Venice, LA aka End of the World:Hurricanes, Oxygen-deprived Dead Zone and a Forest of High-risk Oil Rigs

Venice, Louisiana is aptly nicknamed “the end of the world.” The community of 1000, which includes Venice, Orchard and Boothville, is south of New Orleans is the most southerly terminus of the Great River Road and the last community on the Mississippi River. Venice was almost completely destroyed by Hurricane Katrina. East of Venice, LA is a human-induced oxygen deprived dead zone on the Gulf of Mexico seabed with too little oxygen to support fish, shrimp, crabs and other forms of marine life, that expanded to its largest on record by 2008 of c. 8,000 square miles.

One of Venice’s main industries is to provide service and transport for off-shore petroleum platforms, including BP’s  Deepwater Horizon oil rig which exploded 2010-02-20 killing eleven people and causing a huge oil spill.

Deepwater Horizon, built in 2001, was a Transocean-owned semisubmersible drilling rig but it was leased to BP (65%), with partners Anadarko Petroleum Corp. and Mitsui & Co. owning the remainder.

BP plc founded in 1909 as the Anglo-Persian Oil Company (See wiki for its Iranian-British-American history), which became The British Petroleum Company plc then BP Amoco plc now called BP) “is a British global energy company that is also the third largest global energy company and the 4th largest company in the world. As a multinational oil company (“oil major”) BP is the UK’s largest corporation, with its headquarters in St James’s, City of Westminster, London.[2][3][4] The company is among the largest private sector energy corporations in the world, and one of the six “supermajors” (vertically integrated private sector oil exploration, natural gas, and petroleum product marketing companies). BP’s 2009 reports a revenue of $246.1 billion, a net incomeof US $16.58 billion, a total equity of US $101.6 billion with 92,000 employees worldwide. wiki source

See dramatic photos here.

BP’s Gulf of Mexico Deepwater operations which include Atlantis Oil Field, Thunder Horse, Mad Dog, Pompano, Holstein, Horn Mountain, Marlin, Nakika and Tiber oilfield (announced 2009; production not commenced) operates from Houston, Texas.

“Transocean LTD is the world’s largest offshore drilling contractor. The company rents out floating, mobile drill rigs, along with the equipment and personnel needed for operations, to oil and gas companies. The company was spun-off from its parent, Birmingham, Alabama based Sonat, Inc. in 1993 and was originally called Sonat Offshore Drilling, Inc. Sonat Offshore acquired the Norwegian group Transocean ASA in 1996 and adopted its name. In 2000 the company merged with Sedco Forex, and was renamed Transocean Sedco Forex. In 2001 the company bought Reading & Bates Falcon. The name of the company was simplified to Transocean in 2003. Sedco Forex was originally part of Schlumberger until 2000 when it was spun off. Sedco Forex was originally formed from the merger of two drilling companies, the Southeast Drilling Company (Sedco) and French drilling company Forex. Transocean employs approximately 26,300 people worldwide and has a fleet of 136 vessels and units as of March, 2009. It was incorporated in the Cayman Islands while the principal office is in Houston, Texas. On December 8, 2008, the company’s shareholders voted to move its incorporation from the Caymans to Zug, Switzerland. The company has offices in 20 countries around the world, with major offices in Stavanger, Aberdeen, Perth, Brazil, Indonesia and Malaysia. On July 23, 2007, Transocean announced a merger with GlobalSantaFe Corporation. The merger was completed on November 27, 2007.” wiki source

Steven L. Newman, CEO became CEO of Transocean in March 2010 just before the explosion. Newman joined the company in 1994 in the Corporate Planning Department. Mr. Newman holds a Bachelor of Science degree in Petroleum Engineering from the Colorado School of Mines and an MBA from the Harvard University Graduate School of Business.

Macondo prospect:
“The Macondo prospect is located on Mississippi Canyon Block 252 in the Gulf of Mexico in a water depth of 4,993 feet (1,522 meters). BP serves as the operator and holds a 100% interest in the prospect, which was acquired at the MMS Lease Sale #206 in March 2008. On Feb. 23, 2009 an EP was submitted to MMS (OCS-G 32306) proposing to drill and temporarily abandon two exploratory wells on the field. Transocean’s Deepwater Horizon semisub, which caught fire on April 20, 2010, was drilling the Macondo prospect. According to Dow Jones, the well had reached a depth of at least 11,500 feet (3,502 meters), when BP filed a permit with MMS to temporarily abandon the well. The rig sunk after erupting into flames from a blowout. BP may drill a relief well, if required, and will utilize a nearby drilling rig, which is available to commence drilling immediately source.”

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Canada’s Northern Edge: PetroChina Investing in Oilsands

Draft! My Google Map entitled Oil Sands, delicious, papergirls, EndNote, YouTube, Draft!

See also

Places of interest:
MacKay River: In the story on The difference is spelling of McKay in Fort McKay and MacKay River is confusing. Is McKay River (known locally as Red River) the same river as MacKay River? Where is Devon?

National Geographic suggests the potential worth of the Alberta oil sands is $80 trillion.

See also

Notes

Bitumen is basically oil-soaked sand.

Timeline

1965 Karl Clark, a patient chemist, took 45 years to perfect a hot-water process in which bitumen frothed to the top and sand settled to the bottom. He used his wife’s washing machine. In 1965 the Great Canadian Oil Sands Company (now Suncor) ran the first commercial application of Clark’s hot-water process producing 45,000 barrels a day. In order to create the mine to feed the hot-water process, thousands of trees were bulldozed (Nikiforuk 2008).

1976 The Canadian Council of Chief Executives (CCCE) founded in 1976, has been Canada’s private sector leader in the promotion of international trade and investment liberalization. The members of the CCCE include the chief executive officers of 150 leading Canadian corporations. These companies collectively administer close to $3.0 trillion in assets, have annual revenues of more than $650 billion and account for a significant majority of Canada’s private sector investment, exports, training and research and development.

1997 Among other initiatives, the CCCE organized and hosted the first-ever APEC (Asia- Pacific Economic Cooperation) CEO Summit in 1997, during which it received His Excellency Jiang Zemin, then-President of China.

2002 Suncor began producing oil at MacKay River in 2002, while Firebag stages 1 and 2 began producing oil in 2004 and 2006 respectively. The sequence and timing of additional stages of Firebag and a potential expansion of the MacKay River facility will be considered as part of a review of oil sands growth projects.

2006 “In 2006, more than 100 of Canada’s public companies were acquired by foreign interests. The list includes some of the oldest and most well-established companies across a broad spectrum of industries – everything from hotels to retailing, to metals and mining. And the trend continues. I sometimes worry that we may all wake up one day and find that as a nation, we have lost control of our affairs. I think we ought to have a vigorous debate about the extent to which it matters whether or not ownership of our economy resides in Canada. I believe that ownership matters a lot. It matters not only for economic reasons but, more importantly in my opinion, for our own sense of self-esteem and pride in our country. My concern is not rooted in any chauvinism or in any antipathy towards foreign investment. Far from it. I happen to believe that globalization is a very positive development and that trade and investment across borders is to be encouraged. Canada benefits mightily from being “open for business” and we mustn’t do anything to change that. My concern stems from the fact that the world is awash with capital and that the consolidation trend in many industries will inevitably continue. We are a small country with a relatively small population. Canadian companies typically are not of a size to be global players. All too often, decisions affecting the future of important firms and the communities that they sustain are made solely with a view to the short-term financial consequences. I find it particularly bothersome that so many of our natural resource companies – which I would argue represent unique and irreplaceable assets – are now owned elsewhere. So what are some actions that we might consider taking? Well, what if we were to consider the feasibility of adopting ownership restrictions for certain sensitive sectors of our economy that would be similar to those that now apply to our financial institutions? After all, I would argue that it is a demonstrable fact that public policy regarding the ownership of our banks and insurance companies has served the country well; there is no shortage of competition in the financial services sector and the services available to Canadians are as comprehensive and as affordable as exist anywhere in the world. Securities regulation is another area where some useful debate could be undertaken. Many feel that Canada now has the most bidder-friendly environment in the world and that this may not always be in our country’s best interests. Under our rules, shareholder rights plans – also known as takeover defenses or “poison pills” – fall away after a very short 60 or 90 days, leaving the target company’s board with far too little time in which to explore alternatives. I believe that it is important for us as Canadians to have companies based here that are global leaders (D’Alessandro 2007-05-03).”

2005-11-18 “CEO Mission to China Builds on Canada’s Strategic Partnership with the World’s Largest Emerging Market.” Seventeen senior business leaders representing a wide swath of the Canadian economy will arrive in Beijing on Sunday for a five-day mission to further the development of stronger trade and investment ties between Canada and the People’s Republic of China. Organized by the Canadian Council of Chief Executives (CCCE), the mission marks the first purely private sector visit to China by a broadly based group of chief executives from among Canada’s largest enterprises. “Since the Council several years ago designated China as a country of the highest strategic importance, we have continued to seek opportunities to build an ever-broader foundation of mutual trust and fruitful bilateral cooperation.” The mission is led by Mr. d’Aquino and Richard L. George, Chairman of the CCCE and President and Chief Executive Officer of Suncor Energy Inc. Other participants include the CEOs of AGF Management Limited, Bentall Capital LLP, Brookfield Asset Management Inc., Canadian Oil Sands Limited, CanWest Global Communications Corp., Enbridge Inc., Harvard Developments Inc., Palliser Furniture Ltd., Pengrowth Management Limited, Petro-Canada, Polygon Homes Ltd., Power Corporation of Canada and Yanke Group of Companies. The CEO mission to China follows the recent establishment of the Canada-China Strategic Partnership by the Right Honourable Paul Martin, Prime Minister of Canada, and His Excellency Hu Jintao, President of the People’s Republic of China. The Partnership, which was announced during President Hu’s visit to Ottawa in September, represents a watershed in relations between Canada and China, encompassing a wide range of bilateral and international areas. China is Canada’s second-largest trading partner, after the United States. The Canadian and Chinese governments have pledged to double bilateral trade within five years, to about $60 billion a year by 2010. The Canadian CEOs will spend three days in Beijing followed by two days in Shanghai. The agenda includes meetings with senior officials of the Ministry of Foreign Affairs, the Ministry of Commerce, the National Development and Reform Commission, China International Capital Corporation, the China Securities Regulatory Commission and CITIC Group. “The emergence of China as a world economic power is opening up huge trade and investment opportunities for Canada,” Mr. d’Aquino said. “The Canadian Council of Chief Executives is committed to working closely at home and abroad to transform opportunity into success.” The CCCE, founded in 1976, has been Canada’s private sector leader in the promotion of international trade and investment liberalization. Among other initiatives, the CCCE organized and hosted the first-ever APEC (Asia- Pacific Economic Cooperation) CEO Summit in 1997, during which it received His Excellency Jiang Zemin, then-President of China. The members of the CCCE include the chief executive officers of 150 leading Canadian corporations. These companies collectively administer close to $3.0 trillion in assets, have annual revenues of more than $650 billion and account for a significant majority of Canada’s private sector investment, exports, training and research and development. In addition to Mr. d’Aquino and Mr. George, the members of the CCCE’s Executive Committee are: Honorary Chairman A. Charles Baillie; and Vice-Chairmen Dominic D’Alessandro, Paul Desmarais, Jr., Jacques Lamarre, Gwyn Morgan and Gordon Nixon, the chief executives respectively of Manulife Financial, Power Corporation of Canada, SNC-Lavalin Group Inc., EnCana Corporation and Royal Bank of Canada.

2009-09-01 “In a blockbuster [tentative] deal, privately owned Athabasca Oil Sands Corp. said PetroChina International Investment Co. Ltd. will buy a majority stake in its operations for $1.9 billion, marking the largest venture by China in the Canadian oilsands to date. [This is still to be reviewed by federal Industry Minister Tony Clement under the Investment Canada Act to evaluate the transaction's net benefit to Canada.] Athabasca Oil Sands said the state-owned firm, one of the world’s most valuable oil and gas companies, will acquire a 60 per cent working interest in the MacKay River and Dover oilsands projects. “This deal shows that the biggest energy company in the world has chosen Athabasca as their partner,” chief executive and president Sveinung Svarte said in a conference call Monday. ” They clearly told us that’s because they like our assets the best and, obviously, they (the oilsands) are the crude oil story.” The two in-situ projects sit on approximately five billion barrels of bitumen that have yet to be developed, and are part of Athabasca’s almost 10 billion barrels of bitumen reserves. The play is one of the largest in the Athabasca region:about 121,400 hectares. “The reason we chose PetroChina over other some of the other bids was, obviously, their financial strength,” chairman Bill Gallacher said. “But also their technological capabilities related to heavy oil and(steam assisted gravity drainage), which we believe will benefit our project both efficiency-wise and production-wise (O’Meara 2009-09-01.”

Who’s Who

Bill Gallacher is Chair of the privately-owned Calgary-based Athabasca Oil Sands Corp which made a blockbuster deal with state-owned PetroChina International Investment Co. Ltd. -one of the world’s most valuable oil and gas companies- who will acquire a 60 per cent working interest for $1.9 billion in the MacKay River and Dover oilsands projects which Athabasca Oil Sands Corp will continue to operate, marking the largest venture by China in the Canadian oilsands to date. company said the projects, which it will continue to operate, will cost between $15 billion and $20 billion to develop. It has filed for provincial approval for both projects and intends to file an application for the first 35,000-barrel-per-day phase of MacKay River at the end of the year [. . .] Athabasca Oil Sands said it had notified federal and provincial officials on the proposed Chinese investment, which would make the foreign entity a majority stakeholder in the oilsands projects. Gallacher did not anticipate any issues to arise from the Competition Bureau on the deal. (O’Meara 2009-09-01.”

Canadian Council of Chief Executives (CCCE), the mission marks the first purely private sector visit to China by a broadly based group of chief executives from among Canada’s largest enterprises. The (CCCE) founded in 1976, has been Canada’s private sector leader in the promotion of international trade and investment liberalization. The members of the CCCE include the chief executive officers of 150 leading Canadian corporations. These companies collectively administer close to $3.0 trillion in assets, have annual revenues of more than $650 billion and account for a significant majority of Canada’s private sector investment, exports, training and research and development. Among other initiatives, the CCCE organized and hosted the first-ever APEC (Asia- Pacific Economic Cooperation) CEO Summit in 1997, during which it received His Excellency Jiang Zemin, then-President of China. “Many of our members have friendships and commercial relationships in China stretching back years and in some cases decades,” said CCCE Chief Executive and President Thomas d’Aquino.

Thomas d’Aquino is “President and Chief Executive of the Canadian Council of Chief Executives. He has been described by Peter C. Newman as “the most powerful influence on public policy formation in Canadian history”, and listed by historian Jack Granatstein as one of the 100 most influential Canadians of the twentieth century. A prolific writer and speaker, he has worked as special assistant to the Prime Minister, special counsel on international trade law and international advisor on strategic business problems (Northern Edge).”

David Stewart-Patterson is the “CCCE’s Executive Vice President. He is also the author of Post Mortem: Why Canada’s Mail Won’t Move, described by the Financial Post as “rather like reading a less gentle version of one of Studs Terkel’s oral histories”. A former journalist, he has worked as parliamentary correspondent for The Globe and Mail‘s Report on Business and as business editor for CTV’s Canada AM (Northern Edge).”

Northern Gateway project The multi-billion dollar proposed Enbridge Northern Gateway Project to transport 400,000 barrels of oil sand production involving a new twin pipeline system running from the oilsands in Alberta, to a new marine terminal in Kitimat, British Columbia to export petroleum and import condensate. In 2005-04-14 Enbridge CEO Patrick D. Daniel announced that Enbridge had entered into a memorandum of understanding with PetroChina International Company Limited to cooperate on the development of the Gateway Pipeline and supply of crude oil from Canada to China. Daniel noted that the agreement with PetroChina was built on the favourable environment for trade between Canada and China which was cultivated by [former] Prime Minister Paul Martin, and the efforts of [former] Alberta Premier Ralph Klein to stimulate Chinese interest in the oil sands.” The project was shelved in 2006 when the market cooled. By 2009 as China’s thirst for energy and need to secure supply has increased perhaps the Northern Gateway Project might be reconsidered ( (O’Meara 2009-09-01).”

Enbridge Enbridge Inc. is involved in energy transportation and distribution in North America and internationally. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world’s longest crude oil and liquids transportation system. The Company also has international operations and a growing involvement in the natural gas transmission and midstream businesses. As a distributor of energy, Enbridge owns and operates Canada’s largest natural gas distribution company, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. Enbridge employs approximately 4,000 people, primarily in Canada, the U.S. and South America. Enbridge’s common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the U.S. under the symbol ENB. Information about Enbridge is available on the Company’s web site at www.enbridge.com. Enbridge proposed the Northern Gateway Project and is involved in internal pipeline inspection and invests heavily in innovative leak detection technology. Enbridge has a computer system that can electronically monitor pipelines 24/7 from the Enbridge operations control centre. They also promise to put in safety control valves and leak detection systems to provide a strong safeguard for the environment.”

Andrew Nikiforuk published Tar Sands: Dirty Oil and the Future of a Continent with Vancouver-based David Suzuki Foundation-Greystone Books in 2008 in which he argues that, “Canadian taxpayers, who made $150 million [Canadian] in royalties from mining activities between 1966 and 2002, have spent more than $4 billion tidying up scores of contaminated sites…” (2008:100)..

Webliography and Bibliography

D’Alessandro, Dominic. 2007. “How can we preserve Canadian ownership?” Perspectives: 8.

d’Aquino, Thomas and David Stewart-Patterson. Northern Edge: How Canadians Can Triumph in the Global Economy.

Gelsi, Steve. 2009-09-01. “Energy stocks fall hard as broad market weighs.” MarketWatch. Issue:

O’Meara, Dina. 2009. “China’s $1.9B Alberta oilsands deal: PetroChina partners with Athabasca Oil Sands.” Calgary Herald.

RTTNews. 2009. “PetroChina To Acquire 60% Stake In Two Athabasca Oil-Sands Projects For US$1.7 Bln – Update.”

Nikiforuk, Andrew. 2008. Tar Sands: Dirty Oil and the Future of a Continent. Vancouver: David Suzuki Foundation-Greystone Books.

Unprecedented economic and financial crisis reshapes thoughts on trust and integrity

Governing Board of the European Baha’i Business Forum (EBBF). 2009-06. “An Ethical Perspective on Today’s Economic Crisis: A statement from the European Baha’i Business Forum.”

“The world is passing through an economic and financial crisis unprecedented in modern times. Its global scope transcends the cyclical adjustments of national economies and the corrective instruments usually used by business and national governments. The general malaise and loss of confidence point to deeper issues and more fundamental flaws in the economic system, extending to a crisis of leadership and values. This unprecedented crisis, together with its accompanying social breakdown, reflects a profound error of conception about human nature itself. We are being shown that, unless the development of society finds a purpose beyond the mere amelioration of material conditions, it will fail to attain even this goal. That purpose must be sought in spiritual dimensions of life and motivation that transcend a constantly changing economic landscape and an artificially imposed division of human societies into “developed” and “developing”. The European Baha’i Business Forum recognizes in this situation an opportunity to reshape the fundamental concepts and structures that will not only lift us from this crisis but set us on a road towards a new set of institutions and behaviours which will enable humankind to prosper. As the present crisis is fundamentally one of trust and integrity, and therefore ethical in its foundation, its solution cannot be a mere institutional reorganization or some additional regulatory measures. It needs an ethical response at all levels: the individual, the corporation and the government and regulatory entities. There is no quick fix to this situation. Several principles must be considered while reshaping our thinking on institutions and the individuals that compose them. We need to replace the concept of self-centred materialism with that of service to humanity, competition with cooperation, corruption with ethical behaviour, sexism with gender balance, more authoritarian legislation with personal ethics, national regulation with international supervision, protectionism with world unity, and injustice with justice. EBBF promotes and welcomes engagement with the widest possible community to develop together the new framework. Given the importance of the business community in the world, we should draw on its special capabilities and resources, in collaboration with governments, international organizations and NGOs, to design the institutional framework and the guiding principles of the new economic system. We call on peoples from all businesses, countries, and walks of life to work together to build a new economic system based upon equity and justice (EBBF 2009-06).”

Who’s Who

“EBBF is a network of over 400 women and men, a community of people passionate about bringing ethical values, personal virtues and moral leadership into their workplaces. Its membership is diverse and crosses generations, borders, sectors and beliefs. It began in 1990 and is now present in over 60 countries. EBBF’s vision is to enhance the well-being and prosperity of humankind. It believes that positively influencing the world of business, starting from the inspiration of action by each of its members, is an important step in this direction (EBBF 2009-06).”

Notes

“EBBF promotes seven core values that it feels are of strategic importance in enhancing business performance: Business Ethics, Corporate Social Responsibility (CSR), Sustainable Development, Partnership of Women and Men, A New Paradigm of Work, Consultation in Decision-Making, Values-Based Leadership (EBBF 2009-06).”

Webliography

Governing Board of the European Baha’i Business Forum (EBBF). 2009-06. “An Ethical Perspective on Today’s Economic Crisis: A statement from the European Baha’i Business Forum.” Chambery, France.

Viral Mapping

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Swine flu, aka A (H1N1) and North American influenza.

Timeline

1994 Smithfield Foods Inc. who own half of the Granjas Carroll de Mexico, began operating pig farms in the region By the time of the pandemic in March 2009, they were the major producer in the country, with 907 workers, 500,000 thousand pigs in developing states of Veracruz and Puebla. Their website from their headquarters in Perote, Mexico claimed that they 56,000 sows in 2008 producing 950,000 hogs. They are 12 such mega farms surrounding La Gloria, Mexico, a hillside hamlet of c. 3,000 people in the located in the municipality of Perote, Veracruz. Residents of La Gloria, Mexico have long complained that some of the pits that hold pig waste are not properly lined; they fear their groundwater is contaminated. They’re frustrated and angry, too, about the stench and the swarms of flies that invade their village. Granjas Carroll de Mexico, half-owned by U.S.-based Smithfield Foods Inc., operates dozens of farms around La Gloria.

2009-02 In the end of February in La Gloria, Mexico, a hillside hamlet of c. 3,000 people in the located in the municipality of Perote, Veracruz, many people became ill with symptoms similar to a bad cold.

2009-03-18 Mexican government reported an unusually high level of flu-like illnesses.

2009-03-23 Veracruz health officials arrived in La Gloria, Mexico to take saliva samples. About a third of some 1,300 townspeople who sought medical attention – 450 or so – were diagnosed with acute respiratory infections and given surgical masks and antibiotics. (Washington Post).

Edgar fell ill a bit later; the energetic 5-year-old retreated to his bed with a high fever. Other kids in his school already were sick.

2009-03

2009-04-12 “By early April, the Veracruz government notified Mexican authorities of a possible flu outbreak in La Gloria. This alert happened to come around Holy Week, a time when lots of people in this largely Catholic country travel to visit family. On April 12, Mexican health authorities notified the CDC and the Pan American Health Organization of the unexplained cases of severe respiratory illness. One day later, people started dying (Cohen and Rodriguez 2009-05-01).”

2009-04-13 Adela Maria Gutierrez, a 38-year-old mother of three, was the first to die of H1N1 influenza virus. She had “arrived at a hospital in Oaxaca, in far southern Mexico, gasping for air, her oxygen-starved hands and legs a ghastly shade of blue. Her death was not just tragic, but alarming: Gutierrez had worked door-to-door for Mexico’s tax collection agency, interviewing scores of people. As it turns out, one of her co-workers, a temporary employee, was from Veracruz, the state on the Gulf of Mexico where the first swine case was confirmed. Family members said that woman had a bad cough (Cohen and Rodriguez 2009-05-01).”

2009-04-12 First two cases of A (H1N1) in California BBC 2009 Outbreak Map.

2009-04-25 “A day after seven new cases are confirmed in the US, the World Health Organization declares a Public Health Emergency of International Concern. From April 17-25 1, 455 cases of suspected A (H1N1) flu investigated. BBC 2009 Outbreak Map.

2009-04-26 Canada had 6 confirmed cases of A (H1N1); US had 20; Mexico had 18 BBC 2009 Outbreak Map.

2009-04-28 Confirmed cases of A (H1N1): UK had 2, Spain had 2, US had 64; New Zealand had 3; Mexico had 20. BBC 2009 Outbreak Map.

2009-04-29 Confirmed cases of A (H1N1): Canada: 13; UK:5 (London, Polmont, Redditch, Paignton); Israel:2; Spain:10; US:91; New Zealand:3; Austria:1; Germany:3; Mexico: 26. Deaths caused by A (H1N1) Mexico: 7; US:1; BBC 2009 Outbreak Map.

2009-05-01 Confirmed cases of A (H1N1): Canada: 35; UK:10; Israel:2; Spain:13; US:109; New Zealand:4; Austria:1; Germany:4; Mexico: 300; Peru:1; Costa Rica:2; Netherlands:1; Switzerland:1; Hong Kong:1. Deaths caused by A (H1N1) Mexico: 12; US:1. The UK, US, Canada, Spain, Germany confirm cases of secondary transmission. BBC 2009 Outbreak Map.

2009-05 “Influenza A(H1N1) – update 8.1. 1 May 2009 — “The situation continues to evolve. As of 23:30 GMT, 1 May 2009, 13 countries have officially reported 367 cases of influenza A(H1N1) infection. The United States Government has reported 141 laboratory confirmed human cases, including one death. Mexico has reported 156 confirmed human cases of infection, including nine deaths. The following countries have reported laboratory confirmed cases with no deaths – Austria (1), Canada (34), China, Hong Kong, Special Administrative Region (1), Denmark (1), Germany (4), Israel (2), Netherlands (1), New Zealand (4), Spain (13), Switzerland (1) and the United Kingdom (8). Further information on the situation will be available on the WHO website on a regular basis. WHO advises no restriction of regular travel or closure of borders. It is considered prudent for people who are ill to delay international travel and for people developing symptoms following international travel to seek medical attention, in line with guidance from national authorities. There is also no risk of infection from this virus from consumption of well-cooked pork and pork products. Individuals are advised to wash hands thoroughly with soap and water on a regular basis and should seek medical attention if they develop any symptoms of influenza-like illness.”

2009-05-01 “Swine flu has been confirmed in 16 deaths, all from Mexico (one Mexican toddler died in Houston). It has sickened nearly 350 people in Mexico, and about 200 others from New York to New Zealand, including children, teens, adults, students and tourists. It has rattled the world’s financial markets, pushed oil prices down, caused a run on surgical masks and hand sanitizers, closed schools and churches, postponed sporting events, prompted travel bans, rerouted cruise ships(Cohen and Rodriguez 2009-05-01).”

Webliography

BBC. 2009. Outbreak Map.

Cohen, Sharon; Rodriguez, Olga R. 2009-05-01. “How swine flu virus hopscotched the globe.” Washington Post

WHO. 2009-05-01-23:30 GMT. “Influenza A(H1N1) Update 8.1.

Grisham’s Social Issues Wrapped around a Novel

Will John Grisham’s legal drama The Appeal (2008) join other literary works like Upton Sinclair’s political fiction novel The Jungle (1906) and Rachel Carson’s literary broadside Silent Spring (1962) [1] in influencing changes in real world legislation? In his PhD dissertation Gordon (2008) argued that literary works such as those by Harriet Beecher Stowe, Karl Marx, Ralph Nader, Jonathan Swift, Upton and Carson, serve as legislative flash points and have had a demonstrable impact on the law.

Grisham’s writing is clearly popular fiction and he has enjoyed writing books with no redeeming social value like The Broker, but he now wants to tackle social issues (Grossman 2006.) He has fierce political convictions and admitted that, “Everything I’m thinking about writing now is about politics or social issues wrapped around a novel.” He admires the work of Truman Capote, John le Carré and John Steinbeck whom he would like to emulate. So is The Appeal also an appeal to reason [2]? 

John Grisham’s legal drama/legal thriller/crime novels deal with the power and influence of major US corporations in America and their potential for abusing the American legal system. Previous novels concluded with the victims being vindicated and giant corporations paying huge rewards for damages to personal health and to the environment. But in 2006 there was already a shift when he published his first book of nonfiction, a true-crime story entitled The Innocent Man.

The Appeal (2008) is the most openly political book he has written in which he probed the world of US judicial elections, a burning issue in the US (AF-P 2008). The debate over the best way for states to select judges is more than 160 years old. According to Wall Street Journal’s Levy, within days of the release of The Appeal, “critics of judicial elections began to connect it to examples of real-life corruption. Mr. Grisham himself says his story has “already happened” in West Virginia. Others have tried to link the book’s intrigue to next month’s Supreme Court election in Wisconsin, where a controversial judge is facing a strong challenge for re-election, helped in part by business groups. Mr. Grisham has plenty of allies in his crusade among liberal interest groups, who insist that judicial elections somehow represent a blight on the rule of law  (Levy 2008-03-20).”

In The Appeal fictional Wall Street financier Carl Trudeau, launched his appeal against plaintiffs from cancer county where his company had dumped toxins for years, to the Mississippi Supreme Court. Then he stacked the Court by funding an unknown to run against incumbent Court Justice Sheila McCarthy. Trudeau flooded media with ads designed to vilify Justice McCarthy as an extremely liberal judge who would protect criminals not citizens and would restrict gun ownership. Trudeau’s campaign allowed Fisk to win the election. Grisham in the telling of this fiction, practically laid out a formula for CEOs, corporate lawyers and politicians to overpower and ruin ordinary citizens while enjoying financial huge gains. The characters are highly stereotyped with lawyers and CEOs who are clearly the bad guys in this story. 

The mysterious, expensive consultant Barry Rinehart works quietly in the background using financing from from industries like energy, insurance, pharmaceuticals, chemicals, timber, all types of manufacturing as well as doctors, hospitals, nursing homes and banks, to target supreme court justices whose values differ from these special interest groups. He engineers the fixing of elections so the unfriendly judges lose to their own groomed judicial candidate. (31 states elect their appellate and supreme court judges while the remaining states appoint their courts.)  ”To Grisham, that is the sad truth: No one’s justice will be served. While chilling, Grisham’s tale of modern legal machinations is also, unfortunately, timeless (Patrick 2008-01).”

 ”Literature—even persuasively powerful literature—does not operate in a void: conditions must be ripe if it is to draw energy from the social milieu and thereby attain a kinetic force capable of influencing the law. This [...] requires an alignment of narratives: the literary narrative with the larger cultural narrative within which it subsists (Gordon 2008:41).”

Tagging

law and literature movement, dedicated interest groups, big-money politics, Amicus-Curia, Plaintiff’ Paradise, judicial hell holes, consumer-friendly, Cancer County, cancer cluster, pulpit for reform, real world politics, US legal system, vexatious corporate litigation, senior academic lawyers, appelate benches of the Federal Appeal Circuit and the Supreme Court, M$ anti-trust investigations, Anti-Trust suit compliance issue, proven complicity, meritless SCO litigation, Patent and Copyright systems, East Texas fiasco, legal corruption, amicus-curia briefs, Commerce and Justice, Economic Crisis, US corporate malfeasance, US corporate greed, US corporate lack of transparency, tort, Rylands rule, Fletcher v. Rylands, Johnstown Flood, 

Timeline of related events

1860 One of the wealthiest industrialists in England, John Rylands, a textile manufacturer, hired a contractor to dig a large ditch and create a reservoir to add water power for one of his mills. The reservoir collapsed into an abandoned coal-mining shaft which connected to Thomas Fletcher’s neighboring coal mines. The reservoir flood destroyed those mines. (Wiki, Shugerman 2008)

1865 Fletcher v. Rylands, 159 Eng. Rep. 737, 740. The dispute in Rylands concerned escape of water onto neighbouring land. Later cases in which the Rylands test was applied involved the escape of all manner of wastes and materials, extending outwards to a broad range of inherently dangerous activities considered essential to modern life. The Court found in favour of Fletcher and ordered Rylands to pay for all the property damage to the mine. The Court agreed that Rylands had a duty in maintaining the reservoir and of being liable for all harm caused by it with broad scope of liability. This case was a major development in modern law and has influenced many subsequent rulings. The changes in negligence law as a field of torts has in some jurisdictions incorporated the Rylands rule. (Wiki, Shugerman 2008)

1889-05-31 In the mountains east of Pittsburg, a dam holding back a 450-acre artificial recreational lake, one of the largest reservoirs in the world, collapsed unleashing 20 million tons of water into the valley below, completely destroying Johnstown and killing two thousand people. The elite members of the South Fork Fishing and Hunting Club, titans-of-industry including Andrew Carnegie, Andrew Mellon, and Henry Clay Frick (also called the Bosses Club) ignored the dam’s crumbling foundation, warnings of structural problems and leakage. It was one of the most deadly disasters in American history. The public focused its anger on the South Fork Club and its wealthy members, and the media called on the club members to compensate the Johnstown victims. Before the Flood, the court emphasized the “great public interest” of industry’s unfettered development, and dismissed the “mere personal [and] trifling inconveniences” that were caused by industrial damage, and which must “give way to the necessities of a great community.” (Shugerman 2008.)

1890s There was a rise of populists as critics of industry’s excess in the 1890s and ruling leaned towards Fletcher against Rylands (Shugerman 2008.)

1980s- US Supreme Court Judicial elections became increasingly nasty, noisy, and costly (Pozen 2008:265).

1981 John Grisham (born 1955) graduated from law school.

1988 The Willie Horton ad from the 1988 presidential race was considered to be offensive and race-bating.

1981-1991 John Grisham practiced law for nearly in Southaven, specializing in criminal defense and personal injury litigation.

1983-1990 John Grisham served in the state House of Representatives.

1984-1987 Grisham wrote his first novel A Time to Kill (1987) in his spare time exploring the theme of what would have happened if the girl’s father in a real trial had actually murdered her assailants. “After four years of practicing I got this idea for what I thought was a very compelling courtroom drama – small town, the South, a racial conflict – all seen through the eyes of an attorney who was basically me. A guy who wanted to be a big trial lawyer. That was my dream. I wanted people to call me – people who could pay me for the big case (Grisham in Slater 2009-01-27).”

1991 John Grisham’s novel, The Firm, was one of the biggest hits of 1991, spending 47 weeks on the New York Times bestseller list. Grisham gave up law and concentrated on writing. All his books have been bestsellers and six have been made into movies. Grisham lives with his wife and two children in Mississippi and Virginia.

1993 “Investor and philanthropist George Soros in 1993 created OSI as a private operating and grantmaking foundation to support his foundations in Central and Eastern Europe and the former Soviet Union. Those foundations were established, starting in 1984, to help countries make the transition from communism. OSI has expanded the activities of the Soros foundations network to encompass the United States and more than 60 countries in Europe, Asia, Africa, and Latin America. Each Soros foundation relies on the expertise of boards composed of eminent citizens who determine individual agendas based on local priorities (OSI).”

1999  Tabarrok and Helland investigated “the forces that explain why trial awards differ across the United States. In 23 states judges are elected and in 10 they are elected via partisan elections. Elections have two important effects. First, defendants are often out‐of‐state nonvoters while plaintiffs are typically in‐state voters. [They] predicted, therefore, that elected judges will redistribute wealth from out‐of‐state businesses to in‐state plaintiffs. Second, the realities of campaign financing require judges to seek and accept campaign funding from trial lawyers, who uniformly are interested in larger awards. [They]  hypothesized that these two forces cause awards to be larger in states where the judiciary is elected rather than appointed. [They]  also hypothesized that the demand for redistribution will increase as poverty increases and, thus, that awards will be larger in states with greater poverty. Using a sample of over 7,000 cases across 48 of the 50 states, [they]  found significant evidence in support of these hypotheses ( Tabarrok and Helland 1999-04).”

1994-2000 “By most measures, Grisham was the most successful novelist of the 1990s, when he sold over 60 million books. For seven straight years, 1994-2000, he had the best-selling novel in the country (Grossman 2006 ).”

2004 Swift boating refers to smear tactics used during the US Presidential campaign against candidate John Kerry. Vietnam veterans who served on the US Navy’s swift boats mounted a smear campaign to oppose Kerry who was a swift boat commander in Vietnam but was later allegedly involved in antiwar activities. 

2005-02-18 President Bush signed the Class Action Fairness Act of 2005. This pushed for by business and Republican leaders since President Bush took office in 2001. It targeted consumer-friendly “Plaintiff’ Paradise” courts also termed “judicial hell holes” by corporations being libeled in mutiple-state class action suits (like those in Madison and St. Clare in Illinois and Jefferson County, Texas accused of being pro-consumer). Texas. Those “judicial hell holes,” and others in Alabama and Mississippi, are the favorite venues for some in the plaintiffs’ bar because of consumer-friendly juries and elected judges who routinely certified national classes and apply their state law and/or the laws of other states. Such cases after 2005 ended up in federal court, where corporate defendants tend to do better (O’Brien 2005).

2007 US Supreme Court Justice Annette Ziegler was publicly reprimanded for a conflict-of-interest violation.

2007 Harvard Law School’s Shugerman’s paper entitled “The Twist of Long Terms: Disasters, Elected Judges, and American Tort Law” was selected for the Yale-Stanford Junior Faculty Forum and the Conference on Empirical Legal Studies, New York University. “The received wisdom is that American judges rejected strict liability through the nineteenth and early twentieth century. To the contrary, a majority of state courts adopted Rylands v. Fletcher and strict liability for hazardous or unnatural activities after a series of flooding tragedies in the late nineteenth century. Federal judges and appointed state judges generally ignored or rejected Rylands, while elected state judges overwhelmingly adopted Rylands or a similar strict liability rule. In moving from fault to strict liability, these judges were essentially responding to increased public fears of industrial or man-made hazards. Elected courts were more populist: They were more likely to adopt strict liability than appointed courts. But surprisingly, state courts elected to longer terms were the most populist. Many of these judges never expected to face another election, but even without direct political pressure, they were the most responsive group of judges in adopting Rylands after the floods. This historical episode illuminates the differences between types of political influence on judges. Judicial elections generally may produce judges more sympathetic to public opinion and more responsive to recent events. Longer terms, shielding judges from opposing political pressure from industry favoring the fault rule, then allowed judges to follow those sympathies or new perceptions of public interest in favor of strict liability. The historical record suggests that judicial elections plus long terms shaped a more responsive bench. A shorthand for these effects are: filtering, role fidelity, and fear and favor. First, these elections created a populist filter: Elections seemed to have filtered out some elite jurists from major urban centers and filtered in more local lawyer-politicians, who would be more connected to public opinion. Second, borrowing from the language used by nineteenth-century advocates of judicial elections and by modern historians, I suggest that the elected judges’ “fidelity” to the people led them to perceive public opinion as an important factor in their decisions. Even with filtering and role fidelity, judges elected to short terms would still face the reality of “fear and favor,” due to special interests and partisan renomination politics. Elected judges with more job security could be more faithful to their role (hence, “role fidelity”) and could follow their own perception of public interest or public opinion, rather than industrial interests. The Article concludes with some priorities for judicial reform based upon this historical episode.”

2008-01 Grisham noted that there was a lot of truth in The Appeal. ”As long as private money is allowed in judicial elections we will see competing interests fight for seats on the bench.” The Appeal was published in the midst of the presidential primaries making it all the more compelling (Memmott 2008).

2008 “In John Grisham’s new novel, Mississippi judges are bought, marketed and sold.  In a crowded courtroom, a jury delivers a multi-million-dollar verdict against a chemical company accused of tainting a town’s water supply with waste. The chemical company retaliates with an appeal, but in order to win, it rig the state Supreme Court. As judicial elections loom, the company hand picks an unsuspecting judge and manipulates him for the job. In The Appeal, Grisham provides a cautionary tale about judicial elections and political campaigns in general. Like the so-called “swift-boating” of political candidates in the last presidential election, Grisham’s characters resort to harsh smear tactics to defeat their opponents. Jacki Lyden spoke with Grisham about his novel, judicial politics and his personal political engagement. In a crowded courtroom in Mississippi, a jury returns a shocking verdict against a chemical company accused of dumping toxic waste into a small town’s water supply, causing the worst “cancer cluster” in history. The company appeals to the Mississippi Supreme Court, whose nine justices will one day either approve the verdict or reverse it ( All Things Considered).”

2008-03-18 Citizen Action of Wisconsin, a progressive citizen advocacy group dedicated to bringing transparency to the electoral system, filed a compliant against Michael Gableman with the Wisconsin Judicial Commission claiming the little-known county judge from Burnett County in northwestern Wisconsin used attack ads that were “highly offensive and deliberately misleading” against Incumbent Justice Louis Butler claiming he found a “loophole” to free a convicted sex offender.” The ad placed a picture of a convicted rapist and Supreme Court Justice Louis Butler on the screen at the same time. Both are black. Butler handled the man’s appeal of his rape conviction when he worked as a public defender.

2008-04 “Challenger Michael Gableman defeated incumbent Justice Louis Butler to win a seat on the Wisconsin Supreme Court in Tuesday’s election. The results mean that a sitting Supreme Court justice won’t return to the bench for the first time in 40 years. The interest in the race by special interests is troubling to some, including the unseated justice, WISC-TV reported. Third-party TV ads were a centerpiece of one of the most negative Supreme Court races in state history (Channel 3000).”

2008-10 “The Wisconsin Judicial Commission alleges Supreme Court Justice Michael Gableman violated the code of judicial conduct, which prevents judicial candidates from knowingly misrepresenting facts about their opponent. Gableman’s campaign ran an ad in the Milwaukee area before the April election against Incumbent Justice Louis Butler claiming he found a “loophole” to free a convicted sex offender.” Gableman defeated incumbent Justice Louis Butler in the April election. At the time, Gableman was a little-known county judge from northwestern Wisconsin. Citizen Action of Wisconsin, a progressive citizen advocacy group dedicated to bringing transparency to the electoral system, filed the compliant with the Wisconsin Judicial Commission on March 18. One local government watchdog group said fallout from recent Supreme Court campaigns is cause for concern.Channel3000

2008 Soros’ Open Society Institute made donations to dozens of groups seeking to sway the judicial selection process in states from Illinois to North Carolina, as well as funding national groups like Justice at Stake. According to Levy of the right-wing Wall Street Journal Soros and Grisham prefer “merit selection” where in order to keep politics out of judicial appointments, an appellate judicial commission selects a slate of judges from which the governor must choose. Right-wing critics argue that judicial commissions can also become agents of politicization leaning towards to left. Levy cited a 2007 “Harvard study” supporting his own views on an elected judiciary. The 2007 Harvard study mentioned by Levy was actually a paper presented at a Junior Faculty Forum based entirely on a historical analysis of how judges in the 19th century responded to Rylands (1865-). Given the complexity of the 21st century surely there are better sources for evaluating the strengths and weaknesses of merit selection versus elected judiciary. Grisham is merely drawing attention to potential areas of corruption and the lack of information available to civil society by using popular culture.

 

2008-12-08  US Federal authorities in New York arrested Marc S. Dreier in a $100 million fraud scheme, portraying his recent undertakings as a massive hedge fund fraud. The Yale graduate who 1996 founded the Dreier L.L.P. 250-lawyer firm in 2006 allegedly took advantage of the current financial crisis by selling phony debt to hungry hedge funds looking for deals. (Rashbaum and Kowan 2008-12-08). 

2009-01 In a 2008 statewide survey entitled ”Public Attitudes Regarding the Selection of Judges in the State of Washington“ funded in part by Open Society Institute Professors Brody and Lovrich reported that,

“A little over 26% of respondents rated Washington’s current, non-partisan election method of judicial selection as good or very good, while 35% rated it bad or very bad; The largest areas of concern about the current method of selecting judges involved the lack of contested elections, the prominence of judges being appointed to the bench, and the lack of information available to voters to use in judicial elections; A little over 60% of respondents rated a commission system (merit system) of judicial selection to be good or very good, while roughly 16% rated such a selection system as bad or very bad; The aspects of the commission system viewed most positively were: (1) the use of a nominating commission as part of the appointment process; (2) the fact that retention elections provide voters with the opportunity to vote for or against all judges at regular intervals; (3) the fact that all judges may be held accountable by voters without the need for a person to run against a judge in a contested election; and (4) that judges always appear on election ballots at regular intervals; When asked to choose between the current system or a commission system of judicial selection, over 60% indicated a preference for adopting a commission system while about 23% preferred staying with the current system; Over 90% of respondents would support the development of a judicial performance evaluation program in Washington to provide information to voters about candidates in local and statewide judicial elections.”

2009-01-27 Wall Street Journal’s Dan Slater interviewed John Grisham to talk about his 22nd book. Grisham revealed that his favorite story was that of  Marc Dreier. “[I]t’s incredible. Pretending to be someone else? Taking over a conference room? I knew something was wrong when I read about his 120-foot yacht. When you’ve got a yacht that big you’re living like a billionaire. And you can’t do that as a New York lawyer. I don’t care how big your firm is.” Grisham explained that even as a writer of fiction that he could not improve on the real life stories of Dreier and Madoff. They have already been covered too much by the media. “The sushi restaurant (Dreier) owned? All the cars? The secretaries making $200,000 a year? It’s too much. When I see stuff like that my imagination just goes into overdrive (Grisham interviewed by Slater 2009-01-27).”

Notes
1. Randy Gordon’s PhD dissertation (2008) examined the impact of literary works on rehumanizing law and democracy. Gordon reiterated the argument that there “is a direct and demonstrable connection between publication of The Jungle and adoption” of the 1906 Meat Inspection Act and the Pure Food and Drugs Act (Gordon 2008:41). Historian James Harvey Young (1981) observed that two key political figures, James R. Garfield and Senator Alfred J. Beveridge presented President Theodore Roosevelt with Sinclair’s novel. Gordon also added that other landmark legislation in the meat packing industry book decades to be adopted. President, John F. Kennedy asked his Scientific Advisory Committee to investigate Carson’s claims and they largely vindicated Carson’s work (1963-05) particularly in the report’s condemnation of indiscriminate pesticide use and call for additional research into potential health (Gordon 2008:52).

2. Author and journalist Upton Sinclair’s influential novel entitled The Jungle (1906) about the corruption of the American meatpacking industry is an example of how fiction portrayed social reality and is an early example of is one of the finest examples of the “muckraking” tradition begun by journalists. In this novel Sinclair contrasted the lives of the “have-nots” and “haves” and deplored American “wage slavery”. Sinclair’s novel was first published in the left-wing newspaper The Appeal to Reason.

3. “Law is institutional normative order (MacCormick 2007).”

4. “The rhetoric of scientific objectivity, pressed too hard and taken too seriously, has led us to people like B.F. Skinner on the one hand and like Althusser on the other—two equally pointless fantasies, both produced by the attempt to be ‘scientific’ about our moral and political lives (Rorty 1996:573, 585).”

5. In his influential article on law’s autonomy by Judge Posner (1987) argued that law had been treated historically in practice and as a matter of training as if it were an autonomous discipline (Posner 1987:761 in Gordon 2008:17). 

6. The concept of “Narrative” as developed by Gordon’s in his literature review has a common thread of a “story,” a relational and temporal ordering of human events that culminates in “closure.” His sources include definitions of narrative as: “a story of events arranged in time sequence and offering some sort of meaning (Papke and McManus 1999:449)”; “the organization of material in a chronologically sequential order and the focusing of the content into a single coherent story . . . its arrangement is descriptive rather than analytical and . . . its central focus is on man not circumstances (Stone 1979:3)”; “first a ‘selective appropriation of past events and characters;’ second, a temporal ordering that presents these events with a beginning, a middle and an end; and third, an overarching structure that contextualizes these events as part of an opposition or struggle (97)”; “a recognizable discourse or operation . . . that . . . can be abstracted from [its] medium [of expression] . . . as in the plot summary (Clawson 1998)”; a story (99); “a metacode, a human universal on the basis of which transcultural messages about the nature of a shared reality can be transmitted (100).”

 

Webliography and Bibliography

2008-01-27. “Grisham’s ‘Appeal’ Tackles Down-and-Dirty Politics. “ All Things Considered. 

Agence France-Presse. 2008-01-09 “Author John Grisham has no shortage of book ideas.” Madrid. 

Asimow, Michael. “Analyse This! John Grisham’s Lawyers from a Megafirm.” Picturing Justice. University of San Francisco. 

Brody, David; Lovrich, Nicholas. 2009-01. “Public Attitudes Regarding the Selection of Judges in the State of Washington: Results of a Statewide Survey 2008.” American Judicatur Society and Washington State Judicial Selection Coalition. 

98 Brooks, supra note 91, at 1.

Clawson, Mark A. 1998. “Telling Stories: Romance and Dissonance in Progressive Legal Narratives.” 22 Legal Studies F. 353, 364 (citing and partially quoting Ewick, Patricia; Silbey, Susan S. 1995. “Subversive Stories and Hegemonic Tales: Towards a Sociology of Narrative.” 29 Literature and Sociology Review. 197, 200.

Gordon, Randy. 2008. “Rehumanizing Law: a Narrative Theory of Law and Democracy.” Ph.D., Law. The University of Edinburgh. 2008.

Grossman, Lev. 2006-10-09. “Grisham’s New Pitch.” Time.

Levy, Collin. 2008-03-20. “Grisham’s Judicial Appeal.” Wall Street Journal. 

Hamilton, Kevin J. 2008-01-29. “New side to John Grisham: storytelling of substance.”  The Seattle Times. (Hamilton 2008)

MacCormick, Neil. 2007. Institutions of Law: an Essay in Legal Theory.

Memmott, Carl.  2008-01-28. “Grisham’s ‘Appeal’ rules harshly on bought election.” USA Today. 

O’Brien, Tim. 2005-03-21. “New Jersey No ‘Judicial Hell Hole’: State judiciary’s restraints may spare it full impact of Class Action Fairness Act.” New Jersey Law Journal. CLXXIX:12. 

Papke, David Ray; McManus, Kathleen H. 1999. “Narrative and the Appellate Opinion.” 23 Legal Studies. F. 449, 449.

Patrick, Bethanne. 2008-01. “Justice Denied.” Washington Post. 

Posner, Richard A. 1987. “The Decline of Law and an Autonomous Discipline: 1962-1987.” 100 Harvard Law Review. 761. 

Pozen, David. 2008. “The Irony of Judicial Elections.” 108 Columbia Law Review.

Rashbaum, William K; Cowan, Alison Leigh. 2008-12-08. “Lawyer Is Accused in Massive Hedge Fund Fraud.” New York Times. 

Rorty, Richard. 1996. “Solidarity or Objectivity.” in Cahoone, Lawrence. Ed. 1996. From Modernism to Postmodernism. 573, 585.

Slater, Dan. 2009-01-27 A Law Blog Q&A With John Grisham. Wall Street Journal. 

Stone, Lawrence. 1979. “The Revival of Narrative: Reflections on a New Old History.” 85 Past and Present. 3, 3.

Shugerman, Jed H. 2008. “The Twist of Long Terms: Disasters, Elected Judges, and American Tort Law.” Harvard Law School.

 

Tabarrok, Alexander; Helland, Eric. 1999-04. ”Court Politics: The Political Economy of Tort Awards.” The Journal of Law and Economics. The University of Chicago. Vol. 42. 

 

99 Van Dunne, supra note 92, at 463.

100 White, supra note 90, at 6.

Young, James Harvey. 1981-06.“The Long Struggle for the 1906 Law.” FDA Consumer.

Virtual Money? $14 trillion lost from world stocks in 2008

The credit crisis erased $14 trillion (McKeef 2008-12-31) from world stock markets in 2008. Where does $14 trillion in world stock markets go? How can that much capital disappear from the market? The infamous year 2008 will be known in the future as the year that fundamental concepts in the moral mathematics of the market were forever changed. This credit crisis was the worst since the Great Depression of the 1930s but its ramifications may be even deeper.

                                                                                                                                                                          
How can we visualize a billion dollars? How much more difficult is it to imagine a trillion dollars?

The most recent wiki entry (2009-01-01) describes how any attempt to visualize numbers higher than a million is complicated because there are too systems of numeric names and the difference between the two scales grows as numbers get larger. Million is the same in both scales, but the long-scale billion is a thousand times larger than the short-scale billion, the long-scale trillion is a million times larger than the short-scale trillion. The short scale system is used in the US and a long scale system is used in the UK. The short scale system of numeric names means every new term greater than million is 1,000 times the previous term: “billion” means “a thousand millions” (10⁹), “trillion” means “a thousand billions” (10¹²), and so on. Long scale refers to a system of numeric names in which every new term greater than million is 1,000,000 times the previous term: “billion” means “a million millions” (10¹²), “trillion” means “a million billions” (10¹⁸). (wiki).”

6 zeros = 1 million, a thousand thousands or (10⁶)1, 000, 000
8 zeros = a hundred million (10⁸) 100, 000, 000 this image
9 zeros = 1 billion in the short scale system used in the US = a thousand millions or (10⁹) or 1,000,000,000
12 zeros = 1 trillion in the short scale system used in the US = “a thousand billions (10¹²) or 1,000,000,000,000
12 zeros = 1 billion in the long scale system used in the UK: 1,000,000,000,000
18 zeros = 1 trillion in the long scale system used in the UK is a million billions (10¹⁸) or 1,000,000,000,000,000,00

1,000,000 6 zeros = 1 million, a thousand thousands or (10⁶)1, 000, 000

This Adobe Photoshop image posted in my ocean.flynn Flickr account was my attempt to visualize 100,000,000 dollars

 ”World stock markets ended on an uptick for the year on Wednesday, after some bourses registered their worst annual losses in history. Global stocks as measured by the MSCI world index ended up 0.76 percent for the day and posted their first monthly gain in seven months, but lost 43.36 percent for the year. About $14 trillion (9.6 trillion pounds) in market capitalisation was erased from world stock markets in 2008 in the wake of the worst credit crisis since the Great Depression of the 1930s. “It has been a shocking year, hardly anything was spared in the carnage,” said Michael Heffernan, strategist at Austock Group in Australia. U.S. stocks edged up on Wednesday and saw their first monthly gain in five months, but the year has been the worst for Wall Street stocks since the Great Depression (McKeef 2008-12-31).”

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McKeef, Clive. 2008-12-31. “World stocks end up after historic losses.” Business News. Reuters.

Economics 101: Rewriting the Textbooks

Deborah Yedlin (2008-12-30) of the Calgary Herald’s Business section succinctly summarized the economic nightmare of 2008 in which the investment banking industry collapsed, Chicago school economics theories were debunked and their heroes dethroned, trusted risk management managers were vilified, and the axis of financial power shifted from the West to the East.

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Citations

“The consequences of the lack of regulation in the shadowy subprime housing market, and the ability of banks to get loans off their balance sheets and have investment banks repackage them as rated securities, allowed for the spreading risk. It was a practice that was supposed to ensure if something went bad, the damage would be contained because the exposure would be spread out. It was an axiom that was lent an even greater reliability because U. S. Federal Reserve chairman Alan Greens-pan was a believer in it. As many are now painfully aware, the dominos began to fall when two hedge funds at Bear Stearns collapsed in late 2007. This started the clock ticking on the 84-year-old investment bank, which proceeded to lose the confidence of investors and counterparties and was sold post-haste to JP Morgan Chase in March for $10 a share with the “help” of the U. S. Federal Reserve and its investment banking veteran, Hank Paulson (Yedlin 2008-12-30).”

“Nobel Prize-winning economist Paul Krugman, in opining on the multi-billion fraud perpetrated by Bernard Madoff, suggested one of the reasons he was not discovered was because of society’s worship of the wealthy. Too many, he said, have drawn the conclusion that people who have made huge sums of money must be very smart and to question these individuals would be to insult them (Yedlin 2008-12-30).”

Webliography and Bibliography

Yedlin, Deborah. 2008-12-30. “Storybook year ends in economic nightmare.” Calgary Herald.

NYU sues GMAC’s chair Merkin re:Madoff tie: US bailout GMAC

US Circumlocution Offices [1]: Federal Reserve approved General Motors (GMAC) Financial Services’ application to become a bank-holding company which will let them benefit from government bailout dollars. New York University sued Merkin GMAC chairman for feeding money to Madoff and concealing involvement from investors like NYU.

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Notes

1. Charles Dickens invented the term Circumlocution Offices to describe governmental and bureaucratic indolence and incompetence. By passing work through many hands of the Circumlocution Offices, it is easy to avoid doing anything. Dickens’ character in Little Dorrit, Mr. Merdle, who embarked on a fraudulent scheme is now being compared to Madoff and institutions such as the U.S. Securities and Exchange Commission (SEC), etc are being compared to Circumlocution Offices.

“The U.S. Federal Reserve on Wednesday approved GMAC Financial Services’ application to become a bank-holding company, a status that would give the auto-financing arm of General Motors Corp. access to government bailout dollars and the Fed’s discount window. The move complements a $17.4 billion emergency loan package the government extended to GM and (Wall Street Journal 2008-12-24)…

“Merkin, who is chairman of GMAC LLC, is named in the lawsuit brought by NYU, along with his Gabriel Capital LP fund and Ariel Fund Ltd. GMAC is the finance business owned by General Motors Corp and private equity firm Cerberus Capital Management LP. The Funds ‘feeding’ money to Madoff, including Ariel, made a conscious effort to conceal Madoff’s involvement from their own investors,” the NYU lawsuit said. “This concealment was a requirement dictated by Madoff, which was agreed to by Merkin and other ‘feeder’ funds (McCool Reuters 2008-12-24).”

Mapping Bernie Madoff Making Off with Money

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It reads more like fiction than mainstream news.

“But, at about the time of High ‘Change, Pressure began to wane, and appalling whispers to circulate, east, west, north, and south. At first they were faint, and went no further than a doubt whether Mr Merdle’s wealth would be found to be as vast as had been supposed; whether there might not be a temporary difficulty in ‘realising’ it; whether there might not even be a temporary suspension (say a month or so), on the part of the wonderful Bank. As the whispers became louder, which they did from that time every minute, they became more threatening. He had sprung from nothing, by no natural growth or process that any one could account for; he had been, after all, a low, ignorant fellow; he had been a down-looking man, and no one had ever been able to catch his eye; he had been taken up by all sorts of people in quite an unaccountable manner; he had never had any money of his own, his ventures had been utterly reckless, and his expenditure had been most enormous. In steady progression, as the day declined, the talk rose in sound and purpose. He had left a letter at the Baths addressed to his physician, and his physician had got the letter, and the letter would be produced at the Inquest on the morrow, and it would fall like a thunderbolt upon the multitude he had deluded. Numbers of men in every profession and trade would be blighted by his insolvency; old people who had been in easy
circumstances all their lives would have no place of repentance for their trust in him but the workhouse; legions of women and children would have their whole future desolated by the hand of this mighty scoundrel. Every partaker of his magnificent feasts would be seen to have been a sharer in the plunder of innumerable homes; every servile worshipper of riches who had helped to set him on his pedestal, would have done better to worship the Devil point-blank. So, the talk, lashed louder and higher by confirmation on confirmation, and by edition after edition of the evening papers, swelled into such a roar when night came, as might have brought one to believe that a solitary watcher on the gallery above the Dome of St Paul’s would have perceived the night air
to be laden with a heavy muttering of the name of Merdle, coupled with every form of execration (Dickens 1857).

Using Google Maps we can actually follow in space and time, the story of this giant Ponzi scheme. This post is a draft and a work in progress . . .

Items on this Google Map have not been fully edited.

Items in the bibliography have not been properly edited yet . . .

to be continued . . .

I want to watch Midsomer Murders now . . .

Notes

Circumlocution Office is Dickens’ (1857) term to ridicule governmental offices that delayed business by passing through the hands of different officials. “That brilliant invention the Circumlocution Office was made up at a time when examinations were introduced for the Civil Service. Dickens felt that bureaucratic indolence and incompetence were responsible for the sufferings of British soldiers in the Crimean war. “This glorious establishment had been early in the field, when the one sublime principle involving the difficult art of governing a country, was first distinctly revealed to statesmen … Whatever was required to be done, the Circumlocution Office was beforehand with all the public departments in the art of perceiving – HOW NOT TO DO IT.” (Meaning, in Dickens’s time, how to avoid doing anything.) ( Byatt 2008-11-1.”

The Circumlocution Office is inhabited by a family of Tite Barnacles and relations.

General Motors (GMAC) The U.S. Federal Reserve on Wednesday approved GMAC Financial Services’ application to become a bank-holding company, a status that would give the auto-financing arm of General Motors Corp. access to government bailout dollars and the Fed’s discount window. The move complements a $17.4 billion emergency loan package the government extended to GM and (Wall Street Journal 2008-12-24)… “Merkin, who is chairman of GMAC LLC, is named in the lawsuit brought by NYU, along with his Gabriel Capital LP fund and Ariel Fund Ltd. GMAC is the finance business owned by General Motors Corp and private equity firm Cerberus Capital Management LP. The Funds ‘feeding’ money to Madoff, including Ariel, made a conscious effort to conceal Madoff’s involvement from their own investors,” the NYU lawsuit said. “This concealment was a requirement dictated by Madoff, which was agreed to by Merkin and other ‘feeder’ funds (McCool Reuters 2008-12-24).”

Electronic Communications Networks (ECNs) trading model

Who’s Who

National Market System (NMS) Bernie Madoff presented his arguments at SEC hearings (2004-04-21 SEC) on the redesigning of “the existing national market system (“NMS”) rules to maximize profits and efficiency.

U.S. Securities and Exchange Commission (SEC) Washington, DC.

Selected Timeline

1823 Charles Dickens’ father, John Dickens, was imprisoned in the infamous debtors’ prison in Borough High Street, the Marshalsea. At twelve-years of age the future novelist was sent sent to work in a boot-blacking factory. John Dickens was the model for both Mr. Dorrit in Little Dorrit and Mr. Micawber in David Copperfield. Charles Dickens is in effect, Little Dorrit. In a prescient move, the BBC broadcast its adaptation of Dickens’ (1857) Little Dorrit, a month before Bernie Madoff’s arrest in his luxury Upper East Manhattan apartment. The similarities between the two stories are uncanny. See Byatt, A. S. 2008-11-15. “Little Dorrit: Within the walls of the Marshalsea.” The Guardian.

1857 In Charles Dickens’ introduction of his 1857 novel Little Dorrit he apologized for any similarity between factual events in Britain and Ireland and the context and character of his fictional banker, Mr. Merdle, who embarked on a fraudulent scheme now being compared to Madoff’s.

“If I might offer any apology for so exaggerated a fiction as the Barnacles and the Circumlocution Office, I would seek it in the common experience of an Englishman, without presuming to mention the unimportant fact of my having done that violence to good manners, in the days of a Russian war, and of a Court of Inquiry at Chelsea. If I might make so bold as to defend that extravagant conception, Mr Merdle, I would hint that it originated after the Railroad-share epoch, in the times of a certain Irish bank, and of one or two other equally laudable enterprises. If I were to plead anything in mitigation of the preposterous fancy that a bad design will sometimes claim to be a good and an expressly religious design, it would be the curious coincidence that it has been brought to its climax in these pages, in the days of the public examination of late Directors of a Royal British Bank. But, I submit myself to suffer judgment to go by default on all these counts, if need be, and to accept the assurance (on good authority) that nothing like them was ever known in this land (Dickens 1857).”

Thanks to these sources for making the Madoff-Merdle link: Paul Krugman, The New York Times Op-Ed columnist, in his 2008-12-19 blog post entitled “Madoff/Merdle“; McCann, Vincent. 2008-12-20. “Separating fact from fiction in financial fraud case.” Scotsman.com News.

1920s Financial frauds of the 1920s. See Galbraith, John Kenneth. 1954. The Great Crash: 1929. Boston: Houghton Mifflin.

1960 Bernie Madoff started his firm Bernard L. Madoff Investment Securities with $5,000. Bernard L. Madoff Investment Securities LLC.

1938 Bernard L. Madoff was born?

1970s The creation of the consolidated system for disseminating market information generated enormous benefits for investors (SEC 2004-02-27).”

1980s The incorporation of The Nasdaq Stock Market, Inc. (“Nasdaq”) securities into the NMS generated enormous benefits for investors (SEC 2004-02-27).”

1990s The adoption of the Order Handling Rules in the 1990s generated enormous benefits for investors (SEC 2004-02-27).”

2004-02-27 SEC published Regulation NMS for public comment. “In addition to redesignating the existing national market system (“NMS”) rules adopted under Section 11A of the Securities Exchange Act of 1934 (“Exchange Act”), Regulation NMS would incorporate four substantive proposals that are designed to enhance and modernize the regulatory structure of the U.S. equity markets (SEC 2004-02-27).”

2004-04-21 Bernie Madoff presented his arguments at SEC hearings (2004-04-21 SEC) on the redesigning of “the existing national market system (“NMS”) rules held at the InterContinental The Barclay.

“The central objective of this review is to determine how the regulations governing the U.S. equity markets should be modernized. Our markets are continually evolving because of such factors as innovative trading technologies, new market entrants, and changing investment patterns. We believe that one of our most important responsibilities is to monitor these changes and to ensure that the U.S. regulatory structure remains up to date. In this way, we can help our markets retain their position as the deepest and most efficient in the world – markets that offer a fair deal to all types of investors, large and small.”

2004 Bernie Madoff presented his arguments at hearings on the redesigning of “the existing national market system (“NMS”) rules adopted under Section 11A of the Securities Exchange Act of 1934 (“Exchange Act”), Regulation NMS would incorporate four substantive proposals that are designed to enhance and modernize the regulatory structure of the U.S. equity markets.

Discussion: “Is access to markets through the members of an SRO and through the customers or subscribers of ECNs or market makers sufficient to assure fair and efficient access to their displayed quotes? Are there barriers to access that must be removed for this indirect access to be feasible?”

Participants: Ivan K. Freeman (Morgan Stanley), John C. Giesea (Security Traders Association), Robert Greifeld (Nasdaq Stock Market), Larry Leibowitz (Schwab Capital Markets), Bernard L. Madoff (Madoff Investment Securities) and Thomas Peterffy (Interactive Brokers Group)

2008-01 Bernard L. Madoff Investment Securities claimed their investment advisory business managed $17.1 billion for 11 to 25 clients and boasted of an “unblemished record of value, fair-dealing and high ethical standards (Zambito and Smith 2008).”

2008-11-15 In a prescient move, the BBC broadcast its adaptation of Dickens’ (1857) Little Dorrit, a month before Madoff’s arrest in his luxury Upper East Manhattan apartment. The similarities between the two stories are uncanny. See Byatt, A. S. 2008-11-15. “Little Dorrit: Within the walls of the Marshalsea.” The Guardian.

2008-12-10 Andrew Madoff and Mark Madoff, Bernie’s sons and his employees claimed to be innocent victims of a fraud that they knew nothing about. They called the Securities and Exchange Commission, which told the FBI (Zambito and Smith 2008).”

2008-12-10 Special FBI Agent Theodore Cacioppi and a colleague questioned Madoff at his $9M East Manhattan luxury apartment on Thursday morning to investigate the possibility of any “innocent explanation.” “There is no innocent explanation,” Madoff replied. Within hours, investors who had trusted the 70-year-old Madoff for years – including the owner of the New York Mets – were reeling at charges that one of the most trusted names on Wall Street was a full-time fraud (Zambito and Smith 2008).”

2008-12-12 “[A]ngry investors crowded a Manhattan federal courtroom hoping to find out if the SEC would come to their rescue. Manhattan Federal Judge Louis Stanton issued an order freezing Madoff’s assets, as well as those of his firm, and named lawyer Lee Richard to oversee the business. The hearing was canceled, leaving investors bewildered (Zambito and Smith 2008).”

2008-12-23 “[H]edge fund executive Thierry Magon de la Villehuchet, 65, was found dead in his office in an apparent suicide, reportedly distraught over being duped by Madoff. New York City Police Commissioner Raymond Kelly said Villehuchet had cuts on his wrists from a box cutter and pills nearby. The Frenchman’s Access International had an exposure of $1.5 billion, officials said (McCool 2008-12-24).”

2008-12-24 Washington: “The U.S. Federal Reserve on Wednesday approved GMAC Financial Services’ application to become a bank-holding company, a status that would give the auto-financing arm of General Motors Corp. access to government bailout dollars and the Fed’s discount window. The move complements a $17.4 billion emergency loan package the government extended to GM and …” Wall Street Journal McCool, Grant. 2008-12-24. “(McCool 2008-12-24) New York University sued fund executive over Madoff
2008-12-24. “Fed Grants GMAC’s Request to Become Bank-Holding Company.” Wall Street Journal.

Webliography and Bibliography

Byatt, A. S. 2008-11-15. “Little Dorrit: Within the walls of the Marshalsea.” The Guardian.

McCool, Grant. 2008-12-24. “New York University sues fund executive over Madoff.” Reuters.

Quinn, James. 2008-12-16. “An American Tragedy.” Financial Sense.

Zambito, Thomas; Smith, Greg B. 2008-12-13. “Feds say Bernard Madoff’s $50 billion Ponzi scheme was worst ever.” New York Crime. Daily News.  

2008-12-22. “Jewish leaders bracing for Madoff fallout.” The Boston Globe.

Unlikely Player Pulled Into Madoff Swirl.”NYTimes.com

A.G. takes himself out of Madoff probe | Deseret News (Salt Lake City) | Find Articles at BNET

Fund Fraud Hits Big Names – WSJ.com 

2008-12-14.Bodyblow to Wall Street at The Brian Sullivan Blog

Business News – AOL Money Canada 

U.S. Congress to probe SEC role in Madoff affair

edmontonsun.com – World – $50B fraud plot thickens

Madoff Mess manoeuvres 

Judge orders Madoff to tally his assets

Don’t Be Scammed by Madoff Investor Sob Stories – Seeking Alpha

Madoff investors unlikely to regain money

Madoff bad omen for fund of hedge funds industry – AOL Money Canada

Run by investors, for investors – North American Markets end lower, Madoff scandal raises concerns over financials – North American Market Summary

More banks reveal exposure to Madoff scandal – Yahoo! Canada News

Bernard Madoff scandal draws publishers 

IOC has nearly $5 million tied to Madoff – AOL Sports Canada

Some Madoff investors may have to give back gains – Dec. 19, 2008

Madoff’s auditor Friehling and Horowitz doesn’t audit? – Dec. 17, 2008 

Did Bernard Madoff act alone? – Dec. 18, 2008

Answers to 6 Madoff questions – Dec. 18, 2008

A stock exchange caught in the Madoff mess – Dec. 18, 2008

‘A Giant Ponzi Scheme’ 

reportonbusiness.com: Madoff debacle reveals stunning failure of due diligence

Midas Letter -  Health, Wealth and Prosperity

Meet the real Ponzi behind the ‘scheme’ - Dec. 15, 2008

TheStar.com | Business | Banks, funds among clients who lost billions

Charities hit hard as Madoff fraud losses mount 

Madoff: ‘Bloodbath’ for Twin Cities investors

Pigeon King owes $23 million | Farm andDairy – The Auction Guide and Rural Marketplace

globeandmail.com: Farmers should have been warned about pigeon venture: critics

The Canadian Press: Royal Bank says clients have $50M in exposure to alleged Madoff fraud

Ponzi schemes strike in U.S., Russia and Colombia | Worldfocus

Bloomberg.com: Worldwide

The Madoff Fraud: How Culpable Were the Auditors? – TIME

Madoff Victims Look for Ways to Recover Their Money – TIME

Wall Street’s Latest Downfall: Madoff Charged with Fraud – TIME

How I Got Screwed by Bernie Madoff - TIME

Bernie Madoff’s man to see – The Boston Globe 

Bull Market 

Top Trader Is Accused of Defrauding Clients - NYTimes.com

Bernard L. Madoff News – The New York Times

The New York Times > Books > Sunday Book Review > His Last Name Is Scheme

A Scheme With No Off Button – NYTimes.com 

Ponzi Schemes – News – The New York Times

Even Winners May Lose With Madoff.” NYTimes.com

Madoff Agrees to Security ‘to Prevent Harm or Flight’ -NYTimes.com

“Talking Business – Avoiding a Financial Collapse, Indian-Style.” – NYTimes.com

“Madoff Scheme Kept Rippling Outward, Across Borders.” NYTimes.com

“Madoff Ponzi Scheme Lawsuit: Attorneys for Defrauded Investors.”

Madoff Scheme Kept Rippling Outward, Across Borders.” NYTimes.com

“Top Trader Is Accused of Defrauding Clients.” NYTimes.com

Op-Ed Columnist – The Brightest Are Not Always the Best -NYTimes.com

Wall Street fallout shakes economy

 

Long term social damage caused by downsizing

Displaced workers mysteriously drop out of civic, business, political, neighborhood groups, social and leisure activities, country clubs, sports teams and weekly gatherings with friends, Brand and Burgard (2008). UCLA-University of Michigan, Ann Arbor study researcher claims, “Everybody loses when people withdraw from society.”

However, membership in professional and political organizations did not decline in the study group. “Displacement seems to change their whole trajectory of participation (Brand 2008).”

“Even a single involuntary displacement has a lasting impact on a worker’s inclination to volunteer and participate in a whole range of social and community groups and organizations, found the study, which appears in the September issue of the international scholarly journal Social Forces.”

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“Social participation is important to participatory democracy, to healthy neighborhoods, and to effective schools (Putnam 2000). Individuals who participate may also be advantaged in the labor market: social and economic resources are embedded in social networks (Bourdieu 1983; Coleman 1988; Granovetter 1973),1 networks that may be formed through involvement in various social organizations and associations. Social participation is also associated with better physical and mental health and well-being, important outcomes in and of themselves, but also important for the labor market (Berkman 1995; Durkheim 1933; House 1981; House, Landis, and Umberson 1988). From the mid 1940s to the early 1970s, there was an unprecedented increase in social participation in the U.S. This trend coincided with unprecedented and widespread economic prosperity, marked by a low rate of unemployment and generally increasing real earnings. In recent decades, however, average rates of social participation have declined (McPherson, Smith-Lovin, and Brashears 2006; Putnam 2000). Likewise, the trend toward increasingly widespread economic prosperity in the U.S. has reversed (Brand and Burgard 2007-05:3).”

“[I]s the effect of job displacement on social participation mediated by post-displacement psychological distress and/or reduced feelings of social trust or reciprocity, above and beyond experiences of downward socioeconomic mobility? To address this question, we examine the potential mediating role of measures of depression, self-acceptance, and social reciprocity on the relationship between displacement and participation, net of downward social mobility (Brand and Burgard 2007-05:5).”

“Job displacement usually includes a sequence of stressful events from anticipation of job loss through the loss itself, to a spell of unemployment, to job search and training, to reemployment, often at reduced wages and status. Initial movement into unemployment is associated with a number of economic pressures, new patterns of interaction with family members, and personal assessment in relation to individual values and societal pressures (Pearlin et al. 1981). It is therefore not surprising that a significant association has been found between job displacement and psychological distress over the life course: Displaced workers report lower levels of self-acceptance, self-confidence, morale, and higher levels of depression and dissatisfaction with life (Burgard, Brand, and House 2007; Dooley, Fielding, and Levi 1996;Gallo et al. 2000; Kessler, Turner, and House 1989; Turner 1995; Warr and Jackson 1985) (Brand and Burgard 2007-05:5).”

“Expanding on Durkheim’s theory, Wilensky (1961) found that orderly careers, i.e. a succession of jobs related in function with elevations in status, free of unexpected periods of unemployment and disorderly shifts in jobs, occupations, and industries, were associated with strong attachment to one’s community and society (Brand and Burgard 2007-05:6).”

“[T]he “spillover” theory asserts that being employed in a job that encourages initiative, thought, and independence also indirectly encourages social participation (Kohn and Schooler 1982; Rain, Lane, and Steiner 1991; Staines 1980; Wilson and Musik 1997) (Brand and Burgard 2007-05:7).”

“[V]alues and attitudes towards oneself and one’s society may influence levels of social participation. Putnam (2000) argues that where positive social roles, social trust, and norms of reciprocity flourish, individuals participate socially. However, displacement may negatively alter individual attitudes and self-perception, and thus, reduce participation. Thus, the strain of insecure employment, actual displacement events, periods of unemployment, reemployment in jobs with lower earnings and/or lower quality, psychological distress, and the erosion of commitment to social reciprocity may all contribute to decreased levels of social participation among displaced workers (Brand and Burgard 2007-05:7).”

Webliography and Bibliography

Brand, Jennie, and Sarah Burgard. 2007-05. “Effects of Job Displacement on Social Participation: Findings over the Life Course of a Cohort of Joiners.” PSC Research Report No. 07-623. May 2007.

Abstract: “Career disorder and economic distress have been identified as potential causes of the observed decline in social participation in the U.S. We examine the causal effect of job displacement, a career disorder-producing event that is associated with subsequent socioeconomic and psychological decline, on social participation. Using more than 45 years of panel data from the Wisconsin Longitudinal Study and difference-in-differences regression estimation, we find significant and lasting negative effects of displacement on subsequent social participation for workers displaced during their prime earnings years, ages 35-53, while no effect for workers displaced in the years approaching retirement, ages 53-64. Results also suggest that socioeconomic and psychological decline resulting from job displacement do not explain the negative impact of job displacement on social participation (Brand and Burgard 2007-05).”

Brand, Jennie, and Sarah Burgard. 2008-09. “Effects of Job Displacement on Social Participation: Findings Over the Life Course of a Cohort of Joiners.” Social Forces, .

Burgard, Sarah, Jennie Brand, and James S. House. 2007. “Toward a Better Estimation of the Effect of Job Loss on Health.” Journal of Health and Social Behavior, 48: 369-384.

Price, Richard H., and Sarah Burgard. 2008. “The new employment contract and worker health in the United States.” In Making Americans healthier : social and economic policy as health policy. New York : Russell Sage.

Putnam, Robert D. 2001. Bowling Alone: The Collapse and Revival of American Community.

Public Release. 2008-09-01. “Bowling alone because the team got downsized.” Social Forces. Eureka Alert. Accessed September 2, 2008.

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