And So I Go: Yesterday, Today and Tomorrow

Archive for the ‘Stimulus Plan 2009’ Category

I know that vice President Biden is a dodo bird but sometimes he really says something that is so over the top and in this particular case these are not even his words but a slogan he was told to proclaim: “Bin Laden is dead and General Motors is alive,” Biden said during a speech in New York City. He added that “the reverse” might be  true had Romney been president.”

Well that may very well be true but the fact is that  General Motors now we are finding out that we didn’t keep this dog alive for Americans but for the Chinese.  Yes!  GM is building a plant in China!

But wait!  The story doesn’t stop here.  GM was kept alive for the union workers at GM.  The United Auto Workers Union  who gave billions of union dues to Obama  needed to keep their high paying jobs and very lucrative benefits  but the company (General Motors) that they worked for was going broke.  Tax payers money was used to “save” the company, build an electric car that no one will buy because it doesn’t work, pay wages of union workers,  take over and guarantee with tax payers dollars the lucrative retirement benefits of union workers,  pay for the union workers health care now and after retirement and then to exclude these same workers from having to use the Obamacare that was foisted on the rest of us.  Several months ago a  reporter followed some workers in a GM Chrysler plant in Detroit and taped them drinking and smoking pot on their lunch hour.  He showed these tapes to the company and the workers were fired.   Well according to union rules these workers are allowed to take their case to arbitration if they disagree with the company’s decision.  Today I heard on Varney and Company (FOX BUSINESS) that the arbitration board ruled that the worker must be given his job back!

It all just gets better and better for dishonest Americans and thugs and other friends of Obama.  BB

Government Stupidity – Gov’t insanity: You won’t believe whatthis former Obama economic advisor just said.

From Economic Policy Journal:

Greg Mankiw points to this Larry Summers comment on the Charlie Rose Show:

Never forget, never forget, and I think it’s very important for Democrats especially to remember this, that if Hitler had not come along, Franklin Roosevelt would have left office in 1941 with an unemployment rate in excess of 15 percent and an economic recovery strategy that had basically failed.

Economist Robert Higgs has ripped apart the notion that war is good for an economy. And in particular, he has focused on World War II. On release of Higgs’ book, Depression, War, and Cold War: Challenging the Myths of Conflict and Prosperity, the publisher wrote:

[Higgs] provides clear evidence FDR’’ New Deal actually prolonged the Great Depression and that World War II did nothing to create prosperity…

Go to the site and read the entire article.  This is an eye opener.  Sometimes I am just too upset to read an article all at once and this was one of those times.  BB

 

» Government Motors, Part II: Lobbyists Tops in the Bailout Business – Big Government.

Remember the automobile company and union workers the Obama administration  bought with your tax dollars?  Well this same automobile company and its unions are using your tax dollars to pay lobbyist to glad hand and pay off Congressmen for their votes to give the automobile companies even more of your tax dollars!   AND, if that doesn’t get you just take a look at other companies bailed out  with your Tax dollars  are  paying lobbyists with this money to extort more from you.  BB

Government Motors, Part II: Lobbyists Tops in the Bailout Business

by Peter Flaherty

From the 1st quarter through the 4th quarter of 2010, GM’s lobbying expenses more than doubled from $1.8 million to $3.89 million – a 113% increase.  After all, when the government is your largest shareholder, your company execs will inevitably be spending an inordinate amount of time cozying up to Washington politicians.

Moreover, GM’s lobbyist team reads like a who’s who of the government bailout business. And why wouldn’t it?  When you’re lobbying Washington to privatize gains for your clients and socialize their losses among taxpayers, you hire those firms with the most experience representing other notorious companies that received massive bailouts by U.S. taxpayers — Fannie Mae, Freddie Mac, Goldman Sachs, AIG and others.

GM’s Lobbying Bench – Reported income from other government bailout recipients

–        The Duberstein Group: $600,000 in lobbying for Fannie Mae and $2.3 million for Goldman Sachs

–        Dutko Worldwide: $359,000 in lobbying for AIG

–        Public Strategies: $900,000 in lobbying for Fannie Mae and $960,000 of lobbying for Freddie Mac

–        The Nickles Group: $840,000 in lobbying for AIG

–        Davis & Harman: $1.48 million in lobbying for Merrill Lynch

–        Bob Moss Associates: $470,000 in lobbying for Freddie Mac

–        Clark Lytle & Geduldig: $360,000 in lobbying for Fannie Mae and $240,000 from Goldman Sachs

Source: Senate Lobby Disclosure Reports

 

More of your tax dollars being spend at Government Motors GM.  BB

Government Motors, Part III: GM’s Incentive Spending

by Peter Flaherty

3. GM’s Incentive Spending:  Slashing prices through discounts and incentives to juke market share is not a healthy business model

Famed investor Warren Buffett once said, “If you have to have a prayer session before raising prices by ten percent, then you’ve got a terrible business.”  So, what does it mean if your business is slashing prices month over month through discounts and other incentives? Take a look at the graph below.

From GM’s IPO last November through February, the incentives and discounts the company is offering to consumers have increased from 29.8% above the industry average to more than 50% above industry average according to Edmunds.com.

What this means is simple: Yes, GM can crow about its 46% sales surge in February, as it did last week.  But what they aren’t telling you is they are offering discounts and incentives 50% higher than the industry average helping to inflate their numbers, and that these discounts have grown by leaps and bounds every month since the IPO.

During GM’s IPO announcement in November, the company promised that it would offer fewer incentives that crimped margins.  In February, GM Vice President Rick Scheidt said regarding incentives “it’s way to close to the bankruptcy for us to be sliding back into old habits.  We know everybody’s watching.”  Last week, GM said it will fall back to regular industry incentive levels in March.

Yet, the same week, GM announced a new 72-month, interest free financing plan on several GM models.  The announcement prompted Edmunds auto-analyst Jeremy Anwyl to note “GM’s rhetoric has been saying one thing – discipline, discipline, discipline – and their actions have been going completely in another direction.”

 

The Wall Street Journal’s Evan Newmark remarked “We learned that GM North America is back to juicing incentive payments and boosting fleet sales, two of the very practices that got the ‘old’ GM into trouble.”

And Automotive News analyst Jamie Lareau said, “GM chased that market share right into federal bankruptcy court in 2009.  Here’s hoping history doesn’t repeat itself.”

We couldn’t agree more.

A Historic Flood of Red Ink | The Weekly Standard.

Obama has cause a historic flood of red ink and his latest budget will put our nation $7 TRILLION  further in debt (he is trying to tell us it will “save” $3 trillion!).  Yet this “Thing” rather than sticking to his own business is sticking his nose and his political organization Organizing for America in the middle of  a battle to save the state of Wisconsin.   There are simply no words for Obama  anymore, simply none that I and my dictionary find adequate at any rate.

 

The following article from the Weekly Standard is an eye opener.  I have only copied over a portion of the article so to read the entire article do click the reference above.  BB

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Let’s try to put that into historical perspective (the source for all of these figures is the White House Office of Management and Budget’s historical tables):

* In actual dollars, President Obama’s $4.4 trillion in deficit spending in just three years is 37 percent higher than the previous record of $3.2 trillion (held by President George W. Bush) in deficit spending for an entire presidency. It’s no small feat to demolish an 8-year record in just 3 years.  (And yet the MSM aren’t saying a word about this.  In fact they are out there praising their presidents efforts at “budget reform”. BB

* In inflation-adjusted dollars, President Obama’s $3.8 trillion (in constant fiscal-year 2005 dollars) in deficit spending in just three years is nearly double our $2 trillion (in constant fiscal-year 2005 dollars) in deficit spending in the five fiscal years during which we were fighting World War II (FY 1942-46). It’s no small feat to nearly double the United States’ inflation-adjusted deficits during the largest conflict in human history, and to do so in less time than it took American GIs to fight that two-front war.

* As a percentage of the gross domestic product (GDP), President Obama’s average annual deficit spending is 9.7 percent of GDP. That’s higher than during any single year of the Great Depression, the Cold War, the Korean War, or Vietnam. In fact, the only deficits in more than 200 years of American history that have exceeded even 6 percent of GDP have all involved either the Civil War, World War I, World War II, or President Obama.

* In average annual deficit spending as a percentage of GDP, the nearby chart shows how President Obama stacks up against other presidents who have served during the past four decades.

* The Obama deficit legacy, moreover, will be felt well beyond his tenure in office, especially if that tenure extends beyond a single term. First, Obama’s spending through 2012 essentially doesn’t include Obama-care. The CBO projects that Obama-care will increase spending by more than $2 trillion in the overhaul’s real first decade (2014 to 2023). That’s more than $2 trillion that could -otherwise be used to pay down the debt, rather than allowing the debt to rise continually and then piling a massive new entitlement program on top of it.

Second, President Obama’s gargantuan deficit spending will hamstring future efforts to make ends meet. Under Obama’s own projections, interest payments on the debt are on course to triple from 2010 (his first budgetary year) to 2018, climbing from $196 billion to $685 billion annually. Under his projections for 2018, interest payments on the debt will exceed all defense spending, including wartime spending. Think about that: In the first budgetary year after the next presidential term, our creditors are projected to get more money than our military.

At the end of 2008, just before President Obama took office, the national debt was $9.986 trillion and 69 percent of GDP. Under his projections, eight years later it will be $20.825 trillion and 104 percent of GDP. That’s right: Our debt will soon exceed our national economic output for an entire year. And that’s even if you believe the president’s rosy projections of 4 percent real GDP growth over the next four years, considerably higher than the 2.7 percent achieved over the past quarter-century and the 3.2 percent over the past half-century.

To correct our course, we need to advance real entitlement reform and repeal the looming entitlement that could be the boulder that breaks the camel’s back: Obamacare. House Republicans need to produce a serious budget that offers real entitlement reform, as they appear poised to do. (I very much disagree with this authors opinion because the Old Dog Republicans are pansy butts too!  BB) Actually enacting entitlement reform, however, will require presidential leadership. The most effective champions of bold fiscal prudence on Capitol Hill and in the statehouses, respectively, have been Representative Paul Ryan and Governor Chris Christie. In the wake of President Obama’s wildly unprecedented deficit spending, such leadership is now needed at the presidential level.

Jeffrey H. Anderson was the senior speechwriter for Secretary Mike Leavitt at the U.S. Department of Health and Human Services.

Obama to call for $53B for high-speed rail – Yahoo! News.

Every time I think this man has hit the top rail in stupidity he one ups me.  Amtrack has been a white elephant from it’s beginning and we have bridges and tunnels all over our country  caving in and falling into rivers  not to mention a national debt that is about to bankrupt us and turn the United States into a banana republic so what does the wise one in the White House propose?  A $53 billion start up fund for high speed rail.

You can read the whole story if you want.  I just couldn’t stomach bringing it over to my web site.  BB

Brilliant Elitist Line of the Day… | The Gateway Pundit.

Unemployment uder the Republicans and President Bush was 5% and under the Democrats and Obama is 10%  WE MUST REMEMBER THIS.  I expect the economy to start picking up not only because the Bush Tax cuts were allowed to stay in place for two years ( should have been permanent!)  but because the Republican House will try to get thru measures that will take the government off people’s backs.  When the economy improves it is generally and often erroneously credited to the President and he gets re-elected.  We the People can not allow the voters to forget  during the next two years the real history and facts of the past three years.  All the damage done by Obama and the Democrats will be but a pimple compared to what he will do in a second term.  BB
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Brilliant Elitist Line of the Day…

Posted by Jim Hoft on Monday, December 27, 2010, 12:30 PM

James Suroweiki at The New Yorker is hands down today’s elitist winner.

“The recession has been over for more than a year now, but so many people are out of work that it doesn’t feel like much of a recovery.”

That’s some recovery, boys.
The democrats doubled the unemployment rate from where it was when they took over Congress in 2007.

(Source: US Misery Index)

48 of 50 states have lost jobs since Obama rammed through his Trillion dollar stimulus bill. The Obama-Pelosi economic plan resulted in a cumulative 7.5 million jobs deficit. In fact, Barack Obama is the worst jobs president since the Great Depression.

It sure is a good thing Barack Obama ended that recession, huh?

Today’s Runner Up… NYT Paints Fairy Tale Caricature of Obama

Nearly half of US households escape fed income tax – Yahoo! Finance.

I get so angry when I hear people saying, “Tax the rich!”  I get even more angry when the Democrats  use this as a tool to try to  divide the country  in Haves and Have-nots.   The so-called “rich” are already being taxed to support the other half of the people in the United States who pay no taxes at all!  The very rich billionaires   pay 35% of the taxes in the United States although they represent less than 1% of the population. The Democrats have pushed this lie that the rich are oppressing the poor so long that the truth has been lost. It is a case of say it often enough and it becomes the truth regardless.  Now the Democrats have spent so much that even they have become aware of the dire straits this country is in. Suddenly after spending like money grew on trees  and the need for money  to keep spending since the world has put the brakes on their borrowing  the Democrats  want to cut the tax cuts given under President Bush.  Cutting taxes and putting more money in the hands of the people has proven again and again to be the most effective way for the government to GET MORE MONEY THRU TAXING INCOME.  When the people have more money to spend and invest in business there are more people working and therefore more income to tax.  It is so easy to understand but apparently the Democrats and Progressives have a mental block here.

Another fact: it wasn’t until the Democrats came into power in 2006 that our nation began the long dip into the depression we are in now.  It was the  wheeling and dealing that Democrat Barney Frank Chairman of the House Finance Committee and Democrat Sen. Chris Dodd Chairman of the Senate Banking  Committee  stuck their grasping fingers into the  mortgage market demanding banks lend money to people who could not afford to buy a house and then covered these dirty deals up by insisting all was well when President Bush was calling for investigations into Freddie Mac and Fanny Mae that the crisis finally came to a head and the finance industry  came crashing down.

President Bush was in the White House and got suckered into this mess of Bail Outs but it was the Democrats in Congress who voted for them.  Many Republicants and a good many citizens were against the Bail Outs!

So when the crisis that had been allowed to occur  when the Democrats controlled Congress what did the Democrats do?  They did what the Democrats always do: they threw a lot of money at the banks and  even more into the federal government.  Yes all this money was first given to federal agencies to  then give to the banks.  Of course the agencies had to be funded for this service so they took their cut off the top.  They then hired more people so that the agencies in the government could keep growing and growing and spending and spending.   Bigger and Bigger government.  The government agencies got the lions share of the TARP money and the Stimulus money!  Money the nation did not have and had to borrow!

Now the Democrats can only think of taxing the “rich”.  They consider the ‘rich” any couple who makes over $250,000 a year.  People please understand these are  the small business people who employ most of the working people in this country.  By letting the Bush Tax cuts expire the taxes on these people will go back up to the 40%.   This at a time when   money is needed by the people who do the hiring and creating jobs for the rest of us!  Of course they are now referring to just allowing the Bush Tax Cuts to continue as the Obama Tax Cuts.

Anyhow, this article tells exactly who pays taxes in this country and believe me it is not me because I am part of the 47% of people who pay no  INCOME taxes.  In fact, being retired on Social Security I was one who  received   a check from the government on two occasions to boost my income from tax payers who had paid taxes.  It is one thing to get some of your own taxes back but it is an  entirely different thing to get money from the government that comes from other tax payers because you personally do not pay taxes.  I and a good many of you ( 47% of us in fact)  PAY NO INCOME TAXES.  What we do pay is the Social Security and Medicare/Medicaid taxes.  BB

Stephen Ohlemacher, Associated Press Writer, On Wednesday April 7, 2010, 5:38 pm EDT

WASHINGTON (AP) — Tax Day is a dreaded deadline for millions, but for nearly half of U.S. households it’s simply somebody else’s problem.

About 47 percent will pay no federal income taxes at all for 2009. Either their incomes were too low, or they qualified for enough credits, deductions and exemptions to eliminate their liability. That’s according to projections by the Tax Policy Center, a Washington research organization.

Most people still are required to file returns by the April 15 deadline. The penalty for skipping it is limited to the amount of taxes owed, but it’s still almost always better to file: That’s the only way to get a refund of all the income taxes withheld by employers.

In recent years, credits for low- and middle-income families have grown so much that a family of four making as much as $50,000 will owe no federal income tax for 2009, as long as there are two children younger than 17, according to a separate analysis by the consulting firm Deloitte Tax.

Tax cuts enacted in the past decade have been generous to wealthy taxpayers, too, making them a target for President Barack Obama and Democrats in Congress. Less noticed were tax cuts for low- and middle-income families, which were expanded when Obama signed the massive economic recovery package last year.

The result is a tax system that exempts almost half the country from paying for programs that benefit everyone, including national defense, public safety, infrastructure and education. It is a system in which the top 10 percent of earners — households making an average of $366,400 in 2006 — paid about 73 percent of the income taxes collected by the federal government.

The bottom 40 percent, on average, make a profit from the federal income tax, meaning they get more money in tax credits than they would otherwise owe in taxes. For those people, the government sends them a payment.

“We have 50 percent of people who are getting something for nothing,” said Curtis Dubay, senior tax policy analyst at the Heritage Foundation.

The vast majority of people who escape federal income taxes still pay other taxes, including federal payroll taxes that fund Social Security and Medicare, and excise taxes on gasoline, aviation, alcohol and cigarettes. Many also pay state or local taxes on sales, income and property.

That helps explain the country’s aversion to taxes, said Clint Stretch, a tax policy expert Deloitte Tax. He said many people simply look at the difference between their gross pay and their take-home pay and blame the government for the disparity.

“It’s not uncommon for people to think that their Social Security taxes, their 401(k) contributions, their share of employer health premiums, all of that stuff in their mind gets lumped into income taxes,” Stretch said.

The federal income tax is the government’s largest source of revenue, raising more than $900 billion — or a little less than half of all government receipts — in the budget year that ended last Sept. 30. But with deductions and credits, especially for families with children, there have long been people who don’t pay it, mainly lower-income families.

The number of households that don’t pay federal income taxes increased substantially in 2008, when the poor economy reduced incomes and Congress cut taxes in an attempt to help recovery.

In 2007, about 38 percent of households paid no federal income tax, a figure that jumped to 49 percent in 2008, according to estimates by the Tax Policy Center.

In 2008, President George W. Bush signed a law providing most families with rebate checks of $300 to $1,200. Last year, Obama signed the economic recovery law that expanded some tax credits and created others. Most targeted low- and middle-income families.

Obama’s Making Work Pay credit provides as much as $800 to couples and $400 to individuals. The expanded child tax credit provides $1,000 for each child under 17. The Earned Income Tax Credit provides up to $5,657 to low-income families with at least three children.

There are also tax credits for college expenses, buying a new home and upgrading an existing home with energy-efficient doors, windows, furnaces and other appliances. Many of the credits are refundable, meaning if the credits exceed the amount of income taxes owed, the taxpayer gets a payment from the government for the difference.

“All these things are ways the government says, if you do this, we’ll reduce your tax bill by some amount,” said Roberton Williams, a senior fellow at the Tax Policy Center.

The government could provide the same benefits through spending programs, with the same effect on the federal budget, Williams said. But it sounds better for politicians to say they cut taxes rather than they started a new spending program, he added.

Obama has pushed tax cuts for low- and middle-income families and tax increases for the wealthy, arguing that wealthier taxpayers fared well in the past decade, so it’s time to pay up. The nation’s wealthiest taxpayers did get big tax breaks under Bush, with the top marginal tax rate reduced from 39.6 percent to 35 percent, and the second-highest rate reduced from 36 percent to 33 percent.

But income tax rates were lowered at every income level. The changes made it relatively easy for families of four making $50,000 to eliminate their income tax liability.

Here’s how they did it, according to Deloitte Tax:

The family was entitled to a standard deduction of $11,400 and four personal exemptions of $3,650 apiece, leaving a taxable income of $24,000. The federal income tax on $24,000 is $2,769.

With two children younger than 17, the family qualified for two $1,000 child tax credits. Its Making Work Pay credit was $800 because the parents were married filing jointly.

The $2,800 in credits exceeds the $2,769 in taxes, so the family makes a $31 profit from the federal income tax. That ought to take the sting out of April 15.

Internal Revenue Service: http://www.irs.gov

Tax Policy Center: http://www.taxpolicycenter.org

Reluctant Realtors: Fannie, Freddie – WSJ.com.

Interesting article that tells exactly why I was so against the government bail outs and  the federal government taking over the ownership of the two private mortgage companies Fannie Mae and Freddie Mac.  Yes, Fannie Mae and Freddie Mac were private finance and mortgage companies that should have been allowed to fail!  along with all the others that had thru poor management practices gotten themselves into trouble.

Our government has no business being in the real estate business!  But thanks to our Congress and Obama we are now the owners of 191,000 homes.  The rate the government is taking over the ownership of homes that have been foreclosed on is now skyrocketing and no ending in sight as long as the economy is  in depression mode.  As you all know  homes must be taken care of, it’s called upkeep and if they are not kept up they can not be sold.  Tax payers are paying the utility bills, lawn service, pool maintainance  and all other costs related to the ownership of a home.  In this case 191,000 PLUS PLUS PLUS!

This being constitution Day I might point out that the government ownership of anything related to commerce is unconstitutional.  But then our Congressmen and women have made it clear they have no idea what the Constitution says and actually hold the Constitution in contempt.  President Obama and the Progressives say the Constitution is a work in progress and as written is outdated.  I personally feel it is the greatest document ever written to govern mankind, and that it is as alive today as it was the day it was written.  Every problem we have as a nation can be  solved by using the principles laid out in the Constitution.  It is when we move away from these principles that we lose our way.  We have been moving away from the law of the Constitution for over a century now and we must if we are to survive as a nation return ti its guidance.  BB  BB

Rising number of small banks are becoming TARP ‘deadbeats’.Those of you who have been with me for  awhile know that I raised my hackles and  the posts flew out of my keyboard over the TARP program (that was before they called it TARP and just called it what it was and is:  BAILOUTS.)  As it turned out Wall Street didn’t need the money because as soon as the Congress decided after the fact to put some strings and regulations on these funds they started coming back to the Treasury and with interest and penalty payments even.  The big guys wanted the government  out ASAP.  TARP was by any standards if measurement you want to use a complete failure to stimulate the economy.  It was however a complete success at putting our great grandchildren in debt and causing the economy to continue downwards due to this high federal debt.

Then of course we also had the Stimulus Plan, huge Budget and more bailouts and government actually taking over private businesses (auto industry, Freddy Mac and Fannie Mae).

The banks that got government funds were supposed to lend out the money but of course they didn’t because with the economy going sour they didn’t want to be part of those who went out of business.    Now we see they are not even paying their interest payments on what was supposed to be a “loan”.

But not to worry after all this is the federal government and everyone knows the feds only come after the peons like you and me who might owe the government a coupler hundred dollars at most.  You see peons can be frightened by the tough talking federal lackeys.  (Lackeys who are very well paid by the way!)

Rising number of small banks are becoming TARP ‘deadbeats’

A Treasury report shows that more than 120 institutions have  missed their quarterly dividend payments.

A Treasury report shows that more than 120 institutions have missed their quarterly dividend payments. (Mark Lennihan)

By Brady Dennis

Tuesday, September 14, 2010

Big Wall Street firms have the most bruised public reputations, but it’s a collection of smaller banks that continues to plague the Treasury Department’s bank bailout program.

The latest report from the agency shows that more than 120 institutions – nearly all of them small banks – have missed their scheduled quarterly dividend payments, which is more than a sixth of the banks that received federal aid during the financial crisis.

In addition, five banks that received capital injections from the $700 billion Troubled Assets Relief Program have failed altogether, making it highly unlikely that taxpayers will recover the nearly $3 billion poured into those institutions.

The Treasury report showed that at the end of August, a record six banks each missed six dividend payments. Saigon National Bank in Southern California has missed seven.

The rising number of “deadbeat” banks, as they are known, has prompted calls for Treasury officials to take action to protect taxpayers’ investment.

The bailout legislation gives the Treasury the authority to appoint two members to the boards of banks that miss six or more dividend payments, but the agency has refrained from doing so.

In its report, the Treasury stated that in weighing whether to exercise its option to appoint directors, it would “prioritize” institutions in part based on whether the government’s investment in the bank exceeds $25 million.

That list includes AnchorBank of Wisconsin, which received $110 million, and Seacoast National Bank of Florida, which received $50 million.

“We are exploring a number of options on how to properly exercise our contractual rights so to best protect the interests of taxpayers,” Treasury spokesman Mark Paustenbach said.

Administration officials are quick to point out that, overall, the TARP program has fared far better than initial projections and that the estimated cost of the program has continued to dwindle. (The nonpartisan Congressional Budget Office recently lowered the projected final cost to $66 billion.)

They say that while the missed payments from an increasing number of community banks are a legitimate problem, the amount of taxpayer money at stake pales in comparison with the government investments in companies such as General Motors and insurance giant American International Group.

In addition, they note that taxpayers have already recovered three-quarters of the TARP funds invested in banks.

Others expect the problem of missed dividend repayments to continue to grow as small banks continue to struggle with the lagging economy and troubled loan portfolios. Most large and healthy banks long ago repaid their aid and exited the bailout program.

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“The number of institutions missing their dividends will tend to go higher,” said Linus Wilson, a finance professor at the University of Louisiana at Lafayette who has monitored the government’s aid efforts. “You have the really strong institutions leaving the program, and the not-so-strong ones tend to get worse.”

During the crisis, the Treasury pledged to give aid only to banks that were in relatively good shape but that needed help to weather the financial upheaval. Looking back, Wilson said, some of the government’s investments “were really speculative at the time.

He cited CIT Group, which failed despite a $2.3 billion infusion of taxpayer money, and OneUnited, the Massachusetts-based bank that has missed six dividend repayments and has come under scrutiny for seeking help from U.S. Reps. Barney Frank (D-Mass.) and Maxine Waters (D-Calif.).

Wilson said the wave of missed payments also should stoke skepticism about the administration’s plan to make more taxpayer money available to community banks through a small-business bill that the Senate is expected to take up this week. Among other things, the legislation would create a $30 billion fund that smaller banks could tap to extend loans to businesses.

Administration officials have insisted that weak or troubled banks would be excluded from the program and note that, to participate, a bank’s federal regulator must deem it viable.

Morning Bell: Blaming Bush Doesn’t Create Jobs | The Foundry: Conservative Policy News..

Very good article from Heritage.  Do go to the referenced articles for a real eye opener which is especially important since the economy is on it’s way to another big and bigger downward dive.  BB

In January 2009 after it became clear that the leftist majority in Congress would pass President Barack Obama’s $862 billion economic stimulus bill without a single vote from a Republican, Speaker Nancy Pelosi (D-CA) defended her partisan approach, telling Politico: “Yes, we wrote the bill. Yes, we won the election.” Last Friday, some 19 months after the stimulus bill became law, the Labor Department issued its monthly jobs report showing the U.S. economy shed 131,000 jobs and unemployment tread water at 9.5% as 181,000 workers left the workforce entirely. These numbers are so terrible that the Federal Reserve is expected to downgrade its assessment of the U.S. economic outlook when it meets tomorrow. Desperate to shift blame away from her economic policies, Speaker Pelosi released a statement Friday blaming President George W. Bush for the economy’s anemic recovery: “Today’s report shows our teachers, police officers, firefighters, and nurses are still feeling the worst of the Bush recession.”

Notice how Speaker Pelosi is only concerned about the economy’s effect on government and unionized workers: teachers, police officers, firefighters and nurses. If you happen to work for the government, Speaker Pelosi is prepared to move heaven and earth to make sure your pay isn’t cut. But if you work for the private sector, Speaker Pelosi has nothing to offer you but higher taxes. That is why she is calling back the House to vote on another state government bailout. This time the price tag is $26.1 billion, funded in part by $11 billion in tax hikes on U.S. companies that compete internationally.

Speaker Pelosi can try to play the blame game all she wants, but the facts of her economic record are rapidly catching up with her. Since becoming Speaker in 2007, Pelosi has embarked on an unprecedented deficit spending spree, including a $700 billion financial bailout, a first $186 billion stimulus, a second trillion dollar stimulus, a $1.5 trillion health care expansion, a $447 billion omnibus spending bill and a $15 billion doc fix/Medicaid bailout. All told, since Speaker Pelosi first took the gavel, discretionary spending has jumped 25%. The results of the Speaker Pelosi Spendapalooza? Since Pelosi became speaker in 2007, the nation’s unemployment rate has risen from 4.6% to a high of 10.2%, to today’s 9.5%.

What Speaker Pelosi and her leftist colleagues in Congress just do not understand is that government spending does not reduce unemployment. The resources the government spends do not materialize out of thin air—they are taken from the private sector. Government spending substitutes for private sector investment; it does not supplement it. Increased government hiring does not increase the total number of jobs in the economy. Money spent on government jobs creates new jobs in government, but it also takes jobs away from the private sector. The result is fewer jobs overall. Studies of Sweden’s labor market show that for every 100 new jobs the government creates, 114 jobs in the private sector are eliminated. Other studies have shown that countries with greater government spending and larger public sector payrolls have higher unemployment.

The only thing worse than Speaker Pelosi’s accomplished spending spree is her hoped-for record tax hike. Despite a 9.5% unemployment rate, Speaker Pelosi wants to raise taxes on those businesses that earn 72 percent of all small business income and pay 82 percent of all small business income taxes. Speaker Pelosi doesn’t seem to care that small businesses generate about two out of every three new jobs during recoveries. And why should she? As long as unemployment remains high, she’ll just blame Bush.


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