Background here.
I left several updates in yesterday's thread, but I wanted to do a follow-up piece to let everyone know where things stand.
Toward the end of the day, Dee from Sears Executive Office rang me and offered to send someone 'round to replace the broken panel, free of charge, and give me a 90-day warranty on the new part.
It is an offer Iain and I ultimately declined, because I frankly did not feel good about accepting service in what Sears certainly expected to be an exchange for my letting the issue drop, because I am not letting the issue drop.
I'm not seeking anything further from them in terms of reparations to me, personally. My stove is now my issue. But I have some grave concerns about how this issue is being handled by Sears with its other customers.
If my stove had still been under warranty, it would have been fixed for free, and I never would have started down this road. But I did—and now I know not only that this is a very costly repair (especially relative to the price of the stove), but also that the repair is being made with the same faulty part that cannot withstand typical use.
Sears isn't fixing these stoves; they're patching them. People who get it fixed under warranty may end up with the same broken bracket again a year later, and face a pricy repair then. People who pay for the pricy repair once may end up with the same broken bracket again a year later, and face a pricy repair once more. Sears is kicking the can down the road, and expecting their customers to foot the bill for the problem.
It's a nice little racket, though, to replace a shitty piece with the same shitty piece, and sell $100 extended warranties on the back of a $300 repair—extended warranties that last one year, which seems to be the approximate lifetime of the bracket.
Sears/Kenmore clearly knows the piece is faulty. Dee told me that Sears plans to "address the problem" in the future, but when I explicitly asked if there was going to be a recall, and if I should advise my readers to not pay for a pricey repair on a stove that would be recalled, she said she could not confirm that there would be a recall, nor that future repairs would be made with a different, improved part.
So, on the one hand, they acknowledge having sold a bad product to lots and lots of people, and, on the other, they won't promise to do anything about it.
What they want to do is offer to fix patch the stove of the person with a platform and the willingness to use it to make some noise, and hope that the whole thing will go away.
Sears/Kenmore needs to do better by ALL its customers. Not just me. And they need to something more serious than what is essentially a patch on a known problem.
(I will note that there is also the possibility Sears/Kenmore is already actually repairing the stoves with better pieces, in which case that's just a different problem—charging people to do what they should be doing for free with a recall.)
As I said in my post yesterday, this is a low-end model Kenmore stove, bought primarily by people unlikely to be able to purchase "optional" extended warranties in the first place, unlikely to be able to afford $300 repairs, and unlikely to be able to buy a new stove when faced with a $300 repair (plus $100 extended warranty!) to avoid giving more money to a company that exploited them.
Six months after Louis J D'Ambrosio took over as CEO of Sears Holdings in February of this year, he was given a $2 million bonus, bringing his total compensation to $3.15 million. He is the 27th highest ranked CEO within the retail sector.
How many people have paid costly repair bills to replace a part Sears/Kenmore knows to be faulty, in order to give Mr. D'Ambrosio a $2 million bonus?
Do the right thing Sears/Kenmore. Recall this stove. And don't charge another person for a shady repair.
* * *
Note: Kenmore is reportedly deleting critical comments from its Facebook page, and @KenmoreConnect did not respond to tweets. Sears has been more receptive: Tweet at them @sears, @SearsHoldings, @SearsAppliances, and @SearsCares.
Sears/Kenmore Follow-Up
Wank Swap: S1 E4
Note: If you're a lot like me, you're probably wondering why today's episode doesn't refer to the very latest developments in global economic wankery. Unfortunately, Wank Swap has a rather long production cycle. Between calming the egos involved and finding technicians to work our very pricey photographic voice capture device, our lead time is months. (I'm making these after work on Fridays, when I'm extra punchy.)
I'm sure if Shakesville's board of directors picks up its option for another season of Wank Swap, the show will revisit certain European leaders' outrage over the sudden outbreak of democracy in Greece OF ALL PLACES. Or at least it will if French President Nicolas Sarkozy finds a way out of the Detroit airport.
---
Today's episode of Wank Swap is brought to you by Fiat, makers of fine luxury cars since last month when we hired J-Lo.
Arizona Governor Jan Brewer pitches a familiar proposal
to the island nation of Australia.
[Brewer stands in front of Uluru
Meanwhile:
Former Australian Prime Minister John Howard faces a
restless crowd at a California Barnes & Noble.
[The crowd chants "We want Opie!"]
Previously: Season Preview, S1 E1, S1 E2, S1 E3
Assange Loses Extradition Appeal
Well, this is some interesting news:
The WikiLeaks founder, Julian Assange, has lost his high court appeal against extradition to Sweden to face rape allegations.Assange's lawyers will take 14 days to determine whether they will seek the right to appeal to the supreme court.
Lord Justice Thomas and Mr Justice Ouseley on Wednesday handed down their judgment in the 40-year-old Australian's appeal against a European arrest warrant issued by Swedish prosecutors after rape and sexual assault accusations made by two Swedish women following his visit to Stockholm in August 2010.
Assange, who was wearing a navy blue suit, pale blue tie and a Remembrance Day poppy, remains on bail pending a decision on a further appeal. The judges ruled the issuing of the warrant and subsequent proceedings were "proportionate" and dismissed arguments that the warrant had been invalid and descriptions of the alleged offences unfair and inaccurate.
Assange gave no sign of emotion as the judges gave reasons for the decision.
...The judges rejected the appeal on all four grounds made by his legal team, opening up the possibility that Assange could be removed to Sweden by the end of the month.
Lord Justice Thomas said a date would be fixed in three weeks' time to hear any case by Assange that he should be allowed to take the case to the supreme court.
To appeal again, Assange must persuade the judges there is a wider issue of "public importance" at stake in the latest decision. If he is successful in persuading the high court of that, he is likely to remain on conditional bail until a hearing in front of the supreme court. This is unlikely to take place until next year.
If he is denied the right to appeal then British law enforcement officers will be responsible for arranging his removal to Sweden within 10 days.
Occupy Everywhere & Economic News Round-Up
ARLINGTON, VA - NOVEMBER 01: A statue of former President Ronald Reagan is seen after its unveiling ceremony at Ronald Reagan Washington National Airport November 1, 2011 in Arlington, Virginia. The nine foot tall bronze statue of Ronald Reagan weighs approximately 900 pounds and stands in front of a 38 foot curving stainless steel wall outside Terminal A. [Getty Images]If there were ever a time to install a nine-foot, 900-pound bronze statue of Ronald Reagan, it's definitely now. Perfect.
Meanwhile, in Oakland...
The Guardian—Thousands to gather in Oakland for mass day of action:
Thousands of protesters are expected to gather in Oakland on Wednesday for a general strike and mass day of action, organisers said on Monday.In other news, this is quite possibly the stupidest thing written about Occupy Wall Street so far.
The strike, organised by Occupy Oakland, aims to "shut down" the city, culminating with a march to the Port of Oakland to prevent the transit of cargo. Workers, university students and school pupils are all being urged to rally near the Occupy camp, with banks and large corporations expected to be targeted by marches.
"Oakland was the site of the last general strike in the US," said protester Tim Simons, at a press conference on Monday – drawing what would be an oft-repeated parallel between the Occupy action and Oakland's general strike of 1946.
"On Wednesday, we're going to make history once again. We're gonna make Oakland proud."
Next up, domestic news...
CNN Money—FBI investigating missing money at MF Global: "The FBI and federal prosecutors are investigating how some $600 million of MF Global customers' money has gone missing, CNN learned Tuesday from sources close to the probe. The investigation of MF Global is being conducted by the FBI and other federal regulators, including the U.S. Securities and Exchange Commission and the Commodities Futures Trading Commission."
Azi Paybarah at Capital New York—Bloomberg: 'Plain and Simple' Congress caused the mortgage crisis, not the banks: "Mayor Michael Bloomberg said this morning that if there is anyone to blame for the mortgage crisis that led the collapse of the financial industry, it's not the 'big banks,' but Congress. ... 'I hear your complaints,' Bloomberg said. 'Some of them are totally unfounded. It was not the banks that created the mortgage crisis. It was, plain and simple, Congress who forced everybody to go and give mortgages to people who were on the cusp.'"
New York Times—Deficit Panel Is Warned That It Must Not Fail and Is Urged to Compromise: "A co-chairman of President Obama's fiscal commission told members of a powerful Congressional panel on deficit reduction Tuesday that he feared they would fail, and he said the consequences of such failure could be calamitous. ... One co-chairman of the president's fiscal commission, Erskine B. Bowles, said he had great respect for each member of the committee, but added, 'I am worried you're going to fail—fail the country.' Former Senator Alan K. Simpson, the other co-chairman of the commission, denounced Grover G. Norquist, the conservative antitax advocate, and AARP, the lobby for older Americans, saying both were obstructing efforts to reduce the deficit."
Bloomberg—Lawmakers to Propose Transaction Tax for Financial Firms Modeled on Europe: "Two U.S. lawmakers will introduce measures to impose a transaction tax on financial firms that resembles a proposal released by the European Union. Senator Tom Harkin, an Iowa Democrat, and Representative Peter DeFazio, an Oregon Democrat, will introduce the bills tomorrow in their respective chambers. The bills will give the United States an increased role in the international debate over a transaction tax, which is likely to be discussed at the Group of 20 summit this week in Cannes, France."
And in international news...
The Guardian—Greek PM wins backing for referendum: European debt crisis live. Check that page throughout the day for updates.
New York Times—Austerity Faces Test as Greeks Question Their Ties to Euro: "The crisis of the euro zone has finally hit the potholed road of real politics, with the Greeks now openly questioning whether their commitment to Europe and its single currency still matters more to them than control over their own future and economic well-being. ... 'This is clearly the return of politics,' said Jean Pisani-Ferry, director of Bruegel, an economic research institution in Brussels. 'The management of all this by the Europeans has been fairly technocratic. But now we see the gamble of a politician, which creates uncertainty again, but in a different form. But it was bound to come at some point.'"
Seconding what Atrios says here in response: "It's time to do away with the term 'technocratic.' It creates a category of policies which are The Right Thing To Do, yet the rightness of the policies aren't tested against anything. They aren't tested against democracy (messy pesky voters!) or results (the economy sucks, technocrats, and this is your doing). But merely say the word and we've conjured up images of very sensible highly educated wonky people doing the right thing, even as they destroy the world."
More Reagan statues! Reagan statues for EVERYONE!
RIP Dorothy Rodham
Dorothy Rodham, the mother of Secretary of State Hillary Rodham Clinton, has died at age 92. The New York Times has a nice write-up here.
I will always remember how hard I blubbed during the 2008 campaign when Hillary Rodham Clinton said: "I want to thank all my friends and family—particularly my mother, who was born before women could vote, and is watching her daughter on this stage tonight."
Quote of the Day
"I thought I was not naïve. But even this court was shocked, not only by the seeming pervasive scope of misconduct but even more distressingly by the seeming casualness by which such conduct is employed."—Justice Gustin L. Reichbach of the New York State Supreme Court, to the New York City Police Department, before rendering his verdict against former detective Jason Arbeeny, a 14-year veteran of the Brooklyn South unit who was convicted of planting drugs on Yvelisse DeLeon and her boyfriend, Juan Figueroa. Arbeeny now faces up to four years in prison.
Being shocked at the scope and nonchalance of police misconduct is, in part, a function of Justice Reichbach's privilege, of course: There are many people of a different race and/or class than Reichbach who would not share his astonishment.
But it's also indicative of a genuine gap in our cultural assumptions about the level of rigorous oversight and accountability in police departments (particularly urban police departments) and the actual level of oversight and accountability.
That disparity between public perception and reality has always existed—my grandfather, a career NYPD detective used to say that the most realistic cop show ever put on television was Barney Miller—but I think the chasm has widened with the advent of procedural shows like the Law & Order and CSI franchises.
Obviously, there are tons of good cops; that's not the point. The point is that both the good and the bad cops are operating within a system that assumes decency equally of all of them.
Photo of the Day
If you don't watch Breaking Bad, you probably won't find this photo very funny. If you do watch Breaking Bad, you are probably laughing and thinking to yourself, "Oh, Walt! You are so, so terrible!"
[Via @allisonkilkenny.]
ACTION ITEM: Kenmore Products Are Garbage, and Sears Is Terrible to Its Customers and Employees
This, too, is why people Occupy Wall Street. Read on for the unbelievable experience I had with Sears/Kenmore, which treats both its customers and its employees like shit.
As I mentioned yesterday, our Kenmore stove broke over the weekend, one week after the warranty expired. (And please note that I did not name Kenmore yesterday, as I assumed in good faith they would make an effort to resolve the situation decently.) What happened was that a bracket which holds the panel in place broke. It's a flimsy little garbage bracket, and I can't even believe that it passed Kenmore's quality inspection, since pressing on that panel is how you make the stove work.
So we called Sears and scheduled a repair. Just to get someone out to evaluate how much the repair to our year-old Kenmore stove was going to cost was $75. We were not thrilled, but okay.
This morning, the repairperson, Craig, called to tell me he might be able to arrive earlier if that worked for me. On that call, I explained to him what the problem was, and he told me that the repair would likely cost around $300. This is more than half what we paid for the stove. Not only that, Craig explained that he was able to estimate the cost because he had replaced at least five of those panels in Kenmore stoves in the last week. He informed me that it was a known problem, and that Sears was supposed to be working on a fix for it.
I told him that paying more than half the price of the stove for a repair one week after the warranty ran out to fix a known problem by replacing it with the same part that was breaking all over the place was unacceptable, especially since it's just kicking the can down the road to another parts failure and another $300 repair. He agreed with me that it was awful, and he would try to get the company to comp the repair.
At this point, I want to note that Sears, were it a responsible company, would be recalling this Kenmore stove. If one area repairperson is reporting 5+ repairs on the same part a week, and Sears is charging exorbitant repair fees to each customer whose warranty has expired, that's some straight-up chicanery, right there.
I also want to note that the Sears salesperson from whom we purchased the Kenmore stove did not encourage us to purchase the extended warranty, but, in fact, told us how his wife has the same model and it's been awesome for years. I remember very explicitly that he told us it was easy to clean (despite not being a self-cleaning model) and telling us that it had not needed any repairs.
So, on one end, we had a Sears salesperson conveying how we didn't need an extended warranty on this model to get his commission, and, on the other end, we have Sears repairs telling us that now we need to pony up $300 for repairs.
Well, isn't that a great customer
Back to this morning: Craig calls me back and tells me that Sears will not comp us nary a penny on the repair of our Kenmore stove. He apologizes profusely. He tells me he understands why I don't want the repair, and offers to cancel the appointment for me. I thank him and assure him he has no reason to apologize.
Craig gives me a number at Sears repairs to call, and suggests that I call them myself. Maybe I'll have better luck, he says.
So I call the number, where I speak to Brenda C. I explain to Brenda C. the problem with my Kenmore stove, and she is barely listening and refers to it twice as my "refrigerator." I correct her: It's a stove.
I also tell her that I believe it's unreasonable to expect their customers to pay more than half the original price of their Kenmore stove to fix a known problem for which the company may or may not be developing a fix, but in any case does not yet have a fix, and thus would be replacing the faulty part with the same faulty part.
I ask her if she believes it's reasonable to ask me to pay $300 now, and $300 when the insufficient part inevitably breaks again. She tells me that once I pay this $300, then I can purchase an extended warranty for $100, which will cover it in future. But I can't purchase one now, because the stove is broken.
I laugh.
I point out to Brenda C. that it feels like we are being penalized because our Kenmore stove broke too late to be covered by the warranty that ran out last week, and too early to be repaired with a new part that won't break. I ask her if she thinks this is fair, for which she has no answer, except to reiterate I can buy an extended warranty once my Kenmore stove has been repaired for $300.
I then ask her why Sears has not issued a recall for a Kenmore stove whose most important part is known to be defective. She tells me that the repairperson who told me that information shouldn't have told me and she will be reporting it to his manager.
So now Sears is not only screwing over me, their customer, but screwing over their employee who had the unmitigated temerity to be honest with me and try to get his employer to do the right thing for me.
And not only is Brenda C. planning to file an internal employment complaint against Craig—she's TELLING ME ABOUT IT, which I cannot understand as ethical by any definition of ethics that I understand.
At this point, I request that the stove needs to be repaired for free, or it needs to be replaced—because it is in no way appropriate to tell a customer that they have to spend $400 (including the $100 extended warranty), which is nearly the original cost of the Kenmore stove, to fix what is a known problem to Sears. She offers to discount $100 on the repair.
Which, of course, is not a real "discount" of any sort, because she's just told me I need to spend $100 on an extended warranty if I don't want to spend another $300 on this repair in the future, every time that flimsy little bracket breaks.
I tell Brenda C. that I am unsatisfied with that resolution, I will not be taking her up on her offer to discount the repair, and I will not be buying another Kenmore product again. She says she hopes I change my mind.
I tell her that I hope I will change the minds of my international readership, which is predominantly female—and I trust she knows that women do the majority of the purchasing of household appliances—should any of them be contemplating purchasing Kenmore products in future.
* * *
Sears knows it's got a faulty product. Sears doesn't care. Sears is going to bilk its customers out of every last dime of repair costs for its shitty Kenmore stove that it can, instead of doing the right thing and recalling the affected stoves and replacing the weak bracket.
Why? Because it might cost them money.
And they'd rather make money off of their unwitting customers—people who are buying a low-end model Kenmore stove, and are thus probably the people most unable to afford to purchase optional extended warranties in the first place, the people most unable to afford $300 repairs, and the people most unable to buy a new stove so they don't line the pockets of a greedy corporation that's content to exploit the people who bought their faulty product in the first place.
This isn't just about me. This is about all the customers they're treating this way. I just happen to be the one with a platform.
And to boot: They're going to punish their employee who was honest with me about the problem.
This is why people are Occupying Wall Street.
Let's make some noise.
Contact Kenmore at their website, on their Facebook page, and tweet at them, and call Sears Roebuck to let them know that you are aware of their dodgy corporate practices toward customers and employees and will not be spending your money on any of their brands until they revise their corporate policies toward people who work for and buy from them.* * *
I have posted an update, such as it is, here.
Daily Dose of Cute
Passing the guest room on the way into my office one day recently, I glanced in and saw Dudley lying on the bed. He looked at me and wagged the tip of his long tail in a friendly hi. I went in to lay down next to him for just a moment, and I was suddenly overcome with appreciation for him. I stroked his ear in the way he loves, and I said to him, "I'm so grateful I know you. Thank you for being such an important part of my life." I told him why he has meant so much to me and that I love him. He looked back at me with his big brown eyes. I chuckled to myself, at my silliness. "I know you don't understand what I'm saying," I said, "but I hope you feel the sentiment, at least; I hope you know you have opened my heart." He reached out his paw and laid it on my chest, right over my heart.
I know it was just a coincidence. But it sure was a good one.
Number of the Day
$2 million: The amount of money fast food chain Chick-fil-A donated to anti-gay groups in 2009.
Earlier this year, Chick-fil-A became embroiled in a controversy surrounding its donations to anti-gay groups. Though Chick-fil-A president Dan Cathy denied having an "agenda against anyone," an Equality Matters investigation discovered that Chick-fil-A donated more than $1 million to anti-gay causes between 2003 and 2008. Now, new IRS 990 forms reveal that the company donated nearly two million dollars to anti-gay groups in 2009 alone, the most recent year for which public records are available.There are a handful of Chick-fil-A franchises opening in the area where I live, the first time the brand has been in this market. I've never been to a Chick-fil-A, and had no real desire to go, but I might have tried it once just for the sheer curiosity after singing along to Ben Folds' "Army" for 12 years. Grew a mustache and a mullet / Got a job at Chick-fil-A / Citing artistic differences / The band broke up in May... Heh.
Guess who won't be giving a dime to them now...?
If you'd like to let Chick-fil-A know that they won't be getting any(more) of your business, you can tweet at them, visit their Facebook page, or submit feedback at their website.[H/T to Deeky.]
Wank Swap: S1 E3
Brought to you by Sun Drop
Sun Drop: It's like Fanta, only without all that freaky eurodancing.
John McCain taps into contemporary anxieties, suggesting an
unfortunate means of enhancing economic growth.
[McCain stands in front of an English castle asking "Have you tried building a wall?"]
Meanwhile:
British Prime Minister David Cameron is sorely
disappointed by the state of American technology.
[Cameron stands in front of the US-Mexico border, complaining that he "was led to believe there were sharks...and laser beams."]
Later on Wank Swap:
French President Nicolas Sarkozy has important shit to do,
but he's stuck at the Detroit airport.
[Nicolas Sarkozy eyes a basket of chili cheese fries and asks,
"So American cheese is a "thing" now?]
Previously: Season Preview, S1 E1, S1 E2
This, Too, Is Why People Occupy Wall Street
CNN Money—Your phone company is selling your personal data:
Your phone company knows where you live, what websites you visit, what apps you download, what videos you like to watch, and even where you are. Now, some have begun selling that valuable information to the highest bidder.It's funny how conservatives have always justified their support of privatization by saying the government cannot be trusted to retain too much information on its citizens, because we'll end up never having any privacy and never being truly free. But now that corporations are doing the very thing conservatives were always ostensibly afraid the government would do, they're eerily silent on the matter.
In mid-October, Verizon Wireless changed its privacy policy to allow the company to record customers' location data and Web browsing history, combine it with other personal information like age and gender, aggregate it with millions of other customers' data, and sell it on an anonymized basis.
That kind of data could be very useful -- and lucrative -- to third-party companies. For instance, if a small business owner wanted to figure out the best place to open a new pet store, the owner could buy a marketing report from Verizon about a designated area. The report might reveal which city blocks get the most foot or car traffic from people whose Web browsing history reveals that they own pets.
Verizon is the first mobile provider to publicly confirm that it is actually selling information gleaned from its customers directly to businesses. But it's hardly alone in using data about its subscribers to make extra cash.
All four national carriers use aggregated customer information to help outside parties target ads to their subscribers. AT&T, Sprint and T-Mobile insist that subscriber data is never actually handed over to third-party vendors; nevertheless, they all make money on it.
...For its part, Verizon has largely been applauded by privacy groups for at least being transparent about what it's doing and pointing users to an opt-out site if they don't wish to participate. But privacy advocates are concerned about the direction wireless companies are headed.
It's almost like all that privacy and freedom stuff is just mendacious rhetoric designed to mask their unfettered avarice and love of profit at all costs. Huh.
Occupy Everywhere & Economic News Round-Up
Demonstrators wearing V-masks sit in front of a Commerzbank branch as they take part in a protest march as part of the 'Occupy Frankfurt' movement in Frankfurt am Main, on October 29, 2011 to protest against the financial system. Inspired by the US Occupy Wall Street movement and Spain's 'Indignants', the 'Occupy Frankfurt' protesters have erected in October around 50 tents in the city-centre park next to the ECB's Eurotower headquarters. [Getty Images]Here's some of what I've been reading this morning [trigger warning for sexual violence]...
Yesterday, scatx and I had the following exchange on Twitter about increasing reports of violent misogyny and sexual violence at various Occupy locations, which I'll just reprint here for those who aren't on Twitter:
Me: RT @CathElliott Woah: RT @SW9Red: So for the third time of asking...Will @OccupyLSX apologise for retweeting this misogynist shit. [The link goes to an image of Occupy Finsbury Square's "Carve a Feminist Pumpkin Competition" winner, which is a pumpkin roughly carved to look like it's got a dick in its mouth.]
scatx: @shakestweetz Also, this: [TW] RT @xeni: #occupyGlasgow assault reported to have been a gang rape of a pregnant woman. bit.ly/uLGrSG [The link leads to a blog post which details reports of the event.]
Me: @scatx Oh god. We need to start an Occupy Rape Culture.
scatx: @Shakestweetz Yes, true. It's fucking depressing. I've been meaning to blog about this since Josh Harkinson tweeted a couple weeks ago about a sexual assault at ows in NYC and progs on Twitter were like, "Be quiet or it will hurt the movement!"
Me: @scatx Without a trace of irony. Uh, no: Silencing sexual assault survivors hurts the movement.
Again, I will note my consternation that so many of these "radicals" continue to be held in thrall by the most conservative of kyriarchal prejudices and ancient tactics of oppression. Listen, if your revolution doesn't implicitly and explicitly include a rejection of misogyny and other intersectional marginalizations, then you're not staging a revolution: You're staging a change in management.
* * *
First up in news: The MF Global meltdown, the 7th largest bankruptcy in US history.
Bloomberg/Businessweek—MF Global, Beacon Power, Real Mex, Lehman, PPI, NEC: Bankruptcy: "MF Global Holdings Ltd., a New York- based holding company for commodities and derivatives brokers, filed for Chapter 11 protection yesterday in New York after the New York Federal Reserve suspended the company from doing new business as a primary dealer. Later in the day, the Securities Investor Protection Corp. initiated a liquidation proceeding against the brokerage subsidiary, MF Global Inc. A finance subsidiary named MF Global Finance USA Inc. is also in Chapter 11 alongside the parent."
Reuters Video—MF Global files for bankruptcy.
Reuters—Traders try to limit damage from MF Global collapse.
Henry Blodget at Business Insider—Wow, Jon Corzine—Way to Fly Your Company into a Mountain: "Well, this one's right up there with the most spectacular CEO disasters ever. Yesterday, 18 months after Jon Corzine took over the helm of MF Global with the goal of building it into a real investment bank, he flew the company into a mountain. Why? Because part of becoming a real investment bank, apparently, is betting the company. Jon Corzine bellied up to the global market tables, bet MF Global, and lost. Specifically, the former head of Goldman Sachs and governor of New Jersey authorized his traders to scarf up $6 billion in bonds issued by Spain, Italy, Portugal, Belgium, and Ireland. The bet, presumably, was that the powers-that-be in Europe would bail out these and other bondholders to the tune of 100 cents on the dollar, because in our global bailout spree, that's what powers-that-be do. Oops."
Atrios comments that the MF bankruptcy is "a reminder that the current International Great Casino is almost entirely about betting on just who will or will not be bailed out by governments and central banks. Betting on what central banks are going to do is always a part of this stuff, but in 'normal times' (remember them? me neither) that's about betting on whether they're going to raise or lower rates by 25 basis points. But now the bets are about just where the free money howitzer is going to be aimed."
And Yves Smith takes a look at the reports that customer accounts were pilfered at MF Global.
Next up: Domestic News!
CNN Money—Home prices heading for triple-dip: "The besieged housing market has even further to fall before home prices really hit rock bottom. According to Fiserv, a financial analytics company, home values are expected to fall another 3.6% by next June, pushing them to a new low of 35% below the peak reached in early 2006 and marking a triple dip in prices. Several factors will be working against the housing market in the upcoming months, including an increase in foreclosure activity and sustained high unemployment, explained David Stiff, Fiserv's chief economist. Should home values meet Fiserv's expectations, it would make it the third (and lowest) trough for home prices since the housing bubble burst."
The Hill—Larson: More needs to be done on housing: "Echoing a growing number of House Democrats, Rep. John Larson (D-Conn.) warned Tuesday that the Obama administration's new anti-foreclosure strategy alone won't solve the housing crisis. Larson, who heads the House Democratic Caucus, said the administration's new housing reforms are 'a good step' toward stabilizing the volatile housing market but more needs to be done to help struggling Americans keep their homes. 'Our caucus is pleased to see the president come up with his program,' Larson said during a press briefing in the Capitol, 'Our caucus would like to see more done, as well.'"
AnnArbor—Eric Cantor criticizes 'wealth redistribution' and Occupy protesters during University of Michigan speech: "Inside the University of Michigan League, U.S. Rep. Eric Cantor, R-Virginia, spoke of the opportunity of Americans to move up 'the economic ladder.' Outside, a group of about 70 students and Ann Arbor residents protested a perceived economic inequality that they say makes it too difficult to climb that ladder."
The Hill—Supercommittee panelists would take hit if they fail to get debt deal: "Three weeks out with no deal in sight, the risk of failure is mounting for members of the congressional supercommittee on deficit reduction. ... Washington's political establishment has looked to the panel's Nov. 23 deadline as a pivotal moment in the national debate over federal deficits. It is the culmination of the year's battles in Congress, which almost resulted in a government shutdown in April and a national default in August. To fall short of the $1.2 trillion minimum goal necessary to avoid automatic cuts would come as an overwhelming letdown that would likely roil the stock market as well as the political landscape."
CNN Money—20 biggest CEO pay raises.
Meanwhile, in Europe...
Reuters—UK factory sector contracts at fastest pace in 2 years: "The manufacturing sector contracted at its fastest pace in more than two years in October as new orders plummeted, adding to signs that the country is teetering on the brink of recession, a survey showed on Tuesday. ... The numbers provide grim reading for policymakers and politicians, coming just ahead of data expected to show the economy grew a lacklustre 0.4 percent last quarter having basically flatlined in the previous nine months."
New York Times—Markets Slide After Surprise Referendum Is Set by Greece: "European markets slid dramatically on Tuesday after Prime Minister George A. Papandreou stunned the continent's leaders with a surprise announcement late Monday that his government would hold a referendum on a new aid package for Greece. The proposed ballot measure would put Greek austerity measures—and potentially membership in the euro zone—to a popular vote for the first time, risking Mr. Papandreou's political future and threatening even greater turmoil both among the countries that share the single currency and further afield. His announcement sent tremors through Europe's see-sawing markets on Tuesday, with bank stocks taking a particular hammering because of their exposure to Greek debt."
And globally...
The Guardian—Jobs crisis threatens global wave of social unrest, warns ILO: "The International Labour Organisation has warned that a jobs crisis caused by the slowdown in the global economy threatens a wave of widespread social unrest engulfing both rich and poor countries. ... [The organisation's World of Work study] found that only half the 80m jobs needed to return employment to its pre-crisis levels were likely to be created over the next two years, and that the stalling of the global recovery was already leading to an increase in joblessness. ... In a new 'social unrest' index, the ILO said there was growing unhappiness over the lack of jobs and anger over perceptions that the burden of the crisis is not being shared fairly. It noted that in over 45 of the 118 countries examined, the risk of social unrest is rising, with particular signs of tension in the EU, the Arab region and to a lesser extent Asia."
Question of the Day
What is your favorite Halloween costume? It doesn't have to be one you've worn but can be one you've seen or the like.
Mine is this:
That would be me, in 1985 (so five years old), as a pear. My request, as I thought pears were MADE OF AWESOME. My mom (who was also MADE OF AWESOME) made the costume with two pieces of poster board that she colored in--front and back!--with pear-green marker and rigged string inside for it to hang on my shoulders and to tie at the sides. I was THRILLED with it. While I was out trick-or-treating a lady asked me if I was asparagus. AS IF! I was so indignant about that at the time, LOL!
My next favorite costume just may be this one where the little girl couldn't decide between "a princess" or "Darth Vader", so her dad combined the two: Princess Vader!
Quote of the Day
"I had always been more interested in the private Marilyn, and the unguarded Marilyn. Even as a young girl, my primary concern wasn't with this larger-than-life personality smiling back from the wall, but with what was going on underneath."—Michelle Williams, who is playing Marilyn Monroe in the upcoming film My Week With Marilyn, which looks very good.
Or maybe I just think it looks very good, because I like Michelle Williams so much.
There are precious few actors whose involvement in a film will make me see it just because they're in it, but Michelle Williams is one of them.
