"Heck of a Job, Johnny Boy!"

There were some unintentionally hilarious quotes by our NC state leaders about Gov. Palin in the print-version of The Charlotte Observer this morning:

Rep. Sue Myrick (Rep): "Beside every good man is a great woman --- brilliant choice!"

Charlotte mayor Pat McCrory (Rep): "I think Gov. Sarah Palin, a former mayor with a background of cleaning up state government, is a great choice for vice president."

Rep G.K. Butterfield (Dem): "I can't even pronounce her last name."

Rep Mel Watt (Dem): "I don't know what to make of it. I never heard of her before today."

There's so much daylight between the Republicans' "Most mavericky, brilliant choice EVER!" and the Democrats' "Sarah, Who?" Are they even talking about the same person?

This selection is about as cynically political (no surprise there) and irresponsible a choice that the oldest-ever-presidential candidate could have made. It will backfire on him. While tactically this announcement succeeded in stepping all over Obama's after-convention victory lap, in the long run it's a strategic blunder with two important groups of voters. The Hillary Clinton-like, moderate women will not move to her (in truth, Palin scares the wits out them.); and Blue Collar men will not vote for a hockey-mom Governor, because in the end she'll remind them too much of their wives.

What makes McCain's choice so clearly frightening to me is when I view it in context of the other stories of the day -- the Gustav hurricane evacuations in the Gulf States and Friday's anniversary of the Katrina's devastation of New Orleans. We all know what happened when Bush appointed an untested, inexperienced Michael Brown to head FEMA . This vice presidential appointment of McCain's has the potential to be disastrous to much more than just his own campaign.

United Way of Carolinas Needs to be Flattened

One way or another, our local United Way chapter will be flattened. If it does not voluntarily streamline its bloated infrastructure, its donations will be cut off at the knees. United Way's donors will elect to not give at all, give less or bypass it altogether. No one wants to read about a charity broker's inflated executive salaries and its Board of Directors squabbles when there are so many good causes to give to directly and many needy people relying on these donations.

I don't think that firing the executive that the Board elected to compensate excessively is going to do the job. And, I do think this is this issue is larger than just our Carolinas Chapter (remember in 1992, William Aramony, CEO of the national organization, and in 2004, Oral Suer, CEO of the Washington, D.C. chapter, were convicted of misuse of donations?)

So will the United Way flatten itself or will donors have to do it for them?

Hillary Clinton Saved from Humiliation

Per the Charlotte Observer's The Ballot, "Obama, with help from Clinton, is the nominee" That's rich! And so many media outlets are reporting that very thing today.

But, really, if the full floor vote had proceeded and Hillary maintained the same margin of delegates as when voting was suspended, it would have been humiliating! For Clintons and the media!

Because you see, Clinton was sitting on roughly 7.7% of the delegates (341.5 delegates to Obama's 1549.5) when the floor count was halted. There was still around 57% of the Democratic delegation left to vote. Does it now make sense, why the Clintons were so gracious in their speeches? And Hillary declaring unanimous support for Obama? Their numbers were stark (a long way from that 50/50 democratic split) and her influence in the Democratic Party eroded. But the turn-around display of unity did make for good theatre.

I really, however, wish the full vote had been taken. We would then had official numbers for every state (North Carolina was up next) and forever squashed the story of the Hillary's legendary PUMA influence. Besides, I thought Hillary was suppose to be about counting every vote. Well, only when it benefits her (smirk!).

Update: So, I'm a little bitter that North Carolina didn't get to do their roll call vote. Found out that State Democratic Chairman Jerry Meek, Gov. Mike Easley and U.S. Rep. G.K. Butterfield would have announced for the Tar Heels. Woulda, coulda, shoulda.

Refinancing Blues for the Banks

Yesterday, I wrote about Wachovia's recent asset sales and lest we forget why it desparately needs capital, Bloomberg reminds us in "Merrill, Wachovia Hit With Record Refinancing Bill." Immobilienblasen (one of my favorite European economic bloggers) writes that "Not Only Homeowners are Having Refinancing Problems" and goes on to state:

As many banks compete for funds to pay off their borrowings, or sell assets to raise cash, their actions could exacerbate strains in financial markets. Banks that turn to shorter-term loans will have to renew their borrowings more frequently, increasing the risk that they won't be able to get money when they need it.

The Wall Street Journal notes in "New Credit Hurdle Looms for Banks" that Wachovia has indicated that said "that 55% of the bank's balance sheet is funded by core deposits and that the bank has the ability to 'seamlessly handle the refinancing of short-term debt maturities as a result of our prudent liquidity planning.'"

We know that Wachovia is selling assets and raising cash, and now indicating it will use customer deposits to shore up its short-term, credit obligations. Does that sound like prudent liquidity planning?

NC Battleground for Gubernatorial & US Senate and Presidential Races

It looks like the Tar Heel State is shaping up to be a battleground for the Gubernatorial, US Senate and Presidential elections.

The latest PPH poll for the U.S. Senate has Kay Hagan (42%) leading Elizabeth Dole (39%). With this PPH poll, "Kay Hagan has taken a narrow lead in North Carolina's Senate race after trailing by 14 points just two months ago."

On the presidential front, Campaign Diaries blogs that McCain only leads 45% to 42% in the August 22 Insider Advantage's first North Carolina poll.

And finally, in Politico's "Race Static in NC ," The Scorecard notes that the governor's race is within the margin of error: Bev Purdue (43%) and Charlotte mayor Pat McCrory (41%).

Wachovia's Another Day at the Office

I read in today's Charlotte Observer that "Wachovia mulling insurance sale?" The article goes on to say:

"Sources said speculation has mounted inside the unit since chief executive Bob Steel said last month that the Charlotte bank would consider selling unspecified assets. Weighed down by rising loan losses, Wachovia is looking to generate and preserve capital after reporting a $9.1 billion second-quarter loss."

And then, there was this from the Philadelphia Business Journal, "American Realty buys 39 Wachovia branches for $53M." It seems that American Realty Capital has completed its purchase of 39 of the roughly 100 Wachovia Corp. bank branches it plans to buy this year.

This is good news for Wachovia -- good because they need capital FAST! I suspect we'll be seeing more Wachovia "stuff" for sale.

Update: Just found this snarky Dealbreaker write-up: "Attention Swag Lovers: Put Some Money In Wachovia's Pocket" that Wachovia's selling discounted golf tourney stuff too!

Too Big to Bail

I don't have much time to post today, but I found this gem over at Mish's Global Economic Trend Analysis, "Ten Financial Entities on the Brink." As expected, Wachovia is on the list; Bank of America is not.

Mull this one over the weekend and if you disagree, especially if you disagree, I'd love to hear it.

Searching for Michael Phelps

Earlier, I commented on the media's coverage of Phelps and some obvious gaps in his biography. It seems the (internet) media is doing some digging now. See Huffington Post's "Michael Phelps' Girlfriend: He Addresses Rumors, Beard Says "Ew" No."

This is such a curious headline. Is there is an intentional yet, hidden message here? It would be just like those crazy bloggers to word a standard, girlfriend-denial-story in such a mischievously, tough-in-cheek way.

Edwards Scandal Fallout and Democratic Delegate Disarray?

After reading the News & Observer's, "Edwards' affair has some delegates feeling betrayed, " I wonder about how these delegates will vote in the roll call at the Democratic National Convention.

Will the PUMA (Party Unite My Ass) mischief-makers pounce on this discontent and try to sway these delegates to Hillary Clinton? I worry that the media is setting the table for a potential Hillary upset at the convention. Nah, I'm being too paranoid.

Is the Media Overdoing Its Coverage of Amphibian Athlete Phelps?

Blogger "MZTexas" at Huffington Post had a less than glowing opinion of the coverage of America's Eight Time Gold Medalist, Michael Phelps. He comments:

"Phelps is a great athlete and I'm really proud of his accomplishments. I know that NBC has made him their "focus" story of this Olympics, but I'm really getting tired of hearing what and how much he eats every day. I'm tired of hearing how Phelps won another gold in a relay . . . the TEAMS win the relay,not Phelps. In fact, if the team had relied on Phelps leg of the 4 x 100 freestyle, they would have gotten the silver instead of the gold. He started them off in second and that's where they stayed until Lezak kicked some serious butt and swam the fastest leg ever recorded in that race.

Again, Phelps is a great athlete and I'm very proud of his accomplishments, but please, please, please, no more digitalized, computer graphic laden diagrams of Phelps' body telling us why he's such a good swimmer. And no more disgusting descriptions of the total amount of food he shoves down his face every day. Oh,
and tell him to pull up that speed suit . . . we're getting to see way more of Michael Phelps than most of us want to see."

This opinion is sardonically amusing, but it speaks to the larger issue of the media's presentation of Phelps. Is the constant coverage of Phelps sucking all the oxygen out of the U.S. Team's Olympic experience?

Do you think the media's done a good job profiling him? Their portrait is of an amphibious machine -- eating, swimming, sleeping. I know I wished I knew more about him -- his childhood (what of his father?), hobbies, special friends? Really, what did he major in at the University of Michigan?

Or is MZTexas the skunk at the picnic? And again, for the record, Phelps is a great athlete (the most winningest Olympian ever!) and we're all very proud. Of all our U.S. athletes.

Who Would God Vote For?

CNN reports that Obama and McCain both love (the Christian) God a LOT and that they've both sinned (Well, we all have.) :

"Last night at Saddleback Civil Forum on Presidency was the first time both candidates appeared on stage since they became the presumptive presidential nominees for their parties. Watch the complete forum: Part 1 », Part 2 », Part 3 », Part 4 ».

The event was held at Saddleback Church, a mega-church in southern
California. The candidates were interviewed by Warren, pastor at the church and
author of the best-selling book "The Purpose-Driven Life."

"Faith forums," however well-meaning, are entirely out of place in elections. Only Americans would ask their presidential candidates to spend two hours discussing religion and "faith issues." The President's job is not to spiritually guide us (thank God for that!) but, as the head of the executive branch of the federal government, the President's role is to enforce national law as given in the Constitution and written by Congress.

So if we agree that we're not electing a spiritual leader, then these "Wearing-Religion-on-One's Sleeve" forums are really about proving to as many people as possible who is most spiritual, with public emoting and confessing thrown in for good measure. Politicians who conveniently misrepresent their policy positions (entirely provable and publicly on-the-record) are suddenly, completely honest and forthright about their personal, unverifiable (to the public) faith in God. Not only are these events inappropriate, they're so politically self-serving.

Did you catch how quickly McCain pivoted from his greatest moral failing (his first marriage) to 9/11 and a "cause greater that oneself?" And Obama's answer to the greatest moral failing question (he, and the country --all of us--we're too selfishness) reminded me of a clever job interview response. What a spectacle.

8/18/08 Update: Imagine my (non)surprise when I read in the New York Times, "Despite Assurances, McCain Wasn’t in a ‘Cone of Silence.’ Hah, ha, ha!! And I thought I couldn't get any more cynical about this thing?"

Wachovia News - Subsidiary Bankruptcy and CFO Search Continues

Per Reuters, "Wachovia's BluePoint Re files for bankruptcy in NY." See my post yesterday, "Wachovia's Fire No Longer Just in the Kitchen."

So far, this doesn't have much of an impact on their stock price which is up big from yesterday. Something to keep an eye on.

Also of interest, Wachovia still looking for a CFO. The Observer says,

"Possible CFO candidates cited by analysts include Chris Marshall, who previously held executive posts at Bank of America Corp. and Fifth Third Bancorp, and William Demchak, a vice chairman of Pittsburgh-based PNC Financial Services Group Inc. Marshall and PNC have declined comment. Analysts also say Steel could turn to former colleagues at investment bank Goldman Sachs Group Inc. or at the U.S. Treasury Department."

In placing these two stories together, I'm struck by just how challenging the new CFO's job is going to be.

Wachovia's Fire No Longer Just in the Kitchen

While the focus has been primarily on Wachovia's residential mortgage problems, notably with their Pick-A-Pay (PAP), others are now looking at other, potentially more damaging issues at the Queen City's second largest bank.

See today's Marketwatch's "Wachovia's Commercial Loans Stir Worries," and Mish's Global Economic Trend Analysis' latest posting, "Can Wachovia Do Anything Right?"

Presidential Election Polls - North Carolina Edition

Today, Pollster.com is showing North Carolina as a "McCain/Obama Toss-up State" in its national presidential match-up. Currently, the North Carolina poll aggregate at Pollster has McCain - 45.6%, Obama - 43.8% and Barr - 2.5%.

The good news (for Obama supporters) is that national electoral map currently shows a comfortable lead for Democrats (284) vs. Republicans (154). For another national electoral projection, see FiveThirtyEight.com.

The media loves a close race and is working hard to project this as one. But remember, when the teevee tells you this election is so, so close, they're referring to the popular vote count, not the electoral vote count. We all know which of these counts is actually used to elect presidents.

8/13/08 Update: Pollster has updated their North Carolina numbers. McCain now leads in the state by 48.2% to Obama's 44.6%. North Carolina still listed as a Toss Up State.

Price Publicizing His Wachovia Short Moves

Per the Wall Street Journal, "Price Says He’s Shorting Citi, Wachovia." The Journal goes on to state:

"Michael F. Price made his name and billions as a value investor, snapping up besieged stocks. Yet even he thinks that the pain that banks are feeling is far from over. MFP Investors, the investment vehicle that he runs, is shorting Citigroup and Wachovia, Mr. Price told Bloomberg News. Such an investment is a bet that the stocks of both firms will continue to fall.

He is far from alone in gambling that banks will continue to suffer.

His bet against Citi happened when the banking giant’s stock traded in the mid-$20s. Meanwhile, he actually covered his Wachovia short sale during Wachovia’s 110 percent run-up last month and last week, but resumed his short selling this week."

It's a bit self-serving to publicize these moves, no? And why is the Journal assisting in this self-serving endeavor? Is this allowed by the SEC? What if he was shorting Bank of America?

Anyway, not good market news today for Wachovia (stock price down over 12%) which had been moving up until now.

Peak Golf Coming to Charlotte?

On the subject of the recession's pinch on the high-end consumer, the Washington Post writes about golf club developments in the DC area in "Golf Course Communities' Double Bogey: Demand for Country Club Lifestyle Dries Up in Overbuilt Washington Suburbs."

Calculated Risk blog analyzes this development in We're All Not Golfers Now.

To see the long list of Charlotte Area Golf Courses, go to CharlotteTeeTimes. Gee, could this play out in the Queen City? There is anecdotal evidence that, yes, some of the newer clubs in Charlotte's exurbs are suffering for members.

Local Crazy Threatens to Kill Obama

Per the Observer, An Indian Trail accountant is in jail, charged with threatening to kill senator and Democratic presidential candidate Barack Obama.

"Secret Service agents say Blanchard told two others eating at the restaurant on July 15 he planned to buy a handgun from Hyatt's Gunshop on Wilkinson Boulevard. He also planned to buy a rifle and a laser scope, saying "I’m worth $50 million. Obama and his wife are never going to make it to the White House. He needs to be taken out... that man will never know what hit him... I just may do that, I’ve got the money and the clout."

I'm curious as to how and to whom this man was reported to Secret Service. But glad these concerned citizens did so.

-charlottemom

John Edwards We Hardly Knew You

Well, well, ABC News says that John Edwards did, in fact, admit to an extramarital affair (update: He continues to deny the baby's paternity) This story has been kicking around for quite a while. I posted here that this was percolating again.

There are more questions than answers: The timing? Who is Reille Hunter (aka Lisa Druck)? How did a son of a mill worker from a small town in North Carolina hook up with a big-time party-girl-gone-wild? What does Elizabeth say? We'll see how this develops.

In the meantime, learn some fun extra credit scandal factoids here:

From Gawker: Exploding the Edwards Mistress Scandal; Edwards Mistress As Explained In American Psycho

From FishbowlLA: Edwards' Videographer Reille Hunter, aka Lisa Druck, Dated Jay McInerney
Some of the about posts are not new, but I'll bet the teevee still won't mention them.

UPDATE: Why admit the affair, but deny the paternity of the baby? Check out Andrew Sullivan's theory.

Representing North Carolina @ 2008 Olympics

8.8.08 -- That's the date, don't be late. After all the build-up the 2008 Olympics officially kicks off. Of Tar Heel State interest:

Roster of North Carolinian Olympian athletes, courtesy of WRAL;

Bank of America is hosting U.S. Family Center, per Charlotte Observer.

USA! USA!

Charlotte Real Estate Is (Not) Immune to Housing Downturn?

Per today's Charlotte Business Journal, "The lender that filed for foreclosure on The Park condo project in uptown Charlotte was the sole and winning bidder for the building in an auction Thursday, offering $17.9 million."

Pete Verna’s development company, dubbed 222 South Caldwell Street Ltd. Partnership, owes BB Syndication more than $27 million on The Park’s $30.7 million construction loan.

Hmmm...The lender's $17.9 million bid was the "winner" on its $27 million defaulted loan. I'd call that a loss.

But someone tell these guys at CharlotteBetweentheLines. The way this little consortium of real estate developers and investors, consultants and realtors see it "building permits are down to lows not seen in years...while some view these numbers as further proof of impending doom, savvy observers understand these are signs of recovery and opportunity....Charlotte is in the middle of a normal real estate cycle." That housing downturn stuff is crazy talk!

The homepage's "Fresh Perspectives" column concludes with "Opportunistic homebuyers should heed this as a signal that now is the time to buy."

-charlottemom

Do Wachovia and Bank of America Hate the Students?

Were you counting on a Wachovia student loan for this year's UNC - Chapel Hill undergraduate tuition? Today's Philadelphia Business Journal says, " Wachovia Corp. stopped accepting applications for private, undergraduate student loans at the close of business Wednesday."

Also per the Business Journal, "In April, rival Bank of America Corp. said it would discontinue selling private student loans. At the time, a BofA spokesperson said the bank wanted to focus on government-backed loans to provide a more consistent experience for customers." [And to focus on their FUBAR "acquisition" of Countrywide.]

-charlottemom

Good for Wachovia? Right?

Fortune writes that Elizabeth "Betsy" Duke, the newest addition to the Federal Reserve's chief policymaking group, is a lifelong commercial banker who many Fed watchers hope can balance out a board riven by inflation pressures, a weakened Wall Street, and a slowing economy.

She is a former Wachovia executive.

- charlottemom

Day Three - Observer Readers Held Hostage to Coverage of Extreme Home Maker

Another day, another Charlotte Observer front page color spread on Extreme Home Makeover. Is there no other news in the Queen City?

But the celebration of yet another McMansion built goes on, even in the face of at least 20 people treated on the scene by Medic for heat-related problems, including one who was taken to the hospital.

-charlottemom

Extreme Home Makeover - Charlotte Super-sized Edition

Did you see today's write-up in the Charlotte Observer on the new home makeover? It seems that the King family traded in their 1,900 square feet, one-story, brick and metal siding home with mold problems for a 5,100 square feet, two-story dream house that barely fits on their Sudbury Road lot.

One Observer emailer asks if the home is too big and references how "its tall roof soars over the Windsor Park neighborhood, where modest one-story brick homes are the standard."

This show has become the celebration of the McMansion. Why not do an extremely environmentally-friendly, medium-sized home? And couldn't they, for once, build a house to fit the scale of the neighborhood?

charlottemom