Come for the politics, stay for the snark.
At first glance, I would say this is long overdue:
The board that writes accounting rules for American business is proposing a new method of reporting pension obligations that is likely to show that many companies have a lot more debt than was obvious before.
In some cases, particularly at old industrial companies like automakers, the newly disclosed obligations are likely to be so large that they will wipe out the net worth of the company.
The panel, the Financial Accounting Standards Board, said the new method, which it plans to issue today for public comment, would address a widespread complaint about the current pension accounting method: that it exposes shareholders and employees to billions of dollars in risks that they cannot easily see or evaluate. The new accounting rule would also apply to retirees’ health plans and other benefits.
A member of the accounting board, George Batavick, said, “We took on this project because the current accounting standards just don’t provide complete information about these obligations.”
***Using information in the footnotes of Ford’s 2005 financial statements, Ms. Pegg said that if the new rule were already in effect, Ford’s balance sheet would reflect about $20 billion more in obligations than it now does. The full recognition of health care promised to Ford’s retirees accounts for most of the difference. Ford now reports a net worth of $14 billion. That would be wiped out under the new rule. Ford officials said they had not evaluated the effect of the new accounting rule and therefore could not comment.
Applying the same method to General Motors’ balance sheet suggests that if the accounting rule had been in effect at the end of 2005, there would be a swing of about $37 billion. At the end of 2005, the company reported a net worth of $14.6 billion. A G.M. spokesman declined to comment, noting that the new accounting rule had not yet been issued.
I don;t know how this would impact the overall stock market in the short run, but it appears that in the long run this would be a change towards more healthy accounting practices. You business folks can correct me if I am wrong.
This is rather extraordinary:
Sago Mine survivor Randal McCloy Jr., looking thin and stiff but walking on his own, offered his gratitude Thursday as he was released from a hospital after almost three months.
”I’d just like to thank everybody for their thoughts and prayers” McCloy said softly, wearing a ball cap and a racing-team jacket at a morning news conference. He paused, then added with a weak smile, ”I believe that’s it.”
His doctors say they can’t explain why McCloy, who was trapped underground for more than 40 hours after the Jan. 2 mine explosion, survived the carbon monoxide exposure while all 12 other miners with him died. Medical crews at the mine and the doctors who first treated him have said McCloy, too, was close to death.
I listened to the press conference this morning while riding the bus to work, and it really is amazing how quickly he has recovered, especially considering he was unresponsive until Valentine’s Day. Governor Manchin, who I normally like a great deal, irritated me a little bit when he claimed the recovery was ‘proof of a higher power’ (which made me wonder why the higher power killed the other 12), but this extraordinary and a good day for McCloy and his family.
I really don’t know what to make of this:
Thousands of students walked out of high schools in Los Angeles and across Southern California this morning as protests against restrictions on immigration spread across the city for a fourth day.
School walkouts were reported at schools in San Diego and Orange counties, and in the Santa Clarita Valley in northern Los Angeles County. There were also immigrant rights marches nationwide.
In Los Angeles, dozens of schools experienced walkouts, with the major events downtown, where several thousand students converged on City Hall, and on the Westside and in the San Fernando Valley.
At midafternoon, student marchers descended onto the heavily-traveled 101 Freeway near downtown, snarling traffic and creating safety hazards, according to televised reports. The northbound freeway was restricted to one lane. The freeway later reopened after students exited on an off-ramp in Echo Park.
When I was in High school, if I could have organized it, I would have walked out protesting anything if it meant not being in class. I don’t know how much these High School walkouts really reflect opinions regarding immigration, but I do know that Californians in general have strong opinions about the issue and that Californians, given an opportunity and a reason, can throw one heck of a riot when it comes to matters of race.
*** Update ***
Good grief, Ezra:
John Cole, noting a 500,000 person march that resulted in not one arrest and a fully peaceful walkout from LA County schools, sniffs that he “doesn’t know what to make of it” and implies that California’s immigrants are gearing up for a race riot.
WTF is right? Since when did everything I write get so damn misinterpreted? I wasn’t suggesting there was going to be a race riot, I was asking if there was really anything to this, or if it was just kids trying to get out of school. If there is something to it, and it is more than kids just trying to play hookie, then I don’t think observing California’s recent history with race riots and the recent racial tensions (umm, Minutemen, anyone?) is that crazy or that sinister.
And I certainly was not attacking the walk-out or trying to imply anything about them. I didn’t even express my normally disdainful view of all things protestor. I was just asking what is going on and whether this is anything to pay attention to, as if you haven’t noticed, I have been pretty busy lately and not up to my usual blogging/news-reading. I know we all love a good pile-on, but how bout we start asking me things before thinking the worst- especially those of you who know and use my instant messenger screen name.
Two notable deaths this week that should be at least mentioned in passing. First, Reagan aide and friend Lyn Nofziger has died:
Lyn Nofziger, a longtime adviser and strategist to U.S. President Ronald Reagan, has died at his Falls Church, Va., home at the age of 81.
Nofziger began his time at Reagan’s side to the 1966 California gubernatorial campaign. After serving as press secretary in Reagan’s 1980 presidential campaign, Nofziger stayed on in the White House as assistant for political affairs until Jan. 22, 1982.
***He reportedly irked first lady Nancy Reagan with his appearance, which often featured shirts that appeared to be too small, and Mickey Mouse ties with the knot pulled down, the newspaper said.
A little closer to home, Sen. Byrd’s wife of 69 years (that is not a typo) has died after an extended illness:
Erma Ora James Byrd, the wife of Sen. Robert Byrd (D-W.Va.), died Saturday after struggling with a long illness. The couple had been married for 69 years.
Erma was a coal miner’s daughter who met her future husband at Mark Twain Grade School in Raleigh County. They were married in a simple ceremony when they were 19.
The Byrds came from humble beginnings. Their first refrigerator was half of an orange crate nailed to the side of their home.
Although I am not sure how an orange crate refrigerates anything (how did that pass by the Hill editors?), my condolences to both families. Erma Byrd, btw, was one of the political spouses from a bygone era- she was completely out of the limelight, and I know nothing about her other than that she was Robert Byrd’s wife. I don’t know if that is an artifact of the changing roles of women in society or the changing role of spouses in general in politics (I don’t remember Dennis Thatcher getting much media attention, either). Most likely, a little bit of both.
RIP.
Some stories just make you shake your head:
We never think very much about the downside to global harmony. Why not? Defense contractors got families to feed. Some third-world kids would starve if they didn’t have jobs making cheap AK47 knockoffs. Peace doesn’t sound like such a great deal for them.
Chat about whatever.
Slow day? When they’re not harping on Jeff Goldstein the bloggers in my RSS reader seem really focused on Ben Domenech, the WaPo’s new blogger and the co-founder of RedState. Pachacutec at Firedoglake has an especially thorough linkfest. Sure, I think that it’s embarrassing that the Washington Post has to “balance” a career journalist like Froomkin* with a hardcore Republican operative, but keep in mind that evil liberal extremists run the media. They must have set him up as a laugh-at-the-crazy extremist freakshow sort of thing. If they wanted to hire a war-supporting conservative with a basic knowledge of his subject matter they could have picked Gregory Djerejian.
There’s Iraq. Blogging about Iraq has become as interesting as blogging about global warming. Some new outrage comes up every day (Iraq, global warming), but the narratives have already been written. The people in charge of policy will adapt to the latest news just like I’m going to sprout wings and fly to the Sharp Edge in time for happy hour.
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(*) Note to rightwingers – muckrakers rake muck about people in power. It’s their job. If Froomkin wanted to spend his time fellating federal officeholders he would host cable news.
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Finally, a gratuitous beer pic to celebrate the return of our server upload capacity. In case you know how that works (which I don’t). We had this at a recent lab mixer and true to its name this brew is hoppy as hell. And tasty. It’s also my boss’s favorite beer so I’m contractually obligated to recommend it.
