Tuesday, September 16, 2008

Avoiding Labor Conflicts

Avoiding Labor Conflicts

The time is fast coming when the controlling power of the labor unions will be very oppressive. Again and again the Lord has instructed that our people are to take their families away from the cities, into the country, where they can raise their own provisions; for in the future the problem of buying and selling will be a very serious one. We should now begin to heed the instruction given us over and over again: Get out of the cities into rural districts, where the houses are not crowded closely together, and where you will be free from the interference of enemies.--Letter 5, 1904. {2SM 141.1}

Avoid Party Strifes

Men have confederated to oppose the Lord of hosts. These confederacies will continue until Christ shall leave His place of intercession before the mercy seat, and shall put on the garments of vengeance. Satanic agencies are in every city, busily organizing into parties those opposed to the law of God. Professed saints and avowed unbelievers take their stand with these parties. This is no time for the people of God to be weaklings. We cannot afford to be off our guard for a moment.--Testimonies, vol. 8, p. 42 (1904).

The trades unions will be one of the agencies that will bring upon this earth a time of trouble such as has not been since the world began.--Letter 200, 1903.

Conflicts Between Trade Confederacies and Labor Unions


The work of the people of God is to prepare for the events of the future, which will soon come upon them with blinding force. In the world gigantic monopolies will be formed. Men will bind themselves together in unions that will wrap them in the folds of the enemy. A few men will combine to grasp all the means to be obtained in certain lines of business. Trades unions will be formed, and those who refuse to join these unions will be marked men.--Letter 26, 1903.

Preparing for the Issue

The trades unions and confederacies of the world are a snare. Keep out of them, and away from them, brethren. Have nothing to do with them. Because of these unions and confederacies, it will soon be very difficult for our institutions to carry on their work in the cities. My warning is: Keep out of the cities. Build no sanitariums in the cities. Educate our people to get out of the cities into the country, where they can obtain a small piece of land, and make a home for themselves and their children....

Our restaurants must be in the cities; for otherwise the workers in these restaurants could not reach the people and teach them the principles of right living. And for the present we shall have to occupy meetinghouses in the cities. But erelong there will be such strife and confusion in the cities, that those who wish to leave them will not be able. We must be preparing for these issues. This is the light that is given me.--General Conference Bulletin, April 6, 1903.

To Preserve Our Individuality

For years I have been given special light that we are not to center our work in the cities. The turmoil and confusion that fill these cities, the conditions brought about by the labor unions and the strikes, would prove a great hindrance to our work. Men are seeking to bring those engaged in the different trades under bondage to certain unions. This is not God's planning, but the planning of a power that we should in no wise acknowledge. God's Word is fulfilling; the wicked are binding themselves up in bundles ready to be burned.

We are now to use all our entrusted capabilities in giving the last warning message to the world. In this work we are to preserve our individuality. We are not to unite with secret societies or with trades unions. We are to stand free in God, looking constantly to Christ for instruction. All our movements are to be made with a realization of the importance of the work to be accomplished for God.--Testimonies, vol. 7, p. 84 (1902).

In Disregard of the Decalogue

These unions are one of the signs of the last days. Men are binding up in bundles ready to be burned. They may be church members, but while they belong to these unions, they cannot possibly keep the commandments of God; for to belong to these unions means to disregard the entire Decalogue.

"Thou shalt love the Lord thy God with all thy heart, and with all thy soul, and with all thy strength, and with all thy mind; and thy neighbour as thyself" (Luke 10:27). These words sum up the whole duty of man. They mean the consecration of the whole being, body, soul, and spirit, to God's service. How can men obey these words, and at the same time pledge themselves to support that which deprives their neighbors of freedom of action? And how can men obey these words, and form combinations that rob the poorer classes of the advantages which justly belong to them, preventing them from buying or selling, except under certain conditions?--Letter 26, 1903.

Unions that are Formed or shall be Formed


Those who claim to be the children of God are in no case to bind up with the labor unions that are formed or that shall be formed. This the Lord forbids. Cannot those who study the prophecies see and understand what is before us?--Letter 201, 1902.

Selected Messages, E G. W., Book II, pp. 142-144.

Bolds and Highlights added for emphasis........... Arsenio.

Psalm 67



1God be merciful unto us, and bless us; and cause his face to shine upon us; Selah.

2That thy way may be known upon earth, thy saving health among all nations.

3Let the people praise thee, O God; let all the people praise thee.

4O let the nations be glad and sing for joy: for thou shalt judge the people righteously, and govern the nations upon earth. Selah.

5Let the people praise thee, O God; let all the people praise thee.

6Then shall the earth yield her increase; and God, even our own God, shall bless us.

7God shall bless us; and all the ends of the earth shall fear him.

Monday, September 15, 2008

Some South Florida Gas Stations Running On Empty

Governor Denies Fuel Shortage

POSTED: 9:06 pm EDT September 15, 2008
UPDATED: 9:42 pm EDT September 15, 2008

MIAMI -- Even though Hurricane Ike hit more than 1,000 miles away from Florida, it hit the fuel supply that fills South Florida.

Video: Some South Florida Gas Stations Running On Empty

The pumps at a BP gasoline station in Pembroke Pines sported signs saying they had no gasoline. Most BP stations are on empty, while many others are running low. Not only is Hurricane Ike pounding the gasoline supplies, but Hurricane Gustav also kept freighters from leaving the Gulf Coast and delivering gasoline to Port Everglades.

While many gasoline stations are out of gas, Florida Gov. Charlie Crist denied that there was a fuel shortage in South Florida.

"There's plenty of fuel for the people of Florida," Crist said this past weekend.

Max Alvarez of Sunshine Gasoline Distributors said the pumps should be refilled at the empty gasoline stations within the next few days.

Many independent gasoline stations, such as Marathon and Valero, are also having problems keeping their pumps full.

BP officials said they were checking all their rigs along the Gulf Coast, but it could be another week before any ships set sail for Florida.

Source: http://www.nbc6.net/news/17481303/detail.html

Russian bombers land in Venezuela as Kremlin flexes muscle

From Times Online
September 11, 2008

Hugo Chavez attends the inauguration of a state-run medical center in Caracas (Miraflores Press Office/AP)

(Miraflores Press Office/AP)

Hugo Chavez has welcomed the arrival of two Russian bombers in Venezuela

Image :1 of 2

Two Russian strategic bombers have landed in Venezuela for military manouevres, as the Kremlin flexes its muscle amid a tense standoff with the United States over the war in Georgia.

Venezuelan President Hugo Chavez said the two Tupolev Tu-160 bombers had arrived in the country last night and that he hoped “to fly one of those things”. The deployment was part of a move towards a “multi-polar world”, he said in a televised address, adding: “The Yankee hegemony is finished.”

Military analysts said it was the first time Russian strategic bombers have landed in the Western Hemisphere since the Cold War. The provocative foray into what has traditionally been America’s backyard comes just days after Russia and Venezuela announced plans for a joint military exercise involving a nuclear cruiser in the Caribbean, and is certain to ratchet up tensions between Moscow and Washington.

The Russian Defence Ministry said the bombers flew to Venezuela on a training mission and would conduct training flights over neutral waters in the next few days before returning to Russia, according to a statement carried by Russian news wires.

NATO fighters tracked the bombers on their 13-hour trip to Venezuela over the Arctic and Atlantic Oceans, the ministry said.

The tracking planes came “dangerously close” at points, Vladimir Drik, a spokesman for the Russian Air Force, said.

The planes - huge supersonic combat aircraft capable of carrying nuclear or conventional bombs and cruise and guided missiles - are currently at El Libertador air base in the northern town of Palo Negro, in Aragua state, according to sources in the Venezuelan defence ministry.

Mr Drik said there were no nuclear weapons on board the planes. However defence spokespeople refused to say whether any other type of weapons were being carried.

Despite denials from the Russian foreign ministry, the deployment appeared to be a tit-for-tat response after the US sent warships to deliver aid to its ally Georgia, following its war with Russia last month. NATO has also been conducting war games in the Black Sea, a move Moscow has denounced as part of a Western military build-up on its doorstep.

“This is a redux of Cold War games, and a dangerous thing to do,” Moscow-based military analyst Pavel Felgenhauer said. “It will only strengthen the hand of those in the United States who want to punish Russia for its action in Georgia.”

Earlier this week, Russia said it will send a naval squadron and long-range patrol planes to Venezuela in November for a joint military exercise in the Caribbean. Among the ships involved will be the heavy nuclear-powered guided missile cruiser Peter the Great, a vessel with massive firepower whose cruise missiles can deliver nuclear or conventional warheads.

Thomas Gomart of the Paris-based French Institute of International Relations noted that, up to now, Russia had contented itself with selling arms, notably fighter-bombers, to Caracas. But the announcement of the Caribbean manoeuvres seemed to be both an overt challenge to US power and a gesture of support to Mr Chavez's socialist policies.

Alexander Konovalov, head of the Moscow-based Institute for Strategic Assessment, said the deployment would lead to further deterioration in U.S.-Russia relations.

“It’s a demonstration of Russia’s ability to do things nasty: You send warships to the Black Sea and we send bombers next to your door,” Mr Konovalov said. “It will have a negative impact on global stability.”

NATO said yesterday that it had ended a routine exercise by four naval ships in the Black Sea. The alliance said the four ships - US frigate USS Taylor and three similar vessels from Spain, Germany and Poland - were moving back to the Mediterranean Sea after the 18-day mission.

Mr Chavez, ever a vocal critic of what he calls the US “evil empire”, has strongly backed Russia’s stance in Georgia. But he denied that Russia’s plan for a deployment later this year was related to the conflict, saying the Russian navy’s visit had been planned for more than a year.

Venezuela remains a leading oil supplier to the United States, but as tensions with Washington have grown Mr Chavez has sought allies elsewhere, spending billions of dollars on Russian weapons including helicopters, Kalashnikov rifles and Sukhoi fighter jets.

The belligerent former army colonel said last night that Venezuela was looking to buy Russian submarines and was working with Russia to set up an air-defence system including long-range radar and “rockets ready to defend the country.”

He also announced the country will soon buy 24 Chinese-made K-8 flight training and light attack aircraft.

The socialist leader, who survived a failed 2002 coup he blames on Washington, repeated his accusations of US-backed attempts to kill him or topple him, saying US forces are “looking for active soldiers, looking for pilots to bomb Miraflores,” the presidential palace. F-16 bombers were already stationed on the nearby Caribbean Island of Curacao, he claimed.

Last night, a Chavez ally and TV host, Mario Silva, played a recording on state television of a purported phone conversation in which alleged conspirators discussed plans to overthrow the controversial president. Mr Silva the plotters were former military officers, but did not say whether any US involvement was suspected.

The US Embassy denied any such plans.

“The United States continuously strives for positive and productive relations with Venezuela,” Embassy spokeswoman Robin Holzhauer said. “Unfortunately, the Venezuelan government often responds to these open overtures with name-calling and storytelling. These Venezuelan actions are unfortunate for both of our countries.”

Mr Chavez has called the US Navy’s newly re-established Fourth Fleet a threat. On Wednesday, he said he’s sure “nuclear submarines pass under our noses" off Venezuela’s coast. He said Venezuela is aiming to strengthen its “defensive capability with our strategic allies, and Russia is one of them.”

Speaking later at the christening of a new coast guard patrol ship, Mr Chavez dismissed comparisons to the Cold War, saying:“What’s coming is a multipolar world in which Venezuela is a free country, that’s what’s coming."

His only reference to Cuba was as he explained how he had been reviewing flight theory in a simulator in hopes of flying one of the Russian planes.

Addressing his close friend Fidel Castro, Mr Chavez said: “I’m going to fly a Tu-160. Fidel, I’m going to fly low past you there.”

Source: http://www.timesonline.co.uk/tol/news/world/us_and_americas/article4731547.ece

The Fannie/Freddie Bailout: The End of the Beginning of the End

The Fannie/Freddie Bailout: The End of the Beginning of the End
By Michael E. Lewitt

Equity markets are rallying around the world this morning in the aftermath of the U.S. government's seizure of Fannie Mae and Freddie Mac. The rationale for this rally is that the government's open-ended commitment to support these two entities eliminates a huge cloud of uncertainty that was hanging over the markets. Naturally, HCM completely disagrees and believes this bailout is a sign of severe distress in the U.S. and global financial sector. While it provides short-term stability for the mortgage market, the bailout plan requires Freddie and Fannie to severely reduce their mortgage holdings in the future, removing two of the main liquidity engines from the housing market. Markets detest uncertainty, but this bailout leaves huge unanswered questions about how American home ownership will be supported in the future.

HCM still expects the Dow Jones Industrial Average to drop below 10,000 and potentially hit 9,000 before the full impact of this credit crisis is felt (i.e. most likely before mid- 2009). The Freddie/Fannie bailout is no reason to become a buyer of stocks except on a very short-term trading basis. This rally will be short-lived. Investors should use it to reduce exposure to financial stocks. Financial institutions' balance sheets are still significantly impaired. A significant part of today's buying will be related to short-covering by hedge funds that have been continually wrong-footed by the direction of the markets this year.

The seizure of Freddie and Fannie is another step on the way to unwinding the biggest credit bubble in history. The liquidation of the Mount Everest of mortgage debt, leveraged loans and other asset-backed securities that are weighing down the balance sheet of paralyzed financial institutions around the world has barely begun. While many of these institutions have reported some of their losses, that is a very different matter than selling these securities.

The markets have yet to see the rubber meet the road, so to speak, in terms of buyers and sellers agreeing on clearing prices for these hundreds of billions/trillions of dollars of securities. That is the next step that has to begin to happen for this crisis to begin to work itself out. The American model of debt-engorged free market capitalism is coming full circle and straining under its own weight. Fannie Mae and Freddie Mac were the epitome of the capitalism for-the-poor, socialism-for-the-rich policies that have been pursued by financial authorities in this country. Developed as a public-private partnership, these beasts were neither fish nor fowl.

While their equity was left in private hands and their stock-option incented management teams engaged in accounting fraud, they were able to fund themselves at below-market rates based on an implicit government guarantee of their debt. The U.S. government, particularly Congress, was fully complicit in permitting these companies and their managements to enrich themselves while abusing their unique charters. Apparently the final straw that led to the current conservatorship (translation: nationalization) was the "discovery" by the Treasury's financial advisor, Morgan Stanley, that both agencies were not marking their books properly.

The government was shocked, simply shocked to learn that these institutions were gaming the system by overstating the value of their mortgage holdings and delaying the recognition of losses and were in reality insolvent. As Christopher Wood wrote this morning, one of "the long-term consequences of the US Treasury's forced action is to lead to further decline in the moral authority of the US to lecture others on economic matters." The United States has become one big glass house, and it can no longer cast stones at others.

And indeed that is the point that HCM has been making over the past several months. The credit collapse can be laid directly at Wall Street's door. We do not say this because we like sounding churlish, but because what has occurred has real, negative long-term economic and political consequences. The cost of our unwise and corrupt policies has already been very high and it will continue to rise unless we act now to do better. Confidence in the American model of capitalism has been shaken with good reason.

Despite the rally of the dollar (mostly against the Euro, another compromised currency), the U.S. currency has been battered largely due to a loss of confidence in American economic policies and leadership. We continue to shift hundreds of billions of dollars out of our own coffers into those of countries that do not share our beliefs because we have moved too slowly to develop sound energy policies. In large part this is because our politicians remain indebted to an automobile industry that is on the verge of insolvency and to an energy industry that places its own interests ahead of the country's and the world's.

We have allowed our derivative markets - specifically those related to credit (i.e. credit default swaps) - to grow in a completely unregulated manner to the point where everybody is basically holding their breath and praying that a financial accident won't occur. This has occurred largely because it has been in Wall Street's interest to limit regulation of derivatives. But the time has come to stop allowing the fox to patrol the chicken coop. Just as it was completely foreseeable that Freddie and Fannie would fail, it is a certainty that we will face future crises if we continue to avoid difficult and unpopular choices or refuse to speak truth to power. How many wake-up calls do we need?

John F. Mauldin
johnmauldin@investorsinsight

Source: http://www.marketoracle.co.uk/Article6183.html

Financial Meltdown?





The Better Way




The Better Way

While temporal honor and riches and power are the great objects of ambition with the men of this world, the Lord points out something more worthy of our highest aspirations:

"Thus saith the Lord, Let not the wise man glory in his wisdom, neither let the mighty man glory in his might, let not the rich man glory in his riches: but let him that glorieth glory in this, that he understandeth and knoweth me, that I am the Lord which exercise lovingkindness, judgment, and righteousness, in the earth: for in these things I delight, saith the Lord. Behold, the days come, saith the Lord, that I will punish all them which are circumcised with the uncircumcised" (Jer. 9:23-25).

"Wherefore also it is contained in the scripture, Behold, I lay in Sion a chief corner stone, elect, precious: and he that believeth on him shall not be confounded. Unto you therefore which believe he is precious: but unto them which be disobedient, the stone which the builders disallowed, the same is made the head of the corner, and a stone of stumbling, and a rock of offence, even to them which stumble at the word, being disobedient: whereunto also they were appointed. But ye are a chosen generation, a royal priesthood, an holy nation, a peculiar people; that ye should shew forth the praises of him who hath called you out of darkness into his marvellous light" (1 Peter 2:6-9).

"Wherefore gird up the loins of your mind, be sober, and hope to the end for the grace that is to be brought unto you at the revelation of Jesus Christ; as obedient children, not fashioning yourselves according to the former lusts in your ignorance: but as he which hath called you is holy, so be ye holy in all manner of conversation; because it is written, Be ye holy; for I am holy. And if ye call on the Father, who without respect of persons judgeth according to every man's work, pass the time of your sojourning here in fear: forasmuch as ye know that ye were not redeemed with corruptible things, as silver and gold, from your vain conversation received by tradition from your fathers; but with the precious blood of Christ, as of a lamb without blemish and without spot" (1 Peter 1:13-19).--Pamphlet published in 1893, Should Christians Be Members of Secret Societies?

Selected Messages II, Elen G. White, pp. 138-139.

Amadeo Peter Giannini founder of Bank of America...

Amadeo Peter Giannini
- Founder of Bank of America (frmr. Bank of Italy); President Transamerica Corporation


Quote
Giannini, Amadeo Peter
Born in 1870. Giannini, who in 1904 founded Bank of America in San Francisco, originally called Bank of Italy (until 1930), virtually invented branch banking. Giannini's bank was "for the little fellows" at a time when banks generally lent only to the wealthy. Giannini's first foray east was to reach across the continent to form the East River National Bank in New York City in 1919. He then bought the Bowery National Bank in 1925 and New York's small Bank of America in 1928. In 1928, banker Giannini formed Transamerica Corporation as a holding company for all his Californian interests. Transamerica Corp. held 99% of the stock of Bank of America and it continued buying up banks in Oregon, Nevada, Washington and Arizona. Right after Transamerica was created, Giannini retired to Italy. He put New York banker Elisha Walker, who headed Blair & Co. until it was taken over by Transamerica in March 1929, in charge as CEO. Elisha Walker was a director of American International Corp., once set up by the Morgans and Rockefellers, together with Percy Rockefeller, Pierre du Pont, Otto Kahn, William Woodward (director NY Fed), and George Herbert Walker (father of Prescott). Elisha became a senior partner in Kuhn Loeb & Co. in 1933, which was managed by Felix Warburg (Pilgrims Society family; 18% interest) and Otto Kahn (Pilgrims Society; 14% interest), successors to Rothschild agent and Pilgrims Society member Jacob Schiff. Elisha held 13% of the bank's stock in 1933, the same amount as John Schiff, son of Jacob Schiff. In the 1960s, after Giannini's death, Bank of America even became larger than First National City Bank and Chase Manhattan of Wallstreet. Giannini was a great admirer of FDR's New Deal. Lawrence Mario Giannini, son of founder Amadeo Peter Giannini, was elected president of Bank of America in 1936. In 1945, Bank of America became America's largest bank, with assets of $5 billion. A.P. Giannini died in 1947. In 1953, regulators succeeded in forcing the separation of Transamerica and Bank of America.

http://www.thunderministries.net/Oneworld/worshippers_of_moloch.htm
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Bank of America founder A.P. Giannini in 1929

http://www.time.com/time/time100/builder/profile/giannini.html
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Nationality: United States
Executive summary: Founder of Bank of America

Son of immigrants from Genoa, and worked as a partner in his stepfather's grocery business until 1901. After experiencing banking at the Bank of Columbus in the North Beach part of San Francisco, he and several others founded the Bank of Italy in 1904, later becoming the Bank of America. Giannini's revolutionary idea was to lend money to working class people, an entire class of people who were deemed by banks at the time as uncreditworthy. He was able to keep his bank open in the aftermath of the 1906 earthquake, while many other banks were forced to fold. He build Bank of America into the nation's first statewide branch-banking system. Also founded Transamerica as a holding company.

http://www.nndb.com/people/380/000094098/
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Beautifully engraved specimen from the Transamerica Corporation. This historic document was printed by the Security Banknote Company in 1929 and has an ornate border around it with a vignette of an allegorical woman between two globes. The certificate has the printed signature of the company's president, A.P. Giannini.

http://www.scripophily.net/trancor1.html
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History of Transamerica Corporation

Transamerica Corporation is involved, largely through semi-independent subsidiaries, in life insurance, financial services, and real estate services. Through its Transamerica Life Insurance Companies subsidiary, it is the eighth-largest life insurer in North America, and its life insurance operations generated 48 percent of Transamerica's 1994 earnings. Financial services operations generated 40 percent of 1994 earnings, and centered around consumer and commercial lending, as well as the leasing and managing of transportation equipment. Transamerica Financial Services ranks fourth in the United States in consumer lending; Transamerica Commercial Finance is a leading commercial lender in the United States and the largest in Canada; Transamerica Leasing has the second-largest fleet of container equipment for rail, steamship, and motor carriers in the world. Real estate services comprise Transamerica's smallest general area of operation, with 12 percent of 1994 earnings. Transamerica Real Estate Tax Service is one of the leading real estate tax operations in the United States, while Transamerica Realty Services oversees a real estate and mortgage portfolio that includes the holdings of both Transamerica's parent company and its subsidiaries.

When Peter Amadeo Giannini, the son of Italian immigrants, began dreaming of his career in turn-of-the-century San Francisco, he had not set his heart on building a banking empire. Instead, at the age of 12 he was sneaking out of his home at night to work in his stepfather's produce business and, by the age of 19, was a full partner. His early success at this business allowed him to retire at the age of 31 with a modest, but comfortable, fortune. His foray into the banking world did not begin until several years later when he received a legacy from his father-in-law, Joseph Cuneo, who had made Giannini a director of his Columbus Savings and Loan Society, a building and loan association in San Francisco. Giannini's career in banking lasted for over forty years, and during this time he established the Transamerica Corporation.

After Giannini was appointed a director of Columbus Savings and Loan he became immersed in a number of disagreements with other directors of the bank over policy issues. He consequently left the Savings and Loan Society and established his own banking business which was located directly across the street from Columbus Savings and Loan. Giannini organized the Bank of Italy with $150,000 in capital contributed by his stepfather and ten friends. He envisioned the bank as an institution for the "little fellow," and the bank subsequently made loans to merchants, farmers, and laborers who were mostly of Italian descent.

Ironically, the San Francisco fire and earthquake of 1906 established Giannini's reputation in the banking world. As he stood amid the rubble of his bank on the morning of the earthquake, he was able to salvage over $2 million in gold and securities. In order to avoid the looters who were running through the city, he hid his bank's resources under piles of vegetables in a horse-drawn cart borrowed from his former produce business. Giannini immediately alerted his depositors that their savings were safe and began making loans to businessmen who had lost their savings and their companies.

Giannini's success as a banker is also clearly evidenced by his anticipation of the 1907 stock market crash, and his accumulation of gold before the crash. When the crash came Giannini was able to pay his depositors in cash while other banks were using certificates for cash. From this experience, Giannini realized that only larger banks would ensure security, and therefore he began purchasing small banks and converting them into branches of the Bank of Italy. With these acquisitions Giannini established the first branch banking policy in California.

The Bank of Italy grew so rapidly that by 1919 Giannini was able to form Bancitaly Corporation to organize the expansion. In 1928 Bancitaly Corporation was followed by Transamerica Corporation, which was formed as a holding company for all Giannini's banking, insurance, and industrial concerns.

Giannini's expansion into other areas of the financial services had established him as a leader in the financial services field. By 1929 he had moved into the New York banking scene and purchased the solidly established Bank of America. The following year after this important acquisition, all of Giannini's banks were consolidated into Bank of America National Trust and Savings Association. Transamerica played the role of parent company throughout this period.

In 1931, just a year after the consolidation of his banks under Bank America, Giannini retired and left the top post to Elisha Walker, a Wall Street investment banker. Walker did his best to break up this "empire" created by Giannini. Not surprisingly, Giannini forced Walker out in what was called a "furious proxy battle" at the 1932 annual meeting.

During the previous few decades Giannini's operations had been closely observed by both Wall Street and regulatory branches of the U.S. government; Giannini's success had found critics within both these institutions. Throughout the 1930s Transamerica experienced problems with regulatory procedures and changes enacted by the government. In 1937 Transamerica sold 58 percent of its stock in Bank America, although it still controlled the board of directors. At the time of his death in 1949, Giannini was embroiled in a fight with the Federal Reserve Board as to whether or not Transamerica had violated the Clayton Anti-Trust Act in creating a "credit monopoly" by placing directors on the boards of banks in the huge chain owned by Bank of America. It was the Reserve Board's belief that Transamerica still controlled the bank even after the 1937 split.
[...]

http://www.referenceforbusiness.com/history...merica-Corporation.html
Quote
1929
[...]
-- The Vatican awards Knighthood in the Order of Malta to two San Franciscans, Transamerica Corporation President Amadeo Peter Giannini and American Trust Company President John S. Drum. The knighthood is the oldest and most distinguished decoration of laymen conferred by the Catholic Church.

http://www.sfgate.com/cgi-bin/article.cgi?f...M151.DTL&type=printable
Circumstantial evidence:
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In the 1930’s, the Illuminati’ Bank of America financed Walt Disney. Years before, the Bank of America had been quietly created from Bank of Italy which was controlled by the same oligarchy that has run the Knights of Malta and renaissance Venice. The Bank of Italy was a powerful bank in Hollywood’s first years. It’s representatives A.P. and Atillo Giannini financed Walt during the 1920’s with petty cash to keep him going, but not enough to get him out of financial bondage.

http://www.thewatcherfiles.com/bloodlines/disney.htm
Below is an excerpt from a very recent email exchange I had with researcher Eric Jon Phelps in which I requested him for further evidence of SMOM membership of Giannini. Although he could not give any, he did submit evidence regarding the remarkable affinity the Jesuit Order has with the Bank of America, which they funded right from its very inception. Here's what Phelps wrote:
Quote
Here is a quote from Avro Manhattan in his The Vatican Billions (1983), pp. 183-184, 191, 216, 220:

"The most important order, however, as a true religious order, in terms of importance and of influence, is that of the Jesuits. The Society is paramount in the educational and in the financial fields. . . .

"Even more telling is the fact that fifty years ago, they furnished A. P. Gianni, an Italian promoter, with half or the starting capital for the Bank of America. Today, the Jesuits still own 51 per cent of the stock. . . .

"The pugnacious Jesuits, about 8,000 in the U.S. alone, out of 35,000 in the Order, by 1983-4 had increased their income to between 300 to 350 million dollars, and were the controllers, even if tangently, of the largest bank in the world, the Bank of America. . . .

"Sindona had his first studies with the Jesuits, then at Messina's University where he became one of its youngest lawyers. . . . By now, Sindona was acting, not only for the Vatican, but also tangently for the no less powerful concerns, enjoying by now, the confidence of a growing number of American business companies, beginning with the Jesuit controlled Bank of America, the Celanese Corporation and other big U.S. bodies."

The Jesuit rule of the Bank of America is undeniable. The Bank is a member of Cardinal Egan's CFR in New York. Thus, even though you have only one reference to the fact that the Order's front man in the founding of the Bank of America, Italian Roman Catholic Amadeo Peter Giannini, was a Knight of Malta, that will be sufficient.


Social Network Diagram:

http://www.namebase.org/cgi-bin/nb06?_GIANNINI_AMADEO_PETER
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GIANNINI AMADEO PETER

* Adams,J.R. Frantz,D. A Full Service Bank. 1992 (19-20)
* Lundberg,F. The Rich and the Super-Rich. 1969 (73-4, 382-4)
* Naylor,R.T. Hot Money and the Politics of Debt. 1994 (51)
* New York Times Book Review 1994-11-06 (26)
* Nikitin,V. The Ultras in the USA. 1981 (253)
* Sale,K. Power Shift. 1976 (5)
* Sampson,A. The Money Lenders. 1982 (56-62, 83)
* Tosches,N. Power on Earth. 1986 (145)
* Tye,L. The Father of Spin. 1998 (153-4)
* Van der Pijl,K. The Making of an Atlantic Ruling Class. 1997 (101-2)

pages cited this search: 24

http://www.namebase.org/cgi-bin/nb01?_GIANNINI_AMADEO_PETER
Resources:
http://search.yahoo.com/search;_ylt=A0geu59...p=NL&rd=r1&meta=vc%3Dnl

Sunday, September 14, 2008

"They Repented Not"



And the rest of the men which were not killed by these plagues yet repented not of the works of their hands, that they should not worship devils, and idols of gold, and silver, and brass, and stone, and of wood: which neither can see, nor hear, nor walk:

Neither repented they of their murders, nor of their sorceries, nor of their fornication, nor of their thefts.

Revelation 9: 20,21.

Weekend talks seek buyer for Lehman

With files from Reuters

WASHINGTON -- Two more large U.S. financial institutions, Lehman Brothers Holdings Inc. and Washington Mutual Inc., are scrambling to find buyers this weekend and avoid collapse as the worst U.S. banking crisis since the Depression continues unabated.

The government's dramatic seizure this week of mortgage giants Fannie Mae and Freddie Mac was designed to stabilize financial markets.

Instead, the rescue has merely shifted focus to the next weakest links in the chain of beleaguered financial service companies, putting renewed pressure on a U.S. government that appears reluctant to sink any more taxpayer money into the industry.

"Anyone hoping the Treasury's takeover of Fannie Mae and Freddie Mac would somehow mark the bottom of the credit crunch is likely sorely disappointed," said John Silvia, chief economist at Wachovia Corp. "There are still formidable financial challenges ahead for the economy."

Treasury Secretary Henry Paulson has reportedly told key industry players that he isn't prepared to bankroll any more deals, including a takeover of Lehman, one of the biggest players in the mortgage bond market.

Bank of America Corp., the largest U.S. bank by market value, was considering a joint bid for Lehman along with private equity investor J.C. Flowers and sovereign wealth fund China Investment Co., according to published reports. Lehman has declined to comment.

Senator Richard Shelby, the top Republican on the Senate banking committee, told CNBC that the Treasury and the U.S. Federal Reserve Board were trying to work a deal that involved no U.S. government money. But he said he couldn't guarantee it wouldn't be needed at some point to prevent Lehman from collapsing.

"I'm hoping that some big firm will want them more than the Fed wants them," Mr. Shelby said.

The investment bank is struggling to find a solution to the worst crisis of its 158-year history. Lehman, the No. 4 U.S. broker, wrote down its assets by $5.6-billion (U.S.) in the third quarter, triggering a second successive quarterly loss of $3.9-billion.

Lehman has so far failed to attract investors to shore up its capital position, weakened this year by its outsized exposure to commercial real estate and residential mortgage assets hard hit by the continuing credit crunch.

Meanwhile, JPMorgan Chase & Co., which swallowed Bear Stearns earlier this year with the help of a $29-billion loan from the Fed, is in "advanced talks" to acquire Seattle-based Washington Mutual, the country's largest savings-and-loan company, Reuters reported, citing a source close to the discussions.

Lehman shares fell to a 14-year low yesterday, shedding 13.5 per cent of their value. Washington Mutual tumbled by 3.5 per cent. Investor fear has also spread to other institutions, including leading brokerage Merrill Lynch & Co. Inc. and American International Group Inc., a major insurer.

"The Fed, and now Treasury, have essentially installed a take-a-number machine on their front door steps, and the lineup is getting longer by the week," Bank of Nova Scotia economist Derek Holt said in a research report.

Mr. Holt pointed out that growing credit spreads suggest the crisis isn't nearly over.

A long list of companies, from banks to auto makers, is now making the case to Washington that they too are too big to fail.

U.S. auto makers, for example, have hired lobbyists to push for $25-billion in federal loan guarantees to help them modernize and build more fuel-efficient cars.

We are witnessing the "socialization of American capitalism," and there's more coming, Mr. Holt predicted.

"The state's role in the U.S. economy was already among the greatest in the industrialized world, and it is now on the verge of running a far bigger swath ... which may further distort long-run incentives and moral hazard," he said.

Merrill Lynch economist David Rosenberg warned that it will take "some time" for the credit crunch to work its way through the supply chain.

"It started between banks, migrated into mortgages and is now working its way through to the rest of consumer credit," he said.

LEHMAN (LEH)

Close: $3.65, down 57¢

WASHINGTON MUTUAL (WM)

Close: $2.73, down 10¢

***

CREDIT CRUNCH

SAVING LEHMAN BROTHERS

Year of the bear

for banks

Lehman Bros -94.42

Washington Mutual -79.9

Merrill Lynch -68.2

Wachovia -62.5

Legg Mason -44.8

Citigroup -38.9

Percentage losses in share value in 2008

$1.21-trillion

The market cap the S&P 500 financials index has shed since its Oct. 5, 2007 high of 483.87, or about 42 per cent.

$125-billion

Amount the failure of about 700 savings and loans cost U.S. taxpayers in the late 1980s and early 1990s.

Last weekend it was Henry Paulson, the U.S. Treasury secretary leading a monumental bailout of mortgage lenders Fannie Mae and Freddie Mac. The move was greeted with a wave of relief, but within days two other lenders were brought to their knees as Washington Mutual and Lehman Brothers, the storied 158-year-old investment bank, saw their shares collapse.

This weekend, the Treasury will be joined by Federal Reserve officials and top bankers from Wall Street and around the world, including China to work up a plan to save the banks. In the rescue of Bear Stearns, the federal government agreed to absorb as much as $29-billion (U.S.) in potential losses. With Fannie-Freddie, it's been estimated it could have to inject up to $100-billion. But on Friday, the message coming from sources at Treasury was that officials were pushing for a deal, possibly with multiple suitors, that would not involve government money. A key concern is that another rescue would trigger even more bailouts.

Source: http://www.theglobeandmail.com/servlet/story/LAC.20080913.RLEHMAN13/TPStory/Business

Bernie Sanders: On The Media

"One of our best-kept secrets is the degree to which a handful of huge
corporations control the flow of information in the United States. Whether it
is television, radio, newspapers, magazines, books or the Internet, a few giant
conglomerates are determining what we see, hear and read. And the situation is
likely to become much worse as a result of radical deregulation efforts by the
Bush administration and some horrendous court decisions. Television is the
means by which most Americans get their “news.” Without exception, every major
network is owned by a huge conglomerate that has enormous conflicts of
interest. … The bottom line is that fewer and fewer huge conglomerates are
controlling virtually everything that the ordinary American sees, hears and
reads. This is an issue that Congress can no longer ignore."
-- Bernie Sanders
(1941-) US Senator VT, former US Congressman VT


Source: “Congress Can No Longer Ignore Corporate Control of the Media,” The Hill (12 June 2002)
http://quotes.liberty-tree.ca/quote_blog/Bernie.Sanders.Quote.5056

Proposed new FBI rules draw civil liberties worries

Fri Sep 12, 2008 6:17pm EDT

By James Vicini


WASHINGTON (Reuters) - The U.S. Justice Department unveiled proposed new rules on Friday for FBI investigations, changes a civil liberties group criticized for giving agents powers to investigate Americans without proper suspicion.


In its first major change in years, the Justice Department proposed a consolidated set of guidelines for domestic FBI operations, seeking to apply the same rules for criminal and terrorism cases, and for collecting foreign intelligence.


The guidelines were first adopted in the 1970s following disclosures that the FBI under J. Edgar Hoover had run a widespread domestic surveillance program that spied on civil rights activists and political opponents.


Officials said the new guidelines, which total 45 pages, were still being revised after consultations with Congress and civil liberties groups. The new rules are expected to take effect on October 1.


Justice Department and FBI officials told a news briefing the changes would allow agents in some terrorism cases to use informants, do physical surveillance and conduct interviews without identifying themselves or their true purpose.


They said such techniques currently could be used in ordinary criminal cases, but not for those involving national security, before an investigation has begun.


The American Civil Liberties Union expressed concern the rewritten rules had been drafted in a way to allow the FBI to begin surveillance without factual evidence to back it up.


It said that under the new guidelines, a person's race or ethnic background could be used as a factor in opening an investigation, a move the ACLU believes will institute racial profiling as a matter of policy.


ACLU Washington legislative director Caroline Fredrickson said, "Agents will be given unparalleled leeway to investigate Americans without proper suspicion, and that will inevitably result in constitutional violations."


Anthony Romero, the ACLU's executive director, said, "Issuing guidelines that permit racial profiling the day after the 9/11 anniversary and in the midst of a historic presidential campaign is typical Bush administration stagecraft designed to exploit legitimate security concerns for partisan political purposes."


Department officials said the guidelines would not allow an investigation based solely on a person's race or religion. "We are not changing our basic approach when race, religion or ethnicity may be taken into consideration," said one official who declined to be identified.


"The Department of Justice has long been concerned about the use of race or ethnicity in investigations. But it is simply not responsible to say that race may never be taken into account when conducting an investigation," spokesman Brian Roehrkasse said in a statement after the briefing.


(Editing by Peter Cooney)


Source: http://www.reuters.com/article/newsOne/idUSN1247176820080912?sp=true

Merrill now in shorts' sights as Lehman crumbles

Fri Sep 12, 2008 5:51pm EDT
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By Elinor Comlay

NEW YORK (Reuters) - The crisis of confidence in Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) has led to fallout throughout the financial sector -- especially for larger rival Merrill Lynch & Co Inc (MER.N: Quote, Profile, Research, Stock Buzz).

The problem for Merrill is that short-sellers regard it as the next weakest investment bank after the crumbling Lehman and the crumbled Bear Stearns, which was sold at a firesale price in March.

"People are saying, 'Who's next on the list?'" said Matt McCormick, portfolio manager and banking analyst at Bahl & Gaynor in Cincinnati.

The result in the market was clear. Merrill Lynch shares lost about a third of their value this week, while peers Citigroup Co (C.N: Quote, Profile, Research, Stock Buzz) and Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) only lost 2 percent and 4 percent, respectively.

A Merrill Lynch spokesman declined to comment.

Like Lehman and Bear, Merrill has holdings of structured debt that are triggering write-downs and calling into question its overall capital position.

Merrill Lynch has been one of the hardest hit firms over the course of the year-old credit crisis, posting well over $40 billion in write-downs and credit losses and selling valuable assets to raise capital.

In the second quarter, Chief Executive John Thain sold the bank's prized 20 percent stake in news company Bloomberg LLP and arranged to sell a banking administrator company to balance out $9.4 billion in losses and write-downs.

Investors are bracing for more bad news in the third quarter, after Thain arranged to sell $30 billion in complex debt securities to a private equity firm in July, taking more than $5 billion in write-downs at the same time.

Merrill also provided financing to Dallas-based private equity firm Lone Star Funds and sold those securities at 22 cents on the dollar. While the Lone Star deal removed a large, toxic weight from Thain's shoulders, there are still problem assets on Merrill's books, according to analysts.

"There's concerns they still have commercial mortgage exposure and people feel that's worsening," said Albert Yu, portfolio manager and analyst at Clover Capital Management, which does not have a position in Merrill.

Looming large among investors' worries about Merrill are mortgage-backed securities and other structured debt held at two of its banking subsidiaries -- Merrill Lynch Bank USA and Merrill Lynch Bank & Trust Co.

In the second quarter, structured debt held by these subsidiaries was responsible for losses of $1.7 billion. That could worsen in the third quarter as sales of these securities has set a low market price.

One hedge fund manager who is short Merrill said he sees these banks, which hold loans and deposits made through Merrill's network of financial brokers, needing more capital, which will have to be provided by the parent.

"Merrill's in a box, but people don't realize it," he said.

According to the most recent data from the New York Stock Exchange, short interest in Merrill Lynch increased 5.31 percent, to 44.5 million on August 29, compared with 42.3 million on August 15. Over the same period, short interest on average across the NYSE slipped 0.5 percent.

Merrill has a free float of 1.49 billion shares.

THE SHORT MENTALITY

The difficulty for Merrill Lynch is that it has valuable assets that aren't reflected in its share price.

According to a research report from Citigroup on Friday, Merrill's stake in investment manager BlackRock is worth about $9 a share and its wealth management franchise -- the largest by number of brokers and by assets -- is worth $16 per share. Citi analysts attributed an additional $15 per share to the bank's institutional business.

"Merrill Lynch has some very valuable assets, but the same is true of most Wall Street companies," said John Stein, co-founder of FSI Group in Cincinnati, which doesn't own Merrill Lynch shares.

"Shorts have made a lot of money of late, and one thing about Wall Street is when something works, they tend to keep doing it," he added.

As Merrill shares decline, it makes raising any further equity more expensive, noted Stein.

"It may force a strategic decision on to Merrill," he said, noting Lehman was prompted to raise capital following Bear Stearns' takeover, but it came too late to the idea of a strategic partnership.

"I think what's going on with Lehman will likely force Merrill to look for partners sooner rather than later."

(Reporting by Elinor Comlay, additional reporting by Dan Wilchins; Editing by Gary Hill)

Source: http://www.reuters.com/article/newsOne/idUSN1220665620080912?sp=true

Global economy faces tough test, says IMF's Lipsky

Tue Sep 9, 2008 7:16am EDT

FRANKFURT (Reuters) - The global economy faces its most difficult test in many years with growth slowing sharply as high commodity prices put pressure on inflation, a senior International Monetary Fund official said on Tuesday.

IMF first deputy managing director John Lipsky said global growth was set to slow further in the second half of 2008, and continued financial sector strains were a major risk to the chances of recovery in 2009, on top of high oil prices.

Commodity prices remained high and volatile, bringing risks of knock-on inflation effects, but recent sharp falls in oil prices should lessen short-term inflation pressures in the developed world, he told a conference.

Central banks in advanced economies could afford to keep interest rates on hold. In regions with high real rates, they could look out for easing price pressures which would allow them to loosen policy later, he said.

"Against the backdrop of protracted financial strains and dramatic surges in commodity prices, the global economy is confronted with its most difficult set of circumstances in many years," he said. "The good news is, we are only three to six months from the bottom, when the upturn begins."

Speaking at the same conference, European Economic and Monetary Affairs Commissioner Joaquin Almunia said the European Union needs to take urgent action to avoid a prolonged economic downturn and return to stronger growth.

Lipsky said the IMF was still reviewing its forecasts, which are due to be updated in its World Economic Outlook next month. But the fund saw global growth slowing from 5 percent in 2007 to about 3 percent late in 2008, reaccelerating towards 4 percent in 2009.

The IMF's last forecasts in mid-July were for global growth of 4.1 percent in 2008 and 3.9 percent in 2009. A G20 source told Reuters last month that these would be downgraded to 3.9 percent this year and 3.7 percent in 2009.

Lipsky said the 2009 pickup would be driven by an unwinding of the effects of the past 50 percent increase in oil prices and a bottoming in the U.S. housing sector. Oil traded at a five-month low below $105 per barrel on Tuesday.

GROWTH FORECASTS

In the United States, the IMF expected growth of about 1 percent in 2008 on a fourth-quarter-on-fourth-quarter basis, recovering gradually to about 1.5 percent in 2009, Lipsky said. This calculation was different from the annual growth rates forecast in its headline projections, he stressed.

In mid-July, the IMF forecast U.S. growth of 0.3 percent in 2008 and 1.9 percent in 2009 on a Q4/Q4 basis, with full-year growth seen at 1.3 percent in 2008 and 0.7 percent in 2009.

In the euro area, the IMF projected growth on a Q4/Q4 basis at about 0.75 percent in 2008 and about 1.5 percent in 2009, from 1.3 percent and 1.7 percent respectively in mid-July.

Lipsky said that although the IMF expected commodity prices to remain high in real terms, slower growth and cheaper oil should help to contain inflation pressure in advanced economies.

"Thus, policymakers can afford to keep rates on hold in the face of elevated headline inflation, while watching closely for signs of easing price pressure that would permit a more accommodative stance in economies with relatively high real interest rates," he said.

The European Central Bank held rates at 4.25 percent last week but is expected to cut them in mid-2009 and the Bank of England's next move is also likely to be a cut. The U.S. Federal Reserve is expected to stay on hold for now, after cutting rates in the past year.

Lipsky said that in emerging markets inflation pressures were growing while real interest rates remained low and some central banks may be "behind the curve" with their monetary policy.

"Policies in these instances need to be tightened, lest central banks run the risk that hard-won policy credibility could be eroded. In some cases, allowing greater exchange rate flexibility would provide room for operating a more independent monetary policy."

The IMF saw growth in emerging and developing economies of just over 6 percent in 2008 on a Q4/Q4 basis, broadly in line with the IMF's mid-July outlook.

(Reporting by Krista Hughes; Editing by David Stamp)

Source: http://www.reuters.com/article/businessNews/idUSL939255520080909?feedType=RSS&feedName=businessNews&rpc=23&sp=true

Business As Usual 30 Hours After Ike's Landfall


It has been more than 30 hours since Hurricane Ike crashed onto the shores of Galveston, Texas; Yet, only bits and pieces of information about the extent of the devastation is being released. It's as if there is a news media black-out on the aftermath of Ike; As if the piecemeal details that are distributed have to be first analyzed, sanitized before the public can have access to it. Just what are they hiding?



Meanwhile, the High Definition-Digital, Video-Media continues with more Football coverage, more Tennis matches, and more Baseball 'games', along with the ususal Budweiser, and now Miller (absent for ages) Beer commercials. Let the games continue...
Where's Michael Chertoff with the FEMA rescue teams?
Where's President Bush with his entourage?
Where's McCain's 'real change' express?
Where's Obama with the rolled up shirt sleeves?
They're probably at home watching Football enjoying chicken wings and fries!

My constant question to the powers that be is:

Who's on first, what's on second, and I don't know's on Third???


Arsenio.

A Race Against Time For Stranded Texans

Search And Rescue Teams Canvass Neighborhoods In Wake Of Ike; Houston Posts 9 P.M. Curfew



GALVESTON, Tex., Sept. 14, 2008


Play VideoPlayVideo

Houston Reels From Hurricane

Houston officials are racing to assist residents who have been severely affected by the Hurricane Ike. As Hari Sreenivasan reports, some could be without electricity for the next month. Share/Embed







(CBS/AP) Rescue crews canvassed neighborhoods inundated by Hurricane Ike's storm surge early Sunday morning, racing against time to save those who spent a second harrowing night trapped amid flattened houses, strewn debris and downed power lines.

One team of paramedics, rescue dogs and structural engineers fanned out under a nearly full moon on a finger of land in Galveston Bay. Authorities hoped to spare thousands of Texans - 140,000 by some estimates who ignored orders to flee ahead of Ike - from another night among the destruction. Some had been rescued, but unknown thousands remained stranded.

Only four deaths had been blamed on Ike so far: two in Texas and two in Louisiana.

Along the southeast Texas coast Sunday, the weather was not cooperating. Thunderstorms dropped more rain on areas already flooded by Ike.

In Houston, the fourth-largest U.S. city, a weeklong curfew from 9 p.m. to 6 a.m. was announced because most of the city was still without power.

"In the interest of safety, we're asking people to not be out in the streets in their vehicles or on foot," Chief Harold Hurtt said.

President George W. Bush planned to travel to Texas on Tuesday to express sympathy and lend support to the storm's victims. He asked people who evacuated before the hurricane to listen to local authorities before trying to return home.

Roads blocked by waist-deep water and downed trees kept many rescuers at bay as they struggled through the largest search-and-rescue effort in state history, just a day after the Category 2 storm crashed into Texas with 110 mph winds.

On one side of the Galveston peninsula, a couple of barges had broken loose and smashed into homes. Everything from red vinyl barstools to clay roof tiles littered the landscape. Some homes were "pancaked," the second floor sitting where the first had been before Ike's surge washed it out. Only the stud frames remained below the roofs of many houses, opening a clear view from front yard to back.

Texas Gov. Rick Perry's office said 940 people had been saved by nightfall Saturday, but that thousands had made distress calls the night before. Another 600 were rescued from flooding in neighboring Louisiana.

"What's really frustrating is that we can't get to them," Galveston police officer Tommie Mafrei said. "It's jeopardizing our safety when we try to tell them eight hours before to leave. They are naive about it, thinking it's not going to be that bad."

Big-wheeled dump trucks, boats and helicopters were at the ready to continue searching hard-hit Galveston and Orange County at daybreak Sunday.

Orange Mayor Brown Claybar estimated about a third of the city of 19,000 people was flooded, anywhere from six inches to six feet. He said about 375 people who stayed behind during the storm began to emerge, some needing food, water and medical care.

"These people got out with the wet shirts on their back," said Claybar, who had no idea of how many people were still stranded. Claybar was optimistic that the foot-and-a-half of water over the levee had receded overnight. If so, the city could begin pumping the water out, Claybar said. He did not know exactly how long it would take to drain the city.

"I would say at least a couple of days," Claybar said.

Some coastal residents waded through chest-deep water with their belongings and children in their arms to get to safety Saturday. Military helicopters loaded others carrying plastic bags and pets in their arms and brought them to dry ground.

Five-year-old Jack King escaped serious injury when the storm surge sent a rush of water that washed out the first floor of his family's Galveston home just two blocks from the bay.

"I falled in the attic," Jack told paramedic Stanley Hempstead of his 10-foot tumble through the attic and onto the garage floor. Jack and his family had taken refuge in the room, loaded with blankets and other supplies. As rescuers arrived, Jack gazed at a TV aglow with "The Simpsons." The only evidence of his fall was a Band-Aid plastered to his closely-cropped hair, covering a gash.

"We just didn't think it was going to come up like this," said the boy's father, Lee King. "I'm from New Orleans, I know better. I just didn't think it was going to happen."

The Kings had hoped that a family member would pick them up, but a paramedic told him the road inland would not be open for days. Lee King thought they could survive another night, but then their generator died. He ultimately decided the family was ready to leave.

Hempstead and other team members sailed through flooded streets Saturday, evoking thoughts of another disastrous storm that kept him working for 31 days three years ago.

"This brings back memories of Katrina - a lot of torn up homes and flooded stuff," he said of the hurricane that struck New Orleans three years ago.

In downtown Houston, winds shattered the windows of gleaming skyscrapers, sleeting glass onto the streets below. Police used bullhorns to order people back into their homes. Furniture littered the streets, and business documents stamped "classified" had been carried by the wind through shattered office windows.

The storm weakened to a tropical depression early Sunday morning, but was still packing winds up to 35 mph as it dumped rain over Arkansas and traveled across Missouri. Tornado warning sirens sounded Saturday in parts of Arkansas, and the still-potent storm downed trees and knocked out power to thousands there.

Ike was the first major storm to directly hit a major U.S. metropolitan area since Hurricane Katrina devastated New Orleans in 2005.

More than 3 million were without power in Texas at the height of the storm, and it could be weeks before it is fully restored. Utilities made some progress by late Saturday, and lights returned to parts of Houston. In Louisiana, battered by both Ike and Hurricane Gustav on Sept. 1, 180,000 homes and businesses were without power.

Storm surge that crawled some 30 miles inland in Louisiana flooded tens of thousands of homes. A levee broke and some 13,000 buildings flooded in Terrebonne Parish, 200 miles from Texas. More than 160 people had to be saved from floodwaters near Lake Charles.

Though emergency crews were frustrated by those who stayed behind, weary residents of East Texas's swamplands and Big Piney Woods were beginning to feel that whatever decision they make about a Gulf hurricane is wrong.

In 2005, they were battered by Hurricane Rita, a September storm that ripped pine trees from their roots, smashed trailer- and wood-frame homes and left them in what has become a perpetual state of disrepair.

Last week, they listened when authorities told them to get out of Gustav's way. They spent days in north Texas shelters or paid for hotels and gas while their homes received nothing more than a mild shower. So when Ike approached, thousands ignored the mandatory evacuation order.


Bush To Visit Disaster Scene Tuesday

President Bush said Sunday he will visit Texas on Tuesday to express sympathy for victims of Hurricane Ike and lend support for recovery efforts.

"This is a tough storm and it's one that's going to require time for people to recover," the president said from the White House's Roosevelt Room after receiving an update from his disaster relief chief, the energy secretary and others.

Ike came ashore early Saturday at Galveston, Texas, as a strong Category 2 with 110 mph winds.

"Our first priority is search and rescue," Mr. Bush told reporters. He also mentioned restoring electricity, clearing debris and getting the Houston sewage plant running again.

He urged residents who had evacuated ahead of the storm to heed warnings from local authorities before trying to return home.

"It's very important for citizens, who I know are anxious to get home, to take your time and listen, take the advice of the local folks," the president said.

On his trip to Texas, Mr. Bush said he intends to express "the federal government's support - sympathy on the one hand and support on the other."

Homeland Security Secretary Michael Chertoff updated Mr. Bush by phone from Texas. Chertoff, who went to the region on Saturday, was in Austin, Texas, and planned to head to Houston later.

"This is all part of our efforts to help Texas and Louisiana with a focused, effective recovery effort," Mr. Bush said.

The eye of the hurricane missed the center of Houston, as well as the largest concentrations of oil and gas refineries. Still, retail gasoline prices have jumped based on Ike's landfall in the region, which accounts for about one-fifth of the nation's petroleum refining capacity. Refineries, even if they were not damaged, may remain shuttered for days, some because of power outages.

"The federal government, along with state governments, will be monitoring very carefully as to whether or not consumers are being mistreated at the pump - in other words, gouged," Mr. Bush said. "It's very important for our fellow citizens during this period of temporary disruption to be treated fairly."

Mr. Bush said the federal government is providing 1.5 million liters of water a day and 1 million meals a day to help the displaced.

Source: http://www.cbsnews.com/stories/2008/09/14/national/main4447840.shtml