This'n'That; March 25th[AIG-ACORN;RochTeaParty;NYBudget;ToxAsset]

The White House Next? [I found this at: http://nicedeb.wordpress.com] [....and I edited it, only to change some words-not the basic premise {My blog doesn't use the "o" word plus, Deb is a far better writer than I; I can add nothing!!}. The White House SHOULD be next-the occupant as well as the entire congress would have known this would be a problem-HAD THEY ONLY READ THE PORKULUS LEGISLATION!! Remember, Crooked-Senator Dodd authored the amendment that protected AIG retention bonuses-ACORN might wanna protest at his houses next.... ALL OF 'EM!!] While the tea parties, (which are popping up all over the country, drawing hundreds, and even thousands of people every week), are attracting scarce attention from the media, a motley troupe of 40 ACORN malcontents that go by the name of the Connecticut Working Families Party, attracted dozens of reporters from around the world for their protest of AIG working family homes, today: I’ve been to three tea parties so far, all of which were considerably larger than this sad little exercise in class envy. Only the last one was covered by anyone in the MSM; one lone reporter from the local Fox affiliate. But the AIG bonuses are apparently what the media insists we be outraged about, not the insane spending spree Fluffy and the dems in Congress have been on. I could have worked up a little indignation over the bonuses, myself, but all of the maudlin emoting that came out of Congress, and the White House over them, knocked it right out of me. Not so with CT Working Families Party. Oh brother, here comes the sob stories: “We think $165 million could be used in a more appropriate way to keep people in their homes, create more jobs and health care,” said Emeline Bravo-Blackport, a gardener. She marveled at AIG executive James Haas’ colonial house, which has stunning views of a golf course and the Long Island Sound. The Fairfield house is “another part of the world” from her life in nearby Bridgeport, which flirted with bankruptcy in the 1990s and still struggles with foreclosures and unemployment.” “Lord, I wonder what it’s like to live in a house that size,” she said. Another protester, Claire Jeffery, of Bloomfield, said she’s on the verge of foreclosure. She works as a housekeeper; her husband, a truck driver, can’t find work. I’m not sure how protesting the AIG executives’ homes is going to help with any of that. They could be, you know… working. Rochester "Tea Party" [Hell, if I'da known about this-I'DA BEEN THERE!!! Who ever organized this should have given it some advertising, maybe local call-in shows, Lonsberry, Brother Wease, etc. The comment copied below indicates "a re-run" on April 15th; if so-I'LL BE THERE!!] Last Update: 3/12 6:37 am (Rochester, N.Y.) - Angry taxpayers upset with the Fluffy administration and Congress rallied on East Main Street Wednesday to protest the government's bailout plan.They called it a "Tea Party Rally."Group members said they're protesting out-of-control spending and tax hikes by both federal and state governments."In New York state, we have the double whammy…living in a state with the highest taxes in the union…it's squeezing us. We're losing population and losing businesses," said one protestor. Passage of Fluffy's nearly $800 billion porkulus package drew similar protests in 40 major cities across the country last week. One of the dozen replies: [UserName]-3/11/2009 We had about 40 people in the cold and wind. Still, this was one of about 60 Tea Parties held so far nationwide since February 22. April 15 is our next protest date. 'Bout Dam' Time! [I guess Guvner Dave has FINALLY RECOVERED from his cerebral-anal inversion! With the state coffers bleeding money faster every passing day, he's finally decided that one of the state's most powerful labor unions is fair game. Maybe the $16BILLION in red ink startled him into action. Now he needs to renegotiate the state employees' retirement plan. It's one of those "defined benefit" plans where employees contribute exactly "zero-point-crap" and the retiree's monetary benefit is raised every year or two with the taxpayers making up any shortfall in investment returns!! They should be forced to live "in the real world" under a "defined contribution" plan.....Ya don't put nuttin' in-Ya don't git nuttin' out!!! While yer attit Dave, renegotiate all the bucks the state teacher's union fleeced the taxpayers out of.... that'd probably make up the budget shortfall in a cuppla months!!] (Abany, N.Y.) AP - Gov. David Paterson is ordering 8,900 state workers be laid off [just over 4%!] after unions refused concessions amid a staggering economic downturn. Budget Director Laura Anglin tells The Associated Press that Paterson is calling for the first state layoffs since the late 1990s after unions refused to even provide counter proposals. The layoffs could begin July 1. Anglin says unions have been informed, but could still try to return to the table in the coming days before a budget is negotiated. She says the layoffs will save nearly $500 million over two years. The state faces a $16 billion deficit this year. Kazillionaires Out Of Billionaires? [Just when I thought there were no more; another vehicle to control more of the American economy on the taxpayers' backs. Essentially, the government loans the investors the money to buy the toxicity. If the investors take a loss they don't have to repay Fluffy; If the investors have a profit-they'll probably be subject to current or future federal compensation limits.... just more socialistic manipulation!!] WASHINGTON (MarketWatch) - After months of delay, the Treasury Department detailed a plan Monday to clear out as much as $1 trillion in so-called toxic assets from the financial sector in an effort to strengthen the banks enough to get them to lend again. The public-private plan would have private investors and the Treasury put in equal amounts of money that would then be backed by a loan guarantee from the Federal Deposit Insurance Corp. to buy loans and mortgage-backed securities from the banks. Both the taxpayers and the private investors would gain from any profits if the assets eventually gain value. The taxpayer would take most of the downside risk. The plan is considered the linchpin of the government's strategy to get the financial system working again to provide the credit the economy needs. Since the credit crunch intensified in September, millions of jobs have been lost and the economy has contracted at the fastest pace in decades. The fallout from the U.S. banking crisis has spread around the globe. The assets are considered "toxic" because the market for them has dried up as home prices have plunged. Banks are unwilling to sell the loans and securities for pennies on the dollar, and investors are cautious about overpaying for assets that might become worthless. The Treasury plan is an attempt to give both the banks and potential buyers an incentive to make a deal. The Treasury program has been eagerly awaited for the past six weeks after "Turbo-Tax Tim" Geithner's initial roll-out in early February was panned by the market. The reaction was highly favorable on Monday. Stocks jumped on Wall Street on optimism that the plan would work. Banks stocks in particular gained. The plan offers "the best prospect for a financial recovery," said Lawrence Summers, top economic adviser to The Fluffmeister. "The goal of this program is to restart the market for legacy securities, allowing banks and other financial institutions to free up capital and stimulate the extension of new credit," the Treasury said in a news release. The plan was designed "to make the most of taxpayer resources." In a briefing for reporters, Turbo-Tax said private investors could take losses if the assets fall in price. He said an auction would determine the price paid for the assets. The details announced Monday would cover purchases of whole loans held by banks. Many analysts took a wait-and-see attitude on whether the plan would work. "Unfortunately, we will not know until we see the program in actual operation," said Douglas Elliott. "There are substantial reasons to be concerned that the program will fizzle or prove to be too expensive for the taxpayer, but there are also some grounds for hope." One key stumbling block is that the assets could already have lost 70% of their value, Elliot said. Jeremy Siegel, a professor at the Wharton School of Business, said the plan would prove attractive to private investors because it was like a "call-option" on the toxic assets. "If the asset values go below the purchase price, the Treasury is going to eat that loss. This plan is definitely going to work," Siegel said in a television interview. The Treasury's ambitious program would revolve around five steps: [1.] A bank decides what pool of assets they would like to sell. [2.] After determining that it would be willing to leverage the pool, the FDIC will conduct an auction. For instance, mortgages with $100 face value would be bought for $84. Of the $84, the FDIC would provide guarantees for $72 of financing, leaving $12 of equity. [3.] The Treasury would then provide 50% of the equity financing. In this example, [4.] Treasury would invest $6 and the private investor would contribute the other $6. [5.] The private investor would manage the servicing of the asset pool using managers approved by the FDIC. Til Nex'Time....