Tuesday, June 19, 2007
A park in the U.S. state of Wisconsin has been closed, due to being over-run by gypsy moth caterpillars.
The Wisconsin Department of Natural Resources (DNR) announced the unprecedented move yesterday, with officials saying they would temporarily close Rocky Arbor State Park near Wisconsin Dells due to an infestation of gypsy moth larvae.
The larvae are present at the park in such large numbers that, according to a report by the Wisconsin State Journal, camping there would “apparently be a squishy, nightmarish experience.”
Mark Guthmiller, DNR gypsy moth suppression coordinator said that “there are also health and safety considerations that prompted our action,” explaining that there was a significant risk of people having severe allergic reactions to the caterpillars. There were also concerns that the caterpillars might be accidentally transported out of the park on park user’s vehicles to areas where the moths have as yet failed to establish themselves. Guthmiller also commented that related sanitation issues” would also “significantly detract from the quality park camping experience.”
Andrea Diss-Torrance, another gypsy moth coordinator for the DNR, said of the infestation: “It’s very severe – it’s as severe as I have ever seen.”
The closure, which will run until at least June 27, is thought to affect around 95 campground reservations at the site, which covers 255 acres. State officials have been attempting to arrange alternatives for campers at nearby parks, or, failing this being acceptable, are offering refunds. The park will be closed until after the caterpillars have completed pupation – the period in their life cycle in which they transform into moths.
The gypsy moth is a pest in the U.S., having been introduced in the 19th-century in a failed attempt to to try to breed a hardy variant of silkworm. The moths can strip the leaves off at least 250 different tree species, and as they lack natural predators in the U.S., cause significant damage. The moths often chew leaves but don’t actually eat them, thus increasing the potential damage.
At Rocky Arbor, they have already stripped all the trees in some areas of the park. The caterpillars can kill trees directly, but more usually weaken them so that they are more susceptible to die from other causes, such as disease.
Wednesday, September 17, 2008
The Federal Reserve took over American International Group (AIG) on Tuesday in an US$85 billion loan, in exchange for a 79.9% stake in the company.
A press release issued Tuesday stated that “the Board determined that, in current circumstances, a disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth, and materially weaker economic performance.”
The deal allows AIG to draw up to US$85 billion in loans over the next 24 months to shore up the orderly sale of various divisions of the company without further interruption to the economy. In exchange, the Federal Reserve will have a 79.9% equity stake, primarily in the form of equity participation notes. The loan carries an interest rate of LIBOR plus 850 points. Should AIG fail, the loan is covered completely by company assets. Should AIG recover however, taxpayers could potentially recover large profits.
This news comes on the heels of the Federal Reserve refusing to bail out Lehman Brothers, forcing the company to file for bankruptcy on Monday after Bank of America(BoA) and Barclays PLC pulled out of negotiations over the weekend. The fact that AIG has thousands of divisions engaged in business across the globe sets them apart from the recent problems with other banks. AIG was built up over the last several years via the buyouts and mergers of many companies around the world, offering AIG’s stockholders a diverse base of income which allowed it to steadily increase profits.
It is this interconnectedness that had the Federal Reserve worried. Should AIG collapse, it could set off a global chain reaction in multiple markets. In an interview with the New York Times, former Treasury official Roger Altman said, “It’s the interconnectedness and the fear of the unknown. The prospect of the world’s largest insurer failing, together with the interconnectedness and the uncertainty about the collateral damage — that’s why it’s scaring people so much.”
While AIG, like many other banks, found itself embroiled in the middle of the sub-mortgage lending crisis, AIG has also been struggling to deal with controversies in other complex financial instruments such as credit default swaps. These markets have been exploding for several years, but due to lack of regulation by the government, recent reversals have seen AIG’s stock value tumble by over 90 percent in the last year.