Showing posts with label Corporate bail-outs. Show all posts
Showing posts with label Corporate bail-outs. Show all posts

Wednesday, May 13, 2009

Eliot Spitzer

Yesterday I put up on the blog a conversation Charlie Rose had with Elizabeth Warren, Naomi Klein and William Greider. They discussed the economic mess. Of course one would expect their perspective. Surprisingly Eliot Spitzer has the exact same perspective. Both conversations mention Paul Krugman and Stieglitz as economic wizards and are those that "get it." He goes after politicians and the Obama administration who are propping up the same old system.

I have followed Eliot Spitzer's entry back into the public fold. His voice during this time is needed, of course him as a public figure would have been much better. But, we all know his words in the financial crisis have tremendous credibility and that is why he has a platform.

He is also, in my opinion sincerely apologetic and forthright as to his transgressions as you can see from the second video. And I have to say Rachel Maddow goes where no one has gone before asking him questions about the personal to the political. That appears in the second segment. Spitzer should have never been a politician. He should have made his life going after these fuckers who are starving our economy.


Thursday, April 16, 2009

Elizabeth Warren of TARP Oversight Speaks to John Stewart

Ok, so Elizabeth Warren is one of the brightest financial people working today. A Harvard Law Professor and if anyone saw the movie "Maxed Out" she was the star. She is brilliant and in the first segment shows why this is so bad, but in the second segment she explains what happened, why it happened and how we go forward and why in two minutes. It is worth the watch.
The Daily Show With Jon StewartM - Th 11p / 10c
Elizabeth Warren Pt. 1
thedailyshow.com
Daily Show
Full Episodes
Economic CrisisPolitical Humor


Part II
The Daily Show With Jon StewartM - Th 11p / 10c
Elizabeth Warren Pt. 2
thedailyshow.com
Daily Show
Full Episodes
Economic CrisisPolitical Humor

Thursday, December 11, 2008

Overseers of TARP "Bewildered"

A new report released yesterday charges the $700 billion dollar bail-out is almost unmanageable and unaccountable. Surprise, surprise. The report looks into how the Department of the Treasury is spending the money. U.S. stocks have declined 40 percent this year, 12 of the nation's largest financial institutions are teetering on the brink of bankruptcy, and 171 banks are on the Treasury's "problem list." Since Congress approved the bailout in October, the Treasury has allocated some $335 billion, but some of the most fundamental questions about where that money went remain unanswered.

"It is unclear" the report -- written by a panel led by Harvard Law professor and bankruptcy expert Elizabeth Warren (many might know her from the film "Maxed Out")-- says at one point, and it continues that way for some time, wondering "What is Treasury's Strategy?" "Is the Strategy Working?" What Have Financial Institutions Done with the Taxpayers' Money?"

The most strongly worded section appears on page 20, when the panel charges Treasury with administering "the TARP program without seeking to monitor the use of funds provided to specific financial institutions." It adds: "Treasury cannot simply trust that the financial institutions will act in the desired ways; it must verify."

This is how it works? The Big Three get grilled about a $15 billion dollar loan, (which it is clear the opposition is against the UAW, not the big three because of the "average hourly wage of workers) and the financial institutions are given $700 billion to do as they please with no oversight. Unbelievable. The people who have destroyed our economy and have shot-up jobless claims rise to a new 26 year high of 573 thousand are given money with no oversight to pump their bad loans and bad product so we spend money that is ever losing its value. Yet, car companies who admittedly need to change their whole structure, but need a boost to save at least three million jobs and restructure to compete in the 21st century economy are left out on a limb. The House passed the bail-out bill, but passage in the Senate is not assured.

I hope Obama is watching because the Democratic Congress passed this. Yes, we still have a President that is a bonified moron, but the Democrats passed this with no oversight and gave a gift to the financial institutions who need a swift kick in the ass. Talk about corporate welfare.

Thursday, November 20, 2008

Bail-outs Only for the Rich, (and Definitely not New Jersey)

It is a strange world indeed when the only people who get bailed out [by us] are the rich and powerful. I heard this morning on NPR the Senate was considering extending unemployment benefits by 13 weeks (something I would personally benefit from at this point), but Bush would veto such legislation. Incidentally, jobless claims are skyrocketing with no end in sight. Just this morning a report by the labor department indicated jobless claims are at a sixteen year high.

There is no real talk about what every day Americans are going through though. It is bail-out banks, bail-out the auto industry, next comes the air line industry. But, where does it end and when does the focus become people, not corporations. Is that not where this conversation should begin? How are people doing? Well, a new report on food and nutrition tells you: one-in-eight Americans who struggled to feed themselves adequately in 2007 even before the economic downturn. From 2000 to 2007, the proportion of those affected rose from 10.5% to 11.1%. That's 36.2 million people.

Other highlights: The families with the highest rates of food insecurity were headed by single mothers (30.2 percent), black households (22.2 percent), Hispanic households (20.1 percent), and households with incomes below the official poverty line (37.7 percent).

States with families reporting the highest prevalence of food insecurity during 2005-07 were Mississippi (17.4 percent), New Mexico (15 percent), Texas (14.8 percent) and Arkansas (14.4 percent).

The highest growth in food insecurity over the past nine years came in Alaska and Iowa, both of which saw a 3.7 percent increase in families who struggled to eat adequately or had substantial food disruptions.

"Nationwide, children suffering from a severe disruption in how much food was available to them rose 50 percent, from 430,000 in 2006 to 691,000 in 2007, the worst year since 1998. Not Congolese fleeing the chaos of civil war. Not Dickensian orphans. Americans in the 21st Century."

This begs the question, what the hell are we thinking? Do bail-outs really help Americans? Will this help us turn the corner or is an entirely new way of thinking needed?

Here in the state of New Jersey Legal Services for the poor's funding is down approximately 65%. Lay-offs indeed have already begun in south jersey and the mood at the organization is bleak. Governor Corzine promised an additional 9.5 million in funds to keep the organization afloat. Word, however is this funding is in doubt (maybe Corzine is too busy thinking of who he can bail-out at the Department of Treasury). What will happen to poor people in New Jersey if this organization is forced to gut itself and cut jobs in half, which some of the plans project? Now mind you Legal Services here is asking for 9 million. Compare that to 25 billion the auto industry is asking for? Do we not have our priorities straight? Might we do both? (Just to put these numbers in perspective. The difference between a million and a billion is very significant. It takes 11 days for 1 million seconds to tick. How about a billion? 30 + years!).

While the poor are forced into poverty and "it is a result of the times" Auto executives fly into Washington on private jets and ask for 25 billion. Banks are given 700 billion. What if we took just one of those billions and divied it up amongst the poor? Would that be such a bad idea?