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Voices of Power: Elizabeth Warren
2009-10-08, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2009/10/08/AR20091008007...

LOIS ROMANO: Welcome, Elizabeth Warren, Chairman of the Congressional Oversight Committee that is tasked with scrutinizing how the Treasury Department has spent $700 billion to shore up our failing financial institutions. There's a wonderful moment [in the movie "Capitalism: a Love Story"] when [Michael Moore] asks you where the $700 billion is, and you look at him and you say, "I don't know." So the question is: why don't you know? WARREN: Well, we don't know where the $700 billion is because the system was initially designed to make sure that we didn't know. When Secretary Paulson first put this money out into the banks, he didn't ask "what are you going to do with it?" He didn't put any restrictions on it. He didn't put any tabs on where it was going to go; in other words, he didn't ask. And if you don't ask, no one tells. And so we have a system that originally put more than $200 billion into the financial institutions basically saying just take it. ROMANO: And that money is gone. You have not been able to track where that money is? WARREN: Well, we don't know where the money went from the financial institutions. The big conversation at the time was that the credit markets are frozen; if we put money into the financial institutions, they will start lending it because that's what they do when they receive money. It was called the "Healthy Banks Program." Secretary Paulson kept saying, over and over, these are investments in healthy financial institutions, no one needs any subsidy, that [the] money was going to be used in lending to small businesses and consumers and kind of get our whole credit market going again. That didn't happen.

Note: To watch a powerfully revealing, five-minute video showing the Inspector General of the Federal Reserve testifying that she doesn't know where trillions of dollars are, click here. For a comprehensive overview of the realities underlying the government's bailout of the biggest financial institutions, click here.

Medical Editors Push for Ghostwriting Crackdown
2009-09-18, New York Times
http://www.nytimes.com/2009/09/18/business/18ghost.html

The scientific integrity of medical research has been clouded in recent years by articles that were drafted by drug company-sponsored ghostwriters and then passed off as the work of independent academic authors. Yet the leading medical journals have continued to rely largely on an honor system of disclosure to detect such potential bias, asking authors to voluntarily report any industry ties or contributors to their manuscripts. But now, in light of recently released evidence that some drug makers have gone to great lengths to turn scientific articles into marketing vehicles for their products, some influential medical editors are cracking down on industry-financed ghostwriting. These editors are demanding that journals impose tougher disclosure policies for academic authors and that the journals enforce their own rules by actively investigating the provenance of manuscripts and by punishing authors who play down extensive contributions by ghostwriters. Calling for a zero tolerance policy, the editors of the medical journal PLoS Medicine, from the Public Library of Science, called for journals to identify and retract ghostwritten articles and banish their authors. “Authors found to have not declared such interest should be banned from any subsequent publication in the journal and their misconduct reported to their institutions.” In the past, researchers have raised allegations of ghostwriting in articles about quality-of-life drugs like antidepressants, painkillers and diet pills. But the situation has become more serious this year after a few editors said they had discovered ghostwriting in manuscripts about life-and-death products like cancer and hematology drugs.”

Note: For background on the prevalence of ghostwriting in major medical journals, click here and here and here.

FBI: Murder, Violent Crime Dropped in 2008
2009-09-14, New York Times/Associated Press
http://www.nytimes.com/aponline/2009/09/14/us/politics/AP-US-Crime.html

Murder and manslaughter dropped almost 4 percent last year, as reported crime overall fell around the country, according to new data released ... by the FBI. The 3.9 percent decline in killings reported to police was part of a nationwide drop in violent crime of 1.9 percent from 2007 to 2008. Rapes declined 1.6 percent, to the lowest national number in 20 years -- about 89,000. The statistics are based on crimes reported to police, who then forward the information to the FBI. There were 14,180 murder victims in the United States last year. ''What has been impressive has been how flat all the violent crime rates have been since 2000. To a large degree that's still the case, but the striking change this year has been murder,'' said Alfred Blumstein, a professor of criminal justice at Carnegie-Mellon University. The figures show that crime has come way down since its peak in the early 1990's. ''These are rates we haven't seen since the 1960's, even though the change from year to year has been rather small,'' said Blumstein. Property crimes declined overall, by 0.8 percent, but that was driven mostly by a 12.7 percent drop in car thefts. The other major categories of property crime -- burglaries and larceny-thefts -- both rose. Typically, crime is expected to rise during economic hard times, but Blumstein said last year's data was too early in the economic cycle to reflect that, because the most serious economic impacts came toward the end of 2008, and may not have affected teenagers -- the group most likely to turn to crime as their job prospects dwindle.

Note: What this report completely fails to report is that violent crime is down over 50% since 1994! Why does the major media consistently fail to report this awesome news? For verifiable information on this, click here.

CIA's black sites, illuminated
2009-08-31, Los Angeles Times
http://www.latimes.com/news/nationworld/nation/la-na-cia-detainee31-2009aug31...

The secret overseas "black sites" where the CIA conducted the interrogations are empty now, if not already dismantled. They were never examined by a congressional committee, nor inspected by the international Red Cross. The black sites not only imprisoned men but reduced them to a near helpless state. The aim, as outlined in one document, was to teach every detainee "to perceive and value his personal welfare, comfort and immediate needs more than the information he is protecting." The prisoners' arrival -- almost always in diapers -- was engineered to achieve that end. After being shaved, stripped and photographed nude, detainees were examined by CIA medical and psychological personnel. Then came a preliminary interrogation that would determine the prisoners' fate. Only those considered extremely cooperative would avoid a trio of techniques designed to produce a "baseline, dependent" state: the deprivation of clothes, solid food and sleep. Follow-up sessions would start with the prisoner standing with his back against a wall and a towel or collar to prevent whiplash wrapped around his neck. He could be thrown against the wall just once "to make a point, or 20 to 30 times consecutively." Prisoners so abhorred the repeated slamming that they would remain in so-called stress positions, such as painful kneeling postures, for hours to avoid a return to the wall, according to one Dec. 30, 2004, memo that amounts to a CIA blueprint for breaking a detainee's will. Earlier this year, the Obama administration released a series of Justice Department memos laying out legal rationales for the array of coercive interrogation methods the CIA employed.

Note: For further revelations from major media sources on the illegal methods used by the US government in its wars around the world, click here.

Health Care Battle: Lobbyists Outnumber Lawmakers
2009-08-14, ABC News
http://abcnews.go.com/Politics/HealthCare/story?id=8322683

The time, money and manpower that lobbying firms devote to courting lawmakers reveals an investment inside the Beltway of staggering proportions. For every lawmaker in Congress, there are about six lobbyists pushing their health care priorities, according to a Bloomberg News investigation released today. That's about 3,300 registered health care lobbyists working Capitol Hill. A total of $263 million has been spent on health lobbying in 2009, according to the latest data from the Center for Responsive Politics. That's more money spent on health than any other sector this year. The list of the top 20 spenders in 2009 across all sectors includes the U.S. Chamber of Commerce at No. 1, spending more than $26 million, Pharmaceutical Research and Manufacturers of America (PhRMA) at No. 3, spending $13 million, and Pfizer in the No. 6 spot, spending $11 million. Also joining the ranks of the top 20 spenders this year are Blue Cross Blue Shield, AARP, American Hospital Association, American Medical Association and Eli Lilly, each having doled out between $7 and $10 million this year. Wendell Potter, a 20-year health insurance veteran and former CIGNA vice president, ... spoke out about insurance companies operating behind the scenes. Potter recalled previous health care fights, saying insurers have undoubtedly tried to shape the battle. "It is usually done through the PR firms that work for them," Potter said. "They want to keep their fingerprints off stuff like that. "With this history, you can rest assured that the industry is up to the same dirty tricks, using the same devious PR practices it has used for many years to kill reform this year, or even better, to shape it so that it benefits insurance companies and their Wall Street investors far more than average Americans," he said.

Note: For lots more on the corrupt medical/governmental complex, click here.

TV host Andrew Castle: 'my daughter almost died from Tamiflu'
2009-08-11, Times of London (One of the UK's leading newspapers)
http://www.timesonline.co.uk/tol/news/uk/health/Swine_flu/article6791102.ece

The [UK] Health Secretary appeared on breakfast television this morning in a bid to reassure concerned parents after scientists warned that children should not be given Tamiflu. Instead he was confronted by a GMTV presenter who claimed that the drug had almost killed his daughter. Andy Burnham insisted that the Government was right to advise children to take the anti-viral drug despite a warning from researchers at the University of Oxford who called on the Department of Health urgently to reconsider its pandemic strategy. But he was tackled live on TV by Andrew Castle, Britain's former top tennis player, who said his older daughter, Georgina, had a respiratory collapse after being given the drug as a precaution during the containment stage of the pandemic. “I can tell you that my child - who was not diagnosed at all - she had asthma, she took Tamiflu and almost died,” he said. Georgina, 16, was given Tamiflu when five pupils at Alleyn’s School in south London were diagnosed with the illness in May. Castle, also a BBC tennis commentator, said he feared for his daughter’s life as medical professionals backed away from the potentially contagious child. He said: “Nobody checked that she had swine flu beforehand. The Health Protection Agency just handed it out at Alleyn’s School in south London and a lot of kids suffered in the school very heavily. It almost cost my older child her life." The study published yesterday warned that Tamiflu can cause vomiting in some children, which can lead to dehydration and the need for hospital treatment.

Note: Remember that the drug companies often place profits above public health. For an article showing how Donald Rumsfeld, former chairman of the board at the pharmaceutical which produced Tamiflu, personally made millions from the sale of Tamiflu during the avian flu scare, click here. To read an article with more information showing that Tamiflu and Relenza may not be safe for children, click here.

New Fed powers not matched with accountability
2009-06-25, Reuters News
http://www.reuters.com/article/topNews/idUSTRE55O6EZ20090625

President Barack Obama's proposal for a regulatory overhaul of the financial industry vastly expands the reach of the Federal Reserve, yet fails to make policy-makers more accountable for their actions. Critics argue that the new legislation fundamentally misses the problems that led to the financial crisis. It was a lack of enforcement by supervisors, they say, not insufficient rules, that fostered a cowboy culture of rampant risk-taking on Wall Street. "Obama is letting the Fed and everyone else off the hook by saying that the problem was with the regulations and not the regulators," said Dean Baker, co-director of the Center for Economic Policy Research in Washington. "If regulators know that even if they totally fail on the job, they will face no career consequences, then at some future point, when there is a choice between confronting the financial industry or just going along, the regulators will just go along," said Baker. Some feel uncomfortable with a broader role for the Fed primarily because of the Fed's closeness to the banking sector. The Fed is not technically a public entity. Each of the Fed's 12 branches are overseen by a nine-member board of directors, two-thirds of whom are elected by the bankers in the district. "The Federal Reserve has massive conflicts of interest that make it ill-suited for its present regulatory functions and certainly for an expanded regulatory reach," said Robert Auerbach, a professor of public affairs at the University of Texas at Austin. "The officials leading the Fed today preside over an organization that is run in substantial part by the bankers they regulate."

Note: For empowering insight into the historic roots of the Federal Reserve's unaccountability, click here.

Health Insurance Insider: 'They Dump the Sick'
2009-06-24, ABC News
http://abcnews.go.com/Business/Health/story?id=7911195

Frustrated Americans have long complained that their insurance companies valued the all-mighty buck over their health care. Today, a retired insurance executive confirmed their suspicions, arguing that the industry that once employed him regularly rips off its policyholders. "[T]hey confuse their customers and dump the sick, all so they can satisfy their Wall Street investors," former Cigna senior executive Wendell Potter said during a hearing on health insurance today before the Senate Committee on Commerce, Science, and Transportation. Potter, who has more than 20 years of experience working in public relations for insurance companies Cigna and Humana, said companies routinely drop seriously ill policyholders so they can meet "Wall Street's relentless profit expectations." "They look carefully to see if a sick policyholder may have omitted a minor illness, a pre-existing condition, when applying for coverage, and then they use that as justification to cancel the policy, even if the enrollee has never missed a premium payment," Potter said. Small businesses, in particular, he said, have had trouble maintaining their employee health insurance coverage, he said. "All it takes is one illness or accident among employees at a small business to prompt an insurance company to hike the next year's premiums so high that the employer has to cut benefits, shop for another carrier, or stop offering coverage altogether," he said. More and more people, he said, are falling victim to "deceptive marketing practices" that encourage them to buy "what essentially is fake insurance," policies with high costs but surprisingly limited benefits.

Note: For lots more on corruption in the health industry, click here.

Health care outrage goes uncovered
2009-06-19, CNN
http://www.cnn.com/2009/POLITICS/06/19/begala.health.care/index.html

You probably have never heard of Robin Beaton, and that's what's wrong with the debate over health care reform. Beaton, a retired nurse from Waxahachie, Texas, had health insurance -- or so she thought. She paid her premiums faithfully every month, but when she was diagnosed with aggressive breast cancer, her health insurance company, Blue Cross, dumped her. The insurance company said the fact that she had seen a dermatologist for acne, who mistakenly entered a notation on her chart that suggested her simple acne was a precancerous condition, allowed Blue Cross to leave her in the lurch. Beaton testified before a House subcommittee this week. So did other Americans who thought they had insurance but got the shaft. The subcommittee's chairman, Democrat Bart Stupak of Michigan, called the hearing to highlight the obnoxious and unethical practice called rescission. His researchers produced performance reviews of insurance company bureaucrats who were praised and rewarded for kicking people off their coverage. Then Stupak asked three health insurance executives the big question: Will your company pledge to end the practice of rescission except in cases of intentional fraud? All three health insurance executives said no. It was as dramatic as congressional testimony gets. Yet it got no airtime on the networks, nor, as far as I can tell, on cable news, although CNN.com did run a story. The story did not make The New York Times. Nor The Washington Post, which found space on the front page the morning after the hearing for a story on the cancellation of Fourth of July fireworks in Shippensburg, Pennsylvania, but not a story on the cancellation of health insurance for deathly ill Americans who've paid their premiums.

Note: For lots more on corruption in the health industry, click here.

Fed Would Be Shut Down If It Were Audited, Expert Says
2009-06-10, CNBC News
http://www.cnbc.com/id/31204170

The Federal Reserve's balance sheet is so out of whack that the central bank would be shut down if subjected to a conventional audit, Jim Grant, editor of Grant's Interest Rate Observer, told CNBC. With $45 billion in capital and $2.1 trillion in assets, the central bank would not withstand the scrutiny normally afforded other institutions, Grant said. "If the Fed examiners were set upon the Fed's own documents ... to pass judgment on the Fed's capacity to survive the difficulties it faces in credit, it would shut this institution down," he said. "The Fed is undercapitalized in a way that Citicorp is undercapitalized." Grant said he would support legislation currently making its way through Congress calling for an audit of the Fed. Moreover, he criticized the way the Fed has managed the financial crisis, saying the central bank's target rate should not be around zero. "I think zero is the wrong rate for almost any economy," Grant said, adding the Fed has "embarked on a vast experiment in moral hazard. Interest rates are the traffic signals in a market economy, and everything's green. ... You have to wonder whether these interest rates are the right clearing rate or rather they are the imposition of a central bank." Amid a disparity between analysts predicting there will be no rate hikes soon and the fed funds futures indicating tightening by the end of the year, Grant said he thinks the Fed indeed will begin raising rates as inflation creeps into the picture. Fed funds futures have fully priced in as much as a half-point rise in the target rate from its current range of zero to 0.25 percent. "If the hairs on the back of your neck stand up when there's too much unanimity of opinion, then one begins to worry about this," he said. "The Fed proverbially has been late."

Note: For an astonishing five-minute video clip of a Congressional hearing where the Inspector General of the Fed acknowledges she knows almost nothing about trillions of dollars missing from the Fed, click here. For many more important reports shedding light on the hidden realities of the economic crisis, click here.

Abu Ghraib abuse photos 'show rape'
2009-05-28, The Telegraph (One of the U.K.'s leading newspapers)
http://www.telegraph.co.uk/news/worldnews/northamerica/usa/5395830/Abu-Ghraib...

Photographs of alleged prisoner abuse which Barack Obama is attempting to censor include images of apparent rape and sexual abuse, it has emerged. At least one picture shows an American soldier apparently raping a female prisoner while another is said to show a male translator raping a male detainee. Further photographs are said to depict sexual assaults on prisoners with objects including a truncheon, wire and a phosphorescent tube. Another apparently shows a female prisoner having her clothing forcibly removed to expose her breasts. Detail of the content emerged from Major General Antonio Taguba, the former army officer who conducted an inquiry into the Abu Ghraib jail in Iraq. Allegations of rape and abuse were included in his 2004 report but the fact there were photographs was never revealed. He has now confirmed their existence in an interview with the Daily Telegraph. The graphic nature of some of the images may explain the US President’s attempts to block the release of an estimated 2,000 photographs from prisons in Iraq and Afghanistan despite an earlier promise to allow them to be published. Maj Gen Taguba, who retired in January 2007, said he supported the President’s decision, adding: “These pictures show torture, abuse, rape and every indecency. “I am not sure what purpose their release would serve other than a legal one and the consequence would be to imperil our troops, the only protectors of our foreign policy, when we most need them. “The mere description of these pictures is horrendous enough, take my word for it.”

America's poor are its most generous donors
2009-05-23, Seattle Times/McClatchy News
http://seattletimes.nwsource.com/html/nationworld/2009253657_charity23.html

When Jody Richards saw a homeless man begging outside a downtown McDonald's recently, he bought the man a cheeseburger. There's nothing unusual about that, except that Richards is homeless, too, and the 99-cent cheeseburger was an outsize chunk of the $9.50 he'd earned that day panhandling. The generosity of poor people isn't so much rare as rarely noticed, however. In fact, the nation's poor donate more, in percentage terms, than higher-income groups do, surveys of charitable giving show. What's more, their generosity declines less in hard times than the generosity of richer givers does. "The lowest-income fifth [of the population] always give at more than their capacity," said Virginia Hodgkinson, former vice president for research at Independent Sector, a Washington, D.C.-based association of nonprofit agencies. "The next two-fifths give at capacity, and those above that are capable of giving two or three times more than they give." The Bureau of Labor Statistics' latest survey of consumer expenditure found that the poorest fifth of U.S. households contributed an average of 4.3 percent of their incomes to charitable organizations in 2007. The richest fifth gave at less than half that rate, 2.1 percent. The figures probably undercount remittances by legal and illegal immigrants to family and friends back home, a multibillion-dollar outlay to which the poor contribute disproportionally. None of the middle fifths of U.S. households, in contrast, gave away as much as 3 percent of their incomes. What makes poor people's generosity even more impressive is that their giving generally isn't tax deductible, because they don't earn enough to itemize their charitable tax deductions.

Hospitalization Rates Higher in Kids Who Get Flu Shots
2009-05-19, Forbes magazine
http://www.forbes.com/feeds/hscout/2009/05/19/hscout627168.html

Children who get the annual flu vaccine, especially those who have asthma, may be more likely to be hospitalized than children who don't get the shot, a new study shows. But the researcher noted ... "This may not be a reflection of the vaccine but that these patients are the sickest, and their doctors insist they get a vaccination," said study author Dr. Avni Y. Joshi, a fellow at the Mayo Clinic in Rochester, Minn. "I would be very cautious about interpreting this," said Dr. Gurjit Khurana Hershey, director of asthma research and professor of pediatrics at Cincinnati Children's Hospital. "The bottom line is that kids with asthma who get the flu vaccine are probably a different population anyway. They may be the more severely ill children, so it may have very little to do with the vaccine." The study has too many unknowns and covers too wide an age range over too many flu seasons to indicate any change in recommendations, said Dr. Hank Bernstein, a member of the committee on infectious diseases of the American Academy of Pediatrics. The authors looked back at 263 children aged 6 months to 18 years who had visited the Mayo Clinic between 1999 and 2006 with laboratory-confirmed influenza. Children -- including children who had asthma -- who received the annual inactivated flu vaccine were almost three times more likely to be hospitalized than those who were not inoculated.

Note: With hospitalization rates nearly three times that of children who did not get vaccinated, why are these doctors downplaying this study so much? Why the focus on asthma, when the study covered a wide range of children? Why isn't anyone calling fo rmore research on these striking results? For lots of articles raising serious questions about the safety of vaccines, click here.

Are UFOs real? Famous people who believed
2009-04-22, The Telegraph (One of the U.K.'s leading newspapers)
http://www.telegraph.co.uk/scienceandtechnology/5201410/Are-UFOs-real-Famous-...

The former NASA astronaut Edgar Mitchell has claimed that aliens exist and their visits are being covered up by the United States government. Mitchell is in good company in his beliefs. Here we highlight 12 other public figures who believe that extraterrestrials may have been visiting our planet over the last 100 years. Jimmy Carter, US President from 1976 to 1980, promised while on the campaign trail that he would make public all documents on UFOs if elected. He said: "I don't laugh at people any more when they say they've seen UFOs. I've seen one myself." General Douglas MacArthur, the Korean and Second World War soldier, said in 1955 that "the next war will be an interplanetary war. The nations of the earth must someday make a common front against attack by people from other planets. The politics of the future will be cosmic, or interplanetary". J Edgar Hoover, head of the FBI from its inception in 1935 to 1972, said of a famous incident when flying saucers were allegedly fired at over Los Angeles in 1942: "We must insist upon full access to disks recovered. For instance, in the LA case the Army grabbed it and would not let us have it for cursory examination." Monsignor Corrado Balducci, a Vatican theologian, said: "Extraterrestrial contact is a real phenomenon. The Vatican is receiving much information about extraterrestrials and their contacts with humans from its embassies in various countries, such as Mexico, Chile and Venezuela." Professor Stephen Hawking: "Of course it is possible that UFO's really do contain aliens as many people believe, and the Government is hushing it up."

Note: For a concise summary of evidence for UFOs and extra-terrestrial visitors presented by many highly-respected and credible former government and military officials, click here.

2,757.1 MPG Achieved at 2009 Shell Eco-marathon Americas
2009-04-19, CNBC News
http://classic.cnbc.com/id/30287740

Distance, not speed, was the goal this weekend on the track at the 2009 Shell Eco-marathon Americas(R), a challenge for students to design, build and test fuel-efficient vehicles that travel the farthest distance using the least amount of fuel. This year, more than 500 students from North and South America were on hand to stretch the boundaries of fuel efficiency. So who came out on top? The student team from Laval University, with an astonishing 2,757.1 miles per gallon, equivalent to 1,172.2 kilometres per liter, won the grand prize in the "Prototype" category. And in the "UrbanConcept" category - new to the Americas event this year - the team from Mater Dei High School took the grand prize by achieving 433.3 mpg, equivalent to 184.2 km/l. With 44 participating teams at track competition was steep. This year's challenge brought together a number of returning teams determined to beat the 2,843 mpg (1,208 km/l) record set by Mater Dei High School (Evansville, Ind.) in 2008, combined with a number of new teams adding fresh innovation and vehicle designs to the competition. "The Shell Eco-marathon is a platform for students to let their imaginations run wild," said Mark Singer, global project manager for the Shell Eco-marathon. "By encouraging these students to build vehicles with greater energy efficiency, we hope this will help inspire others; and together we can find solutions that will help meet the global energy challenge."

Note: Why so little media attention to this most exciting race for top gas mileage? And if high school students can build a car that gets over 2,500 mpg, what's up with Detroit? Could big business be suppressing, or at the very least ignoring these inspiring inventions?

Interrogation Memos Detail Harsh Tactics by the C.I.A.
2009-04-17, New York Times
http://www.nytimes.com/2009/04/17/us/politics/17detain.html?partner=rss&emc=r...

The Justice Department ... made public detailed memos describing brutal interrogation techniques used by the Central Intelligence Agency, as President Obama sought to reassure the agency that the C.I.A. operatives involved would not be prosecuted. In dozens of pages of dispassionate legal prose, the methods approved by the Bush administration for extracting information from senior operatives of Al Qaeda are spelled out in careful detail — like keeping detainees awake for up to 11 straight days, placing them in a dark, cramped box or putting insects into the box to exploit their fears. The interrogation methods were authorized beginning in 2002, and some were used as late as 2005 in the C.I.A.’s secret overseas prisons. The United States prosecuted some Japanese interrogators at war crimes trials after World War II for waterboarding and other methods detailed in the memos. Together, the four memos give an extraordinarily detailed account of the C.I.A.’s methods and the Justice Department’s long struggle, in the face of graphic descriptions of brutal tactics, to square them with international and domestic law. Passages describing forced nudity, the slamming of detainees into walls, prolonged sleep deprivation and the dousing of detainees with water as cold as 41 degrees alternate with elaborate legal arguments concerning the international Convention Against Torture. The revelations may give new momentum to proposals for a full-blown investigation into Bush administration counterterrorism programs and possible torture prosecutions.

Note: For many revealing reports from major media sources on increasing threats to civil liberties, click here.

Fed Shrouding $2 Trillion in Bank Loans in ‘Secrecy,’ Suit Says
2009-04-16, Bloomberg News
http://www.bloomberg.com/apps/news?pid=20601087&sid=aS89AaGjOplw

U.S. taxpayers need to know the risks behind the Federal Reserve’s $2 trillion in lending to financial institutions because the public is now an “involuntary investor” in the nation’s banks, according to a court filing by Bloomberg LP. The Fed refuses to name the borrowers, the amounts of loans or assets banks put up as collateral under 11 programs, arguing that doing so might set off a run by depositors and unsettle shareholders. The largest U.S. banks have tapped more than $125 billion in government aid under the Troubled Asset Relief Program in the past seven months. Assets, including loans and securities, on the Fed balance sheet totaled $2.09 trillion as of April 9. Banks oppose any release of information because that might signal weakness and spur short-selling or a run by depositors, the Fed argued in its March 4 response. The release of the information “can fuel market speculation and rumors,” including a drop in stock price and a run on the bank, the Fed said. Bloomberg replied yesterday that “these speculative injuries relate only to the reactions of customers, shareholders and other members of the public, not to competitors’ use of the borrowers’ proprietary information to their advantage,” the exception to disclosure under the FOIA law. Government loans, spending or guarantees to rescue the U.S. financial system total more than $12.8 trillion since the international credit crisis began in August 2007, according to data compiled by Bloomberg as of March 31. The total includes about $2 trillion on the Fed’s balance sheet.

Note: For an extensive archive of key reports on the hidden realities of the Wall Street bailout, click here.

Investments Can Yield More on K Street, Study Indicates
2009-04-12, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2009/04/11/AR20090411020...

In a remarkable illustration of the power of lobbying in Washington, a study released last week found that a single tax break in 2004 earned companies $220 for every dollar they spent on the issue -- a 22,000 percent rate of return on their investment. The study by researchers at the University of Kansas underscores the central reason that lobbying has become a $3 billion-a-year industry in Washington: It pays. The paper by three Kansas professors examined the impact of a one-time tax break approved by Congress in 2004 that allowed multinational corporations to "repatriate" profits earned overseas, effectively reducing their tax rate on the money from 35 percent to 5.25 percent. More than 800 companies took advantage of the legislation, saving an estimated $100 billion in the process, according to the study. The largest recipients of tax breaks were concentrated in the pharmaceutical and technology fields, including Pfizer, Merck, Hewlett Packard, Johnson & Johnson and IBM. Pfizer alone repatriated $37 billion, representing 70 percent of its revenue in 2004, the study found. The now-beleaguered financial industry also benefited from the provision, including Citigroup, J.P. Morgan Chase, Morgan Stanley and Merrill Lynch, all of which have since received tens of billions of dollars in federal bailout money. The researchers calculated an average rate of return of 22,000 percent for those companies that helped lobby for the tax break.

Note: For lots more on corporate corruption from reliable sources, click here.

‘No-Risk’ Insurance at F.D.I.C.
2009-04-07, New York Times
http://www.nytimes.com/2009/04/07/business/07sorkin.html?partner=rss&emc=rss&...

The Federal Deposit Insurance Corporation was set up 76 years ago with the important but simple job of insuring bank deposits. Now, because of what could politely be called mission creep, it’s elbowing its way into the middle of the financial mess as an enabler of enormous leverage. In the fine print of Treasury Secretary Timothy F. Geithner’s plan to lend as much as $1 trillion to private investors to help them buy toxic assets from our nation’s banks, you’ll find some details of how the F.D.I.C is trying to stabilize the system by adding more risk, not less, to the system. It’s going to be insuring 85 percent of the debt, provided by the Treasury, that private investors will use to subsidize their acquisitions of toxic assets. These loans, while controversial, were given a warm welcome by the market when they were first announced. And why not? The terms are hard to beat. They are, for example, “nonrecourse,” which means that if an investor loses money, he owes taxpayers nothing. It’s the closest thing to risk-free investing — with leverage! — around. But, as we’ve learned the hard way these last couple of years, risk-free investing is an oxymoron. So where did the risk go this time? To the F.D.I.C., and ultimately, to us taxpayers. A close reading of the F.D.I.C.’s statute suggests the agency is using a unique — some might call it plain wrong — reading of its own rule book to accomplish this high-wire act. Somehow, in the name of solving the financial crisis, the F.D.I.C. has seemingly been given a blank check, with virtually no oversight by Congress.

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

Detainee's Harsh Treatment Foiled No Plots
2009-03-29, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/28/AR20090328020...

When CIA officials subjected their first high-value captive, Abu Zubaida, to waterboarding and other harsh interrogation methods, they ... succeeded in breaking him, and the stories he told of al-Qaeda terrorism plots sent CIA officers around the globe chasing leads. In the end, though, not a single significant plot was foiled as a result of Abu Zubaida's tortured confessions, according to former senior government officials who closely followed the interrogations. Nearly all of the leads attained through the harsh measures quickly evaporated, while most of the useful information from Abu Zubaida -- chiefly names of al-Qaeda members and associates -- was obtained before waterboarding was introduced, they said. Moreover, within weeks of his capture, U.S. officials had gained evidence that made clear they had [falsely accused] Abu Zubaida. Abu Zubaida was not even an official member of al-Qaeda, according to a portrait of the man that emerges from court documents and interviews with current and former intelligence, law enforcement and military sources. Rather, he was a "fixer" for radical Muslim ideologues, and he ended up working directly with al-Qaeda only after Sept. 11 -- and that was because the United States stood ready to invade Afghanistan. Since 2006, Senate intelligence committee members have pressed the CIA, in classified briefings, to provide examples of specific leads that were obtained from Abu Zubaida through the use of waterboarding and other methods, according to officials familiar with the requests. The agency provided none, the officials said.

Note: Was the torture of Abu Zubaida an error, or was it for some other purpose than extracting information from him? For many reports which raise similar questions about the so-called "Global War on Terror", click here.

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