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EXECUTIVE POLL

Bernard Madoff, convicted of running an $65 billion Ponzi scheme, was sentenced to 150 years in jail. What’s your take on his punishment?

Too heavy. There’s no point having him die in jail.
About right.
Not nearly heavy enough.
Not sure
 
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CURRENT LETTER

 
The Kiplinger Washington Editors
July 2, 2009
 

Overhauling
Financial Regs

By year-end or so, Congress will give the nod to a major rewriting of the nation's financial regulatory system. This week’s Kiplinger Letter explores whether the package will do more harm than good and what lawmakers are likely to include.
 
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OPEN FORUM: Share your insights and analysis with other visitors.
 
I just attended a franchise seminar. The speaker represents a few hundred franchises that (he says) are hand picked. He has the prospect (aka victim?) answer some questions about themselves then he makes recomendations - based on your personality, capital situation, etc.. If you pick a franchise, then he does some due dilligence for you. If you both decide it's a good idea, he helps you get started. He says he offers this service free of charge, which means he gets a commission if he's able to sell you a franchise. Has anyone done this? Successfully? Unsuccessfully?
-- fender
 

Fixing America's National Security Mess

A close look at the way the country plans, budgets and pays for national defense reveals nothing less than a disaster that could take president-elect Obama's full term to fix.
 
 
Anthony Cordesman
Center for Strategic & International Studies
An expert on modern warfare and strategic assessment, the Middle East and the politics of energy, Anthony H. Cordesman has held numerous senior positions in the Defense and State departments over the past 30 years. He is currently at the Center for Strategic & International Studies (CSIS) and is a military analyst for ABC News.

There are a multitude of things the American public ought to hear the presidential candidates discuss in detail but don't. However, it should be more than a little unnerving that among those unspoken topics are the decay of the military and utter absence of national security strategy, planning and budgeting. There is, astonishingly enough, no actual budget for fighting the wars that the United States is involved in. There is no real plan in place for replacing equipment and supplies depleted in those wars. There is little connection between long-range national security goals and weapons programs. Procurement programs are an undisciplined and over-budget embarrassment.

"There is no clear or coherent plan, program or budget that reflects the fact the nation is at war and no credible mix of force plans, modernization plans and procurement plans for the future," warns Anthony Cordesman, a respected national security analyst with the nonpartisan Center for Strategic and International Studies. "...No hard choices have been made." And it will all fall on the next president to fix -- and likely take him or her a full term to turn things around.

Cordesman finds the situation -- and the lack of attention being paid to it in an election year -- so alarming that he has written a 130-plus page briefing that he intends to keep updating throughout the year as information and new ideas emerge. He doesn't blame any one administration for the mess -- but he does blame current officials, and a Congress content to go along with them, for a budgeting, planning and procurement process so poorly conceived and executed that words and phrases such as "absurd", "no credible plan" and "liars' contest" crop up throughout the report.

Cordesman does find an occasional ray of sunshine in the situation. While an honest defense budget would likely be 20%-30% higher than current spending requests, fully funding programs would not "place an unacceptable national security burden on the nation's economy and federal/public spending," he says, arguing that the cost would be lower than it was during the Cold War. But then Cordesman's forecast grows gloomy again: "There will, however, be sharply growing pressure on the federal budget from rising mandatory spending and entitlements costs, and national security spending -- like all discretionary spending -- will come under growing pressure."

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