AS THE WORLD TURNS

We're back in the Fly-Over Zone still battling the yet-unknown-to-man diseases transferred from the grandkids to us.  Surely this has to end as they grow up but then again, they are at the age when you never wish for them to change.

I've received a number of complaints as to the switching of sites for the blog, mostly from the older folk are aren't the least bit interested in what Tumblr brings to the table so from now on we will be using both sites...if I can figure out how to transfer from one to the other.  Wish me luck.

Anyway, Euroland opened for business again today with a relative calm attitude regarding the Cyprian events.  Over here, the talk was of the problem being solved and accordingly, the DOW rose by about 90 poilts.  This market is fearless.  There is some residual concern but with good economic numbers all about, it's buy, buy, buy.

The fact that for the first time anybody can remember the depositors in a banking system are about to lose--some say perhaps up to 80%--of their deposits.  I guess there is a first time for everything which is perhaps why little notice has been taken of the court ruling yesterday in California in which a judge ruled that the bond holders of the obligations of the City of Stockton may have to stand behind other creditors in the bankruptcy proceeding--namely CALIPERS who pays out the funds on the City's pension obligations after receipt of payment from the City itself.  Now Chapter 9 of the Bankrupcy Act is something about which I take great pride in knowing absolutely nothing, but when it is being ruled as allowing the overturning what had always believed to have been the superior position of bond holders one has to sit up and take notice of what is going on, just like in Europe when suddenly the rights of depositors which had always been considered sacrosanct suddenly disappear in the blink of an eye.

OK, I know the view; it can't happen Over Here. Sez who?  The loss suffered by bond holders of General Motors as opposed to, essentially, the United Auto Workers was an eye opener but this development in conjunction with all that is going on Over There must, it would seem to me, give one pause to reflect  on just where does the sanctity of contract and the law give way to political jobsmanship?  To claim Cyprus is a special case or that CAL