We have one last chance at 'jump starting' this economy and that can only be done from below where 95% of lower to middle income citizens consume by purchasing products and services that are produced by the global economy. Nothing will be accomplished by throwing more and more money at Wall Street in an attempt to get the credit markets lending again because once the investment community became aware of the extent of consumer and business leverage they lost a certain amount of confidence in all facets of the U.S. economy. Both foreign and domestic credit markets are not freezing up but what is actually occurring is a natural reaction to the discovery that U.S. businesses and consumers have overextended themselves in an un-concerted attempt at maintaining a level of economic expansion (lifestyle or revenue stream) that is unsustainable given the continuing drop in consumption spending by consumers as a result of their declining incomes.
Now that both businesses and consumers are facing the reality of the real market economic forces that act to stabilize out of balance conditions, all facets of the economy are crying for immediate relief even those such as the financial institutions that will just have to write off or write down most of the over valued credit assets that their customers both businesses and citizens are unable to continue to carry.
Until the 95% of low to middle income U.S. citizens are afforded a substantial increase in income (equated to all the lost income never received from years of productivity gains) the global economy will continue to tank. No other option remains - either use the $700 billion (more required) to 'jump start' this dying income starved economy or watch it decline to the point of no return.
Also, we shouldn't believe everything pandered by the sensationalist media parrots especially when it regards Economics. Investors moved back into the markets today mainly to acquire 'dirt cheap' bargain stocks and investment instruments not simply because they even remotely expect help in the form of a bailout from the U.S. Congress or that if it did transpire would have any effect on confidence anyway. Therefore, what all of us should attempt to do is maintain a link to reality based upon the facts of each day and not take credence in any neoclassical Economic ideology predictions that are rooted in policies that have brought us to this calamitous point in time.
Moving our economy back to a higher level of consumption spending that is not based upon consumers who are over leveraged and businesses that are equally overleveraged because their income is being drained off by greedy executives and board members must be the goal for our nation. Draining more income from the 95% of low to middle income citizen taxpayers in order to invest in worthless debt related assets that would be better purged from our economic system entirely does not lead to a sustainable economic system nor does it help in resolving our current chronic income crisis - it only makes matters worse. We need to invest in America not throw what may be our last remaining dollars that haven't yet been devalued (given time) to the point of being worthless up into the wind, only to be blown across a fast encroaching economic desert.
We have the power to thoughtfully address the income crisis which is the root cause of our economic calamity but only if we remain open-minded to all approaches that are centered upon getting substantial income in the hands of average Americans who will faithfully spend (representing 2/3's of GDP) it on products and services. Not only is it the economically sensible thing to do but the morally right thing to do.
http://structuralEconIssues.blogspot.com/
http://structuraleconissues.blogspot.com/
o Use $700 Billion to Stimulate Real Economy
o Fast Bailout of Wall Street â€" No Help for Main Street
o Stand Up Citizens - It is Time to Be Counted
o Death of the Great Consumption Engine
o Stepping from the Past into the Future
o Our Nation’s Dying Debt Engine
o $700 Billion to Feed the Supply Side Monster
o $700 Billion Bailout â€" Reverse Robin Hood Effect
o Financial Pollutants, Government Bailout, and HOLC
o Great Depression History Propaganda Spread by Elite
o Income Drained From Below Covers Losses of Elite
o Federal Toxic Debt Clearinghouse â€" Cleansing Debt from Books
o U.S. Treasury Open To Loot â€" An Economy Spiraling Down
o AIG Raids U.S. Treasury â€" Lobbyists Work Pays Off
o Root Causes of Our Current Income Crisis
o Acquiring a Rational Economy
o Workers Demand Democracy Not Machiavellian Evil
o Income Crisis - Accelerating For Impact into Economy
o They Sacrifice the Dreams of a Nation
o Building a Foundation of Understanding
o Completely Nationalize Freddie Mac and Fannie Mae
o Deflationary Stage of Income Crisis Reached
o The Illusion of Justice
COUNCIL OF FEDERAL HOME LOAN BANKS
2120 L Street, NW, Suite 208
SWashington, DC 20037
Wuj3pj’4t’202.955.0002 Tel
202.835.1144 Fax
A NATION OF LOCAL LENDERS www.thlbanks.com
May 2, 2006
Federal Housing Finance Board
1625 Eye Street, NW
Washington, DC 20006
Attn: Public Comments
Re: Federal Housing Finance Board Proposed Rule: Exceaa Stock Restrictions and Retained
Earningt Requirements for the Federal Home Loan Banks.
RN Number 3069-AB30 Docket No. 2006-03
Dear Sir or Madam:
We, the Chairs and Vice-chairs of all twelve Federal Home Loan Banks, are writing to you on a matter of great importance to the Home Loan Banks and their more than 8,000 member financial institutions. The Finance Board has published a proposed capital rule that is of far reaching significance to the Bank System. This proposal deals with the fundamental nature of the concept of capital as it relates to the Federal Home Loan Banks. This issue has already been the subject of extensive legislative consideration and was addressed in the Granim-Leach-Bliley Act
We are very concerned about the regulatory approach the Finance Board has taken with respect to this issue. Further, this approach may have substantial and significant unintended consequences and other negative ramifications for the Home Loan Banks, our members, and their communities. We therefore strongly urge that the Finance Board withdraw the current proposed regulation, and instead issue an Advanced Notice of Proposed Rulemaking.
The use of the Advanced Notice of Proposed Rulemaking process will permit the Finance Board, the Banks, member institutions, and the interested members of the public to engage in a meaningful dialogue, prior to the issuance of a proposed rule, to discuss the important issues raised in your proposal, as well as other issues relating to capital and excess stock. We would envision that this process will result in a better and more reasonable way of dealing with the issues raised in your notice.
Sincerely,
Chair
FHLBank of Atlanta FHLBsnk of Atlanta
_____ __
Chair
FHLBank of Boston FHLBank of Boston
Read More »I just read an article about Hillary's debt. Her debt is estimated at $30 million
She is between a rock and a hard place.
Campaign finance laws prohibit Mr. Obama from simply transferring money from his war chest to Mrs. Clinton’s campaign. But Mr. Obama’s fund-raisers could ask their donors to give to Clinton. However many Obama supporters are reluctant to do this because of one huge reason: Some of Senator Clinton's largest outstanding bills are to some of her closeset advisors. For example, she owes nearly $5 million to the firm of Mark Penn--yes the same fellow who was taking money from the Colombians for advising them on how to pass a trade agreement that Hillary was against.
In addition to raising money to pay her bills before August, her campaign must liquidate more than $23 million in contributions set aside for the General Election. They can do that by returning it to donors or designating it for her senate re-election campaign in 2012, provided she obtains permission from her donors and there may be a way to use this money to pay her debts but that is not clear.
because of a clause in the McCain-Feingold campaign finance measure that was intended to limit the ability of candidates to self-finance campaigns, she has until the convention in August to pay herself back. After that, the most she could recover is $250,000.
SOURCE:
The Jefferson County, Ala Commission, yesterday [Thursday, May 15] approved a two week extension of a forbearance agreement with creditors. ... Creditors had approved the third extension before it was sent to the Commission...
http://www.bondbuyer.com/$nocookies$/article.html?id=200805158ATLCK75
Default averted, we will wait and see what happens at the end of the month (May 29?).
There is over $3 billion in debt at risk in Jefferson County alone and a default would throw the municipal bond marketplace into further turmoil with repercussions at City Halls across the county, the creditors include the usual New York Banking suspects and that in turn could trigger Fed Reserve action.
Let us hope they can resolve it locally before it becomes a national crisis, but it is one to watch. Even if we dodge the bullet in Jefferson County, it could be a bell weather of things to come.
Jim Callahan
Orlando, FL
BERLIN (AP) — The dollar resumed its slide against the euro and the pound Tuesday ahead of decisions by central banks in Europe and London on interest rates.
The 15-nation euro bought $1.4706 in morning European trading, up from $1.4696 in New York late Monday. The British pound rose to $1.9745 from $1.9697.
The European Central Bank and the Bank of England both meet on Thursday to set interest rates.
The ECB faces inflation estimated at 3.1 percent — well above its guideline of just under 2 percent — but also sliding business and consumer confidence in the euro zone.
Higher rates — used to combat inflation — also can strengthen a currency, and the near-record strength of the euro has raised concern among businesses and politicians about the competitiveness of European exports.
"Consensus is now suggesting that we'll see no change here either despite previous thoughts of a quick hike," said James Hughes, a market analyst at CMC Markets. "Any emerging inflationary pressures could, however, see opinion shift once again."
The pound has been hit by worries about the housing market, and was helped Tuesday by a report from a leading British lender, the Halifax, showing that house prices across the country rose by 1.3 percent in December.
As for the Bank of England's rate decision this week, "a quarter-point cut is far from certain, so any suggestion that house price inflation remains an issue even with the tighter credit market conditions could start to pressure the (bank) into leaving rates unchanged in the near term," Hughes said.
In other trading, the dollar was up to 109.57 Japanese yen from 109.03 yen.
Read More »In Clear and Present Danger James on the John Edwards Web site asked for me to break down the issue and why the problem needs addressed now. In the beginning of Clear and Present Danger I strongly suggested that individual review Mr. M. Hodges Web Site GRANDFATHER REPORT. I recommended this because Mr. Hodges and other have done an outstanding job of breaking down the National Debt Problem. Read More »
If a brother or sister is naked and destitute of daily food, and one of you says to them �Depart in peace, be warmed and filled,� but you do not give them the things that are needed for the body, what does it profit?
The Gideons International James 2:15-16
Whether religious, social or political the goal of a community is to meet the needs of each member of that community. Again, I am not faulting the share of compassion verbally or the giving a person a hug. These are also needed. Read More »
No man is an island.
No man stands alone.
Each man’s joy is joy to me;
Each man’s grief is my own.
We need one another, so I will defend,
Each man as my brother each man as my friend
Words without action have little meaning. I am ask that We create an organization that works for our communities. What can you and I do to make a real defference within our town, city and nation. Please review and give feedback. If you know of, or are a member of a not-for-profit organization please consider. This includes local organized democratic memberships. You can contact me via tempest112@hotmail.com or swilkinson@shareddebtrelief.com Read More »
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