Necessary News

All you need to know to sound brilliant

$15B In Housing Aid, but Not Everyone Is Celebrating

• Details:The House approved $15 billion in loans and grants to states to purchase, rehabilitate and resell or rent foreclosed properties, under the Neighborhood Stabilization Act. [USA Today]
• The measure passed 239-188 as part of a sweeping housing package being pushed by the Democrats.
• It would help roughly 500,000 borrowers at a cost of $2.7 billion over the next five years.
• Put it in perspective: 650,000 foreclosures were filed in the first quarter, and 2,203,295 foreclosures were filed in 2007. [RealtyTrac]
• Positives: By fixing up foreclosed homes, proponents hope to prevent blight in neighborhoods and maintain property values for those staying in their homes.
• Negatives: Some folks say it will reward speculators, lenders, and investors instead of the homeowners who really need help.
• This ignores common sense: Banks aren’t making money off these sales, which are often less than $10k for a house. [Wonk Room]
• Instead, it helps non-profits and state governments lead revitalization efforts.
• Bush’s Thoughts: “I will veto the bill that’s moving through the House today if it makes it to my desk, and will urge members on both sides of the aisle to focus on the good piece of legislation that is being sponsored by Republican members.”
• His Reasoning: “The Administration is also concerned that [the housing bill] would create an additional incentive for more lenders to foreclose rather than attempt a workout with distressed homeowners.”
• But we know this isn’t true- after all, banks are making no efforts to changes loan terms to create sustainable mortgages. [Wonk Room]

• Up Next:

  The American Housing Rescue and Foreclosure Prevention Act.

• It would let homeowners refinance to federally backed mortgages, helping hundreds of thousands stay in their homes.

While they’re fighting, the foreclosure rate keeps going up, up, up!

KBR Accused Of Doing More Very Bad Things

• Another day, another KBR scandal in Iraq. This time, Iraqis are accusing the contractor of sexual harassment at the British Embassy in Baghdad. [IHT]
• According to the London Times, “An Iraqi cleaner and two cooks claim that a culture of sexual harassment, abuse and bullying exists at the British Embassy in Baghdad.”
• For example, the middle-aged Iraqi woman hired by KBR to clean the embassy said a contractor offered to double her pay if she’d sleep with him.
• The manager “threw many $100 notes on the desk and said, ‘take whatever you want and stay overnight and I will pay you double [your daily pay]’. ”
• She said no, her pay was cut and then she was fired.
• The cleaning woman and two male cooks in the Embassy kitchen also say “some KBR managers groped Iraqi staff regularly, paid or otherwise rewarded them for sex and dismissed those who refused or spoke out.”
• They complained to authorities. The Brits said they’d have it investigated…then asked KBR to investigate itself.
• KBR did and – surprise! – found all of their contractors were innocent. All were re-instated. And all the Iraqis were fired. (Oh, and they never bothered to talk to anyone who’d made any of the allegations.)

A Scandalous History

• Monday we told you KBR was under fire for shoddy electrical work that may have led to the electrocutions of American soldiers. [NY Times]
• There have been multiple rape charges leveled against KBR employees in Iraq. The company has fought to keep them covered up. [The Nation] [ABC News]
• They provided our soldiers with contaminated, toxic water that led to skin abscesses, cellulitis, skin infections, diarrhea and other illnesses. [NYT]
• They’ve dodged up to $500 million in U.S. taxes. [Boston Globe]

KBR has received more than $16 billion in government contracts since 2004.

The Congressman, His Mistress And Her Love Child

• Yesterday, we gave you some details about Rep. Vito Fossella (R., NY) and his recent DUI. Now it turns out there’s much, much more to the story.
• Last week, Fossella and his friend “Brian” were kicked out of a DC tavern after the friend belly-flopped onto a table, breaking it at the base. (The friend also passed out both at the bar and on a chair outside the Men’s Room.) [NY Daily News]
• The bartender helped the men flag a cab, but a short while later the Congressman was picked up for drunk driving in nearby Alexandria, Virginia.
• He blew a 1.7, more than double the Virginia limit.
• When he was pulled over, the drunk Fossella kept telling the cops he was on his way to visit his daughter. The next day he changed the story, saying he was going to see “some friends.”
• Seven hours after his arrest, Fossella was bailed out of jail by “close friend” retired Lt. Col. Laura Fay. Fay and Fossella have known one another since her days as Air Force Liaison to the Hill.
• Fay lives in Alexandria, close to where Fossella was pulled over. Fay has a three-year-old daughter. This chain of circumstances made some reporters veeeeeery curious.
• Yesterday, Rep. Vito Fossella admitted Fay was his mistress and he was the father of her child. [IHT]
• Fossella also has a wife and three children who live on Staten Island.
• Fossella: “My personal failings and imperfections have caused enormous pain to the people I love and I am truly sorry.”
• Fossella: “While I understand that there will be many questions, including those about my political future, making any political decisions right now are furthest from my mind. Over the coming weeks and months, I will continue to do my job and I will work hard to heal the deep wounds I have caused.”

You know it’s bad when your DUI arrest *isn’t* the worst thing that happened to you this week.

Good News, Bad News

NATURAL SELECTION

Passengers at Chicago’s Midway airport got through security in five minutes or less this morning. FIVE minutes for security? Well, its possible now that the airport has passengers self select into beginner, intermediate, and advanced traveler categories, complete with ski-slope style signs. [Chicago Tribune]

GOOD NEWS

Only five minutes in security? Sign me up now!

BAD NEWS

The only thing more frustrating than being stuck behind stupid people in a regular line would be being stuck behind some idiot who thinks hes an expert and yet doesn’t realize you have to remove your shoes.

Quote Of The Day

“Our government in this memo is teaching us a politically correct version of the truth. For example, it tells us that democracy and Islam are compatible. But Islam is less compatible with democracy than is Christianity.”

— We can’t believe how much we’ve missed the crazy stylings of former Congressman Rick Santorum (R., PA). Today Rick is fighting back against last month’s government memo that asked people to stop using the term “Islamo-fascist” because “such words may actually boost support for radicals among Arab and Muslim audiences.” [Philly Inq] [AP]

Speed Round

GO ELIZABETH!

Elizabeth Edwards testified in front of the Senate Health Committee yesterday about the state of health care in the U.S. today, saying, “Probably the most preventable cause of unnecessary suffering in our health care system is the lack of adequate health insurance.” And “I urge you to reform health care responsibly, morally, and aggressively.”

43,000

Since 2003, the number of U.S. troops listed as “medically unfit for combat” who were deployed to Iraq or Afghanistan anyway. [USA Today]

YOUR NEXT VACATION GET-AWAY

The U.S. government has asked Marriott to consider opening a hotel in beautiful downtown Baghdad. The company is said to be considering it, but is worried about major obstacles “such as Baghdad’s lack of security and its ravaged infrastructure.” [Washington Post]

$248 MILLION

Emergency funds appropriated by the Army for emergency repairs since the YouTube video of deplorable conditions at Fort Bragg surfaced two weeks ago. [AP]

UNLIKELY

Officials in Philadelphia say that the police beatings caught on tape have nothing to do with race, but residents disagree: “You see 14 white police officers beating three black males. In my area where I live at I can see it constantly.” [CNN]

TIT FOR TAT

Russia ordered two American military attachés to leave the country following the expulsion of a pair of Russian diplomats from Washington, but the State Department claims these incidents are unrelated. [Reuters]

HAND OVER THE RECORDS AND NO ONE WILL GET HURT

North Korea handed over key nuclear weapons documents to a U.S. diplomat today, shinning light on the regime’s nuclear activities. [International Herald Tribune]

ENVIRONMENT 1, DEVELOPERS 0

An area the size of LA will be set aside for conservation in California, the largest conservation effort in California history. [CNN]

GET OUT AND STAY OUT

Private equity firms in NYC are starting to buy up rent controlled apartments and then subtly (or not so subtly) convince the tenants to move out. They get prime real estate at low prices, while the poor folks lose out. Now they’re taking their fight to the media. [New York Times]

CONGRESS

All other problems of the world obviously solved, the House of Representatives turned their attentions yesterday to the pressing problem of whether pennies should be worth more than one cent. (The unanimous vote: No.) The White House, naturally, is opposing the measure. Hey, guys – how’s that health care reform coming? [Fox News]

PRAYING FOR FREE GAS

One church in Georgia is using a novel approach to attracting new members to its congregation. They’ve erected a huge highway sign reading “Free Gasoline. 770-978-5717.” Callers are invited to a revival meeting, at which they can enter a raffle for $500 gas cards. [USA Today]

WAR

“Militants fired rockets into a British forces base in Iraq’s southern oil town of Basra on Thursday, killing two contractors and wounding four other civilians, the U.S. military said on Thursday.” [NY Times]

WHEN RAP STARS VOTE

“I ain’t watching no debates. I just want my people to understand that Hillary and Barack are not running for president — they running to be able to run for president. There’s a Republican Party, too — we ain’t about to win, fool!” – Rapper Lil Wayne, just clearing things up for us. [Washington Post]

CONFLICT OF INTEREST

Senator Richard C. Shelby’s links to the mortgage industry are a big question, especially since he’s got more say over the revamping of housing finance laws than almost anyone else in Congress. Suspicious? We think so. [New York Times]

$116,805

Value mom? Do you value her at $117k per year? According to Salary.com, thats the average value of a stay at home mom. [Fox New]