California Judge Sends High-Speed Rail Plan Careening Backward Into to the Station

Somebody make a "Nope nope nope nope nope!" GIFCalifornia’s High-Speed Rail
Authority (CHSRA) can’t even spin this one: A state judge in
Sacramento, in two separate rulings, has taken the business plans
for the state’s bullet train outside, tossed them in a rusty barrel
behind the courthouse, and set them on fire. As Reason has
repeatedly
noted across several years, the CHSRA’s runaway rail
plan was wildly different, more expensive, and simply
not in compliance
with what was approved by voters in a ballot
initiative in 2008. Today Judge Michael Kenny agreed with opponents
that the state could not push forward with its plans as they are.
From the
Associated Press
:

Judge Michael Kenny rejected a request from the California
High-Speed Rail Authority to sell $8 billion of the $10 billion in
bonds approved by voters in 2008, saying there was no evidence it
was “necessary and desirable” to start selling the bonds when a
committee of state officials met last March.

He said the committee was supposed to act as “the ultimate
`keeper of the checkbook'” for taxpayers, but instead relied on a
request from the high-speed rail authority to start selling bonds
as sufficient evidence to proceed.

In a separate lawsuit, Kenny ordered the rail authority to redo
its $68 billion funding plan before continuing construction, a
process that could take months or years. He had previously ruled
that the authority abused its discretion by approving a funding
plan that did not comply with the requirements of the law. The
judge said the state failed to identify “sources of funds that were
more than merely theoretically possible.”

Proposition 1A, which voters approved in 2008, required the rail
authority to specify the source of the funding for the first
operable segment of the high-speed rail line – a 300 mile stretch –
and have all the necessary environmental clearances in place. Kenny
had said the agency did not comply with either mandate in approving
the start of construction from Madera to Fresno, about 30
miles.

Technically and politically, the ruling doesn’t kill the plan,
but the blow is pretty devastating. The state does not have the
money to build a full 300-mile stretch of the $68 billion
boondoggle. Despite blinkered claims by progressive that
California’s economy is recovering, it is
wallowing
in huge amounts of debt, unfunded state pension
liabilities, and rapidly expanding health care costs. And there’s

little sign
of additional federal subsidies coming unless the
Democrats win the day in 2014 and take back the House.

Nevertheless, CHSRA is trying to act like they expected a judge
to order them to start the process over the whole time:

“Like all transformative projects, we understand that there will
be many challenges that will be addressed as we go forward in
building the nation’s first high-speed rail system,” authority
board Chairman Dan Richard said in a written statement.

Going backward instead is quite the challenge to your efforts to
go forward.

from Hit & Run http://reason.com/blog/2013/11/25/california-judge-sends-high-speed-rail-p
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6 Misconceptions About the Sandy Hook Massacre Debunked by Prosecutor’s Report

Today,
nearly a year after Adam Lanza murdered 20 children and six adults
at Sandy Hook Elementary School in Newtown, Connecticut, the
state’s attorney managing the investigation of the massacre, Steven
Sedensky, issued a report that
refutes or casts doubt on several theories about Lanza and his
horrifying crimes. A few highlights:

1. Did Lanza have a grudge against the
school?

“The shooter indicated that he loved the school and liked to go
there….As best as can be determined, the shooter had no prior
contact with anyone in the school that day. And, apart from having
attended the school as a child, he appears to have had no
continuing involvement with SHES….The evidence clearly shows that
the shooter planned his actions, including the taking of his own
life, but there is no clear indication why he did so, or why he
targeted Sandy Hook Elementary School.”

2. Did mental illness make him do it?

“The shooter had significant mental health issues that affected
his ability to live a normal life and to interact with others
[including social awkwardness and a lack of empathy that his mother
described as Asperger syndrome]….What contribution this made to
the shootings, if any, is unknown….The shooter’s mental status is
no defense to his conduct as the evidence shows he knew his conduct
to be against the law. He had the ability to control his behavior
to obtain the results he wanted, including his own death.”

3. Could he have been stopped if only people had paid
attention to warning signs?

“Those mental health professionals who saw him did not see
anything that would have predicted his future
behavior….[Investigators] have not discovered any evidence that
the shooter voiced or gave any indication to others that he
intended to commit such a crime…[In high school,] he was not
known to be a violent kid at all and never spoke of
violence….Despite a fascination with mass shootings and firearms,
he displayed no aggressive or threatening tendencies.”

4. Did obsessive playing of violent video games warp his
mind?”

“He played video games often, both solo at home and online. They
could be described as both violent and non-violent. One person
described the shooter as spending the majority of his time playing
non-violent video games all day, with his favorite at one point
being ‘Super Mario Brothers.’…The shooter liked to play a game
called ‘Dance Dance Revolution’ (DDR)….He regularly went to the
area of a theater that had a commercial version of the DDR game in
the lobby. In 2011 and up until a month before December 14, 2012,
the shooter went to the theater and played the game. He went most
every Friday through Sunday and played the game for four to ten
hours.”

5. What about drugs?

“No drugs were found in the shooter’s system….Reportedly the
shooter did not drink alcohol, take drugs, prescription or
otherwise, and hated the thought of doing any of those things.”

6. Could a better background check system for gun buyers
have stopped him?

“All of the firearms were legally purchased by the shooter’s
mother. Additionally, ammunition of the types found had been
purchased by the mother in the past, and there is no evidence that
the ammunition was purchased by anyone else, including the
shooter.”

from Hit & Run http://reason.com/blog/2013/11/25/6-misconceptions-about-the-sandy-hook-ma
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6 Misconceptions About the Sandy Hook Massacre Debunked by Prosecutor's Report

Today,
nearly a year after Adam Lanza murdered 20 children and six adults
at Sandy Hook Elementary School in Newtown, Connecticut, the
state’s attorney managing the investigation of the massacre, Steven
Sedensky, issued a report that
refutes or casts doubt on several theories about Lanza and his
horrifying crimes. A few highlights:

1. Did Lanza have a grudge against the
school?

“The shooter indicated that he loved the school and liked to go
there….As best as can be determined, the shooter had no prior
contact with anyone in the school that day. And, apart from having
attended the school as a child, he appears to have had no
continuing involvement with SHES….The evidence clearly shows that
the shooter planned his actions, including the taking of his own
life, but there is no clear indication why he did so, or why he
targeted Sandy Hook Elementary School.”

2. Did mental illness make him do it?

“The shooter had significant mental health issues that affected
his ability to live a normal life and to interact with others
[including social awkwardness and a lack of empathy that his mother
described as Asperger syndrome]….What contribution this made to
the shootings, if any, is unknown….The shooter’s mental status is
no defense to his conduct as the evidence shows he knew his conduct
to be against the law. He had the ability to control his behavior
to obtain the results he wanted, including his own death.”

3. Could he have been stopped if only people had paid
attention to warning signs?

“Those mental health professionals who saw him did not see
anything that would have predicted his future
behavior….[Investigators] have not discovered any evidence that
the shooter voiced or gave any indication to others that he
intended to commit such a crime…[In high school,] he was not
known to be a violent kid at all and never spoke of
violence….Despite a fascination with mass shootings and firearms,
he displayed no aggressive or threatening tendencies.”

4. Did obsessive playing of violent video games warp his
mind?”

“He played video games often, both solo at home and online. They
could be described as both violent and non-violent. One person
described the shooter as spending the majority of his time playing
non-violent video games all day, with his favorite at one point
being ‘Super Mario Brothers.’…The shooter liked to play a game
called ‘Dance Dance Revolution’ (DDR)….He regularly went to the
area of a theater that had a commercial version of the DDR game in
the lobby. In 2011 and up until a month before December 14, 2012,
the shooter went to the theater and played the game. He went most
every Friday through Sunday and played the game for four to ten
hours.”

5. What about drugs?

“No drugs were found in the shooter’s system….Reportedly the
shooter did not drink alcohol, take drugs, prescription or
otherwise, and hated the thought of doing any of those things.”

6. Could a better background check system for gun buyers
have stopped him?

“All of the firearms were legally purchased by the shooter’s
mother. Additionally, ammunition of the types found had been
purchased by the mother in the past, and there is no evidence that
the ammunition was purchased by anyone else, including the
shooter.”

from Hit & Run http://reason.com/blog/2013/11/25/6-misconceptions-about-the-sandy-hook-ma
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Fact Or Fiction: The Hunger Games

One is a dystopian society of haves and have-nots (favored or disfavored) controlled from The Capitol by a totalitarian ‘big’ government and entertained by reality TV shows… the other is a fictional movie entitled “The Hunger Games”…

 

 

(h/t Sunday Funnies at The Burning Platform blog)


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/cKv63XC2JqM/story01.htm Tyler Durden

70% Of Brooklyn Home Sales Are To Hedge Funds, Investors And International Buyers

It has been over a year since we listed the three “pillars” of the latest dead cat bounce in the housing market. Recall: “the REO-to-Rental subsidized investment program, which led to an epic surge in demand for multi-family housing, i.e., rental, units was, together with offshore investors parking their cash in the US for safekeeping (taking advantage of the NAR’s anti-money laundering check exemptions) and the big banks Foreclosure Stuffing, the key reason for the recent, stimulus-fueled and quite transitory bounce in house prices in assorted markets.” In other words, the latest artificial move higher in the housing market had nothing to do with an “improving” economy (and implicitly, everything to do with the epic injection of liquidity by all global central banks and chinese loan creation). Today we got confirmation that once again we were correct: to wit: “Douglas Elliman rep: 70% of Brooklyn home sales going to hedge funds, investors and international buyers.”

In other words, just over two thirds of the “bounce” in the Brooklyn housing market has – much to the chagrin of hipsters everywhere – been due to the REO-to-Rent program and various other initiatives to make Wall Street America’s biggest landlord, as well as foreigners parking hot cash in the US, for money laundering reasons or otherwise.

From the NYT:

Standing in the dining room of the early 1900s-era brick rowhouse, deep in the Bushwick section of Brooklyn with not a frozen yogurt shop or Starbucks to be found, Alan Dixon, an investor from Australia, struggled to tally the houses he had bought in the area over the last year.

 

“What, 70? 72?” he asked, raising his eyebrows in question at a group of investors, contractors and designers standing nearby. A dozen construction workers scurried around, fastening plasterboard to walls and laying tile on floors, readying the four-bedroom house that the group purchased in June for $635,000 for leasing in less than two weeks’ time for as much as $5,490 a month.

 

Finally, someone locates the number on a piece of paper — 70, later corrected to 71. “That sounds right. Something like that,” Mr. Dixon said with a laugh, tugging on the cuff of the pink shirt he wore under his gray suit jacket.

 

It’s easy to understand why it might be difficult for Mr. Dixon to keep track. In just two years, the investment fund he oversees for Australian investors and retirees has purchased more than 538 homes, townhouses and brownstones from Jersey City to Queens and Brooklyn.

 

Mr. Dixon and his investments in New York area residential real estate are a microcosm of a much bigger trend sweeping the country.

 

A handful of large private equity and real estate investment firms, including the Blackstone Group and Colony Capital, have bought billions of dollars’ worth of single-family homes in some of the areas most affected by the housing collapse. The goal for these Wall Street investors is not to buy and flip the properties for a quick profit à la real estate bubble of the early 2000s. Instead, they are hunting for steady, dividend-like returns they believe can be earned by renting out the homes.

 

 

“I’d say by the spring, maybe 70 percent of the sales we were seeing were to hedge funds, investors and others taking advantage of what was happening in Brooklyn,” said Stephanie O’Brien, a real estate broker with Douglas Elliman in Brooklyn. “Only about 30 percent were actual end users or first-time buyers.”

 

The higher prices have changed the character and makeup of neighborhoods, often pushing more lower- and middle-income families farther east in the borough. “What’s happening is good, because it increases real estate values, but on the other hand people who have been living in these neighborhoods and hoping to one day buy or rent a larger apartment are getting priced out,” said Ron Schweiger, the Brooklyn borough historian.

So with 70% of “buyers” accounted for by the Wall Street investment and the international money laundering community, the other 30% or so of the appreciation has been banks continuing to keep millions of shadow inventory units off the market, creating an artificial subsidy and pushing prices higher due to a fake housing shortage.

Oh, and no so-called recovery.

h/t fonzanoon


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/9Ixhzc5fcMQ/story01.htm Tyler Durden

Colorado Obamacare Enrollment Even Worse Than Worst Case Projections, Anti-Smoking Groups Oppose Obamacare Tobacco Penalty, Texas Man Still in Prison Despite Having Conviction Overturned in 1980: P.M. Links

  • smokingEnrollment through Colorado’s insurance exchange
    is
    barely
    half the projected worst case scenario, which officials
    say will make it difficult for the state “to deliver on promises
    made to Colorado citizens” and jeopardize the program’s revenue
    stream. The American Lung Association and the American Cancer
    Society, both supporters of the Affordable Care Act, nevertheless

    oppose
    Obamacare’s tobacco surcharge, arguing it will push
    smokers out of insurance policies and make it even more difficult
    for them to quit.
  • National Security Advisor Susan Rice is in
    Afghanistan
    , where she is
    expected
    to meet with Hamid Karzai to discuss the post-2014
    security pact between the two countries.
  • The U.S. government
    reportedly
    turned a larger profit on student loans,$41.3
    billion, than all but two companies worldwide, Exxon Mobil and
    Apple.
  • State police in New York have
    acquired
    32 SUVs so that troopers can more easily peer into
    cars to catch drivers who are texting.
  • A Texas man has been in
    prison
    for more than 30 years despite having his conviction
    overturned and a new trial ordered in 1980.
  • A couple in the Florida Keys were
    mistakenly
    shipped 11 pounds of marijuana to a rental property
    in Louisiana. They turned the marijuana in to local police in
    Florida, who say the couple could’ve been arrested had cops
    discovered the marijuana while the couple was unknowingly driving
    it back to Florida.
  • Microsoft
    acknowledged
    a “very small number” of customers purchased Xbox
    Ones with serious disc reading issues. No blue screens
    reported.

Follow Reason and Reason 24/7 on
Twitter, and like us on Facebook.
  You
can also get the top stories mailed to
you—
sign
up here.
 

Have a news tip? Send it to us!

from Hit & Run http://reason.com/blog/2013/11/25/colorado-obamacare-enrollment-even-worst
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Ira Stoll on the Early Obamacare Advocate Who Is Missing as the Program Flounders

Peter Orszag was the director of the White House
Office of Management and Budget for the first year and a half of
the Obama administration. Other than President Obama himself, he’s
the person most identified with the argument that health reform was
necessary to save the government money. Ira Stoll wants to know why
Orszag has gone so quiet since the disastrous launch of
Healthcare.gov and Obamacare.

View this article.

from Hit & Run http://reason.com/blog/2013/11/25/ira-stoll-on-the-early-obamacare-advocat
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Why Are Republicans, Israeli Officials Upset About the Iran Nuke Deal?

Republicans are not happy about the
deal relating to Iran’s nuclear program that was announced over the
weekend. The deal includes,
among other things
, Iran halting uranium enrichment above 5
percent and neutralizing “near-20% enriched uranium”.

House Majority Leader
Eric Cantor
(R-Va.) has expressed concern about the enrichment
allowed in the deal, saying “Loosening sanctions and recognizing
Iran’s enrichment program is a mistake, and will not stop Iran’s
march toward nuclear capability.”

Sen.
Marco Rubio
(R-Fl.) has a statement on his website that reads
in part:

By allowing the Iranian regime to retain a sizable nuclear
infrastructure, this agreement makes a nuclear Iran more likely.
There is now an even more urgent need for Congress to increase
sanctions until Iran completely abandons its enrichment and
reprocessing capabilities.

Sen. Ted Cruz
(R-Texas) says that he agrees with Israeli President Benjamin
Netanyahu, who called the deal “a historic mistake.” A statement
from Sen. Cruz begins:

According to the interim agreement regarding Iran’s nuclear
program that was reached this weekend in Geneva, not one centrifuge
will be destroyed. Not one pound of enriched uranium will leave
Iran.

So, what is all this fuss about uranium enrichment, and why does
it matter?

Less than one percent of natural uranium is uranium-235, the
isotope needed for nuclear power and nuclear weapons. Enriched
uranium is uranium that has had the percentage of uranium-235
increased, which can be done by using centrifuges.

Low-enriched uranium (3.5
percent to 5 percent
) can be used for nuclear power. In order
to develop a nuclear weapon highly enriched uranium (about
90 percent
) is needed. With this in mind, it initially seems
that the requirements that Iran halt enrichment at 5 percent and
dilute or convert uranium enriched at 20 percent greatly reduces
the risk of Iran obtaining a nuclear weapon.

However, the deal only requires Iran to not install any new
centrifuges, not have them destroyed. This means that Iran could
renege on the deal and work towards a so-called “nuclear breakout.”
According to
David Albright
, president of the U.S. Institute for Science and
International Security, once the enrichment conditions of the deal
are met “the breakout time – how long it would take Iran to produce
sufficient highly-enriched uranium for one atomic bomb – would
lengthen from at least 1-1.6 months to at least 1.9-2.2 months if
the Iranians used all their installed centrifuges.”

The New York Times has a good graphic illustrating the
deal and its impact on uranium enrichment, which can be seen

here

The fact that Iran could still develop a nuclear weapon through
aggressive uranium enrichment once the new deal is implemented is
what has Republicans, not to mention Israeli officials, concerned.
An unnamed official from Netanyahu’s office summarized the concerns

as follows
, “The agreement makes it possible for Iran to
continue enriching uranium, permits Iran to keep centrifuges that
would allow it to create fissile material for nuclear
weapons.” 

Yesterday, Iranian President
Hassan Rouhani
said that his country would never seek a nuclear
weapon.

Netanyahu and some Republicans may not be happy with the deal,
which has not eliminated the possibility of Iran developing a
nuclear weapon. That said, the diplomats involved in the deal
deserve some praise for managing to come up with any deal at all
given the far from ideal relationship between Iran and the West,
particularly the U.S. 

It should not be surprising that Netanyahu isn’t a fan of the
recent deal. It is very unlikely that there are any conditions
under which Israel and Iran would realistically be able to meet to
discuss Iran’s nuclear program, especially given that
Netanyahu has
said that Israel is willing to “act alone” to
ensure Iran does not develop a nuclear weapon and has called
President Rouhani a “wolf in sheep’s clothing.”

That Republicans are critics of the deal should not be a
surprise, there is a Democrat in the White House. As
Fred Kaplan
has rightly pointed out, “Had George W. Bush
negotiated this deal, Republicans would be hailing his diplomatic
prowess, and rightly so.”

from Hit & Run http://reason.com/blog/2013/11/25/why-are-republicans-israeli-officials-up
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Late-Day Let-Down Spoils NASDAQ Party As Bonds & Bullion Bid

Energized by a lower crude oil price – and collapsing JPY – equity markets hit their highs shortly after 8pmET on Sunday night, trod water thorugh the Asian and European markets and started more aggressive selling once US cash markets opened. Coincidentally (or not) when Obama started speaking around 1445ET, US equities took a dramatic dive – catching down to an already weaker signaling VIX rally. EURJPY stayed in sync through all of this priming ignition pumps right into the close as NASDAQ 4,000 close was desperately needed (but the dot-com darlings were all hit). Gold and Silver's early monkey-hammering was met with buyers which lifted then up 0.5% and 0.8% respectively on the day (and 2% off their lows). WTI crude recovered more than half of its losses (-0.6% on the day) but Brent not so much as the spread broke to new 8 month highs. VIX closed higher and Treasury yields trended lower all day from the overnight open to close practically unchanged as the USD lost half its early gains to end +0.25%.

 

Unclear what the catalyst for the mid-afternoon dump in stocks was – pre-emptive month-end rebalancing? Obama? something in precious metals?

 

 

Commodities early smackdown saw a number of bid surges up during the day around the US open, EU close, and before the equit market began to roll over…

 

Don't get too excited about the Iran peace premium…

 

Stocks tracked EURJPY once again…

 

but VIX diverged…

 

 

Today's move in context…

 

Charts: Bloomberg

Bonus Chart: Don't tell anyone but the last 3 weeks have seen gas prices in the US rise at the fastest pace in 5 months…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/PFNO5a-yr74/story01.htm Tyler Durden