Clem’s Chronicles: Cali Fires/Hurricane Jimena/Wall Street Woes

CALIFORNIA FIRES-Finally, a pretty good day for Southern California firefighters.  How good? Well one incident commander seemed to lower the threat level, saying the largest fire (the so-called Station Fire) had gone from “angry” to “cranky”.  Brian Rooney, reporting for WORLD NEWS, tells us that fire “is now 15 miles north to south and 20 miles east to west” after “expanding by 16 thousand acres overnight”. While that level of growth sound ominous, Rooney tells us “it’s actually good news” and demonstrates the growth is slowing. But there’s PLENTY left to do-some 3600 firefighters backed by aircraft spewing fire-retardant and water “are working fast to build 50 miles of line which includes defending the Mt. Wilson Observatory and communication towers.” Further south-two other major fires. Ryan Owens reported from Tujunga for WORLD NEWS. Owens noted that “Firefighters used to battling flames found themselves powerless as these flames scaled mountains and dove into canyons-almost at will.” But in areas where firefighters could do battle, it was a question of how close is too close. Owens reported from one Tujunga neighborhood that “the strategy for saving this neighborhood comes down to a dirt road. Firefighters are stationed every few feet. They let the flames come right up to the road but no further.”
While lives and property are paramount, what can’t be ignored are the costs borne by the state. You may remember California has itself a little budget problem…no let’s make that a big budget problem…and the intensity of these fires so early in the season, Brian Rooney tells us, means that “California has burned through nearly two-thirds of its emergency firefighter money” and the Santa Ana winds haven’t even kicked in yet this year.
The latest…at an 8pm briefing from fire officials, the Station Fire now stands at 127 thousand acres plus and is 22 percent contained.  62 residential buildings have been destroyed. 

TIPPI HEDREN’S ANIMAL PRESERVE-We’ve heard stories of folks who’ve refused to evacuate in the face of these fires and some who’ve paid the price for it. The jury’s still out on how Tippi Hedren will fare. The actress, best known for her starring role in “The Birds”, runs the Shambala Preserve north of Los Angeles. Ms. Hedren was ordered days ago to evacuate her home on the preserve, along with her 64 big cats (Lions and tigers and the like), but she demurred. Hedren’s 65-acre preserve is located about six miles east of Acton, and it does seem to be pretty well equipped-it has water tanks, a lake and firefighting pumps, plus 36 transport crates for the animals(Hedren says it would take about three hours to load up and the animals and get out of Dodge). But with the fire just a mile from her place, it’s clear the worst may not be over.

HURRICANE JIMENA/TROPICAL STORM ERIKA:  Hurricane Jimena has started to pound the Mexican resort town of Cabo San Lucas, already causing a torrent of floods and high winds.  At least 7,000 tourists are riding out the Category 3 storm in their hotels, but as David Kerley reported on WORLD NEWS, many locals living in Cabo’s shanty towns have decided to stay put: “down the road from the sturdy hotels….the military and police moved into shanty towns….telling residents of these plywood and tarp homes it is time to leave.  But many residents here have been wary of evacuating…afraid to leave their few valuables…a TV or refrigerator behind.” More than 5,000 residents have evacuated the region and another 2,000 have sought shelter in local schools.  The Associated Press reports there are another 159 shelters – capable of housing 29,000 –are ready for those who need housing after the storm passes.  Jimena is expected to weaken as it passes over the southern part of the Baja peninsula.
In the Atlantic, Tropical Storm Erika formed this afternoon, just east of the Northern Leeward Islands.  Tropical storm watches have been issued for many of the small islands near Erika, including Barbuda, Antigua and St. Maarten.  The 3-day forecast shows Erika reaching Puerto Rico by Friday, likely as just a tropical storm.  (thanks to Marisa Bramwell for this entry)

WALL STREET BLUES-Historically September has been a pretty lousy month for Mr. Market and unfortunately the first day of an investor’s “cruelest month” did not disappoint. The Dow Jones dropped 186 points. Why? Investors resumed worrying about banks-there seems to be a fear that more banks could fail. Another drag on the Dow? The Dow itself. Some investors are worried the market has gone up too far, too fast. And then there’s the self-fulfilling prophecy of September being a bad month for investors. All this negativity triumphed despite several good economic reports out today. The U.S. manufacturing sector grew in August for the first time in 19 months. A gauge of future home sales surged in July to its highest point in more than two years. And auto sales – boosted by the Cash for Clunkers program – appeared in August to have marked their first year-over-year monthly gain since October 2007. (see separate entry below for cash for clunkers). Speaking in the Rose Garden today, President Obama praised the manufacturing sector report, but Jake Tapper and Sunlen Miller report, “Mr. Obama said that no doubt there is still a long way to go.”

CASH FOR CLUNKERS/AUGUST AUTO SALES ROBUST- Dan Arnall: “Reports from the major auto brands show that car and truck sales during August rocketed to a seasonally adjusted annual sales pace of 14.09 million units – the fastest sales pace for the North American market since May 2008.
With more than 690,000 buyers taking advantage of the taxpayer subsidies (up to $4500) for turning in gas guzzlers and purchasing fuel efficient new cars car dealers saw their first year-over-year sales gains since October 2007. Overall sales were up 1% this August when compared to sales a year ago. The clunkers program ended up costing the Federal government $2.88 billion.
U.S. nameplate Ford saw sales increase (+17.2%) during August thanks to strong sales of the fuel efficient Focus and Escape models – two of the top selling cars in the cash for clunkers program. GM (-20.1%) and Chrysler (-15.4%) had both emerged from government-engineered bankruptcy filings, but saw slower sales thanks to low inventory levels last month.
Toyota (+6.4%) which is the #2 nameplate by sales in the U.S. enjoyed a significant boost as consumers were shopping for clunkers-eligible new cars. It’s Corolla sedan was the best-selling model in the clunkers program. Honda (+9.9%) also got a boost from its fuel-efficient cars.
Analysts say the market will likely see big drops in sales during the coming months as many of the sales which would have happened later this year were pulled into July and August by the government incentive programs. Asian nameplates grabbed market share thanks to the CARS program – they accounted for 52.3% of all car sales in the industry last month.”

SWINE FLU READINESS:  The readiness campaign for the H1N1 virus continued today, with the President briefing the public on the government’s plans and progress on vaccines.  Jake Tapper/Sunlen Miller report: “The President warned that the worst may be ahead for the H1N1 virus – yet cautioned for people ‘not to be alarmed’ but ‘to be prepared’ and gave a brief update on the administration’s efforts for preparation….The President said they are making ‘steady progress’ developing a safe and effective vaccine…The President called on every American to play a role in responding to the virus – from state and local governments, to hospitals and local businesses, calling on them have plans in place to deal with increase patients and workers who may need to stay home.”
Also today, the Department of Health and Human Services, the Department of Homeland Security, the Department of Education and Sesame Workshop released PSAs created by the agencies that encourage children to practice good hygiene to prevent the spread of swine flu. (thanks to Marisa Bramwell for this entry)

BLACKWATER CONTRACT EXTENDED IN IRAQ-Kirit Radia has an ABC NEWS exclusive: “The State Department has extended a contract with controversial private security firm Blackwater, ABC News has learned. Sources say the department has agreed to continue using Presidential Airways, an arm of Blackwater (now known as Xe) to continue a contract to provide helicopter transport for employees around Iraq until a new contract with another security company, Dyncorp, is fully implemented. The Xe contract was due to expire this month. According to a State Dept official, Dyncorp takes over the airlift contract on September 4, but the extended contract with Xe will now overlap for some time to allow for continuity during the transition as Dyncorp will not be fully staffed and certified immediately. The Xe extension is for an indefinite period of time, but an official stressed it was ‘limited.’
The official said the State Dept would like to complete the transition in ‘weeks or months.’ Once this contract is up, it will end Blackwater’s presence in Iraq. Blackwater was banned from operating in Iraq by the Iraqi government earlier this year and the State Department discontinued contracts with the company for personal security details in Iraq. The company angered Iraqis after its guards were accused of shooting 17 innocent Iraqis in a crowded Baghdad traffic circle in 2007. An official says the US informed the Iraqi government that the decision was ‘because the complexity of transition from one company to the next was going to take a little bit more time.’ ‘They were understanding,’ the official said of the Iraqis. The US embassy is dependent on the airlift capacity in order to get around the country, a need that has only increased since the US military has begun to scale back its operations, officials say.

DETROIT SCHOOLS AND BILL COSBY-School means different things to different people. It can be a “sanctuary” away from troubles at home, a place to learn and grow, even a place to develop athletic skills. For residents of inner-city Detroit, it may be best described as a “hellhole”. Barbara Pinto, reporting for WORLD NEWS, tells us the woes: “A school system hundreds of millions of dollars in debt, teetering on the edge of bankruptcy, plagued by corruption, violence, and poor test scores. Over the past decade, half of the students have disappeared…moved out, dropped out or gone to charter schools. Of those that stay, only 1 in 3 graduate.” Enter Bill Cosby who Pinto tells us is “a high school drop-out who later earned a PHD in Education”. Cosby has “volunteered to help restore faith in the future of Detroit’s troubled schools.” And while no one, especially Cosby, sees his input as THE solution, it’s clear Cosby’s presence provides a lift-as one woman said “If Bill Cosby’s here, you know something positive is happening in Detroit.”

OTHER STUFF-
–THERE’S AN APP FOR THAT?-Hey Mr. IPhone user-Think you got all the apps you need? Well not if you want in on the world’s pandemics. Lisa Stark tells us that researchers at Children’s Hospital in Boston have a developed a new iPhone application that lets users track and report outbreaks of infectious diseases (everything from salmonella to the H1N1 virus). (Lisa Stark)
–FREEDOM COMMUNICATIONS CHAPTER 11-As expected, Freedom Communications, the parent company of the ORANGE COUNTY REGISTER, dozens of other newspapers and the owner of 8 television stations, filed for bankruptcy today. The filing by Freedom Communications Holdings Inc. was part of a prepackaged plan approved by a majority of the company's lenders. Under the proposed restructuring, Osborne said the family and two investment firms that own Freedom would be left with no more than a 2 percent stake in the company. The rest of the stock would go to a group of 27 lenders owed nearly $771 million. The lenders led by JP Morgan Chase & Co., would forgive most of that debt in return for control of the company. (AP)