Archive for October 19th, 2010

October 19th, 2010

Thoughts on Eric Rosengren’s talk

by DickH

Mike Luciano, a regular reader of and sometime contributor to this site also attended the lecture by Boston Fed president Eric Rosengren yesterday which I wrote about earlier. Mike comments on Rosengren’s remarks follow:

On Monday, Boston Federal Reserve President, Eric Rosengren gave a talk at the UMass Lowell Inn and Conference Center as part of the Moses Greeley Parker Lectures series. (Is that enough proper nouns for you?) What follows are my thoughts, which are based on some perfunctory notes I took at the lecture.

In his presentation on monetary policy in a slow recovery, Rosengren reiterated the Federal Reserve’s standard line about the need for further “quantitative easing” (QE) This is a fancy way of saying, “money printing,” which is done when the Fed purchases assets—typically treasury bonds and bills. During QE, the Fed therefore expands its balance sheet in an effort to pump liquidity into the economy by lending money to banks, which are in turn supposed to lend to businesses and consumers. Currently, the rate at which the Fed is lending to banks (called the federal funds rate) is at 0% to 0.25%.

By purchasing massive amounts of treasuries, the Fed is aiming to drive down their yields. The Fed is hoping that low interest on treasuries, combined with a microscopic federal funds rate, will have the effect of convincing Americans to part with their dollars and increase consumption. The idea is to get credit flowing so that businesses and individuals can borrow and consume more easily. As consumption (demand) increases, so does production and employment. Meanwhile on the foreign exchange market, this increase in the money supply and cheap credit is supposed to produce an inflationary effect that will weaken the US dollar relative to other world currencies, which would boost American exports. read more »

October 19th, 2010

Supressed Parishes Including Lowell’s Ste. Jeanne d’Arc Church Entreat the Pope

by Marie

The head of the Council of Parishes that represents the nine supressed parishes of the Archdiocese of Boston has presented an appeal directly to the Pope asking for a reversal of Vatican approval of these closures. In an unusual – even historic move – according to a Council press release:

Peter Borre, the head of the Council of Parishes, which represents nine of the suppressed parishes, hand-delivered “a direct appeal to His Holiness Pope Benedict … to the Vatican’s Secretariat of State for the Rev. Mons. Peter Wells, Counselor for General Affairs” today in Rome.

In commenting on the action, Terrence Donilon, spokeman for the Archdiocese noted:

“We have not had an opportunity to review the full submission by the Council of Parishes…  However, the appeals process, just concluded, was a lengthy and thorough effort which included participation by the highest court in the Vatican, the Supreme Tribunal of the Apostolic Signatura.

“When the Signatura makes a ruling it does so in the name of the Holy Father,” said Donilon. “There are no further appeals options available to the petitioners.”

 

Among the nine supressed parishes involved in the appeal is that of  Ste. Jeanne d’Arc Church in Lowell - established on December 30,1922, by William Cardinal O’Connell and staffed by the Oblates of Mary Immaculate until the 2004 suppression. Stay tuned as this latest attempt to keep these parishes open plays out.

Read the full story here in the MetroWest Daily News on-line.

October 19th, 2010

David McNerney funeral

by DickH

One of his former co-workers in the US Customs service has produced an excellent and moving video and a slide show of Medal of Honor recipient David McNerney’s funeral from this past Saturday:

October 19th, 2010

Eric Rosengren of Boston Fed in Lowell

by DickH

Yesterday I joined 120 others at the UMass Lowell Inn & Conference Center for a talk by Eric Rosengren, President and CEO of Federal Reserve Bank of Boston. The event was co-sponsored by UML and the Parker Lectures. The formal portion of this hour-long talk was “How Should Monetary Policy Respond to a Slow Recovery?” During his remarks and the questions that followed, Rosengren outlined the challenges facing the Fed in addressing the Great Recession and provided some insight into the future of the housing sector. I took many notes which I’ve reproduced below in their entirety:

Rosengren began by placing this recession in the context of other recent ones. He showed unemployment data by industry from 1981-82, 1990-92, March 2001 – November 2001, and 2007-2009. In the other three recessions, only one or two industries suffered unemployment in excess of 5% (usually it was manufacturing or IT). This time, every industry lost more than 5% of its jobs and several lost a lot more than that. “That’s why we call it the GREAT Recession.”

One of the first questions to be addressed is whether this is “structural unemployment” or “demand unemployment.” In structural unemployment, you have too many construction workers and not enough health care providers, so putting people back to work would require time-consuming retraining. Demand unemployment, in contrast, has plenty of workers in every industry but not enough demand for their services. Rosengren said the evidence is that the recent recession resulted in “demand unemployment” – there is no lack of applicants for any given job; but no one is hiring because there’s not enough demand.

The news this summer that we were in an economic recovery is misleading. That was based on rising inventories which are only temporary. Corporations had allowed inventories to dwindle during the credit crisis so this year they began restocking. Once the inventories have been replenished, production will recede because there is still little demand for these products. read more »

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October 19th, 2010

On the Road with Ali

by PaulM

Mehmed Ali was once a familiar man-about-town in Lowell, but now he is more like a man-about-world, having been in Iraq working for the US government for the past two years. He is back in the area for a few days on a short break from his assignment with the Provincial Reconstruction Team in Iraq. Ali had something special in mind for today, and he asked me to join him on a ride to Maine. Our destination was Biddeford and the Palace Diner, which is billed as “Maine’s Oldest Diner” (est. 1926). There had to be a Lowell connection for Ali, of course, and there it was stamped on a metal seal affixed to the steel cooking hood above the grill: “Made by the Pollard Dining Car Company, Lowell, Mass.”

But back to the start. We set out about 8 am, pressing north up 495 and 95 through the near-peak roadside foliage. Traffic was light, so we sailed along, arriving at our turn, Exit 32, at about 9.30 am. The outskirts of Biddeford look like a typical edge city with shopping centers, car dealers, and gas stations spreading out from the highway interchange.

We headed for the core of the city, which is predominantly red brick. Biddeford is an old textile town, a sister city to Saco, Maine. Powered by the swift flowing Saco River, vast textile complexes rose along the banks, most of which remain today. For a community of 22,000, Biddeford has an urban feeling. The commercial district downtown extends for several blocks down to the river’s edge.

The Palace Diner would be easy to miss if you were not on the hunt for it. The small red-and-white dining car planted at 18 Franklin Street  is about the size of Arthur’s Paradise Diner on Bridge Street in Lowell. Picture Arthur’s without the booths. The Palace boasts ten round silver seats at the counter. That’s it. With its excellent reputation for breakfast and limited hours (6 to 10.30 am daily), I expected to find a crowd at the Palace. I imagined something like Al’s Breakfast place in the Dinkytown section of Minneapolis, Minn., which is only ten-feet wide and has 14 counter seats. It’s so popular that people line up behind the stools and wait for the person eating to finish. The line extends outside. But it was a quiet day in Biddeford. We opened the door to find two other patrons. We sat down and were waited on by a pleasant woman whose family roots ran to Lynn, Mass. The cook was in the back. When he heard we had come up from Lowell to see the diner, he brought out two photos of another of the Pollard Dining Cars, somewhere in New England.

The food met all expectations. We ordered the highly praised hash as a side dish, and added to that a main selection of blueberry pancakes. Ali also got an egg and toast. He had orange juice while I drank coffee out of a classic white mug. The fluffy pancakes were filled with berries. We were tempted to bring back a couple of gigantic blueberry muffins that were sitting on a covered plate behind the counter, but held off.

To walk off the two-meal quantity breakfast, we wandered down to the industrial zone and the river. Despite one local businessman’s complaint that downtown Biddeford is a ghost town (he’s moving his thrift shop to Welles, Maine), we saw lots of construction going on at former textile complexes. The headline of the local weekly paper mentioned a $1.4 million mill rehab underway. A couple of large brick buildings had been renovated and transformed into residences. The thrift-shop guy pointed out 11 empty storefronts on the main street, but we also saw several restaurants, small stores, and offices that appeared to be going concerns: Irish, Thai, Chinese, and Mexican restaurants; used record and bookstores; a few seedy tattoo and nail shops; lawyers and accountants; etc. At 11 am the downtown was fairly deserted. I can’t argue that point with the guy. Banners on the light poles featured the founding date of Biddeford: 1630.

When we got to the bridge over the Saco River, Ali said, This is the connection to the Saco-Lowell Shops, the maker of textile machinery. The company’s roots go back to 1813 with Francis Cabot Lowell’s founding of the Boston Mfg. Co. and the start of an ironworks in Saco, Maine. The two companies eventually came together as the Saco-Lowell, which operated until 1949 (details thanks to companydatabase.org). We wound our way through the mill yards and alleys until we found a back lot that opened onto the river right at Saco Falls downtown, where the river spills over a dam and drops about 20 feet.  Sheets of white water threw themselves down onto black slabs of stone, mixing in foamy dark pools, some of the water eddying back onto itself and swirling into lower pools before sliding into the river, about 30 yards wide where we stood. Ali took pictures all morning, so let’s hope he sends a few along to rh.com. If you haven’t been to Biddeford, it’s an easy ride north. Go early for breakfast at the Palace Diner.

The prize foliage was along Route 133 in Tewksbury, where the huge maple trees had turned to the color of candy corn. On one stretch just before the Lowell city line, there must have been a dozen massive specimens in royal gold, orange, and crimson.

October 19th, 2010

Sun Reports on Fed Chief’s Talk at ICC

by PaulM

Andrea Gregory of the Sun today reported on Monday’s talk about the current state of the economy and future prospects by Eric Rosengren, president of the Federal Reserve Bank of Boston. The Lunchtime Lectures program at the UMass Lowell Inn & Conference Center was co-sponsored by the Parker Lectures, UMass Lowell, and Middlesex Community College. More than 100 people attended.

Read the article here, and subscribe to the Sun if you appreciate the reporting.

October 19th, 2010

Signs of Lowell

by DickH

More signs from around Lowell from Tony Sampas. Today it’s the Owl Diner, both new and old.

October 19th, 2010

LaHood To Fast-Track I-93/Lowell Junction Interchange

by Marie

A front-page Lowell Sun article today  is reporting interesting news from yesterday’s roundtable discussion with U. S. Secretary of Transportation Ray LaHood. He is committed to backing the alternative design plan for the Interstate 93 – Lowell Junction interchange that would limit access to the town of Tewksbury’s local roads. While not wanting to stand in the way of road access to the other stakeholders – the towns of Andover and Wilmington -Tewksbury has objected from the beginning to the over-burdening of its roads in the affected South Tewksbury neighborhoods. Federal Highway Administration officials have balked at Tewksbury’s insistence for the option of only an “on and off ramp” to I-93 on the West side of the new interchange that would protect the South Tewksbury neighborhood and the narrow, winding local roads. The East side would provide access for the much needed expansion and development plans for companies and businesses on the Andover side.

It was back in early 2004 when voters – after a vigorous educational campaign by stakeholders – approved the alternate plan at a Town Meeting. The focus of the plan for Tewksbury was the development by Mills Corporation of a mall on the so-called Perkins property with the use of a loop road limiting access to local roads except for safety needs of the fire and police departments. The Tewksbury position has been a longtime glitch in the attempts to move the project forward.

Congresswoman Niki Tsongas brought the town representatives  together with LaHood for the hearing. His support for funding the alternative interchange plan is critical for moving the project forward. Bob Fowler of the Tewksbury Planning Board reminded officials that the three towns have really been working on the interchange project for 20 years or more. For this vision – there seems to be light at the end of the tunnel.

Read the full article by Joyce Tsai in the Lowell Sun here.

For disclosure – I was part of a consulting team that worked with Mills Corporation back in 2003-2004 prior to the Town Meeting that approved the alternative interchange plan.

October 19th, 2010

Bielat Heckled by Frank’s Boyfriend

by Tony

This is without question one of the craziest campaign seasons I have ever seen.

We have someone running for the United States Senate who spent part of her youth ruling out whether she was a witch or not.

We have a person running for Governor of New York in the political party called the “Rents too Damn High Party.

We have a woman running for Governor of California who has invested $100 million of her own money into the campaign and she is opposing a former elected official that used too be nicknamed “Governor Moonbean”…

And now we have this.

Seem in the video is Republican Congressional candidate Sean Bielat. He is being heckled by the man taking pictures, who is also his opponent, Barney Frank’s  boyfriend…

And we still have two more weeks to go. You got to love this.

Video from the Boston Herald