Since the British Petroleum (BP) well erupted at the Deepwater Horizon drilling rig on April 20th, roughly 800,000 gallons of oil has been spilling into the Gulf of Mexico on a daily basis. While BP has been making limited progress in slowing the leak, they have estimated that the well will not be capped until August, at the earliest. Coast Guard Admiral Thad Allen has now estimated that the disaster cleanup could take years, but we can only speculate on the long-term damage to the sensitive Gulf marshes and the likely collapse of the local marine population. Rest assured we will be feeling the reverberations of this catastrophe for decades to come. One just has to look at the environmental and social impact on the Prince William Sound area 20 years after the Exxon Valdez oil spill to get a glimpse of the exponential future repercussions of the worst oil spill in United States history.

If you are like me and have been following BP’s self-inflicted soap opera over the past 49 days, you are frustrated and angry. You are frustrated over BP’s risky business practices and their inability to plan for the potential consequences of such behavior (hastily strung together stoppage techniques like “The Box” and “Top Kill” do not count as a disaster plan). Surely you are also frustrated over the widespread corruption and incompetence at the Minerals Management Service, which is supposed to act on behalf of the American people and is “responsible for inspection and oversight of energy companies to ensure they are following the law and protecting the safety of their workers and the environment.” Unfortunately, having a good mission statement doesn’t stop oil spill disasters. And finally, if you are like me, you feel angry at your inability to make any meaningful impact on this disaster. Fortunately, both you and I would be wrong to think we are completely helpless.

When I typed “how to help the oil spill cleanup,” strangely very few applicable links popped up and there certainly was no comprehensive resource. However, after some digging I found a lot of good information and have already started taking steps to make my own personal impact. And assuming there actually are people out there like me who want to help, but aren’t sure how, I have summarized five action items you can start today.

1. Volunteer your time -- Many organizations are recruiting volunteers, including The Audubon Society, the National Wildlife Federation, and the Greater New Orleans Foundation. The Louisiana Bucket Brigade (LBB) offers a few ways to volunteer and the Environmental Protection Agency has created DeepwaterHorizonResponse.com, which includes hotlines to volunteer opportunities.
2. Adopt a bird -- The International Bird Rescue Resource Center (IBRRC) has an ongoing adopt-a-bird program where you can help ducklings, egrets, and pelicans that have been effected by this oil spill and other disasters (see image below).  Perhaps due to legal requirements, sometime in the past few days the IBRRC changed their donation page to note that “BP has committed to paying for the clean-up and wildlife rescue efforts in the Gulf of Mexico oil spill. While your donations cannot be used to fund bird rescue operations in this spill, IBRRC welcomes support for its ongoing programs to rescue and rehabilitate aquatic birds by donating, becoming a member or adopting a bird.”  In any case, the IBRRC appears to be on a mission worthy of your support.
3. Get a haircut -- A unique way to support the oil spill cleanup effort is to get a trim at a barbershop or salon that sends off your clipped hair to be used in those oil containment booms we’ve seen all over the news. The non-profit Matter of Trust provides further information and the following video offers a little insight into this unique way to help:  

   www.youtube.com/watch?v=EAou7qy4BvE

4. Make noise -- Although you can submit suggestions on stopping the oil spill and/or limiting the damage to the Deepwater Horizon Response site (apparently BP’s suggestion box has been overflowing for some time now), you should also be sharing your thoughts with both your locally and nationally elected representatives. If you think the government response has been lacking, if you want better oversight of offshore drilling, or if you’re tired of multi-national corporations polluting our oceans (all of the above?), make yourself heard.  Review our Contact Your Government article from last year, which provides an easy way to get in touch with your mayor, governor, congressperson, senator and president in a matter of minutes.
5. Stay informed -- Several sites keep you up-to-date on the oil spill, but some of my favorites include the LBB’s Oil Spill Crisis Map, the National Wildlife Federation, NOAA, and the sad but true Consolidated Fish and Wildlife Collection Report from IBRRC.  Most news outlets will give you top-level information on BP’s response, but these sites will give you more detailed information that shows the true breadth and impact of the disaster.

If you have any other suggestions on how individuals can help the oil spill cleanup effort, share your thoughts below.  And if you’re in need of a laugh at BP’s expense, check out the Twitter feed of their “public relations” consultant, Terry (@BPglobalPR).  During this dark and absurd time, we need all the levity we can get.  Best of luck.

- Matt

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www.youtube.com/watch?v=u6XAPnuFjJc

- Matt

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“Political freedoms (in the form of free speech and elections) help to promote economic security. Social opportunities (in the form of education and health facilities) facilitate economic participation. Economic facilities (in the form of opportunities for participation in trade and production) can help to generate personal abundance as well as public resources for social facilities.”

You might find this either basic or esoteric, but it certainly deserves some thought. Although I think he was actually discussing nation-building, if there is a formula for what makes America such a prosporous nation, Sen’s idea has provided the most accurate and concise I’ve ever seen.

- Matt

—————–

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Before you take a look at the 45-minute video, here are my main five takeaways from Friedman’s presentation:

1. Global economic competition has been flattened in the last decade. (06:10)  According to Friedman, “From the year 2000 to the present, [competition] was shrinking the world from size small to size tiny and flattening the global economic playing field at the same time.  Only what’s really new, really different, really exciting, and really terrifying, is that this era of globalization is certainly not spearheaded by countries, and it’s not exclusively spearheaded by companies anymore.  This era of globalization is spearheaded by individuals.”  During these times of mass media and mass communication, we are also witnessing a new dawn of mass competition on a global level. 
2. Friedman’s four “Key Flateners” consist of the PC, Netscape, the “Work-flow Revolution,” and Uploading. (07:20)  Everyone’s familiar with the power of the PC, but the Netscape browser brought the Internet to life and it’s successful 1995 IPO boosted investment in fiber optic cable all over the world.  This led to greater world-wide collaboration and eventually, to today’s YouTube and Wikipedia.  
3. Iron rule of business on the Flat World Platform: Whatever can be done, will be done. (17:48)  “The only question left is, will it be done by you, or to you?”
4. The way the U.S. is going to stay on top is to start a real Green Revolution (32:50).  We all like to think we are becoming more energy efficient and making progress in the fight against global warming, but Friedman brings up an important point about this Green “Revolution”.  He says, “Have you ever been to a revolution where no one got hurt?  This is not revolution, this is a party.” (36:55)  Now, Friedman’s not suggesting an uprising and installing an authoritarian regime.  Rather, he’s stating that for true fundamental change in clean energy, companies who fail to innovative will disappear. 
5. The problem with the term “green,” is that is has always been named by its opponents. (42:16)  Green has been labeled “liberal, tree-hugging, sissy, girly-man, unpatriotic, vaguely French.”  This term needs to be rebranded to mean what it truly stands for: “geo-political, geo-strategic, economic, capitalistic, entrepreneurial, patriotic.”  As Friedman says, “Green is the new red, white, and blue.” 

Pretty powerful stuff. 

- Matt

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• First they had to deal with the American consumers’ notion that foreign cars were better built and lasted longer (a complete exaggeration, American cars are perfectly engineered… to last exactly 36,001 miles);
• Then came that pesky gas crisis, when $4/gallon gas forced consumers to realize that their Escalade on 24’s wasn’t as good on gas as a Mini Cooper (might explain the meteoric sales increases of Big Dog brand clothing (overcompensation perhaps?));
• Don’t forget that whole national auto sales down 40% from previous years thing;
• And now they have to deal with a new boss… not a CEO, but a CIC! (Commander in Chief)

Obama has very clearly lowered the boom on GM and Chrysler (Ford did not need bailout money) going so far as to remove GM CEO Rich Wagoner after 30 years of service explaining that this is “a recognition that it will take a new vision and new direction to create the GM of the future.”  No offense Mr. President, after all you did correctly choose the Final Four winner, but I don’t think that riding around in the back of an armored General Motors limousine qualifies you to run the company!

And why all the scrutiny?  We don’t care about the $170 billion we gave to AIG, but a tenth of that has you dedicated to push GM into bankruptcy which could lead to the destruction of an American institution?  The President has ordered GM to shrink labor costs, reduce the models available for sale as well as the dealers that sell them, and if possible, get rid of the under performing brands (sorry Hummer and Saturn owners).  Now honestly, I am as shocked as you that I am writing this today in defense of the Big Three.  As a confirmed BMWphile who has also owned four Fords, I can promise you its not because I think the cars are amazing.  But I think that as far as bailouts go, fair is fair.

As far as I am concerned, AIG participated in outright daft if not intentionally deceitful business practices, and they are still allowed to function without ridiculous oversight.  All GM did was build millions of dramatically inefficient light trucks and SUV’s for consumers who wanted to buy them, attempted a sacrifice bunt (sorry, it’s opening week for MLB, finally!) in the small car market (has anyone had the privilege to drive a Cobalt?), and when the market demands shifted they had nothing to sell.  I agree, not smart, but now they have until June 1st in a recessionary auto market to fix their problems, or Washington will declare bankruptcy for them.

I am truly scared, because what is more American than eating apple pie and drinking PBR in the back of your Chevrolet pickup while tailgating at a St. Louis Cardinals game?  Try that in your Honda pickup and we will probably find you with Jimmy Hoffa and Pepsi Clear.

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With the help of Economist Alan Blinder and Academic Earth, here is a more comprehensive (albeit dry) accounting of the Origins of the Financial Mess.

- Matt

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While the country’s economy struggles and attempts to “right the ship” have been met with heavy partisan politics, it appears Geithner’s “bank plan” is not sitting well with every Democrat on Capitol Hill either.  Democratic Rep. Brad Sherman of California criticized the plan for rescuing banks while neglecting taxpayers.  This is a common refrain that’s beginning to sound like a broken record: Why are we “bailing out” banks that got us into this mess?!  Trust me, I’ve asked myself this many times.

However, the problem with this line of thinking is the banks and lending institutions are not the only ones whose hands are bloody.  After all, the American mortgage and housing industry does not exist without lenders, borrowers, mortgage brokers, real estate appraisers, developers, and of course…a government who chooses how each of these entities will be regulated.  It’s easy to forget how we got to where we are today.

Fortunately, there are resources available to remind us.  Recently, PBS Frontline aired one of their thoroughly researched and impressively concise 60-minute programs titled “Inside the Meltdown.”  While the video doesn’t cover the pre-2007 housing market, it focuses on the systemic risk and difficult decisions former Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke, and Geitner had to make.

There are no heroes in this story, only delayed disaster at every turn.  With this as a reference point, we can understand that the decisions Geithner is making today, whether right or wrong, are wrought with painful deliberation and overwhelming consequences.

- Matt

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The American people don’t have the luxury of just focusing on Wall Street. They don’t have the luxury of choosing to pay their mortgage or their medical bills. They don’t get to pick between paying their kids’ college tuition or saving enough money for retirement.

They have to do all these things. They have to confront all these problems. And as a consequence, so do we.

Obama states the obvious that only focusing on the economy (and AIG) is impossible for a successful president, and he’s clearly inherited a bevy of domestic and international issues to address.  He could try to handle them one-by-one, but since the World won’t wait, he should probably start fixing all of them…right…about…now:

• War in Iraq — As we spoon-feed responsibility to the Iraqis in accordance with the agreed-upon mandate, things are improving, right?
• War in Afghanistan — The new administration’s most seasoned veteran of U.S.-Afghan engagement (and I don’t mean just since 9/11), Defense Secretary Robert Gates, is telling everyone who will listen about the complicated difficulties of solidarity in Afghanistan.
• Military presence in Kosovo — Yes, we’re still there, with some criticism that we are using our bases as a European Guantanamo.
• Resurgent Taliban in Pakistan — The tribal regions and Swat Valley in northwest Pakistan are essentially under Taliban control.
• Potential failure of nuclear state in Pakistan – Due to (1) the resurgent Taliban, (2) a history of mistrust between the President, Army, and the Directorate of Inter-Services Intelligence (ISI, the Pakistani CIA), (3) the current political unrest (resignation of President Pervez Musharraf last year, the assassination of his likely replacement Benazir Bhutto, and the election a questionable leader in Bhutto’s widower Asif Ali Zardari), and (4) a destructive paranoia of all things India, there is significant concern of Pakistan’s viability as an independent state and that an extremist organization (read: the Taliban) may gain control of their nuclear arsenal.
• Potential failure of Shiite-controlled Iraqi government — Ever since Paul Bremer’s de-Ba’athification of Iraqi politics and society and the near boycott of initial elections by Sunnis, questions have lingered whether a Shiite-dominated parliament can maintain popular support once the Americans “leave” the country.  Recent elections might actually provide some insight into future of Sunni political power.
• Guantonamo — Close the base?  Sure.  What to do with the prisoners?  Umm…not as easy.
• Darfur — As a genocide goes unrecognized by the Sudanese government and undeterred by the United Nations’ bureaucratic futility, will our country’s first African-American president be willing to pressure China to help end Africa’s most publicized crisis?
• Iran — Bush labeled them “evil“, McCain wanted to “Bomb, bomb” them and Obama welcomes them to the table.  Are they our worst nightmare or a stabilizing force in the turbulent Middle East?
• Israeli-Hamas Conflict — The demands from each side may be both historically justified and in direct conflict, so can another Camp David meeting with an American president solve anything?  Probably not, but…got any better ideas?
• Al Qaeda — With bin Laden in control or not, the extremist organization is still alive and thriving.
• No attacks on U.S. soil — Perhaps the only unquestionable success of President Bush is that there have been no major terrorist attacks within our borders since 9/11.  While we can question the means to how this was acheived, Obama must recognize that he’s not going to be allowed any mulligans and that any failure in this area would doom his presidency.  And if the pressure wasn’t high enough already, he’s got this guy salivating at the opportunity to title his memoirs “I Told You So”.
• New Secretary of Defense — Robert Gates is the best inheritance from the Bush Administration and is worthy of the job, but it remains to be seen if his world-view is in line with Obama, Secretary of State Hillary Clinton, or CIA Director Leon Panetta.
• Domestic spying — Wielded openly by Bush and Vice President Cheney as necessary in the War on Terror, will Obama carry on these quasi-illegal activities or will he please the masses by removing this tool from the presidential arsenal?  This is a constant sticking point in the freedom v. security debate.
• Constitutional basis for advancement of presidential power? – Cheney, David Addington and John Yoo played the most significant roles in advancing executive branch powers since 9/11, but with a former whistleblower appointed to head the Department of Justice, Obama appears willing to concede some of the Bush Administration’s questionable Constitutional justifications.
• Recession – You can’t turn on the news anymore without hearing about the “worst financial crisis” since the Great You Know What, but can Obama’s stimulus package right the ship or should we just take our medicine and ride this thing out?
• China — We spend and they save.  We want low-priced products and they swallow our industry.  Are we already too far in to get out from under the potential world power of the 21st century?
• Deficit spending  and the rising national debt – With balanced budgets under President Clinton seemingly a lifetime away from D.C.’s current corporate shopping spree, are we destined for complete foreign ownership or will we find out President Reagan was correct and deficits just don’t matter?
• Rising unemployment — Unemployment is at its highest rate in 16 years (8.1%) and some economists estimate the rate will max out around 10%.  Now would probably be a good time to dust off that resume and invest in a new suit.
• Industry nationalization and bailouts — The government has purchased equity stakes in a large number of banks and lending institutions, the auto industry received their unexpected share of help, and the American people are waiting for their personal bailout.  Who should be salvaged and who will be left to fail?
• Mortgage crisis — With thousands of upside-down ARM loans resetting in the next few years, the mortgage crisis has yet to hit its peak.  Will lenders be willing to renegotiate terms or will Obama play hardball to keep people in their homes?
• Health care — The costs of employee-based health care plans continue to increase while the coverage appears to be getting worse.  Is universal health care the answer or can we learn a few things from the mistakes and successes experienced overseas?
• Tax policy — Republicans were quivering at claims of Obama’s redistribution of wealth plans, but the economic downturn is having the largest impact on his tax policy.  Step one: Extend the Bush tax cuts or maintain campaign promises of lowering taxes for 95% of the country? We have an answer.

Obviously this is only a list of the high-visibility issues and Obama will have to handle far more, but if he can resolve all of these effectively and maintain a campaign promise or two, the White House should start filling out his canonization application just prior to his second term. 

- Matt

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Bernanke consented to an interview because of the “extraordinary times” we are experiencing in our country.  Now I don’t know about you my dear readers, but I might use “extraordinary” to describe Katy Perry’s ahem… lung capacity, but I would definitely not be using the word to describe the extreme economic conditions that a lot of American’s are facing today; an unemployment rate over 8%, spiraling personal debt, and 401k’s worth about…$401 (at least I hope mine is still worth that much).

Also addressed by Bernanke in his interview was the shocking news of how American International Group (AIG) has spent the nearly $170 billion that the United States (we own over 80% of the insurance giant now) has lent them over the last four months.  I’m going to oversimplify here, but basically AIG got into trouble by insuring risky mortgage loans for financial institutions like Citigroup and Goldman Sachs.  When consumers began to default on these loans, the financial institutions turned to AIG to collect on their policies.  AIG however, hadn’t planned for a financial meltdown and did not have the money to pay, so they turned to the government to help bail them out.  At the same time, these financial institutions also turned to the government for help, help that was gladly provided by our elected officials.

So what did AIG do with all of that money?  Well some of it went to bonuses for the very executives who sold these insurance policies to Citigroup and their ilk.  SAY WHAT????

Bernanke expressed his feelings most strongly on this particular case, claiming that several times he has “slammed down the phone” in frustration over the AIG situation.  Jeeezz, slow your roll Ben, and you better take an extra nitroglycerin pill for the old ticker.  After all, I’m sure the millions of American’s who are now out of work do not take kindly to random destruction of innocent office equipment.

Now if Mr. Bernanke said that several times he had gotten so frustrated that he had driven his Lexus through the plate glass windows of AIG’s Manhattan headquarters,  discharged several 9mm rounds at the fancy chandeliers, thrown a grenade or two at the Bentley’s stacked in the parking lot, and then pushed the executive helicopters off the roof, I think we might be a little more compassionate towards his rageaholic tendencies.  Oh well, I suppose you have to be a little bit of a hothead to become the 4th most powerful man in the world.Similar Posts:

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Perhaps his network (CNBC) told him to take one for the team or maybe tough talk from a former congressman and the viral distribution of his December 2006 interview from his site (thestreet.com) led to his concillatory tone and broad message of “yes, I should have done better job.”  But this was in stark contrast to his media blitz this week.  So, was it just a good PR move?  Almost certainly.

Two things are not up for debate: (1) Cramer’s image and credibility will at least take a temporary hit, and (2) If that hit becomes more than temporary, CNBC will have no qualms with painting him as the network’s cancer that can be easily cut out.

Good luck, Jim.

- Matt

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