Maria Stoyadinova
IG Report on President's Surveillance Program
"When Will The Recovery Begin? Never..." Robert Reich
If you have Adobe Acrobat Reader, you can click on the link above to read the whole unclassified report. Make some coffee or tea and a little snack to help digest the governmental prose...
If you have Adobe Acrobat Reader, you can click on the link above to read the whole unclassified report. Make some coffee or tea and a little snack to help digest the governmental prose...
I have been monitoring the financial debates over the stimulus package, with both sides getting hysterical prematurely, even trying to debate if we need a second stmulus. Only 10% of the $700 billion has been released, so the government has probably been too cautious. You know how you've been receiving scam emails about getting government contracts and your share of the stimulus? I imagine the government is getting a whole lot more, and just making sure that a program is legitimate takes time to vet, which explains why my proposal from the Grumpy Old Man Group has gone into bureaurocratic limbo... Anyway, here is some of the good news coming out of Washington, as reported by the Washington Post: "The Obama administration is developing an initiative to take money from the $700 billion rescue program for the banking system and make it available to millions of small businesses, which officials say are essential to any economic recovery because they employ so many people, according to sources familiar with the plan.
The effort would represent a striking shift from the rescue program's original mandate, since it would direct billions of bailout dollars toward a plan that aims more at saving jobs than at righting the financial system. Some economists estimate that small businesses, defined as firms with fewer than 500 workers, employ most of the country's workforce." It's what they should have done from the beginning because its the smaller businesses that are the backbone of our economy. Making it easier for them to provide health care for their employees at a reasonable price also would be beneficial.
The effort would represent a striking shift from the rescue program's original mandate, since it would direct billions of bailout dollars toward a plan that aims more at saving jobs than at righting the financial system. Some economists estimate that small businesses, defined as firms with fewer than 500 workers, employ most of the country's workforce." It's what they should have done from the beginning because its the smaller businesses that are the backbone of our economy. Making it easier for them to provide health care for their employees at a reasonable price also would be beneficial.
But it may be too little too late. The most vicious cycle is the direct relationship between jobs and money for consumers to spend. Job loss is still happening at a rapid rate, and you can't buy a new GM or Ford car if you don't have the money to pay for it, so it doesn't matter if GM came out of bankruptcy or what kind of cars they will be making... You can't take your sick kid to the doctor because you now don't have any medical insurance and your doctor charges $120 for an office visit... Once a small business is gone, very rarely does another come along to replace it, and a part-time government job also will not replace it. Here is Robert Reich on why the economy won't recover: "In a recession this deep, recovery doesn't depend on investors. It depends on consumers who, after all, are 70 percent of the U.S. economy. And this time consumers got really whacked. Until consumers start spending again, you can forget any recovery.
Problem is, consumers won't start spending until they have money in their pockets and feel reasonably secure. But they don't have the money, and it's hard to see where it will come from. They can't borrow. Their homes are worth a fraction of what they were before, so say goodbye to home equity loans and refinancings. One out of ten home owners is under water -- owing more on their homes than their homes are worth. Unemployment continues to rise, and number of hours at work continues to drop. Those who can are saving. Those who can't are hunkering down, as they must.
Eventually consumers will replace cars and appliances and other stuff that wears out, but a recovery can't be built on replacements. Don't expect businesses to invest much more without lots of consumers hankering after lots of new stuff. And don't rely on exports. The global economy is contracting." The major financial groups are bouncing back because they are engaging in the same kind of financial products that got them into trouble, hey, its just business as usual until some kind of regulations kick in...
Problem is, consumers won't start spending until they have money in their pockets and feel reasonably secure. But they don't have the money, and it's hard to see where it will come from. They can't borrow. Their homes are worth a fraction of what they were before, so say goodbye to home equity loans and refinancings. One out of ten home owners is under water -- owing more on their homes than their homes are worth. Unemployment continues to rise, and number of hours at work continues to drop. Those who can are saving. Those who can't are hunkering down, as they must.
Eventually consumers will replace cars and appliances and other stuff that wears out, but a recovery can't be built on replacements. Don't expect businesses to invest much more without lots of consumers hankering after lots of new stuff. And don't rely on exports. The global economy is contracting." The major financial groups are bouncing back because they are engaging in the same kind of financial products that got them into trouble, hey, its just business as usual until some kind of regulations kick in...
On the other hand, there is the pressure that the President wants to apply to our legislators. From the Political Wire: "Speaking at a news conference after a summit in Italy, President Obama hinted that he and his aides will be making campaign-style appearances around the country to keep up the pressure on lawmakers ro produce a health care overhaul, reports CQ Politics.
And if Congress thinks it can wrap up work on a messy issue by producing a watered-down compromise by September, think again. Asked whether it's do-or-die by the August recess, Obama responded, "I never believe anything is do-or-die. But I really want to get it done by the August recess." Geez, he really wants to relax and do next to nothing for the rest of his term... Or, he will end up being the most productive President we've had, and can spend the rest of his term bitching and moaning how his programs were big compromises and not helpful to the American people. Remember, whenever a politician quotes the phrase "the American people," he or she is descending into demagoguery...
And if Congress thinks it can wrap up work on a messy issue by producing a watered-down compromise by September, think again. Asked whether it's do-or-die by the August recess, Obama responded, "I never believe anything is do-or-die. But I really want to get it done by the August recess." Geez, he really wants to relax and do next to nothing for the rest of his term... Or, he will end up being the most productive President we've had, and can spend the rest of his term bitching and moaning how his programs were big compromises and not helpful to the American people. Remember, whenever a politician quotes the phrase "the American people," he or she is descending into demagoguery...
Remember when both John McCain and Barack Obama made pledges against accepting the lobbying industry? Well, it's still there and healthier than ever, with the medical and insurance industries pouring millions of dollars to stop any kind of public option in health care reform bills. Plus, they want to water down and weaken anything other than the status quo, where they are in charge. It has nothing to do with you or the quality of health care you will receive, and everything to do with continuing the scams worked out between doctors and insurers. Last year $484 million was spent on health care lobbyists, and it's expected to be a lot more for this year.
One of the local lobbying groups partaking in the pie, is Brownstein Hyatt Farber Schreck: "Their firm, Brownstein Hyatt Farber Schreck, now does more federal lobbying than any other based in Denver.
Sen. Edward M. Kennedy , D-Mass., has called Brownstein the “101st Senator” for his deal-making prowess. And Farber may have done more than anyone else to bring the Democrats to the Mile High City. He led the effort to convince the Democratic National Committee to hold the convention in Denver and raised millions of dollars to make it happen as chairman of the city’s host committee."
Sen. Edward M. Kennedy , D-Mass., has called Brownstein the “101st Senator” for his deal-making prowess. And Farber may have done more than anyone else to bring the Democrats to the Mile High City. He led the effort to convince the Democratic National Committee to hold the convention in Denver and raised millions of dollars to make it happen as chairman of the city’s host committee."
Next week will be the spectacle of the Supreme Court nomination. I will be watching it although it won't be as much fun as Clarence "Coke Can" Thomas was, but I still expect a fair amount of racial slurs against Hispanics from southern Republicans. Also, the new senator Al Franken will be on the committee and it will be interesting to see if he can remain serious during such a farce...
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