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Tag: bailout

Nationalize the Big Banks?

Nationalize the Big Banks?

Politicians in Washington are mesmerized by Wall Street campaign dollars and terrified by being branded “socialists”. That seems to be the most likely explanation for the failure of the Congress to pass a second stimulus bill despite continuing high levels of unemployment -especially long-term unemployment – that are absolutely catastrophic for millions of families. In fact, politicians are leaning in the other direction. Instead of a jobs bill, they are promoting deficit reduction. Instead of promoting stimulation of the economy…

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Jobs or Derivatives?

Jobs or Derivatives?

The United States needs another stimulus package to increase domestic economic activity which will generate more jobs and eliminate the remnants of the “Great Recession.” However, the Congress hesitates to pass the necessary legislation because the members are spooked by the rise of a competing worry, the federal deficit, now at $12.3 trillion and increasing by over $1 trillion for this year and the next. These are not unimportant numbers but they should be placed in context: the accumulated deficit…

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Breaking Up the Super Banks

Breaking Up the Super Banks

SATURDAY, JUNE 12, 2010 What made this recession a “great recession” isn’t only its depth and duration. Most importantly, it has forced changes in the role of government in the economy, in rules for finance and banking. In addition, and just as far-reaching, it has changed American attitudes toward spending and thrift, retirement and homeownership, as well as finance and government. Public attitudes toward the super-banks may have changed the most. “Bailout” has become a nasty word describing the incestuous…

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No More Bailouts

No More Bailouts

Americans have had enough of the nightmare of irresponsible big institutions getting bailed out by the US government using their tax dollars. The average citizen on Main Street should not pay for the risky and reckless behavior of corporate giants on Wall Street. Bailout is the most unpopular word in the language today. In Texas, the Republican nomination for governor was decided when the heavy favorite, Kay Bailey Hutchinson, was derided as “Kay Bailout,” for her vote in the U.S….

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A Fair Deal for the Homeowner

A Fair Deal for the Homeowner

Banks and other financial institutions need capital to replace losses incurred when they bought real estate mortgages that collapsed. Homeowners need capital to replace losses incurred when they signed real estate mortgages for values that collapsed. The United States Congress is bailing out the bankers but not the homeowners. Why? According to the Wall Street Journal 10/1/08, “A chorus of business leaders and trade groups urged Washington to enact a financial markets rescue plan…. General Electric Co…Verizon Communications Inc…Microsoft…AT&T…Caterpillar Inc…The…

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Eliminate Unemployment

Eliminate Unemployment

7.2 million people have lost their jobs since the start of the recession. The effects of these layoffs have been horrendous on the workers and their families. The recession is making us sick, the employed as well as the unemployed. For most, losing your job means losing your health insurance. You drop your gym membership if you have one. You delay medical care to save the cost. You eat cheaper, less healthy foods. You roam the streets applying for jobs…

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Put another Frances Perkins on the Obama Team

Put another Frances Perkins on the Obama Team

When Franklin Delano Roosevelt asked Frances Perkins to be his Secretary of Labor in 1932, she said she would accept only if he would support her social justice agenda: Federal relief and large-scale public works programs to help victims of the Depression, federal minimum wage and maximum hour’s law, a ban on child labor, and unemployment and old age insurance. The New Deal was born. These were revolutionary goals for the time, but Roosevelt agreed. “I suppose you are going…

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Is Jon Stewart Just for Laughs?

Is Jon Stewart Just for Laughs?

Peter Orszag is President Obama’s Director the Office of Management and Budget. Only 40 years old, he is the youngest member of the Obama Cabinet assigned the responsibility of developing and promoting the president’s budget. In the rescue of the U.S. financial system, Orszag, Timothy Geithner, Secretary of the Treasury, and Lawrence Summers, the Director of the National Economic Council, are the most influential in determining policy. Of the three, Orszag may have the most liberal sensitivity. Orszag recently appeared…

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Will the Obama Stimulus Work?

Will the Obama Stimulus Work?

President Obama won the battle over the American Recovery and Reinvestment Act of 2009, (also known as the economic stimulus bill) passed by Congress in February. Obama’s supporters consider the passage of this legislation a great victory. That evaluation may be premature. The stimulus must actually work to get our economy out of the doldrums. Then Obama can be congratulated for his political and economic smarts. Of course, it is too early to appraise the result. The economic stimulus bill…

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A.I.G. Bonuses – The Last Straw

A.I.G. Bonuses – The Last Straw

The national explosion of anger over the bonuses awarded to financial officers at American International Group indicates that the tipping point has been reached in the accumulated resentments on American financial inequality.. For generations, under both Republican and Democratic administrations, the income gap between the 95% of U.S. population lumped together as working class and middle class, and the 5% who earned $250,000 or more per year, has widened significantly. The 5% have more clout. They dominate U.S. politics, education,…

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