August 12, 2011

Lucid Links (081211, Morning)

Filed under: Business Moves,Economy,Taxes & Government — Tom @ 10:38 am

Zero Hedge yesterday had two downward takes on the direction of second-quarter GDP revisions. One was from Goldman Sachs, which thinks the current reading of an annualized 1.3% will come down to 0.9% because of disappointing exports in both May and June. The other came from SMRA (Stone McCarthy Research Associates), which thinks it will be +0.5%, where the lower number seems more of a hunch than something firmly quantitative.

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Huffington’s Heist Update: The stock of AOL, which paid $315 million for the hard-left Huffington Post in February (“paid in cash funded from cash on hand”), sunk to 48% below its early February price on Wednesday before recovering a bit yesterday.

Even after yesterday’s recovery, AOL has lost over $1 billion in market value since the purchase. As I said in my February column, “They sure know how to pick ‘em.”

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I’m not buying this — How in this economy can Microsoft possibly be having problems finding qualified people among the U.S. unemployed? The company claims that the IT unemployment rate is only 4%, but I suspect that there are thousands of IT folks around the country who are no longer considered IT people because they had to move on to lower-paying gigs after being let go by their IT employers, or because they’re still really unemployed but not considered among the “officially” unemployed.

Or it may be that MS is like a lot of other employers who won’t consider hiring anyone who is currently unemployed. I get the logic, but if Microsoft is saying that it’s too much work to find qualified and eager but currently unemployed citizens vs. hiring thousands of non-citizens through H-1B visas — well guys, too bad, so sad.

Update: Further, as shown here several months ago, the presumption implied that the “millions of new tech workers in just the past few years” coming out of India and China are appropriately qualified is, at least in the case of India, very suspect.

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Over at Legal Insurrection, a hope that the public-sector unions and leftists will go all-in for a recall attempt on Wisconsin Governor Scott Walker:

Walker will win the recall, but more important, it will set a nice stage for the 2012 presidential election with the relative good fortune of a business friendly conservative Republican administration in Wisconsin contrasted with the dismal performance of Obama and national Democrats.

Wisconsin-based Steve at No Runny Eggs has posted his analysis of Tuesday’s recall results and this coming Tuesday’s attempt to unseat two Badger State fleebagging Dems. Key point: It was “far closer to being only a 1-seat gain for them (Dems) than a 3-seat gain.”

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The House-Senate 12-person supercommittee’s membership would appear to virtually guarantee a deadock.

GOP Senate members Kyl, Portman, and Toomey *should* hold firm on taxes (though a talk radio sub for Savage yesterday pointed out that Kyl is retiring, which leads to fears that he will go the “statesman”/sellout route, and I have well-known and justified reservations about Portman’s firmness). The House GOP’s contingent (Hensnarling of Texas, Camp of Michigan, and Upton of Michigan) is okay but not exceptional.

The Dems’ choices are the expected extremists. On the Senate side, there’s John F-in’ Kerry, who doesn’t even think the Constitution-adhering Tea Party point of view on fiscal matters should be covered by the media, let alone considered in deliberations. Patty Murray of Washington is actually worse than Kerry (Update: Michelle Malkin devotes her column today to Pathetic Patty). One question on the third Senate member Max Baucus is whether he’ll show up sober. As to whether he’s a “moderate,” well, given his willingness to have his name on one version of the nightmarish Obamacare, I don’t think so.

Two of Nancy Pelosi’s three House choices (African-American James Clyburn and Hispanic Xavier Becerra) and are specifically designed to enable Dems to bring out the race and ethnic cards when things go south. Chris Van Hollen is also way left of anything resembling mainstream. Their Club for Growth scores (2010, lifetime): Clyburn: 0%, 5%; Becerra: 5%, 7%; Van Hollen: 0%, 6%. Steven Hayward at Powerline predicted that Pelosi would pick “radical nutcases or bare-knuckled partisans.” He was right.

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3 Comments

  1. Just like every other “bi-partisan” commission: bulldog Democrats and lapdog Republicans.

    Comment by Jason — August 12, 2011 @ 11:02 am

  2. A deadlock is the best we can hope for. Yes, the military budget will take a hit, BUT most likely Obama and his nut job allies in the Senate won’t be in office in January 2013 to ensure those cuts actually happen. Let the GOP members stall and haggle to run the clock to December 9th (I believe).

    Comment by dscott — August 12, 2011 @ 2:18 pm

  3. [...] noted yesterday (first item at link), we’ll be very lucky if first-half growth is as “high” as [...]

    Pingback by BizzyBlog — August 13, 2011 @ 8:18 pm

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