General Motors’ shares have taken a hit this week with the catalyst for the latest downturn being news out of China. Continued weakness in China (including weakening car sales) has led the country to devalue its currency in an attempt to bolster its economy at the expense of its trading partners. This latest news confirms my views that GM’s China gamble puts the company and its shareholders at increased risk. The horrible performance of GM’s stock over the past few months also brings into question the rationale for the much-hyped share buyback that was instigated by ex-Obama Auto Task Force member, Harry Wilson, in photo.
Observers lately have taken to calling Puerto Rico “America’s Greece.” That might qualify as an insult – to Greece. And the American public may have to cover the debts. On Monday, the island government announced that its Public Finance Corporation was unable to make its full scheduled loan payments over the weekend. The $628,000 in disbursements was a mere blip on the $58 million due, itself a blip on composite debt of over $70 billion, all of it rated at or near “junk” levels. Yet suddenly the specter of collapse has become real. Moody's Vice President Emily Raimes, terming the partial payment a “default,” stated: “This event is consistent with our belief that Puerto Rico does not have the resources to make all of its forthcoming debt payments. This is a first in what we believe will be broad default on commonwealth debt.”
When it comes to coercion, government employee unions are masters of the game. But now they must contend with masters of the courtroom. On June 30, the U.S. Supreme Court agreed to hearFriedrichs v. California Teachers Association (CTA), a case previously dismissed by district and appeals courts. Several school teachers across California, led by an Orange County teacher, Rebecca Friedrichs (in photo), assert that the CTA has no authority to levy political fees on non-members without prior consent. In light of its 2012 Knox decision, and the political character of many “non-political” bargaining issues, the Court may overturn its 1977 Abood ruling authorizing the public-sector union shop. The CTA and allies counter, less than convincingly, that the plaintiffs are “free riders” mooching off dues-paying members.
General Motors recently announced that it will spend $5 billion on a joint venture with Chinese state-owned SAIC Motor to develop vehicles for emerging markets. The announcement came around the same time that GM reported results for 2015 second quarter earnings, which showed cash and cash equivalents decreasing $2.2 billion in the first six months of the year. Marketable securities also declined by $2 billion during that time frame.
It appears – two years after Boeing had fire incidents from installed lithium ion batteries that shut down deliveries of its vaunted Dreamliner 787 – that its “solution” to “vent” heat and flames outside the aircrafts has prevented any catastrophes, so far.
But it hasn’t alleviated concerns about the batteries’ physics and makeup. Last week Boeing issued a warning to its airline customers to not carry bulk shipments of lithium-ions because if they catch fire or overheat, they’re unstoppable. A spokesman told the Associated Press that the manufacturer has advised airlines not to transport the batteries “until safer methods of packaging and transport are established and implemented.” Likewise, the FAA simultaneously stated that its research has found that carriage of lithium ion batteries “presents a risk.”
New York State Senator John Sampson, a Democrat of Brooklyn, was convicted yesterday on three counts, including obstruction of justice. He was acquitted on six others, but the conviction should result in significant prison time. No date has yet been set for sentencing.
Between 1998 and 2008, Sampson allegedly embezzled approximately $440,000 from the foreclosure sales of four Brooklyn properties on which he was a court- appointed referee. The embezzlement charges were thrown out because the state of limitations expired. The charges on which he was convicted relate to the cover-up.
Alana Goodman of the Washington Free Beacontoday details how the Clintons pushed for a $10 million loan from the Overseas Private Investment Corporation (OPIC) to Clinton Foundation donor Claudio Osorio, who now sits in a federal penitentiary, serving a 12-year term for fraud.
The loan was rushed through and Osorio was never required to provide an audited financial statement. The loan was supposed to be for building houses in earthquake-ravaged Haiti, but Osorio instead used the money to fund a lavish lifestyle and to buy off politicians.
“I want to make a difference” is a common statement of purpose for coming to work in the nation’s capital. Al Sharpton, no stranger to Washington during the Obama years, wants to make a difference. But given his track record, it will be the wrong kind. Last Wednesday and Thursday, July 8-9, Sharpton, under the banner of his New York City-based nonprofit National Action Network, sponsored a “Legislative and Policy Conference” on Capitol Hill. The well-attended event amplified his campaign to expand race-based affirmative action to uncharted areas of voting, sentencing, welfare reform and other policy areas. A parade of guest speakers urged the audience to pressure Congress to act. Like all of Reverend Al’s gambits, the campaign flies under the flag of “justice.” But given the planned core activity – lobbying – he may be skirting the law.
In a follow-up to her recent story detailing how Cheryl Mills simultaneously served as State Department Chief of Staff and General Counsel of New York University, Alana Goodman of the Washington Free Beacontoday reports that Mills helped arrange to have Hillary Clinton be the speaker at the 2009 NYU commencement.
The information about Mills' role in the commencement speech was contained in emails released last week by the State Department. From the article: