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Houses Passes $1.1 Trillion Spending Bill

Houses Passes $1.1 Trillion Spending Bill

Antiwar.com
December 10, 2009

There was a time when the federal government’s annual budget was submitted by the president and decided by the Congress in a relatively straightforward fashion. A time when it wasn’t so difficult to figure out what the government spent taxpayers’ money on.

But this is, or soon will be, 2010, and President Obama’s promises of transparency aside, the new way of doing things in the perpetual wartime economy is to pass bulky spending bills filled with anything and everything Congressmen want on an accelerated schedule, every few months.

In today’s example, a 1088 page $1.1 trillion “compromise” spending bill passed through the House of Representatives in a 221-202 vote along partisan lines. The bill covers everything from veteran’s benefits to arbitration for car dealers and, of course, a hefty raise in the foreign aid budget.

The latest massive spending bill comes less than two months after the White House signed a $680 billion “Defense Spending Bill,” which included hate crimes legislation provisions and restarted military tribunals at Guantanamo Bay.

That bill itself came just a few months after a $106 billion “emergency” war spending bill, which included a number of “pet projects,” including the so-called Cash for Clunkers program that subsidized new car purchases in return for a promise to destroy what were in many cases serviceable used cars.

Which of course came not long after the $787 billion “stimulus bill” aimed at hurling enough money at assorted government programs that the economy would improve.

When President Obama took office, he promised a more transparent budget, particularly with promises to stop requesting “emergency” war spending bills to pay for what are now several year old wars.

This promise, like so many others, will likely be ignored, as the defense budgets have projected a more rapid pullout from Iraq and did not include last week’s massive escalation of the Afghan War, itself a $30 billion addition to the annual cost. Instead, America seems poised to continue the new way of doing things, piecemeal spending bills which provide ample opportunity to include the trendy projects that Congress craves and the unclear picture of the overall cost of war that keeps the voter largely in the dark about how much the nation’s assorted adventures really cost.

 

Look Who got the economy wrong and why are they still in charge

http://www.youtube.com/watch?v=O23YCB7F5SQ

Obama’s sellout to Wall Street creates ‘permanent bailout’

 



Obama Reappoints Bernanke for Second Term

Embracing Bushonomics, Obama Re-appoints Bernanke

Mark A. Calabria
Cato @ Liberty
August 25, 2009

In re-appointing Bernanke to another four year term as Fed chairman, President Obama completes his embrace of bailouts, easy money and deficits as the defining characteristics of his economic agenda.

Bernanke, along with Secretary Geithner (then New York Fed president) were the prime movers behind the bailouts of AIG and Bear Stearns. Rather than “saving capitalism,” these bailouts only spread panic at considerable cost to the taxpayer. As evidenced in his “financial reform” proposal, Obama does not see bailouts as the problem, but instead believes an expanded Fed is the solution to all that is wrong with the financial sector. Bernanke also played a central role as the Fed governor most in favor of easy money in the aftermath of the dot-com bubble — a policy that directly contributed to the housing bubble. And rather than take steps to offset the “global savings glut” forcing down rates, Bernanke used it as a rationale for inaction.

Perhaps worse than Bush and Obama’s rewarding of failure in the private sector via bailouts is the continued rewarding of failure in the public sector. The actors at institutions such as the Federal Reserve bear considerable responsibility for the current state of the economy. Re-appointing Bernanke sends the worst possible message to both the American public and to government in general: not only will failure be tolerated, it will be rewarded.

Judge Orders Fed To Disclose Who Received Bailout Trillions

Geithner: Auditing the Fed is a “line that we don’t want to cross”

 



Potential Bailout Cost is $5 Trillion or $43K Per Household

Potential Cost For Bailout is $5 Trillion or $43K Per Household

Steve Watson
Infowars.net
October 15, 2008

The total potential cost of the financial bailout to the U.S. taxpayer is already rapidly approaching $5 trillion, over seven times as much as the meaningless $700 billion bailout bill figure.

Analysts have previously marked out the $5 trillion figure as the actual cost, now those predictions are becoming demonstratively accurate.

Meanwhile, Hank Paulson has defended government intervention, stating “There’s no doubt that the way to get the maximum bang for the taxpayers here was to invest in banks.”

Based on this Reuters summary and the sources linked within the table, here is a breakdown of the bailout’s cost to taxpayers so far.

Bailout Type
Cost To Taxpayers
$300 billion
$250billion
$25 billion
$150 billion
$700 billion+
$29 billion
$200 billion
$85 billion (+ extra request of $35 billion)
$300 billion
$4 billion
$87 billion
$200 billion+
$50 billion
$144 billion
POSSIBLE TOTAL $2.56 trillion+
NUMBER OF HOUSEHOLDS PER
U.S. CENSUS
105,480,101
POSSIBLE COST PER HOUSEHOLD
$24,26

In addition, the U.S. government has said it will temporarily guarantee $1.5 trillion (£856 billion) in new senior debt issued by banks, as well as insure $500 billion (£285 billion) in deposits in non-interest accounts, mainly used by businesses.

These figures take the potential cost to $4.559 trillion+ – or $43, 221 per household.

Furthermore, when you account for the fact that the credit default swap market is around $62 trillion, and that derivatives worldwide are worth between between $1 and $2 quadrillion, the numbers start to become meaningless.

 

Fed To Offer Unlimited Dollars
Bloomberg
October 13, 2008

The U.S. Federal Reserve led an unprecedented push by central banks to flood financial markets with dollars, backing up government efforts to restore confidence in the banking system.

The ECB, the Bank of England and the Swiss central bank will offer unlimited dollar funds in auctions with maturities of seven days, 28 days and 84 days at a fixed interest rate, the Washington-based Fed said today. The Bank of Japan may introduce “similar measures.’’ The dollar declined and some money-market rates fell.

Policy makers from the Group of Seven nations pledged at the weekend to take “all necessary steps’’ to stem a market panic after the MSCI World stock index plunged 20 percent last week. Central banks last week cut interest rates in tandem for the first time since 2001, the U.S. plans to buy $700 billion in distressed assets from banks and in Europe, the U.K. is leading a push to keep lenders afloat with taxpayers’ money.

“By providing unlimited dollar funds they are acting on the back of the G-7 plan to ensure the system is fully liquidized,’’ said Lena Komileva, an economist at Tullet Prebon Plc in London. “We’re going to see even more liquidity provided and more aggressive rate cuts are coming.’’

Read Full Article Here

Banks borrow record $437.5 billion per day from Fed
http://www.reuters.com/article/newsOne/idUSTRE49F97920081017

Millionaire Hedge Fund Trader Thanks Idiot Traders
http://www.guardian.co.uk/business/2008/oct/18/banking-useconomy

Treasury Black Out Key Parts Of Bailout Contracts
http://www.huffingtonpost.com/..136030.html

Wall Street banks in $70bn staff payout
http://www.guardian.co.uk/business/2008/oct/17/executivesalaries-banking

Homeless Numbers Alarming
http://www.usatoday.com/news/nation/2008-10-21-homeless_N.htm

House prices ‘to plummet by 35%’ – the biggest ever fall in Britain
http://www.dailymail.co.uk/news/..–biggest-fall-Britain.html

Royal Bank Of Scotland Nationalized
http://business.timesonline.co…g_and_finance/article4932250.ece

Switzerland Pumps Billions Into Bank System
http://biz.yahoo.com/ap/081016/eu_switzerland_banks.html?printer=1

UBS Gets Bailout From Swiss National Bank
http://www.chicagotribune.com..7,0,4057853.story

Dow Jones Bloodbath Mirroring 1929 Rout
http://www.prisonplanet.com/dow-jones-bloodbath-mirroring-1929-rout.html

Two More Banks Closed By Regulators
http://money…00397x1211373371x1200675175

U.S. Stocks Plunge Most Since Crash of `87 on Recession Concern
http://www.bloomberg.com/apps/news?pid..er=home

Roubini Sees Worst Recession in 40 Years, Rally’s End
http://www.bloomberg.com/apps/news?..efer=home

JPMorgan Responsible for the Destruction of U.S. Financial System
http://www.marketoracle.co.uk/Article6826.html

World May Be Lucky to Get Worst Recession Since 1983
http://www.bloomberg.com..OAeSWBCY&refer=home

Stocks On Track For Worst Year Since 1937
http://www.chron.com/disp/story.mpl/nation/6050283.html

Former Fed chief says U.S. now in recession
http://www.reuters.com/article/newsOne/idUSTRE49D2QB20081014

U.S. Economy Collapse News Archive

 



The Second Largest Bank Failure in U.S. History

The Second Largest Bank Failure in U.S. History
IndyMac Bank seized by federal regulators

AFP
July 11, 2008

The federal government took control of Pasadena-based IndyMac Bank on Friday in what regulators called the second-largest bank failure in U.S. history.

Citing a massive run on deposits, regulators shut its main branch three hours early, leaving customers stunned and upset. One woman leaned on the locked doors, pleading with an employee inside: “Please, please, I want to take out a portion.” All she could do was read a two-page notice taped to the door.

The bank’s 33 branches will be closed over the weekend, but the Federal Deposit Insurance Corp. will reopen the bank on Monday as IndyMac Federal Bank, said the Office of Thrift Supervision in Washington. Customers will not be able to bank by phone or Internet over the weekend, regulators said, but can continue to use ATMs, debit cards and checks. Normal branch hours, online banking and phone banking services are to resume Monday.

Read Full Article Here

 



U.S. Taxpayers to pay for Wall Street Banking Collapse

U.S. Taxpayers to pay for Wall Street Banking Collapse

WSWS
July 10, 2008

In speeches delivered Tuesday, Federal Reserve Board Chairman Ben Bernanke and Treasury Secretary Henry Paulson outlined the ruthless class policy being carried out to place the burden for the financial and housing crisis on the backs of working people.

Bernanke indicated that the Fed would extend its policy of offering unlimited loans to major Wall Street investment banks. The provision of Fed funds to non-commercial banks and brokerage firms, a departure from the Fed’s legal mandate without precedent since the Great Depression, is part of a policy of bailing out the banking system to the tune of hundreds of billions of dollars. The Fed announced its loan program for investment banks last March when it dispensed $29 billion to JPMorgan Chase as part of a rescue operation to prevent the collapse of Bear Stearns.

In his speech, Treasury Secretary Paulson acknowledged that home foreclosures in 2007 reached 1.5 million and predicted another 2.5 million homes would be foreclosed in 2008. But he made clear that nothing would be done to save the vast majority of distressed homeowners from being thrown onto the street.

Paulson, the former CEO of Goldman Sachs, said that “many of today’s unusually high number of foreclosures are not preventable.” With a callous indifference reminiscent of Marie Antoinette’s “Let them eat cake,” he went on to say that “some people took out mortgages they can’t possibly afford and they will lose their homes. There is little public policymakers can, or should, do to compensate for untenable financial decisions.”

In other words, low-income home owners who were lured into high-interest mortgages by predatory mortgage companies and banks are getting their just deserts! Of course, the Wall Street CEOs and big investors who made billions of dollars by speculating on these loans, creating a vast edifice of fictitious capital that was bound to collapse, are not to be held accountable for any “untenable financial decisions.” On the contrary, they are to be subsidized with hundreds of billions of dollars of credit, ultimately to be paid for by public funds.

The two speeches, presented at a Federal Deposit Insurance Corporation forum on the housing crisis held in Virginia, underscore the real social interests—those of the financial aristocracy—that are being protected by the policies of the Fed, the Bush administration, and the Democratic Congress.

Bernanke made clear that his call for an extension of loans to big investment banks is part of a more comprehensive proposal to systemize and regularize federal subsidies and bailouts for troubled banking giants. Particularly significant was the following remark: “Because the resolution of a failing securities firm might have fiscal implications, it would be appropriate for the Treasury to take a leading role in any such process, in consultation with the firm’s regulator and other authorities.” The implication is that the US Treasury should be ready to fund bank bail-outs with whatever taxpayer funds are necessary.

In neither speech was there even a hint that the government has any responsibility to protect home owners, or that the people responsible for the “lax credit and underwriting standards” that led to the current crisis might be called to account by regulators, Congress, or the courts.

 



Oil Hit Record $147, Gold $969, Euro $1.59

Oil Hit Record $147, Gold $969, Euro $1.59
On Friday Oil hit record of $147.27, Gold $969, Euro $1.5972 against the greenback, Today July 14, 2008 11:31 AM EDT Crude price sinks to $145, Gold $969, Euro 1.5859.

AP
July 12, 2008

Gold prices rose Friday, making their largest advance since first hitting $1,000 earlier this year, after another record crude rally and a tumbling stock market led jittery investors to the safety of hard assets.

Other commodities traded mostly higher, with corn, soybeans, wheat and other agriculture futures rising.

Gold’s rally suggests investors are increasingly concerned about rising inflation as Americans struggle with $4 gasoline and the U.S. dollar continues to lose ground against its main rivals.

After a week of volatile trading in the commodities complex, a myriad of dour economic developments pushed gold prices skyward: Oil soared above $147 for the first time, stocks dove on concerns that mortgage companies Freddie Mac and Fannie Mae might collapse and the dollar tumbled further against the euro.

“All of these things are a pretty good recipe for safe-haven buying into bullion,” said James Steel, analyst with HSBC in New York. “You’re really spoiled for choice on a day like this.”

Gold for August delivery added $18.60 to settle at $960.60 an ounce on the New York Mercantile Exchange, after earlier rising as high as $969.10. That was gold’s highest trading level since first cracking the $1,000 threshold on March 13 after the collapse of Bear Stearns & Co.

Nervousness about the U.S. economy, record energy prices and the falling dollar have helped propel gold 34 percent higher in the past year, but it’s not clear if the current climate is gloomy enough to push gold back into record territory.

“The $1,000 mark accompanied a bank failure the last time so it’s questionable whether the situation now is as severe, but that doesn’t mean it won’t go back to that level,” Steel said.

Other precious metals also traded higher. September silver prices added 50 cents to settle at $18.82 an ounce on the Nymex, while September copper gained 2.15 cents to settle at $3.74 a pound.

Read Full Article Here

 

Euro falls one cent vs dollar from day’s highs

Reuters
July 14, 2008

The euro fell over one cent from the day’s highs against the dollar on Monday, after the U.S. Treasury and Federal Reserve launched emergency steps to restore investor confidence in U.S. mortgage lenders Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac.

The euro fell to as low as $1.5866 on trading platform EBS, down from an intraday high of $1.5972.

 

Jim Rogers: Dollar Doomed, Fed Will Fail

http://www.youtube.com/watch?v=zhLPNdjyjyg

Recent News:

High gas prices make gas stations go out of business
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Bush acknowledges ’tough times’
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Dow Drops Below 11,000
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Stimulus Checks for the Dead
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Budget Deficit Twice as Big as Last Year’s
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World Bank’s Zoellick: Food Prices High Until 2012
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Mexican Illegal Aliens Leaving U.S.
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Experts Worry Euro Might Replace US Dollar as Primary Reserve Currency
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IMF says world economy between recession and inflation
http://uk.news.yahoo.com/rtrs/20..economy-imf-bd5ae06.html

Oil’s Rise Stirs Talk Of $200 A Barrel This Year
http://online.wsj.com/article/SB12..od=hpp_us_whats_news

Bank of Israel to buy more US dollars
http://www.jpost.com/servlet/Satel..me=JPost%2FJPArticle%2FShowFull

Bank of America CEO: Recession “feel” may last year
http://www.reuters.com/article/ousiv/idUSWNAB018220080709

Similarities between 1929 and 2008 terrifying
Emirates calls on GCC countries to depeg currencies from US dollar to curb inflation
Pension plans suffer huge losses

U.S. Economic Collapse News Archive

 



Federal Reserve Plans To Nationalize All US Banks

Federal Reserve Plans To Nationalize All US Banks

Telegraph
March 31, 2008

The US Federal Reserve is examining the Nordic bank nationalisations of the 1990s as a possible interim solution to the US financial crisis…

The Fed has been criticised for its rescue of Bear Stearns, which critics say has degenerated into a taxpayer gift to rich bankers…

A senior official at one of the Scandinavian central banks told The Daily Telegraph that Fed strategists had stepped up contacts to learn how Norway, Sweden and Finland managed their traumatic crisis from 1991 to 1993, which brought the region’s economy to its knees…

It is understood that Fed vice-chairman Don Kohn remains very concerned by the depth of the US crisis and is eyeing the Nordic approach for contingency options…

Scandinavia’s bank rescue proved successful and is now a model for central bankers, unlike Japan’s drawn-out response, where ailing banks were propped up in a half-public limbo for years…

While the responses varied in each Nordic country, there a was major effort to avoid the sort of “moral hazard” that has bedevilled efforts by the Fed and the Bank of England in trying to stabilise their banking systems…

Norway ensured that shareholders of insolvent lenders received nothing and the senior management was entirely purged. Two of the country’s top four banks – Christiania Bank and Fokus – were seized by force majeure…

“We were determined not to get caught in the game we’ve seen with Bear Stearns where shareholders make money out of the rescue,” said one Norwegian adviser…

“The law was amended so that we could take 100pc control of any bank where its equity had fallen below zero. Shareholders were left with nothing. It was very controversial,” he said…

Stefan Ingves, governor of Sweden’s Riksbank, said his country passed an act so it could seize banks where the capital adequacy ratio had fallen below 2pc. Efforts were also made to protect against “blackmail” by shareholders…

Mr Ingves said there were parallels with the US crisis, citing the use of off-balance sheet vehicles to speculate on property. All the Nordic banks were nursed back to health and refloated or merged…

The tough policies contrast with the Fed’s bail-out of Bear Stearns, where shareholders forced JP Morgan to increase its Fed-led rescue offer from $2 to $10 a share. Christopher Wood, chief strategist at brokers CLSA, says the Fed’s piecemeal approach has led to “appalling moral hazard”…

“Shareholders have been able to lobby for a higher share price only because the Fed took over the credit risk on $30bn of the investment bank’s dubious paper. The whole affair also amounts to a colossal subsidy for JP Morgan,” he said…

 

Federal Reserve SWAT Teams To Police The Economy?

NY Times
March 3, 2008

WASHINGTON — The Treasury Department will propose on Monday that Congress give the Federal Reserve broad new authority to oversee financial market stability, in effect allowing it to send SWAT teams into any corner of the industry or any institution that might pose a risk to the overall system.

[…]

Under the Treasury proposal, Fed officials would be allowed to examine the practices and even the internal bookkeeping of brokerage firms, hedge funds, commodity-trading exchanges and any other institution that might pose a risk to the overall financial system.

Read Full Article Here

 

Real Estate Price Collapse, Paradise Lost in SW Florida

http://www.youtube.com/watch?v=VgTdxEGauok

 

Recession: The Movie – Now playing everywhere

http://www.youtube.com/watch?v=x4OOCReeLWo

Recent News:
U.S. & UK To Deal With Financial Crisis
http://www.ft.com/cms/s/0/991194..000077b07658.html?nclick_check=1

Fed Bailout Of Bear Streans Looks Like Investment
http://www.businessweek.com/..4/b4078000069548.htm

German watchdog eyes $600 bln global bank losses: report
http://biz.yahoo.com/rb/080329/germany_banks_losses.html?.v=1

Weak dollar not at odds with policy: ex-US official
http://www.reuters.com/article/ousiv/idUSHKG3018120080331

Dollar Falls to Near Record Low Against Euro on Inflation Data
http://www.bloomberg.com/apps/news?pi..4V7YusRk&refer=japan

Market Plunges, Fed Acts
http://norris.blogs.nytimes.com/2008/03/31/market-plunges-fed-acts/

Paulson Claims Stimulus To Create 600K Jobs
http://news.yahoo.com/s/nm/2008.._nNh3mLV3UPKb.HQA

Paulson warns US house prices must plunge; Orders for Durable Goods in U.S. Unexpectedly Fell
http://business.timesonline.co.uk/tol/b.._finance/article3627054.ece

Paulson Backs Regulatory Overhaul, Broader Fed Role
http://www.bloomberg.com/apps/new..sid=a9LEWNdBhrf8&refer=home

Is Cheney betting on Economic Collapse?
http://www.informationclearinghouse.info/article13851.htm

Fed Auctions Another $50 Billion To Banks
http://news.yahoo.com/s/ap/200..vxGaVFf7P_qKL62bAV9mpv24cA

Paulson To Visit China Next Week
One In Six West Virginians On Food Stamps
Bush: Rebate Checks Will Make Economy ‘Stronger Than Ever Before’
Eurozone Struggles With Inflation
USA 2008: The Great Depression
Fed Official: U.S. Slipping Into Recession
Investment Firms Tap Fed For Billions

U.S. Economic Collapse News Archive