Archive for the ‘Money’ Category

AIG’s insistence on bonuses raises ire in Washington

March 15, 2009

(CNN) — White House officials and some members of Congress reacted strongly Sunday to news that insurance giant AIG had intended to pay out $165 million in bonuses and compensation. The company has received at least $170 billion in federal bailout money. (more…)

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Top 10 differences between Europe and America

January 3, 2009

Published on November 25, 2007 – 207 Comments

Though only a stone’s-throw away across the grand Atlantic, Europeans and Americans are as different as night and day. And being anywhere from 5 to 7 hours difference in time, they literally are, too. Back in the days of old when that rag-tag batch of ticked-off Englishmen decided to brave the snarling sea and make new their lives in America, we’ve held similarities close to our hearts. However, times force great changes and leaps in advancement force gaps in our likenesses and make them far more diverse and different. Gone are the days when the ‘New’ Americans would take tea time, instead, we, as Americans, stumbled upon the idea of lunch… similar, but still, quite different. Well, you get the idea. Here are ten (of many, as we all know) ways we, as Americans, are different from our jovial brethren across the pond: the Europeans. (more…)

Big Three CEOs Flew Private Jets to Plead for Public Funds

November 19, 2008

Auto Industry Close to Bankruptcy But They Get Pricey Perk

By BRIAN ROSS and JOSEPH RHEE

November 19, 2008—

The CEOs of the big three automakers flew to the nation’s capital yesterday in private luxurious jets to make their case to Washington that the auto industry is running out of cash and needs $25 billion in taxpayer money to avoid bankruptcy.

The CEOs of GM, Ford and Chrysler may have told Congress that they will likely go out of business without a bailout yet that has not stopped them from traveling in style, not even First Class is good enough. (more…)

Blackwater likely to be fined millions in Iraq weapons case

November 13, 2008

Posted on Thu, Nov. 13, 2008

Warren Strobel | McClatcly Newspapers

last updated: November 12, 2008 07:35:33 PM

WASHINGTON — The State Department is preparing to slap a multi-million dollar fine on private military contractor Blackwater USA for shipping hundreds of automatic weapons to Iraq without the necessary permits. (more…)

NO BONUSE$ FOR YOU

November 5, 2008

New York Post

NO BONUSE$ FOR YOU

By NELL MINOW

November 2, 2008 –Secretary Henry Paulson came up with a $700 billion emergency plan to pour government money into the Wall Street firms to save them from collapsing – not to fund a bonus pool for the billionaire boys’ clubs of the investment banking firms. It is the economy that is supposed to be bailed out – like the millions of homeowners currently or soon to face foreclosure – not the bankers.

(more…)

Ron Paul: Buying bad debt is the wrong solution

October 1, 2008

(CNN) — Two days after the House rejected the $700 billion bailout bill, the Senate is set to vote on the rescue plan for financial institutions.

The vote is scheduled for after sundown Wednesday.

Republican presidential nominee Sen. John McCain, Democratic nominee Sen. Barack Obama, and Obama’s running mate, Sen. Joe Biden, all said they would be present for the vote.

Speaking to CNN’s John Roberts on Wednesday, House Financial Services Committee member and former Republican presidential candidate Rep. Ron Paul discussed why he thinks the bailout bill is the wrong solution to the economic problem and what he would do to secure financial security. (more…)

How Financial Madness Overtook Wall Street

October 1, 2008
Thursday, Sep. 18, 2008

If you’re having a little trouble coping with what seems to be the complete unraveling of the world’s financial system, you needn’t feel bad about yourself. It’s horribly confusing, not to say terrifying; even people like us, with a combined 65 years of writing about business, have never seen anything like what’s going on. Some of the smartest, savviest people we know — like the folks running the U.S. Treasury and the Federal Reserve Board — find themselves reacting to problems rather than getting ahead of them. It’s terra incognita, a place no one expected to visit. (more…)

House Rejects Bailout Package, 228-205; Stocks Plunge

September 29, 2008
September 30, 2008

WASHINGTON — In a moment of historic drama in the Capitol and on Wall Street, the House of Representatives voted on Monday to reject a $700 billion rescue of the financial industry. The vote came in stunning defiance of President Bush and Congressional leaders of both parties, who said the bailout was needed to prevent a widespread financial collapse.

The vote against the measure was 228 to 205, with 133 Republicans joining 95 Democrats in opposition. The bill was backed by 140 Democrats and 65 Republicans. (more…)

HOW PROJECTED SURPLUSES BECAME DEFICITS:

September 28, 2008

September 12, 2008

HOW PROJECTED SURPLUSES BECAME DEFICITS:
Main Causes Were Tax Cuts and Higher Security Spending
By Richard Kogan and Gillian Brunet

The federal budget is projected to run a $546 billion deficit in 2009, compared with the $710 billion surplus that budget experts projected for 2009 back when President Bush took office nearly eight years ago.  This $1.3 trillion deterioration in the nation’s fiscal finances for 2009 can be seen by comparing estimates that the Congressional Budget Office (CBO) released this week with those that CBO released in January 2001.

The story is much the same for the entire ten-year period covered by CBO’s 2001 projection.  In January 2001, CBO projected a cumulative $5.6 trillion surplus for 2002-2011.  Now, CBO’s new report suggests the nation will amass a cumulative deficit of $3.8 trillion over that same period, marking a $9.4 trillion deterioration.

For both 2009 and the ten-year period, this massive deterioration is partly due to weaker-than-expected performance of the economy, along with other “technical” factors that are beyond policymakers’ control.  But these economic and technical factors account for less than one-fourth of the fiscal deterioration for each period, and they are not responsible for the return of deficits.  Even given the disappointing performance of the economy since 2001 relative to CBO’s earlier projections, there would have been large surpluses in every year — totaling $3.4 trillion over the 2002-2011 period — if policymakers had enacted no tax cuts or program increases since 2001.

The dominant factor in the unprecedented fiscal deterioration thus was not the performance of the economy.  Nor was it increases in domestic programs.  The key factors have been large tax cuts and increases in security-related programs.  For fiscal 2009, some $1 trillion of the $1.3 trillion deterioration in the nation’s fiscal finances stems from policy actions, and tax cuts account for 42 percent of this $1 trillion deterioration.  Increases in military and other security programs account for another 40 percent of the deterioration.

The story is much the same for the ten-year period as a whole.  For the 2002-2011 period, tax cuts and increases in security programs account for more than four-fifths of the fiscal deterioration caused by policy actions.  Increases in domestic programs played a much more modest role. (more…)

Bush Urges Democrats to Act Quickly on Bailout

September 22, 2008
September 23, 2008

This article was reported by David M. Herszenhorn, Stephen Labaton and Mark Landler, and written by Mr. Herszenhorn.

WASHINGTON — As President Bush urged lawmakers to act quickly on the bailout legislation, Senate Democrats on Monday put forward their version of the rescue plan, including a bold addition aimed at helping homeowners at risk of foreclosure.

President Bush urged the legislators to resist the temptation to add provisions that, he said, “would undermine the effectiveness of the plan.” But it is becoming clear that Democrats have their own ideas about what should be in the plan, who should be helped, and who should not. (more…)