Wednesday, July 30, 2008
Then and now: 1971 and 2008
Popular Music: Brown Sugar (Rolling Stones), I feel the Earth Move & Its Too Late (Carole King), Joy to the World (Three Dog Night), Just My Imagination (The Temptations), Me and Bobby McGee (Janis Joplin), One Bad Apple (The Osmonds).
Best Movie: The French Connection
Best Actor: Gene Hackman
Best Actress: Jane Fonda (Klute)
Dow Jones: 890.2
Gallon of gas: 44c
Gallon of Milk: 1.32
Average Income: 9111.00
On my birthday (today and my first as a US Citizen), I got a interesting letter from Smith Barney highlighting the things that were happening in the year of my birth. I have always had a special fondness and affection for Janis Joplin (especially the song Me and Bobby McGee) and actor Gene Hackman.
Goldman to buy Retail Bank? Yes / No
By Christine Harper
July 30 (Bloomberg) -- Goldman Sachs Group Inc., the largest and most profitable U.S. securities firm, is ``highly unlikely'' to acquire a retail banking operation, Oppenheimer & Co. analyst Meredith Whitney said in a note to investors.
``While much speculation has been made about Goldman's interest in acquiring a retail bank, we believe the chances are less than slim,'' she wrote after a meeting yesterday with Goldman executives. ``Management stated frankly that it was highly unlikely given the current regulation.''
Whitney's note comes just days after Merrill Lynch & Co. analyst Guy Moszkowski told investors they shouldn't ``rule out'' a bank acquisition by Goldman. While Moszkowski said a transaction seemed unlikely if it forced the firm to exit businesses such as commodities, he noted JPMorgan Chase & Co., the biggest U.S. bank by market value, was allowed to keep commodity business it gained in acquiring Bear Stearns Cos.
Merrill's sale of collateralized debt obligations this week for $6.7 billion, or 22 percent of face value, may give Goldman an opportunity to buy similar assets, Whitney added in her note today. She met yesterday with Goldman Chief Financial Officer David Viniar, Co-President Jon Winkelried and Investment Banking Chief David Solomon.
``Last year, Goldman raised a several-billion dollar fund to buy distressed mortgage assets, yet to date has put little to use,'' Whitney wrote. After the sale by Merrill, ``it is likely in our opinion that more portfolios are put on the market.''
Goldman's executives said the current market creates ``strong headwinds to earnings growth,'' Whitney wrote. The company has cut the bottom 10 percent of its employees instead of the usual bottom 5 percent, she wrote.
Whitney rates Goldman shares ``perform.''
Goldman Willing to Consider Buying a Bank, Merrill Analyst Says
By Christine Harper
July 28 (Bloomberg) -- Goldman Sachs Group Inc. may buy a bank to gain deposits to fund itself, although a deal won't happen if regulators force Goldman to exit a business such as commodities, Merrill Lynch & Co. wrote in a research report.
``Don't rule out a bank acquisition,'' Merrill Lynch analyst Guy Moszkowski wrote in a note to investors today after meeting Goldman executives including Chief Financial Officer David Viniar and Co-President Jon Winkelried.
Goldman, the biggest and most profitable of the U.S. securities firms, has ``done extensive analysis'' on the potential for funding its divisions with excess deposits from a bank, Moszkowski wrote, citing Viniar. Regulations that prevent bank holding companies from owning assets such as pipelines and power plants may present a hurdle, although JPMorgan Chase & Co. seems to have won approval from regulators, Moszkowski said.
Goldman management ``made it clear that such a deal was unlikely to be pursued if it meant that other traditional, attractive GS businesses could not be continued. Commodities being the obvious example that comes to mind,'' Moszkowski wrote. ``However, regulators appear to have OK'd JPM's participation in physical commodities via its acquisition of Bear Stearns.''
The biggest earnings opportunity that Goldman managers see is in buying and trading mortgages, the note added. Goldman hasn't yet raised a fund to invest in distressed mortgages and doesn't think all the assets have been marked down sufficiently yet, the note said.
``The gulf between what potential distressed-mortgage buyers are willing to pay, and where holders have marked the assets, remains too wide,'' Moszkowski wrote.
A ``private-market solution'' to the mortgage market turmoil is more likely than a government-sponsored type solution such as Resolution Trust Co. in the 1980s, Moszkowski wrote.
``Whenever this happens, GS will be ready to bid on significant portfolios, and when the scale of a package exceeds GS's comfort level, it expects to be able to round up co- investors quickly,'' he wrote.
Tuesday, July 29, 2008
Another Republican Senator in trouble
Alaska Senator Is Indicted on Corruption Charges
By DAVID STOUT and DAVID M. HERSZENHORN
WASHINGTON — Senator Ted Stevens of Alaska, the longest-serving Republican senator in United States history and a figure of great influence in Washington as well as in his home state, has been indicted on federal corruption charges.
Mr. Stevens, 84, was indicted on seven counts of failing to report income. The charges are related to renovations on his home and to gifts he has received. They arise from an investigation that has been under way for more than a year, in connection with the senator’s relationship with a businessman who oversaw the home-remodeling project.
The indictment will surely reverberate through the November elections. Mr. Stevens, who has been in the Senate for 40 years, is up for re-election this year. Mark Begich, a popular Democratic mayor of Anchorage, hopes to supplant him.
The Justice Department announced the charges at a news conference Tuesday afternoon. The document says that, from the spring of 1999 through the late summer of 2007, Mr. Stevens failed to report “things of value” that he received in connection with his home in the ski resort city of Girdwood, about 40 miles south of Anchorage.
Prosecutors say Mr. Stevens, who referred to his home as “the chalet,” accepted goods and services worth hundreds of thousands of dollars, ranging from an outdoor grill to extensive home remodeling and architectural advice. Not only did Mr. Stevens fail to report the items on his Senate financial disclosure form, as required, but he took active steps to conceal the receipt of the goods and services, the indictment says.
All the charges are felonies. Justice Department officials declined to discuss how long a prison term a conviction on the charges might bring, noting that the maximum sentences allowed by law are rarely imposed. Mr. Stevens was in Washington on Tuesday, and was allowed to turn himself in for paperwork processing.
The business executive at the center of the affair is Bill J. Allen, a longtime friend of the senator’s and the founder of VECO, a company that builds pipelines and does other construction work for oil companies. Mr. Allen pleaded guilty in May 2007 to making $243,000 in illegal payments to a lawmaker, who was later identified as State Senator Ben Stevens, Ted Stevens’s son. Ben Stevens, who was once president of the Alaska State Senate, is one of a half-dozen lawmakers under scrutiny for their relationships with Mr. Allen and his company.
Republicans on Capitol Hill were already jittery over a lobbying and influence-peddling scandal related to the lobbyist Jack Abramoff, who is now in prison. Mr. Stevens’s troubles are not linked to that affair. Instead, they stem from his ties to an oil executive whose company won millions of dollars in federal contracts with the help of Mr. Stevens, whose home in Alaska was almost doubled in size in the renovation project.
Under Senate Republican party rules, an indictment on felony charges compels a member to temporarily give up his leadership posts, and Republican senators were told at their weekly luncheon on Tuesday that Mr. Stevens would do so. Mr. Stevens has been the ranking minority member on the Commerce, Science and Transportation Committee.
Mr. Stevens is a former chairman of the Senate Appropriations Committee, and he is still on the panel. As chairman, he wielded huge influence, and did not hesitate to use it to steer money and projects to his state.
“No other senator fills so central a place in his state’s public and economic life as Ted Stevens of Alaska,” the Almanac of American Politics says. “Quite possibly, no other senator ever has.”
Mr. Stevens, one of only a handful of World War II veterans left in the Senate, grew up in Indiana and California and moved to Alaska in 1950, before it was a state, according to the political almanac. He first ran for the Senate in 1962, losing to Ernest Gruening, a Democrat. He was appointed to fill a vacant seat in the Senate in 1968 by the governor at the time, Walter Hickel, and has been re-elected six times since then.
Word spread through the Capitol like an electric current, prompting whispers among senators and staff. The Democrats were gathering in a room near the Senate chamber for their weekly conference lunch. Republicans, meanwhile, moved their lunch to the headquarters of the Republican Senatorial Campaign Committee, a common change of venue when the primary topic of discussion is politics.
Mr. Stevens is seen as a legendary, even heroic, figure in Alaska, who played a crucial role in its achievement of statehood, which became official in 1959. According to Senate Republican rules, Mr. Stevens will have to give up his leadership positions, which include some hugely powerful posts, as the senior Republican on the Commerce, Science and Transportation Committee and the defense appropriations subcommittee.
The long-running federal corruption investigation in Alaska has been hanging over Mr. Stevens as he faces his toughest re-election contest in many years. Mr. Begich was expected to mount a strong challenge even before word of the indictment spread.
Alaska, which last elected a Democratic senator in 1974, is one of several seemingly unlikely states where Democrats believe they have a strong chance of pulling off upset victories in the November elections.
The indictment comes nearly a year after federal agents raided Mr. Stevens’s home as part of a continuing investigation into corruption that had already ensnared the senator’s son.
Though lawmakers have been aware of the Justice Department inquiry for some time, the news of an indictment still came as something of a shock this week, as both houses of Congress are trying to wrap up legislative business before the monthlong August recess.
Senator Daniel Inouye, Democrat of Hawaii, who is the chairman of the defense appropriations subcommittee and a friend of Mr. Stevens, said Mr. Stevens should be presumed innocent unless and until he is proven guilty.Mr. Inouye said he did not expect that the indictment would interfere with Senator Stevens’s ability to work in the Senate.
Other lawmakers, including Senator Barbara Boxer, Democrat of California, the chairwoman of the ethics committee, said they needed to know more about the indictment before commenting.
Dance!
"Where in the hell is Matt?" by Matthew Harding
http://www.vimeo.com/1211060
wherethehellismatt.com
Enjoy! I certainly did.
Monday, July 28, 2008
By Richard Wolf, USA TODAY
WASHINGTON — The White House has increased its estimate for next year's deficit to nearly $490 billion, a record figure that will saddle the next president with deepening budget problems in his first year in office, a report due out Monday shows.
The projected deficit for the fiscal year that begins Oct. 1 is being driven higher by the continuing economic slowdown and larger-than-anticipated costs of the two-year, $168 billion fiscal stimulus package passed by Congress, said two senior administration officials with direct knowledge of the report. In February, President Bush predicted the 2009 deficit would be $407 billion.
The budget update shows this year's deficit headed under $400 billion, at least $10 billion less than projected, according to the two officials. That's partly because tax revenue held up reasonably well despite the weaker economy.
The rising deficit for 2009 marks a sharp turnaround for Bush's fiscal legacy. He inherited a $128 billion surplus when he came into office in 2001. It soon turned to red ink because of a recession, the Sept. 11 attacks and the war on terrorism.
Curbing the deficit will fall to Bush's successor and the next Congress following a time when taxes were cut and major spending initiatives were undertaken, including the wars in Iraq and Afghanistan, transportation projects, farm subsidies, Medicare prescription drug coverage and a recently passed expansion of veterans' education benefits.
The actual 2009 deficit could climb still higher because the new projection does not reflect full funding for the wars. In addition, a worsening economy could add to the red ink by reducing tax revenue and increasing safety-net payments, such as jobless benefits and food stamps.
Both presidential candidates have proposed tax cuts that could further swell the deficit. The non-partisan Tax Policy Center estimates that Republican John McCain's cuts would cost $4.2 trillion and Democrat Barack Obama's $2.8 trillion over 10 years. Neither candidate has specified major spending cuts he would make to reduce the deficit.
"The picture's looking pretty dark out there," said Sen. Judd Gregg, R-N.H., top Republican on the Senate Budget Committee. He credited Bush's tax cuts with creating six years of economic growth but "on the spending side, their record is not good."
White House budget director Jim Nussle said that despite the surplus Bush started with, he faced a deficit in defense, intelligence and homeland security that had to be bolstered after 9/11.
"This is not just a mathematical exercise," he said in an interview with USA TODAY. Nussle said an economic recovery and a renewed effort by Congress to control spending could rein in the deficit.
Bush proposed in recent years to slow the growth of spending in programs such as Social Security, Medicare and Medicaid. Those efforts were ignored by Congress — most recently last week, when the House voted to sidestep a provision of the 2003 Medicare prescription drug law that would have required lower Medicare spending.
The biggest budget deficit recorded to date was $413 billion in 2004. In today's dollars, that would be about $478 billion. As a share of the economy, the 2009 deficit would be 3% to 4%, below the post-World War II record of 6% set in 1983.
and from calculatedrisk.blogspot.com
First, this is the Unified Budget deficit. By these projections, the General Fund deficit (the President's responsibility) will be around $600 billion this year, and $700 billion next year. Second, these projections are probably optimistic.
The costs of bailing out F&F are not included in these projections.
Thursday, July 24, 2008
Berlin
Transcript
Obama’s Speech in Berlin
The following is the prepared text of Senator Barack Obama in Berlin, Germany, as provided by his presidential campaign.
SENATOR BARACK OBAMA: Thank you to the citizens of Berlin and to the people of Germany. Let me thank Chancellor Merkel and Foreign Minister Steinmeier for welcoming me earlier today. Thank you Mayor Wowereit, the Berlin Senate, the police, and most of all thank you for this welcome.
I come to Berlin as so many of my countrymen have come before. Tonight, I speak to you not as a candidate for President, but as a citizen – a proud citizen of the United States, and a fellow citizen of the world.
I know that I don’t look like the Americans who’ve previously spoken in this great city. The journey that led me here is improbable. My mother was born in the heartland of America, but my father grew up herding goats in Kenya. His father – my grandfather – was a cook, a domestic servant to the British.
At the height of the Cold War, my father decided, like so many others in the forgotten corners of the world, that his yearning – his dream – required the freedom and opportunity promised by the West. And so he wrote letter after letter to universities all across America until somebody, somewhere answered his prayer for a better life.
That is why I’m here. And you are here because you too know that yearning. This city, of all cities, knows the dream of freedom. And you know that the only reason we stand here tonight is because men and women from both of our nations came together to work, and struggle, and sacrifice for that better life.
Ours is a partnership that truly began sixty years ago this summer, on the day when the first American plane touched down at Templehof.
On that day, much of this continent still lay in ruin. The rubble of this city had yet to be built into a wall. The Soviet shadow had swept across Eastern Europe, while in the West, America, Britain, and France took stock of their losses, and pondered how the world might be remade.
This is where the two sides met. And on the twenty-fourth of June, 1948, the Communists chose to blockade the western part of the city. They cut off food and supplies to more than two million Germans in an effort to extinguish the last flame of freedom in Berlin.
The size of our forces was no match for the much larger Soviet Army. And yet retreat would have allowed Communism to march across Europe. Where the last war had ended, another World War could have easily begun. All that stood in the way was Berlin.
And that’s when the airlift began – when the largest and most unlikely rescue in history brought food and hope to the people of this city.
The odds were stacked against success. In the winter, a heavy fog filled the sky above, and many planes were forced to turn back without dropping off the needed supplies. The streets where we stand were filled with hungry families who had no comfort from the cold.
But in the darkest hours, the people of Berlin kept the flame of hope burning. The people of Berlin refused to give up. And on one fall day, hundreds of thousands of Berliners came here, to the Tiergarten, and heard the city’s mayor implore the world not to give up on freedom. “There is only one possibility,” he said. “For us to stand together united until this battle is won…The people of Berlin have spoken. We have done our duty, and we will keep on doing our duty. People of the world: now do your duty…People of the world, look at Berlin!”
People of the world – look at Berlin!
Look at Berlin, where Germans and Americans learned to work together and trust each other less than three years after facing each other on the field of battle.
Look at Berlin, where the determination of a people met the generosity of the Marshall Plan and created a German miracle; where a victory over tyranny gave rise to NATO, the greatest alliance ever formed to defend our common security.
Look at Berlin, where the bullet holes in the buildings and the somber stones and pillars near the Brandenburg Gate insist that we never forget our common humanity.
People of the world – look at Berlin, where a wall came down, a continent came together, and history proved that there is no challenge too great for a world that stands as one.
Sixty years after the airlift, we are called upon again. History has led us to a new crossroad, with new promise and new peril. When you, the German people, tore down that wall – a wall that divided East and West; freedom and tyranny; fear and hope – walls came tumbling down around the world. From Kiev to Cape Town, prison camps were closed, and the doors of democracy were opened. Markets opened too, and the spread of information and technology reduced barriers to opportunity and prosperity. While the 20th century taught us that we share a common destiny, the 21st has revealed a world more intertwined than at any time in human history.
The fall of the Berlin Wall brought new hope. But that very closeness has given rise to new dangers – dangers that cannot be contained within the borders of a country or by the distance of an ocean.
The terrorists of September 11th plotted in Hamburg and trained in Kandahar and Karachi before killing thousands from all over the globe on American soil.
As we speak, cars in Boston and factories in Beijing are melting the ice caps in the Arctic, shrinking coastlines in the Atlantic, and bringing drought to farms from Kansas to Kenya.
Poorly secured nuclear material in the former Soviet Union, or secrets from a scientist in Pakistan could help build a bomb that detonates in Paris. The poppies in Afghanistan become the heroin in Berlin. The poverty and violence in Somalia breeds the terror of tomorrow. The genocide in Darfur shames the conscience of us all.
In this new world, such dangerous currents have swept along faster than our efforts to contain them. That is why we cannot afford to be divided. No one nation, no matter how large or powerful, can defeat such challenges alone. None of us can deny these threats, or escape responsibility in meeting them. Yet, in the absence of Soviet tanks and a terrible wall, it has become easy to forget this truth. And if we’re honest with each other, we know that sometimes, on both sides of the Atlantic, we have drifted apart, and forgotten our shared destiny.
In Europe, the view that America is part of what has gone wrong in our world, rather than a force to help make it right, has become all too common. In America, there are voices that deride and deny the importance of Europe’s role in our security and our future. Both views miss the truth – that Europeans today are bearing new burdens and taking more responsibility in critical parts of the world; and that just as American bases built in the last century still help to defend the security of this continent, so does our country still sacrifice greatly for freedom around the globe.
Yes, there have been differences between America and Europe. No doubt, there will be differences in the future. But the burdens of global citizenship continue to bind us together. A change of leadership in Washington will not lift this burden. In this new century, Americans and Europeans alike will be required to do more – not less. Partnership and cooperation among nations is not a choice; it is the one way, the only way, to protect our common security and advance our common humanity.
That is why the greatest danger of all is to allow new walls to divide us from one another.
The walls between old allies on either side of the Atlantic cannot stand. The walls between the countries with the most and those with the least cannot stand. The walls between races and tribes; natives and immigrants; Christian and Muslim and Jew cannot stand. These now are the walls we must tear down.
We know they have fallen before. After centuries of strife, the people of Europe have formed a Union of promise and prosperity. Here, at the base of a column built to mark victory in war, we meet in the center of a Europe at peace. Not only have walls come down in Berlin, but they have come down in Belfast, where Protestant and Catholic found a way to live together; in the Balkans, where our Atlantic alliance ended wars and brought savage war criminals to justice; and in South Africa, where the struggle of a courageous people defeated apartheid.
So history reminds us that walls can be torn down. But the task is never easy. True partnership and true progress requires constant work and sustained sacrifice. They require sharing the burdens of development and diplomacy; of progress and peace. They require allies who will listen to each other, learn from each other and, most of all, trust each other.
That is why America cannot turn inward. That is why Europe cannot turn inward. America has no better partner than Europe. Now is the time to build new bridges across the globe as strong as the one that bound us across the Atlantic. Now is the time to join together, through constant cooperation, strong institutions, shared sacrifice, and a global commitment to progress, to meet the challenges of the 21st century. It was this spirit that led airlift planes to appear in the sky above our heads, and people to assemble where we stand today. And this is the moment when our nations – and all nations – must summon that spirit anew.
This is the moment when we must defeat terror and dry up the well of extremism that supports it. This threat is real and we cannot shrink from our responsibility to combat it. If we could create NATO to face down the Soviet Union, we can join in a new and global partnership to dismantle the networks that have struck in Madrid and Amman; in London and Bali; in Washington and New York. If we could win a battle of ideas against the communists, we can stand with the vast majority of Muslims who reject the extremism that leads to hate instead of hope.
This is the moment when we must renew our resolve to rout the terrorists who threaten our security in Afghanistan, and the traffickers who sell drugs on your streets. No one welcomes war. I recognize the enormous difficulties in Afghanistan. But my country and yours have a stake in seeing that NATO’s first mission beyond Europe’s borders is a success. For the people of Afghanistan, and for our shared security, the work must be done. America cannot do this alone. The Afghan people need our troops and your troops; our support and your support to defeat the Taliban and al Qaeda, to develop their economy, and to help them rebuild their nation. We have too much at stake to turn back now.
This is the moment when we must renew the goal of a world without nuclear weapons. The two superpowers that faced each other across the wall of this city came too close too often to destroying all we have built and all that we love. With that wall gone, we need not stand idly by and watch the further spread of the deadly atom. It is time to secure all loose nuclear materials; to stop the spread of nuclear weapons; and to reduce the arsenals from another era. This is the moment to begin the work of seeking the peace of a world without nuclear weapons.
This is the moment when every nation in Europe must have the chance to choose its own tomorrow free from the shadows of yesterday. In this century, we need a strong European Union that deepens the security and prosperity of this continent, while extending a hand abroad. In this century – in this city of all cities – we must reject the Cold War mind-set of the past, and resolve to work with Russia when we can, to stand up for our values when we must, and to seek a partnership that extends across this entire continent.
This is the moment when we must build on the wealth that open markets have created, and share its benefits more equitably. Trade has been a cornerstone of our growth and global development. But we will not be able to sustain this growth if it favors the few, and not the many. Together, we must forge trade that truly rewards the work that creates wealth, with meaningful protections for our people and our planet. This is the moment for trade that is free and fair for all.
This is the moment we must help answer the call for a new dawn in the Middle East. My country must stand with yours and with Europe in sending a direct message to Iran that it must abandon its nuclear ambitions. We must support the Lebanese who have marched and bled for democracy, and the Israelis and Palestinians who seek a secure and lasting peace. And despite past differences, this is the moment when the world should support the millions of Iraqis who seek to rebuild their lives, even as we pass responsibility to the Iraqi government and finally bring this war to a close.
This is the moment when we must come together to save this planet. Let us resolve that we will not leave our children a world where the oceans rise and famine spreads and terrible storms devastate our lands. Let us resolve that all nations – including my own – will act with the same seriousness of purpose as has your nation, and reduce the carbon we send into our atmosphere. This is the moment to give our children back their future. This is the moment to stand as one.
And this is the moment when we must give hope to those left behind in a globalized world. We must remember that the Cold War born in this city was not a battle for land or treasure. Sixty years ago, the planes that flew over Berlin did not drop bombs; instead they delivered food, and coal, and candy to grateful children. And in that show of solidarity, those pilots won more than a military victory. They won hearts and minds; love and loyalty and trust – not just from the people in this city, but from all those who heard the story of what they did here.
Now the world will watch and remember what we do here – what we do with this moment. Will we extend our hand to the people in the forgotten corners of this world who yearn for lives marked by dignity and opportunity; by security and justice? Will we lift the child in Bangladesh from poverty, shelter the refugee in Chad, and banish the scourge of AIDS in our time?
Will we stand for the human rights of the dissident in Burma, the blogger in Iran, or the voter in Zimbabwe? Will we give meaning to the words “never again” in Darfur?
Will we acknowledge that there is no more powerful example than the one each of our nations projects to the world? Will we reject torture and stand for the rule of law? Will we welcome immigrants from different lands, and shun discrimination against those who don’t look like us or worship like we do, and keep the promise of equality and opportunity for all of our people?
People of Berlin – people of the world – this is our moment. This is our time.
I know my country has not perfected itself. At times, we’ve struggled to keep the promise of liberty and equality for all of our people. We’ve made our share of mistakes, and there are times when our actions around the world have not lived up to our best intentions.
But I also know how much I love America. I know that for more than two centuries, we have strived – at great cost and great sacrifice – to form a more perfect union; to seek, with other nations, a more hopeful world. Our allegiance has never been to any particular tribe or kingdom – indeed, every language is spoken in our country; every culture has left its imprint on ours; every point of view is expressed in our public squares. What has always united us – what has always driven our people; what drew my father to America’s shores – is a set of ideals that speak to aspirations shared by all people: that we can live free from fear and free from want; that we can speak our minds and assemble with whomever we choose and worship as we please.
These are the aspirations that joined the fates of all nations in this city. These aspirations are bigger than anything that drives us apart. It is because of these aspirations that the airlift began. It is because of these aspirations that all free people – everywhere – became citizens of Berlin. It is in pursuit of these aspirations that a new generation – our generation – must make our mark on the world.
People of Berlin – and people of the world – the scale of our challenge is great. The road ahead will be long. But I come before you to say that we are heirs to a struggle for freedom. We are a people of improbable hope. With an eye toward the future, with resolve in our hearts, let us remember this history, and answer our destiny, and remake the world once again.
The Darjeeling Limited
from http://www.nytimes.com/
By A. O. SCOTT
Published: September 28, 2007
To call “The Darjeeling Limited” precious is less a critical judgment than a simple statement of fact, equivalent to saying that the movie is in color, that it’s set in India or that it’s 91 minutes long. It’s synonymous with saying the movie was directed by Wes Anderson. By now — “The Darjeeling Limited” is his fifth feature film — Mr. Anderson’s methods and preoccupations are as familiar as the arguments for and against them. (See an essay in the current issue of The Atlantic Monthly for the prosecution and a profile in this week’s New York magazine for the defense.) His frames are, once again, stuffed with carefully placed curiosities, both human and inanimate; his story wanders from whimsy to melancholy; his taste in music, clothes, cars and accessories remains eccentric and impeccable.
pic by James Hamilton

And like his other recent films, “The Royal Tenenbaums” and “The Life Aquatic With Steve Zissou,” this new one celebrates a sensibility at once cliquish and inclusive. It reflects the aesthetic obsessions of a tiny coterie that anyone with the price of a ticket is free to join. (Charter members include Owen Wilson, one of the film’s three leading men, and his co-star Jason Schwartzman, who wrote the script with Mr. Anderson and Roman Coppola.)
Precious, in any case, is a word with two meanings, which both might apply to “The Darjeeling Limited.” This shaggy-dog road trip, in which three semi-estranged brothers travel by rail across India, is unstintingly fussy, vain and self-regarding. But it is also a treasure: an odd, flawed, but nonetheless beautifully handmade object as apt to win affection as to provoke annoyance. You might say that it has sentimental value.
Whether sentimental value can be willed into being and marketed with movie studio money is an interesting question. What is beyond doubt is that Mr. Anderson’s main characters and creative collaborators share with him a passion for collecting rare objects and unusual experiences, all of which they handle with exquisite, jealous care.
The fraternal trio in “The Darjeeling Limited” — Francis, Jack and Peter Whitman — express, and perhaps construct, their personalities largely through their attachment to things. Francis (Mr. Wilson) has an expensive leather belt, which he tentatively offers as a gift to Peter (Adrien Brody), who cherishes a pair of sunglasses that once belonged to their father. The third brother, Jack (Mr. Schwartzman), is a bit less of a commodity fetishist, though he does have a thing for the savory snacks served on Indian trains (and for the women who serve them).
Francis, Peter and Jack share a huge set of luggage, like those sunglasses a legacy of the father whose death hangs over their journey like a mournful mist. All those grips and valises, piled onto railways cars, buses, donkey carts and other conveyances, can be taken as a metaphor, a kind of visual pun on the emotional baggage these brothers are clearly carrying around. (By the way, this matched, monogrammed set of symbols, we learn in the credits, was designed by Marc Jacobs for Louis Vuitton, with “suitcase wildlife drawings” by Eric Anderson.)
The trip has been planned by Francis, with compulsive attention to detail (perhaps a bit of self-satire on the director’s part) and with an explicit therapeutic purpose. He wants them all to bond, to be “brothers like we used to be,” to “say yes to everything.”
Mostly he expects Peter and Jack to assent to his control-freak instructions, and the friction that arises from their resistance gives “The Darjeeling Limited” its off-kilter comic texture. The movie may be designed within an inch of its life, but there is life in it all the same, an open, relaxed narrative rhythm that cuts against the tight visual arrangements.
Part of the pleasure of watching it comes from never knowing quite what will happen next. Not that everything that happens is pleasant. Wes Anderson’s world may be a place of wonder and caprice, but it is also a realm of melancholy and frustration, as if all the cool, exotic bric-a-brac had been amassed to compensate for a persistent feeling of emptiness. The Whitman boys may seem happy-go-lucky, but on closer inspection they don’t look very happy at all.
And even when we learn bits and pieces of their history — their father is dead; their mother (Anjelica Huston) ran off to become a nun; they have been variously disappointed in love and friendship — the sorrow is never traced to its source. Nor is it ever entirely banished. (Some of that sadness drifts in from beyond the screen; it is hard to look at Mr. Wilson’s bruised, bandaged face and weary eyes without being reminded of his recent suicide attempt.)
Mr. Anderson is clumsiest when he tries to confront intense emotion directly. The death of an Indian child, for instance, is less a dramatic crisis than an aesthetic opportunity, a chance for the brothers (and the filmmakers) to explore another aspect of the beauty and mystery of India.
“The Darjeeling Limited” amounts finally to a high-end, high-toned tourist adventure. I don’t mean this dismissively; it would be hypocritical of me to deny the delights of luxury travel to faraway lands. And Mr. Anderson’s eye for local color — the red-orange-yellow end of the spectrum in particular — is meticulous and admiring.
But humanism lies either beyond his grasp or outside the range of his interests. His stated debt to “The River,” Jean Renoir’s film about Indian village life, and his use of music from the films of Satyajit Ray represent both an earnest tribute to those filmmakers and an admission of his own limitations. They were great directors because they extended the capacity of the art form to comprehend the world that exists. He is an intriguing and amusing director because he tirelessly elaborates on a world of his own making.
It is certainly a world worth visiting, though a short stay may be preferable to an extended sojourn. At the New York Film Festival — where it will be shown as the opening-night selection this evening — “The Darjeeling Limited” will be preceded by a short, written and directed by Mr. Anderson, called “Hotel Chevalier.”
That film, which visits Jack Whitman (Natalie Portman visits him too) at some point before the events chronicled in the feature, will accompany “Darjeeling” on DVD, but not when it opens in New York theaters tomorrow. It is worth seeking out, not only because it fleshes out part of the story of the Whitman brothers but also because, on its own, it is an almost perfect distillation of Mr. Anderson’s vexing and intriguing talents, enigmatic, affecting and wry. “The Darjeeling Limited” is an overstuffed suitcase. “Hotel Chevalier” is a small gem.
“The Darjeeling Limited” is rated R (Under 17 requires accompanying parent or adult guardian) for sex, drug use and profanity.
THE DARJEELING LIMITED
Directed by Wes Anderson; written by Mr. Anderson, Roman Coppola and Jason Schwartzman; director of photography, Robert Yeoman; edited by Andrew Weisblum; music from the films of Satyajit Ray and Merchant Ivory; production designer, Mark Friedberg; produced by Mr. Anderson, Scott Rudin, Mr. Coppola and Lydia Dean Pilcher; released by Fox Searchlight Pictures. Running time: 91 minutes.
WITH: Owen Wilson (Francis), Adrien Brody (Peter), Jason Schwartzman (Jack), Anjelica Huston (Patricia), Amara Karan (Rita), Camilla Rutherford (Alice) and Irrfan Khan (Village Father).
I thought this movie was fantastic. It was 3 white guys, brothers, on a trip through rural India. It was "Sideways" with culture shock. It was hilarious, tragic and ultimately uplifting. Themes were: Humor, Delicious Cinematography, Acting, Agoraphobia, Claustrophobia, Abusive relationships, Trust, Baggage - expensive baggage at that - both metaphorically and physically, Sibling love and rivalry, Spirituality, Emptiness, Abandonment, Joy, Freedom, Birth, Death, Cultures, Customs, Acting. Wow. Wes Anderson is very talented and most movie critics tend to write poor reviews of this work - not sure why.