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Fed Urges Secrecy on Banks in Bailout Programs
2009-08-27, ABC News/Reuters
http://abcnews.go.com/Business/wireStory?id=8426669

The U.S. Federal Reserve asked a federal judge not to enforce her order that it reveal the names of the banks that have participated in its emergency lending programs and the sums they received, saying such disclosure would threaten the companies and the economy. The central bank filed its request ... two days after Chief Judge Loretta Preska of the U.S. District Court in Manhattan ruled in favor of Bloomberg News, which had sought information under the federal Freedom of Information Act. Preska said the Fed failed to show that revealing the names would stigmatize the banks and result in "imminent competitive harm." Underlying this case and a similar one involving News Corp's Fox News Network is a question of how much the public has a right to know about how the government is bailing out a financial system in a crisis. The case arose when two Bloomberg reporters submitted FOIA requests about actions the Fed took to shore up the financial system in 2007 and early 2008, including an expansion of lending programs and the sale of Bear Stearns Cos to JPMorgan.

Note: Don't tax payers have a right to know to which bankds the trillions of tax dollars are going in the bank bailout? For lots more on government secrecy, click here.

Secret process benefits pet projects
2009-08-26, Houston Chronicle (One of Houston's leading newspapers)
http://www.chron.com/disp/story.mpl/hotstories/6587768.html

A sleepy Montana checkpoint along the Canadian border that sees about three travelers a day will get $15 million under President Barack Obama's economic stimulus plan. A government priority list ranked the project as marginal, but two powerful Democratic senators persuaded the administration to make it happen. Despite Obama's promises that the stimulus plan would be transparent and free of politics, the government is handing out $720 million for border upgrades under a process that is both secretive and susceptible to political influence. It wasn't supposed to be that way. In 2004, Congress ordered Homeland Security to create a list, updated annually, of the most important repairs at checkpoints nationwide. But the Obama administration continued a Bush administration practice of considering other, more subjective factors when deciding which projects get money. The results: • A border station in Homeland Security Secretary Janet Napolitano's home state of Arizona is getting $199 million, five times more than any other border station. • A checkpoint in Laredo, Texas, which serves more than 55,000 travelers and 4,200 trucks a day, is rated among the government's highest priorities but was passed over for stimulus money. • The Westhope, N.D., checkpoint, which serves about 73 people a day and is among the lowest-priority projects, is set to get nearly $15 million for renovations. The Whitetail project, which involves building a border station the size and cost of a Hollywood mansion, benefited from two key allies, Montana Sens. Max Baucus and Jon Tester.

Note: For lots more on government corruption, click here.

Healthy people with swine flu should not be given Tamiflu, says WHO
2009-08-21, The Telegraph (One of the UK's leading newspapers)
http://www.telegraph.co.uk/health/swine-flu/6066444/Healthy-people-with-swine...

Healthy people who catch swine flu but show only mild symptoms should not be given Tamiflu, the World Health Organisation (WHO) has said. The advice contradicts British policy on the issue, which has seen hundreds of thousands of doses of the antiviral given to people with the virus. Today's advice, published on the WHO website, said most patients were experiencing typical flu symptoms and would get better within a week. It said Tamiflu (also called oseltamivir) and another antiviral Relenza (also called zanamivir) should not be given to healthy people who have only mild symptoms. The latest WHO advice, from a panel of international experts, comes as new figures show that 45,986 courses of antivirals were given to patients in England in the week ending August 18. In the previous week, 90,363 courses of antivirals were given out. There have been fears that mass use of Tamiflu will encourage the virus to become resistant to the antiviral. Researchers have also expressed concern over the side effects of the drug, including sickness, nightmares and insomnia in children. A team from Oxford University said earlier this month children with mild symptoms should not be given the antiviral to combat swine flu and urged the Department of Health to urgently rethink its policy.

Note: To read an article showing Tamiflu and Relenza may not be safe for children, click here. For other incisive articles revealing major manipulations involving the swine flu, click here.

Swine flu jab link to killer nerve disease: Leaked letter reveals concern of neurologists
2009-08-15, Daily Mail (One of the U.K.'s most popular newspapers)
http://www.dailymail.co.uk/news/article-1206807/Swine-flu-jab-link-killer-ner...

A warning that the new swine flu jab is linked to a deadly nerve disease has been sent by the Government to senior neurologists in a confidential letter. The letter from the Health Protection Agency, the official body that oversees public health, has been leaked to The Mail on Sunday, leading to demands to know why the information has not been given to the public before the vaccination of millions of people, including children, begins. [The letter] tells the neurologists that they must be alert for an increase in a brain disorder called Guillain-Barre Syndrome (GBS), which could be triggered by the vaccine. GBS attacks the lining of the nerves, causing paralysis and inability to breathe, and can be fatal. The letter, sent to about 600 neurologists on July 29, is the first sign that there is concern at the highest levels that the vaccine itself could cause serious complications. It refers to the use of a similar swine flu vaccine in the United States in 1976 when: * More people died from the vaccination than from swine flu. * 500 cases of GBS were detected. * The vaccine may have increased the risk of contracting GBS by eight times. * The vaccine was withdrawn after just ten weeks when the link with GBS became clear. * The US Government was forced to pay out millions of dollars to those affected. Concerns have already been raised that the new vaccine has not been sufficiently tested and that the effects, especially on children, are unknown. The British Neurological Surveillance Unit (BNSU), part of the British Association of Neurologists, has been asked to monitor closely any cases of GBS as the vaccine is rolled out. One senior neurologist said last night: ‘I would not have the swine flu jab because of the GBS risk.’

Note: For more on the swine flu scare and the dangers of vaccines, click here.

A Whole Industry Is Waiting For A Pandemic
2009-07-21, Der Spiegel (Germany's leading news magazine)
http://www.spiegel.de/international/world/0,1518,637119,00.html

In an interview with SPIEGEL, epidemiologist Tom Jefferson speaks about dangerous fear-mongering, misguided, money-driven research and why we should all be washing our hands a lot more often. SPIEGEL: Do you consider the swine flu to be particularly worrisome? Jefferson: There are some people who make predictions year after year, and they get worse and worse. None of them so far have come about, and these people are still there making these predictions. Sometimes you get the feeling that there is a whole industry almost waiting for a pandemic to occur. SPIEGEL: Who do you mean? Jefferson: The WHO and public health officials, virologists and the pharmaceutical companies. They've built this machine around the impending pandemic. And there's a lot of money involved, and influence, and careers, and entire institutions! And all it took was one of these influenza viruses to mutate to start the machine grinding. SPIEGEL: Do you think the WHO declared a pandemic prematurely? Jefferson: Don't you think there's something noteworthy about the fact that the WHO has changed its definition of pandemic? The old definition was a new virus, which went around quickly, for which you didn't have immunity, and which created a high morbidity and mortality rate. Now the last two have been dropped, and that's how swine flu has been categorized as a pandemic.

Note: For lots more on the Swine Flu "false pandemic," click here.

Swine flu vaccine rushed through safety checks
2009-07-13, Times of London (One of the UK's leading newspapers)
http://www.timesonline.co.uk/tol/news/uk/health/article6694046.ece

A swine flu vaccine will be fast-tracked for use in Britain within five days once it is developed, and 130 million doses are on order. The Department of Health expects to have enough vaccine this year to give it to half the population. Further supplies will be available if needed. Each person will need two doses of the vaccine, unless one single jab is found to provide high rates of immunity. The first doses specific to the H1N1 swine flu virus are set to arrive in September and could be given regulatory approval in less than a week. The move came after the first British patient without underlying health problems died from swine flu, taking the number of swine flu-linked deaths in Britain to 15. Peter Holden, the British Medical Association’s lead negotiator on swine flu, said that ... although swine flu was not generally causing serious illness in patients, health officials were eager to start a mass vaccination campaign, starting first on groups that were susceptible to infection or prone to complications. It is likely that the elderly would be given a seasonal flu jab to guard against other circulating flu strains — as happens every year — as well as the swine flu vaccination. “The high-risk groups will be done at GPs’ surgeries. People are still making decisions over this, but we want to get cracking before we get a second wave, which is traditionally far more virulent,” Dr Holden said. It takes several weeks or months to make flu vaccines, which are cultured using chicken eggs. The European Medicines Agency said the fast-tracked approval procedure has involved trials of a “mock-up” vaccine and that the speed would not compromise patient safety. “The vaccines are authorised with a detailed risk management plan,” the agency said.

Important Note: Don't be fooled by this media propaganda. The same rushed attitude is what led to hundreds of deaths from the swine flu vaccine in 1976. Click here for a powerful CBS 60 Minutes video showing how a huge vaccine propaganda campaign by the government led to these deaths. And a recent article in The Scotsman quotes a spokesperson for the Scottish government saying "We have said that a vaccine is being worked on and the plan is to vaccinate everybody." Remember that the media is beholden to pharmaceutical companies for billions of dollars in advertising income. For lots more powerful information on this vital topic, click here.

C Street House at Congress Run by Secretive 'The Family'
2009-07-13, MSNBC
http://www.msnbc.msn.com/id/31890176

We ... have more tonight on the secretive religious group, the Family, that appears to be the connective tissue of the Senator Ensign sex scandal and the Governor Mark Sanford of South Carolina sex scandal. Jeff Sharlet, who infiltrated and who wrote on this little understood organization, will be back with us tonight. If you consult this building‘s financial paper trail, you will find that it‘s actually considered to be a church. That designation makes C Street a convenient tax-free haven for the secretive organization that runs it, an organization known as the Family. It also makes for some awkward tax and income questions for the at least five, probably seven members of Congress who live at the house, in exchange for what appears to be substantially below market rent. Jeff Sharlet, who secretly infiltrated the family to write a book [The Family] about them, the C Street house is a former convent. It‘s used as a sort of subsidized, really upscale dorm for members of Congress who are associated with this powerful, poorly understood religious group. The Family and the house at C Street have ended up reluctantly in the headlines now because of the two major politicians‘ sex scandals that are embroiling the Republican Party this summer and that have taken two of their reported 2012 presidential hopefuls out of political contention. Embattled Nevada Senator John Ensign lives at the C Street house. The husband of Senator Ensign‘s mistress says that prominent members of the Family ... as well as other members of Congress who live at C Street—were both aware of Ensign‘s secret affair and were involved in his efforts to pay off the mistress and her family. South Carolina Governor Mark Sanford mentioned C Street by name in his long public statement of regret about his affair with a woman in Argentina.

Note: To watch this amazing segment at YouTube, click here. And for more on how political sex scandals may be much more commonplace than you might think, click here.

Ignore the health scare professionals: you won't die of swine flu
2009-07-12, The Telegraph blogs (One of the UK's leading newspapers)
http://blogs.telegraph.co.uk/news/danielhannan/100002999/ignore-the-health-sc...

Swine flu is a nasty disease, but no nastier than other strains of influenza. True, it has killed hundreds of people in Mexico; but even there, other variants of ‘flu virus have been far more lethal. Why, then, the urgent need to inoculate the entire British population? Perhaps I’m being overly cynical, but I can’t help wondering whether we’re being pushed into a wrong-headed course of action by the health scare industry. We’re told that Tamiflu needs to be taken at once, without a moment’s delay – meaning that anyone with a sniffle is likely to start glugging the stuff. We’re also told that the virus may mutate, meaning – conveniently – that we’ll soon need a new variety of medicine. In any case, these flu vaccines have short shelf lives. Good news for the drug manufacturers and their lobbyists; bad news for the taxpayer. Ministers must suspect that the danger is being exaggerated. Yet they would rather spend gazillions than run the slightest risk of being accused of not having done enough. And, needless to say, there isn’t a medical advisory body in the world that will say: “Actually, minister, considering everything in the round, the danger posed by this virus is minor, and we recommend the disbandment of this panel”. You may think I am being unconscionably flippant. But back in April, when newspapers were filling their pages with science fiction scenarios of a deadly epidemic, I suggested that, taking everything together, we weren’t going to die of swine flu. Who has the better track record so far: the Big Pharma doom mongers, or this blog?

Kelly's Book of Secrets
2009-07-05, Daily Express (One of the UK's largest-circulation newspapers)
http://www.express.co.uk/posts/view/111971/Kelly-s-book-of-secrets

Weapons inspector David Kelly was writing a book exposing highly damaging government secrets before his ­mysterious death. He was intending to reveal that he warned Prime Minister Tony Blair there were no weapons of mass destruction anywhere in Iraq weeks before the ­British and American invasion. He had several discussions with a publisher in Oxford and was seeking advice on how far he could go without breaking the law on secrets. Following his death, his computers were seized and it is still not known if any rough draft was discovered by investigators and, if so, what happened to the material. Dr Kelly was also intending to lift the lid on a potentially bigger scandal, his own secret dealings in germ warfare with the apartheid regime in South Africa. US television investigators have spent four years preparing a 90-minute documentary, Anthrax War, suggesting there is a global black market in anthrax and exposing the mystery “suicides” of five government germ warfare scientists from around the world. Director Bob Coen said: ‘‘The deeper you look into the murky world of governments and germ warfare, the more worrying it becomes. We have proved there is a black ­market in anthrax. David Kelly was of particular interest to us because he was a world expert on anthrax and he was involved in some degree with assisting the secret germ warfare programme in apartheid South Africa.” Dr Kelly was found dead in woods near his Oxfordshire home on July 17 2003. His apparent suicide came two days after he was interrogated in the Commons over his behind-the-scenes role in exposing the flaws in the “sexed-up” Number 10 dossier which justified Britain going to war with Iraq. Conspiracy theorists have claimed he was murdered.

Note: For more on the CBC documentary Anthrax War, click here. And to read about the strange deaths of 13 renowned microbiologists in the space of less than five months, click here.

Senate Bill Would Fine People More Than $1,000 for Refusing Health Care Coverage
2009-07-02, Fox News/Associated Press
http://www.foxnews.com/politics/2009/07/02/senate-democrats-trim-cost-health-...

Americans who refuse to buy affordable medical coverage could be hit with fines of more than $1,000 under a health care overhaul bill unveiled Thursday by key Senate Democrats looking to fulfill President Barack Obama's top domestic priority. The Congressional Budget Office estimated the fines will raise around $36 billion over 10 years. Senate aides said the penalties would be modeled on the approach taken by Massachusetts, which now imposes a fine of about $1,000 a year on individuals who refuse to get coverage. Under the federal legislation, families would pay higher penalties than individuals. In a revamped health care system envisioned by lawmakers, people would be required to carry health insurance just like motorists must get auto coverage now. The government would provide subsidies for the poor and many middle-class families, but those who still refuse to sign up would face penalties. Called "shared responsibility payments," the fines would be set at least half the cost of basic medical coverage, according to the legislation. The goal is to nudge people to sign up for coverage when they are healthy, not wait until they get sick. The legislation would exempt certain hardship cases from fines. The fines would be collected through the income tax system. Obama wants a bill this year that would provide coverage to the nearly 50 million Americans who lack it and reduce medical costs. In a statement, Obama welcomed the legislation, saying it "reflects many of the principles I've laid out." The government's costs would be covered by a combination of higher taxes and cuts in projected Medicare and Medicaid spending.

Note: How can Congress even consider forcing people to buy insurance with threat of a major fine? What happened to the country of freedom and liberty? And is the people or the HMOs who benefit here?

Pentagon Exam Calls Protests 'Low-Level Terrorism,' Angering Activists
2009-06-17, Fox News
http://www.foxnews.com/story/0,2933,526972,00.html

A written exam administered by the Pentagon labels "protests" as a form of “low-level terrorism” – enraging civil liberties advocates and activist groups who say it shows blatant disregard of the First Amendment. The written exam, given as part of Department of Defense employees’ routine training, includes a multiple-choice question that asks: “Which of the following is an example of low-level terrorism?” – Attacking the Pentagon – IEDs – Hate crimes against racial groups – Protests. The correct answer, according to the exam, is "Protests." “Its part of a pattern of equating dissent and protest with terrorism," said Ann Brick, an attorney with the American Civil Liberties Union, which obtained a copy of the question after a Defense Department employee who was taking the test printed the screen on his or her computer terminal. "It undermines the core constitutional values the Department of Defense is supposed to be defending,” Brick said, referring to the First Amendment right to peaceably assemble. She said the ACLU has asked the Defense Department to remove the question and send out a correction to all employees who took the exam. “There were other employees who were unhappy with it and disturbed by it,” Brick said. Anti-war protesters, who say they have been targets of federal surveillance for years, were livid when they were told about the exam question. “That’s illegal,” said George Martin, national co-chairman of United for Peace and Justice. “Protest in terms of legal dissent has to be recognized, especially by the authorities. It’s not terrorism or a lack of patriotism. We care enough to be active in our government.”

Note: For lots more on the continually-escalating government threats to civil liberties, click here.

How MI5 blackmails British Muslims
2009-05-21, The Independent (One of the U.K.'s leading newspapers)
http://www.independent.co.uk/news/uk/home-news/exclusive-how-mi5-blackmails-b...

Five Muslim community workers have accused MI5 of waging a campaign of blackmail and harassment in an attempt to recruit them as informants. The men claim they were given a choice of working for the Security Service or face detention and harassment in the UK and overseas. They have made official complaints to the police, to the body which oversees the work of the Security Service and to their local MP Frank Dobson. Now they have decided to speak publicly about their experiences in the hope that publicity will stop similar tactics being used in the future. Three of the men say they were detained at foreign airports on the orders of MI5 after leaving Britain on family holidays last year. After they were sent back to the UK, they were interviewed by MI5 officers who, they say, falsely accused them of links to Islamic extremism. On each occasion the agents said they would lift the travel restrictions and threat of detention in return for their co-operation. When the men refused some of them received what they say were intimidating phone calls and threats. Two other Muslim men say they were approached by MI5 at their homes after police officers posed as postmen. Each of the five men, aged between 19 and 25, was warned that if he did not help the security services he would be considered a terror suspect. A sixth man was held by MI5 for three hours after returning from his honeymoon in Saudi Arabia. He too claims he was threatened with travel restrictions if he tried to leave the UK."

Note: For lots more on the "war on terror" from reliable sources, click here.

666: Goldman's latest bonus bears the mark of the beast
2009-05-03, The Independent (One of the U.K.'s leading newspapers)
http://www.independent.co.uk/news/business/analysis-and-features/666-goldmans...

Something strange is afoot when Popbitch – provider of a weekly email beloved of students, stuffed full of celebrity tittle-tattle and links to the silliest miscellany of the web – breaks off from such glorious trivia to encourage readers to support GoldmanSachs666.com, a deadly serious website measuring the political tentacles of the mighty investment bank. The credit-market catastrophe that has plunged the world into recession is everywhere stirring new ways of thinking about how banking relates to the wider world, but nowhere more so than among a generation coming into political consciousness in these searing times. Something is brewing, some argue, that could make the "regulatory-financial complex" something to rail against in the same way that the military-industrial complex was in the Cold War. This should worry Goldman Sachs. More so than any other firm, it exists at the intersection of politics and high finance. "It was listening to the news coming out of AIG that got me fired up," says Mike Morgan, founder of GoldmanSachs666.com. "While politicians were screaming about $165m paid out to AIG executives in bonuses, $180bn was walking out the door." The Federal Reserve and the then-treasury secretary, Hank Paulson, decided to funnel public funds to AIG, and its counterparties were paid in full. You don't have to scratch far into the internet to find conspiracy theories: Mr Paulson was chief executive of Goldman before going into government; he appointed Edward Liddy, formerly of Goldman, to run AIG; Goldman was AIG's biggest counterparty, receiving $12.9bn from AIG after the bailout.

Note: For lots more on the Wall Street bailout, click here.

How to Deal with Swine Flu: Heeding the Mistakes of 1976
2009-04-27, Time Magazine
http://www.time.com/time/health/article/0,8599,1894129,00.html

In February 1976, an outbreak of swine flu struck Fort Dix Army base in New Jersey, killing a 19-year-old private and infecting hundreds of soldiers. Concerned that the U.S. was on the verge of a devastating epidemic, President Gerald Ford ordered a nationwide vaccination program at a cost of $135 million (some $500 million in today's money). Within weeks, reports surfaced of people developing Guillain-Barré syndrome, a paralyzing nerve disease that can be caused by the vaccine. By April, more than 30 people had died of the condition. Facing protests, federal officials abruptly canceled the program on Dec. 16. The epidemic failed to materialize. Medical historians and epidemiologists say ... the decisions made in the wake of the '76 outbreak — and the public's response to them — provide a cautionary tale for public health officials, who may soon have to consider whether to institute draconian measures to combat the disease. "I think 1976 provides an example of how not to handle a flu outbreak," says Hugh Pennington, an emeritus professor of virology at Britain's University of Aberdeen. Despite modern advances in microbiology, today's health officials still make decisions in a "cloud of uncertainty," Pennington says. "At the moment, our understanding of the current outbreak is similarly limited. For example, we don't yet understand why people are dying in Mexico but not elsewhere." Howard Markel, director of the Center for the History of Medicine at the University of Michigan and a historical consultant to the CDC on flu pandemics, says the most vexing decision facing health officials is when to institute mass vaccination programs.

Note: To watch two short commercials made in 1976 showing clear scare tactics, click here. Only one person died from the actual flu in this 1976 "epidemic," yet more than 30 died of the flu vaccine. To explore the serious risks of vaccines reported in the media, click here. For lots more on bird and swine flu scares, click here.

Control of Cybersecurity Becomes Divisive Issue
2009-04-17, New York Times
http://www.nytimes.com/2009/04/17/us/politics/17cyber.html?partner=rss&emc=rs...

The National Security Agency has been campaigning to lead the government’s rapidly growing cybersecurity programs, raising privacy and civil liberties concerns among some officials who fear that the move could give the spy agency too much control over government computer networks. The security agency’s interest in taking over the dominant role has met resistance, including the resignation of the Homeland Security Department official who was until last month in charge of coordinating cybersecurity efforts throughout the government. Rod Beckstrom, who resigned in March as director of the National Cyber Security Center at the Homeland Security Department, said ... that he feared that the N.S.A.’s push for a greater role in guarding the government’s computer systems could give it the power to collect and analyze every e-mail message, text message and Google search conducted by every employee in every federal agency. Mr. Beckstrom said he believed that an intelligence service that is supposed to focus on foreign targets should not be given so much control over the flow of information within the United States government. To detect threats against the computer infrastructure — including hackers, viruses and intrusions by foreign agents and terrorists — cybersecurity guardians must have virtually unlimited access to networks. Mr. Beckstrom argues that those responsibilities should be divided among agencies. “I have very serious concerns about the concentration of too much power in one agency,” he said. “Power over information is so important, and it is so difficult to monitor, that we need to have checks and balances.”

Note: For further disturbing reports from reliable sources on government efforts to establish total surveillance systems, click here.

Why Creditors Should Suffer, Too
2009-04-05, New York Times
http://www.nytimes.com/2009/04/05/business/economy/05view.html?partner=rss&em...

The Obama administration’s proposals to reform financial regulation sound ambitious enough as they aim to bring companies like A.I.G. under a broader umbrella of government rule-making and scrutiny. But there is a big hole in these proposals, as there has already been in the government’s approach to bailing out failing financial companies. Even as they focus on firms deemed too big to fail, the new proposals immunize the creditors and counterparties of such firms by protecting them from their own lending and trading mistakes. This pattern has been evident for months, with the government aiding creditors and counterparties every step of the way. Yet this has not been explained openly to the American public. In truth, it’s not the shareholders of the American International Group who benefited most from its bailout; they were mostly wiped out. The great beneficiaries have been the creditors and counterparties at the other end of A.I.G.’s derivatives deals — firms like Goldman Sachs, Merrill Lynch, Deutsche Bank, Société Générale, Barclays and UBS. These firms engaged in deals that A.I.G. could not make good on. The bailout, and the regulatory regime outlined by Timothy F. Geithner, the Treasury secretary, would give firms like these every incentive to make similar deals down the road. In both the bailouts and in the new proposals, the government is effectively neutralizing creditors as a force for financial safety. This suggests a scary possibility — that the next regulatory regime could end up even worse than the last.

Note: For a powerfully revealing archive of reports from reliable sources on the hidden realities of the financial bailout, click here.

Big Bonuses at Fannie and Freddie Draw Fire
2009-04-04, New York Times
http://www.nytimes.com/2009/04/04/business/04bonus.html?partner=rss&emc=rss&p...

Fannie Mae and Freddie Mac, the two troubled companies at the heart of the nation’s mortgage market, are set to pay their employees “retention bonuses” totaling $210 million, despite calls from lawmakers to cancel the payments. The bonuses, which were made public on Friday, were defended by the companies’ federal regulator, James B. Lockhart, who said he intended to let them proceed. In a letter sent last week to Senator Charles E. Grassley, an Iowa Republican, Mr. Lockhart disclosed that 7,600 Fannie and Freddie workers were scheduled to receive payouts aimed at retaining those “employees most critical to keep and difficult to replace.” Under the plan, 213 employees will receive retention bonuses worth more than $100,000 this year, and one Freddie Mac executive will receive $1.3 million. Those figures drew sharp rebukes from Mr. Grassley and other lawmakers, who noted that Fannie and Freddie had received pledges of $400 billion from taxpayers to offset huge losses since they were seized by the government in September. Similar bonuses paid by the American International Group, which was also bailed out by taxpayers, incited fiery attacks from the White House and legislators when they were revealed last month. “It’s hard to see any common sense in management decisions that award hundreds of millions in bonuses when their organizations lost more than $100 billion in a year,” Mr. Grassley said in a statement. “It’s an insult that the bonuses were made with an infusion of cash from taxpayers.”

Note: For many revealing reports on the realities behind the Wall Street bailouts, click here.

Obama’s Ersatz Capitalism
2009-04-01, New York Times
http://www.nytimes.com/2009/04/01/opinion/01stiglitz.html?partner=rss&emc=rss...

The Obama administration’s $500 billion or more proposal to deal with America’s ailing banks has been described by some in the financial markets as a win-win-win proposal. Actually, it is a win-win-lose proposal: the banks win, investors win — and taxpayers lose. Treasury hopes to get us out of the mess by replicating the flawed system that the private sector used to bring the world crashing down, with a proposal marked by overleveraging in the public sector, excessive complexity, poor incentives and a lack of transparency. In theory, the administration’s plan is based on letting the market determine the prices of the banks’ “toxic assets” — including outstanding house loans and securities based on those loans. The reality, though, is that the market will not be pricing the toxic assets themselves, but options on those assets. The two have little to do with each other. The government plan in effect involves insuring almost all losses. Since the private investors are spared most losses, then they primarily “value” their potential gains. This is exactly the same as being given an option. Under the plan by Treasury Secretary Timothy Geithner, the government would provide about 92 percent of the money to buy the asset but would stand to receive only 50 percent of any gains, and would absorb almost all of the losses. Some partnership! What the Obama administration is doing is far worse than nationalization: it is ersatz capitalism, the privatizing of gains and the socializing of losses. It is a “partnership” in which one partner robs the other.

Note: The author of this analysis, Joseph E. Stiglitz, is a professor of economics at Columbia University. He was chairman of the Council of Economic Advisers from 1995 to 1997, and was awarded the Nobel prize in economics in 2001. For many revealing reports on the realities behind the Wall Street bailouts, click here.

Canada blocks outspoken British MP
2009-03-20, Toronto Star
http://www.thestar.com/news/canada/article/605682

Canadian officials have denied outspoken anti-war British MP George Galloway entry into Canada on grounds he poses a threat to national security. Alykhan Velshi, a spokesperson for Immigration Minister Jason Kenney, said today Galloway has openly supported Hamas, classified as a terrorist group in Canada, as well as other terrorists. Galloway, who was expected to begin a Canadian speaking tour in Toronto on March 30, called the ban outrageous. Galloway said his supposed support for Hamas amounted to leading an aid convoy into Gaza to break the "illegal siege" following the month-long Israeli incursion in January. "I led a convoy of 110 British vehicles, more than 300 British citizens, to break the illegal siege of Gaza just a few days ago. Most people in the world think that feeding people under siege is something to be commended rather than something to get you banned," he told the Star in a telephone interview from his London office. He noted that when news he was being denied entry to visit Canada first appeared in the British press, it was supposedly because he had expressed opposition to the NATO-led Afghan war. Some critics have called the government's decision to bar Galloway an attack on free speech. Galloway was expelled from the Labour Party in 2003 for urging British soldiers not to fight in Iraq. He formed his own party, Respect, and won re-election to the Commons in 2005.

A.I.G. Planning Huge Bonuses After $170 Billion Bailout
2009-03-15, New York Times
http://www.nytimes.com/2009/03/15/business/15AIG.html?partner=rss&emc=rss&pag...

The American International Group, which has received more than $170 billion in taxpayer bailout money from the Treasury and Federal Reserve, plans to pay about $165 million in bonuses by Sunday to executives in the same business unit that brought the company to the brink of collapse last year. Treasury Secretary Timothy F. Geithner told the firm they were unacceptable and demanded they be renegotiated, a senior administration official said. But the bonuses will go forward because lawyers said the firm was contractually obligated to pay them. The payments to A.I.G.’s financial products unit are in addition to $121 million in previously scheduled bonuses for the company’s senior executives and 6,400 employees across the sprawling corporation. The payment of so much money at a company at the heart of the financial collapse that sent the broader economy into a tailspin almost certainly will fuel a popular backlash against the government’s efforts to prop up Wall Street. A.I.G., nearly 80 percent of which is now owned by the government, defended its bonuses, arguing that they were promised last year before the crisis and cannot be legally canceled. Of all the financial institutions that have been propped up by taxpayer dollars, none has received more money than A.I.G.. The bonuses will be paid to executives at A.I.G.’s financial products division, the unit that wrote trillions of dollars’ worth of credit-default swaps that protected investors from defaults on bonds backed in many cases by subprime mortgages. Seven executives at the financial products unit were entitled to receive more than $3 million in bonuses.

Note: For many revelations of the amazing realities of the Wall Street bailout, click here.

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