04:49:17 01/04/2017
https://youtu.be/NEUX52TzceA
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A lot of noise but little substance
Hey there, welcome to Wednesday, January 4. Winter seems to have returned to those parts of the US that enjoyed a few warmer days. If you’re in central Indiana this morning, wind chills are down near zero. What you should know, however, is that while today is cold and sunny, there’s a decent chance of snow moving in tomorrow with a couple of inches accumulation. And, wouldn’t you know it, the timing on that is probably going to hit both morning and evening rush hours. You’ll want to plan accordingly.
What we’re watching around the world is a crumbling of Syrian peace talks, an unexpected bump in the road for the UK’s Brexit plans, and a murderer who may finally be about to die. Some are referring to the incoming presidential administration as the “Twitter presidency,” and a bit of bullying keeps car manufacturing domestic for now. All that and we’ve not even started in on our 5 Things You Should Know. There’s a lot of noise, so let’s get to it.
One step forward, two steps …
We’re just going to assume that by now you are aware of the fact that Congress did a backstep yesterday and dropped the planned gutting of the ethics commission. As we stated yesterday, even Republican leaders didn’t like the move and between a tremendous outcry from the public and opposition from the president-elect, lawmakers somehow found the good sense to drop the measure, at least for now. However, don’t go letting those varmints off the hook just yet. Congress approved the rules for the upcoming session with a vote predictably along party lines yesterday1. These are the rules members have to abide by and some of them carry an odor.
Take, for instance, a new rule that calling for members of Congress to be fined if they take pictures or video from the House floor. This measure was included specifically in an attempt to prevent the type of sit-in that occurred in the last session in protest of the body’s refusal to consider gun control legislation. The live-streaming that took place during that event was instrumental in creating a tremendous amount of public support for the effort, much to the chagrin of Speaker Paul Ryan. Republicans don’t want it happening again.
The American Medical Association also formally presented a letter to Congress demanding that they show “in reasonable detail what will replace current policies” before attempting to dismantle the Affordable Care Act. While undoing the multifaceted legislation known as Obamacare was a key platform for Republicans in the last election, no viable alternative has been presented, which would not only affect the 20 million Americans currently covered by the act, but would also affect payments to doctors and other health care providers. The takeaway here is that this Congress is being watched carefully from all sides. They’re not likely to make a move without a lot of people noticing.
A matter of justice
Six members of the NAACP were arrested yesterday afternoon for conducting a sit-in at the Mobile, Alabama office of Senator Jeff Sessions, the incoming administration’s pick for Attorney General2. Cornell Brooks, president and CEO of the NAACP, and Stephen Green, national director of the youth division of the NAACP were among those arrested and charged with misdemeanor criminal trespass. The group had occupied the office early Tuesday afternoon demanding that Sen. Sessions step away from the nomination on concerns about his record regarding voter suppression and what is generally seen as the unjust prosecution of civil rights leaders in Alabama.
Now, on one hand, this might seem like a minor protest that can easily be ignored. Don’t be stupid. While there may have only been six people in the Mobile office yesterday, opposition to Session’s appointment as Attorney General is much broader than that. The Washington Post reported yesterday that more than 1,100 law professors have signed a letter encouraging the Senate to reject Session’s nomination3. The letter states, “We are convinced that Jeff Sessions will not fairly enforce our nation’s laws and promote justice and equality in the United States.”
This opposition, which comes from every state except North Dakota and Alaska, which don’t have law schools, is still just part of the mounting objections. Sen. Session’s record against civil rights is extremely well known. He’s been rejected by the Senate for this same reason before and pressure is mounting to reject him again. The Attorney General of the United States is not just responsible for enforcing federal law, but also directs the actions of the US Marshalls and the FBI. The last thing we need in that position is a racist bigot such as Jeff Sessions.
A visible opposition
Another protest is shaping up that could be even larger, this time around the very inauguration itself. What started as a very small statement of disgust by a retired woman in Hawaii has grown into a full-scale march on Washington, D.C. to express opposition to the new president. Teresa Shook started the Women’s March on Washington thinking it would be just her and a few friends. Protests like that are common with the inauguration of every new president. However, the concept of such a march went viral and there are currently more than 100,000 women who have voiced their intent to participate.
Such a large march is unprecedented. D.C police have issued a permit to march on January 21, not the 20th, citing the size of the march and the security challenges it would create. The day’s adjustment has not made any difference in the size of the march, however, and numbers could easily be as high as 200,000 by the time the event actually occurs. Both Gloria Steinham and Planned Parenthood CEO Cecil Richards have announced their intent to participate, which is attracting other highly visible activists to the cause including Amy Schumer, Samantha Bee and Jessica Chastain.
The biggest challenge for this march as it grows is the cost of security. D.C. law requires that such large events pay for the additional security required to keep everyone safe. As the numbers for the Women’s March grows toward the 200,000 mark, planners need to raise something in the neighborhood of $2 million to cover the security and other event costs. With the march attracting women from across a number of causes, though, I have little doubt the money will be raised and the impact on Washington will be significant.
Educating the masses
The incredible cost of higher education was a huge issue in the past election, but there weren’t too many politicians who dared to latch on to Senator Bernie Sanders concept of cost-free or low-cost education for everyone. The general assumption was that the federal government couldn’t afford to pay for college any more than students can. However, New York Governor Andrew Cuomo is testing a plan that would cover college tuition for students in that state whose families earn less than $125,0005.
Under the plan the governor announced yesterday, any New Yorker who is accepted to a state community college or university is potentially eligible. The program is set to be phased in with those making less than $100,000 eligible for funding in the fall of this year. The amount would increase incrementally over the two subsequent years. Cuomo’s program is a last-dollar initiative, which means that all other grants and scholarships would be applied first with the state making up the difference.
The cost of college education is a major issue across the country with 85 different proposals facing state legislators this year. However, New York’s program would be the largest and could become a model for any attempt at federalizing a funding program. What you should know, however, is that the program only covers tuition. Books, housing, and food are not covered and are still significant costs for most students. This is a good start, but we’ve a long way to go before college is truly affordable.
And finally …
After an election cycle that put her in the spotlight and at odds with her employer, news anchor Megyn Kelly announced yesterday that she is leaving the Fox Network and taking up residence over at NBC where she’ll have two shows on the schedule. A daily talk show and a weekend news magazine will be added to the NBC lineup with Kelly at the helm of both. While no start date has been given for either program, Andrew Lack, chairman of the NBC Universal News Group, praised Kelly as, “an exceptional journalist and news anchor, who has had an extraordinary career. She’s demonstrated tremendous skill and poise, and we’re lucky to have her6.”
Megyn Kelly has long been considered the dominant news anchor at the Fox network, but found herself challenged in the past year by both direct confrontations with Donald Trump and allegations surrounding former Fox chairman Roger Ailes regarding his sexually suggestive comments. That uncomfortable environment along with a desire to spend more time with her three children gave Kelly more than sufficient reason to make the jump.
There is plenty of speculation as to who might take Kelly’s enviable 9:00 PM timeslot, though Fox has yet to infer that it is even looking for a new anchor. There is also some question as to whether Kelly might be groomed to eventually take over the Nightly News chair on NBC. What’s certain is that Megyn Kelly has turned a challenging situation into a positive career move not unlike that of Barbara Walters. We wish her well.
That’s all we have time for this morning. We’re keeping a close watch on a couple of developing stories and will be sure to cut through the clutter and be back with what really matters tomorrow. Here’s to a good day.
5 Things You Should Know: 01.05.2017
04:49:47 01/05/2017
https://youtu.be/x07M8GYJjRQ
Going back to bed is still an option
Wow, here it is Thursday already and this morning is not getting off to a good start. There’s snow on the roads here in central Indiana and already that snow appears to have claimed its first life in a vehicle accident quite literally just up the road from us. There’s more coming in, so be aware that there are slick spots all over, especially at intersections this morning. The chance of snow continues throughout the day so please be careful if you must be out.
The world is not looking to be an especially friendly place this morning as over 100 prisoners escaped from a Phillipinne jail, the impeachment trial for South Korea’s president is underway, and Chicago police have arrested four people who live streamed a kidnapping. Rather makes you wonder if the entire world has lost its freakin’ mind, doesn’t it? We have 5 things you need to know, but hang on, it’s going to be a bumpy ride.
The train stops here
The Long Island Railway is the busiest commuter railway in the United States, carrying over 300,000 passengers daily. If you are one of those who uses this train to get back and forth to work in New York and Brooklyn, you know how crowded it can be during rush hours. People pack as tightly as possible into the cars, hoping to not get stuck next to someone wearing too much perfume. Those packed conditions likely contributed to over 100 people being injured when the train crashed into a bumper block and partially derailed as it pulled into Brooklyn’s Atlantic Terminal yesterday morning1.
Fortunately, none of the injuries were considered life-threatening and most of the hysteria seems to have come from the fear of not being able to escape overcrowded cars. The train had already slowed for its approach to the station, but the partial derailing was still serious enough that a rail punctured the bottom of one of the cars. Somewhere between 600-700 people were on the train when it came to an abrupt stop. The most serious injury recorded so far is a broken leg.
What’s not so clear still this morning is exactly what caused the accident. The Metropolitan Transit Authority is initially looking at the train’s driver, who says that it was the driver’s responsibility to stop the train, but no one knows yet why that didn’t happen. Trains are an integral part of the New York transit system, so expect a full investigation here. If the fault were individual or mechanical, it will no doubt be corrected as quickly as possible to prevent a repeat of yesterday’s chaos.
Hey Doc, I’m feeling a pain in the ass
If anyone had the displeasure of walking around the United States Capitol yesterday, they likely saw some rather disturbing protest signs that read, “Make America Sick Again.” The people carrying the signs were, of course, protesting Republican legislation that would largely dismantle the Affordable Care Act created under President Obama’s administration. The lines were drawn yesterday as both President Obama and Vice President-elect Mike Pence lobbied lawmakers regarding the set of health care laws2.
We knew this fight was coming and we don’t expect it to be over anytime soon. While repealing the Affordable Care Act was one of the things that brought Republicans to power in this Congress, the challenge before them is how to actually live up to that promise without leaving millions of Americans stranded without insurance and healthcare providers looking for payments that may not be coming. For his part, President Obama has been urging Democratic legislators to vehemently oppose any changes to the law, using whatever parliamentary procedures necessary to prevent a vote. After six years of complete obstruction, Republicans may be about to feel what it’s like to be on the other end of partisan politics.
Among the items that were proposed yesterday are repealing the individual mandate, which has been immensely unpopular, capping funding for Medicare, basing tax credits on age rather than income, which would shift more credits to older people who currently have none but could leave younger people with less income stranded, and allowing insurers to sell across state lines3. None of these are likely to become law without a significant fight in both houses of Congress. I’m sure this is just the first time we’ll talk about the issue. It’s not going away.
When free speech disrupts the economy
Just as the US Congress is getting back to work this week, so too are state lawmakers who often have a habit of introducing legislation that, while limited to their own state, is important because of how it could potentially spread if not found unconstitutional. One of those laws was introduced this week in the Washington State legislature where Sen. Doug Ericksen introduced legislation that would increase penalties for economic disruption from a misdemeanor to a felony with up to five years’ imprisonment4.
Exactly what is Ericksen upset about? Well, remember all those protests that occurred after the election last November? One of the nation’s largest was in Seattle, where thousands of people took to the streets to protest the electoral outcome. One of the consequences to those protests was that stores were not able to open or conduct business as usual. The Senator, and those who think like him, see this as economic disruption and their intent is to hold someone responsible for events such as this.
This is kind of scary because it very blatantly flies in the face of that little line in the US Constitution that prohibits “abridging … the right of people to peaceably assemble.” What Ericksen is going to argue is that such protests are not “peaceable.” Windows are sometimes broken. Looting sometimes occurs. What he’s looking to do, however, is shut down vocal opposition by threatening event leaders with imprisonment and a felony record. I cannot emphasize how every dangerous it is that such a law was even introduced. Watch this one closely, and don’t be afraid to protest.
A bit of good news
If there is an apparent bit of good news, it is that Americans are buying a lot of new vehicles. For the second year in a row, US car and truck sales have set a record, this time some 18.4 million of them, an increase of 0.4 percent over 20155. This would seem to be proof that America’s economy is genuinely stronger than has been perceived. The average price for a new vehicle is somewhere in the neighborhood of $35,000. That means a lot of people are spending considerably more than that. When one factors in the interest on a standard five-year loan, what we’re actually spending on those new cars is north of $100,000.
Of course, for the economy, this appears to be very good news. Stock prices for GM, Ford, and Toyota, the new “big 3” in American auto sales, were all up yesterday, as were a number of other car manufacturers. The best-selling vehicle continues to be the Ford F-150 pickup, and pickups, in general, are still the best-selling class. While December sales involved some very heavy discounts, on average around $4,000, GM says that per-vehicle sales, even with discounts, were still up some $740 from the month before.
Major sales such as automobiles are key economic indicators that not only show that we’re willing to spend money, but that we have enough confidence in the economy to make a long-term commitment. While some economists had expected a slowdown toward the end of last year, that doesn’t appear to be happening. The good news wasn’t so good for Fiat Chrysler, however, as sales there slid ten percent. Not everyone gets to be a winner.
And then the bad news
While we’re busy buying a lot of trucks, what we’re not buying are clothes and pots and pans from major retailers. Two retail giants, both Macys6 and Sears7 announced significant store closings yesterday in the face of continued declines and an absolutely horrible sales drop in the month of December. Macys is closing 68 stores by the end of the year and Sears will be shuttering some 108 Kmart stores and 42 Sears stores by April. This is on top of additional closings both stores had announced last year.
Additionally, Kohl’s says its sales were down dramatically as well, but they have yet to announce any store closings. The general retail sector as a whole took a huge hit in the last quarter of the year, with Black Friday and other holiday sales failing to generate the level of revenue generally expected during the final month of the year. Online sales and sales at niche boutiques are getting a lot of the blame for the woes at traditional retailers, with even discounters such as Wal-Mart showing slower sales than the same period last year.
This probably says something about American’s priorities that we’re buying big-ticket items like trucks and SUVs but not so much clothes and household items. We’re much more willing to hold on to the clothes and things we already have while the improved safety and fuel conservation of newer vehicles seems to be a particular draw. Where we’re spending, we are still being very careful to justify our purchases.
And that’s all we have time and space for today. We’re keeping a close eye on everything going on, including Congress and the weather. As always, no matter where you are, if you have to be out, please be safe. We’ll do the same and be back here with more stuff you should know tomorrow.
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