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The Obama administration is engineering its new bailout initiatives in a way that it believes will allow firms benefiting from the programs to avoid restrictions imposed by Congress, including limits on lavish executive pay, according to government officials.
Administration officials have concluded that this approach is vital for persuading firms to participate in programs funded by the $700 billion financial rescue package.
Bank bailout cost nearly doubles, agency says | MSNBC
Congressional Budget Office: Taxpayers will pay $1.67 billion more
Bailing out the financial sector will cost taxpayers $167 billion more than originally anticipated, according to a Congressional Budget Office estimate.
The original figure in January was $189 billion, but it is now $356 billion — $152 billion more for 2009 and $15 billion more next year, the CBO says in its March report updating the budget and economic outlook.
The CBO raised its projection because yields have increased on securities issued by the bailed-out financial institutions under the $700 billion Troubled Asset Relief Program.
That means there will be an increase in the cost of the subsidy from the U.S. Treasury's purchase of preferred stock, asset guarantees and loans to automakers, the CBO said.
The Smooth Criminal Transition from Bush/Cheney to Obama
Corrupt new administration deepens and expands systemic criminalization and war agenda
by Larry Chin | Global Researcher.CA
To sober, clear-eyed observers of history and political deception, the ascension of Barack Obama held the promise for unprecedented new dangers: a revitalized New World Order, led by the Anglo-American empire’s neoliberal criminal faction and an iconic, deceptive new facilitator; and a continuation of Bush/Cheney criminality and war, under smarter and much more effective management.
Now, just months into their tenure, the Barack Obama administration has more than fulfilled the promises he made to his elite constituency, deepening the mass destruction of Bush/Cheney, while charming its victims all over the world into enjoying their own demise.
View the show here.
BILL MOYERS: Yeah. Are you saying that Timothy Geithner, the Secretary of the Treasury, and others in the administration, with the banks, are engaged in a cover up to keep us from knowing what went wrong?
WILLIAM K. BLACK: Absolutely.
BILL MOYERS: You are....
...WILLIAM K. BLACK: I don't know whether we've lost our capability of outrage. Or whether the cover up has been so successful that people just don't have the facts to react to it.
BILL MOYERS: Who's going to get the facts?
WILLIAM K. BLACK: We need some chairmen or chairwomen--
BILL MOYERS: In Congress.
WILLIAM K. BLACK: --in Congress, to hold the necessary hearings. And we can blast this out. But if you leave the failed CEOs in place, it isn't just that they're terrible business people, though they are. It isn't just that they lack integrity, though they do. Because they were engaged in these frauds. But they're not going to disclose the truth about the assets.
The Council on Foreign Relations, often described as the "real state department", has launched an initiative to promote and implement a system of effective world governance.
Henry Kissinger, a CFR member, anticipates that President Obama will, "…give new impetus to American foreign policy partly because the reception of him is so extraordinary around the world. I think his task will be to develop an overall strategy for America in this period when, really, a new world order can be created. It’s a great opportunity, it isn’t just a crisis."
The "dirty little secret" that Geithner is going to great degrees to obscure from the public is very simple. There are only at most perhaps five US banks that are the source of the toxic poison causing such dislocation in the world financial system. What Geithner is desperately trying to protect is that reality. The heart of the present problem, and the reason ordinary loan losses are not the problem as in prior bank crises, is a variety of exotic financial derivatives, most especially credit default swaps....This is what must be put into bankruptcy receivership, or nationalization. Every hour the Obama administration delays that, and refuses to demand a full independent government audit of the true solvency or insolvency of these five or so banks, costs to the US and to the world economy will inevitably snowball as derivatives losses explode.
Barack Obama's chief economic adviser, Larry Summers, received hundreds of thousands of dollars in speaking fees last year from firms that have direct financial interests before the government or are intimately involved in the White House's bank relief programs.
The White House released late Friday the personal financial disclosure forms of many high-ranking administration officials. The document provided for Summers, who serves as one of the president's closest confidants, underscores just how close some of these officials are to the industry over which they now have oversight.
Among the firms that paid Summers large amounts in speaking fees include J.P. Morgan Chase. That bank offered the former Harvard president and Treasury Secretary $67,500 for a February 1, 2008 engagement. It has received $25 billion in government bailout funds.
Statement of SEIU President Andy Stern on Dr. Martin Luther King, Jr.’s Dedication to Working Families
"We must work unceasingly to uplift this nation that we love to a higher destiny, to a higher plateau of compassion, to a more noble expression of humanness”
— Dr. Martin Luther King, Jr.
"This weekend, we will remember the life and the dream of the Reverend Dr. Martin Luther King, Jr., and his dedication to uplifting all Americans seeking social justice and economic freedom.
Johann Hari: The protesters are the ones we should listen to at this summit | Independent UK
The way out of the credit and the climate crunch is the same - a Green New Deal
When this hinge-point in human history is remembered, there will be far more sympathy for the people who took to the streets and rioted than for the people who stayed silently in their homes. Two global crises have collided, and we have a chance here, now, to solve them both with one mighty heave – but our leaders are letting this opportunity for greatness leach away. The protesters here in London were trying to sound an alarm now, at five minutes to ecological midnight.
Many commentators seemed bemused that the protesters focused on the climate crunch as much as the credit crunch. What's it got to do with a G20 meeting on reviving the global economy? Why wave banners saying 'Nature Doesn't Do Bail-Outs' today? Because both crises have their roots in the same ideology – and both have the same solution.
For the past several years, I've been harboring a fantasy, a last political crusade for the baby-boom generation. We, who started on the path of righteousness, marching for civil rights and against the war in Vietnam, need to find an appropriately high-minded approach to life's exit ramp. In this case, I mean the high-minded part literally. And so, a deal: give us drugs, after a certain age — say, 80 — all drugs, any drugs we want. In return, we will give you our driver's licenses. (I mean, can you imagine how terrifying a nation of decrepit, solipsistic 90-year-old boomers behind the wheel would be?) We'll let you proceed with your lives — much of which will be spent paying for our retirement, in any case — without having to hear us complain about our every ache and reflux. We'll be too busy exploring altered states of consciousness. I even have a slogan for the campaign: "Tune in, turn on, drop dead."
A fantasy, I suppose. But, beneath the furious roil of the economic crisis, a national conversation has quietly begun about the irrationality of our drug laws. It is going on in state legislatures, like New York's, where the draconian Rockefeller drug laws are up for review; in other states, from California to Massachusetts, various forms of marijuana decriminalization are being enacted. And it has reached the floor of Congress, where Senators Jim Webb and Arlen Specter have proposed a major prison-reform package, which would directly address drug-sentencing policy. (See pictures of stoner cinema.)
Kucinich on Budget Resolution: I Simply Cannot Endorse a Budget or a Plan that Authorizes the Expansion of War
Congressman Dennis Kucinich (D-OH) today issued the following statement after voting against H.Con.Res 85, setting forth the Congressional Budget for the fiscal year 2010:
“I am committed to doing everything I can to put our community and our nation on the path to economic stability. I led opposition to the bank bailout program TARP, I worked vigorously in favor of the stimulus package, and I have worked to save the automotive, steel and aerospace industries in America.
Treasury Secretary Tim Geithner has called for "sweeping regulation" of the financial community, beginning a discussion of how we restructure the banking system—in and out of the shadows—as we emerge from what Robert Kuttner calls the Great Collapse. Literally trillions have already been committed in loans, guarantees, swaps, direct equity to stave off a complete financial collapse, even as the real economy declines.
But before we decide on the salvation, we need a public probe of the fall. What caused the Great Collapse? We need a grand inquest—either a special congressional committee or an independent commission like the 9/11 Commission armed with subpoena power—to expose misbegotten policies, malpractices, and mistaken ideas that allowed the wizards of Wall Street to transport us over the cliff.
The number of US workers filing new claims for unemployment benefits has surged to its highest level for more than 26 years, according to a government report.
Initial claims for unemployment insurance rose to 669,000 from 657,000 the previous week, the Labour Department said on Thursday, the highest number since October 1982.
The number of unemployed workers claiming benefits for more than a week ro
Just this week, on the front page of my hometown paper was the less-than-shocking news that, in our new economically wounded world, if your parents can pay the staggering tuition demanded by our top private colleges in full, you have a major leg up in the race to the college of your choice. New York Times reporter Kate Zernike quotes Robert A. Sevier, an "enrollment consultant to colleges," saying, "If you are a student of means or ability, or both, there has never been a better year." And as fans of my beloved Brooklyn Dodgers used to say in my childhood, "Wait till next year!"
Generals gathered in their masses
Just like witches at black masses
Evil minds that plot destruction
Sorcerers of deaths construction
In the fields the bodies burning
As the war machine keeps turning
Death and hatred to mankind
Poisoning their brainwashed minds, oh lord yeah!
Black Sabbath – War Pigs
You know civilization is in danger when I find more wisdom in the words of Ozzy Osbourne than in the words of any elected U.S. official. The U.S. war machine keeps turning. As we enforce our will on foreign countries, we produce more people who hate us. Just when you think the U.S. government is beginning to make sense by withdrawing troops from Iraq, they make the terrible decision to shuttle 21,000 more troops into the Afghan calamity. At a cost of $3.2 billion per month, we will throw another $38 billion down a rat hole in a country that has no vital strategic importance to the United States. Barack Obama is doing this to prove that he is a true statesman. The Soviet Union killed over 1 million Afghans, while driving another 5 million out of the country and left bankrupted and defeated after ten years. Young Americans will continue to die for who? for what? Our foreign policy during the last eight years can be summed up in one military term, SNAFU – Situation Normal All Fouled Up. These foreign interventions are a smoke screen for what is really going on in this country. When a government has unsolvable domestic problems, they try to distract the public by creating foreign conflicts. General Douglas MacArthur understood the danger.
“I am concerned for the security of our great Nation; not so much because of any threat from without, but because of the insidious forces working from within.”
A new Zogby Interactive poll shows support scraping bottom for giving federal money to shore up big banks. The survey of 4,112 adults completed last week found only 6% believe we should “continue providing government money to banks, as well as buying their troubled assets, with the hope that banks will increase lending” as the best option to take regarding failing big banks.
Slightly more than one-half (51%) oppose providing any more federal money to banks, “even if that means some of the banks would go out of business.” The third option we gave respondents was a temporary takeover of the most troubled banks, with the government eventually selling the banks back to private investors. Nearly one-third (32%) like that idea.
...Greider thinks, "People at large, I don't care whether they're middle class or upper class or working poor or union, non-union, have to find ways to come together themselves, perhaps in very small groups at first, and talk about their own stuff. Their experiences, their ideas their convictions, their aspirations for the country, themselves, their families, and then broaden out a bit, laterally. And have more people in the discussion. They don't have to become a giant organization, but they have to convince themselves that they're citizens..."That's kind of the mystery of democracy. People get power if they believe they're entitled to power."
Too Big to Fail or Too Dumb to Survive
By John Cooper
Unfortunately, the efforts to save weak banks by forcing them to merge with larger ones is worsening the "too big to fail" problem. Government agencies and policies failed to protect and in some cases contributed to the financial crisis. It is not clear that the reforms the Administration is requesting of Congress will be affective in preventing future crises.
Russian President Dmitry Medvedev urged international leaders on Tuesday to discuss the creation of a modern currency system, speaking ahead of a G20 meeting set to focus on a new financial architecture.
"The current system is not ideal," Medvedev said at a joint news conference with German Chancellor Angela Merkel in Berlin.
"We cannot develop in the next 10 years if we do not create a new infrastructure including new (currency) systems... We should think about creating a new currency system," he said.
Geithner’s ‘Dirty Little Secret’: The Entire Global Financial System is at Risk
When the Solution to the Financial Crisis becomes the Cause
by F. William Engdahl | GlobalResearch.ca
US Treasury Secretary Tim Geithner has unveiled his long-awaited plan to put the US banking system back in order. In doing so, he has refused to tell the ‘dirty little secret’ of the present financial crisis. By refusing to do so, he is trying to save de facto bankrupt US banks that threaten to bring the entire global system down in a new more devastating phase of wealth destruction.
April 3 March on Wall Street
WE NEED JOBS NOW!
MORATORIUM ON FORECLOSURES!
For march details, assembly points, etc., see: http://bailoutpeople.org/logistics.shtml
Why We Need a Bail Out the People Movement
The workers and poor are in the biggest economic crisis since the Depression of the 1930s.
Corporations are laying off while demanding deep concessions from those still employed. State and local governments are cutting jobs and slashing services. Health, schools, libraries, parks, mass transit—all are on the chopping block. Tuition and transit fares are being raised.
More than half a million jobs are being lost every month. Unemployment is the worst in more than 25 years. As bad as that is, joblessness for African Americans, especially the youth, is twice as high.
Millions of families have already lost their homes because of predatory lending and high unemployment. Millions more face foreclosure or eviction. Depression-style tent cities are growing.
By David Swanson
"Myth America: 10 Greatest Myths of the Robber Class and the Case for Revolution." That's the title of a booklet Cindy Sheehan is selling online. I know we have CNBC to set us straight on such things, but I thought I'd check out Cindy's take. Her full-length books have been terrific, and I've published 1,631 shorter articles by or about her, because Cindy is not just a grieving mother. She's a grieving mother who feels betrayed, is mad as hell, is uncorrupted by money, power, or party, would rather die than censor her statements, and gets straight to the heart of a question faster than anyone else I know.
Cassano, who lives in London, made more than $300 million running the infamous Financial Products Division of AIG where he, with about a dozen others, committed AIG to insure what turned out to be more than a trillion dollars worth of junk quality loans held by banks. "He is the golden boy of the casino," said Rep. Speier. "They basically took peoples' hard earned money and threw it away, gambled it and lost everything. And he must be held accountable for the fraud, for the dereliction of his duty, and for the havoc that he's wrought on America."..."This is the other very important issue underneath the AIG scandal," said Blum. "All of these contracts were moved offshore for the express purpose of getting out from under regulation and tax evasion."..."AIG was insuring junk and it was the AIG insurance that made the junk marketable," said tax law expert Jack Blum. "American taxpayers have been put on the hook for this insurance junk."
The FBI and federal prosecutors are reportedly closing in on the AIG executive whose suspect investments cost the insurance giant hundreds of billions of dollars. The government is investigating whether or not 54-year old Brooklyn-native Joseph Cassano committed criminal fraud in virtually bankrupting the company.
Obama's Latest No Banker Left Behind Scheme
By Stephen Lendman
On Wall Street, that is. So hyped by advance fanfare, Timothy Geithner unveiled his Public-Private Investment Program (PPIP) on March 23, the latest in a growing alphabet soup of handouts topping $12.5 trillion and counting - so much in so many forms, in "gov-speak" language, with so many changing and moving parts, it's hard for experts to keep up let alone the public, except to sense something is very wrong. They're being fleeced by a finance Ponzi scheme, sheer flimflam, and here's how from what we know:
- $400 billion in taking over Fannie and Freddie;
- $42 billion for the auto giants; billions more coming for their suppliers;
- approaching $200 billion for AIG with more coming on request;
- $350 billion to Citigroup in handouts and loan guarantees;
- tens of billions to other banks, including $87 billion to JP Morgan Chase for bad Lehman Brothers trades;
By Dave Lindorff
We are witnessing one of the fastest betrayals of the Democratic Party base in modern memory, as President Barack Obama and the Democratic Party leadership in the Senate slither away from a crucial constituency, the labor movement, and from support of labor’s key legislative agenda item: passage of a bill, “The Employee Free Choice Act,” which would restore a measure of fairness to labor relations.
From Congressman Dennis Kucinich
Kucinich: Did U.S. know more than Bank of America shareholders? $3.6 billion in Unusual Bonuses to Top Merrill Lynch Executives Weeks before Federal Cash Infusion
Washington D.C. (March 30, 2009) – In letters to Federal officials involved in the merger of Merrill Lynch and Bank of America, Congressman Dennis J. Kucinich, Chairman of the Domestic Policy Subcommittee of the House Oversight and Government Reform Committee, requested documents about their knowledge of $3.62 billion in bonuses Merrill Lynch paid top executives at the company just weeks before $25 billion in Federal aid was given to Bank of America for the merger.
“Credit as a Public Utility: The Solution to the Economic Crisis”
A Video in Six Parts | Written and Produced by Richard C. Cook
Part One of Six Parts: Credit As A Public Utility: The Solution to the Economic Crisis
Early U.S. statesmen, such as Benjamin Franklin, Thomas Jefferson, James Madison, and Andrew Jackson worked to free the nation from control by the bankers who had been behind the establishment of the First and Second Banks of the United States. During the Civil War, President Abraham Lincoln implemented a true democratic currency by spending Greenbacks directly into circulation without borrowing from the banks. These measures allowed the U.S. to develop for much of the 19th century largely free from bankers’ control. By the end of the century, this had changed, and the bankers were taking over.
THE WEB OF PRECARIOUSNESS
By Gaither Stewart
Precariousness looms like a black cloud over the continent of Europe. The fragility of human life and of the life style generations of westerners are accustomed to today rages like a modern plague. Precariousness is a contagious disease. It leaps from worker to worker, from class to class. No wonder that life in our times has never seemed more temporary. Permanence belongs to another age.
Twenty-eight years ago, Ronald Reagan used the severe economic downturn of 1980-82 to implement an economic philosophy that not only gave force and meaning to a wide range of initiatives but also offered a way back to sustained economic growth. Is there a similarly powerful animating idea behind Obamanomics?
I believe there is -- and it's not a return to big government.
The expansive and expensive forays of the Treasury and the Federal Reserve Board into Wall Street notwithstanding, President Barack Obama's 10-year budget (whose projections may prove wildly optimistic if the economy fails to rebound by early next year) presents a remarkably conservative picture. In 10 years, taxes are expected to fall to around 19% of GDP, a lower level than the late 1990s. Spending is expected to drop to around 22.5% of GDP, about where it was under Ronald Reagan -- including nondefense discretionary spending at about 3.6% of GDP, its lowest since data on this were first collected in 1962.
The real distinction between Obamanomics and Reaganomics involves government's role in achieving growth and broad-based prosperity. The animating idea of Reaganomics was that the economy grows best from the top down. Lower taxes on the wealthy prompts them to work harder and invest more. When they do so, everyone benefits. Neither Reagan nor the apostles of supply-side economics explicitly promised that such benefits would "trickle down" to everyone else but this was broadly understood to be the justification.
Global investors ponder implications of US dollar collapse
By Alex Lantier | WSWS
The very fact that Barron's is imagining such a scenario indicates the power of the objective tensions building up inside world capitalism. It is considering a situation in which major US creditors such as China refuse to lend to the US government, forcing Washington to cut spending. The result would be a truly explosive social situation, as the US government told the population it no longer had money to fund social spending, after trillions of dollars had already been handed out to the banks and the super-rich.
The world bourgeoisie is beginning to consider the consequences of the huge deficit spending and money-printing operations that the Obama administration is using to fund its bailouts of Wall Street and major banks. As these policies increasingly raise questions about the value of the US dollar, commentators are in particular pondering the desirability and implications of a diminished international role for the American currency.
At his March 24 press conference, President Obama made his first public comment on recent Chinese proposals for an international currency overseen by the International Monetary Fund. Obama said: "As far as confidence in the US economy or the dollar, I would just point out that the dollar is extraordinarily strong right now. And the reason the dollar is strong right now is because investors consider the United States the strongest economy in the world, with the most stable political system in the world. So you don't have to take my word for it."