Major New York Concrete and Steel Testing Firm Indicted For Fraud

Proposed Freedom Tower Under Construction.

Our present Financial tsunami was largely fueled because the ” cops” of the financial industry the SEC, and private valuation firms ” rating agencies”   ( Fitch, Standard and Poor’s and Moody’s ) were grossly negligent.  see; http://dealbook.blogs.nytimes.com/2008/10/22/rating-agencies-draw-fire-capitol-hill/ Locally, in New York a similar “FRAUD” has been committed in the construction industry.

Fraud is the singular most cause of our problem and an easy definition is ” MISREPRESENTATION OF MATERIAL FACTS”.   see  http://www.dmoz.org/Society/Law/Legal_Information/Fraud/ In our financial debacle the rating agencies told investors  ( misleading them ) that the mortgage back securities were ” AAA” almost as secure as Federal Debt obligations. The ratings were false, and as such investors were lied to and put money at risk, which they would not have if they knew the mortgages were junk.

With respect to Treadwell ” the concrete poured is tested and they falsify the  results stating they meet building code requirments when in actuality they don’t. As such the public safety is at risk, including death from a building collapse.

New York is a concrete  and steel jungle we rely on professionals to maximize our safety.  A whose ” who” of New York Construction Buildings may have been built and or are  defective and/ or below acceptable  measurable industry and city building code standards of concrete density.   see http://www.nytimes.com/2008/06/21/nyregion/21concrete.html?partner=permalink&exprod=permalinkThe Manhattan District Attorney on October 30th indicted officers of Testwell Laboratories . The charges include fraud and racketeering.  http://manhattanda.org/whatsnew/press/2008-10-30.shtml and see: http://www.1010wins.com/pages/3229974.php?

Quoting  DANY ” The investigation revealed that TESTWELL falsified tests on both the structural steel and welding. In many cases, the same piece of steel was tested multiple times; in others, steel was certified in a time-frame that could not possibly have matched the time it took to fabricate it.

1010 news radio reported ” The ( fraud)  charges involve some of the most high-profile buildings in the city, including Yankee Stadium, the Freedom Tower, the United Nations and the Metropolitan Museum of Art, Manhattan District Attorney Robert Morgenthau said. Other projects included hospitals, firehouses, schools, subway stations, an Atlantic City casino and a new terminal at John F. Kennedy International Airport.”

HELLO THE NUCLEAR REGULATORY COMMISSION FINED THIS GROUP IN 2003!

A little Google work on “Testwell” makes one wonder if due diligence was used before they were retained on the indicted projects after the firm was fined by the Federal  U.S. Nuclear Regulatory Commission fined them in 2003 for shoddy inspections at their ” NUCLEAR Facilities” http://www.nrc.gov/reading-rm/doc-collections/enforcement/actions/materials/ea03036.html

In the present indictment the allegation states that improper non certified inspectors conducted measuurements. In the later Nuclear investigation the omission is the same Specifically, your Radiation Safety Officer (RSO)/Director of Radiography performed and/or allowed radiography to be performed on at least three occasions without the supervision of a certified radiographer, even though he knew that the supervision of a certified radiographer was required.”

Our Society must stop FRAUD which is essentially Lying. I’m sure when this investigation is over we will see a trail of money and that public projects and public safety was risked is appalling. That some of our major infrastructure and tourism buildings may have been compromised and possibly have to be rebuilt demands that the guilty parties go to jail.

Superfly ” American Gangster” Cops Sue New York Magazine

I have a romance with 70 cop shows.  However a real case involved a reputed Harlem Drug Lord Frank Lucas.  My source of this is a post on  Cityfile http://cityfile.com/dailyfile/2661 “  Below is a clip from American Gangster, it is violent but the acting by Denzel Washington is superb.

In 2000, New York magazine published a story by Mark Jacobson called “The Return of Superfly,” which detailed the life and times of Frank Lucas (left), the drug dealer who cornered the Harlem heroin market in the late ’60s and early ’70s before he was brought down in 1975. The article was later turned into the movie American Gangster starring Denzel Washington, and now, eight years later, it’s spurred a lawsuit. Late last year, New York republished “The Return of Superfly” on nymag.com and repeated an allegation by Lucas that the NYPD and DEA agents who raided his home also stole millions in cash.”

Apparently the now retired law enforcement personnel feel that the allegations that they took cash are ” defamatory”. Here is the law suit.

http://www.scribd.com/doc/7566286/AmerGangster

New York Housing Crisis Has Just Started

I firmly believe that New York will follow California’s housing decline. And as such we have a minimum of 3 years of  declining  markets. Take a look at San Diego  and what is happening, See this site” http://piggington.com/.

Professor Laffer http://en.wikipedia.org/wiki/Arthur_Laffer in today’s Wall Street Journal Op-Ed piece ” The End of Prosperity” is very scary. http://online.wsj.com/article/SB122506830024970697.html

Another Blog on the topic NY centric is http://nychousingbubble.blogspot.com/2008/09/wsj-manhattan-wont-avoid-property.html

In Florida it’s so bad ( the market bust) they are giving bus tours of foreclosed homes. http://www.msnbc.msn.com/id/23814563/

So California , and Florida have been in serious decline, and after the total destruction of the NYC financial markets, how can NY be immune?  It cannot, and don’t buy into the greedy ignorant self serving Realtor advice. NYC housing prices will plummet.

Last week I represented the seller of a home on Long Island. The purchase price $405,000.00. The purchaser placed $10,000.00 down , less than 3 %. The purchaser’s attorney requested a ” seller’s concession”, whereby the price of the home was increased 3% or approximately $12,000.00 so they could finance their closing costs. So now the price is $417,000.00.

Now given the banking crisis, the question you ask is ” who would fund this lunacy” .  Uncle Sam via a “FHA Loan” The government funded the whole thing.  Now if you deduct the Realtor commission of 6% from the ” true sales price of 405,000.00, the home’s valuation is really $380,000.00

So the taxpayers are paying 10 % over the true market value, and the ” market prices’ are still in decline. This is insanity, and taxpayers should not be in the market especially one that is falling perceptively.

The government funding of high risk real estate at above market prices in a declining market is economic suicide and risks failure of government funds for essential services ” health , safety and welfare of the public”.

Ownership of a home, house, condominium or cooperative apartment is not a ” right” of all citizens,  it should only occur when a person has saved a sufficient amount, for a down payment of 20%. This market will not recover until real estate prices and the payment for same comes into balance with the historical average of 30% of ones income going to housing.

This brings me back to what I have said for over 3 years, this market is worse, than anyone imagines. Today NYU Professor Nourel Roubini states ” the worst is to come” , http://business.timesonline.co.uk/tol/business/economics/article5014463.ece I’ve felt this way for a long time. We have invested in ” financial instruments that no one really understands, nor can they value. Now the government owns them.

The un -precedent bailout of AIG is already ” insufficient funds’ they burned threw the government funds in less than a month.  In his testimony this past week before Congress ” Greenspan ” used my words ” Economic Tsunami” .

Folks, be afraid, be very afraid  I truly believe we are entering a  second Great Depression.   Consider the following facts.

1. Two wars being fought.

2. A Presidential Election with a complete change in economic strategy.

3. The complete eradication of ” investment Banking” which will bad for the nation and may cripple NYS and NYC.

4. The Dow , and world markets in synchronized downturns.

5. Unemployment and layoffs increasing daily.

6. State and local tax revenues eroding.

7. Bank failures ING, INDY MAC, WAMA, keep going.

Raped Nun Denounces Indian Police.

Nun Raped in Orissa India Claims Police Knowingly Failed to Stop Rape

A troubling article from my news feed. The BBC http://news.bbc.co.uk/2/hi/south_asia/7689215.stmis reporting that Indian Police stood by and did not protect a Roman Catholic Nun who claims she was raped by a mob of Hindu Indians. Worse it appears that in this secular nation to whom the world looks to as the home of peaceful change. http://en.wikipedia.org/wiki/Gandhi_Peace_Prize

New York Times Image Catholic Home Burned to Ground Secular Violence Catholic vs Hindu

Apparently India’s Hindu and Catholic population are fighting with Catholics becoming homeless. The New York times reported that Catholics houses are being burned to the ground. Catholics are told to ” convert” or leave the country. The article states that religious leaders ( priests and nuns have been stripped of their clothes and paraded naked before crowds. If,http://www.nytimes.com/2008/10/13/world/asia/13india.html?partner=permalink&exprod=permalinks

What is scary about this incident is that the Asian Human Rights Commission warned government officials about gross perhaps criminal conduct by the Police in this region. Nine persons were killed in 2006 during a labor strike http://www.ahrchk.net/ua/mainfile.php/2006/1456/

National Elected Leaders in India must correct this condition or public trust of the police will erode, worse than it already has. Amnesty International is calling for action and reports that the number of Christians who have taken shelter in 25 relief camps run by the state authorities has gone up from 12,000 to 20,000 http://www.amnesty.org.uk/news_details.asp?NewsID=17894

I am shocked that this is going on in a democratic nation, more perplexed that Federal leaders did not intervene.  If the Police won’t protect and serve, the government has failed.

San Francisco Ponders Legalization of Prostitution.

It’s the oldest profession in the world ” prostitution”.  Today according to the Associated Press http://www.breitbart.com/article.php?id=D93V4U0O0&show_article=1 elected officials with the full support of the Democratic Party are considering legislation to legalize prostitution See also” SF safe haven for prostitution.  http://www.cnn.com/2008/US/10/21/san.francisco.prostitution.ap/index.html

As a cop my concern is the ” pimps”.  Many young women are defacto slaves of these predators who exploit another persons human and bodily right to sanctity.  Pimps are often drug dealers, drug users, and inflict physical and emotional trauma on their women.

Some argue that prostitution is a victimless crime, they state that if a person voluntarily permits another to have intimate relations with them for cash its  just a unique form of ” hired help”. This may be true in some cases, but when a person solicits others to have sex with them they open up the door to attracting psychos, sexual predators, deviates and the like. Slate asks the question ” why is prostitution illegal http://www.slate.com/id/2186243 in response to the arrest of Governor Spitzer of New York.

One thing is clear the retention of another person for sex has a qualitative and wealth factor. The rich like Spitz er go to fancy dealers ” the Cadillac of prostitutes” the working folks go to the Chevy and Ford less expensive prostitutes.

Vice Crimes such as prostitution also cause negative secondary effects.  Prostitution is associated with alcohol and drug abuse. In case of public prostitution ” street walking”  sex takes place in parked cars, alley ways and the like, often taking place in front of young children.

Will the City of San Francisco designated “SEX ZONES” similar to industrial parks and limit the negative effects, I don’t know. Who wants a sex zone next to their homes and apartments?

For further reading on this topic see.

1. Prostitution in Nevada:  http://en.wikipedia.org/wiki/Prostitution_in_Nevada

2. Pro Con .ort  http://prostitution.procon.org/

3. Netherlands Prostitution ( which concludes many undocumented young adults are exploited.

http://www.uri.edu/artsci/wms/hughes/netherl.htm

4. An empirical analysis ( economic in conjunction with Chicago PD) on street Prostitution. http://economics.uchicago.edu/pdf/Prostitution%205.pdf

5. ABC Diane Sawyer ” Prostitution in America” http://abcnews.go.com/2020/story?id=4480892&page=1

And what is a better video to put a smile on your face after my typical serious rant.

Mortgage Lobby Firm For Freddie and Fannie Sow’s Weed of Destruction.

Professor Shilling Housing Bubble Graph

Peter Yost a writer for the Associated Press had written an important article on the lobbying efforts regarding Freddie Mac and Fannie Mae. http://news.yahoo.com/s/ap/20081020/ap_on_bi_ge/the_influence_game_housing . The article reports that in 2005 some Republicans believed that if Fannie and Freddie were not curtailed from their financial lending practices the consequences to the nation could be severe. Here,  quoting  Senate Majority Leader Bill Frist, R-Tenn., .

“If effective regulatory reform legislation … is not enacted this year, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system and the economy as a whole,” the senators wrote in a letter that proved prescient.

The article demonstrates how DCI an apparently Reupblican lobbying firm was hired by Fannie and Freddy to change the votes of several reupblicans thus undermining good faith efforts to protect Americans.  By targeting several elected officals to prevent a vote on legislation that would have limited Freddie and Fannie on the theme ” it will break the housing boom” ,

If true,  the reports are true it shows that many lobbyist are defacto viruses, whic have caused America to become sick.

Most folks know that the current economic crisis largely stems from and housing bubble. http://www.housingbubblebust.com/This bubble  http://en.wikipedia.org/wiki/United_States_housing_bubble was caused from a perfect storm which included, low interest rates, no money down mortgages, adjustable rate mortgages, ruthless and unethical realtors, bankers, appraisers, attorneys and home inspectors, all who often worked in sync instead of for the purchaser’s best interest.

Some of their conduct and ability to sell “all for one and houses for all ” were the   legislative efforts to increase housing event to  Americans despite their past credit history and or ecnomic and employment ability to pay for the mortgage.

It appears Freddie and Fannie by retaining and having   DCI http://www.dcigroup.com/ steathly deploy their viral ” kill the bill” pill they in fact crippled the nation. Or at a minimum undermined the nationa debate and the intent of our constitution to have a ” bicameral” systmem of government.

Most folks play by the rules. However the major problem facing the nation is that financial folks, elected folks, banking guys and gals and lobbyists’s at the state and federal level are crippling this nation. They act with unbridled greed, self intrest above the national good are narcassistic and are totally partisan. They ” place their subjective “ends” to justify their ” what ever means necessary” even if it means associating with their sworn enemies.

Can President Obama , end this mess. Will a supermajority of Democrats be able to realize the toxic envornment in Washington is caused by ” greed” and by subordinating the electorate.  We shall see.

Recession Could Harm NYC 55 Billon Dollar Tourism Industry.

Times Square Area

Many New Yorker’s avoid the TIMES SQUARE AREAS FOR IT’S TOURIST TRAP REPUTATION. For the worlds top tourist trap locations see http://www.forbestraveler.com/best-lists/tourist-traps-story.html. While we New Yorker’s may have our noses in the air,  Perhaps we should be a little more gratful to the visitors to this area, for they are an economic engines for New York. I guess we have been spoiled and should be more appreciative of our toursim industry.

Mayor Bloomberg warned that as a result of the 2008 recession/depression tourism to Times Square could drop. If this was to occur New York City’s finances already in tough shape from the collapse of investment banking in America would take another hit. See http://www.reuters.com/article/domesticNews/idUSTRE49G4OU20081017?feedType=RSS&feedName=domesticNews

I was shocked to readt that 1/8 of the City’s revenue is dervied from the Great White Way. I was aware that Wall Street represented roughly 23% of the City’s tax base.  These are staggering numbers and I don’t think folks are paying enough attention to the severity of this economic tsunami we are in.

The Times Square Alliance http://www.timessquarenyc.org/ has a nice site with informatio on the great white way http://en.wikipedia.org/wiki/Great_White_Way#Great_White_Way which according to legend was named because of all the ” white lights”.

California Man BBQ’s GRANDMOTHER 100% PURE EVIL

From California very disturbing news. Relatives of a Senior Citizen are alledged to have “BBQ” the remains of their  own grandmother.http://hosted.ap.org/dynamic/stories/O/ODD_CREMATION_SCAM?SITE=1010WINS&SECTION=HOME&TEMPLATE=DEFAULT see also http://news.yahoo.com/s/ap/20081016/ap_on_fe_st/odd_cremation_scam

The actions of the relatives are a clear indicator of EVIL http://en.wikipedia.org/wiki/Evil . There are many who believe that a person or persons who engage in this deviate behavior can be rehabilitated. I don’t share this view, the act of roasting ones grandmother and making a necklace out of her skull is pure EVIL.  Under our criminal law  for a person to be found guilty of a crime they must have both a mens – rea and actus rea  http://www.nolo.com/definition.cfm/term/CDBD25E2-0C22-4452-89C87F8A413EE73B .

 Here that is the case they destroyed the body in order to preserve the social secuirty benefits from the decendent. They went further to make a necklace from her bones and place it on display on the internet. This show cognative, desire and intent they were consciously aware of what they were doing.

I don’t want to hear from the Doctor’s that the person is ” sick” and needs help. They are evil and need to go to the gray bar hotel , jail, a chain gang and they can pray on Sunday to the God of their choosing.

Bright Spot In Economy Baby Boomer Funeral’s.

BOOMERS ARE DYING DYING DYING AND THEY MAY BE A BRIGHT SPOT DURING OUR FINANCIAL COLLAPSE. First the question is ELVIS DEAD a clip from the BBC on Elvis Presley’s funeral 70″s retro!!!!

I can’t help myself at  this 1010 news in new york http://hosted.ap.org/dynamic/stories/F/FUNERAL_CONVENTION_BOOMERS?SITE=1010WINS&SECTION=HOME&TEMPLATE=DEFAULT is reporting a boom in the funeral industry as the baby boomers http://en.wikipedia.org/wiki/Baby_boomers start passing on.

Who Knew !    AP also reports that boomers are pimping their funerals see http://www.associatedcontent.com/article/440593/nontraditional_funerals_for_baby_boomers.html as they don’t want traditional funerals. The coke coffin above is different. How about this baby:

For more  information on the death of the boomers see http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/10/16/national/a040014D51.DTL&type=health

Obamanomics; The Birth of Socially Responsible Economic Theory

Obamanomics  is here and its “hip” and “in” make no bones about it. But it’s genesis was by none other than  President  George Bush with the gleeful assistance of Congress. It is a seminal moment and to the majority of trend -noid-Americans a shift they can readily grasp but choose not too.

Robert Reich in his editorialal states it’s ” bottom up ” as opposed to ” top down” economic policy http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/10/05/INTM139L8L.DTL. I think his article lacks acknowledment of his and Obama’s  theory which in my opinion will create the Socially Responsible Economic Theory. This may be a good thing but it has risks.

The Death of Liberal’s with Sanity.

The Great Mayor Edward Koch http://en.wikipedia.org/wiki/Ed_Koch coined the above phrase http://www.realclearpolitics.com/articles/2006/10/a_liberal_with_sanity.html and while Mayor Koch pushed for affordable housing, and economic development and empowerment he never suggested the creation of a NYC owned bank or insurance firm.

The Clash:

Adam Smith ” invisible hand theory” modernized by Herbert Stein vs

Obama, Kruger, Reich activist government-partenersip theory.

Herbert Stein in my opinion represented the modern economic theory of Adam Smith he has been referred to as a liberal’s conservative and a conservative’s liberal.” http://en.wikipedia.org/wiki/Herbert_Stein . Under President Ford right up until most of the Bush administration the role of government has been strong but subtle.

With today’s announcement of government partnerships with banks we have a cataclimic shift of economic theory. As such the modern Adam Smith- Stein  versions of the government role in society has ended. We have entered into the Paul Krugman Robert Reich economic error.

In his article ” Adam Smith did not wear an Adam Smith  necktie Stein argues government intervention with great skepticism.  But this did not mean government could not make rational decisions.

“T]he people who wear the Adam Smith tie are not doing so to honorliterary genius. They are doing so to make a statement of their devotion to the idea of free markets and limited government. What stands out in WofN, however, is that their patron saint was not pure or doctrinaireabout this idea. He viewed government intervention in the market with great skepticism. He regarded his exposition of the virtues of the free market as his main contribution to policy, and the purpose for which his
economic analysis was developed.

Yet he was prepared to accept or propose qualifications to that policy in the specific cases where he judged that their net effect would be beneficial and would not undermine the basically free character of the system. He did not wear the Adam Smith necktie.”

The Public -Private Synergy , Paul Krugman Obama Reich an et al;

The Obamanomics theory is really an agressive John Manynard Kaynes Theory. It has has been referred to as ” a third way” .  They use the American rebuilding of Japan as the factual evidence of how ” active” as opposed to ” passive” government intervention in the economy can ” rebuild” and re-habilitate an economy. General McArthur a solider led this effort see” http://www.time.com/time/asia/2006/heroes/nb_macarthur.html. It is historically called the Potsdam Declaration  for the full text see :http://www.ibiblio.org/pha/policy/1945/450802a.html. While we did have sucess in Japan, will this theory of government – partnerships be effective. Krugman is very smart and he just one the Nobel Peace Prize http://www.bloomberg.com/apps/news?pid=20601103&sid=av56boh_S7S4&refer=us He states in the following video that John Manynard Keynes http://en.wikipedia.org/wiki/John_Maynard_Keynes is his hero.

IRAQ FAILURES TO REBUILD AND MUSSOLINI’S FACIST REGIMES SUGGEST MODERN U.S. INTERVENTION FAILURE.

As we know the government owns AIG, Fannie, Freddie Mac, and god only knows what elese after the 700 pluse billion dollar bail out. However, the government discriminated Bear Stearns was saved, Lehman left to go under, ING goes under, others bailed out. And this is the risk  both Republicans and now Democrats when given control have partisan partners. The difference now ” THE PEOPLE ” DIRECTLY OWN THE INSTITUTIONS CREATED.

So, will Democrats behave like the Republicans and let partisan politics hurt the overall economy. Does the failure of such  government partnerships like ” Italy’s Alitalia where although the government owned almost 50% of the entity with the remainder private funding give us an indica that such our present  collaborationwith financial entitys is doomed to failure.  See http://www.signonsandiego.com/news/business/20080918-1104-italy-alitalia.html