Tag Archives: Financial Crisis

The Video That Will Put Geithner Behind Bars

You gotta see this! If this doesn’t convince you that Timothy Geithner knew about the securities shenanigans that were going on at Lehman, than I don’t know what will.

Keep in mind, that Geithner ran Lehman through 3 “stress tests” prior to bankruptcy; all of which Lehman failed, and yet, nothing was done. Anton R. Valukas–the examiner who wrote the 2,200 page investigative-report which was released on Thursday– has provided plenty of information detailing Lehman’s “materially misleading” accounting and “actionable balance sheet manipulation.”

In other words, they cooked the books

via The Video That Will Put Geithner Behind Bars | Economy | AlterNet.

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Filed under Big Government, Economics, Federal Reserve, Government Spending, Liberals, Tim Geithner, TREASURY, Treasury Bills, Treasury Bonds

Analysis: What Greece tells us about Europe

Athens, Greece (CNN) — The size and scale of the protests in Greece are hard to ignore. Athenians filled Constitution Square in the heart of the capital protesting the austerity measures being put forward by the government of George Papandreou. This is his first major test on the ground since taking office last autumn.

It is quite easy to be swept up into the strike action in Greece and the other labor protests we have been witnessing in Europe this week from the airline sector (Lufthansa and British Airways) to the energy sector (French giant Total), but it would be a mistake to see them as classic disputes over wages.

In Greece, Spain, Portugal and Italy protests go right to the heart of what many in the labor movement and broader society see as a birthright — to continue to enjoy benefits that in today’s globalized world are disappearing fast.

Taking Greece for example, investors saw the recent strike by Ministry of Finance workers as somewhat ironic since they are the very members of the civil service who are at the forefront of the restructuring plan itself.

It is not often discussed, but many government workers enjoy preferential tax rates, can retire at the age of 54 (in some cases earlier) and enjoy 14 months of pay for 12 months worked.

via Analysis: What Greece tells us about Europe – CNN.com.

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Filed under Economic Collapse, Economics, Government Spending, Jobs, Organized Labor, Socialism

Controller: Labor-Backed Pension ‘Reform’ Would Cost City $13.2M Per Year – San Francisco News – The Snitch

​We’ve reported a bit on Supervisor Sean Elsbernd’s attempts to save the city a modest bundle via pension reform, and the SEIU’s attempts to amend the plan via Supervisor Eric Mar.

While Mar claimed his amendments wouldn’t cost the city any additional money, Elsbernd disagreed — and, now the city’s number-crunchers can quantify why. Peg Stevenson, director of the city’s performance group, has calculated that the labor-crafted Mar amendments would cost the city $13.2 million annually. Since the point of “pension reform” is to save money — and not spend more — this is a somewhat incredible development.

Here’s why the Mar amendment would cost the city millions:

With the exception of a few minuscule unions, the SEIU is the only city union that doesn’t pay into its own pension plan; the city has in the past agreed to do it for them in lieu of raises. The SEIU — via Mar — is now offering to make a trade: The union members will pay the 7.5 percent pension costs in exchange for a 7 percent pay raise. This, Mar said earlier this month during a Rules Committee meeting, was a cost-neutral exchange.

Stevenson’s calculations, however, reveal it’s not nearly so simple. The dollars San Francisco pays into SEIU workers’ pensions are untaxed; 100 percent of those payments go just where they should. Yet money paid out in salary costs is different: The city would now be on the hook for drains such as Social Security, Unemployment, and Long-Term Disability.

When you do the math, Stevenson says, the city must spend $1.16 for every dollar it pays toward workers’ salaries. Ay, there’s the rub.

It also stands to reason that if you give city workers raises, they’ll eventually be eligible for higher pensions. Stevenson said she isn’t yet able to calculate those costs — but doesn’t think it’ll change her numbers “by any order of magnitude.”

The full Board of Supervisors debates both Elsbernd’s original plan and Mar’s “labor-friendly” amendments on the 23rd. It will be interesting to see how that discussion pans out — and if the concept of pension “reform” costing the city millions in even the short-term is as ludicrous to our elected officials as it is to the rest of the civilized world.

via Controller: Labor-Backed Pension ‘Reform’ Would Cost City $13.2M Per Year – San Francisco News – The Snitch.

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Filed under Big Government, Economics, Government Spending, Organized Labor, SEIU

Greece debt bailout: EU leaders split over euro crisis | Mail Online

The European single currency is facing an ‘inevitable break-up’ a leading French bank claimed yesterday.

Strategists at Paris-based Société Générale said that any bailout of the stricken Greek economy would only provide ‘sticking plasters’ to cover the deep- seated flaws in the eurozone bloc.

The stark warning came as the euro slipped further on the currency markets and dire growth figures raised the prospect of a ‘double-dip’ recession in the embattled zone.

Read More: Greece debt bailout: EU leaders split over euro crisis | Mail Online.

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Filed under Economics, Government Spending, Socialism, World News