite worried."

Dygalo said Russia's navy would periodically send ships to piracy prone areas to protect Russian citizens and Russian ships. He said the frigate set sail on Wednesday "with the aim of providing for a naval presence in a number of oceans and sea regions."

According to the British-based Jane's Information Group, the Neustrashimy is armed with surface-to-air missiles, 100 mm guns and anti-submarine torpedoes.

Yushchenko, meanwhile, ordered unspecified measures to secure the release of the crew.

The hijacking brings the number of attacks off Somalia to 61 this year, and pirates are now holding 14 ships and more than 300 crew members, said Noel Choong, who heads the International Maritime Bureau's piracy reporting center based in Malaysia.

Middleton said it was unclear how the pirates might react if confronted by military action, noting that they have fled from authorities in the past. On the other hand, he said, they are usually well-armed and organized and are based in an unstable country — Somalia.

"It could potentially get pretty messy," he said