Archive for category Economy

11 Banks Still ‘Too Big To Fail’

TBTF

Via HuffPo:

Eleven of the nation’s largest banks have failed to convince federal regulators they could safely be wound down if they neared failure, government authorities said Tuesday, reinforcing the idea that they are too big to fail.

The Federal Deposit Insurance Corp. said October blueprints submitted by banks, including JPMorgan Chase, Goldman Sachs and Bank of America, detailing how they think they’d be resolved in bankruptcy if they neared collapse were “not credible.” The Federal Reserve, another bank regulator, said the so-called living wills need significant improvement by July 2015 or the government may force them to shrink.

…The phenomenon known as too big to fail is based on the notion that government officials will always rescue a failing financial company when it believes the failure would cause financial chaos. Since investors in the company believe they’d be bailed out, they accept a lower return for funding the company’s operations. That in turn enables the too big to fail company to enjoy a taxpayer-provided subsidy unavailable to its smaller rivals.

Tuesday’s announcement by federal regulators that the 11 banks’ living wills were inadequate strikes at the heart of the argument that the banks are no longer too big to fail.

TBTF means bailouts and bonuses for billionaires and corporate execs, and nothing for the ever-shrinking American middle class.

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From 2003-2013, Ordinary Americans Lost a Third of Their Wealth

Via Alternet:

According to new research (PDF) supported by the Russell Sage Foundation, middle class Americans are getting poorer (OK, we knew that, but now the numbers are in – and they are startling).

For the study, researchers gathered information on families in the middle of the wealth distribution continuum. What they found is that in 2003, the inflation-adjusted net worth for the typical household was $87,992. Fast-forward 10 years: that figure is down to a mere $56,335.

Ordinary Americans got 36 percent poorer in just a decade.

…The upshot is that regular people have endured one of the worst periods in recent memory. It will not surprise you to learn that during the same decade of 2003-2013, the rich were partying down. In the 95th percentile of wealth distribution, people got 14 percent richer.

That oughta brighten your day.

More info:
What Recovery? You Probably Became Poorer In the Last 10 Years
Americans In Debt: 35 Percent Have Unpaid Bills Reported To Collection Agencies

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Paul Ryan Poverty Plan: Punish Poor Americans for Being Poor

Blame the victims

Via Media Matters

Failed 2012 Vice Presidential candidate Rep. Paul Ryan (R-WI) is back again with a so-called “poverty plan” that blames the victims. In reality, poverty is the result of systemic inequality of opportunity – not a lack of individual initiative.

Rep. Paul Ryan’s poverty proposal, which would in part punish impoverished Americans for not getting themselves out of poverty on a specific timeline, is based on the conservative myth pushed by right-wing media that blames poverty on individuals’ “spirit” and personal life choices.

…The “discussion draft” submitted by Rep. Paul Ryan (R-WI) to the House Budget Committee on potential solutions to poverty in America includes the proposal that low-income Americans would have to sign “contracts” in order to remain eligible for social safety net benefits, such as food stamps, or SNAP. The contract would include: benchmarks, such as finding a job, enrolling in employment training, or even meeting “new acquaintances outside circle of poverty”; a “timeline” in which individuals are contractually-obligated to meet those benchmarks; bonuses for meeting benchmarks early; and “sanctions for breaking the terms of the contract”

…Annie Lowrey of New York magazine explained that Ryan’s proposal is based on the assumption “that the poor somehow want to be poor.”

Ryan’s poverty-shaming plan is nothing more than a vehicle for right-wing propaganda.

Here’s a better alternative than the Tea-GOP is offering: a $15 per hour minimum wage.


More Info:

The Worst Part Of Paul Ryan’s Poverty Plan Is Based On A Media Myth
Seattle raises minimum wage to $15 an hour
Fast food workers vow civil disobedience

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Right Wing Propaganda Destroys Your Moral Compass

It’s always there, the lack of empathy on the part of right-wing extremists. We all remember the GOP presidential debate audience that cheered for letting people die without health insurance. More recently, we’ve seen an eruption of fear and hatred on the right directed at children fleeing the violence in some Central American countries.

Today we have the story of a California man who came home and discovered two burglars in his house.

“The lady, she couldn’t run as fast as the man, so I shot her in the back twice,” Greer explained. “She’s dead, but he got away.”

“She says, ‘Don’t shoot me, I’m pregnant! I’m going to have a baby!’ And I shot her anyway,” Greer said.

John Amato attempted to explain the “vile behavior” of wingers as an effort to emulate their heroes, the rich:

The thing about right-wing populism is that it’s manifestly self-defeating: those who stand to primarily benefit from this ideology are the wealthy, which is why they so willingly underwrite it. It might, in fact, more accurately be called “sucker populism.”

The 1 Percent want to keep us afraid, desperate, and divided by ignorance and prejudice. Otherwise, Americans might decide to blame Wall Street for crashing our economy. We might demand an end to pointless wars, or want to get rid of tax laws that are unfair to the middle class. We might realize that government health insurance is the best kind. Who knows, we might even want other good things from government such as infrastructure improvements, Internet access, cheap renewable energy programs…

More info:
California 80-year-old satisfied after gunning down fleeing pregnant home intruder
Hey, gun nuts: Shooting someone who is running away in the back is not self-defense
Fox hosts outraged that Texas 911 operators are ‘forced’ to help dying non-English speakers
Tea Party town hall erupts as Texas state Rep urges ‘compassion’ for migrant kids

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Everybody Should See This Film

According to the description on this YouTube post, Michael Moore didn’t make any money off this film, even though it’s another masterpiece by the worlds best documentary artist who has a knack for making people laugh at tragedies which must be fixed.

I hope I’m not helping to deprive Mr. Moore of any earnings, but he is known for not trying to squeeze every last penny from his works, and just wants to help America break free from the capitalist’s embarrassing stranglehold on the citizens who worked really hard to get them where they are.

You should buy the film on Blue-ray to get the extras, which add greatly to the film and offer solutions by American businesses and leaders who want to do things to bring capitalism back into a workable sphere.

Enjoy:

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Have The Fourth Of July Off? Then You’re Lucky

Fireworks

Via Think Progress:

You’re lucky if you have today off. That’s because unlike 13 other developed countries, we don’t guarantee that workers get any paid holidays.

If you took the week before the Fourth off or even extended the long weekend with a few paid vacation days, you are also lucky. Nearly a quarter of American workers don’t get any paid vacation time, and that figure has actually grown over the past two decades. And low-wage workers are even less likely to get the benefit, as just under half of them receive it, compared to 90 percent of high-wage workers. In fact, the United States is the only advanced country in the world that doesn’t require companies to offer paid vacation days.

Even when vacation days are available, employees are often afraid to use them.

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In case you forgot,

…GOP economics is as bunk as everything else they do.

Despite the constant claims that paying people enough to actually live will destroy jobs, on average the states that raised the minimum wage are seeing higher than average job growth.

This could very well be due to other factors, and not because of the minimum wage, but certainly the minimum wage isn’t killing jobs.

Actually, turns out there is more evidence, and when we add that we start to see actual trends. As the Washington Post points out, raising the minimum seems to create jobs.

Naturally facts won’t change the arguments from the right. But I already wrote about that.

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Calculated Risk Blog Retires The Scary Jobs Graph

Scary jobs graph

With the May jobs report, the U.S. economy is now back to pre-recession levels of employment. It took more than six years to climb out of the hole George W. Bush put us in (by “us” I mean everyone except the Wall Street millionaires and billionaires who are guilty of precipitating the collapse of the financial sector). That’s nearly as long as it took to recover from the Great Depression in the 1930s. On the Calculated Risk Blog, Bill McBride says, “I’ll be retiring the graph many called the ‘scariest jobs chart ever’.”

Although employment numbers have come back, (1) That only gets us to the same number of jobs we had in 2007, not to where we would have been without Bush’s Great Recession; (2) Unemployment would be higher than 6.3% if we counted the discouraged workers; and (3) Our economy has replaced too many living-wage jobs with low-wage jobs.

Jim Hightower, on AlterNet:

Employment rose by 217,000 jobs in the month of May, according to the latest jobs report — and that brought us up to 8.7 million. That is how many new jobs the American economy has generated since the “Great Recession” officially ended in 2009 — and it also happens to be the number of jobs that were lost because of that recession. You can break out the champagne, for the American economy is back, baby — all of the lost jobs have been recovered!

…Now, let’s move on to the value of those jobs that have economists doing a happy dance. As a worker, you don’t merely want to know that 217,000 new jobs are on the market; you want to know what they’re worth — do they pay living wages, do they come with benefits, are they just part-time and temporary, do they include union rights, what are the working conditions, etc.? In other words, are these jobs … or scams?

So, it’s interesting that the recent news of job market “improvement” doesn’t mention that of the 10 occupation categories projecting the greatest growth in the next eight years, only one pays a middle-class wage. Four pay barely above poverty level and five pay beneath it, including fast-food workers, retail sales staff, health aids and janitors.

…To measure the job market by quantity — with no regard for quality — is to devalue workers themselves. Creating 217,000 new jobs is not a sign of economic health if each worker needs two or three of those jobs to patch together a barebones living — and millions more are left with no work at all.

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The War Power, The Sergeant, the Senator: Treason or Heroism

The Sergeant who some years ago left his post in that unnecessary and unwinnable war in
Afghanistan is either a hero, a traitor, or just a terribly young man in the wrong war at the wrong time. He spent terrible years of torture and probably said things he didn’t really mean.

Some years ago in Vietnam, Senator McCain was shot down over Vietnam, another unconstitutional war, and equally unwinnable war, confessed repeatedly to things he later recanted, once safely in the United States, and is, quite rightly regarded, despite his confessions to American war crimes, a hero. The two cases are not quite completely on all fours, as we say in the law. But the similarity is sufficient to compare with each other and with the undergirding of law.

Presidents, from George Washington to Barack Obama, who are visited by war, either their own or, like Obama, inherited from another (in Obama’s case two other) fools who preceded them, have always had this power. While not yet president, and without this act may well not have become president, Ronald Reagan communicated with Iran, telling them, in effect, just to refuse to deal with Carter on releasing our citizens from the U. S. Embassy in Iran, and await his presidency. Their deal (which killed Jimmie Carter’s hope for a second term and by the way was treason, meriting a firing squad.)

The 30, 60, 90 day notification of Congress is also unconstitutional, but not for the reasons the Republicans and Democrats alike, trumpet. Saint Paul, as I recall, said “this trumpet has an uncertain sound.” And I know he said that some leaders have “zeal without knowledge.” This is Republican and Democratic leaders on steroids, just like my former wife.

The reason the War Powers Act is unconstitutional is not what is now said by either Republicans or Democrats, as I told Joe Biden when he was both Minority Senior member of the Foreign Relations Committee of the Senate and when he was chair. I testified before his committee a few times, and he called me at the law school sometimes to chat about this. The reason is simple. Due to both a few but very senior Democrats and almost all Republicans, Congress forced the Demo’s to give the president 30, 60, or 90 days to play with Congress’ army while he picked his nose. War has not been officially declared since FDR did it in WW2. George Bush (the first) and Colin Powell, in my opinion, got it right, constitutionally, by voting 50-50 in the Senate, and then the Dark Lord, Vice President Cheney, broke the tie and we went to war in Iraq the right way by law; and they had the smarts to stop when their limited mission was accomplished. And until this time, the President, as Commander in Chief, has no constitutional power to use the United States armed forces, save self-defense.

In the Framers’ mind that means only when the United States of America, not our allies, are attacked. For Utahns, the reason J. Reuben Clark, my hero and a great patriot, a rock-ribbed Republican who served under many Republican presidents, served variously as chief legal adviser to the Department of State (then, as an deputy Attorney General on loan from Justice to State,,,,,,now called Legal Adviser to the State Department; and Vice Secretary of State, and Ambassador to Mexico; and advised many presidents between world wars one and two, on all arms control treaties between those to dreadful wars) opposed NATO was because it delegated the war power to a generation not yet born and for the defense of people, and nations, not yet born. Neither the United Nations (Korean War) nor NATO (Ukraine?) can declare war for the United States of America. This is the statement of law, the War Clause, that makes this beyond debate. Remember, that it is also the sole right of Congress: not the President of the United States, nor NATO, nor the United Nations, that decides what constitutes International law, as well. So, both Constitutional Law and International Law, save an attack on the United States, inform us that Congress, not the president or these international bodies, who determines for war or peace.

So screw the people and the Congress and president now living. When the president, any president, has this army to use, that army will never return to Congress’ care. This is unconstitutional because it is an illegal attempt to delegate to the President a plenary power, given exclusively, textually, to the Congress. Like the power over interstate commerce (the road by which most civil rights legislation is constitutional), along with the equal protection and due process of law clauses of the 5th and 14th amendments. It’s as if Congress were to say to Obama, “Say, friend, we’re so damned tired of life in Washington, despite the cherry blossoms, we will do what the Supreme Court does, and reconvene when good weather returns. We’re going to go to Balboa Island, California, where it’s nice and sunny, in ocean or on the beach, and pick our nose and scratch our butts. And better yet, we have one in eight chances not to pick both with the same finger. Even though we’ve proven, time out of mind, that we in Congress cannot chew gum and pick our nose, simultaneously (a great blessing). So, pres., you now have the taxing and the spending power, and we’ll sweeten the loaf by throwing into the pot, since you do have to stick around in this shitty weather, and give you the power also to fund and provide for the Army, Air Force, Coast Guard, and Navy. And don’t sweat it about financing things by the provision in the Constitution that spending bills begin in the House. Since you already have the taxing and spending power, do all this in the White House. P.S. please instruct the Treasury Department to deliver our checks, our salaries, and all the REALLY big bucks from the armaments industry and all those other lobbyists. We really have earned this right by selling our souls to the devil. Have a good life.

I say that both Senator and Soldier are bona fide heroes. Ed Firmage xoxox

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Bill O’Reilly: ‘Listen to The Master… I Just Destroyed This Inequality Myth’

h/t The Raw Story (Click on the X to make the ad go away)

Faux News host Bill O’Reilly chided his colleague Megyn Kelly on Thursday for saying income inequality might be a potent issue for Democrats in 2016, and predicted that Elizabeth Warren wouldn’t run for President because “all she wants to do is sell her dopey book.”

“You’re buying into this fraud, Kelly, and I’m very disappointed, so listen to the master,” O’Reilly told Kelly. “You worked your way up. Was there any war on you? Did anybody declare war on you?”

“I just destroyed this inequality myth,” O’Reilly concluded.

We didn’t really need more proof that Faux News inhabits an alternate universe, but here it is anyway.

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What Would Be The Downside To Trying Solar Roadways?

I get tired of moaning and groaning about our broken political system, so here’s something I found that gives me hope for America.

Germany is making us look bad, because some thirty years after we passed up the chance to lead the world in solar energy, that country is astounding the world with what it’s been able to do with solar in a very short time.

This looks like a chance for America to lead the way yet, with – job creating – American made technology that the world would love to have. I realize this is a promotional video which is most likely not pointing to many downsides of their product, but can’t we just try it? It seems much simpler then going to the moon, and we’re all tired of the oil spills; most of which we never even hear about, because the stories are mostly banned from the media.

Check it out. There are lots of other videos on the subject, including a “TED” talk by the inventor, which I haven’t had time to watch yet.

UPDATE: Here’s the TED talk from Scott Brusaw and one other video.

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Less Than A Quarter Of The Unemployed From Bush’s Great Recession Had Steady Jobs 5 Years Later

Unemployed pie chart

Via Think Progress:

Just 22 percent of those who ended up unemployed for six months or longer during the 2008 recession found steady, full-time work by the beginning of 2013, according to a new analysis from Princeton professor Alan Krueger as reported by the Wall Street Journal.

Looking at a Census Bureau survey of households between 2008 and 2013, he found that the rest of the long-term unemployed weren’t faring very well. The largest share, 35 percent, had dropped out of the labor force altogether, either giving up on finding a job, going back to school, retiring, or choosing some option other than job hunting. While 28 percent had found some employment, it wasn’t steady or full time. Another 14 percent were still unsuccessfully job hunting five years after they lost their jobs.

Republican economic sabotage is working. They killed public sector jobs. They cut off unemployment benefits six months ago. They are constantly crying about “The Obama Economy” (if only Dems knew how to frame issues that effectively!) Most of the new jobs being created are low-wage jobs with no benefits. It’s been 7 years since the last time Congress raised the minimum wage. President Obama has to go beyond giving speeches about job growth, and hoping corporations will do the right thing.

That said, let’s remember that the Obama administration has created more than 8.7 million jobs, compared to 1.1 million during Bush’s entire two terms. Bush was the first President since Herbert Hoover to have a net loss of jobs. GDP was going down when Bush left office. Republicans in Congress have prevented the Obama administration from doing enough to repair the economic devastation left by Bush.

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