Clem’s Chronicles: Balloon Boy/Home Foreclosures/Pakistan Violence
howdy folks-Clem Lane here. pretty interesting day. here in the northeast, we are bracing for heavy rains, gusty winds, and snow (!) in certain areas. it's still october right? i am off tomorrow so you'll have to wait until monday for the next chronicles. have a good weekend. here's the news………
BALLOON BOY-Well it certainly made for an interesting afternoon of television on the cable news networks. As David Muir explained on WORLD NEWS, “news helicopters had their cameras trained on this silver balloon flying aimlessly…fueled by helium as it drifted through the skies over Colorado. The fear…that this 6-year-old boy, named Falcon Heene was inside.” News helicopters were just the beginning-Muir tells us “military and law enforcement agencies scrambled to get their own aircrafts up and to the balloon. The Colorado National Guard was in the air. A Blackhawk helicopter was at the ready.” When the balloon did descend some two hours later, it was hundreds of miles from where it started and did not contain a 6-year-old boy. So where was the boy? Attention shifted to reports that something had fallen off the balloon at some point during the flight. Was the boy in whatever might have fallen? Was he in deadly peril? The answer to that question…thankfully no. Late this afternoon, authorities got word that young Falcon Heene was found…hiding in a box in his parents’ garage attic. So what happened? Talking to the press afterwards with his wife and three boys around him, father Richard Heene said the family was tinkering with the balloon Thursday and that he scolded Falcon for getting inside a compartment on the craft. He said Falcon's brother had seen him inside the compartment before it took off and that's why they thought he was in there when it launched. Falcon himself confirmed the parental scolding. "I was in the attic and he scared me because he yelled at me," Falcon said. "That's why I went in the attic." Mr. Heene adamantly denied the entire episode was a publicity stunt. The boys’ parents are storm chasers who appeared twice in the ABC reality show "Wife Swap," most recently in March. So in the end no harm no foul…but some coin was certainly dropped. It wasn't immediately clear how much the search operation cost. Capt. Troy Brown said the Black Hawk helicopter was in the air for nearly three hours, and the Kiowa helicopter was airborne for about one hour. The Black Hawk costs about $4,600 an hour to fly, and the Kiowa is $700 an hour, Brown said. Clayton Sandell attended a presser from Major Justin Smith of the Larimer County Sheriff’s Department. Sandell: “He says with the information they have, there are no grounds for criminal charges against the family. He also says the family will NOT be charged for the cost of the search. Their feeling is that they don't want the public not reporting an emergency if they are worried about payment before safety.“
HOME FORECLOSURES/NO RECOVERY HERE-More evidence that the “economic recovery” currently underway is not as all-encompassing as one might hope. Betsy Stark, filing for WORLD NEWS, notes that “while the Dow climbed higher again today, helped along by more solid bank earnings, we learned that Americans are losing their homes to foreclosure at the record rate of 425 every hour, 7 every minute.” Helping to spur these record home foreclosure filings? The nation’s rising unemployment. Stark explains: “As hundreds of thousands of Americans lose their jobs every month, they’re falling behind on their mortgage payments at a record pace. Almost one in 10 homeowners is now at least 30 days late making their house payment.” The Obama Administration is attempting to help-Stark tells us they’ve set aside “$50 billion to help banks and mortgage lenders modify home loans to make them more affordable.” 500 thousand families have been helped with the program Stark notes but “2.2 million homeowners have fallen into foreclosure this year.” The reason more homeowners haven’t been helped? One very large catch-22. Stark: “Critics say the problem with the program is that to get a loan modification, you need to show an income. Which means you need to have a job. A condition 15 million unemployed Americans cannot meet.” So the people most in need are not eligible….Plan B anybody?
PAKISTAN ON EDGE: There was no let up today in the escalation of violence by Islamist militants in Pakistan. In the last ten days, more than 150 people have been killed in several major attacks. Nick Schifrin fills us in on today’s bloodshed: “Eight AM: Militants start their day by blowing up a police station near the Afghan border. Before the debris is cleared, at 10 AM – their partners strike in Lahore, the cultural heart of Pakistan. Three brazen, simultaneous attacks on the police and the equivalent of the FBI. And on it went, finishing at 6 PM with a suicide car bomb in Peshawar. Today made it brutally clear – the militants can strike when and where they want.” When it was over, 39 police and civilians lie dead and nearly all of the gunmen, wearing suicide vests, blew themselves up. One of the targets in Lahore was a training center for an elite police unit tasked with fighting militants. Sources say many of the trainers there had received instruction from U.S. law enforcement officials under a little-publicized State Department program. There are some who feel the attacks may have been timed partly to take advantage of a rift between the Pakistani government and the country’s army over a U.S. aid package intended to symbolize U.S. support for Pakistan’s democratic transition after years of military rule, as well as its anti-terror fight. Pakistan's military had complained because the legislation ties some funds to fighting militants and is seen by critics as violating sovereignty President Obama signed the $7.5 billion bill into law today. It provides nonmilitary aid to Pakistan to fund projects that include agricultural development, schools and roads. (thanks to Ed Bailey for this entry)
AFGHANISTAN/WHAT’S GATES THINKING?-Has Defense Secretary Robert Gates changed his thinking on what to do re: McChrystal plan for Afghanistan? Martha Raddatz, speaking with Charles Gibson on WORLD NEWS thinks that may be the case. Raddatz: “I started looking back at things he said in the last couple of weeks and it’s very different than concerns he had originally….I think he’s leaving a bread crumb trail that leads me to believe, and others, that he’s leaning towards a troop increase.” So, what impact would that have on President Obama’s thinking? Raddatz: “I think the President has enormous respect for the Defense Secretary. He was a holdover from the Bush Administration. I think they’re very close. He listens to his advice. Very carefully. So, I think it would be difficult for Obama to say no to him.” And when might a decision come down? Raddatz told Gibson “probably a couple of weeks.”
AFGHAN ELECTION RESULTS-Nick Schifrin says they are now scheduled to be released on Saturday. Schifrin: “It's pretty clear that they're going to nullify a number of Karzai votes. The question is whether they nullify enough to push him below 50 percent. I think it's very possible that the second round will happen, but no guarantee. Assuming the foreign-led Electoral Complaints Commission does push Karzai below 50, the Afghan-led Independent Election Committee still has to officially certify the ECC's decisions. Nobody knows how they're going to react (they are largely controlled by Karzai), and so it will be at least a few days before we know whether they will try some funny business to delay a second round. But if they don't, the second round has to be held 2 weeks after IEC certification — so first week in November.”
DRYWALL HEALTH AND HOME CONCERNS-It’s not just foreclosures vexing American homeowners. A federal hearing began in New Orleans today on the status of multiple lawsuits alleging that defective Chinese-made drywall is destroying homeowners’ health and homes. It’s unfortunately not uncommon-Elisabeth Leamy, filing for WORLD NEWS, tells us “more than 100 thousand homes in 40 states are effected….by Chinese-made drywall that emits fumes so strong they corrode metal…homeowners wonder what it’s doing to their health.” With reports of sore throats, asthma attacks and horrible headaches, it appears to be much more than psychosomatic. But let’s get back to the drywall-how did all this happen? Leamy: “The problem drywall was imported during the building boom of 2004 to 2007 because of shortages. It costs as much as a hundred thousand dollars to replace it. And corroded plumbing and electrical fixtures may have to go too.” So what’s a homeowner to do? Leamy says that “many are suing their builders and drywall manufacturers.” Worse case-they can get money from their insurance company to fix right? Um……no. Leamy again: “Insurance companies say their contracts clearly state they’re not responsible for construction defects.” Even worse than not being reimbursed, Leamy tells us “some insurance companies have started cancelling policies when they find out about the Chinese drywall because they consider it a risk that could lead to other claims.” And without that home insurance, Leamy adds, “they could lose the homes themselves.”
WOMEN AND HEALTH INSURANCE-Gender equality is alive and well but apparently not when it comes to getting health insurance. Lisa Stark, filing for WORLD NEWS, introduced us to Peggy Robertson, a married mother of two boys who went shopping for better, cheaper health insurance. Ms. Robertson noted that “The company I went to, Gold Rule, denied me and when I asked why, they said, well you’ve had a C-section.” Stark picks up the story: “The insurance company was worried if Robertson got pregnant again, she’d likely have another C-section, and they didn’t want to pay for it. But the company did offer one option” Robertson again: “If you would like to get sterilized we would be happy to cover you.” Note to self-I guess there are SOME bad ideas after all. Folks on Capitol Hill were less than enthusiastic about the company’s offer-Sen. Barbara Milkulski (D-MD) saying “I find it offensive and I find it morally repugnant.” The company backtracked telling Stark “it will now cover women who have had C-sections, but they’ll likely have to pay more for their maternity coverage.” And that’s not new-Stark reports that “lawmakers were told that women are often charged more for health insurance…as much as 48% more than a man of the same age.”
SWEAT LODGE DEATHS- Yavapai County, Arizona Sheriff Steve Waugh said this afternoon that the two people killed during a sweat lodge ceremony last week were not killed accidentally and that the deaths are being investigated as homicides. Waugh said that self-help expert James Arthur Ray is the primary focus of the investigation. Ray led more than 50 people into a makeshift sweat lodge at a retreat outside Sedona, Ariz. on Oct. 8. In addition to the 2 fatalities, 19 others were taken to area hospitals. One person remains in critical condition.
OTHER STUFF-
–NOAA WINTER WEATHER OUTLOOK- NOAA's just released winter weather outlook says warming El Niño waters in the Pacific will lead to warmer-than-average temperatures in the west and central U.S., and colder temperatures in the southeast and mid-Atlantic region. Plus, there's an increased chance of tornado activity in the gulf coast region. (Clayton Sandell)
–LETTERMAN SEARCH WARRANT UNSEALED- The search warrant unsealed today gives new details and color, but doesn’t change the basic story we’ve been reporting. Read the particulars in Lauren Pearle’s note to the Domestic News DL (Lauren Pearle)
–US SENDING UN AMBASSADOR TO ISRAEL FOR TALKS WITH BIBI AND ABBAS- US and Israeli officials tell ABC News that the Obama administration is sending its top UN envoy to Israel and the Palestinian Territories next week. Officials say on Wednesday US Ambassador to the United Nations Susan Rice will address an annual conference hosted by Israeli President Shimon Peres, but will also hold bilateral meetings with senior Israeli and Palestinian Authority officials. The officials spoke on the condition of anonymity because Rice’s trip has yet to be announced. (Kirit Radia)
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My guess is that most of these foreclosures are relatively new mortgages which really paints a horrific picture of the predicament of a significant number of home buyers -too many to simply be those who “got in over their head”.
But still, a lesson can be learned here that when you’re income is good, you should be trying to pay off your mortgage as soon as possible – extra payments go to principal only, increasing your equity, if your mortgage agreement allows them.
In 1993, when mortgage rates were dropping from 9+% to 6+% and everyone was trying to refinance, an interesting episode of “Your Portfolio” on CNBC featured a musician from Pittsburgh with inconsistent income. Bill Griffeth and Jimmy Rogers tried to talk him into refinancing to a 30 year mortgage instead of a 15 yr because the extra money due to the lower payment, invested in the stock market, would generate a better return than paying off the home at a low interest rate and getting fewer tax deductions for mortgage interest.
But the man was obstinate. No, he said. Because of his varying income he wanted the security of a paid off home ASAP – that was MOST important to him. And Griffeth and Rogers could understand his point.
So, as my friends “wisely” refinanced to 30 years for those reasons, I “unwisely” got a 15-year mortgage – and even shaved two years off that with a unique 4-yr mortgage for 5.4% at the end. Sure, I had a secure job but you never know!
Today my home’s been mortgage-free for two years and I’m comfortably living on a small pension. My friends have 14 years left on their mortgages. And, of course, they didn’t set aside and invest that extra money – so they’re not retiring for a while!
Posted by: The_Mick | October 16, 2009, 4:49 am 4:49 am
The glow stick that little Falcon is chewing on in the news video is highly toxic and carcinogenic. His parents should not be letting him stick those things in his mouth..
Posted by: jimmy | October 16, 2009, 5:28 am 5:28 am
There’s something not quite right about this balloon incident. One of the boys is actually taping the incident happening?!! The father is really playing it up to the camera too. I’m thinking hoax.
Posted by: zee | October 16, 2009, 8:05 am 8:05 am
I find it very disturbing that there is even the possibility that the “adventure” was a deliberately staged quest for publicity.
Apart from this specific case, there is a significant difference among those who wish to get ahead in life between those who will engage in dubious conduct to achieve that and those who definitely wont’t.
Posted by: Candadai Tirumalai | October 16, 2009, 9:22 am 9:22 am
Anybody minding Pakistan’s nukes?
Posted by: hello, Pakistan | October 16, 2009, 11:34 am 11:34 am