Rep. Carolyn Maloney: The Latest on the Economy

The newest job numbers tell Americans something they already knew - things are bad; they are bad all over - in almost every sector of the economy - in almost every section of the country.

According to the figures just released by the Bureau of Labor Statistics, more than 3.6 million jobs have been lost since the recession began in December 2007, including the nearly 600,000 jobs shed in January. Given the steady stream of mass layoffs, a credit freeze and a decline in consumer spending, the writing was already on the wall for a devastating 13th month of job losses. The job losses were widespread throughout the economy and employers cut jobs at a faster pace last month.

My home state of New York knows only too well just how bad it is - New York had the highest number of announced layoffs last month with almost 48,000 jobs lost. Macy's cut 7,000 jobs, Estee Lauder lost 2,000, Time Warner laid off 1,250, and the Bloomberg news and data firm announced its first layoffs since it was founded by New York's Mayor Bloomberg 28 years ago. And one additional measure of how this recession is affecting every corner of the economy: even Allergan, the maker of Botox, has announced layoffs. Understandably, we'll be seeing frowns all over the country.

After 13 straight months of jobs losses, a total of more than 3 million jobs have now been lost. More than 2 million homes have gone into foreclosure, and millions of other homeowners find themselves owing more to the bank than their homes are worth. In California and Florida for example, home prices have descended by 50%+ from their peak in 2006.

Construction has fallen to its slowest pace since the Census Bureau began collecting data. Just yesterday, the Labor Department announced that initial jobless claims surged to 626,000 for the week ending January 31. The number of people on the unemployment compensation rolls now stands at nearly 4.8 million people - the most since records began in 1967, with another 1.7 million receiving extended benefits. Millions have lost their health insurance and $6 trillion in personal wealth has simply evaporated.

$350 Billion Dollar Government Bailout Plan Coincides with $Billions in Wall Street Bonuses

By Robert Weiss

The same Wall Street financial institutions that are recipients of a $350 billion bailout stimulus package - the first half of a total planned $750 billion dollar package from the government - have been found to have paid out $18.4 billion dollars in bonuses in 2008. The $350 billion dollar stimulus package, known as TARP (Treasury Department's Troubled Asset Relief Program), was intended to remove toxic assets from banks and other financial institutions, thus enabling them to continue on with their present operations and also limit the amount of unemployment within these institutions. In reality, many of these organizations received billions of dollars in government aid, distributed millions in bonuses to its executives and then announced thousands of employee layoffs. This is contrary to helping the economy and is working to increase unemployment.

For example, Eagle Bancorp received $38 million from TARP and doled out $1.967 million in executive bonuses and option awards. Bank of America failed to stop Merrill Lynch from issuing $4 billion dollars in year-end bonuses as it was taking over the company.

How did the government miss these bonuses? Those charged with handing out the TARP money were very knowledgeable of the Wall Street model. Hank Paulsen was the acting Treasury Secretary for the Bush Administration at the time that the $350 billion dollars in TARP money was distributed. He also was the CEO for Goldman Sachs until 2006. Neel Kashkari was the head of the TARP plan during the Bush administration and he has been asked by Obama to continue in his position. He is also a former Golden Sachs executive. They should have and were most probably aware of what was happening in regards to the bonuses that were distributed within these companies.

The government wrote checks to the banks instead of buying their toxic assets even though congress was told that TARP funds would only be used to buy toxic assets. In truth, the government walked away from this matter, because it was quicker and easier to give the banks money due the worsening economic crises. Now the banks are stuck with these toxic assets making it more difficult for them to invest in healthier assets. Hopefully the remaining $350 million will be distributed with more insight. A new system of checks and balances is being implemented to protect the interest of the consumers and workers.

Now President Obama and democrats in congress are moving to cap Wall Street bonuses and pay to $400,000, which is the salary paid to the President of the United States. They are also seeking to create a court to restrain Wall Street's massive indulgences. Wall Street firms argue that bonuses are necessary in order to secure good competitive workers and are used to entice talented workers to their firms. Rudy Giuliani defended corporate bonuses telling CNN last week that cutting bonuses would mean less spending in restaurants and stores. These may be valid points, but the truth is that bonuses by definition is a reward for work above and beyond normal expected performance, and if a company needs millions of dollars in bailouts from the government, the executives receiving these bonuses are not performing at beyond level expectations. The resulting job losses by mostly hard working ordinary Americans cannot adequately justify the extra spending in the stores and restaurants.

As a a result of the government mishandling the TARP money and corporations paying out huge bonuses to executives, many hard working Americans are paying the price. Thousands of employees are being laid off. The American taxpayers are directly paying for the government TARP bailout plan. The taxpayers are also paying attorneys' fees for the large financial institutions that are being investigated for their mishandling of the TARP money. This in turn affects many workers' pension and retirement funds.

Rights for America is committed to defending the rights of ordinary Americans who are in danger of losing their hard earned retirement and pension funds due to unethical financial decisions by the government and the big financial institutions. Rights for America has years of experience fighting Wall Street firms and the resulting corruption, neglect and fraud that is associated with it. If you are in danger of losing your hard earned retirement and pension funds, you owe it to your self to contact Rights for America today. [more...]

You'd Better Get Ready! Here Comes "O-flation!"

By Bill Porter

President Obama is opting for the easy out and is willing to drastically devalue the American dollar. By simply printing money instead of stimulating the four trillion dollars of real money that is currently parked in money markets accounts, Obama is following in George Bush's foolish footsteps.

Where is the change? Have all of the economists left the country? Where is the outrage? Every dollar of phony printed currency is 100% pure "O-flation." The amount of new phony money is unprecedented. Inflation will soon make the Jimmy Carter years look tame. The new wave of inflation will be the worst in U.S. history, for Obama is creating something so new and so bad... senior citizens on a fixed income and the poor will be devastated.

This is the exact scenario that created the conditions that led to WWII. Backdoor taxation ("O-flation") is cowardly and morally reprehensible! There are real options that would stimulate the real money in our economy and not send hundreds of Congress people on a wild and reckless spending spree.

Call your Senators and Congress people before it's too late and "O-flation" arrives! [more...]

Investment Banks are Paying Legal Fees with OUR MONEY!

By Robert Weiss

The subprime mortgage crisis has had disastrous effects on our economy. Americans have lost their homes, businesses, jobs, savings and retirement money and it does not appear that financial conditions will improve anytime in the near future. Many were involved with the events leading to our financial meltdown, but it was the Wall Street investment banks that played the most prominent role. The investment banks have committed numerous fraudulent and unscrupulous acts, such as pressuring the subprime lenders to lower their credit standards, packaging the mortgages into securities with knowledge of the default risks, withholding information regarding risks from investors and credit rating agencies, and controlling the credit ratings of their securities - all to increase their revenues and insure bigger bonuses for their executives. And now, rather than seeking expiation for their abhorrent actions and a reasonable settlement to rectify their wrongs, the investment banks are hiring large overpriced law firms in an attempt to escape liability. [more...]

Monday Morning Quarterback: It's the Consumer, Dummy!

Bill Glynn's On the Money!

Consumer Free Fall: Consumption Economy Cannot Recover Without Consumer Spending. It's Monday and this time I am a Monday Morning Quarterback. 12 months and counting I have said it's the consumer that drives our economy. My warnings have fallen on many ears but a lot of deaf ones, too. I can't believe so many eyes are closed to the fact that every single business will strongly feel the impact of the consistent decline of consumer consumption. Expect more layoffs, unemployment, under-employment and hobbling and what do you get - a disaster of biblical proportion. six months and falling! When are we going to wake up these people in D.C.? Check out some NO COST solutions on my blog. Or PLEASE download IOUSA NOT! USA owes us at http://www.billyg.net/.

The Triumph of the American Spirit - The Super Bowl: Put the Same Effort and Enthusiasm into Your Life!

By Raj Bhakta

"I always turn to the sports section first. The sports section records people's accomplishments; the front page, nothing but man's failures," said Earl Warren, quoted in Sports Illustrated, 22 July 1968. Waking up today, surely everyone is proud to be an American even if you're from Arizona. Both the Cardinals and the Steelers played a well-fought game and after hours of party preparation excitement, at 6:30pm Eastern last night, the nation sat down to the closest Super Bowl in history. The emotion and inspiration derived from one single game unified America in an economy that is the worst since the depression. The unification accomplished reaches across political differences, socioeconomic status, and cultural differences. [more...]

Be President - Not Legislator-in-Chief

By John LeBoutillier

Since President Obama's Inauguration we have seen the Congress - both the Democrats and the Republicans - behave in the most disgustingly political way in the middle of a national crisis - while the White House stands back and acts like a passive player in the game. Let us examine: Everyone knows the deteriorating economy is the whole shebang politically; every other pet issue - big and small - has to take a back seat until things get back on track. There is real angst in our nation; some wonder if we will ever get back on track. Instilling confidence that we will recover is a major part of the solution. So what does the House of Representatives do? They resort to their innate character! The Democrats create a so-called stimulus package that is an unmitigated disaster - loaded with increased welfare benefits for the states, more spending on already-existing entitlement programs, pet social-spending projects and all sorts of other Christmas tree spending to please various Democrat Members. In sum, this bill is a joke. And a disgrace. [more...]