Wednesday, February 21, 2007

Fed's says high potential for housing correction

Related

Bies Speech - News - CNBC.com

Housing `Hangover' Kills U.S. Jobs After Spending Wanes; More Cuts Loom

American Mortgages - Bleak Houses

An illustrated guide to the coming real estate collapse

Are the good times over for property prices?
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Fed's Bies says high potential for housing correction

Tue Feb 20, 2007 11:11AM EST

DURHAM, N.C., Feb 20 (Reuters) - Federal Reserve Board Governor Susan Bies said on Tuesday that there still was a high potential for a correction to occur in the housing market and said that made it hard for the Fed to assess conditions.

"There's a lot of vacant housing out there right now,' Bies said during an address at the Duke University Fuqua School of Business.

"The potential for inventory correction is still very high," she added.

While supply is hard to judge, Bies said that a downturn in demand for housing may be nearly over.

"We may be near the floor in terms of demand," Bies said.

NATO split in Afghanistan

Related
Canadian Senate Report: Afghanistan - (full text)
More:
Afghani Blog
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by Vanessa Mock

20-02-2007

Cracks are emerging within NATO in Afghanistan, after Canada last week criticised some allies for not pulling their weight. A bruising report by the Canadian Senate said all the fighting was being left to just a handful of countries while others focussed exclusively on reconstruction. The report also urgently calls for more troops in the south of the country, a demand that in the past days has been repeated by President Bush. But so far that call has not been heeded, despite predictions that the Taliban is preparing for a major spring offensive against NATO troops.

These are anxious days for NATO troops. Reports are streaming out of Afghanistan that the Taliban is growing fast and is preparing a violent assault on foreign troops in the Spring.

Some 37,000 NATO troops are currently posted in the country, but many are engaged in reconstruction work in the North, far removed from the heavy fighting in the South.

Winter lull
Military operations have so far been largely down to the British, Canadian, Dutch and US troops. And although the situation has been relatively calm during the past few months, the fear is that it could get out of hand once Taliban fighters emerge after the winter lull. Jorrit Kamminga is head of policy research at the Senlis Council, a think-tank on Afghanistan. He predicts fierce spring attacks:

"We think this year it will be worse than ever. That's based on our field research, we've been in the field for the past four weeks. I've spoken to many Afghans and for them the main reasons to support and also join the Taliban are very simple: it's lack of income opportunities, lack of jobs, poverty and we've still seen no improvement in the South."

"More and more people are seeing Taliban are a legitimate employer and not so much as a religious organisation that they shouldn't join."

Resurgence
So just how can NATO quell the resurgence of the Taliban? That's the question that's been dividing NATO partners ever since the start of the Afghan mission. But it's now driving an ever bigger wedge within the Alliance with some partners saying that rebuilding the country cannot happen without first wiping out the Taliban militarily.

But time is running out, says Joseph Day, a Canadian Senator:

"The longer the military operation goes on, the more difficult it's going to be to get involved in what we thought we would be doing quickly, which is reconstruction. The longer that goes on, the more likely it is that we're going to be looked at as invaders as opposed to helpers. We will be the problem, as opposed to the solution."

But other NATO partners, such as Germany, say the whole approach of the mission has been wrong from the start. Hans Reidel is a German parliamentarian and a member from the NATO Parliamentary Assembly. He defends his country's insistence of allowing its troops to do only reconstruction work in the North: "If we'd had the same approach in the South as in the North there would now be fewer problems with the population because they would see that apart from just military action things are also being done for the population.""To put it crudely: I cannot tell someone 'You are my friend but first I'll throw a bomb on your head.. Or first I'll destroy your main source of income without giving you a replacement."Senator Joseph Day German resistance
Most of the German Bundestag and over a dozen other NATO allies are resisting calls to allow their troops to fight, despite the latest call to do just that by US president George W Bush. His demand came just after the Canadian Senate published a damning report that questioned Canada's commitment in Afghanistan.

Why have 2,500 troops and billions invested when others are not pulling their weight? Senator Joseph Day is one of the authors of the report:
"We were disappointed. I think all NATO partners recognised that there was a greater resistance in the South, in the area where the Dutch are and where Canada and the English and the Americans are. And we called for extra help, it wasn't forthcoming."

"We called for more equipment and it wasn't forthcoming. If we see this as just continuing war and no reconstruction. I doubt very much that Canada would be willing to participate in that kind of activity."
Threats
Canada is threatening to pull out of Afghanistan when its commitment ends in 2009. The Dutch meanwhile have also signalled they would not stay beyond Summer 2008. And no one is standing in line to replace those troops. That's a bleak, even disastrous outlook for NATO, whose entire reputation rests on the success of its Afghan mission.

For now though, there are more urgent matters: the organisation must drum up support for the immediate Taliban threat in the coming months. But the most likely scenario is that it will just have to do with the troops that are there now - which could mean a golden chance for insurgents to get the upper hand." Meanwhile, the lack of military support from NATO partners will fuel the frustration and could create ever bigger cracks within the Alliance.

British to Start Iraq Pullout by April?

I see many are making a big fuss over this, a story I ignored yesterday and had already forgotten about. Recall the many times Blair said he would pull troops out? Give me one reason why I should believe the lying sack of ....

British to Start Iraq Pullout by April

London Mayor Signs Oil Deal With Chavez

Wednesday February 21, 2007 1:01 AM

By JENNIFER QUINN
Associated Press Writer

LONDON (AP) - London's socialist mayor signed an agreement Tuesday with Venezuela's state-owned oil company to provide discounted oil for the city's iconic red buses, praising the idea as the brainstorm of the country's leftist leader, Hugo Chavez.

Ken Livingstone - a committed socialist known locally as ``Red Ken'' - met with Chavez last year at City Hall to discuss the deal to provide cheap oil to London in exchange for advice on urban planning in Caracas, the Venezuelan capital.

Venezuela has signed similar agreements with cities in several other countries, including the United States. Critics call it ``oil diplomacy'' - and say it is designed to embarrass President Bush, whom Chavez has repeatedly mocked.

``This arose out of the suggestion of President Hugo Chavez, and builds on the work he is doing around the world to tackle the problem of poverty,'' Livingstone said.

The savings - which would cut fuel costs by 20 percent for the city and could amount to about $32 million - are to be directed toward cheaper bus travel for up to 250,000 Londoners living on income support. Those who qualify will get a half-price discount on bus fares.

Under the agreement, city officials in Caracas will receive recommendations from British experts for ``the urban reorganization'' of the capital, Venezuelan Foreign Minister Nicholas Maduro said in an interview broadcast on state-run television.

Conservatives on the London city council said in a statement that London shouldn't be doing business with ``third-rate South American dictators with an appalling human rights and democratic record.''

``Why does London, one of the richest capitals in the world, need to exploit a developing nation?'' asked Richard Barnes, deputy leader of the London Assembly Conservatives. ``This money would be better directed at the poor of Venezuela.''

The U.S. government and Chavez's opponents at home accuse him of undermining Venezuela's democratic institutions since he was first elected in 1998. Chavez, who was widely re-elected to a six-year term in December, says he is trying to remake an unjust system that sidelined the poor majority.

Livingstone, an advocate of green policies, said Venezuela and London were merely exchanging commodities.

Venezuela is the world's eighth-largest oil exporter.

London spends about $195 million a year on fuel for its fleet of 8,000 buses. The savings from the new oil agreement with Venezuela are equivalent to slightly less than 1 percent of the total cost of providing London's bus services, the mayor's office said.

Associated Press Writer Christopher Toothaker in Caracas, Venezuela, contributed to this report.

Maliki's reaction - A rape shows that Maliki has no desire for justice

Sectarian tensions are boiling over in the Iraq government over this rape.
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Related
Top Sunni Official Fired Over Rape Case
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Tuesday, February 20, 2007

Maliki's Reaction...

As expected, Al Maliki is claiming the rape allegations are all lies. Apparently, his people simply asked the officers if they raped Sabrine Al Janabi and they said no. I'm so glad that's been cleared up.

"Meanwhile, Prime Minister Nouri al-Makiki moved quickly to try to defuse a scandal after a Sunni woman said she was raped by three officers of the Shiite-dominated police.

"After the allegations have been proven to be false, the prime minister has ordered that the officers accused be rewarded," it said without elaborating."

I hate the media and I hate the Iraqi government for turning this atrocity into another Sunni-Shia debacle- like it matters whether Sabrine is Sunni or Shia or Arab or Kurd (the Al Janabi tribe is composed of both Sunnis and Shia). Maliki did not only turn the woman into a liar, he is rewarding the officers she accused. It's outrageous and maddening.

No Iraqi woman under the circumstances- under any circumstances- would publicly, falsely claim she was raped. There are just too many risks. There is the risk of being shunned socially. There is the risk of beginning an endless chain of retaliations and revenge killings between tribes. There is the shame of coming out publicly and talking about a subject so taboo, she and her husband are not only risking their reputations by telling this story, they are risking their lives.

No one would lie about something like this simply to undermine the Baghdad security operation. That can be done simply by calculating the dozens of dead this last week. Or by writing about the mass detentions of innocents, or how people are once again burying their valuables so that Iraqi and American troops don't steal them.

It was less than 14 hours between Sabrine's claims and Maliki's rewarding the people she accused. In 14 hours, Maliki not only established their innocence, but turned them into his own personal heroes. I wonder if Maliki would entrust the safety his own wife and daughter to these men.

This is meant to discourage other prisoners, especially women, from coming forward and making claims against Iraqi and American forces. Maliki is the stupidest man alive (well, after Bush of course…) if he believes his arrogance and callous handling of the situation will work to dismiss it from the minds of Iraqis. By doing what he is doing, he's making it more clear than ever that under his rule, under his government, vigilante justice is the only way to go. Why leave it to the security forces and police? Simply hire a militia or gang to get revenge. If he doesn't get some justice for her, her tribe will be forced to... And the Janabat (the Al Janabis) are a force to be reckoned with.
Maliki could at least pretend the rape of a young Iraqi woman is still an outrage in todays Iraq...

2008 Memo: Don't Mess With Israel - John Edwards' biggest 'gaff'

21 Feb 07 09:56

Did John Edwards risk the implosion of his 2008 presidential campaign by stating that Israel is the biggest threat to world peace?
His staff just sent me an email rejecting the charge, a sure sign they are very worried it could spread.

John Edwards
John Edwards may have made a damaging gaffe

One of the most striking differences between the UK and US is the staunch backing here for Israel among Democrats and Republicans alike. Pro-Israel groups are highly influential. Many of the biggest US campaign contributors are Jewish-Americans in Manhattan and Hollywood. Unequivocal support for Israel is a virtual sine qua non for being elected nationally.

Would Edwards be that foolish? What did he say? It's not yet clear and even in this YouTube age, there might be no video clip because the offending words were allegedly uttered at a private event. If things were as they have been portrayed, then he's in deep doo doo - even if it wasn't exactly a Mel Gibson moment.

In classic 21st Century fashion, the claim spread like wildfire via the Internet. First, it was buried in indirect speech and in the 5th paragraph of a Variety column.

Peter Bart, the Variety columnist, referred to a fundraiser for Edwards held by Adam Venit, a partner at the agency Endeavor along with Ari Emanuel, a Barack Obama supporter whose brother Congressman Rahm Emanuel is a prominent Hillary Clinton ally (for now at least).

Hollywood, you see, is divided over who to support in 2008 (this was the subject of the column). A few are even considering voting for - gasp - a Republican - most notably Rudy Giuliani, who is set to be endorsed by Brad Grey, of Sopranos fame.

But I digress. The key Variety paragraph read: "The aggressively photogenic John Edwards was cruising along, detailing his litany of liberal causes last week until, during question time, he invoked the "I" word - Israel. Perhaps the greatest short-term threat to world peace, Edwards remarked, was the possibility that Israel would bomb Iran's nuclear facilities. As a chill descended on the gathering, the Edwards event was brought to a polite close."

This was picked up by National Review Online and cited as a "little gem"http://hillaryspot.nationalreview.com/) . Next, boom - the megasite Drudge Report saw it and linked with a headline: "Edwards: Israel greatest short-term threat to world peace." (

The Edwards campaign email, sent out within an hour or so of the item appearing on Drudge, stated that Variety "inaccurately quotes Senator John Edwards". Of course, it didn't quote him - it reported his speech. And accusing someone of misquoting is dangerous when you aren't prepared to produce the real quote yourself.

Jonathan Prince, Edwards's press secretary, said in the email: "The January 19th Variety article is erroneous. Senator Edwards did not say nor does he believe that the greatest short-term threat to world peace is the possibility that Israel would bomb Iran's nuclear facilities. Senator Edwards said, as he has in the past, that Iran acquiring a nuclear weapon is one of the greatest short-term threats to world peace."

This may well not lay the matter to rest because it did not include Edwards's words, which his staff presumably taped.

I'm currently reading Paul Taylor's superb "See How They Run", about the 1988 US election campaign. In it, he reminds the reader of the old adage that you don't issue a denial of a rumour or an erroneous story because that gives the press the hook to write about it.

That that no longer holds true - partly because of the internet but also because the 1992 Clinton campaign "war room" and New Labour's subsequent "rapid rebuttal unit" in the 1997 election showed that striking back swiftly and fiercely pays dividends.

But to kill a rumour rather than give it more legs, the rebuttal needs to be comprehensive and persuasive. Has Edwards achieved that? Perhaps not.

Tags: , , , ,

Posted by Toby Harnden in Washington DC at 21 Feb 07 09:56

Toby Harnden has been The Daily Telegraph's United States Editor since October 2006. He lives in Washington DC with his wife Cheryl and their dog Finn, a native of Belfast. Toby was previously Chief Foreign Correspondent for The Sunday Telegraph. He first joined The Daily Telegraph in 1994 and has been its Ireland Correspondent, Washington Bureau Chief and Middle East Correspondent. He is the author of Bandit Country: The IRA & South Armagh (1999). An archive of his work is at www.tobyharnden.com, and he can be contacted at toby.harnden@telegraph.co.uk.

The west may yet come to regret bullying of Russia

Putin has no interest in a new cold war and is struggling to modernise his economy. Yet he is rebuffed and insulted

Simon Jenkins in Moscow
Wednesday February 21, 2007
The Guardian


Countries too have feelings. So I am told by a Russian explaining the recent collapse in relations between Vladimir Putin and his one-time western admirers. "We have done well in the past 15 years, yet we get nothing but rebuffs and insults. Russia's rulers have their pride, you know."

The truth is that Putin, like George Bush and Tony Blair, has an urgent date with history. He can plead two terms as president in which he has stabilised, if not deepened, Russian democracy, forced the pace of economic modernisation, suppressed Chechen separatism and yet been remarkably popular. But leaders who dismiss domestic critics crave international opinion, and are unaccustomed to brickbats. Hence Putin's outburst at the Munich security conference this month, when he announced he would "avoid extra politesse" and speak his mind.

Putin's apologists ask that he be viewed as victim of an epic miscalculation by the west. Here is a hard man avidly courted at first by Bush, Blair and other western leaders. After 9/11 he tolerated US intervention along his southern border with bases north of Afghanistan. Yet when he had similar trouble in Chechnya, he was roundly abused. When he induced Milosevic to leave Kosovo (which he and not "the bombing" did), he got no thanks.

When Putin sought to join Nato in the 1990s he was rebuffed. Then Nato broke its post-cold-war promise and advanced its frontier through the Baltics and Poland to the Black Sea. It is now planning missile defences in Poland and the Czech Republic and is flirting with Ukraine and Georgia. Against whom is this directed, asks Putin.

The west grovels before Opec, but when Putin proposes a gas Opec it cries foul. America seizes Iraq's oil, but when Putin nationalises Russia's oil that, too, is a foul. Meanwhile, every crook, every murdered Russian, every army scandal is blazoned across the western press. True, Russia is still a klepto-oligarchy that steps back as often as forward, but what of America's pet Asian democracies, Afghanistan and Iraq?

In his Munich speech Putin asked why America constantly goes on about its "unipolar world". Does Washington really seek a second cold war? Russia is withdrawing from Georgia and Moldova. Why is Nato advancing bases in Bulgaria and Romania? The west is handling Syria, Iraq, Afghanistan and Iran with the arrogance and ineptitude of 19th-century imperialists. Is it surprising Russia is seeking allies where it can, in China, India, Iran and the Gulf?

At an Anglo-Russian conference in Moscow last weekend I was bemused by the talk of a return to "east-west" confrontation. Diplomats have a habit of listing complaints like marriage counsellors inviting couples to catalogue what most irritates them about each other. The list seems endless, but it surely points to a proper talk rather than a divorce. Don't they really need each other after all?

Having visited Russia three times since the demise of the Soviet Union, I remain impressed by its progress. Debate and comment are open. Russia is not squandering its energy wealth but setting $100bn aside in an infrastructure fund. The links between Russia and western business are worth $30bn in inward investment. Cultural and educational contacts are strengthening. Moscow and St Petersburg are booming world cities, their skylines thick with cranes.

The west views pluralist democracy as so superior that any state coming to it fresh must surely welcome it with open arms. When there is backsliding, as in former Yugoslavia, Ukraine, Russia and parts of Africa, let alone the Arab world, the west behaves like a peevish car salesman whose client has not obeyed the repair manual. If the west can do fair elections, market capitalism, press freedom and regional secession - after a mere two centuries of trial and error - why can newly free states not do them overnight?

The tough response to Putin is easy. It is the one he has from Washington and Nato. We won the cold war. You lost. Shut up. If, as Russia's top general said last week, you want to withdraw from the intermediate-range nuclear forces treaty, then withdraw. If you think gas and oil enables you to play the superpower again, see what happens. Bush and Blair may be screwing up "Islamistan", but their successors will be more canny. Our defence budget is bigger than yours and we have you surrounded.

All this makes for good realpolitik. But what Putin actually said in Munich reflected not belligerence but puzzlement at the aggressive course of western diplomacy. In the old days, he said, "there was an equilibrium and a fear of mutual destruction. In those days one party was afraid to make an extra step without consulting the others. This was certainly a fragile peace and a frightening one, but seen from today it was reliable enough. Today it seems that peace is not so reliable."

Putin is hardly seeking a return to the certainties of the cold war. He has no more interest than the west in stirring the hornet's nest of Islamic nationalism, stretching as it does deep into Russian territory. His desire for "ever closer union" with Europe and Nato after 1997 was sincere and was surely welcome.

While Putin appears to have been conducting his diplomacy over the past decade from weakness and the west from strength, the reverse has been nearer the truth. Britain and America have been led by essentially reactive politicians with no grasp of history. A terrorist outrage or a bombastic speech and they change policy on the hop. When Bush and Blair go, they will leave a world less secure and more divided in its leadership than when they arrived. Their dismissive treatment of Russia's recovery from cold war defeat has been the rhetoric of natural bullies.

Russia and the west have everything to gain from good relations. Putin has struggled to modernise his economy while holding together a traumatised and shrunken Russian federation. The west may feel he errs towards authoritarianism, but second-guessing Russian leaders is seldom a profitable exercise. This is a huge country, rich in natural and human resources. It is hard to think of somewhere the west would be better advised to "hug close". Instead, Putin will hand his successor an isolated and bruised nation. Under a less confident president, it could retreat into protectionism and alliances the west will hate. To have encouraged that retreat is truly stupid.

simon.jenkins@guardian.co.uk


Simon Jenkins is a journalist and author. He writes a column twice weekly for the Guardian and weekly for the Sunday Times, as well as broadcasting for the BBC. Previously he wrote columns for the Times and the London Evening Standard, both of which newspapers he edited. His career began on Country Life magazine and continued on the Times Educational Supplement, the Economist (political editor) and the Sunday Times (books editor). He served on the board of British Rail and London Transport in the 80s and was deputy chairman of English Heritage and a Millennium commissioner. He was Journalist of the Year in 1988 and Columnist of the Year in 1993. His books include works on London architecture, the press and politics and, more recently, England's Thousand Best Churches (1999) and Thousand Best Houses (2003).