Saturday, February 21, 2009

Banks Overcharged $78 Billion to US Treasury under TARP in 2008

The Troubled Asset Relief Program (TARP) was launched in 2008, by President George W. Bush in response to the alarming slowdown in global capital markets, which was triggered by a housing slump that undermined mortgage-backed bonds carried on the books of major financial institutions.

Congress had approved the $700 billion program in 2008, after the then Secretary of Treasury Henry Paulson said it would be used to buy broken bonds and clean off banks' balance sheets. Shortly after the Congressional approval, Mr. Paulson changed the focus to buying preferred shares in banks in late 2008.

According to the testimony, despite the assurances of then-Secretary Henry Paulson, who said that the transactions were at par...  The valuation study concludes that Treasury paid substantially more for the assets it purchased under the Troubled Asset Relief Program (TARP) than their then-current market value," Harvard Law School professor Elizabeth Warren told the U.S. Senate Banking Committee on Feb. 5, Thursday.

On Feb.5, 2009, Harvard law professor, Elizabeth Warren testified in Congress that her group estimated the Treasury paid $254 billion in 2008 in return for stocks and warrants worth about $176 billion under the Troubled Asset Relief Program (TARP).

The U.S. Department of Treasury under the direction of then Secretary Paulson had overpaid financial institutions to the tune of $78 billion in carrying out capital injections last year, 2008. The head of a congressional oversight panel for the government's $700 billion bail-out program told Congress on Feb.5, Thursday.

"Treasury simply did not do what it said it was doing ... They described the program one way, and they priced it another," Ms. Warren said at a hearing before the Senate Banking Committee. She added that Mr. Paulson "was not entirely candid" in describing TARP's bank capital injection program.

When extrapolating the data, it shows the capital injections made by Treasury in 2008 suggests that the government received $176 billion in preferred stock and warrants for investments totaling $254 billion, a shortfall of $78 billion.

An analysis of the testimony indicated that the ten largest TARP investments made by Treasury in 2008, not including investments in the U.S. auto industry, found that for ever $100 spent, they received preferred stock and warrants worth approximately $66.

In other words, the United States government will be receiving $.66 in return for each dollar given to these investment banks and companies in 2008.

On a 'brighter' note, according to the Washington Post on Feb.5, the panel's findings do not necessarily suggest that the government has truly lost $78 billion, but that these banks are still required to repay the amount invested by the government plus interest.

The caveat of this interpretation is that since the actual market value is much lower, it is entirely possible that these banks or companies will end up defaulting on their obligations to the government, or rather the taxpayers.

The panel's findings do not imply that the government has lost money on the investment because companies are still required to repay the amount invested plus interest. The lower market value determined by the panel reflects the risk that companies will default on those obligations. The panel found that a private investor would have charged significantly more to invest the same amount in the companies because of the greater risk and that the government did not charge this premium. 

United States Senate Banking Chairman Christopher Dodd, (D-Conn.),Senator Sherrod Brown (D-OH), and other members of the Senate Banking Committee were not at all pleased with the news nor were they pleased with the ensuing testimony by Mr. Neil Barofsky, the Office of the Special Inspector General, appointed by President George W. Bush.

For viewing from the U.S. Senate Banking video archive here.

On the same day, the United States Senate Committee on Finance also heard another troubling testimony from Mr. Neil Barofsky, the Office of the Special Inspector General, a watchdog group to oversee the TARP program has released its findings on Feb. 6.

The full text of SIGTARP is available for readers to read.

This writer suggests that readers might focus on Sections 1 to 3; and Section 4 provides recommendations to Treasury, going forward in 2009.

Portrait of Five Middle Class Americans who Voted for President Obama

The campaign, the election, and the inauguration of President Barack Obama have affected most Americans in personal and unique ways. Each of the following five Americans have taken their time to share their personal thoughts on the Obama Presidency and the economy.

It is a privilege for this writer to listen to, and read each of the interviewees' unique responses who have given me permission to share their opinions with the public. My original intention was to write a piece based on my interviews with these Americans, but as it turned out, their answers were compellingly thoughtful that deserved to be treated as an individual portrait of an American in her/his own voice.

In our daily experiences, each of us would have met or at least, known someone whose background would mirror these Americans. This writer is grateful for these individuals' time and candid opinions. The responses reflect these five voters' thoughts and the writing is my responsibility, if there are any inaccuracies, they would be my error. 

The group included two first-time voters among the five voters. All voted for President Obama. All five are college educated or in colleges, and they uniformly considered themselves middle class. The three college students work to supplement their student loans and modest assistance from their parents. The two remaining women consisted of a supervisor and an office administrator.

The age ranges from 20 to 50 years old. They are Americans of African, English-Irish, Latino, and Vietnamese heritage.  

These are the questions posed to each person:
1) Describe your expectations of the Obama Presidency.
2) What are your thoughts on President Obama's economic plan?
3) How do you think the President's plan to address the middle-class will help you and your family?

Mr. Michael Allsop, Jr.

24 years old

City College of New York , New York

I was really excited about attending the swearing-in ceremony. I feel blessed to have had the opportunity to attend inauguration and to be a part of changes in our country. This was the first time I was ever interested in a presidential race and inauguration. I also feel blessed to witness history in the making because someday, I can tell my children and their children about my being a part of an American historic time. There were people from everywhere around the country and even from other countries who came to celebrate the inauguration.

I believe our country will have a great future. We now have a President who has intelligence, integrity, and who has the right priority, the American people. I just hope that people in our country will give him the chance to right the wrongs of our country. They need to understand that changes take time and that nothing changes over night, especially the bad economy, job losses, and costs are rising.

My family is middle class and everyone works hard to budget our expenses since the cost of living keeps going up. I like the idea that President Obama is focusing on helping the middle class in his economic stimulus plan. I don't remember other Presidents paying attention to the middle class after their elections. I'm impressed that President Obama has already proposed an economic plan to strengthen the middle class, and it's not even a month yet.

I think the economy will stay the same for awhile. Jobs need to be created instead of the current rise in job losses that happened this week. I expect that in time, life for the middle class will improve because of the tax program that President Obama proposed.

Personally, I am doing all I can to budget, as I work as a technologist while going to school for my Engineering degree at City College. The experience has been challenging for me, but I'm developing hands-on computer skills while attending school to develop technical knowledge in engineering. I'd also like to see the standard of living for the middle class improves.

The Obama presidency inspires me to set my sight much higher because I see all kinds of possibilities for myself. When I was young, I used to think that I'd like to run for a public office, but as I became older, I realized that Engineering suited me better, and the idea of running for a public office would have to wait. Now, as I have witnessed the inauguration of President Obama and the changes in the American public, I think that the idea of public office might be a possibility.

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Mr. Lucas Rodriguez

22 years old, first-time voter

William Patterson University, New Jersey

It was a privilege for me to be a first-time voter and to witness the inauguration of President Obama. My general opinions about President Obama is that he comes across sincerely interested in the American public. Our country is experiencing a bad economy that keeps getting worse. I like that President Obama is focusing on the middle class when he releases an economic plan for the middle class, this week.

Presently, I work part-time while going to college. My parents work hard to provide for their children and to make sure that we go to colleges. I think President Obama will be able to improve the economy besides changing the way big business are run in this country.

It's good that the President is concentrating on rebuilding our country and creating more jobs. It's important that President Obama is paying attention to people like my parents and me because the middle class is struggling to make ends meet. I think President Obama will succeed in the long run, but our country is going to struggle economically for awhile.

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Ms. Gigi Nguyen

23 years old, first-time voter

Fashion Institute of Technology, SUNY, New York


I'm from Springfield, Massachusetts. I voted for the first time because I was excited about the changes that President Obama promised that he would bring to Washington D.C. I want to be able to get a job that pays enough for me to pay down my student loans, and that President Obama will bring the troop home from Iraq.

I work part-time while going to school and as an out-of-state student, my tuition is high. I also have several student loans to think about after I graduate. My family is definitely middle class and my parents work hard to provide for their children, including me.

I think the Bush administration had the past four years to correct the mistakes of the first four years, but they didn't, so I decided to vote for a different administration. I like how President Obama has involved young people like me in the campaign, after the election, and now as President, he has encouraged us to give back to the community.

I want to succeed in my career as a fashion designer; and I'd really like to give back to my community through services. I'm Vietnamese, and my community needs to get more involved in politics, voting, and election because we don't have any say right now.

I know the economy is bad right now, and I am worried about getting a job in my industry because it's a very competitive field. But, I also expect that President Obama will solve the economic problems in America as his priority instead of solving Iraqi's problems.

I like his new middle class initiatives because it means he is listening to us, Americans. I think the tax cut for the middle class will help my parents and that's good.

I was really excited about the inauguration because it was historic for me since I voted for the first time. It's historical because Mr. Obama is the first African American to become an American President. I think it gives young minorities like me, a chance to fully appreciate the possibilities for each of us in America to reach our goals, whatever they are, as long as we work hard, aim high and keep going forward.

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Ms. Amanda Elliot - early 30's

Office Administrator

New York, New York

I am thrilled that Mr. Obama was elected as President of the United States. Admittedly, it was a difficult decision for me during the primary between choosing to back Hillary Clinton or Barack Obama, but when he won the primary, I was ready to support his presidential candidacy.

I have high hopes for the Obama's presidency - I believe that, while he may be a little short on experience, he is full of enthusiasm and he has surrounded himself with people who can and will give him the best advices. I like his optimistic view of the U.S.'s future and his promises to do the best for the country.

I am concerned that many people have pinned too many high hopes on President Obama that are unrealistic and that the public is not always patient. Since President Obama ran and won on the idea of changes, which appealed to most citizens.

I think President Obama needs to succeed in his economic plan to help boost the middle class. The middle class is the most neglected group of people in our country, politicians talk about us, but they have never fully address the issue head on like President Obama. I'd like to be able to earn enough to save something extra, but with the costs of everything going up, I have been spending more time trying to find ways to economize and balance my own budget.

Overall, I believe that President Obama has good strategies for our country: economically, politically, internationally. I believe he will get us out of the quagmire that is Iraq and will be able to help negotiate for peace between Israel and Palestine.
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I think it's fantastic that an African American made it into the White House, but more particularly that President Barack Obama because he's smart, savvy, charismatic, and seems to know how to get things done without playing politics, as it were. I expect to see good things happening during his presidency. I don't want to sound pessimistic, but being a true New Yorker, I worry and have my fingers and toes crossed that it's not a one-term presidency.

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Ms. Michele Barbel - early 50's

Supervisor

Spring Valley, New York

I feel honored as an American citizen under President Obama. In candor, I never thought that I would see an African American President in my lifetime. I am especially happy that the presidency goes to the person whom I think is best suited for the job, regardless of his ethnicity. I'm a firm believer that anything is possible and knew that it was only a matter of time before a minority was elected to the office of the president – I just never thought it would be in my lifetime.

You see, as a child growing up in Saint Thomas, VI, I never realized that there was a difference between black and white. I've always just viewed people as "just people" –race, creed, or color was never a factor for me.

It wasn't until we moved to New York that I realized that there was a definite distinction between black and white or any other nationality for that matter. My sisters and I learned the hard way.

In 1963, while my mother was visiting my dying grandmother, her mother, in a Manhattan hospital my mother told us to play in the park across from the hospital because we were too young to visit my grandmother at the time. While we were playing, a group of white male teenagers came up to us and started chasing us shouting "N-----s." We never even knew what the word meant but we ran for our lives. When my mother returned to the park she found us scared and in tears, this was something we were not use to. We asked her a lot of questions from what was a "N-----" and why those boys didn't like us. We had never been subjected to anything like that before. That was my first taste of bigotry, but there would be other incidents. Incidents that would "almost" make me think that I was less of a person than what I was.

As I got older, I would reflect back on that incident and it would make me angry, but also made me more determined to be the best that I could be. I've always believed that no one race was better than any other race, and people should be judged by their character, and not by the color of their skin. Now, I believe that day has finally come because of President Barack Obama.

To tell you the truth, every fiber of my being tells me that he is a special person, almost as if he is ordained and he will make a difference. The time is now for America to change and move forward. It won't be easy because our country is suffering economically and people are not patient for answers.

I expect President Obama to take our nation in a whole new direction. I want him to really effect the change that he spoke of in his campaign speeches. I expect him to serve all Americans, not any special interest groups. I know that he is inheriting a multitude of problems such as our declining economy. Some of these problems are based on bad decisions from President George W. Bush.

I would like to see him cut taxes for middle class people such as myself. I want President Obama to address health care reform. Having been hospitalized 5 times within the last 5 months, I realize more than ever the need for health care reform. I know President Obama is not a miracle worker, and not every issue will be resolved, at least not in one term, but I expect him to try to address these issues that affect most Americans. He will have a tough 4 years ahead and I expect Congress to cooperate with his economic stimulus plans.

I want to wish Good Luck to President Obama, we're behind you.

This blogger thanks each of these men and women for sharing their thoughts and expectations with me.

Saturday, January 24, 2009

Happy Ox-picious Lunar New Year - Chuc Mung Tet 2009

The Empire State Building in New York is lit up in red and yellow to usher in the Year of the Ox, the lunar new year that is celebrated by Vietnamese, Chinese, and Korean people around the world.

The special lighting will run from Friday evening to Monday night, Jan. 23 - 26.

It is an Ox-picious year to welcome the new president for Americans.

The new year marks the Year of the Ox, a symbol of prosperity, fortitude, harmony and hard work. It is one of 12 animals in the Chinese zodiac.

The large Vietnamese community in California and Texas marks this annual celebration with parades and traditional dragon dances to share with all celebrants.

New York Chinatown marks the event with traditional lion and dragon dance. According to legend, the lion is a symbol of power, majesty, and courage, capable of warding off evil spirits.

Since the lion is the ninth son of the dragon and believed to be the best guard, which perhaps will explain why lions are seen in front of royal palaces in ancient time, and in modern time, buildings, offices, and residences.

To Vietnamese readers around the world, Chuc Mung Tet (Happy New Year), and warm greetings to those Vietnamese who were once stateless refugees and were recently granted entry into Canada, Chao Cac Bang va Chuc Mung Tet (Greeting and Happy New Year), and to others, Happy Lunar New Year from this blogger.

Sunday, January 18, 2009

Presidential Inauguration Schedule 2009

According to previously released statements issued by the Department of United States Homeland (DHS), the current US Secretary, Michael Chertoff has designated the 2009 Presidential Inauguration a National Special Security Event (NSSE) on Oct. 20, 2008, although cooperative planning for the event has begun as early as July 2008.

The Secret Service assumes its mandated role as the lead agency for the design and implementation of the operational security plan for any NSSE.

The preparation for an event of this magnitude requires joint cooperative efforts across multiple agencies and states. No single entity can implement necessary security measures on its own. At present, 58 Federal, military, state and city law enforcement and public safety agencies are working together to ensure a safe and smooth event.

The Federal government participants included representatives from the Secret Service, Federal Emergency Management Agency, departments of Health and Human Services and Defense, Federal Bureau of Investigation, Park Police, Capitol Police, General Services Administration, and Smithsonian Institution.

The Smithsonian Institution is an official partner with the 2009 Presidential Inauguration.

While the American people were busy preparing for the annual holiday season, the current Secretary Michael Chertoff, District of Columbia Mayor Adrian M. Fenty, Maryland Governor Martin O’Malley and Virginia Governor Timothy M. Kaine met on Dec.23, 2008 at Secret Service headquarters to finalize security planning and implementation for the 56th Presidential Inauguration.

The District of Columbia representatives participated from the Homeland Security Emergency Management Agency, Metropolitan Police Department, District of Columbia Fire Department and Washington Metropolitan Area Transit Authority.

Maryland and Virginia State Police and respective state Department of Transportation officials also took part in the discussion.

The Presidential Inauguration Committee (PIC2009) has also released a preliminary schedule that consistently reflects Mr. Obama's message of commitment to hold an inauguration that is open and accessible to the public.
The official theme for the Inauguration of President-elect Barack Obama, “Renewing America’s Promise", a vision that underscores the President-elect and Vice President-elect’s commitment to restoring opportunity and possibility for all and re-establishing America’s standing as a beacon of hope around the world.


Presidential Inauguration 2009 Schedule
The inaugural celebration will begin in Philadelphia, the city where America's democracy was born and when the promise of the country was realized.

On Saturday, Jan. 17, President-elect Barack Obama will be holding an event in Philadelphia before boarding a train bound with invited guests for the nation’s capital. He will be picking up Vice President-elect Joe Biden and his family in Wilmington, DE, following with a stop for an event in Baltimore, MD, before arriving to Washington, D.C. in the afternoon.

In addition to those stops, the train will also “slow roll” through Claymont, Delaware, and Edgewood, Maryland, so that more Americans will have the opportunity to witness the President-elect and Vice President-elect make their way to Washington, D.C.

The following events will take place in the nation’s capital from Sunday, Jan.18 to Wednesday, Jan. 21, 2009:Sunday, January 18.

President-elect Barack Obama will kick off the schedule of official inaugural activities in Washington, D.C., with a welcome event on the steps of the Lincoln Memorial on Sunday afternoon.

The Lincoln Memorial is dedicated to the memory of America's 16th President, the Lincoln Memorial has been the site of many Presidential Inauguration activities in recent years.
The event will be free and open to the public. Americans across the country can watch the concert, which will be aired on HBO on an open air signal and on its website, hbo.com

Monday, January 19 - Martin Luther King, Jr. Day.

In 1994, to further commemorate a man who lived his life in service to others, Congress transformed the Martin Luther King, Jr. holiday into a national day of community service. To honor Dr. King’s legacy, the President-elect and Vice President-elect and their families will join Americans in communities all across the country, by participating in activities dedicated to serving others in communities across the Washington, D.C. area.

On the eve of the Inauguration, Jan.19, there will be Bipartisan Dinners to honor 3 honorees from both parties, Democrat and Republican. There is a youth concert to honor military families and children at the Verizon Center in downtown Washington, D.C. The concert is free of charge, but tickets are required.

Tuesday, January 20 - Inauguration Day

The President-elect and Vice President-elect and their families will participate in the traditional inaugural ceremonies and events. For the first time ever, as reported by this writer in an external site, the National Mall will be open to those wishing to attend the swearing-in ceremony.

The Inaugural Ceremonies will start at 10 AM on the west front of the U.S. Capitol and will include:
  • Musical Selections: The United States Marine Band, followed by The San Francisco Boys Chorus and the San Francisco Girls Chorus
  • Call to Order and Welcoming Remarks: Senator Dianne Feinstein (D) California
  • Invocation: Dr. Rick Warren
  • Musical Selection: Ms. Aretha Franklin
  • Vice President-elect Joseph R. Biden, Jr. will be sworn into office by Associate Justice of the Supreme Court, the Honorable John Paul Stevens.
  • Musical Selection: Mr. John Williams, composer/arranger with Mr. Itzhak Perlman - violin, Mr. Yo-Yo Ma - cello, Ms. Gabriela Montero - piano, and Mr. Anthony McGill - clarinet.
  • President-elect Barack H. Obama will take the Oath of Office, using President Lincoln’s Inaugural Bible, administered by the Chief Justice of the United States, the Honorable John G. Roberts, Jr.
  • Inaugural Address
  • Poem: Ms. Elizabeth Alexander
  • Benediction: The Reverend Dr. Joseph E. Lowery
  • The National Anthem: The United States Navy Band “Sea Chanters”
After President Obama gives his Inaugural Address, he will escort the outgoing 43rd President of the United States, George W. Bush to a departure ceremony before attending a luncheon in the Capitol’s Statuary Hall.

The 56th Inaugural Parade will make its way down Pennsylvania Avenue from the Capitol to the White House with groups traveling from all over the country to participate in the historic event.In the evening, the Presidential Inaugural Committee will host ten official Inaugural Balls including the Commander-in-Chief's Inaugural Ball as reported by this writer on an external site.

Wednesday, January 21

The President and Vice President of the United States will be participating in a National Prayer Service.

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Additional Inauguration-related articles provided by this writer on an external site:

  1. Yo Yo Ma and Friends' Musical Ode to Honor Obama
  2. Obama-Biden Whistle Stop Train Tour to Washington D.C.
  3. Lincoln Memorial Celebration - Preliminary Program
  4. Pre-Inauguration Lineups: Bipartisan Dinners; Children's Concert
  5. The Smithsonian Acquires Barack Obama's Image
  6. Techno-Access to Presidential Inauguration 2009
  7. The Commander-in-Chief's Inaugural Ball
  8. National Mall Welcomes the Public
  9. Unofficial Presidential Inaugural Balls
  10. The First Interview after the Election

External Resources:

Wednesday, December 24, 2008

Merry Christmas and Happy Holidays

I'd like to extend warm holiday and Christmas wishes to all who have stopped by for a read.   





 

Sunday, November 30, 2008

Visual Perceptions of the Arctic and Antarctica

This is the second installment of the Arctic and Antarctic series, which covered the Gender on Ice conference that was held at Barnard College on Nov. 21.

Life in the Arctic and Antarctic is far more complicated and challenging to these contributors, not to mention, the extreme weather condition, yet these photographers, scientists, writers, filmmakers, and artists seem to have been inspired by the harsh environment and climate.

The gallery of photographs and audio-visual works were beautiful, imaginative, and at times, humorous. Each photographer told her/his story about the Arctic and Antarctic.

Their works reflect their personal views and artistic concepts. More importantly, they are passionate about the preservation of the two Poles. The shrinking ice has spurred tourist boats that continually pose grave danger to the eco-systems, indigenous people, and a plethora of species.

The list of international and American artists, scientists, and writers who have contributed to this conference was impressively long. Out of the 26 contributors, 13 contributors and their images were selected to be included in this article. The details of each contributor are longer than the following minimal descriptions.

1. Anne Aghion is an Emmy award winner and recipient of the prestigious Guggenheim Fellowship. Her most recent documentary, Ice People, follows geologists from North Dakota State University as they search for fossils in Antarctica. She’s a graduate of Barnard College.

2. Subhankar Banerjee is an Indian-born artist-activist, uses photography to raise awareness about the rights of indigenous peoples and land conservation issues in the Arctic. His Arctic works have been shown in 40 group and solo exhibitions in the US and Europe.

3. Joyce Campbell is an interdisciplinary artist who traveled to Antarctica in 2006 with the Artists to Antarctica program sponsored by Creative New Zealand and Antarctica New Zealand.

4. Andrea Juan is from Argentina, works with photography, digital video, graphic art, and installation. She has traveled to Antarctica four times to develop her Antarctica Project as a Guggenheim Memorial Foundation Fellow.

5. Isaac Julien is a visiting lecturer at Harvard University School of Afro-American and Visual Environmental Studies. His latest film, Derek, a biopic of Derek Jarman, starring Tilda Swinton won high praise at the Sundance Film Festival.

6. An-My Le is an assistant professor of photography at Bard College. She is a former Vietnamese political refugee to the US. She traveled to Antarctica under a National Science Foundation grant in 2008.

7. Jane Marsching is a digital media artist. Her current project is Artic Listening Post explores past, present and future human impact on the Arctic environment.

8. Paul Miller (DJ Spooky) is a prolific composer, multimedia artist, and writer. His media works appeared in the Whitney Biennal, Venice Biennal, the Andy Warhol Museum, the Ludwig Museum, Germany, and numerous other museums and galleries. His poster features his latest multimedia works.

9. Anne Noble is a photographer from New Zealand. She has visited the Antarctica twice, the first time as an Antarctica Arts Fellow in 2002.

10. Andrea Polli is a digital media artist. She has spent two months in Antarctica on a National Science Foundation Artist Residency to follow weather and climate scientist in the Dry Valleys, at the South Pole.

11. Annie Pootoogook is a third generation Inuit artist. Both her mother and grandmother were accomplished graphic artists. She draws on personal experience to guide her artwork reflecting her life and broader Inuit life in Cape Dorset, Nuvanut, Canada.

12. Connie Samaras was awarded a National Science Foundation Artists and Writers Grant to photograph built environments at the South Pole, Antarctica. She is currently a professor of Studio Art at the University of California, Irvine.

13. Marina Zurlow is a professor at NYU Interactive Telecommunications Program. She focuses on narrative exploration of how humans relate to plants, animals, and the weather.

In honor of the International Polar Year, the US National Science Foundation also provided polar scientists cameras and tools to document their experiences and blogs on Ice Stories. It is a wonderfully informative and fun website.