JAPAN ECONOMY SHRINKS 12.7%.

This is not good news for us, folks. Japan has the second largest economy in the World, and is our third largest customer, in terms of Export dollars. Canada is our Number One Export customer and their economy shrank 0.5% in 2008, but is likely to be significantly worse in 2009, due to commodity price declines. Same with Mexico, our Number Two Export customer.

To me, this means that it is entirely possible (though not a certainty) that our economy is headed for a much worse recession than people are currently acknowledging. Stimulus package, or no stimulus package.

60 MINUTES.

Last night on 60 Minutes, there was a story about World Savings, a financial institution that was heavily involved in subprime lending. We have read so many stories about financial malfeasance over the last six months that it is hard to work up the outrage that this story rightly deserves. Selling mortages to people who could not afford to make the payments, refinancing folks repeatedly into mortages that put them further and further behind. Skimming fees from every shady transaction along the way. What an awful story. They had me. Then they interviewed a lady who is in danger of losing her home because of the World Savings sales reps who convinced her to refinance several times into mortgages that she could not afford. Awful. Terrible. Very sad story. But, what's this? She received $20,000 in cash each time she refinanced. And, now she can't afford to pay back what she owes.

But, I am left asking at what point is it the responsibility of the borrower to know what they can afford? Why does this lady, and others like her, get a "free pass" with respect to her receiving $20,000 in cash to refinance her home, but then not being able to afford the refinanced payments? Why is it now our responsibility, as taxpayers, to fix this mortgage? Because, make no mistake about it, the taxpayers are going to be picking up the tab for this. When President Obama says he has a plan to re-work mortgages, that means watch your wallet because we are going to be paying for it.

Where is personal responsibility in all this? Why do we accept the explanation that it is always someone else's fault?

GAZA WAR: UN School "Massacre" Update

Remember during the Gaza War, there was a news story about a UN School that was hit by Israeli artillary? At the time, news reports indicated that 42 civilians, including lots of children, were killed there. At the time, it was reported that the Israeli attack was unprovoked. International outrage at Israel's "disproportionate" response peaked after this story was reported.

Then, a few weeks after the incident, it turns out that there were witnesses in Gaza who came forward and testified that there was a Hamas mortar crew firing from right next to the school. And, questions were raised about the number of casualties at that time. Now, there is another story about this incident. Turns out that the latest estimate is that there were not 42, but 12 people killed at the school, and 9 of them were Hamas operatives. And, that the Israeli shells did not actually hit the school, but outside the school where the mortars were being fired from. Israel is providing the names and ages of the casualties in Gaza, to set the historical record straight. It is hard to dispute when you have the facts in hand.

But, you won't find this story on the front page of the New York Times, or the Guardian in London . . . nope. It would create too much egg on their faces to report this story. Just let the lie live, and save face.

All for now,

Woldy

P.S. I will be out of commission tomorrow, traveling for work. Back on Wednesday.