06 5 / 2014

Report: gap between rich and poor is undermining economic growth

The economic dangers of widening inequality are highlighted in a new report presented at the OECD Forum in Paris.

It said the gap between rich and poor is at its highest in decades in many countries, and efforts to tackle that will only succeed if they look beyond income and focus on better access to high-quality education,…

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12 1 / 2014

These days you can’t be too careful. Although everyone knows that emails from Nigeria are most likely scams, you may not consider some of the rip offs a bit closer to home. Here are the 25 biggest rip off that you’ve probably been tricked into buying.
[you…

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15 10 / 2013

15 10 / 2013

[youtube=http://www.youtube.com/watch?v=4LTDcXCZ4uY&w=420&h=315]

U.S. Senator Chris Coons speaks on the Senate floor about the dangers of the United States defaulting on its debts, and looks at each of the options moving forward. October 14, 2013. http://…

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14 10 / 2013

U.S. 2013 Government Shutdown: The GOP’s little rule change they hoped you wouldn’t notice[youtube=http://www.youtube.com/watch?v=0Jd-iaYLO1A&w=420&h=315]

 

Bless Chris Van Hollen for…View Post

U.S. 2013 Government Shutdown: The GOP’s little rule change they hoped you wouldn’t notice

[youtube=http://www.youtube.com/watch?v=0Jd-iaYLO1A&w=420&h=315]

 

Bless Chris Van Hollen for…

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07 10 / 2013

A U.S. Default on Debt Seen as Catastrophe, to Have Worldwide AffectsA U.S. default on it’s debt would be devastating to not only the U.S. but also it’s affects would…View Post

A U.S. Default on Debt Seen as Catastrophe, to Have Worldwide Affects

A U.S. default on it’s debt would be devastating to not only the U.S. but also it’s affects would…

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24 9 / 2013

I’m not yet a Vegetarian, but this video is important to see, it shows the horrible treatment that animals endure. It will shock, and break your heart.

[youtube=http://www.youtube.com/watch?v=R1Bc38i2ep0&w=560&h=315]
Watch the video that will change your…

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24 7 / 2013

Watch Full Speech: President Obama’s Ohio Speech on the Economy[youtube=http://www.youtube.com/watch?v=wfmU6_1nu44&w=560&h=315]
Read Transcript here.
President…View Post

Watch Full Speech: President Obama’s Ohio Speech on the Economy

[youtube=http://www.youtube.com/watch?v=wfmU6_1nu44&w=560&h=315]

Read Transcript here.

President…

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07 7 / 2013

[youtube=http://www.youtube.com/watch?v=t_mA9L1DSr8&w=560&h=315]

Everyone loves a bargain, but what’s the real cost of cheap clothes from Bangladesh’s sweat shops? Severed limbs, cruel labour conditions and 1000 dead. How could so many of the West’s top…

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07 5 / 2013

[youtube=http://www.youtube.com/watch?v=fdfLNIHyPxQ&w=560&h=315]

For the first time in the financial crisis, bank accounts are being raided and people’s savings are being seized. We look at the fallout of the EU’s cruel gamble, exposing the human cost…

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01 3 / 2013

Wealth Inequality in America

Infographics on the distribution of wealth in America, highlighting both the inequality and the difference between our perception of inequality and the actual numbers. The reality is often not what we think it is.

31 12 / 2012

A bad day at the stock market 12/31/2012 #fiscalcliff #politics #finance #banks #news #economy #money #stocks

A bad day at the stock market 12/31/2012 #fiscalcliff #politics #finance #banks #news #economy #money #stocks

10 3 / 2012

The Republicans newly proposed jobs plan is based around tax breaks (including to hedge fund managers. More via Think Progress: “What’s really holding back small businesses is a lack of demand in the economy, and there’s no reason for businesses to hire, no matter how many tax breaks they receive, unless they have an expectation of more customers. As the chief economist for the conservative National Federation of Independent Business explained, “if you give a small business guy $20,000 he’ll say, ‘I could buy a new delivery truck but I have nobody to deliver to”…”.* Cenk Uygur and Michael Shure discuss on The Young Turks.

Watch Michael on TwenTYTwelve: http://www.youtube.com/tytshows

http://thinkprogress.org/economy/2012/03/08/440767/gop-hedge-fund-tax-break/Subscribe to The Young Turks: http://bit.ly/eWuu5i

Find out how to watch The Young Turks on Current by clicking here:http://www.current.com/gettyt The Largest Online New Show in the World.

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02 12 / 2011

December 02, 2011

Jobless figures lowest since March 2009 – but Republicans say rate is still too high and Obama’s policies are not working.

The Guardian: Unemployment in the US fell to 8.6% in November, its lowest level since March 2009, as private employers continued to add jobs at a healthy pace.

The government’s closely watched non-farm payroll figures rose by 120,000 last month. Growth was driven by private companies, which added 140,000 jobs. Cuts in the public sector led to the loss of 20,000 jobs, the US Department of Labor reported on Friday.

The unemployment rate fell to 8.6% in November from 9.0% the previous month. The rate is the lowest since March 2009, when it was also 8.6%.

The drop in unemployment figures is a welcome boost for Barack Obama going into an election year. Recent political history shows that no president has managed to win re-election with unemployment as high as 9%, where it had been stuck.

Source

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12 11 / 2011

November 12, 2011

To be clear, no single issue was the cause. Our economy is a complex and intricate system. What caused the crisis? Look:

●Fed Chair Alan Greenspan dropped rates to 1 percent — levels not seen for half a century — and kept them there for an unprecedentedly long period. This caused a spiral in anything priced in dollars (i.e., oil, gold) or credit (i.e., housing) or liquidity driven (i.e., stocks).

●Low rates meant asset managers could no longer get decent yields from municipal bonds or Treasurys. Instead, they turned to high-yield mortgage-backed securities. Nearly all of them failed to do adequate due diligence before buying them, did not understand these instruments or the risk involved. They violated one of the most important rules of investing: Know what you own.

●Fund managers made this error because they relied on the credit ratings agencies — Moody’s, S&P and Fitch. They had placed an AAA rating on these junk securities, claiming they were as safe as U.S. Treasurys.

4 Derivatives had become a uniquely unregulated financial instrument. They are exempt from all oversight, counter-party disclosure, exchange listing requirements, state insurance supervision and, most important, reserve requirements. This allowed AIG to write $3 trillion in derivatives while reserving precisely zero dollars against future claims.

5 The Securities and Exchange Commission changed the leverage rules for just five Wall Street banks in 2004. The “Bear Stearns exemption” replaced the 1977 net capitalization rule’s 12-to-1 leverage limit. In its place, it allowed unlimited leverage for Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers and Bear Stearns. These banks ramped leverage to 20-, 30-, even 40-to-1. Extreme leverage leaves very little room for error.

6Wall Street’s compensation system was skewed toward short-term performance. It gives traders lots of upside and none of the downside. This creates incentives to take excessive risks.

7 The demand for higher-yielding paper led Wall Street to begin bundling mortgages. The highest yielding were subprime mortgages. This market was dominated by non-bank originators exempt from most regulations. The Fed could have supervised them, but Greenspan did not.

8 These mortgage originators’ lend-to-sell-to-securitizers model had them holding mortgages for a very short period. This allowed them to get creative with underwriting standards, abdicating traditional lending metrics such as income, credit rating, debt-service history and loan-to-value.

9 “Innovative” mortgage products were developed to reach more subprime borrowers. These include 2/28 adjustable-rate mortgages, interest-only loans, piggy-bank mortgages (simultaneous underlying mortgage and home-equity lines) and the notorious negative amortization loans (borrower’s indebtedness goes up each month). These mortgages defaulted in vastly disproportionate numbers to traditional 30-year fixed mortgages.

●To keep up with these newfangled originators, traditional banks developed automated underwriting systems. The software was gamed by employees paid on loan volume, not quality.

●Glass-Steagall legislation, which kept Wall Street and Main Street banks walled off from each other, was repealed in 1998. This allowed FDIC-insured banks, whose deposits were guaranteed by the government, to engage in highly risky business. It also allowed the banks to bulk up, becoming bigger, more complex and unwieldy.

●Many states had anti-predatory lending laws on their books (along with lower defaults and foreclosure rates). In 2004, the Office of the Comptroller of the Currency federally preempted state laws regulating mortgage credit and national banks. Following this change, national lenders sold increasingly risky loan products in those states. Shortly after, their default and foreclosure rates skyrocketed.

Bloomberg was partially correct: Congress did radically deregulate the financial sector, doing away with many of the protections that had worked for decades. Congress allowed Wall Street to self-regulate, and the Fed the turned a blind eye to bank abuses.

The previous Big Lie — the discredited belief that free markets require no adult supervision — is the reason people have created a new false narrative.

Now it’s time for the Big Truth.

Source

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