A "hobo" clown at heart, down on my luck (previously but not now), but eternally optimistic :o)
Nov 23, 2008
Home Gym Project, Complete :o)
Big Three Bailout - Yes or No ???

There have been some discussion threads and entries about the pros and cons of assistance to the Big Three (This one for you Mark).
This got me thinking, at first blush, I am against a "bailout" (it is bad business planning and poor decision making, the company(s) do not deserve to be bailed out), and that is the fiscal conservative republican side of me. After all, if we bail out the auto industry, what is next, every struggling company will line up with the palms extended upwards (sometimes holding a bucket). Where do we draw the line?
Then there is the socially liberal side that looks at the impact to the people, the workers and families that were simply doing their jobs, and they may have to pay the ultimate price. How do we address that issue, do we bailout the companies, do we provide increased welfare and job training, do we do a packaged bankruptcy with government backing???
I can see, understand, and empathize with both perspectives. So, I decided to look at the business case perspective; what is better for the average taxpayer. Some facts/assumptions:
- One Million workers potentially impacted.
- Average weekly unemployment benefit is $359/week (assume 20 weeks)
- Assume average salary is $60K/year, and that workers will be out of work for a year.
What is the burden to the taxpayer if do not provide some assistance? The unemployment benefits will cost $7.18 Billion. The lost tax revenue, assuming a 25% rate, will cost $15 Billion in lost taxes. So, without even considering downstream costs to other local businesses that lose sales, and without considering job training and placement assistance, we are at a greater than $22 Billion impact if we do nothing.
So, I say that some assistance package is necessary, for the good of the impacted workers and their families, as well as for all tax payers. I think that some guarantees of repayment (so the assistance is more like a loan) and harsh realities for the executives (no bonuses, reduced pay) are definitely in order. Longer term, we need to consider reduction in manufacturing in other countries, retooling for renewable technology, and some union concessions are in order to ensure the viability of this industry in our country.
I think that whenever we are faced with such a dilemma, we need to run the numbers, figure out what the business case is, and make our decisions based on facts, not emotion. When the number of impacted employees is around a million, the numbers do not lie; when the numbers are in the thousands, it is much harder to make the case.
Nov 22, 2008
Mini-Me :o)

Since everyone enjoyed the last picture of Sheeba, getting some heat from the register, I thought I would post another picture I took a couple of months ago.
We picked up beanie babies that were a black panther some time back. Sheeba likes to play with them, often tossing them in the air (especially after I rub some catnip on it, hmm, good idea, I am doing it now).
Okay, that was fun, he enjoyed his "treat". Here is a mini-slide show.
Mini-Nukes Part Deux :o)

Nov 21, 2008
Keeping Warm :o)
Mini-Nukes?

Now, however, Hyperion Power Generation — a US company based in New Mexico — has brought the dream of tiny nuclear reactors one step closer with its Power Module. This nuclear reactor — or "battery" as the firm calls it — is not much larger than a hot-tub and could supply thermal energy at a rate of about 70 MW. That could be converted into about 27 MW of electricity (thermal efficiency is about 33%), which would be enough to supply about 20,000 US households.
The firm says it will have a prototype of its reactor fully-designed next year and that it has already secured an order for six units from a group of investors in Eastern Europe, including the Czech engineering company TES, who have an option to buy a further 44. It also claims to have other commitments from various parties — mostly energy utilities that currently use diesel generators in remote locations — for a further 100 units. The company expects to deliver its first reactor in June 2013.
Reactors would be configured and sealed at its factory, which has not yet been built, before being shipped to customers. Installation would take as little as six months and a reactor could remain in place for at least five years before the spent reactor would have to be returned to the factory and recharged with fresh fuel.
Hyperion believes that its reactors are ideally suited for companies needing a source of power in remote areas, such as mining companies or those wishing to extract oil from, say, the Canadian oil sands — an application that Altira has long been interested in. This is an energy intensive process that is currently fuelled by natural gas. According to Peterson, the large quantities of greenhouse gases that are generated during extraction could be reduced greatly if a Hyperion reactor were used — although the company has no firm orders from the oil industry.
About the author
Hamish Johnston is editor of physicsworld.com
Vindication!
Nov 20, 2008
HomeWork :o)
Hope you have a great Friday and an easy slide into the weekend :o)
More Info Needed - No More Bailouts :o)
In addition, I think they made a great decision in the house today to change leadership on the Energy Committee. A new focus on alternative energy and global warming vs. the status quo. As usual, California has been a leader in this type of situation, and frankly, I think there are some things we can learn from their approach. If you are interested in details, read on :o)
WASHINGTON (Reuters) – U.S. Rep. Henry Waxman, a California liberal, won the chairmanship of a key congressional energy committee on Thursday and promised to work closely with President-elect Barack Obama to promote alternative energy, ease global warming and expand health care.
Waxman wrested control of the U.S. House of Representatives Energy and Commerce Committee from Rep. John Dingell of Michigan, a longtime friend of the now-ailing U.S. auto industry.
The action was taken on a vote of 137-122 at a closed-door meeting of House Democrats. Waxman will take the gavel when the 111th Congress convenes on January 6, two weeks before Obama is sworn in as the 44th president.
"American people are hurting all around this country," a victorious Waxman told reporters on Capitol Hill. "They are demanding action. And we must live up to their expectations."
Waxman, known as a skilled legislator, said the new committee leadership would help "to get important issues passed in health care, environmental protection, in energy policy."
Many of Obama's plans will be funneled through the Energy and Commerce Committee, whose vast jurisdiction includes consumer protection, regulation of energy resources, global warming, conservation, health and auto emissions.
Waxman favors stronger fuel economy standards for U.S. cars and trucks. But with the three major U.S.-based automakers facing severe financial problems, it may be difficult to boost gasoline mileage requirements that federal law says must climb by 40 percent to 35 miles per gallon by 2020. That is still lower than what is required for vehicles in Europe and Asia.
Environmental groups welcomed Waxman as the new chairman of the powerful committee
"Waxman will help Obama move forward with his agenda," said Frank O'Donnell, president of Clean Air Watch.
ALTERNATIVE ENERGY
Waxman's immediate priorities will likely be passing legislation to promote alternative energy that would help create the millions of "green" jobs that Obama has called for.
He is also expected to seek to clear a bill that would cut U.S. greenhouse gas emissions and prepare America to be part of an international agreement to fight global warming.
"Waxman undoubtedly would press more aggressively for effective legislation to limit greenhouse gas emissions," said O'Donnell. "Dingell is the favorite of the K Street lobbyists because they realize he will move more slowly, and not require their companies to do as much on global warming."
Fossil-fueled vehicles, like those made in Dingell's district, which includes Detroit, are key sources of greenhouse gas carbon dioxide that contributes to global warming.
Dingell, the longest-serving member of the House, fought for decades for breaks for the Big Three automakers, which are now seeking emergency financial aid from Congress.
Dingell eventually joined the drive to force the industry to build more efficient cars, and last year helped win passage of legislation to increase fuel economy standards, but not as much as Waxman and others wanted.
Ethan Siegal of the Washington Exchange, which tracks Congress for institutional investors, said Waxman's harder edge had long been noted.
"We see Dingell as a more pragmatic, deal-making liberal with whom the business community can negotiate; and we see Waxman as more of a classic take-no-prisoners liberal who tends to go for the jugular."
Greenpeace praised Waxman's global warming plan to reduce U.S. greenhouse gas emissions 25 percent by 2020 and for the long term by 80 percent by 2050.
Waxman previously sought to block the Environmental Protection Agency from issuing permits for new coal-fired power plants unless those facilities installed the best technology to cut greenhouse gas emissions.
Waxman is a big supporter of renewable energy sources such as wind and solar power and is a major critic of Big Oil. He has also investigated the cozy relationship some oil companies have had with Interior Department employees responsible for overseeing drilling on federal lands.
