http://www.ToTheCenter.com/ ToTheCenter.com's philosophy is simple. The average person may not recognize a political left or right; but rather, somewhere in between. Our mission is to keep our opinion and news "down the middle" for all. http://www.ToTheCenter.com/news.php?readmore=8330 A Recession of Excesses By Tim Holland The end result of recessions always seems to be the same: bad. This time around the way things got started though, seems to be a bit different in that the recession didn’t start as the result of the natural business cycle with its quasi predictable ups and downs. No, this time the cycle was triggered by the same people who had been holding it off for at least five years. It has been made painfully clear that the United States has been living in a bubble over the past ten years and that no one wanted to admit the bubble was there. What has also become painfully clear is that unlike other bubbles this one was carefully and irresponsibly crafted by the recently created (25 to 35 years) financial services industry, the same players we just bailed out with taxpayer money taken from the very people that were drawn into the financial nightmare. Business and economic cycles, we are told, are a natural event in any quasi free market (since real free markets do not exist and never will). Often governments will intervene on a macro (big picture) level to cushion a market downturn or hasten a recovery. This they do when they see trends which they can deal with. However, this time around the trends were being masked. Since World War Two, the United States had been an economy that has been driven by the consumer. Historically, 60% of the Gross Domestic Product (GDP) has been made up of consumer spending. However, over the past ten years that number has jumped to over 70%. How did the American consumer do it? Credit, credit and more credit. Houses were sold to people who could not afford them. Cars were purchased by people who were not credit worthy. Credit cards were offered to people who could not support the credit lines. All of this mess points back to one source: the financial services monolith. Things were trending in the wrong direction even before Citicorp became Citigroup and broke down all the barriers to banks owning insurance companies, brokerage houses and investment banks, not to mention mortgage companies, credit card companies, finance companies and anything else dealing with money they could fit under the old Travelers red umbrella. They also did it in typical Citi style, whereby they have always believed it was easier to obtain forgiveness than approval. And Congress and the rest of the wimpy business friendly administrations of the last 25 years just caved in and, in some cases, applauded and encouraged the deregulation of the industry. The only thing one can hope for is that all of those executives of the banks that succeeded in the deregulation of the industry they inherited and pocketed those millions upon millions of dollars worth of bonuses and stock options for having succeeded, became friends and confidents of Bernard L. Madoff. Consider the fragile inverted pyramid that was created. Someone without a down payment, who has never owned a house purchases one with an artificially low interest only, adjustable rate 100% mortgage. The only concern the mortgage representative and bank have is: does the borrower have enough cash to pay the bank fees and commissions? Not to worry, the bank offers a credit card with a credit limit sufficient to cover the fees and charges. But what if he has trouble paying the mortgage next year? Not to worry, the value of the property will increase by 25% a year and the bank will offer a home equity loan based on the increased value. But how do we protect ourselves from all these sub-prime mortgages? Not to worry, the bank will package them into securities that will be AAA rated by the credit agencies they are paying big fees to and can be sold to investors all over the world. And if something goes wrong? Not to worry, they can pass the risk onto the insurance industry which just created an insurance product made just for these securities called Credit Default Swaps. So what went wrong? The consumer maxed out. John Q. Public found himself with a FICO credit score of 725 (because of all of his credit capacity and obvious assets – the new house, two new cars, ten credit cards with $75,000 in credit lines) but a mortgage and car loans he couldn’t pay because a bank didn’t send him an offer of a new credit card this month to which he could transfer all his outstanding balances (for a 3% bank fee, up front of course) and he just learned that his $50,000 job was being outsourced to the Far East. Was all of this inevitable because of the natural up and down forces of the business cycle? Yes, but not to the extent that it is happening. Our problem is that the seeds of our own economic destruction usually occur as a response to a crisis. The savings and loan crisis: “You have to ease up on the regulations in order to help the banks survive, go easy on mergers and acquisitions that you would normally oppose.” The crash of 1987: “You have to ease up on the regulations in order to help the banks survive, go easy on mergers and acquisitions that you would normally oppose.” 911 financial aftermath: “You have to ease up on the regulations in order to help the banks survive, go easy on mergers and acquisitions that you would normally oppose.” Dear Congress and Mr. New President, is anyone out there listening and learning. http://www.ToTheCenter.com/news.php?readmore=8329 By Jessica Trusiani The six candidates for RNC chairman will face off at a debate Monday night. This is an essential time the party choses a new face to represent Republicans. It has been a rough year for the party and the future RNC chairman has many challenges to face. One of those challenges is improving the party's appeal to younger and minority voters. According to CNN.com, Republicans did not fare well with both groups in November polls. Another challenge the chairman will likely face is the "identity crisis" the Republican party appears to be going through. Moderates and conservatives are at each other's throats over the party's values on issues such as abortion, the economy and gay rights. For example, many moderates may not approve of same-sex marriage; however, many are more accepting of civil unions than conservatives who feel same-sex couples should not have any of the legal rights opposite-sex couples have. If the Republican party wants to make a comeback, they need to find a chairman who will unite the moderates' and conservatives' opposing views before the party drifts apart any further. http://www.ToTheCenter.com/news.php?readmore=8328 Archeologists in Germany have found over 600 relics of a battle between a Roman army and Barbarians in the third century. "We have to write our history books new, because what we thought was that the activities of the Romans ended at nine or 10 (years) after Christ," said Lutz Stratmann, science minister for the German state of Lower Saxony. "Now we know that it must be 200 or 250 after that." According to CNN, for weeks, archeologist Petra Loenne and her team have been searching this area with metal detectors, pulling hundreds of ancient Roman weapons out of the ground. They paint a picture of a highly organized, technologically superior Roman army beset by Germanic tribes in a forest about 80 km (50 miles) south of the modern city of Hanover. The hillside battlefield was discovered by relic-hunters illegally searching for souvenirs of more recent wars near the town of Kalefeld-Oldenrode. One of them brought some of the items he found to Loenne, who works for the local government. The artifacts are so well preserved that the scientists can already retrace some of the battle lines. The items unearthed so far include an axe, still sharp after nearly 1,800 years; horseshoes; shovels; spearheads; and dozens of arrowheads for a Scorpio, a cross between a catapult and a crossbow -- the ancient equivalent of artillery. Researchers say the evidence suggests the tribesmen lured the Romans into the forest to keep them from making full use of those long-range weapons and draw them into hand-to-hand combat, outside of the formations the imperial troops had mastered. However, they believe the Romans ultimately prevailed. http://www.ToTheCenter.com/news.php?readmore=8327 By: Bree Shirvell Anti-Israeli protests continued in California Monday as Israel sustained its ground invasion into the Gaza Strip. As many as 200 pro-Palestinian demonstrators gathered in San Francisco this morning outside the Israeli Consulate to protest Israeli’s military offensive in Gaza. The protest was the fifth pro-Palestinian demonstration in San Francisco since Israel began a military offensive on December 27. Police monitored the protesters but no arrests were made. In Los Angeles the group LA Jews for Peace organized a pro-Palestinian rally at a Federal building. “We have to remember that Israel is the third largest exporter of biological weapons,” Marcy Winograd a member of the organization said “As a Jewish American, this not my dream. And I ask Jews and all people of conscience to say no, that violence is not the way. We want a cease-fire now.” Protesters also gathered in Anaheim, CA. “I am not a Palestinian, but, I feel like I'm Palestinian today and every day I see civilians and women and children being bombed indiscriminately,” Ian Thompson, a protesters in Anaheim said. Counter demonstrators showing their support for Israel were present in Los Angeles but were largely outnumbered by pro-Palestinian protesters. Protests against a perceived disapportionate Israeli military response have been held around the world since Israeli first launched air strikes into Gaza on December 27. The majority of the protests have occurred in Europe, Egypt, and Saudi Arabia. http://www.ToTheCenter.com/news.php?readmore=8326 By Amy Kronenberger This week in history saw the birth of legends and the death of heroes, legends who inspired learning, laughter and debates, heroes who inspired change, invention and new understanding. When thinking of inspiring new understanding, few people stand out more prominently than Sir Isaac Newton and Galileo Galilie. Galileo has been called the “father of modern observational astronomy,” “the father of modern physics,” “the father of science,” and “the father of modern science.” In his work, Galileo revolutionized man’s understanding of physics using his motion of uniformly accelerated objects called Kinematics. He also made great strides in astronomy, discovering the first four moons of Jupiter, studying and analyzing sunspots and using a telescope to confirm the phases of Venus. Galileo died Jan. 8, 1642 at the age of 77. Sir Isaac Newton is most famously known for formulizing universal gravitation and his three laws of motion. The book in which these finding were published, “Philosophiæ Naturalis Principia Mathematica,” is considered to be one of the most influential books in the history of science. Newton was born one year after Galileo died: Jan. 4, 1643. In our recent history, television played an undeniable role in laughter and learning. On Jan. 5, 1945, the Warner Brothers character, Pepe le Pew, made his television debut, bringing laughter for generations to come. And what childhood memory is more synonymous with Saturday morning cartoons than “School House Rock?” On Jan. 6, 1973, “School House Rock” debuted with “Multiplication Rock.” For inspiring laughter and debates, the mysteries of the deep seas offer plenty to scratch our heads about. On Jan. 8, 1974 the first photograph of the very debatable Loch Ness Monster was taken. On Jan. 9, 1493, Christopher Columbus recorded the first ever sightings of manatees. Columbus and his men mistook the manatees for mermaids. This led to the debate of whether the manatee was responsible for the birth of the mermaid legend. For inspiring invention and even a bit of laughter, Nikola Tesla was a true inventor who possibly tipped the scales into madness. Tesla was often regarded as the most important inventor and scientist in modern times, and by modern biographers, he was called “the man who invented the 20th century.” Tesla is most famed for his advancements in modern electrical engineering and the development of the alternating current transformer. However, his eccentric personality and his claims of inventing weapons such as the “teleforce,” which the press labeled the “death ray,” caused much laughter, smearing his reputation. Tesla claimed the “teleforce” would be a “super-weapon that would put an end to all wars.” Because of these wild claims, Tesla became known more as a mad scientist than as the revolutionary inventor he actually was. Tesla died on Jan. 7, 1943 at the age of 86. And finally, few embody the image of true-blue American hero like Theodore Roosevelt. Spirited and highly opinionated, Roosevelt’s life was a series of adventures taking him everywhere from the wilds of Africa to the White House. Though perhaps most famous for bringing about the construction of the Panama Canal, Roosevelt was also known for being very progressive for his time, fighting for the equality of all people, and for the conservation of the environment. By the end of his administration, Roosevelt had established an unheard of 42 million acres in national forests, national wildlife refuges and 18 areas of special interest. Additionally, Roosevelt became known as the “trust buster,” dissolving 40 monopolistic corporations. Roosevelt made clear, however, that we wasn’t against capitalism and trusts, only against corruption and illegal practices. Roosevelt was the fist American to win a Nobel Prize, winning the peace prize in 1906 for negotiating peace in the Russo-Japanese War. This was somewhat ironic considering his belief of “speak softly and carry a big stick.” Roosevelt is remembered by history as being one of the best U.S. presidents. He has been immortalized in Mount Rushmore, and as historian Thomas Bailey described, “Roosevelt was a great personality, a great activist, a great preacher of the moralities, a great controversialist, a great showman. He dominated his era as he dominated conversations....the masses loved him; he proved to be a great popular idol and a great vote getter." Roosevelt died suddenly at the age of 60 on Jan. 6, 1919. http://www.ToTheCenter.com/news.php?readmore=8325 by Jessica Trusiani Increasing studies suggest meditation is a great way to reduce stress, according to Dr. Charles Raison who is CNNhealth's mental health expert doctor. Raison says even simple meditation such as saying a mantra (ommm) in your head or paying attention to your breathing can make a significant difference. Raison isn't the only fan of using alternative medicine for stress reduction. Dr. Brent Bauer, director of Complementary and Integrative Medicine Program, agrees with him. "We completely underestimate the severity of stress and the impact it has on our health," Bauer told CNN.com. "When you look at what stress does to us, it reduces our immune function, it delays wound healing... and raises the risk of heart disease." Though Bauer is a heavy supporter of alternative healing, he told CNN.com he would never advise a patient to replace conventional medicine with meditation. He believes it's best the two be used to complement each other. http://www.ToTheCenter.com/news.php?readmore=8324 By Amy Kronenberger The Senate parliamentarian officially rejected Roland Burris’ claim to President-elect Barack Obama’s vacated Senate seat Monday, saying he is not a senator-designate in the eyes of the Senate and has no right to walk on the Senate floor to be sworn in Tuesday. According to ABC News, the Senate parliamentarian rejected Burris because the credential was not valid after it was presented to the secretary of the Senate at the Capitol Building by Clayton Harris, Blagojevich's acting chief of staff. The Secretary of the Senate’s Office said the credential did not conform to Senate rules, which require a signature from both the appointing governor and Illinois secretary of state. Illinois Secretary of State Jesse White refused to sign the credential. Instead, Harris included a fax from White’s office with the credential stating it had registered Blagojevich’s intention to appoint Burris. Harris expected the credential to be rejected. However, he presented it to the Senate staff anyway. "My role here is to do everything I can to make sure the state of Illinois continues to function," said Harris. "The first priority is getting the great state of Illinois all of its representation in Congress." Senate Majority Leader Harry Reid said he would meet with Burris on Wednesday to discuss the matter. However, Reid repeatedly called on Blagojevich to step down and allow his replacement to choose Obama’s replacement. http://www.ToTheCenter.com/news.php?readmore=8323 By Amy Kronenberger President-elect Barack Obama’s two daughters, Malia, 10, and Sasha, 7, were quietly hurried to their new school Monday morning with photographers always close at hand. According to the Associated Press, once photographers get their photos of the first children starting school, the press traditionally back off. However, in the age of the internet, the Obama’s must face the all-to-real presence of the paparazzi, not to mention any student with a camera phone and a Facebook page. "It is an exaggerated example of what parents face routinely when their kids are online," said Carolyn Jabs, who writes a syndicated column called Growing Up Online. "For the Obama girls, that is a given that it will get out of hand." Blogs have already critiqued what every member of the family wears. A bad hair day, schoolyard gossip and a manipulated photo can cause problems in any girl’s life, Jabs said. Imagine if the greater free world were watching. "Mean things about them online are going to be problematic," she said. "They're going to have to develop a thicker skin in the way all celebrities do." At the Girls’ school, Sidwell Friends, cell phones are not allowed, giving the girls some protection during the day. "We do hold students accountable for cyberbehavior," said Associate Head of School Ellis Turner. "I think our students understand that we expect them to be responsible Internet users." However, in the age of YouTube and bloggers, the Obama’s and their school have their work cut out for them. "It's a new age," said Doug Wead, a former aid to President George H.W. Bush. "Every word is worth money. It's currency. Every photograph is worth money. It'll take a lot of cooperation and the school year's a long time." http://www.ToTheCenter.com/news.php?readmore=8322 By Amy Kronenberger Ford Motor Co. announced Friday that December sales fell 32.4 percent in the United States. As a result, the company’s sales fell 20.7 percent for all of 2008, equivalent to more than 500,000 vehicles. According to projections from Edmonds.com, Fords competitors are expected to report dismal numbers with Chrysler and GM anticipated to be the worst, reported the New York Times. Nissan is also expected to report losses. Additionally, Mercedes reported a 23.5 percent loss for December and an 11.2 percent loss for the whole year, and Toyota recently reported its first full-year operating loss in 70 years. “When you adjust it for population, this is something that we really haven’t seen since the 1960s,” Erich Merkle, an automotive analyst in Grand Rapids, Mich., with the consulting firm Crowe Horwath, said. “This is a really horrible cycle in terms of auto sales.” But the year was not all doom and gloom for Ford. In December, the company estimated that its market share increased to 14.6 percent, up 0.7 of a point from a year ago. Also, its Ford F-series pickup has maintained its position of best selling model in the U.S. for the 27th consecutive year. http://www.ToTheCenter.com/news.php?readmore=8321 by Jessica Trusiani Just two weeks before his inauguration, President-elect Barack Obama plans to give a major speech on the economy Thursday, according to CNN.com. Obama will meet with key lawmakers from both parties this week in an effort to push for major tax cuts and spending proposals aimed at bringing life back to the economy. Among the top legislators Obama plans to meet with is House Speaker Nancy Pelosi, D-Calif; Senate Majority Leader Henry Reid, D-Nev; Senate Minority Leader Mitch McConnell, R-Ky and House Minority Leader John Boehner, R-Ohio. Obama's advisers said they expect his overall stimulus plan to fall between $675 billion and $775 billion, though Obama has not publicly announced this, according to CNN.com.