Michelle Singletary: Economic Empowerment

by: SumofChange

Mon Mar 01, 2010 at 20:37:58 PM EST

Economic Empowerment à la Michelle Singletary

by: SumofChange

Mon Mar 01, 2010 at 20:34:49 PM EST

Fifteen Voices and What They Want to Hear in Tonight's SOTU (I'm With Them)

by: KathyinBlacksburg

Wed Jan 27, 2010 at 19:20:48 PM EST

*Elizabeth Warren, Chair of the Congressional Oversight Panel, wants to hear the President make an aggressive case for regulatory reform.

*Robert Johnson, Senior Fellow and Director of the Financial Reform Initiative at the Roosevelt Institute, wants to hear that there will be sunlight surrounding the AIG bailout and all relevant correspondence.

*Eliot Spitzer wants a huge second economic stimulus because "10% unemployment is a human tragedy and a political disaster."

My Two Cents: Senate Should Just Say "No" to Bernanke

by: KathyinBlacksburg

Fri Dec 04, 2009 at 12:25:13 PM EST

Update: Here's some video footage, an Amy Goodman interview with Eliot Spitzer concerning Ben Bernanke.

"It's only mandatory, until Congress says it's not mandatory," he said at his reappointment confirmation hearing.  Reminding Congress that it has the power to repeal both programs, Fed Chairman Ben Bernanke implied that Congress should abolish Social Security and Medicare here.  Well, then, approving Bernanke is not mandatory.  

It's a shot fired across the bow of Americans.  5 trillion is savings and retirement "plans," have disappeared.  Seniors in their 70s and 80s are returning to work, if they can find it, because they cannot make it on Social Security.  This at a time when young people need jobs too.  And Bernanke says make their lives worse.  Meanwhile, according to Bernanke:

Impression Management and the Deceptive Headline at CNN

by: KathyinBlacksburg

Mon Nov 23, 2009 at 05:00:00 AM EST

A CNN/Opinion Research Corporation survey released Friday morning indicates that 38 percent of the public blames Republicans for the country's current economic problems. That's down 15 points from May, when 53 percent blamed the GOP. According to the poll 27 percent now blame the Democrats for the recession, up 6 points from May. Twenty-seven percent now say both parties are responsible for the economic mess.

Given the epic economic collapse ushered in by eight catastrophic years of George W. Bush, and ignored even as many, many voices tried to bring Bush's unconscious mind into the "game," these numbers are far too damning of Democrats.  Giving Dems a year to solve such a massive collapse is absurd.  

Here We Go Again: The New Pathway to Economic Disaster

by: KathyinBlacksburg

Sun Nov 22, 2009 at 10:45:30 AM EST

It is an ugly story, even worse, I am afraid, than the original debacle. Here's what they do. Investment firms buy mortgages They buy/take worthless mortgages (ones in default) worth face value (let's say) $100 million and discount them to $45 million.  They "slice and dice" them.  Some can be refinanced (about $40 million).  Others cannot ($60 million).  The hedge fund gives a "gift" to the hapless homeowner.  The hedge fund discounts the refinanced mortgage by 11%.  These loans are repackaged into bonds and resold.  The fund gets $35.6 million.  At this point the hedge fund only has to recoup $9.4 million more to get back its investment of $45 million.  But there's more potential in the $60 million than that.  Many properties are foreclosed and the profits returned.  Other loans are modified and held.  

What's wrong with all this, you ask?  Is kathyinblacksburg just being too negative (again)?  I say, "no," with some sense of irony.  You see there's more...(below the fold)

Michael Moore's Brinks Job with Bankers in Tow

by: Rusty5329

Wed Sep 30, 2009 at 17:22:33 PM EDT

Sum of Change and Zej Media are proud to present to you, Michael Moore's Brinks Job with bankers in tow...

A National Strategy Including Healthcare is Essential

by: Dan Sullivan

Mon Sep 14, 2009 at 07:48:11 AM EDT

"Ultimately, the foundation of American strength is at home. It is in the skills of our people, the dynamism of our economy, and the resilience of our institutions. A diverse, modern society has inherent, ambitious, entrepreneurial energy. Our strength comes from what we do with that energy. That is where our national security begins." (From the 2002 NSS)  

Well, that's possibly as vague a strategy as you can design and not leave any competent economist bent over laughing. Let's compare that to a portion of President Clinton's strategy:

Enhancing American Competitiveness

Our primary economic goal is to strengthen the American economy. The first step toward that goal was reducing the federal deficit and the burden it imposes on the economy and future generations...the federal budget deficit as a percentage of the (GDP) was lowered from 4.9 percent in (FY) 1992 to 2.4 percent in (FY) 1995 -- the lowest since 1979. And (FY) 1995 was the first time that the deficit has been reduced three years in a row since the Truman Administration. We are building on this deficit reduction effort with other steps to improve American competitiveness: investing in science and technology; assisting integration of the commercial and military industrial sectors; improving information networks and other vital infrastructure; and improving education and training programs for America's workforce...

"If Everybody Doesn't Want It, Nobody Gets It"

by: Teddy Goodson

Sun Jul 12, 2009 at 19:22:52 PM EDT

I know, I know, this does not exactly fit the picture of harmony and plenty presented to us, the wonderful world of consumer goods galore, a rising middle class everywhere, living in a heaven of endless growth.  The economic system that has lifted everyone's standard of living, producing a true Golden Age with ever-increasing gross world product is presumed to be scientifically based on the profit motive (greed), endless quarterly growth (regular short-term profits), free movement of goods around the world (free trade, globalization), and free decisions made by individuals in the open market on what they will purchase (market competition, the economic man), all of which results in the best allocation of resources through the mysterious hidden hand of the market. That is what free market capitalism is, the garden of entrepreneurs.  

Here's a fun description of a generic business operation (hypothetical, you understand) and how it grows in the garden of the entrepreneurial free market:

Paving the Way for Repeated Economic Collapse (Again): Market Gamers are Undeterred

by: KathyinBlacksburg

Fri Jul 10, 2009 at 12:27:55 PM EDT

As Danny Schechter tells us, you can read at GamingtheMarket.com that "markets are subject to, prone to and characterized by all sorts of manipulative practices."  Indeed, according to Reuters here a recent arrest over the July 4th holiday weekend, raises new concerns about just that.  One sentence will raise the hair on your neck:

In Brief: The Shock Doctrine, One More Time

by: KathyinBlacksburg

Wed May 27, 2009 at 09:57:28 AM EDT

He may be "progressive" on a couple hot button issues, but here's where rubber meets the road.  And this has economic shock doctrine written all over it.

Naomi Klein's Shock Doctrine concept means using economic hard times, in this case economic shock, to swoop in and to wipe out the safety net.  The next step is extensive privatization of the last vestiges of institutions, infrastructure, and programs that help people in crisis.  When hard economic times spell disaster for Americans, he makes those most vulnerable pay the price.  This is contrary to assuring that those most likely to spend will pump money back into the economy.  So, it not only punishes the poorest of the poor, but also thwarts economic recovery.

[For details of the cuts, please read below the fold.]

Green Jobs for Virginia's Veterans: An Essential Part of the Big Picture

by: Eileen

Sat May 23, 2009 at 08:00:46 AM EDT

Virginia also has tremendous potential for development of renewable energy, especially offshore wind development which ironically is also based in an area, Hampton Roads, that is home to so many veterans.  

While Brian Moran has long understood that it is a false argument to pit the environment against the economy, newer politicos needed some convincing of that. Fingers-crossed, but I think Rep. Glenn Nye (2nd) is starting to get it!

Two announcements from both Moran and Nye start the ball rolling towards Virginia's development of a clean energy economy. Moran announced Thursday his "Warriors to Work" initiative, a part of which puts veterans to work in developing our renewable energy resources. Nye announced Wednesday adoption of his amendment that helps veterans start and run their own businesses. Nye's bill was added to H.R. 2352, the Job Creation Through Entrepreneurship Act which also "establishes a green entrepreneurial development program, which will provide education, classes and one-on-one instruction in starting a business in the fields of energy efficiency, green technology, or clean technology".

William Black and the Message We Keep Trying Not to Hear

by: KathyinBlacksburg

Wed May 20, 2009 at 09:51:09 AM EDT

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Deregulation is a dirty word today. But who and what allowed it to happen? William K. Black, former senior regulator during the savings and loan crisis tells us what he thinks happened and why the bailout is flawed. Black has argued recently that Wall Street's crisis could not have happened if not for illegal fraud and that triple A ratings given to bad loans amount to a criminal cover up. Black is the author of The Best Way to Rob a Bank is to Own One: How Corporate Executives and Politicians Looted the S&L Industry.

Black, who now teaches courses in detecting banking fraud at University of Missouri Kansas City, was also interviewed last month by Bill Moyers. The video is here.

The S and L scandal two decades ago involved an epidemic of fraud.  So today, fraud has catapulted our nation to the brink of collapse.  Black sees a recipe for disaster in three major ingredients:

• Massive growth
• Gut underwriting
• Extreme leverage

News of the Day: Credit Card Reform Moving Forward

by: KathyinBlacksburg

Tue May 19, 2009 at 22:04:44 PM EDT

More Social Security Demagoguery

by: KathyinBlacksburg

Wed May 13, 2009 at 12:10:52 PM EDT

This year's Social Security Report projects that the Trust Fund will be exhausted in 2037, four years earlier than the Trustees projected last year.  This change is primarily due to the economic recession, recent data that prompted a small downward adjustment to the projected level of real GDP after the economy recovers and the fact that our citizens are on average projected to live longer lives. Nevertheless, Social Security can continue to pay full benefits for nearly 30 years, and cover approximately 75 percent of scheduled benefits thereafter.

Here's the link by Geitner.  Please re-read the last sentence in the quote above. While the first sentence in his statement is generally true, it's not clear.  He makes a more complete statement by the time you get to the bottom of the paragraph.  But some in the media are running with only the first part.  "It'll be broke!" they say simplistically and misleadingly.  

Economic Lessons from a Virginia Poet

by: KathyinBlacksburg

Sat May 02, 2009 at 12:27:24 PM EDT

Most of us haven't experienced a recession or depression such as this.  We are in almost uncharted territory for most of us who are alive today.  We don't know what will happen next. As we rebuild our economy we must retain what is best of us.  It is in repudiation of what is most human that we as a nation arrived   in this place.  We overly-embraced bottom lines, justified shipping jobs like so many commodities off-shore.

Under-reported: Several Apparent Suicides Among Financial Leaders of Embattled Institutions

by: KathyinBlacksburg

Thu Apr 23, 2009 at 11:25:57 AM EDT

First, the CFO of mortgage giant Freddie Mac, David Kellermann, was found dead of an apparent suicide in the basement of his home in Fairfax this week.  Here's the story.
But, it turns out, this is far from the first such occurrence.  

How 401ks Are Selling Us Short and Impoverishing Many Americans

by: KathyinBlacksburg

Wed Apr 22, 2009 at 16:33:47 PM EDT

"At any one time, less than half of all workers are working for an employer who sponsors some type of employer pension," economist, Teresa Ghilarducci, When I am Sixty Four, p. 59)

In 2008 this same economist, wrote:

"If current trends continue, the early baby boomers (born between 1946 and 1955) will be the last generation with more retirement than their parents" (p. 56).  

Don't look now, but baby boomers' prospects have sunk like a stone.  A lot has happened since early 2008. With the economic collapse of personal savings and retirement accounts, and the by-design under-funding of defined benefit plans, boomers will be lucky to be able to retire at all.  

Americans are struggling.  Those of working age, worry that they will lose their jobs.  For many of them, retirement is too far away to think about.  Those who've lost jobs worry about jobs now.  But for those 50 and over, the devastation of the American retirement system looms more urgent.  And for those 60 and over, the timing could not be worse.  How we got here is a long story for another day.  But here's the short of it and a few solutions

The Call

by: KathyinBlacksburg

Tue Apr 14, 2009 at 14:29:14 PM EDT

A semi-hysterical woman says hello in an urgent voice.  Robo always says "this is an important call." OR "this is an urgent call."  Sometimes they now add, "Don't be alarmed, but..."  If you hadn't gotten these before you might be just that, alarmed.

Still, it's one day until April 16th.  Every time I get a robo-call, I stiffen, wondering if its the warning system at Virginia Tech.  My mind races.  But then I remember, it's an 850 area code (Florida).  Again.

Why President Obama Should Reform the Student Loan Process

by: KathyinBlacksburg

Mon Apr 13, 2009 at 17:35:44 PM EDT

As authors  Eric Lotke, Christine Lindstrom and Armand Biroonak have noted:

The proposed budget cuts excessive lender subsidies, moves to more efficient direct lending instead, and invests the savings in students.

Government subsidized student loans serve as a giant profit-stream with very little risk.  For one thing, college student loans are just about the only thing for which a borrower can not declare bankruptcy, even if one's finances have completely collapsed.  Meanwhile, the potential for profit is enormous.  For example, in the five years through 2006, Sallie Mae earned an astonishing 51% return on equity, more than triple the rate of return of the banking industry, according to David Cay Johnson in Free Lunch: How the Wealthiest American Enrich Themselves at Government Expense (and Stick You With the Bill, 2007).  For example, Sally Mae, the privatized former government loan entity gave $4.6 million in cash and stock to its chief executive and more than $13.2 million in cash and stock to its vice chairman.