February 28, 2009

Coffee Article of the Day

As your barista, I have tried to provide some timely, popular, yet pretty sensible articles that may help you to get some ideas on what is going on in now troubling US financial market --so that you have some good starts at any cocktail conversation. As interesting as they may look, those are media report or blog's posting. For education purpose (hell, yeah), you need to consult peer-reviewed journal article, that usually takes more time to publish.

As the time goes, now some articles are there. I found one by Brunnermeier of Princeton, in JEP (forthcoming). Don't yawn. Contrary to what you usually get in an economic journal (those Greek alphabets, in case you are not familiar with econ journals), this one is highly readable.

(HT: Håring and Storbeck)

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Hey, There!

Get lost. Literally, figuratively. Until and unless the Kremlin can successfully accustom itself to the idea that it can and should co-exist with other countries of the world without its proclivity to incessant hints of aggression, and the kind of sniffy hyperbole that they think will result in respect, they should give a wide berth to the kinds of alarming adventures they indulge in to be noticed.

We know you're there. Full stop. Stay there.

Respect the sovereignty of other countries at least in equal measure to that which you insist on receiving from others. Is that so difficult to comprehend? As you sow so shall you be met with. Now that makes sense, doesn't it? Not too popular with the European Union of late, right? No country likes to see its citizens huddling in despair, freezing in the dark.

There's a disagreement between the five polar presences respecting possession, recognition and entitlements. Nothing new there; the courageously intrepid 19th- Century explorers of two Continents set out to establish a presence on behalf of their nations, and a mild unease between all the principles still exists. Brought to the fore, surprise! by the presence of vast undersea mineral and petroleum resources.

Through the just intermediary of the United Nations and the Law of the Seas it will yet be revealed through scientific scrutiny and evaluation where the boundaries of possession will be drawn. Despite your triumphally controversial, impetuous, yet admittedly audacious and successful flag implantation.

You'd like the security of harbouring for yourself the future security of vast revenues through those undersea resources. So would Canada, the United States, Norway, Denmark. They too have claims, yet to be fully determined and acknowledged. So sit tight, like the rest of them, and await revelations and conclusions.

And just by the bye, exercise a little restraint in your international communications. You'll find yourself more highly regarded; others won't mind respecting you so much with a little co-operation and open-minded regard for others. Stop provoking other countries. As for example, those Tupolev jets tickling Canadian airspace, without prior notification.

The provocation perhaps a double-edged flick of arrogance toward both Canada and the United States. Staged as it was just on the cusp of the brief sojourn of President Obama to Canada, for his initial courtesy call. Courtesy; doubtless that's a concept not in great currency in the Kremlin, though it should be, despite going against the grain of its political culture.

The government of Canada is not known for making falsely accusative remarks against other countries. But we do respond when provoked. Certainly not like an angry bear when it's provoked, but within the diplomatic protocol. Bear in mind that there are international obligations between countries that should be observed to maintain cordial relations.

The current and ongoing standoff between the Kremlin and the Canadian government does not particularly bespeak a comfortable future, and that's a shame. The chief of the Canadian defence staff has identified overflight incursions as a perplexing irritant of several years' duration, reminiscent of the old Cold War. Does that bespeak our future? A return to the past?

A Russia with a leaking currency and bottomed-out oil prices that insists regardless on expending huge amounts of its treasury on upgrading its military, on modernizing its military infrastructure, and purchasing unwholesome amounts of armaments doesn't present a comforting picture for the future. Your own people aren't tickled pink at their growing unemployment rates and feckless government impositions.

Haven't you anything better to do with yourselves in this troubled world? Take a step back, and reconsider your generous support for Iran's nuclear program. Do we take it that Iran's irascible aggression toward the rest of the world is a reflection of your own? Unremarkably, or remarkably as the case may be, Iran does not enjoy a high state of regard from her neighbours, either.

Do we know you by the company you keep, or do we know others' intent by the company they keep?

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The Bush owned economic crisis

Yes, Democrats participated in causing it.

William K. Black
Assoc. Professor, Univ. of Missouri, Kansas City; Sr. regulator during S&L debacle
As a white-collar criminologist and former financial regulator much of my research studies what causes financial markets to become profoundly dysfunctional. The FBI has been warning of an "epidemic" of mortgage fraud since September 2004. It also reports that lenders initiated 80% of these frauds. When the person that controls a seemingly legitimate business or government agency uses it as a "weapon" to defraud we categorize it as a "control fraud" ("The Organization as 'Weapon' in White Collar Crime." Wheeler & Rothman 1982; The Best Way to Rob a Bank is to Own One. Black 2005). Financial control frauds' "weapon of choice" is accounting. Control frauds cause greater financial losses than all other forms of property crime -- combined. Control fraud epidemics can arise when financial deregulation and desupervision and perverse compensation systems create a "criminogenic environment" (Big Money Crime. Calavita, Pontell & Tillman 1997.)
The FBI correctly identified the epidemic of mortgage control fraud at such an early point that the financial crisis could have been averted had the Bush administration acted with even minimal competence. To understand the crisis we have to focus on how the mortgage fraud epidemic produced widespread accounting fraud.
Don't ask; don't tell: book profits, "earn" bonuses and closet your losses
The first document everyone should read is by S&P, the largest of the rating agencies. The context of the document is that a professional credit rater has told his superiors that he needs to examine the mortgage loan files to evaluate the risk of a complex financial derivative whose risk and market value depend on the credit quality of the nonprime mortgages "underlying" the derivative. A senior manager sends a blistering reply with this forceful punctuation:…
These two documents are enough to begin to understand:
the FBI accurately described mortgage fraud as "epidemic"
nonprime lenders are overwhelmingly responsible for the epidemic 

the fraud was so endemic that it would have been easy to spot if anyone looked 

the lenders, the banks that created nonprime derivatives, the rating agencies, and the buyers all operated on a "don't ask; don't tell" policy 

willful blindness was essential to originate, sell, pool and resell the loans 

willful blindness was the pretext for not posting loss reserves 

both forms of blindness made high (fictional) profits certain when the bubble was expanding rapidly and massive (real) losses certain when it collapsed 

the worse the nonprime loan quality the higher the fees and interest rates, and the faster the growth in nonprime lending and pooling the greater the immediate fictional profits and (eventual) real losses 

the greater the destruction of wealth, the greater the (fictional) profits, bonuses, and stock appreciation
Black: The Best Way to Rob a Bank is to Own One.

Read the entire post
http://www.huffingtonpost.com/william-k-black/the-two-documents-everyon_b_169813.html

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Will Germany aid Ireland or the East tomorrow?

The German government, its constitutional court permitting, has shown itself almost desperate to gain the ratification of the Lisbon Treaty. A report in the Irish Times a couple of days ago hinted that aid would thus be forthcoming to the crumbling Irish economy, whose plight within the euro currency zone is vividly illustrated by shoppers daily pouring north across the border, while businesses in the Republic stagnate or collapse. Any help pledged by Germany, however, is likely to come at great cost to the former "tiger economy", a quote from the linked article:

German officials suggested yesterday that help for Ireland could be conditional on changes to its corporate tax regime, long a thorn in Berlin’s side.

The Economist
, once well-informed and insightful, in its Leading Article this weekend plumps for the EU problems necessary for resolution at tomorrow's unusual Sunday meeting as all being centred to the East of the single currency zone.

Both are probably correct, the countries outside the euro zone are doomed to suffer grave economic problems as much as are those within. Is the EU of any relevance at all in this global crisis? Tomorrow will be a testing time for those who have sold their citizens down the river to this bureaucratic and cumbersome monstrosity. This blog will have its normal insightful analysis as and when the limited facts are allowed to trickle through to the oppressed citizenry of the EU!

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Eighty billion poison pill for Llyods in HBOS accounts.




This blog stated from the start that HBOS would destroy Lloyds, it repeated the warnings throughout the long run-up to the final take-over just one month ago and noted concern at Legal and General in particular having supported the merger on 20th October last year, here, and again on 22nd November, linked here.

The report that the books of HBOS contain debts of 80 billion pounds Lloyds considers unacceptable is from The Independent this morning, linked here. It hardly comes as a surprise and if anything probably still understate the situation as things continue to deteriorate at a far faster pace than Lloyds even now anticipates - witness the US fourth quarter GDP shrinkage adjusted yesterday from minus 3.8 per cent to minus 6.2 per cent.

The UK media continues to be distracted by one individual's excessive pension while one opposition party leader remains in mourning having neglected his political duties for years and another even more pathetically continues on paternity leave! It is generally accepted that the nation's Prime Minister and Chancellor of the Exchequer are drowning, apparently (as illustrated above from the Anglo Saxon Chronicles blog) while atop the shoulders of English taxpayers.

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Irish Government to limit anti-Lisbon fundraising for 2nd Referendum

The report of the Irish Government's plans, no doubt only considered under EU coercion, is in this morning's Irish Times, linked here.

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February 27, 2009

Psychopathic Exploiters

Hard to believe, but they exist, the scum of the earth, those bottom-feeders that seem to take some kind of deranged pleasure in the misery of others.

They're the ones who shout out encouragement at desperately miserable people threatening to commit suicide. They're the ones who give handy advice to the mentally disturbed, in the interests of furthering their disturbed state of mind. They are those bereft of empathy for others, seeking pleasure in witnessing human despair at the lowest ebb of existence.

They're the enablers, the exploiters, the encouragers of human misery. Preying on the unbalanced minds of insecure and socially depressed people, lonely and looking for understanding and a few words of solace. Finding instead, those who craftily present as empathetic to their plight, all the while they skilfully manipulate the uncertainty and vulnerability of those living on the edge of unbalanced psychic turmoil.

Chance encounters through Internet connections can have devastating ultimate consequences for those whose social and self-protective antennae have been impaired through mental illness or hormonal imbalances, leaving them easy prey for the game-playing of social misfits comprehending the damage their malicious interventions will produce, and revelling in the outcome. A tragedy for the other, a triumph for them.

In Ottawa, we've learned that police in Saint Paul, Minnesota have uncovered the Internet presence of a male nurse who portrayed himself as an 18-year-old woman, insecure and troubled, yet capable of friendly, concerned overtures to another 18-year-old insecure and troubled university student. One who divulged to the on-line presence her state of mind and her thoughts of suicide.

How fortunate for Nadia Kajouji that she happened to luck in to the friendship of a young woman so very much like herself, with the same troubling worries and concerns, and the same solution through which all those uncertainties could be obliterated. Along with their lives. This young woman, who was in actuality a 46-year-old man, resembled her in so many ways, understood her problems, sympathized, and wanted to help.

So much so that they discussed the most commonly-used method of suicide among young people in the United States, helpfully recommending that Ms. Kajouji take courage and embark on that option open to her to solve all her problems. Describing the method, the type of rope to be used to ensure success; the knot to be used, and enthusing about how simple it all was. In the end, Ms. Kajouji chose to drown herself.

This was, evidently, not the first time the suspect, yet to be arrested, became involved in such situations. But it may very well represent his first and perhaps only real success in persuading a young woman that she was on the right track in solving the problems of her life as a university student overwhelmed by situations she felt herself incapable of coping with.

Nadia Kajouji's grieving parents will be relieved to see William Francis Melchert-Dinkel arrested, charged, and brought to justice. If only to ensure that his vicious malice is out of commission, and shut away he will no longer present as a danger to vulnerable young people, not knowing where to turn for help.

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Reactive Revulsion

There's an editorial in the Ottawa Citizen, tut-tutting about the unreasonableness and crude discrimination revealed through the fact that a retired Ontario judge, Paul Staniszewski, has given orders that no Muslim students be funded by scholarship opportunities his endowment to York University and the University of Windsor affords to eligible students.

Well, it's unfortunate, actually. The simple fact is that when a gift is given, the intent should be altruistic; morally and ethically it is given to the gifted to do as they deem most advantageous for the matter at hand. And, in any event, to single out an ethnic or religious or political or ideological identity as a handicap and an impediment to eligibility just doesn't seem fair, does it?

If the student exhibits all the academic credits and qualifies in all other respects for eligibility considerations for scholarship funding, then that should be that, in all fairness. On the other hand, there's this: We've been learning in Canada, within Canadian universities, unions and other academic affairs that not always is the just and fair way recognized, nor followed.

It's rather nasty that an academically qualified student be disqualified because, simply because he is Muslim. That's an errant diversion from Canadian values of equality and freedom and respect for others. Do we have any idea why Mr. Staniszewski reached the conclusion that he found it repugnant that any of the money he granted the university assist in the career aspirations of a young Muslim student?

Was it a general revulsion at the global presence of Islamic jihadists threatening world stability, coursing through countries both Islamic and not, leaving corpses in their wake, and inspiring terror through the bloody-thirsty promises of revenge against the various Satans? Or might it have been his distaste and irritation at seeing university campuses high-jacked by Muslim student groups, stridently and viciously condemning Israel for its 'apartheid' polices, and intimidating Jewish students?

Might this tactic be a measured and well considered one, as a way of attempting to reason with Arab and other Muslim students, to alert them to the fact that their methods are incendiary, brutal and quite unappreciated, and that which they sow can come back to haunt them? Why is it all right for students within Canada from a Muslim culture and heritage to impress upon the general population their hatred for Israel and Jewish students?

Why can it be accepted that Jewish students are forced to protect themselves from assaults both verbal and physical, and for the rest of us to put up with hearing slogans like "Death to the Jews", while someone whose generosity funds academic opportunities for students, deciding to make exceptions for those who disrupt and demean others - even if it's symbolic and doesn't impinge on the malefactors necessarily - is seen to be practising 'discrimination of the worst kind'.

"Discrimination of the worst kind", in insisting that a personal endowment not be used to further the academic aspirations of one of a group who deny equality and respect to others on campus, and who threaten their well being? I think not. To declare that this constitutes the worst kind of discrimination is, in fact, practising a double standard.

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Arrogant John Prescott demands Goodwin's pension be forfeit for arrogance

Former Deputy Prime Minister John Prescott who has gorged himself ever fatter and stupider at the public trough for decades, now demands the almost seven hundred thousand pound annual pension of Sir Fred Goodwin who ran the RBS into the ground, be seized on the grounds (amongst other things one presumes) of his arrogance.

Hear it live from Listen Again of Radio 4 , from here or read about it in The Guardian here.

Former Labour Cabinet Ministers with their huge perks and expenses AND PENSIONS, bearing in mind their long record of failure and incompetence growing ever greater with each passing day, should be very careful what they wish for!

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Creative dream bed pillows - 7Pics









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Smart cellar - 4Pics





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Somali cars for VIP persons - 8Pics










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February 26, 2009

The Right To Speak

As Arab Canadians, insists Khaled Mouammar, national president of the Canadian Arab Federation, he and his group have every right to speak out against what he and they discern as 'lopsided media coverage of the Arab-Israeli conflict' and to 'challenge negative media depictions of Arabs as corrupt and barbaric proponents of terrorism.' These are mendacious stereotypes, that exist to characterize Arabs as what they are not, and it is the duty of the Canadian Arab Federation to challenge them.

Who could disagree with anyone's right to defend themselves from what they feel are errantly discriminatory descriptions of character, culture and tradition? By all means speak out, speak up, and defend. Of course the perception that media coverage of the Israeli-Arab conflict is tainted is a subjective one, and there might not be complete agreement with that.

In fact, it's a fairly good bet that Jews feel often enough that news is canted in favour of the Arab position. It's in the eye and perception of the beholder; a human enough trait. And this country celebrates its freedoms to express opinions and contest others' expressions if they're felt to be inimical to one's self-esteem, or denials of reality.

There should be fairly general agreement that the world at large has been treated, particularly of late, say the past several decades, to outrageous examples of fanatical Arab and Muslim brutalities. And they have been pervasive, and fairly frequent, and occur throughout the world, in areas of conflict and within and without countries, both near and far.

Attacks by fundamentalist jihadists have become startlingly commonplace in the West; both viciously verbal and homicidally final. Attacks targeting both moderate Muslim civilians and Western targets at large. Little wonder that Arabs and Muslims feel themselves slandered; it's an unfortunate impression indeed.

Within Canada, however, the debate tends to be rather more civilized, more sedate, more conservative. There does occur from time to time, observations that may seem to be culturally cutting, claims being made that appear to smear in a wide arc rather than a careful selectivity impacting on the minority of fanatics that cause huge problems not only to the Muslim community but the larger world as well.

Countering that reality, vicious portrayals of other countries' attempts to defend themselves from fanatically aggrieved groups, and then displaying an outreach of denunciations encapsulating an entire ethnic group, and violently intimidating and harassing an ethnic-cultural-religious student body does not accurately reflect what Canadians accept as our social contract and values in mutual respect.

Jewish students, for example, do not form posses of accusers, lift aloft flags and banners of terror groups, display cruel caricatures of a purported enemy, and shout "death to the Arabs" or "death to the Muslims". This type of socially dysfunctional and vicious display of hatred owes its presence to the representatives and supporters of the Canadian Arab Federation, exclusively.

So, yes, Mr. Mouammar, while you do indeed have the right to speak out in protest, you do not really have the right to foment an atmosphere of violent accusation and demonstrable hatred against other, very identifiable groups. And although you claim that criticism of Israel does not, in your opinion, represent anti-Semitism, your youth cadres, supported by your organization, do express their anti-Semitism by their rallying cry of "kill the Jews".

If the CAF truly does seek to engage in useful debates, do it in a civilized forum with due respect to all parties. At which time you will gain the respect due you as Arab-Canadians capable of extending civil courtesies to other ethnic groups within this great country. It's civil discourse, and it's the Canadian way.

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Keynes The Optimist

Keynes, I think before he said that in the long term we're all dead, in Economic Possibilities for our Grandchildren, a short paper presented before students of, according to Bob Solow, a less-snotty-than-Eton public school, Winchester, wrote:
We are suffering just now from a bad attack of economic pessimism. It is common to hear people say that the epoch of enormous economic progress which characterised the nineteenth cen­tury is over; that the rapid improvement in the standard of life is now going to slow down ‑-at any rate in Great Britain; that a decline in prosperity is more likely than an improve­ment in the decade which lies ahead of us.

I believe that this is a wildly mistaken inter­pretation of what is happening to us. We are suffering, not from the rheumatics of old age, but from the growing‑pains of over‑rapid changes, from the painfulness of readjustment between one economic period and another
I think this is relevant to current world economic affair, as well as to Indonesia.

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The Failure of NCLB

This is time for a change for our society and in our schools. We face a marked crises in the economy, the banking system, government, politics, families, communities and in the schools.
All children deserve a good education to participate in our democracy. Lack of education is a ticket to economic hardship. The more years of school that a student completes, the more money they are likely to earn as adults and the better their chance to get and keep a good job. Unemployment is highest among school dropouts as is incarceration for crimes.
We need to invest in urban schools, provide equal educational opportunities in these schools, and to recruit a well prepared teaching force that begins to reflect the student populations in these schools. We must insist on equal opportunity to learn, without compromise.
The No Child Left Behind Law

The school reform movement from 1983- 2008, including NCLB, was largely driven by corporate goals and corporate thinking. Corporate rule was established through the corporations influence and contributions to elected officials and their funding of “research” institutes. (Emery, 2007) This corporate view of school reform –called neo liberalism in economics- came to dominate the media and the government. Non corporate goals such as freedom, extending democracy, equal opportunity were driven from the curriculum and driven from the reform packages.
The corporate view, or neo liberalism , is more than an economic policy. It is also a political project which considers people primarily as consumers and negates or limits their view as citizens and as political actors. A glaring example of this is the development of charter schools and the vast expansion of private for profit higher education, ie. National Univesity, University of Phoenix, etc. As Robert Reich argues in Supercapitalism : the Transformation of Business, Democracy and Everyday Life , democracy ( including in school policies) has been over whelmed by capitalism and the corporate culture. The U.S. has experienced a corporate take over of our politics ( Reich, 2007). Corporate interests presently hold the majority of power in Washington and they established and protect the No Child Left Behind Law with its emphasis on testing and accountability. As corporate domination grows, non corporate institutions like schools and unions lose their access to the media and to the public conversation about schools and democracy as well as multiculturalism. Neoliberalism takes money from public systems, such as public schools, and transfers that money to private consumption thus public institutions lose resources. Developing democracy requires one form of education, pursuing neoliberalism requires a very different form of education. And, at present, clearly the neo-liberal agenda is winning particularly as advanced in law in the No Child Left Behind act of 2001 and stalled for re-authorization in 2008.

President Bush worked with political leaders in both parties to pass PL 107-110 - The No Child Left Behind Act In 2001. He considers it one of the major victories of his tenure. NCLB made assessment based reform (testing) and accountability the central components of a new national policy on school reform. The results of NCLB and the accountability drive are now in: like Katrina relief, NCLB has been a dismal failure.
On national tests given by the U.S. Department of Education, student achievement is either flat (as in 8th grade reading) or has improved less than in the days prior to NCLB. NCLB is bad policy because it is punitive to schools. It has caused nearly 40% of the nation's schools to be labeled "failing," and by 2014 over 90% of the schools will be declared to be failing. It is stupid to not recognize the differences between really failing schools and schools that are doing quite well. Under NCLB when a school is struggling, there is little help on the way, just more tests, more punishment: Fire the staff; close the school; turn the school over to private entrepreneurs (profiteers) , etc. 

Rather than facing the inequality of resources between schools, the NCLB imposed school reform efforts stress standardized testing. Current testing measures the ability to memorize small bits of information. It cannot measure critical thinking skills, the ability to function in a community or commitment to democratic principles. NCLB Testing has not improved schools, improved school funding, nor improved teaching.
NCLB and its state by state equivalents argue that the education system should operate primarily in service of the economic system. This is a business model of public schools, and we can see how well business is operating in the finance, credit, and banking system. This corporate view of school reform –called neo liberalism in economics- came to dominate the media and the government.
A substantial opposition to the re-authorization of NCLB developed in 2008. Its passage was blocked in Congress . NCLB will be re-written and re-authorized in 2009. NCLB testing does not, unfortunately, provide teachers with useful information on what to do to improve student learning and instruction. It also does not provide resources to improve the schools while it ignores the substantial inequality of resources in both schools and neighborhoods.
NCLB required that states develop their own standards and tests and that states must use test scores to determine if children are learning grade level skills in mathematics and reading. These requirements led to a narrow test driven curriculum which emphasizes reading and math in the early years.
According National Assessment of Education Progress (NAEP) data there has been little improvement in student reading scores and only a small improvement in math scores. In California, with its large ELL population, there has been no measured improvement in scores by ELL students . At the same time The U.S. has one of the highest rates of high school drop outs in the industrialized world as well as one of the highest rates of incarceration for young people, particularly African American and Latino males.
The Bush Administration used NCLB sanctions including shifting money from public schools to private charters to respond to failing to raise test scores. The new Obama Administration has appointed Arne Duncan, as Secretary of Education and Russylynn Ali, as director of the Civil Rights division of the department. Both believe that more testing, not less testing, will improve schools.
The U.SA. spends less per student than 16 other modern industrialized countries . And, California spends less per pupil than 47 other states when you adjust the figures for cost of living differences. The recent California budget crisis, where schools were again cut by over $ 11.6 billion dollars demonstrates the failure of the political system to adequately fund some of our schools.
Let us be clear about the reality of schools in our nation. Some middle-class schools could benefit from reform, but most middle-class schools work rather well. Most schools in urban areas, however, are unable to provide the equal educational opportunity. There will be no significant change in the quality of urban education without substantial new funds allocated to these schools. In the current economic crisis, while federal funds are being added, state funds ( over 80% of the school budget) are being cut. There will be no substantial school reform under these budget conditions.
When schools succeed for the middle class and fail for working-class students and students of color, schools contribute to a crippling division along economic and racial lines in our society.

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Amazing road Art - 8Pics

Imagine the reaction of local residents :)









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Philippine Eagle (Monkey-eating Eagle) - Video

The Majestic Philippine Eagle crowned by a royal head crest like a Lion's mane. In spite of a seven-foot broad wingspan flying low, navigating in steep dense rainforest.



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Worst movie special effects - 3 Very Funny Videos

I never seen such a terrible Special FX
See the videos!




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Amazing beer bottle dominoes

Tipping over a line of dominoes is satisfying...if you're a tween. For the newly unemployed, armed with a permanent buzz AND time on your hands, this is the time pass you're looking for... See the Video


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What can be done from Kentucky fried chicken - 4Pics

Creative Kentucky fried chicken







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Brown politically controlled the FSA

The unsurprising but politically disgraceful truth that Brown interfered with the regulation of the now bankrupt banks came out in a Commons Committee yesterday, read the report in the Telegraph, linked here.

Labour MP should now have no alternative other than to depose Gordon Brown.

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Gun n Girls - 48Pics

















































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