http://www.reuters.com/article/idUSN2124009320091221?type=marketsNews
U.S. banks that spent more money on lobbying were more likely to get government bailout money, according to a study released on Monday.
Banks whose executives served on Federal Reserve boards were more likely to receive government bailout funds from the Troubled Asset Relief Program, according to the study from Ran Duchin and Denis Sosyura, professors at the University of Michigan's Ross School of Business.
Banks with headquarters in the district of a U.S. House of Representatives member who serves on a committee or subcommittee relating to TARP also received more funds.
Showing posts with label bailout. Show all posts
Showing posts with label bailout. Show all posts
Tuesday, December 22, 2009
Saturday, November 28, 2009
Dubai is Just a Harbinger of Things to Come for Sovereign Debt
http://blogs.telegraph.co.uk/finance/jeremywarner/100002318/dubai-is-just-a-harbinger-of-things-to-come-for-sovereign-debt/
According to new estimates by Moody’s, the credit rating agency, the total stock of sovereign debt worldwide will have risen by nearly 50 per cent between 2007 and 2010 to $15.3 trillion. The great bulk of this increase comes not from irrelevant little states like Dubai, but from the big advanced economies – America, Europe, and Japan.
According to new estimates by Moody’s, the credit rating agency, the total stock of sovereign debt worldwide will have risen by nearly 50 per cent between 2007 and 2010 to $15.3 trillion. The great bulk of this increase comes not from irrelevant little states like Dubai, but from the big advanced economies – America, Europe, and Japan.
Friday, November 6, 2009
Many California Jobs "Saved' by Stimulus Funds Weren't in Jeopardy
http://www.sacbee.com/topstories/story/2309303.html
Up to one-fourth of the 110,000 jobs reported as saved by federal stimulus money in California probably never were in danger.
Up to one-fourth of the 110,000 jobs reported as saved by federal stimulus money in California probably never were in danger.
Wednesday, October 21, 2009
U.S. Said to Order Deep Pay Cuts at Bailed-Out Companies
http://www.cnbc.com/id/33417281
Under the plan, which will be announced in the next few days by the Treasury Department, the seven companies that received the most assistance will have to cut the annual salaries of their 25 best-paid executives by an average of about 90 percent from last year. Their total compensation — including bonuses and retirement contributions — will drop, on average, by about 50 percent. The companies are Citigroup, Bank of America, American International Group, General Motors, Chrysler and the financing arms of the two automakers.
Let the mass exodus of talent begin.
Under the plan, which will be announced in the next few days by the Treasury Department, the seven companies that received the most assistance will have to cut the annual salaries of their 25 best-paid executives by an average of about 90 percent from last year. Their total compensation — including bonuses and retirement contributions — will drop, on average, by about 50 percent. The companies are Citigroup, Bank of America, American International Group, General Motors, Chrysler and the financing arms of the two automakers.
Let the mass exodus of talent begin.
7 Months After Stimulus 49 of 50 States Have Lost Jobs
http://www.republicans.waysandmeans.house.gov/News/DocumentSingle.aspx?DocumentID=150826
According to the data, 49 States and the District of Columbia have lost jobs since stimulus was enacted. Only North Dakota has seen net job creation following the February 2009 stimulus. While President Obama claimed the result of his stimulus bill would be the creation of 3.5 million jobs, the Nation has already lost a total of 2.7 million – a difference of 6.2 million jobs.
They were only off by 6.2 million jobs...bahhh, what's 6.2 million jobs? I'm just glad the government finally used my hard earned tax dollars to do something successful...oh wait...
And we trust our government to provide healthcare for all Americans!?
According to the data, 49 States and the District of Columbia have lost jobs since stimulus was enacted. Only North Dakota has seen net job creation following the February 2009 stimulus. While President Obama claimed the result of his stimulus bill would be the creation of 3.5 million jobs, the Nation has already lost a total of 2.7 million – a difference of 6.2 million jobs.They were only off by 6.2 million jobs...bahhh, what's 6.2 million jobs? I'm just glad the government finally used my hard earned tax dollars to do something successful...oh wait...
And we trust our government to provide healthcare for all Americans!?
Tuesday, October 20, 2009
Obama Mulls Newspaper Bailout
http://www.newsmax.com/insidecover/newspapers_obama_bailout/2009/09/22/263193.html
In an interview with the Pittsburgh Post-Gazette and The Toledo Blade Friday, President Obama said he hopes newspapers can find a way out of their financial crisis.
Several bills have been introduced in Congress to boost the newspaper sector, including a Senate proposal that would allow newspaper companies to reformulate themselves as nonprofits with a variety of tax breaks.
Once the government has given you money, they control you. Just look at the bailout businesses already...the government is now setting pay. The scary thing in this case is, the government would have the power to say, "you can't print that story or we'll take your bailout money away." Just wait.
In an interview with the Pittsburgh Post-Gazette and The Toledo Blade Friday, President Obama said he hopes newspapers can find a way out of their financial crisis.
Several bills have been introduced in Congress to boost the newspaper sector, including a Senate proposal that would allow newspaper companies to reformulate themselves as nonprofits with a variety of tax breaks.
Once the government has given you money, they control you. Just look at the bailout businesses already...the government is now setting pay. The scary thing in this case is, the government would have the power to say, "you can't print that story or we'll take your bailout money away." Just wait.
Wednesday, October 14, 2009
Treasury 'Didn't Understand' AIG's Bonus Plans
http://www.foxnews.com/politics/2009/10/14/treasury-didnt-understand-aigs-bonus-plans/
In a report released Tuesday, Barofsky wrote that the Treasury Department did not understand AIG's byzantine pay structures when it gave the firm billions in aid last fall. The government has committed a total of more than $180 billion to wind down the New York-based insurance and financial services conglomerate, and now owns about 80 percent of the company.
Why the Hell would you give taxpayer money to a company without knowing how it would potentially be used?
In a report released Tuesday, Barofsky wrote that the Treasury Department did not understand AIG's byzantine pay structures when it gave the firm billions in aid last fall. The government has committed a total of more than $180 billion to wind down the New York-based insurance and financial services conglomerate, and now owns about 80 percent of the company.
Why the Hell would you give taxpayer money to a company without knowing how it would potentially be used?
Wednesday, September 9, 2009
Thursday, July 9, 2009
Billions in aid go to areas that backed Obama in '08
http://www.usatoday.com/news/washington/2009-07-08-redblue_N.htm?csp=34
"Counties that supported Obama last year have reaped twice as much money per person from the administration's $787 billion economic stimulus package as those that voted for his Republican rival, Sen. John McCain"
"The reports show the 872 counties that supported Obama received about $69 per person, on average. The 2,234 that supported McCain received about $34"
"The imbalance didn't start with the stimulus. From 2005 through 2007, the counties that later voted for Obama collected about 50% more government aid than those that supported McCain"
I think the point here is not some much the idea of favoritism given that last statement, but it is interesting to note that those area of the country more dependant on the government voted for Obama. That's the biggest difference I see ideologies. Liberals get elected not on ideas, but on promises to give you a free lunch. These areas in turn become dependant on the government and feel they must vote for a liberal in order to continue leeching off the government. Where is your pride America? What happened to principles of hard work and sacrifice? You should be ashamed that you knowingly indenture yourself to someone else. This country was founded so its people could be free from tyranny. Now, America, we seem to be willing subjecting ourselves to tyranny. Our founding fathers must be rolling over in their graves.
"Counties that supported Obama last year have reaped twice as much money per person from the administration's $787 billion economic stimulus package as those that voted for his Republican rival, Sen. John McCain"
"The reports show the 872 counties that supported Obama received about $69 per person, on average. The 2,234 that supported McCain received about $34"
"The imbalance didn't start with the stimulus. From 2005 through 2007, the counties that later voted for Obama collected about 50% more government aid than those that supported McCain"
I think the point here is not some much the idea of favoritism given that last statement, but it is interesting to note that those area of the country more dependant on the government voted for Obama. That's the biggest difference I see ideologies. Liberals get elected not on ideas, but on promises to give you a free lunch. These areas in turn become dependant on the government and feel they must vote for a liberal in order to continue leeching off the government. Where is your pride America? What happened to principles of hard work and sacrifice? You should be ashamed that you knowingly indenture yourself to someone else. This country was founded so its people could be free from tyranny. Now, America, we seem to be willing subjecting ourselves to tyranny. Our founding fathers must be rolling over in their graves.
Monday, June 22, 2009
Goldman to make record bonus payout
http://www.guardian.co.uk/business/2009/jun/21/goldman-sachs-bonus-payments
"A lack of competition and a surge in revenues from trading foreign currency, bonds and fixed-income products has sent profits at Goldman Sachs soaring, according to insiders at the firm."
"A lack of competition and a surge in revenues from trading foreign currency, bonds and fixed-income products has sent profits at Goldman Sachs soaring, according to insiders at the firm."
Tuesday, June 9, 2009
GOP Lawmakers to Fed: Stop Printing Money
http://www.newsmax.com/headlines/gop_fed_printing_money/2009/06/09/223162.html
“Creating dollars to cover debts gives markets a short term boost at the expense of debasing the dollar and triggering inflation. To date, the Federal Reserve has already created over $130 billion to cover $35 billion of long-term debt and over $100 billion of short-term securities”
“Creating dollars to cover debts gives markets a short term boost at the expense of debasing the dollar and triggering inflation. To date, the Federal Reserve has already created over $130 billion to cover $35 billion of long-term debt and over $100 billion of short-term securities”
Obama Indefensible New Tax Policy
http://www.bloomberg.com/apps/news?pid=washingtonstory&sid=aaaBdVMkjPnU
The U.S. now has about the highest combined corporate tax rate, second only to Japan among industrialized countries. That rate is so high that U.S. firms have an enormous disadvantage versus competitors. The average corporate tax rate for the major developed countries in the Organization for Economic Cooperation and Development in 2008 was about 27 percent, more than 10 percentage points lower than the U.S. rate.
U.S. firms have nonetheless prospered because our tax code allows a business to set up a subsidiary in a low-tax country. When that subsidiary earns profits, they are taxed at the rate of that country, and don’t face U.S. tax until the money is mailed home.
The authors found that “10 percent greater foreign capital investment is associated with 2.2 percent greater domestic investment, and that 10 percent greater foreign employee compensation is associated with 4 percent greater domestic employee compensation. Changes in foreign and domestic sales, assets, and numbers of employees are likewise positively associated; the evidence also indicates that greater foreign investment is associated with additional domestic exports and R&D spending.”
So when firms expand their operations abroad, taking advantage of the lower foreign tax rates, it helps their workers in the U.S. Higher sales abroad (surprise, surprise) are good for domestic workers.
How could Treasury Secretary Tim Geithner call a practice that top scholarship has shown increases wages and employment in the U.S. “indefensible?”
The U.S. now has about the highest combined corporate tax rate, second only to Japan among industrialized countries. That rate is so high that U.S. firms have an enormous disadvantage versus competitors. The average corporate tax rate for the major developed countries in the Organization for Economic Cooperation and Development in 2008 was about 27 percent, more than 10 percentage points lower than the U.S. rate.
U.S. firms have nonetheless prospered because our tax code allows a business to set up a subsidiary in a low-tax country. When that subsidiary earns profits, they are taxed at the rate of that country, and don’t face U.S. tax until the money is mailed home.
The authors found that “10 percent greater foreign capital investment is associated with 2.2 percent greater domestic investment, and that 10 percent greater foreign employee compensation is associated with 4 percent greater domestic employee compensation. Changes in foreign and domestic sales, assets, and numbers of employees are likewise positively associated; the evidence also indicates that greater foreign investment is associated with additional domestic exports and R&D spending.”
So when firms expand their operations abroad, taking advantage of the lower foreign tax rates, it helps their workers in the U.S. Higher sales abroad (surprise, surprise) are good for domestic workers.
How could Treasury Secretary Tim Geithner call a practice that top scholarship has shown increases wages and employment in the U.S. “indefensible?”
Monday, June 8, 2009
Big Government Spending Programs to Revive Housing Market are Having the Opposite Effect
http://apnews.myway.com/article/20090606/D98L67500.html
"All this means that even though mortgage rates are still low by historical standards, many of the trends that seem to be pointing to economic recovery in recent months could be undone fast."
DUH!
"All this means that even though mortgage rates are still low by historical standards, many of the trends that seem to be pointing to economic recovery in recent months could be undone fast."
DUH!
Thursday, June 4, 2009
Car Chiefs Grilled on Dealer Closings
http://online.wsj.com/article/SB124405461535882071.html
And so the micromanagement begins. How exactly is a business suppose to function when it has to be accountable to politicians who motivations now-a-days seem to be to lobbyists?
"I never would have believed as a candidate for the U.S. Senate that the U.S. government could buy GM without a hearing, with no vote, yes or no," Sen. Mike Johanns (R., Neb.) said at Wednesday's hearing. "There are billions and billions of dollars at stake here."
And so the micromanagement begins. How exactly is a business suppose to function when it has to be accountable to politicians who motivations now-a-days seem to be to lobbyists?
"I never would have believed as a candidate for the U.S. Senate that the U.S. government could buy GM without a hearing, with no vote, yes or no," Sen. Mike Johanns (R., Neb.) said at Wednesday's hearing. "There are billions and billions of dollars at stake here."
Monday, June 1, 2009
The Obama Motor Co.
http://online.wsj.com/article_email/SB124381255295170405-lMyQjAxMDI5NDAzMTgwMTEyWj.html
"Treasury bludgeoned the bond holders in both Chrysler and GM to take pennies on the dollar, which will not make creditors eager to lend to the companies in the future."
"The new agreement simplifies some work rules and job descriptions but makes no reductions in hourly pay, pensions or health care for active workers. The agreement must also be renegotiated in two years by an Obama Administration running for re-election and weighing the need to keep Big Labor happy against the risks to taxpayer-shareholders."
"The Administration's concessions to the UAW also restrict the company's ability to import smaller, more fuel-efficient cars that it already makes overseas....GM is also selling its Opel operation in Europe as part of this restructuring, and the Washington Post reports that one of Treasury's sale conditions is that Opel's new owners must stay out of the U.S., and even out of China, where GM's business is strong. This is raw trade protectionism. It is also textbook cartel behavior and would be an antitrust violation if practiced by a business."
"The Obama Administration has been whispering to the press that it could start selling its stake within a year to 18 months, and that it hopes to be out of the business entirely in five years. But even assuming that the taxpayer investment stops at $50 billion, GM would have to be worth a cool $80 billion for taxpayers to break even on their 60% stake. By way of comparison, GM's market capitalization at its recent peak in 2000 was only $56 billion."
"The larger corruption will be when government tries to vindicate its ownership by favoring GM over Ford and the other auto makers that aren't wards of the state. The TARP legislation contained one blatant example in the form of a $7,500 tax credit for consumers who buy GM's new electric car, the Chevy Volt. "
"Treasury bludgeoned the bond holders in both Chrysler and GM to take pennies on the dollar, which will not make creditors eager to lend to the companies in the future."
"The new agreement simplifies some work rules and job descriptions but makes no reductions in hourly pay, pensions or health care for active workers. The agreement must also be renegotiated in two years by an Obama Administration running for re-election and weighing the need to keep Big Labor happy against the risks to taxpayer-shareholders."
"The Administration's concessions to the UAW also restrict the company's ability to import smaller, more fuel-efficient cars that it already makes overseas....GM is also selling its Opel operation in Europe as part of this restructuring, and the Washington Post reports that one of Treasury's sale conditions is that Opel's new owners must stay out of the U.S., and even out of China, where GM's business is strong. This is raw trade protectionism. It is also textbook cartel behavior and would be an antitrust violation if practiced by a business."
"The Obama Administration has been whispering to the press that it could start selling its stake within a year to 18 months, and that it hopes to be out of the business entirely in five years. But even assuming that the taxpayer investment stops at $50 billion, GM would have to be worth a cool $80 billion for taxpayers to break even on their 60% stake. By way of comparison, GM's market capitalization at its recent peak in 2000 was only $56 billion."
"The larger corruption will be when government tries to vindicate its ownership by favoring GM over Ford and the other auto makers that aren't wards of the state. The TARP legislation contained one blatant example in the form of a $7,500 tax credit for consumers who buy GM's new electric car, the Chevy Volt. "
Romney balks at government ownership of GM
http://www.detnews.com/article/20090531/AUTO01/905310317/1148/Romney-balks-at-government-ownership-of-GM
Wow, this guys name sounds familiar and he has a great idea, why isn't he in a political office? Oh that's right, you Republicans decided to go with a washed-up Obama-light Rino!
Wow, this guys name sounds familiar and he has a great idea, why isn't he in a political office? Oh that's right, you Republicans decided to go with a washed-up Obama-light Rino!
GM Files for Bankruptcy Protection
http://online.wsj.com/article/SB124385428627671889.html
Apparently, it isn't to big too fail, wasn't that what we were told? What the hell did GM do with all that money we gave them, the billions of tax dollars? Why would you give someone money if they wouldn't be able to use it effectively? And even if you weren't sure, why would you gamble so much? Once again our government does us great service by wasting our hard-earned money. Nice job guys and girls in Washington...
Apparently, it isn't to big too fail, wasn't that what we were told? What the hell did GM do with all that money we gave them, the billions of tax dollars? Why would you give someone money if they wouldn't be able to use it effectively? And even if you weren't sure, why would you gamble so much? Once again our government does us great service by wasting our hard-earned money. Nice job guys and girls in Washington...
Friday, May 22, 2009
Indiana state pensions sue to stop Obama’s Chrysler deal
http://www.correntewire.com/indiana_pension_funds_sue_chrysler_bailouts_go_politically_wired_im_shocked http://www.lesjones.com/2009/05/20/indiana-pensions-sue-to-stop-obamas-chrysler-deal/
“The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”
Apparently, Obama never took economics 101. Everyone hails the bailout as it will "save thousands of jobs," but fail to look at unintended consequences. By putting the politically favorable UAW ahead of Indiana pension fund holders in terms of debt payoff for chapter 11, you now have essentially taken away the retirement of a whole bunch of people. However, since the UAW probably garners more votes, Obama is unlikely to call for "change" that would benefit the pension holders. How about you get your fingers away from the economy and stop creating more problems!
“The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”
Apparently, Obama never took economics 101. Everyone hails the bailout as it will "save thousands of jobs," but fail to look at unintended consequences. By putting the politically favorable UAW ahead of Indiana pension fund holders in terms of debt payoff for chapter 11, you now have essentially taken away the retirement of a whole bunch of people. However, since the UAW probably garners more votes, Obama is unlikely to call for "change" that would benefit the pension holders. How about you get your fingers away from the economy and stop creating more problems!
Thursday, May 14, 2009
Obama's Overreaching Economic Policies
http://www.washingtonpost.com/wp-dyn/content/article/2009/05/13/AR2009051303014_pf.html
"For the first time, neither sales nor property nor income taxes are the largest source of money for state and local governments. The federal government is."
"For the first time, neither sales nor property nor income taxes are the largest source of money for state and local governments. The federal government is."
Tuesday, May 12, 2009
Hedge Fund Manager Strikes Back at Obama
http://dealbook.blogs.nytimes.com/2009/05/05/a-hedge-fund-manager-strikes-back-at-obama/
"The managers have a fiduciary obligation to look after their clients’ money as best they can, not to support the President, nor to oppose him, nor otherwise advance their personal political views."
Subscribe to:
Posts (Atom)