Posts Tagged ‘economy’

Today’s News

Monday, July 20th, 2009

Obama Demands: The Bill I Sign Must Include Public Option – “[A]ny plan I sign must include an insurance exchange: a one-stop shopping marketplace where you can compare the benefits, cost and track records of a variety of plans – including a public option to increase competition and keep insurance companies honest – and choose what’s best for your family.”

White House Plans to Use DeMint’s “Waterloo” Quote to Rally the Troops – Sen. Jim DeMint, R-S.C., said, as Ben Smith at Politico reported, “If we’re able to stop Obama on this, it will be his Waterloo. It will break him.”

Orszag: Republicans Trying To Kill Health Care Reform Through Delay – “There are those that are advocating delay just as a desperation move to try and kill this.”

Subprime Brokers Resurface as Dubious Loan Fixers – FedMod is but one example of how many of the same people who dispensed risky mortgages during the real estate bubble have reconstituted themselves into a new industry focused on selling loan modifications.

ETO News of the Day

Monday, June 1st, 2009

General Motors files for bankruptcy protection – The plan is for the federal government to take a 60 percent ownership stake in the new GM. The Canadian government would take 12.5 percent, with the United Auto Workers getting a 17.5 percent share and unsecured bondholders receiving 10 percent. Existing GM shareholders are expected to be wiped out.

Doctor decries Tiller killing – “I’m profoundly sad and I’m furious and I think the American people need to understand that we have a fascist movement in this country,” Dr. Warren Hern told The Colorado Independent on Sunday. “We don’t have to invade Iraq to find terrorists. They’re right here killing abortion doctors.”

State pay cut likely – [I]t’s virtually certain that he’ll cut state workers’ paychecks again. The only question is how he’ll get it done.

Questions for General McChrystal – The Senate owes the American people more than a pro forma confirmation of Lt. Gen. Stanley McChrystal, President Obama’s choice to be the next United States military commander in Afghanistan.

Despite Critics, Judge Sotomayor May Find Votes in G.O.P. – Notwithstanding fierce criticism from the likes of Rush Limbaugh and Newt Gingrich, there is scant evidence of solid opposition from Republican senators. Indeed, strategists on both sides say that one-third or more of the 40 Senate Republicans may vote to confirm her.

Bernie Madoff’s Secretary Spills His Secrets

Wednesday, May 6th, 2009

From Vanity Fair:
After spending two months helping the F.B.I. gather evidence against her former boss, Squillari, a 59-year-old mother of two from Staten Island, returned a call from V.F.’s Mark Seal, who had contacted her in connection with the eye-opening Madoff story he wrote in the magazine’s April issue. Seal and Squillari ended up collaborating on a first-person account of Squillari’s time with Madoff, whom she knew as well as anyone outside his family.

Interview with Bernie Madoff’s former Secretary here

Obama Explains Real Cause of The Recession

Tuesday, April 14th, 2009

Obama: Irresponsibility caused recession

[Video]:

Visit msnbc.com for Breaking News, World News, and News about the Economy

Allen Stanford: Defiant, Tearful

Monday, April 6th, 2009

Flamboyant financier ‘Sir’ Allen Stanford expects to be indicted by a federal grand jury in the next two weeks, he told ABC News in an interview in which he cried, denied wrongdoing and threatened to punch his questioner in the mouth.

More at ABC News

Pilgrim’s Pride Lays Off More Workers

Friday, April 3rd, 2009

Today, Pilgrim’s Pride announced that it was laying off approximately 115 of its administrative staff. The eliminated positions were mostly at the company’s corparate headquarters in Pittsburg, TX.

Today’s News

Friday, April 3rd, 2009

As Crisis Loomed, Geithner Pressed But Fell Short – In September 2005, Timothy Geithner made one of his most visible moves as a supervisor of the U.S. banking system. He summoned the nation’s top financial firms and their regulators to streamline an antiquated system that threatened Wall Street’s boom.

Jobless Rate Hits 8.5% After 663,000 Jobs Lost in March – The American economy shed another 663,000 jobs in March, the government reported Friday, bringing the toll of job losses during the recession to 5.1 million.

Palin Wants Senate Do-Over In Alaska – Gov. Sarah Palin and the head of the Alaska Republican Party said Thursday that Sen. Mark Begich should give his Senate seat up to a special election now that prosecutors have abandoned their case against Ted Stevens.

Obama Calls Out European “Anti-Americanism” And American “Arrogance” – Urging a common effort to restructure the world economy and rebuild international alliances, President Barack Obama did not hesitate on Friday to call out his own country for “arrogant” patriotism and Europe for “insidious” anti-Americanism.

Unanimous ruling: Iowa marriage no longer limited to one man, one woman – “The Iowa statute limiting civil marriage to a union between a man and a woman violates the equal protection clause of the Iowa Constitution,” the justices said in a summary of their decision.

Too Many Cars, and They’re Not on the Road – “There was a car bubble,” Steven Rattner, who President Obama recruited to head a Treasury Department group charged with finding solutions to the mountain of problems facing the American auto industry, said in an interview last month. “We had this artificially high sales rate.”

AIG May Have Received Bailout Funds Illegally

Thursday, April 2nd, 2009

The Institutional Risk Analyst has put together a great article on how AIG got into the Credit Default Swap business.

Basically, AIG, Gen Re and others used reinsurance to fraudulently transfer Liability from ceding companies (lowering the ceding company’s reserve requirements, increasing the ceding company’s capital, etc) by using “side letters” which absolved AIG from actually paying on any losses it reinsured.

“It was easy for AIG to become addicted to the use of side letters. The firm, which had already encountered serious financial problems in 2000-2001, reportedly saw the side letters as a way to mint free money and thereby help the insurer to look stronger than it really was. AIG not only helped banks and other companies distort and obfuscate their financial condition, but AIG was supplementing its income by writing more and more of these reinsurance deals and mitigating their perceived exposure via side letters.”

When the AIG managers realized “that state insurance regulators and the FBI where on to the reinsurance/side letter scam”, AIG moved the reinsurance/side letters model to create Credit Default Swaps (CDS) for finance firms; unregulated “insurance” for securities of derivatives and sub-prime mortgages.

The article concludes that AIG received bailout funds illegally from the Fed and Treasury, because AIG then gave those funds to counter-parties like Goldman Sachs to make them whole on losses that were a result of illegal AIG CDS contracts.

The entire article is worth reading.