AIG Bonuses Highlight Divide

The mere fact that these AIG bonuses were allowed to go through highlights the divide between those that are entitled and those of us who feel we need to work for a living while nothing is guaranteed. But, AIG who received over 170 billion dollars in bailout money thought it was fine (or maybe more likely didn't care what we thought) to give out millions in bonuses, though they screwed the American people. And politicians ok'd this. They had the chance to stop the bonuses with provisions in TARP money or the stimulus package and they chose not to do so. Maybe they thought it was unnecessary, but I doubt it.

While at the same time bailout money for the auto makers required these companies to shut down plants, lay-off workers and re-negotiate contracts with the auto workers who god forbid were not living in poverty. This highlights just how far the American worker has fallen and how far we have gone to allow financiers to control, leverage and destroy our economy while we sit with a cup in our hands for unemployment, foodstamps, increases in TANF assistance, student loan bailouts, etc. Even the Obama administration (who I like) have tried to shift this argument, maybe to push for true regulation (a good thing) or to relieve themselves of their own responsibility in this fiasco.

Today in France, in solidarity for one another a nation wide strike is occurring (can you imagine). Unions are opposing President Sarkozy's economic policies. 2 million are unemployed (we have over 5.5 million at least) and more lay-offs are expected. Schools are closed and public transport is being disrupted, with demonstrations organized in about 200 towns.

From the Guardian: Union members marched towards Nation in Paris behind a banner that read: "United against the crisis, defend employment, spending power and public services."
Police said there were about 85,000 people at the rally, according to the AFP news agency.
"They have a profound sense of social injustice, and that, I think, is something that neither the government nor the employers have understood," said Jean-Claude Mailly, head of the large Force Ouvriere union.

Recent polls show over 75% of the French support the strikers. Now, let me tell you I was there during a strike in France and it ain't easy. But, what is heartening, truly heartening is the unions, workers and regular people have a seat at the table of negotiations. We have none. That has to change. Here is pushing for EFCA fast. Of course, we have to beg for a vote on it and now Obama is chickening out. When will things change? When we get off our asses and demand it.

The Daily Show Blasts CNBC

Take note reporters this is actual journalism with a comedy twist. What our "free press" should be reporting on...the other night we had Letterman calling Limbaugh a bozo, etc., while Katie Couric hid in the corner and complained about losing her interview - tonight we have John Stewart handing it to the "experts."

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Bail-Out Money for the Auto Companies for Laying People Off

I am glad Obama signed the stimulus bill and it is not a terrible bill. It has 8 billion for railroad expansion. Very good news. But, why would we give more bail-out money to Auto companies to cut 47,000 jobs? What is the point of that? What is the point of cutting jobs in this economy? I don't get it at all. What is the long term plan to send all the manufacturing jobs to China?

When did out country get so anti-worker? When exactly did that happen? Was it under Reagan and solidified under Clinton? That is my best guess.

The Bail-Out Fails

The bail-out failed because of the hypocritical Senate in which they feed, give, serve up $700 billion dollars with no oversight. And now GM has announced they are closing 20 factories because of "low demand." The employees will be laid-off temporarily, but who knows what this means? Here are the hypocrites who voted to give $700 billion dollars to the banks and not to loan $14 billion dollars to the American auto industry.

Bob Bennett, R-UT Richard Burr, R-NC Saxby Chambliss, R-GA Tom Coburn, R-OK Norm Coleman, R-MN Bob Corker, R-TN John Ensign, R-NV Chuck Grassley, R-IA Judd Gregg, R-NH Orrin Hatch, R-UT Kay Bailey Hutchison, R-TX Johnny Isakson, R-GA John Kyl, R-AZ Mel Martinez, R-FL John McCain, R-AZ Mitch McConnell, R-KY Lisa Murkowski, R-AK John Thune, R-SD

"Hypocritical, job-killing extremists"

A Public Hijacking that Goes Untold

As reported by Naomi Klein last week the bail-out was nothing, but a fraud and quite frankly the Bush administration committed acts that might be considered criminal. I will link to this article, but will also give the sorted details in brief.

Last week as Ben Bernanke and Henry Paulson as well as some minions came to Washington to explain just how the bail-out was going we learned interesting tidbits that are not being reported in the press. Surprise, surprise. First, "in a moment of high panic in September, the US treasury pushed through a radical change in how bank mergers are taxed - a change long sought by the industry. Despite the fact that this move will deprive the government of as much as $140bn in tax revenue, legislators found out only after the fact. According to the Washington Post, more than a dozen tax attorneys agree that "[the] treasury had no authority to issue the [tax change] notice." It is not just the brilliant Klein who reported this, however the bastion of free market capitalism the Washington Post reported on it as well.

So, while we bail-out these huge companies giving them 700 billion in revenue they change a law unchallenged and behind the American people's back so they can avoid taxes?! What is the Democratic response? Nothing.

Secondly, of equally dubious legality are the equity deals the treasury has negotiated with many of the banks. According to Congressman Barney Frank, one of the architects of the legislation that enables the deals: "Any use of these funds for any purpose other than lending - for bonuses, for severance pay, for dividends, for acquisitions of other institutions ... is a violation of the act." Yet this is exactly how the funds are being used.

Lastly, in addition to the $700 billion banks have been given as a gift for hijacking the American people, the Federal Reserve has also loaned out $2 trillion dollars in emergency loans. Where is this money you ask? Incredibly, the Fed will not reveal which corporations have received these loans or what it has accepted as collateral. Bloomberg news service believes this secrecy violates the law and has filed a federal suit demanding full disclosure.

The democrats are squarely absent from the conversation. Barack Obama constantly lets us know, "there is only one President at a time." Of course this is true, but these new policies not allowed by anyone, but the Bush administration has the ability to as Klein puts it, "hobble Obama's ability to make good on his promise of change." For instance, Obama's renewable energy plan is almost the exact amount of money being stolen from the American people because of the unilateral rule change by the Treasury Department.

Obama wants to be a bi-partisan President, which sounds nice, but these people play hard ball and care not for regular Americans. They are not playing in the agreed upon rules and Obama and the Democrats have a responsibility to highlight this. The reason Klein gives for their silence is this: I suspect the real reason the Democrats are failing to act has less to do with presidential protocol than with fear: fear that the stock market, which has the temperament of an over-indulged two-year-old, will throw one of its world-shaking tantrums.

She has more faith in the democrats than me. What I have seen over my adult life gives me no faith in the new Congress or in fact, a man I worked my heart out for, Barack Obama. I am glad we no longer have to worry about our place in the world because indeed it will be restored. But, I doubt heavily that anything significant will change in the way we do business with the rich and powerful and the not so rich and powerful. The rules are set up so that regular people will fail. Is that going to change?

I am not interested in rhetoric anymore. We need a President that will listen to every day Americans and we need to hear him now. I want to know what is going to change. Will we have Regulations that actually stop lenders and banks from merging into gargantuan companies that cannot fail (a move by the way that was made under the Clinton administration)? Citigroup is ready to fail and is going to be bailed out momentarily. Are we going to break up this huge conglomerate corporations? Are we going to stop lengers from predatory lending? Subprime mortgages? What, what is going to change?

Quote of the Week

"There is a delicious irony in seeing private luxury jets flying into Washington, D.C., and people coming off of them with tin cups in their hand, saying that they're going to be trimming down and streamlining their businesses," Rep. Gary Ackerman, D-New York, told the chief executive officers of Ford, Chrysler and General Motors at a hearing of the House Financial Services Committee.

"It's almost like seeing a guy show up at the soup kitchen in high hat and tuxedo. It kind of makes you a little bit suspicious."