Exxon's profits are not big enough

File this under ironic.

At he very time we are all struggling trying out how to pay for gas, The Supreme court just cut Exxon's damages from the Valdez spill one tenth of what the jury decided.

Justice David Souter wrote for the court that punitive damages may not exceed what the company already paid to compensate victims for economic losses, about $500 million compensation. The Exxon Valdez case involves reckless action that was "profitless" for the company and that has already resulted in substantial recovery for substantial injury, Souter wrote. A penalty should be "reasonably predictable" in its severity, he added.
Exxon asked the high court to reject the punitive damages judgment, saying it already has spent $3.4 billion in response to the accident that fouled 1,200 miles of Alaska coastline. A jury decided Exxon should pay $5 billion in punitive damages.
A federal appeals court cut that verdict in half in 1994. This come at the same time Exxon has generated the largest profits of any company in history. The punitive damage award is extremely large, but in fairness, it is less than half of the last quarters profit.

First-quarter profits at Exxon Mobil Corp. were $10.9 billion. The company's 2007 profit was $40.6 billion.

I'm glad to see our government is still handing out favors for big oil.

Stonehenge Mystery

Stonehenge, the most famous of all of the remaining neolithic stone circles was built over a five hundred year period. Walking around the sarsen stones it is easy to understand why this place still amazes and generates such mystery.

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Summer

http://urbaninsuranceagency.com/blog.php?content=displayPost&id=21

A Fair Tax Code

Rich people pay the lions share of the taxes in the US. They don't just pay the most money, they pay the largest percentage of their income.

Then again they have a lot more money.

This could then lead to the question, Which is a Better Measure of financial Inequality: Wealth or Income?
In fact the real difference in wealth is not seen by comparing the yearly income of the to top 10% and the bottom 10%- its when you compare the "NET WORTH" of those two groups. The net worth difference is more than `10 times as great as the income difference.The bottom 60% of households possess only 4% of the nation's wealth while it earns 26.8% of all income. This means that the rich pay a larger percentage of their income then the bottom half, but they pay a smaller percentage of their wealth. It is this reality that in large part is responsible for why the "Rich keep getting richer"

If we put aside income and focus on the distribution of wealth,the research points to two quite different views of the amount of inequality in American society.
"Ultimately, we are interested in the question of relative standards of living and economic well-being. We need to examine trends in the distribution of wealth, which, more fundamentally than earnings or income, represents a measure of the ability of households to consume."
Alan Greenspan, Former chairman of the Federal Reserve Bank

It it easy to see why any question regarding the "Fairness" of any tax plan, is colored by the discussion of Wealth vs Income. Based on income, it is easy to make the point that the wealthiest Americans don't just pay the most money,they pay the largest percentage of their income, often while using the least amount of government services. Switch the discussion to talk about net wealth and the lower half see a system that favors the rich and one in which they are forever "Loosing ground". As property values increase, those who own property see their net wealth rise, where as those that do not, see the dream of home ownership get pulled further out of their reach.

From my own perspective, we have seen the foolishness of communism. The Soviet Union proved that if you try to eliminate the rich, you will not be able to distribute their wealth among the poor to make everyone "Middle-class", you just make everyone poor. Take away the incentive to achieve a higher standard of living, and you kill the goose that lays the golden eggs. The fact is, we need rich people.

For a country to prosper financially it needs the following:

1. A stable government.
2. A population that believes they have a vested interest in the country's success.
3. Insurance companies to protect both commercial as well as personal assets.
4. An educated work force.
5. Leaders that realize that it's the private sector that creates wealth and
Policies that provide conditions for that private sector to thrive.
6. Intellectual Property rights must be honored.
7. Taxes have to be enough to pay for the expectations of the citizens including
the infrastructure to be competitive in the global market- but low enough the
the majority of money is the control of the private sector.

Sure it helps if the country has a large amount of national resources, however Israel has created a standard of living dramatically higher than Saudi Arabia, and did so with out oil.
In fact there are many other conditions that can help or hurt the chances of any country's economy, but the seven above are critical.

So we need a tax system that levels the playing field enough to provide for a basic standard so even the poorest can maintain a reasonable standard of living, and feel vested in America; yet keeps enough wealth in the hands of the wealthy so as to provide conditions for the private sector to thrive and grow.
The truth is it can be very difficult to get that balance right.

Larry Lubell
www.UrbanInsuranceAgency.com

UrbanBlog: The price of gas in 2008

UrbanBlog: The price of gas in 2008
http://www.uspirg.org/action/transportation/petition?id4=ES

The price of gas in 2008

Let's do the Math!

The five largest U.S. oil companies earned $36 billion during the first three months of this year. This is after last year's figures set an all-time record.
Even if we assume that the next months will see the big 5 earning somewhat lower profits, they should still break $120 Billion dollars profit in 2008.

"Americans are furious about what's going on," declared Sen. Byron Dorgan, D-N.D., and want Congress to do something about oil company profits and "an orgy of speculation" on oil markets.

The cost of energy not only impacts consumers when they fill their tanks, but is a driving force in the price of everything we buy. Congress is getting the message that Americans are "Mad as Hell" and expect their government to do something.In response to the growing rage and falling economy, the Democrats on the hill have pushed legislation to tax the "Windfall profits of the oil industry." The law would boost taxes paid by the large oil companies, or allow them to instead invest the money in new clean energy development.

Republican leader Mitch McConnell of Kentucky has acknowledged that Americans are hurting from the high energy costs but strongly opposes the Democrats' response and has ridiculed those who "think we can tax our way out of this problem.""Republicans by and large believe that the solution to this problem, in part, is to increase domestic production," McConnell said.
A GOP energy plan, rejected by the Senate last month, calls for opening a coastal strip of the Arctic National Wildlife Refuge in Alaska to oil development and to allow states to opt out of the national moratorium that has been in effect for a quarter century against oil and gas drilling in more than 80 percent of the country's coastal waters.

The question is, how big are the profits compared to the increased costs we are all paying.

Here is how the basic math works......

Let's say that the combined profits for the big 5 are $120 Billion.

There are 126 Million households in the United States
$120,000,000,000 : 126,000,000 = $952 Dollars/ household in 2008 will go to profit for the Big 5 Oil Companies.

Average Annual Miles per Household = 11,100
The Average Fuel Economy = 22 miles per gallon
11,100 miles : 22 = 504 gallons of get used/ household

Now, let's take 504 gallons and divide that by the $952 Dollars profit/ household in 2008
and we see that about $1.88 of the cost/ gallon we pay at the pump goes straight into the pockets of 5 Oil Companies.

Take a cost of $4.00 at the pump, subtract the windfall profits, and gas is $2.12/ gal.

How do you like that math?


Larry Lubell
www.urbanInsuranceAgency.com

http://www.defra.gov.uk/
U.S. Department of Energy’s Transportation Energy Data Handbookhttp://www-cta.ornl.gov/
U.S. Energy Information Administration’s Residential Energy Consumption Surveyhttp://www.eia.doe.gov/emeu/recs/contents.html
Your Car Travel
AssumptionsEmissions per Gallon of Gasoline = 0.0089 tons of CO2Average Annual Miles per Household = 11,100Per Capita Miles Driven in 2004 = 9,941Average Vehicle Trip = 10 milesAverage Fuel Economy = 22 miles per gallon

Top 10 Best Selling cars

Best Selling Cars of 2008

1. Toyota Camry: 31,601
2. Honda Accord: 23,957
3. Nissan Altima: 21,635
4. Honda Civic: 20,993
5. Toyota Corolla: 20,736
6. Chevrolet Impala: 17,544
7. Chevrolet Cobalt: 17,310
8. Chevrolet Malibu: 14,105
9. Pontiac G6: 13,942
10. Ford Focus: 11,600

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Obama wins Nomination?

Barack Obama becomes the first black candidate ever to lead a major party into a fall campaign for the White House. This declaration is, based on an Associated Press tally of convention delegates won by, and Super Delegates declared for Obama.


"I am a bit surprised to hear this report ahead of tonight numbers, but I expected us to go over after the primaries tonight" Said a Obama Supporter.

BREAKING NEWS

Hillary Rodham Clinton will concede Tuesday night that Barack Obama has the delegates to secure the Democratic nomination, campaign officials said, effectively ending her bid to be the nation's first female president.

Seeing the writing on the wall, Hillary Rodham Clinton has told congressional colleagues she would be open to becoming Barack Obama's vice presidential nominee, saying she would consider it if it would help Democrats win the White House.


Democratic Rep. Nydia Velazquez stated she believed the best way for Obama to win over key voting blocs, including Hispanics, would be for him to choose Clinton as his running mate."


For the past few months many Democrats torn between Clinton and Obama; have floated the idea of a "Dream Ticket" as a way of healing the party and filling all niches of traditional Democratic voter.


It is clear that Barack needs Hillary's support, but it is not clear that he is helped by having her on the ticket. She comes with a lot of baggage, and after 20 years of either a Clinton or a Bush in the Oval Office, Hillary might not fit neatly with Bbama's mantra of "Change."

Say what you will, it is difficult to argue that this has been a boring process.
Larry Lubell / UrbanBlog
http://www.urbaninsuranceagency.com

http://urbannewsblog.blogspot.com

Johnny Depp in Chicago

Living in Chicago it is very easy to declare your self the be above the whole "Hollywood / LA" celebrity conscience scene; the same way one might proudly state they don't have time for television, instead they read.

But I have to admit, that I have made several visits to the few blocks around the Biograph Theater now doubling as the set for the new Dillinger movie staring Johnny Depp. Sure I tell myself that it is the history that intrigues me and not the stars, but once there, I find that I too am hoping to catch a glimpse of someone "Famous."

That said, the coolest part of watching them turn a street in my neighborhood back 74 years, is how little they had to do to make the transformation. Replace the Range Rovers, Toyota's and Volvo's, with cars from the thirty's. Switch out the clothes in the windows, replace a few signs and viola, it's 1934.

Christian Bale Melvin Purvis
Johnny Depp John Dillinger
Channing Tatum Pretty Boy Floyd
Emilie de Ravin Anna Patzke

John Herbert Dillinger was born on June 22, 1903, in the Oak Hill section of Indianapolis, a middle-class residential neighborhood. Frequently in trouble, he quit school and got a job in a machine shop in Indianapolis.

A break with his father and trouble with the law (auto theft) led him to enlist in the Navy. There he soon got into trouble and deserted his ship when it docked in Boston. Returning to Mooresville, he married 16-year-old Beryl Hovius in 1924. A dazzling dream of bright lights and excitement led the newlyweds to Indianapolis. Dillinger had no luck finding work in the city and joined the town pool shark, Ed Singleton, in his search for easy money. In their first attempt, they tried to rob a Mooresville grocer, but were quickly apprehended. Singleton pleaded not guilty, stood trial, and was sentenced to two years. Dillinger, following his father's advice, confessed, was convicted of assault and battery with intent to rob, and conspiracy to commit a felony, and received joint sentences of 2 to 14 years and 10 to 20 years in the Indiana State Prison. Stunned by the harsh sentence, Dillinger became a tortured, bitter man in prison.

His period of infamy began on May 10, 1933, when he was paroled from prison after serving 8 1/2 years of his sentence. Almost immediately, Dillinger robbed a bank in Bluffton, Ohio.

Meanwhile, Dillinger and his gang pulled several bank robberies. They also plundered the police arsenals at Auburn, Indiana, and Peru, Indiana, stealing several machine guns, rifles, and revolvers, a quantity of ammunition, and several bulletproof vests. On December 14, John Hamilton, a Dillinger gang member, shot and killed a police detective in Chicago. A month later, the Dillinger gang killed a police officer during the robbery of the First National Bank of East Chicago, Indiana. Then they made their way to Florida and, subsequently, to Tucson, Arizona. There on January 23, 1934, a fire broke out in the hotel where Clark and Makley were hiding under assumed names. Firemen recognized the men from their photographs, and local police arrested them, as well as Dillinger and Harry Pierpont. They also seized 3 Thompson submachine guns, 2 Winchester rifles mounted as machine guns, 5 bulletproof vests, and more than $25,000 in cash, part of it from the East Chicago robbery.
Dillinger was sequestered at the county jail in Crown Point, Indiana, to await trial for the murder of the East Chicago police officer. Authorities boasted that the jail was "escape proof." But on March 3, 1934, Dillinger cowed the guards with what he claimed later was a wooden gun he had whittled. He forced them to open the door to his cell, then grabbed two machine guns, locked up the guards and several trustees, and fled.
It was then that Dillinger made the mistake that would cost him his life. He stole the sheriff's car and drove across the Indiana-Illinois line, heading for Chicago. By doing that, he violated the National Motor Vehicle Theft Act, which made it a Federal offense to transport a stolen motor vehicle across a state line.

Then on March 30, 1934, an Agent talked to the manager of the Lincoln Court Apartments in St In Chicago, Dillinger joined his girlfriend, Evelyn Frechette. They proceeded to St. Paul, where Dillinger teamed up with Homer Van Meter, Lester ("Baby Face Nelson") Gillis, Eddie Green, and Tommy Carroll, among others. The gang's business prospered as they continued robbing banks of large amounts of money.
. Paul, who reported two suspicious tenants, Mr. and Mrs. Hellman, who acted nervous and refused to admit the apartment caretaker. The FBI began a surveillance of the Hellman's apartment. The next day, an Agent and a police officer knocked on the door of the apartment. Evelyn Frechette opened the door, but quickly slammed it shut. The Agent called for reinforcements to surround the building.

Dillinger and Evelyn Frechette fled to Mooresville, Indiana, where they stayed with his father and half-brother until his wound healed. Then Frechette went to Chicago to visit a friend--and was arrested by the FBI. She was taken to St. Paul for trial on a charge of conspiracy to harbor a fugitive. She was convicted, fined $1,000, and sentenced to two years in prison. Bessie Skinner, Eddie Green's girlfriend, got 15 months on the same charge.
In Washington, FBI Director J. Edgar Hoover assigned Special Agent Samuel A. Cowley to head the FBI's investigative efforts against Dillinger. Cowley set up headquarters in Chicago, where he and Melvin Purvis, Special Agent in Charge of the Chicago office, planned their strategy. A squad of Agents under Cowley worked with East Chicago policemen in tracking down all tips and rumors.
Late in the afternoon of Saturday, July 21, 1934, the madam of a brothel in Gary, Indiana, contacted one of the police officers with information. This woman called herself Anna Sage, however, her real name was Ana Cumpanas, and she had entered the United States from her native Rumania in 1914. Because of the nature of her profession, she was considered an undesirable alien by the Immigration and Naturalization Service, and deportation proceedings had been started. Anna was willing to sell the FBI some information about Dillinger for a cash reward, plus the FBI's help in preventing her deportation.
At a meeting with Anna, Cowley and Purvis were cautious. They promised her the reward if her information led to Dillinger's capture, but said all they could do was call her cooperation to the attention of the Department of Labor, which at that time handled deportation matters. Satisfied, Anna told the Agents that a girlfriend of hers, Polly Hamilton, had visited her establishment with Dillinger. Anna had recognized Dillinger from a newspaper photograph.
Anna told the Agents that she, Polly Hamilton, and Dillinger probably would be going to the movies the following evening at either the Biograph or the Marbro Theaters. She said that she would notify them when the theater was chosen. She also said that she would wear a red dress so that they could identify her.
Special Agent in Charge Melvin Purvis
On Sunday, July 22, Cowley ordered all Agents of the Chicago office to stand by for urgent duty. Anna Sage called that evening to confirm the plans, but she still did not know which theater they would attend. Therefore, Agents and policemen were sent to both theaters. At 8:30 p.m., Anna Sage, John Dillinger, and Polly Hamilton strolled into the Biograph Theater to see Clark Gable in "Manhattan Melodrama." Purvis phoned Cowley, who shifted the other men from the Marbro to the Biograph.
At 10:30 p.m., Dillinger, with his two female companions on either side, walked out of the theater and turned to his left. As they walked past the doorway in which Purvis was standing, Purvis lit a cigar as a signal for the other men to close in. Dillinger quickly realized what was happening and acted by instinct. He grabbed a pistol from his right trouser pocket as he ran toward the alley. Five shots were fired from the guns of three FBI Agents. Three of the shots hit Dillinger and he fell face down on the pavement. At 10:50 p.m. on July 22, 1934, John Dillinger was pronounced dead in a little room in the Alexian Brothers Hospital.

Byte Out of History story: The Fall of John Dillinger and the Rise of the FBI