Attacks on Pacific north-west power stations raise fears for US electric grid

The Guardian

Attacks on Pacific north-west power stations raise fears for US electric grid

Dani Anguiano in Los Angeles – December 10, 2022

<span>Photograph: Mathieu Lewis-Rolland/Reuters</span>
Photograph: Mathieu Lewis-Rolland/Reuters

A string of attacks on power facilities in Oregon and Washington has caused alarm and highlighted the vulnerabilities of the US electric grid.

The attacks in the Pacific north-west come just days after a similar assault on North Carolina power stations that cut electricity to 40,000 people.

As first reported by Oregon Public Broadcasting and KUOW Public Radio, there have been at least six attacks, some of which involved firearms and caused residents to lose power. Two of the attacks shared similarities with the incident in Moore county, North Carolina, where two stations were hit by gunfire. Authorities have not yet revealed a motive for the North Carolina attack.

The four Pacific north-west utilities whose equipment was attacked have said they are cooperating with the FBI. The agency has not yet confirmed if it is investigating the incidents.

It’s unknown who is behind the attacks but experts have long warned of discussion among extremists of disrupting the nation’s power grid.

Related: FBI joins investigation into attack on North Carolina power grid

Bonneville Power Administration (BPA) said in a statement on Thursday that it was seeking tips about “trespassing, vandalism and malicious damage of equipment” at a substation in Clackamas county on 24 November that caused damage and required cleanup costing hundreds of thousands of dollars.

“Someone clearly wanted to damage equipment and, possibly, cause a power outage,” said John Lahti, the utility’s transmission vice-president of field services. “We were fortunate to avoid any power supply disruption, which would have jeopardized public safety, increased financial damages and presented challenges to the community on a holiday.”

Any attack on electric infrastructure “potentially puts the safety of the public and our workers at risk”, said BPA, which delivers hydropower across the Pacific north-west .

Portland General Electric, a public utility that provides electricity to nearly half of the state’s population, said it had begun repairs after suffering “a deliberate physical attack on one of our substations” that also occurred in the Clackamas area in late November 2022. It said it was “actively cooperating” with the FBI.

Puget Sound Energy, an energy utility in Washington, reported two cases of vandalism at two substations in late November to the FBI and peer utilities, but said the incidents appeared to be unrelated to other recent attacks.

“There is no indication that these vandalism attempts indicate a greater risk to our operations and we have extensive measures to monitor, protect and minimize the risk to our equipment and infrastructure,” the company said in a statement.

overhead view of substation
Duke Energy workers repair an electrical substation that they said was hit by gunfire, near Pinehurst, North Carolina, on Tuesday. Photograph: Drone Base/Reuters

Experts and intelligence analysts have long warned of both the vulnerability of the US power grid and talk among extremists about attacking the crucial infrastructure.

“It’s very vulnerable,” said Keith Taylor, a professor at the University of California, Davis, who has worked with energy utilities. “[These attacks] are a real threat.”

The physical risks to the power grid have been known for decades, Granger Morgan, an engineering professor at Carnegie Mellon University, told CBS. “We’ve made a bit of progress, but the system is still quite vulnerable,” he said.

US Department of Homeland Security (DHS) report released in January warned that domestic extremists have been developing “credible, specific plans” to attack electricity infrastructure since at least 2020.

The DHS has cited a document shared on a Telegram channel used by extremists that included a white supremacist guide to attacking an electric grid with firearms, CNN reported.

“These fringe groups have been talking about this for a long time,” Taylor said. “I’m not at all surprised this happened – I’m surprised it’s taken this long.”

Three men who law enforcement identified as members of the Boogaloo movement allegedly planned to attack a substation in Nevada in 2020 to distract police and attempt to incite a riot.

In 2013, still unknown assailants cut fiber-optic phone lines and used a sniper to fire shots at a Pacific Gas & Electric substation near San Jose in what appeared to be a carefully planned attack that caused millions of dollars in damage. The attack prompted the Federal Energy Regulatory Commission (Ferc) to order grid operators to increase security.

“They knew what they were doing. They had a specific objective. They wanted to knock out the substation,” Jon Wellinghoff, the then chair of Ferc, told 60 Minutes, adding that the attack could have “brought down all of Silicon Valley”.

After the 2013 attack in California, a Ferc analysis found that attackers could cause a blackout coast-to-coast if they took out only nine of the 55,000 substations in the US.

The US electrical grid is vast and sprawling with 450,000 miles of transmission lines, 55,000 substations and 6,400 power plants. Power plants and substations are dispersed in every corner of the country, connected by transmission lines that transport electricity through farmland, forests and swamps. Attackers do not necessarily have to get close to cause significant damage.

“In a centralized system, if I [want] to take out one coal-fired plant, I don’t even have to take out the plant, I just have to take out the transmission line,” said Taylor. “You can cause a ripple effect where one outage can cause an entire seaboard to go down.”

The Associated Press contributed to this report

America’s Toxic Gun Culture

By The Editorial Board – December 10, 2022

An array of gun cartridges set against a black background.
Credit…Sam Kaplan/Trunk Archive

This editorial is the fifth in a series, “The Danger Within,” urging readers to understand the danger of extremist violence and possible solutions. Read more about the series in a note from Kathleen Kingsbury, the Times Opinion editor.

A year ago, Representative Thomas Massie of Kentucky posted a Christmas photo on Twitter. In it, Mr. Massie, his wife and five children pose in front of their ornament-bedecked tree. Each person is wearing a big grin and holding an assault weapon. “Merry Christmas! ps. Santa, please bring ammo,” Mr. Massie wrote on Twitter.

The photo was posted on Dec. 4, just four days after a mass shooting at a school in Oxford, Mich., that left four students dead and seven other people injured.

The grotesque timing led many Democrats and several Republicans to criticize Mr. Massie for sharing the photo. Others lauded it and nearly 80,000 people liked his tweet. “That’s my kind of Christmas card!” wrote Representative Lauren Boebert of Colorado, who then posted a photo of her four sons brandishing similar weapons.

These weapons, lightweight and endlessly customizable, aren’t often used in the way their devotees imagine — to defend themselves and their families. (In a recent comprehensive survey, only 13 percent of all defensive use of guns involved any type of rifle.) Nevertheless, in the 18 years since the end of the federal assault weapons ban, the country has been flooded with an estimated 25 million AR-15-style semiautomatic rifles, making them one of the most popular in the United States. When used in mass shootings, the AR-15 makes those acts of violence far more deadly. It has become the gun of choice for mass killers, from Las Vegas to Uvalde, Sandy Hook to Buffalo.

The AR-15 has also become a potent talisman for right-wing politicians and many of their voters. That’s a particularly disturbing trend at a time when violent political rhetoric and actual political violence in the United States are rising.

Addressing violent right-wing extremism is a challenge on many fronts: This board has argued for stronger enforcement of state anti-militia laws, better tracking of extremists in law enforcement and the military, and stronger international cooperation to tackle it as a transnational issue. Most important, there is a civil war raging inside the Republican Party between those who support democracy and peaceful politics and those who support far-right extremism. That conflict has repercussions for all of us, and the fetishization of guns is a pervasive part of it.

The prominence of guns in campaign ads is a good barometer of their political potency. Democrats have sometimes used guns in ads — in 2010, Joe Manchin of West Virginia, running for the Senate, shot a hole through a copy of the cap-and-trade climate bill with a single-shot hunting rifle. Since then, guns have all but disappeared from Democratic messaging. But in the most recent midterm elections, Republican politicians ran more than 100 ads featuring guns and more than a dozen that featured semiautomatic military-style rifles.

In one of the most violent of those ads, Eric Greitens, a Republican candidate for Senate in Missouri and a former Navy SEAL, kicks in the door of a house and barges in with a group of men dressed in tactical gear and holding assault rifles. Mr. Greitens boasts that the group is hunting RINOs — a derogatory term for “Republicans in name only.” The ad continues, “Get a RINO hunting permit. There’s no bagging limit, no tagging limit, and it doesn’t expire until we save our country.”

Twitter flagged the ad, Facebook banned it for violating its terms of service, and Mr. Greitens lost his race for office. He may have been playacting in the ad, but many other heavily armed people with far-right political views are not. Openly carried assault rifles have become an all too common feature of political events around the country and are having a chilling effect on the exercise of political speech.

This intimidating display of weaponry isn’t a bipartisan phenomenon: A recent New York Times analysis examined more than 700 demonstrations where people openly carrying guns showed up. At about 77 percent of the protests, those who were armed “represented right-wing views, such as opposition to L.G.B.T.Q. rights and abortion access, hostility to racial justice rallies and support for former President Donald J. Trump’s lie of winning the 2020 election.”

As we’ve seen at libraries that host drag queen book readingsJuneteenth celebrations and Pride marches, the Second Amendment’s right to bear arms is fast running up against the First Amendment’s right to peaceably assemble. Securing that right, and addressing political violence in general, requires addressing the armed intimidation that has become commonplace in public places and the gun culture that makes it possible.


A growing number of American civilians have an unhealthy obsession with “tactical culture” and rifles like the AR-15. It’s a fringe movement among the 81 million American gun owners, but it is one of several alarming trends that have coincided with the increase in political violence in this country, along with the spread of far-right extremist groups, an explosion of anti-government sentiment and the embrace of deranged conspiracy theories by many Republican politicians. Understanding how these currents feed one another is crucial to understanding and reversing political violence and right-wing extremism.

The American gun industry has reaped an estimated $1 billion in sales over the past decade from AR-15-style guns, and it has done so by using and cultivating their status as near mythical emblems of power, hyper-patriotism and manhood. Earlier this year, an investigation by the House Committee on Oversight and Reform found that the gun industry explicitly markets its products by touting their military pedigree and making “covert references to violent white supremacists like the Boogaloo Boys.” These tactics “prey on young men’s insecurities by claiming their weapons will put them ‘at the top of the testosterone food chain.’”

This marketing and those sales come at a significant cost to America’s social fabric.

In his recent book “Gunfight: My Battle Against the Industry That Radicalized America,” Ryan Busse, a former firearms company executive, described attending a Black Lives Matter rally with his son in Montana in 2020. At the rally, dozens of armed men, some of them wearing insignia from two paramilitary groups — the 3 Percenters and the Oath Keepers — appeared, carrying assault rifles. After one of the armed men assaulted his 12-year-old son, Mr. Busse had his epiphany.

“For years prior to this protest, advertising executives in the gun industry had been encouraging the ‘tactical lifestyle,’” Mr. Busse wrote. The gun industry created a culture that “glorified weapons of war and encouraged followers to ‘own the libs.’”

The formula is a simple one: More rage, more fear, more gun sales.

A portion of those proceeds are then funneled back into politics through millions of dollars in direct contributions, lobbying and spending on outside groups, most often in support of Republicans.

All told, gun rights groups spent a record $15.8 million on lobbying in 2021 and $2 million in the first quarter of 2022, the transparency group OpenSecrets reported. “From 1989 to 2022, gun rights groups contributed $50.5 million to federal candidates and party committees,” the group found. “Of that, 99 percent of direct contributions went to Republicans.”


The Danger Within

It is important, of course, to distinguish between the large majority of law-abiding gun owners and the small number of extremists. Only about 30 percent of gun owners have owned an AR-15 or similar rifle, a majority support common sense gun restrictions and a majority reject political violence.

Institutions and individuals — prominent politicians, for instance, and responsible gun owners — could do far more to insist that assault weapons have no place in public spaces, even if they are permitted in many states, where the open carry of firearms is legal. Public condemnation of such displays is a good place to start.

Republicans should also show more courage in condemning extremists in their own ranks. When Representative Massie posted his Christmas photo, Representative Adam Kinzinger of Illinois responded on Twitter: “I’m pro second amendment, but this isn’t supporting right to keep and bear arms, this is a gun fetish.” There’s a difference between celebrating Christmas secure in the knowledge that you have a weapon to defend your home and family and sending out a photo of your arsenal days after a school shooting.

Democrats, while they may hope for stricter gun laws overall, should also recognize that they do share common ground with many gun owners — armed right-wing extremists and those who fetishize AR-15s do not represent typical American gun owners or their beliefs. That’s especially true given the changing nature of who owns guns in the United States: women and Black Americans are among the fastest-growing demographics.

This summer, for the first time in decades, Congress passed major bipartisan gun safety legislation — a major accomplishment and a sign that common ground is not terra incognita. It should have gone further — and can in the future: preventing anyone under 21 from buying a semiautomatic weapon, for instance, and erasing the 10-year sunset of the background-check provision. States should also be compelled to pass tougher red-flag laws to take guns out of the hands of suicidal or potentially violent people. Mandatory gun-liability insurance is also an idea with merit.

States and the federal government should also pass far tougher regulations on the gun industry, particularly through restrictions on the marketing of guns, which have helped supercharge the cult of the AR-15. New York’s law, which allows parties like victims of gun violence and the state government to sue gun sellers, manufacturers and distributors, is a good model for other states to follow.

Federal regulators should also do more to regulate the arms industry’s marketing practices, which are becoming more deadly and deranged by the year. They have the legal authority to do so but, thus far, not the will to act.

Americans are going to live with a lot of guns for a long time. There are already more than 415 million guns in circulation, including 25 million semiautomatic military-style rifles. Calls for confiscating them — or even calls for another assault weapons ban — are well intentioned and completely unrealistic. With proper care and maintenance, guns made today will still fire decades from now. Each month, Americans add nearly two million more to the national stockpile.

But even if common-sense regulation of guns is far from political reality, Americans do not have to accept the worst of gun culture becoming pervasive in our politics. The only hope the nation has for living in and around so many deadly weapons is a political system capable of resolving our many differences without the need to use them.

Thanks in part to climate change, vegetable prices have soared in the U.S.

Yahoo! News

Thanks in part to climate change, vegetable prices have soared in the U.S.

David Knowles, Senior Editor – December 9, 2022

A cluster of red Roma tomatoes, shriveled and rotten, hang on the vine, with a farmer looking on from above.
Tomatoes for processing damaged by heat and drought hang on vines in a field belonging to farmer Aaron Barcellos in Los Banos, Calif., in September. (Nathan Frandino/Reuters)

Vegetable prices in the United States were up nearly 40% in November over the previous month, according to new figures from the Labor Department, and climate change is one of the reasons why.

In California, an ongoing drought that studies have shown has been been exacerbated by climate change, has led to $3 billion worth of agriculture losses in a state that grows much of the nation’s food. The megadrought, which covers much of the American West, has forced cuts in the amount of water that states like California and Arizona receive from the Colorado River.

That has left tomatoes to wither on the vine, and lettuce to shrivel.- ADVERTISEMENT -https://s.yimg.com/rq/darla/4-10-1/html/r-sf-flx.html

“There’s just not enough water to grow everything that we normally grow,” Don Cameron, president of the State Board of Food and Agriculture, told the Times of San Diego.

Thanks to a significantly diminished snowpack in 2022, following the driest January and February in recorded history in the state, California’s Central Valley has also struggled to produce its usual output of fruits and vegetables.

Making matters even worse, and more expensive for consumers, lettuce production in the Salinas Valley has fallen further, thanks to an outbreak of the impatiens necrotic spot virus, which spreads from plant to plant and can decimate entire greenhouses.

“In October, most of the nation’s lettuce comes from the Salinas Valley, and they are having very low production because the virus affected their crop,” Bruce Babcock, an agricultural economist at the University of California Riverside, told NBC Bay Area. “A case of romaine is $75 now, and last January, it was $25, so that’s almost a tripling of prices at the wholesale level.”

An unripe orange, surrounded by several rotten brown oranges.
Oranges lie on the ground in a grove in Arcadia, Fla., in October after Hurricane Ian. (Joe Raedle/Getty Images)

The long-term climate change trend in California, however, is causing the state’s government to take action. In August, California Gov. Gavin Newsom announced an $8 billion plan aimed at increasing the state’s water supply and “adapting to a hotter, drier future.”

“We are experiencing extreme, sustained drought conditions in California and across the American West caused by hotter, drier weather,” a policy outline released by the governor’s office stated. “Our warming climate means that a greater share of the rain and snow fall we receive will be absorbed by dry soils, consumed by thirsty plants, and evaporated into the air. This leaves less water to meet our needs.”

The negative farming impacts in California from climate change are much the same story in Arizona, which provides more than 9% of the country’s leafy greens during the winter months, Bloomberg reported. The combination of the drought and Colorado River water cuts have severely affected the growing season, and more cuts are coming in the new year. In August, the federal government announced that water deliveries to Arizona would be reduced by another 20%, starting in January of next year.

“Prolonged drought is one of the most profound issues facing the U.S. today,” Tommy Beaudreau, assistant secretary of the interior, said in announcing the cuts.

In Florida, the top supplier of fruits and vegetables in the U.S. during autumn and winter, Hurricane Ian caused up to $1.9 billion in damages to the state’s agricultural industry, hitting orange and tomato crops particularly hard.

Studies have shown that Ian was wetter and more intense as a consequence of climate change.

Which Billionaire Owns The Most Land In The U.S.? Hint, It’s Not Bill Gates

Benzinga

Which Billionaire Owns The Most Land In The U.S.? Hint, It’s Not Bill Gates

AJ Fabino – December 7, 2022

Earlier this year, in May, claims were made that Microsoft Corp co-founder Bill Gates owned the majority of America’s farmland.

While that is false, with the billionaire amassing nearly 270,000 acres of farmland across the country, compared to 900 million total farm acres, a different billionaire privately owns 2.2 million acres, making him the largest landowner in the U.S.

John Malone, the former CEO of Tele-Communications Inc., which AT&T Inc. purchased for more than $50 billion in 1999, has a variety of ranching and real estate businesses, primarily in Maine, New Mexico, Colorado, and Wyoming.

Worth $9.6 billion, Malone, a media veteran, said he purchased the land because “they are not making it anymore.” He also owns three hotels in Dublin, Ireland, and a fourth in Limerick.

The current Liberty Media Corp chairman made the decision to put his billions of dollars in wealth into land after spending a summer working on a family farm in Pennsylvania.

Read also: Homebuilders Are Throwing Money At Buyers At A Furious Pace Just To Close A Sale, Data Finds

Bell Ranch in New Mexico, a 290,100-acre plain dotted with mesas, rimrock canyons, meadows, and a distinctive bell-shaped mountain, was one of his first significant acquisitions. In addition, Florida’s Bridlewood Farms is a noteworthy asset.

He now holds the title of the largest landlord in the US, surpassing Ted Turner, with a total of 2.2 million acres of crops, ranch property, and woodland.

Malone noted in a CNBC interview that preservation was his primary motivation for purchasing land, and he intends to purchase more. He said that his properties serve as a reliable source of income and a solid hedge against inflation.

Speaking of a hedge against inflation, did you know that you can invest as little as $100 into rental properties to earn passive income and build long-term wealth? Here’s how you can get involved right now.

“The conservation of lands is important,” the billionaire said. “That was a virus that I got from Ted Turner.”

He continued, “the forestry part of it in the Northeast is a pretty good business, with very low return on capital, but very stable and leverageable,” Malone said. “And we think it will provide good inflation protection in the long run. That’s basically the motivation there. It just seemed like a good thing to do.”

If There Is a ‘Male Malaise’ With Work, Could One Answer Be at Sea?

The New York Times

If There Is a ‘Male Malaise’ With Work, Could One Answer Be at Sea?

Talmon Joseph Smith – December 6, 2022

A crew member of the tugboat Millennium Falcon boards the tank barge Dale Frank Jr. in Seattle's Elliott Bay, Oct. 5, 2022. (Lindsey Wasson/The New York Times)
A crew member of the tugboat Millennium Falcon boards the tank barge Dale Frank Jr. in Seattle’s Elliott Bay, Oct. 5, 2022. (Lindsey Wasson/The New York Times)

SEATTLE — Before dawn on a recent day in the port of Seattle, dense autumn fog hugged Puget Sound and ship-to-shore container cranes hovered over the docks like industrial sentinels. Under the dim glimmer of orange floodlights, the crew of the tugboat Millennium Falcon fired up the engines for a long day of towing oil barges and refueling a variety of large vessels, like container ships.

The first thing to know about barges is that they don’t move themselves. They are propelled and guided by tugs like the Falcon, which is owned by Centerline Logistics, one of the largest U.S. transporters of marine petroleum. Such companies may not be household names, but the nation’s energy supply chain would have broken under the pandemic’s pressure without the steady presence of their fleets — and their crews.

“We’re a floating gas station,” said Bowman Harvey, a director of operations at Centerline, as he stood aboard the Falcon, his neck tattoo of the Statue of Liberty pivoting from the base of his flannel whenever he gestured at a machine or busy colleague nearby. Demand is solid, he said, and the enterprise is profitable. The company’s client list, which includes Exxon Mobil and Maersk, the global shipping giant, is robust. But manning the fleet has become a struggle.

Multiyear charter contracts for key lines of business — refueling ships, transporting fuel for refineries and general towing jobs — are locked in across all three coasts, plus Hawaii, Alaska and Puerto Rico, Harvey said. Yet as pandemic-related staffing shortages have eased in other industries, Centerline is still short on staff.

“Hands down,” Harvey said, “our biggest challenge right now is finding crew.”

Safely moving, loading and unloading oil at sea requires both simple and highly skilled jobs that cannot be automated. And the labor supply issues in merchant marine transportation are emblematic of the conundrum seen in a variety of decently paying, male-heavy jobs in the trades.

Over the past 50 years, male labor force participation, the share of men working or actively looking for work, has steadily fallen as female participation has climbed.

Some scholars have a grim explanation for the trend. Nicholas Eberstadt, the conservative-leaning author of “Men Without Work,” argues that there has been a swell in men who are “inert, written off or discounted by society and, perhaps, all too often, even by themselves.” Others, like Brookings Institution senior fellow Richard V. Reeves, put less emphasis on potential social pathologies but say a “male malaise” is hampering households and the economy.

Centerline employees are among about 75,000 categorized by the Department of Labor as water transportation workers, a group in which men outnumber women 5-to-1.

Though the gender split in the industry is more even for onshore office roles, workers and applicants for jobs on the water are predominantly male. Centerline says it has roughly 220 offshore crew members and about 35 openings.

Captains and company managers agree that changing attitudes toward work among young men play a part in the labor shortage. But the strongest consensus opinion is that structural demographic shifts are against them.

“We’re seeing a gray wave of retirement,” Harvey, 38, said.

Even though replacements are needed and, on the whole, lacking, there are new young recruits who are thriving, such as Noah Herrera Johnson, 19, who has joined Centerline as a cadet deckhand, an entry-level role.

On a Thursday morning out in the harbor, Herrera Johnson deftly unknotted, flipped and refastened a series of sailing knots as the crew unmoored from a sister boat that was aiding the refueling of a Norwegian Cruise Line ship. A small crowd of curious cruise passengers peeked down as he bopped through the sequences and the sun’s glare began to pierce the fog, bouncing off the undulating waves.

“I enjoy it a lot,” Herrera Johnson said of his work as he sliced some meat in the galley later on. (Some kitchen work and cleaning are part of the gig and the fraternal ritual of paying dues.)

“I get along with everyone — everyone has stories to tell,” he said. “And I was never good at school.”

Herrera Johnson, who is Mexican American and whose mother is from Seattle, spent most of his life in Cabo San Lucas, in Baja California, until he moved back to the United States shortly after turning 18.

Though entry-level roles aboard don’t require college credentials, new regulations have made at least briefly attending a vocational maritime academy a necessity for those who want to rise quickly up the crew ladder.

Because he is interested in becoming a captain by his late 20s, he began a two-year program at the nearby Pacific Maritime Institute in March, and he earns course credits for work at Centerline between classes.

He got his “first tug” in May: an escapade from New Orleans through the Panama Canal to San Francisco, patched with some bad weather.

“Two months, two long months. It was fun,” he said. “We had a few things going on. We lost steering a few times. But it was cool.”

In short, the industry needs far more Noahs. Many Centerline employees have informally become part-time recruiters — handing out cards, encouraging seemingly capable young men who may be between jobs, undecided about college or disillusioned with the standard 9-to-5 existence to consider being a mariner instead.

“When I’m trying to get friends or family members to come into the business,” Harvey said, “I make sure to remind them: Don’t think of this as a job, think of it as a lifestyle.”

Internet connections aboard are common these days, and there is plenty of downtime for movies, TV, reading, cooking and joking around with sea mates. (On slow days, captains will sometimes do doughnuts in the water like victorious race car drivers, turning the whole vessel into a Tilt-a-Whirl ride for the crew: Sea legs required.)

Of course, those leisurely moments punctuate days and nights of heaving lines, tying knots, making repairs, executing multiple refueling jobs and helping to navigate the tugboat: rain or shine, heat or heavy seas.

It’s “an adventurous life,” Harvey said, one that he and others acknowledge has its pros and cons. Mariners in this sector — whether they are entry-level deckhands, midtier mates and engineers, or crew-leading tankermen and captains — are usually on duty at sea in tight quarters and bunk beds for a month or more.

On the bright side, however, because of an “equal time” policy, full-time crew members are given roughly just as much time off for the same annual pay.

“When I go home, you know, I’m taking essentially 35 days off,” said Capt. Ryan Buckhalter, 48, who’s been a mariner for 20 years. For many, it’s a refreshing work-life balance, he said: none of the nettlesome emails or nagging office politics in between shifts often faced by the average modern office worker trying to get ahead.

Still, Buckhalter, who has a wife and a young daughter, echoed other crew members when he admitted that the setup could also be “tough at times” for families, including his own.

Crew members say they value knowing that their work, unlike more abstract service jobs, is essential to world trade. Average starting salaries for deckhand jobs are $55,000 a year (or about $26 an hour) and as high as $75,000 in places like the San Francisco area, with higher living costs.

The company also offers low-cost health, vision and dental care for employees, and a 401(k) plan with a company match. So CEO Matt Godden said in an interview that he didn’t think wages or benefits were a central reason that his company and competitors with similar offerings had struggled to hire.

“Right now a lot of companies are really hurting,” Buckhalter said. “You kind of got a little gap here with the younger generation not really showing up.”

If the labor market, like any other, operates by supply and demand, managers in the maritime industry say the supply side of the nation’s education and training system is also at fault: It has given priority to the digital over the physical economy, putting what are often called “the jobs of the future” over those society still needs.

Harvey adds that his industry is also grappling with increased Coast Guard licensing requirements for skilled roles, like boat engineers and tankermen, who lead the loading and discharging of oil barges. The regulations help ensure physical and environmental safety standards, Harvey said, but reduce the already limited pool of adequately credentialed candidates.

Women remain a rare sight aboard. Some captains make the case that this stems from hesitance toward a life of bunking and sharing a bathroom with a crop of guys at sea — a self-reinforcing dynamic that company officials say they are working to alleviate.

“We actually do have women that work on the vessels!” said Kimberly Cartagena, senior manager for marketing and public relations at Centerline. “Definitely not as much as men, but we do have a handful.”

Several economists and industry analysts suggested in interviews that another way for companies like Centerline to add crew members would be to expand their digital presence and do social media outreach. Godden said he remained wary.

“If you did something very simple, like you set up a TikTok account, and you sent somebody out every day to create varied little snippets, and you get viral videos of strong men pulling lines and big waves and big pieces of machinery,” Godden said, then a company would risk introducing an inefficient churn of young recruits who would “like the idea of being on a boat” but not be a fan of the unsexy “calluses” that come with the job.

But in the long term, he said, there is reason for optimism. He pointed to the recent establishment of the Maritime High School, which opened a year ago just south of the Seattle-Tacoma airport with its first ninth grade class.

“I think their first class is looking to graduate a hundred people, and then they got goals of getting up to 300, 400 graduates a year,” Godden said. He has been meeting with the school’s leaders this fall and is convinced they will help create the next pipeline in the profession.

“Yes, labor shortages may increase or decrease depending upon how the market works, but I always have this sense that there’s always going to be this sort of built-in group of folks who cannot — just cannot — stand seeing themselves sitting at a desk for 30, 40, 50 years,” Godden said.

“It’s this hands-on business almost like, you know, when you’re a kid and you’re playing with trucks or toys, and then you get to do it in the life-size version.”

270,000 homebuyers who bought in 2022 are underwater on their mortgage

Yahoo! Money

270,000 homebuyers who bought in 2022 are underwater on their mortgage

Gabriella Cruz Martinez, Personal finance writer – December 6, 2022

About 270,000 homebuyers who bought during the red-hot housing market this year already owe more than their house is worth, a new analysis found.

Among the 450,000 underwater borrowers in the third quarter, nearly 60% had mortgages originated in the first nine months of 2022, Black Knight found. That’s about 1 in 12 homes purchased in 2022 with a mortgage, or 8%. Nearly 40% of homes bought this year have less than 10% of equity left to tap.

The figures reflect yet another fallout from rapidly rising mortgage rates this year, which have put pressure on housing values as home price growth cools at a record pace month over month.

“Though the home price correction has slowed, it has still exposed a meaningful pocket of equity risk,” Ben Graboske, president of Black Knight data and analytics, said in a news statement. “Make no mistake: negative equity rates continue to run far below historical averages, but a clear bifurcation of risk has emerged between mortgaged homes purchased relatively recently versus those bought early in or before the pandemic.”

(Credit: Black Knight)
(Credit: Black Knight)
Lower-income households hurt the most

Borrowers with purchase loans backed by the Federal Housing Administration (FHA) or Veterans Affairs (VA) were most likely to have slipped underwater, the report found. These are more popular among first-time and lower-income buyers.

Those with FHA loans faced the largest equity challenges, Black Knight found, with more than 25% of folks with FHA loans falling underwater. Additionally, some 80% had less than a 10% equity stake in their homes.

Early-payment defaults (EDP) — loans delinquent within six months of origination — were also rising across product types in recent months with the largest increases among FHA borrowers over the past year. As of October, EDP rates for FHA loans were 150% above 2013-2018 levels, and 25% above their early 2000 averages, the report found.

By contrast, early-payment default among those with conforming loans were more than 70% below early 2000 levels, and VA loans were less than half that same threshold.

“Such loans [FHA] rely on rising home values and principal pay-downs over time to gradually improve their equity position,” Graboske said. “This is … unfortunately, potentially vulnerable cohort that we will continue to keep a close eye on in the months ahead.”

 A 'Just Sold' sign hangs in front of a home in Miami, Florida.  (Credit: Joe Raedle/Getty Images)
A ‘Just Sold’ sign hangs in front of a home in Miami, Florida. (Credit: Joe Raedle/Getty Images)
Recent buyers at greater risk

Most of the folks at risk of having their loans slip underwater were those who purchased when home prices were at their highest, Black Knight found. At least 10% of June purchase originations – when home prices peaked at $438,000 – were underwater, with more than 30% having less than 10% equity.

Although home prices have cooled for the last seven months, with prices now 3.2% down from June’s high, the pricing adjustment hasn’t been enough to ease homebuyers’ affordability concerns.

“In a world of interest rates 6.5% and higher, affordability remains perilously close to a 35-year low,” Graboske said. “Risk among earlier purchases is essentially nonexistent given the large equity cushions these mortgage holders are sitting on. More recent homebuyers don’t fare as well.”

Higher mortgage rates may also be limiting the pace of price corrections, Graboske said, due to its damping effect on inventory inflow and subsequent gridlock on home sales activity. The volume of new homes for sale was 19% below the 2017-2019 average, the largest deficit in six years with the exception of March and April 2020 during pandemic-induced lockdowns.

According to the report, the current market is short by more than a half-million listings of what is considered normal by historical measures.

“Add in the effects of typical seasonality and one might expect a far steeper correction in prices than we have endured so far,” Graboske said. “But the never-ending inventory shortage has served to counterbalance these other factors.”

A new drug appears to slow Alzheimer’s. Here’s what to know

Tampa Bay Times, St. Petersburg, Fla

A new drug appears to slow Alzheimer’s. Here’s what to know

Hannah Critchfield, Tampa Bay Times – December 5, 2022

An experimental drug appears to slow cognitive decline in people with early onset Alzheimer’s.

New data on lecanemab, which is manufactured by Biogen and Esai, was published last week in the New England Journal of Medicine that showed people who took the drug experienced “moderately less decline on measures of cognition and function.”

However, some patients also experienced negative side effects like brain swelling and bleeding — meaning people with early Alzheimer’s disease should be aware of the risks before seeking treatment.

How does it work?

Lecanemab decreases the amount of amyloid plaque in the brain. The protein deposits have long been hypothesized to be linked to the progression of Alzheimer’s.

The theory goes like this: Decrease the plaque and you’ll slow the effects of the memory disease.

The new data on lecanemab provides the strongest support for that theory to date.

“That is huge because it gives the person living with the disease an opportunity to be able to live at a higher level of functioning in their life,” said Keith Gibson, director of diversity, equity and inclusion at the Florida Alzheimer’s Association. “It gives them a greater chance to be as normal as possible before the disease really runs its full course. We’re very, very excited about that.”

The 18-month study, which was funded by its manufacturers and involved people aged 50 to 90 with early Alzheimer’s, nevertheless concluded by noting that “longer trials are warranted to determine the efficacy and safety of lecanemab in early Alzheimer’s disease.”

Who can take it?

The drug is intended for people with early-onset Alzheimer’s or mild cognitive impairment.

People who have more advanced stages of Alzheimer’s will likely not be eligible for the treatment.

Given the negative side effects experienced by some patients involved in the study, patients should speak with their doctors when considering whether to seek out lecanemab.

Can I get it now?

People interested in the drug might not have to wait long.

The Food and Drug Administration is considering lecanemab for accelerated approval, and will make its decision on Jan. 6.

How much will it cost?

Esai has said lecanemab could cost between $9,249 and $35,605 a year, a broad estimate that has yet to be narrowed down.

It’s unclear if the drug will be covered by the Centers for Medicare & Medicaid Services should it receive accelerated approval.

Currently, based on an agency decision made in April, Medicare and Medicaid has said it generally will not pay for Alzheimer’s treatments aimed at attacking amyloid plaque until they receive full approval by the Food and Drug Administration, except in clinical trial settings.

A spokesperson for Medicare and Medicaid said it is reviewing the publication in the New England Journal of Medicine and “has met with manufacturers to learn about their efforts” since the April criteria decision.

What if I’m already on another drug that attempts to slow Alzheimer’s?

There’s currently only one drug on the market that attempts to slow progression of Alzheimer’s by reducing the level of plaque in the brain.

Known as Aduhelm or aducanamab, the controversial treatment received federal approval last year, despite limited results that the drug helped patients.

It’s currently unclear how doctors will advise the limited number of patients who are already receiving Aduhelm treatments and want to switch over to lecanemab, which appears to have more conclusive data about its efficacy.

People who are currently taking Aduhelm and are interested in lecanemab should speak to their physicians about next steps.

Anavex’s (AVXL) Lead Alzheimer’s Drug Meets Study Goal

Zacks

Anavex’s (AVXL) Lead Alzheimer’s Drug Meets Study Goal

Zacks Equity Research – December 5, 2022

Shares of Anavex Life Sciences AVXL were up 35.9% on Dec 2 after management reported positive topline data from a phase IIb/III study which evaluated its lead pipeline candidate ANAVEX 2-73 (blarcamesine) in Alzheimer’s disease (AD) indication.

The phase IIb/III study, or the ANANVEX 2-73-AD-004 study, evaluated ANAVEX 2-73 for the treatment of mild cognitive impairment (MCI) due to AD and mild AD (collectively known as early AD)

The ANAVEX 2-73-AD-004 study achieved its primary and key secondary endpoints. Treatment with ANAVEX 2-73 showed robust, statistically significant and clinically meaningful absolute improvement in cognitive functions as measured by ADAS-Cog and ADCS-ADL that were the study’s primary endpoints over a 48-week treatment period in the analysis of the intent-to-treat (ITT) population.

Data from the study showed that study participants who received ANAVEX 2-73 were 84% more likely to have improved cognition than those who were administered placebo. Patients treated with ANAVEX 2-73 were 167% more likely to improve function than those participants who were receiving a placebo. The treatment also showed a statistically significant reduction in cognitive decline at the end of treatment by 45%, when compared with placebo.

The study also met its secondary endpoint of reduction in clinical decline of cognition and function, as measured by CDR-SB score. Data from the study showed a 27% reduction in the ITT population when compared to placebo-administered participants.

The ANAVEX 2-73-AD-004 study randomized AD participants into three equal groups – one group which received a mid-dose of ANAVEX 2-73, a second group, which received a high-dose of the drug and a third group which received placebo.

Anavex continues to conduct a further analysis the above data and intends to submit the same for publication in a peer-reviewed medical journal. Management is also conducting an open-label extension study ATTENTION-AD to follow study participants over a 96-week treatment period.

Shares of Anavex have declined 30.5% this year compared with the industry’s 16.7% fall.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

The results of the ANAVEX 2-73-AD-004 study are also consistent with the phase IIa ANAVEX 2-73 study previously conducted by the company. Data from the phase IIa study had demonstrated a therapeutic effect on cognition and function.

Per management, AD is one of the leading causes of deaths in older adults aged above 65 years and is also the most common cause of dementia in this age group. Treatment with ANAVEX 2-73 demonstrated a reversal of cognitive decline.

Apart from AD, Anavex has also successfully completed clinical studies evaluating ANAVEX 2-73 in other indications. These include a phase II proof-of-concept study on Parkinson’s disease dementia and a phase III study in adult patients with Rett syndrome.

Anaex’s target market is highly competitive as several other pharma companies like Biogen BIIB and Eli Lilly LLY are also developing their candidates targeting the AD indication. The Alzheimer’s candidates of these companies — anti-amyloid beta antibodies — are in late-stage development or review and are expected to be launched in a few months.

Last week, Biogen along with partner Eisai presented detailed data from the phase III confirmatory study CLARITY AD, which evaluated its AD candidate lecanemab (BAN2401) to treat early AD. The data showed that Biogen’s candidate did reduce markers of amyloid in early Alzheimer’s disease and led to moderately less decline in measures of cognition and function than placebo at 18 months. However, treatment with lecanemab was associated with adverse events.

Biogen/Eisai have already filed their biologics license application (BLA) seeking accelerated approval for lecanemab with the FDA, supported by data from a phase II study (Study 201). A final BLA decision is expected by Jan 6, 2023.

Eli Lilly has developed donanemab, an investigational antibody therapy, for AD. Eli Lilly initiated a rolling submission with the FDA last year, seeking approval for donanemab under the accelerated pathway based on data from the phase II TRAILBLAZER-ALZ study. A final decision on the BLA is expected in early 2023. Eli Lilly also expects a data readout from the pivotal phase III TRAILBLAZER-ALZ 2 by mid-2023. If positive, the data will form the basis of its application for traditional regulatory approval for donanemab.

Last month, Roche RHHBY announced the failure of the GRADUATE I and II studies, evaluating its monoclonal antibody gantenerumab in early AD. The studies failed to meet their primary endpoint of slowing clinical decline. Patients treated with Roche’s gantenerumab showed a slowdown of clinical decline in GRADUATE I and GRADUATE II, which was not statistically significant. Per Roche, the level of beta-amyloid removal was lower than expected.

Anavex Life Sciences Corp. Price

Anavex Life Sciences Corp. Price
Anavex Life Sciences Corp. Price

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Corporate landlords are gobbling up mobile home parks and rapidly driving up rents

MoneyWise

Corporate landlords are gobbling up mobile home parks and rapidly driving up rents — here’s why the space is so attractive to them

Vishesh Raisinghani – December 5, 2022

Corporate landlords are gobbling up mobile home parks and rapidly driving up rents — here’s why the space is so attractive to them
Corporate landlords are gobbling up mobile home parks and rapidly driving up rents — here’s why the space is so attractive to them

The hunt for yield has pushed private equity firms and professional investors into new segments of the real estate market.

In recent years, sophisticated investors have snapped up multi-family units and single-family homes. Now, corporate landlords are targeting the most cost-effective segment of the real estate market: mobile home parks

The most affordable U.S. housing option

Manufactured homes or mobile homes are considered the most affordable non-subsidized housing option in America. That’s because the owners own only the prefabricated unit and not the land under the home. The land is usually leased from the landlord of a trailer park.

The average monthly rent for a mobile home in 2021 was $593. That’s significantly lower than the average one-bedroom condo rental rate of $1,450. The mobile park rental also often includes utilities and insurance.

Rents typically rise 4% to 6% annually and renters have the flexibility to move their housing unit to another park. These factors make the manufactured home highly attractive to low-income households.

As of 2020, nearly 22 million Americans lived in mobile homes. That’s 6.7% of the total population or about one in 15 people across the country. However, the economic inefficiencies that make these manufactured homes affordable also make them attractive to professional investors.

Investing in mobile home parks

Factors such as below-market rents and disrepair make mobile home parks attractive for investors seeking to add value. The typical mobile home park lot costs $10,000, which means 80 lots would be worth $800,000 on average.

Put simply, the entry price for these parks is much lower than multi-family apartments and condo buildings across the country.

Professional investors can also raise rents significantly to improve the valuation of the property. Attracting tenants with higher incomes or improving the park’s amenities and infrastructure are other value-add strategies that make this asset class appealing.

The fact that moving a typical mobile home costs between $3,000 to $10,000 also means that most tenants are unable to afford the move. This gives landlords immense pricing power.

Meanwhile, the yield is much higher. The capitalization rate (the ratio of net operating income to market price) could be as high as 9%, according to real estate partners Dave Reynolds and Frank Rolfe, who together are the fifth-largest owner of mobile home parks in the U.S.

The largest mobile park landlord is real estate veteran Sam Zell. Zell’s Equity LifeStyle Properties (ELS) owns 165,000 units across the country and the asset is a key element of his $5.4 billion fortune.

In recent years, larger investors such as Singapore’s sovereign wealth fund GIC and private equity firms such as The Carlyle Group, Brookfield, Blackstone, and Apollo have also added exposure to this asset class.

Even Warren Buffett is involved. His firm’s subsidiary, Clayton Homes, is the largest manufacturer of mobile homes in the U.S., and also operates two of the biggest mobile home lenders, 21st Mortgage Corp. and Vanderbilt Mortgage.

You can invest too

Retail investors looking for exposure to mobile home parks have plenty of options. Acquiring a park is, perhaps, the most straightforward way to access this asset class. However, publicly-listed stocks and real estate investment trusts offer exposure too.

Sam Zell’s Equity LifeStyle Properties is listed on the New York Stock Exchange under the ticker ELS. Sun Communities Inc. (SUI) owns 146,000 units across the U.S. and some in Canada, while Legacy Housing Corp. (LEGH) builds, sells, and finances manufactured homes.

Retail and institutional investors could see more upside from this segment as the economic inefficiencies are ironed out.

How much do you need to earn annually to afford a house in Los Angeles?

Los Angeles Times

How much do you need to earn annually to afford a house in Los Angeles?

Salvador Hernandez – December 1, 2022

MISSION HILLS, CA - October 11, 2022 - A home for sale in the Mission Hills area of Los Angeles Tuesday, Oct. 11, 2022 in Mission Hills, CA.(Brian van der Brug / Los Angeles Times)
A home for sale in the Mission Hills area of Los Angeles on Oct. 11. (Brian van der Brug / Los Angeles Times)

The annual income needed to buy a home in Los Angeles skyrocketed past $220,000, a recent study found, with higher mortgage rates and inflation cutting deeper into household incomes.

That means the ability to own a home is a goal inching further and further away from more families and households in Los Angeles, where the median annual household income in 2020 was just over $65,000.

According to the residential real estate firm Redfin, the yearly salary needed now to buy a median-priced home in the city and comfortably make the mortgage payment is now $221,592, up nearly 41% from last year.

In Los Angeles, the high cost of housing has also played a role in making it the most overcrowded large U.S. county.

Across the U.S., home buyers need to earn $107,281 a year, or 45.6% more, in 2022 compared with the previous year to buy a typical home, the study conducted by Redfin found.

Rising mortgage rates are the leading factor for the higher housing cost, according to the study, which found that from February 2020 to October 2022, the monthly payment for a family buying a median-priced home increased about 70%.

Home prices have also remained relatively steady, meaning that those who can still afford a home need to readjust their budgets, while others have been priced out.

“High rates are making buyers rethink their priorities, as many of them can no longer afford the home they want in the location they want,” said Chelsea Traylor, a Redfin agent.

The biggest spike has been in Florida, where the average mortgage payment increased more than 73% in North Port, where an annual salary of $131,535 is now needed to afford a home. The salary needed to buy a median home increased to $128,892 in Miami as well, a rise of more than 63% in a single year.

In 93 metro areas analyzed by Redfin, the agency found all of them needed at least a 30% salary increase to buy a median-priced home. Prospective home buyers in at least half those areas needed to make a minimum of $100,000 a year.

Redfin’s study compared median monthly mortgage payments in October 2022 and October 2021, and considered an affordable monthly payment to be no more than 30% of the home buyer’s income.

The study also found that although some areas in California — like the Bay Area — had “smaller-than-average” increases in income requirements, the state is still home to five of the most expensive places to own a home.

In San Francisco, the salary needed to buy a median-priced home soared to more than $402,000 and, in San Jose, a salary of more than $363,000 was needed to make the monthly mortgage payments. In Anaheim, home buyers needed about $254,000 a year, followed by Oakland, with a required salary of $247,559, and Los Angeles.