FCC to Regulate broadband anyway; Dems dropping like flies; Dow in freefall; Can't wear flag shirt to school?

1) Dow Sheds 350 in Wild Selloff; VIX Tops 34 Stocks staged one of the most dramatic selloffs in market history Thursday as what may have been a trader error exacerbated losses in a market already jittery about the European debt crisis. The Dow ended down 347.80, or 3.2 percent, at 10,520.32, after being down as much as 998.50 earlier, the Dow's biggest intraday drop on record. Treasurys surged. Under current, New York Stock Exchange rules, if the market falls ten percent or more between 2:30 and 3:00 pm ET, trading is halted for 30 minutes. At its worst point, the Dow was down between 8 and 9 percent today. …At the height of the panic, one trader, on the condition of anonymity, said he heard fixed-income desks in Europe shut down early because there was no liquidity — basically European banks are halting lending right now. …But in the final 15 minutes of trading it was revealed that a trader at a major firm may have mistyped a trade as billion — instead of million — which made what would've been a 300-point selloff more like a 900-point selloff. The details were still being ironed out but sources suggested the firm in question was Citigroup [C 4.04 -0.14 (-3.35%) ] and that the trade may have involved Procter & Gamble [PG 60.75 -1.41 (-2.27%) ] stock, which was down more than $22, or 35 percent at one point. Something’s fishy… See: http://www.cnbc.com/id/36988229 More on this… Art Hogan, chief investment strategist at Jefferies & Co., criticized Europe's handling of the Greek debt crisis so far. "This is the cost of European reaction," Hogan said. "They have dragged their feet." He added he was also shaken by the mid-afternoon plunge: "That was probably the most disturbing trading activity anyone is ever going to see in our lifetime." See: http://abcnews.go.com/Business/dow-jones-dives-european-debt-scare-shakes-us/story?id=10576136 2) Sources: Shahzad Had Contact With Awlaki, Taliban Chief, and Mumbai Massacre Mastermind Accused Times Square Bomber Faisal Shahzad linked up with the Pakistani Taliban through the internet, ABC News has been told by law enforcement and intelligence sources close to the investigation. Once the Taliban identified him as more valuable in the U.S. than in Pakistan, they trained him to return to execute his bomb attack. But according to these sources, Shahzad also had a web of jihadist contacts that included big names tied to terror attacks in the U.S. and abroad, including the figure who has emerged as a central figure in many recent domestic terror attempts - radical American-born Muslim cleric Anwar Awlaki. Besides Awlaki, sources say Shahzad was also linked to a key figure in the Pakistani Taliban, its Emir Beitullah Mehsud, who was killed in a drone missile strike in 2009. The Mehsuds had been family friends of Shahzad, who is the son of a former high-ranking Pakistani military officer. See: http://abcnews.go.com/Blotter/faisal-shahzad-contact-awlaki-taliban-mumbai-massacre-mastermind/story?id=10575061 2a) Shahzad's Motive 'Unclear' to CBS, Cites Money Pressure Since He 'Hasn't Realized Any American Dream' (Yeah, motive unclear, my foot. See story #2). Botched bomber Faisal Shahzad's failure to achieve the “American dream” may have been an important motive for his terrorist act, CBS's Bob Orr contended Wednesday night in a story in which he declared: “Shahzad's motive also remains unclear.” After noting how Shahzad “told interrogators he's upset with U.S. policies which he feels unfairly target Muslims and he's angry over Predator strikes that have killed both terror leaders and civilians in his native Pakistan,” Orr proposed: I nvestigators say a quest for revenge seems to have played some role, but personal financial pressures may also have pushed Shahzad to act. He became a U.S. citizen just a year ago, but he has not realized any American dream. He quit his job, lost his house, and was separated from his family. How about the hypothesis Shahzad became a U.S. citizen as a ruse to make it easier to carry out his Islamic jihad – and so quitting his job, moving his family to Pakistan and not paying his mortgage were not what drove him to terrorism, but were what he did to get training and rid himself of encumbrances. See: http://newsbusters.org/blogs/brent-baker/2010/05/05/shahzads-motive-unclear-cbs-cites-money-pressure-he-hasnt-realized-any-#ixzz0nB5hwjBR 2b) Feds didn't call all airlines to warn of suspect WASHINGTON – Law enforcement officials decided not to call all airlines directly on Monday to tell them an important name had been added to the government's "no-fly" list, even as investigators pursued the man they suspected was the Times Square bomber. Emirates airlines apparently didn't notice the notification from the Transportation Security Administration that there was an addition to the list, and Faisal Shahzad boarded a Mideast-bound jetliner before federal authorities pulled him off and arrested him. On Wednesday, the government issued a new requirement for airlines to check the no-fly list more often, a move aimed at closing that security gap in future cases of terror suspects. But officials could have called all the airlines themselves in such a critical situation — they've done it before. …The FBI asked the TSA not to make the calls, according to an administration official who spoke on condition of anonymity in order to discuss the ongoing investigation. The FBI did let the TSA call a few domestic air carriers, which did not include Emirates. See: http://news.yahoo.com/s/ap/20100506/ap_on_bi_ge/us_no_fly_airlines/ 2c) Faisal Shahzad on Homeland Security List Since 1999 Sources tell CBS News that would-be Times Square bomber Faisal Shahzad appeared on a Department of Homeland Security travel lookout list - Traveler Enforcement Compliance System (TECS) - between 1999 and 2008 because he brought approximately $80,000 cash or cash instruments into the United States. See: http://www.cbsnews.com/8301-31727_162-20004263-10391695.html 3) Obama Freezes Budget for Program Designed to Stop Terrorists from Getting U.S. Visas (CNSNews.com) – Four months after the attempted Christmas Day bombing of Northwest Flight 253 over Detroit and nine years after the Sept. 11, 2001 terrorist attacks, only 14 of the 57 U.S. consulates identified as being at “high risk” for potentially providing visas to terrorists have been furnished with units of the Department of Homeland Security’s Visa Security Program (VSP). President Barack Obama, meanwhile, is planning to freeze the program’s budget for fiscal 2011. The VSP, established by the Homeland Security Act of 2002, puts Department of Homeland Security officials in the field at U.S. consulates to vet the backgrounds of people applying for U.S. visas. DHS uses a broader range of databases than the State Department to review the backgrounds of visa applicants. Also, many policymakers believe DHS officials tend to be more security-minded than State Department consular officers when reviewing visa applications. While administration officials have said publicly that five additional VSP units should be in place at high risk consulates by the end of 2011, President Barack Obama’s fiscal Year 2011 budget for DHS--submitted almost two months after the Christmas Day bombing attempt—does not increase funding for the program from its fiscal 2010 level. See: http://www.cnsnews.com/news/article/65333 4) Mosque Planned for Location Near World Trade Center Site NEW YORK (AP) -- A 13-story mosque and Islamic cultural center is planned near the World Trade Center site, in a building that was damaged by airplane debris on Sept. 11, 2001. A Lower Manhattan community board committee said Wednesday that it supported the $100 million project. It is aimed at creating a space for the neighborhood's growing Muslim population. Supporters say the history associated with the damaged former department store was one reason to pick it. But some 9/11 victims' families said they were offended by the idea. Massapequa resident Rosemary Cain called the plan ``despicable.'' She lost a son on 9/11. The American Society for Muslim Advancement and the Cordoba Initiative said the project would help to improve relations between the West and Muslims. See: http://www.wcbs880.com/pages/6983626.php?contentType=4&contentId=6058817 5) Obama biggest recipient of BP cash While the BP oil geyser pumps millions of gallons of petroleum into the Gulf of Mexico, President Barack Obama and members of Congress may have to answer for the millions in campaign contributions they’ve taken from the oil and gas giant over the years. BP and its employees have given more than $3.5 million to federal candidates over the past 20 years, with the largest chunk of their money going to Obama, according to the Center for Responsive Politics. Donations come from a mix of employees and the company’s political action committees — $2.89 million flowed to campaigns from BP-related PACs and about $638,000 came from individuals. On top of that, the oil giant has spent millions each year on lobbying — including $15.9 million last year alone — as it has tried to influence energy policy. During his time in the Senate and while running for president, Obama received a total of $77,051 from the oil giant and is the top recipient of BP PAC and individual money over the past 20 years, according to financial disclosure records. See: http://www.politico.com/news/stories/0510/36783.html 6) Goldman Sachs Emerges From Showdown Up $549 Million (Update3) …“Both sides got what they wanted,” said Robert Hillman, a securities law professor at the University of California, Davis. “The Senate probably did what it felt it had to do, which was bring Goldman people up and embarrass them. For Goldman, the goal was to demonstrate that they had not engaged in fraud or illegal conduct. They probably succeeded in that.” …Shares of the company rose $3.97 to $157.01 in composite trading on the New York Stock Exchange at 4:15 p.m. See: http://www.businessweek.com/news/2010-04-28/goldman-sachs-emerges-from-showdown-up-549-million-update3-.html 6a) Morning Bell: Fannie and Freddie Failure Forever Next time somebody tries to tell you that it was evil Wallstreet that caused the housing & financial crisis in the is country, and government had to fix it, make sure they get their facts straight (thanks, Kim, for this summary and comment): • Starting in 1993, political forces pushed Fannie and Freddie to loosen their once strict loan purchasing requirements. • By 1996, regulations required that 40% of all Fannie and Freddie-bought loans must come from individuals with below median incomes. • In 1995, Fannie and Freddie began buying subprime securities originally bought and bundled by private firms. One of these firms was Countrywide Financial who, thanks to their status as Fannie Mae's biggest customer, delivered investors a 23,000% return between 1985 and 2003. • By 2004, Fannie and Freddie were purchasing $175 billion worth of subprime securities per year from Countrywide and their brethren... a 44% share of the entire market. There are other factors that helped contribute to the 2008 financial crisis, but Fannie and Freddie's use of their "too big to fail" status to create and grow the subprime security market was essential. But Sen. Dodd, who received V.I.P. treatment from Countrywide CEO Angelo Mozilo, never saw any problem with Fannie and Freddie. On July 13, 2008, Senator Dodd said on national television, "To suggest somehow that [Fannie Mae and Freddie Mac] are in trouble is simply not accurate." Less than two months later the bailouts of Fannie and Freddie began. Keep these facts in mind when Dodd says his bill solves the "too big to fail" problem. See: http://blog.heritage.org/2010/05/06/morning-bell-fannie-and-freddie-failure-forever 7) F.C.C. Push to Regulate Broadband Is Expected WASHINGTON — The chairman of the Federal Communications Commission will try to regulate broadband Internet service despite a recent court ruling that the commission had limited powers to do so (emphasis mine). Two F.C.C. officials, who spoke on the condition of anonymity, said that Julius Genachowski, the F.C.C. chairman, will announce Thursday that the commission considers broadband service a sort of hybrid between an information service and a utility and that it has sufficient power to regulate Internet traffic under existing law. NO, it DOESN’T! …The F.C.C. has limited authority over information services but it has vast powers to regulate certain utilities. It contends that a mix of those powers can be applied to broadband service. …Last month, a federal appeals court ruled that the F.C.C. had exceeded its authority by telling Comcast, the nation’s largest cable company, that it had to give Internet users equal access to all online content providers, even if some of their content was clogging Comcast’s network. The decision raised the difficult question of whether there was sufficient support in Congress for granting the agency new powers. See: http://www.nytimes.com/2010/05/06/technology/06broadband.html 7a) Obama's next regulate and destroy mission: The internet …PAT: Mr. Genachowski, the FCC chairman, is expected today to outline his plan for regulating broadband lines. He wants to adopt Net neutrality rules that require Internet providers like Comcast and AT&T to treat all traffic equally and not to slow or block access to websites, but it also gives them all the power to regulate the Internet and that's, that's what this is all about. This is not about speeding up your broadband. See: http://www.glennbeck.com/content/articles/article/198/40203/ 8) Obey won't seek reelection Bone-tired and facing a tough political landscape at home, House Appropriations Committee Chairman David Obey announced Wednesday that he won’t seek reelection, ending a 41-year House career stamped by his unique talent and tempestuousness. Rarely does a committee chairman of such power just walk away, and Obey’s decision is a blow to Democrats and marks the passing of one of the last major leaders of the 1970’s reforms that reshaped the modern House. Democrats are dropping like flies. See: http://dyn.politico.com/printstory.cfm?uuid=6919A565-18FE-70B2-A8F7ACF9F9401D17 9) Dem Turnout Falls Off A Cliff Turnout among Dem voters dropped precipitously in 3 statewide primaries on Tuesday, giving the party more evidence that their voters lack enthusiasm ahead of midterm elections. In primaries in NC, IN and OH, Dems turned out at far lower rates than they have in previous comparable elections. Just 663K OH voters cast ballots in the competitive primary between LG Lee Fisher (D) and Sec/State Jennifer Brunner (D). That number is lower than the 872K voters who turned out in '06, when neither Gov. Ted Strickland (D) nor Sen. Sherrod Brown (D) faced serious primary opponents. Only 425K voters turned out to pick a nominee against Sen. Richard Burr (R-NC). The 14.4% turnout was smaller than the 444K voters -- or 18% of all registered Dem voters -- who turned out in '04, when Gov. Mike Easley (D) faced only a gadfly candidate in his bid to be renominated for a second term. And in IN, just 204K Hoosiers voted for Dem House candidates, far fewer than the 357K who turned out in '02 and the 304K who turned out in '06. By contrast, GOP turnout was up almost across the board. 373K people voted in Burr's uncompetitive primary, nearly 9% higher than the 343K who voted in the equally non-competitive primary in '04. Turnout in House races in IN rose 14.6% from '06, fueled by the competitive Senate primary, which attracted 550K voters. And 728K voters cast ballots for a GOP Sec/State nominee in Ohio, the highest-ranking statewide election with a primary; in '06, just 444K voters cast ballots in that race. See: http://hotlineoncall.nationaljournal.com/archives/2010/05/dem_turnout_fal.php 10) BREAKING: Navy SEAL McCabe Found Not Guilty: Good news! NORFOLK, Va. – Navy SEAL Officer 2nd Class Matthew McCabe was found not guilty Thursday evening on charges of assaulting detained terrorist Ahmed Hashim Abed, dereliction of duty, and impeding an investigation based on a false statement. A seven member military jury deliberated for an hour and forty minutes before reaching a verdict. For a verdict to be reached, two-thirds of the jury had to agree on each charge. Upon hearing the verdict, McCabe's mother gasped, covering her mouth with her hands, while his father and sister smiled. McCabe and his counsel shared a few hugs and pats on the back. "I was trying not to cry," McCabe's mother later told HUMAN EVENTS. Last month in courts martial in Baghdad, Petty Officers Julio Huertas and Jonathan Keefe, also Navy SEALs, were acquitted of charges that they failed to safeguard Abed. McCabe was the only SEAL charged with actual assault. See: http://www.humanevents.com/article.php?id=36880 11) Students sent home for wearing American flag on Cinco de Mayo: Who’s country is this?!?!? Are you worried yet? As President Obama, most Democrats, and most of the media proclaim it racist to enforce immigration laws, five students were sent home from school in Morgan Hill, California because they wore American flag bandannas and t-shirts, and refused to take them off or hide Old Glory. School officials considered the flag display provocative. George Kiriyama of NBC Bay Area reports: [Daniel] Galli says he and his friends were sitting at a table during brunch break when the Vice Principal asked two of the boys to remove American flag bandannas that they wearing on their heads and for the others to turn their American flag t-shirts inside-out. When they refused, the boys were ordered to go to the principal's office. "They said we could wear it on any other day, but today is sensitive to Mexican Americans because it's supposed to be their holiday so we were not allowed to wear it today," Daniel Galli said. The boys said the administrators called their t-shirts "incendiary" that would lead to fights on campus.  "They said if we tried to go back to class with our shirts not taken off, they said it was defiance and we would get suspended," Dominic Maciel, Galli's friend, said. Apparently, school officials are willing to tolerate an atmosphere in which the American flag is regarded as a cause for violence, and unwilling to control (or even stand up to) students who dishonor the flag so many people died for (emphasis mine), in order to preserve the liberty now vanishing in places like Morgan Hill. Students wearing Mexican flags were allowed to attend school unmolested by administrators or teachers. See: http://www.americanthinker.com/blog/2010/05/students_sent_home_for_wearing.html