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Another Spelling/Grammar/Punctuation Rant On It’s Vs. Its: Maybe It’s Tiime To Just Change The Rule?

On February 16, 2012 | 0 Comments

From the comments section:

…convinced the agency to now give energy it’s due….

…has been abandoning it’s libertarian bearings over the last couple of years…

…is Cuba is prepared to allow it’s citizens…

… or what it’s impacts are likely to be…

…The Fed has the ability to manipulate the rate toward it’s target…

…in it’s current incarnation, wind power makes no sense…

…is definitely it’s own economy…

…more than twice it’s current value…

…which abandoned … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Originally from DailyMarkets.com

Fed OK’s Capital One-ING Direct Deal

On February 15, 2012 | 0 Comments

It’s a ‘YES’ for Capital One Financial Corporation’s (NYSE:COF) plan to acquire ING Direct USA, the online banking unit of Amsterdam-based ING Groep NV (NYSE:ING). On Tuesday, the Federal Reserve finally approved the deal. The consent removes the doubt that the acquisition would create the next ‘too-big-to fail’ banking institution.
In June 2011, COF had announced that it would acquire ING Direct in a stock-cum-cash transaction. As per the terms of the deal, the company would pay $6.2 … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Originally from DailyMarkets.com

Capital One-ING Direct deal OK’d by Fed

On February 14, 2012 | 0 Comments
The Federal Reserve approves the first major bank merger under the new Dodd-Frank rules, Capital One’s $9.2 billion bid to buy ING Groep NV’s U.S. online-banking unit.

Originally from MarketWatch

Mortgage ‘Settlement’ Is a Bailout for California

On February 10, 2012 | 0 Comments

Just over a week ago in an article I published here in Big Government: “New California Budget Crisis May Torpedo November Tax Increase Initiative.” The article illuminated how State Controller John Chaing had shocked California’s spendthrift politicians by announcing the State would be out of cash beginning March 8th and would miss up to $5.4 billion in vendor payments through May 1st. The timing of the Chaing announcement was disastrous for state politicians; because it destroyed any hope that Governor Jerry Brown’s $6 billion tax increase initiative on the ballot in November would pass.

Now it appears that Brown successfully lobbied for California to get $6 billion in cash and siphon off a total of $18 billion from the $25 billion mortgage settlement with the five largest U.S. banks, who were accused of fraud in the handling of foreclosures and loan modifications. But as Franklin Center Fellow, Steven Greenhut asks in a deliciously sarcastic article: “Why should a taxpayer in Houston or Wichita bail out irresponsible California homeowners, banks and the state’s public employees’ retirement fund?” Greenhut highlights that the mortgage settlement money is really just another accounting entry, because the real source of cash to fund the “Left Coast” is “implicitly via Federal Reserve/Government coffers.”

Most Americans still snarl about crony capitalism when they think of multinational banks taking $1 trillion slurp of taxpayer’s hard earned cash and then paying themselves record bonuses, while hiking fees and cutting off borrowers. But with the United States President and Congress solemnly telling Americans healthy banks were key to our future, most Americans gritted their teeth and came together to bail-out of banks, insurance companies, and other financial firms.

When the good people of the other 49 states learn the terms of this bail-out, I believe they also come together. But this time they will be showing their fangs and carrying pitch forks! With only 13% of the GDP of the United States, California gets 72% of the settlement proceeds. Undoubtedly, the five national banks will pass 100% of the cost of this settlement on to all their customers nationally. Consequently, 87% of the increased bank fees will be paid by other states increases to bail-out California’s insolvent budget.

Kamala Harris, California’s Attorney General, claimed the settlement may help roughly 250,000 California borrowers by requiring the banks to cut mortgage debt amounts and extend $2,000 payments to homeowners who already suffered foreclosure. But Greenhut points out that powerful interest groups, like the California Public Employees’ Retirement System, which had nothing to do with individual mortgage holders being unfairly foreclosed upon, carved off a piece of the settlement money to bail-out some of their investment losses on real estate speculation that resulted from bad advice.

According to the L.A., a 17-month investigation recently found that some of that bad advice came from Federico Buenrostro Jr., the former chief executive of the $250 billion California public employee pension fund. It seems that he and , and a couple of his pension Board buddies were recently accused of pressuring subordinates to invest billions of dollars of pension money with politically connected firms and strong-armed a for a $4 million in fee to be paid to consultant Alfred J.R. Villalobos, who later hired Buenrostro.

Most Californians refer to Jerry Brown as left wing, but I think he just proved he is more left brained. Left brain thinkers excel in math, language studies and logic problems. Since the banks that settled only control or own only 7.3% of all outstanding single-family mortgages, every time Brown wants to increase spending, he just needs to do another “settlement.” After all, California bank customers only pay 13% of the settlement costs, while the State gets 72% of the proceeds. Either Brown is a very smart or the other 49 governors and their Legislatures are really stupid.
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Originally from Big Government

Romney’s ‘Poor’ Comment Is Plenty Defensible

On February 02, 2012 | 0 Comments

Just hours after winning the Florida primary, Mitt Romney let loose a potential gaffe that turned what should have been a rallying moment for Republican supporters into an uncomfortable position of having to defend the man that is likely to face Obama in the general election.

If taken out of context, which the media is very adept to doing, Romney’s comment, “I’m not concerned about the very poor” sounds heartless and indefensible. In fact, that is exactly how many conservative commentators reacted.

From a purely political position, the criticism is reasonable. Romney effectively handed Democrats a shiny set of brass-knuckles to use against, not only him, but the Republican Party in general as being out of touch with every day Americans. As NRO’s David Kahane put it, “In the Fight of the Century between the Apologetic Oligarch and the Tribune of the Folks, who do you think the fans will be rooting for?” In other words, Romney unwillingly played into the class-warfare meme that Obama has wrapped himself in.

Jonah Goldberg says there are risks with Romney because he has yet to show he has mastered the art of the “stump” even after close to decade of practice.

These are examples of criticism on the face of the issue. Other conservative commentators chose to hammer Romney on his acceptance of the welfare state, and no doubt relished at the opportunity to attack him before having to reluctantly support him in the general election. To this group, not only did Rommey make the mistake of choosing his words poorly, he also spoke of the welfare state as status-quo. Erick Erickson at Red State, and Mark Levin, are charging Romney of the same class-warfare tactics Obama and the Democrats use. Furthermore, from his choice of words Romney effectively endorsed poverty as a thing to be accepted instead of engineering ways for them to lift themselves up out of poverty. Alas, a New England, Rockefeller, Republican.

Mitt Romney said he wasn’t concerned about the poor. The poor, after all, have food stamps and Medicaid. But don’t worry. If the safety net is broken, Patrician Mitt Romney will fix it so the poor can stay comfortably poor (E. Erickson).

In an environment such as politics, perception is key. After all, there is a saying that is usually applied to politicians “Once you learn to fake sincerity, the rest is easy.” So maybe Romney does have a sincerity problem. But if sincerity is faked, which it usually is, why bother to do it? After all we have a president totally comfortable faking sincerity, and one who took Rousseau’s thoughtthe more obscure and uncertain the cause, the greater the effect: the greater the number of idlers one could count in a family, the more illustrious it was held to be” and won the presidency with it.

Romney’s full comment was a little deeper than some of the reactions suggested.

I’m not concerned about the very poor. We have a safety net there. If it needs repair, I’ll fix it. I’m not concerned about the very rich. They’re doing just fine. I’m concerned about the very heart of America, the 90-95 percent of Americans who right now are struggling.

It isn’t my job or even my concern to defend Romney by putting a positive spin on his comments. However, his remark did not cause this conservative to react negatively. I heard what he was saying loud and clear. It isn’t the duty of a president, Congress, or state governments to pull people up out of poverty. In fact, one could argue convincingly when those things are tried, poverty increases and wealth declines. So what we do have in place is a safety net for those who are down. It isn’t a permanent residence, it’s an interim position. The focus should always be growth and capital. When the economy is well, so is America’s labor force.

The economy is the engine that drives mobility because as long as our economic system rewards success and punishes failure (such as life) no station in life is monolithic. There is nothing destined in America.

Mobility is not limited to the top-earning households. A study by economists at the Federal Reserve Bank of Minneapolis found that nearly half of the families in the lowest fifth of income earners in 2001 had moved up within six years. Over the same period, more than a third of those in the highest fifth of income-earners had moved down. Certainly, there are people such as Warren Buffett and Bill Gates who are ensconced in the top tier, but far more common are people who are rich for short periods.

Very well then, Romney’s concern shouldn’t be with the poor. His concern should be with those who help drive the economy. Those who buy and produce, start businesses, buy homes and cars and hire employees. With a growing economy comes a rising tide of activity. And it’s from this activity that allows the poor opportunities to pull themselves up out of poverty. For lack of better words, the horse really does come before the cart. Or better, a physician is only concerned with a patient insofar as he can help cure the aliment. That is Romney’s position. Conservatives would do well if they thought more and reacted less.

We can belly-ache and lash our faces from grief and despair over the plight of the poor, or we can actually do something about the conditions for which there are so many poor among us.

Originally from Big Government

The Fed: Bernanke backs congressional ‘armistice’ call

On February 02, 2012 | 0 Comments
Federal Reserve Board Chairman Ben Bernanke calls U.S. vulnerable to sudden fiscal crisis if Washington doesn’t come to grips with deficit, backs Rep. Mike Simpson’s call for an “armistice” between Republicans and Democrats

Originally from MarketWatch

The Fed: Fed heads reflect America’s wealth gap

On February 01, 2012 | 0 Comments
Lo and behold, there’s a wide gap between the few very rich presidents and the others — not exactly like the gap between the so-called 1% and the 99%, but close.

Originally from MarketWatch

Corrections: Fed heads reflect America’s wealth gap

On February 01, 2012 | 0 Comments
A story on Jan. 31 incorrectly identified the president of the Cleveland Federal Reserve Bank.

Originally from MarketWatch

The Fed: Fed heads reflect America’s wealth gap

On January 31, 2012 | 0 Comments
Lo and behold, there’s a wide gap between the few very rich presidents and the others — not exactly like the gap between the so-called 1% and the 99%, but close.

Originally from MarketWatch

Irwin Kellner: It’s the fiscal policy, stupid

On January 31, 2012 | 0 Comments
Washington politicians’ refusal to help the economy with fiscal moves is forcing the Fed to step in, despite the impossibility of using monetary policy to solve the problem, writes Irwin Kellner.

Originally from MarketWatch



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