Business News

We Are Doomed: Banks Lobbying For More Deregulation Of Derivatives

3:45 pm EST July 15th, 2011 | Business, Economy | 23 Comments

I would say this is like bashing your head against a wall repeatedly, but that’s downplaying it. I shouldn’t believe this, but there it is.

Federal regulators are considering backing off a plan to curb Wall Street’s control over the derivatives market, another potential win for the big banks.

Last fall, the Commodity Futures Trading Commission proposed rules that would prevent a bank or financial firm from controlling more than 20 percent of any one derivatives exchange or trading facility. Now, regulators are discussing lowering the cap, according to people with knowledge of the matter.

STOP THIS. YOU’RE GOING TO DESTROY THE PLANET.

Seriously, deregulated derivative markets have helped to cause one of the largest economic recessions in U.S. history. Sure, Wall Street had a few bumps on the road but they got right back on their feet (with some help from the U.S. taxypayer). That isn’t the case for the average middle and lower class American.

These people were given the keys to the bank, they robbed it, and you’re giving them a second chance.

Do we have a Democratic Republic anymore or a permanent Robber Baron enrichment scheme? Sweet Jesus.

Executive Pay Up 23%, They Can Afford A Tax Increase

11:41 am EST July 3rd, 2011 | Business, Economy | 107 Comments

The executives are making money by the bucketload, as the average American’s wages stay the same. Even in downturns, these people are raking it in, but the right says we should engage in “austerity” while the leisure class lives it up. Talk about unsustainable.

The final figures show that the median pay for top executives at 200 big companies last year was $10.8 million. That works out to a 23 percent gain from 2009. The earlier study had put the median pay at a none-too-shabby $9.6 million, up 12 percent.

Total C.E.O. pay hasn’t quite returned to its heady, prerecession levels — but it certainly seems headed there. Despite the soft economy, weak home prices and persistently high unemployment, some top executives are already making more than they were before the economy soured.

They can afford a tax increase. They can live with one less Cessna, one less expensive painting, one less diamond earring, one less big-screen LCD tv, one less Ferrari. They can afford it.

Our democracy can’t afford giving them even more breaks. Not anymore.

Topic: Taxes

GOP Could Cause The SECOND Republican Recession

12:21 pm EST June 28th, 2011 | Business, Economy, Republicans | 8 Comments

They nearly killed the economy once, their refusal to raise the debt ceiling without more tax breaks for Paris Hilton and Bill Gates could yank the breathing tube again. Talk about a death panel.

If Congress fails to raise the national debt limit by early August, the Obama Treasury Department will have to choose between defaulting on obligations to the country’s creditors — triggering higher interest rates and perhaps damaging the country’s credit rating for months and years to come — or freezing outlays to contractors, entitlement beneficiaries and others who are also expecting prompt payment as well. In either case, the macroeconomic impact will be staggering, according to Zandi.

“I think we go into recession and my forecast would be blown out of the water,” he said. “I think if we get to August 2nd and there is no debt ceiling [increase] and there has to be significant spending cuts, I think even if Congress and the administration reverse themselves days later, I think the damage will have been serious and we’ll probably be thrown into a recession.”

I would advise President Obama to appeal to their sense of patriotism, but who are we trying to kid here?

Study: Small Business Benefit From Health Care Reform

2:10 pm EST June 22nd, 2011 | Business | Comments Off

The Urban Institute looked at the health care reform law and found benefits for small business:

Ultimately, we find little evidence that the ACA will negatively affect small firms, and, instead, we find evidence of significant benefits for these employers and their workers. The law expands coverage options for small firms while limiting the new requirements imposed on this group. The smallest firms will see a significant increase in offer rates under the ACA, and firms of all sizes will see substantial savings on premium contributions. While the effects of the ACA on employer sponsored coverage for small-firm workers and their dependents are estimated to be small, these workers and their families are expected to reap significant benefits from the law as a whole. When accounting for the effects of the Medicaid expansion, individual health insurance exchanges and federal subsidies for low- and moderate-income families, small-firm workers and their families are expected to experience large increases in insurance coverage under reform.

Topic: Health Care

Obama’s Austerity Attraction

10:19 am EST June 9th, 2011 | Business, Economy | 9 Comments

It’s not Keynesian.

“What I find annoying is the politicians taking John-Maynard Keynes’ name in vain,” Pedro de Noronha, the managing partner at Noster Capital told CNBC in an interview on Thursday.

“I am tired of politicians like President Obama and Treasury Secretary Geithner quoting Keynes to justify their spending plans when politicians consistently refuse to listen to Keynes’ complete message,” he said.

The point has been made before many times. Don’t cut spending in a recession; austerity into a downturn makes things much worse.

In the UK a number of economists are calling on Chancellor George Osborne to consider a plan B to austerity, but for de Noronha this view is self-serving for the politicians who refuse to spend less.

“What Keynes said on not cutting spending in a recession has been widely quoted, correctly,” he said.

“What those quoting him forget though is that Keynes said governments should run a budget surplus in the good times,” said de Noronha.

A lot of conservatives have tried mighty hard to say that the too-slow recovery means Keynesian economics doesn’t work. The problem is we haven’t tried it, yet.

Senate Defeats Jon Tester’s Attempt To Kiss Up To Big Banks With Swipe Fees

3:13 pm EST June 8th, 2011 | Business, Democrats, Economy | 6 Comments

Jon Tester When a Dem being a toady for big banks loses a legislative battle, it’s just as good as a GOP bill going down in flames.

In a highly anticipated vote, the Senate rejected by 54 to 45 an amendment from Sens. Jon Tester, D-Mont., and Bob Corker, R-Tenn., on Wednesday that would have delayed a swipe fee regulation from Sen. Dick Durbin, D-Ill.

The move decides the fate of a $14 billion a year industry and ends another chapter in the intense lobbying war between retailers and bankers in which millions of dollars have been spent on print, television and radio ads within the Capital Beltway and beyond targeting key member states.

Durbin caught the banking industry by surprise last year when he convinced 64 senators to support adding his measure to the Dodd-Frank financial reform law. It requires the Federal Reserve Board by July 21 to ensure fees banks charge merchants for debit card purchases are “reasonable and proportional.”

The Fed has proposed slashing the charge per transaction to 12 cents from an average of 44 cents but has not issued a final rule.

Tester is such a disappointment. He’s marginally better than Conrad Burns, the Republican he replaced, but he’s turned out definitely not to be the populist-leaning senator he originally ran as.

Bob Corker was his co-sponsor, but I can’t blame Corker for doing the dirty work of big banks… that’s what Republicans go to Washington to do.

Topic: Jon Tester

He Said, She Said, Washington Post On Exxon Edition

11:57 pm EST May 11th, 2011 | Business, Media | 1 Comment

This story by the Washington Post‘s Steven Mufson is embarassing in the way in bends backwards to present a he said/she said portrayal of what exactly the tax paid by ExxonMobil is. Mufson explains “Exxon Mobil says it pays plenty” but “Not so, say critics of the oil industry.” What’s the answer?

Personally, I’m inclined to agree with CAP (Center for American Progress) on the way they determine Exxon’s taxes — but it would have been nice if the newspaper even tried to get to the truth. Instead they took the lazy way out and presented two arbitrary sides to an issue.

The mainstream media is often very, very afraid to render a verdict because someone will be upset with them, so they prefer to serve up bowls of mush instead. This does not serve the readers well.

Topic: ExxonMobil, Washington Post

Meredith Attwell Baker & Corruption At The FCC

3:32 pm EST May 11th, 2011 | Business | 3 Comments

This should be illegal.

Republican Federal Communications Commission commissioner Meredith Attwell Baker is planning to leave the agency for a job at Comcast Corp., according to people with knowledge of the matter.

…

Baker’s move to Comcast comes just four months after she voted, along with three of the agency’s other FCC commissioners, to approve Comcast’s $13.75 billion deal to acquire control of NBC Universal from General Electric Co.

This happens to be a Republican, but the revolving door opens for Democrats too. It’s corruption all around. As a friend notes, this is so wrong, if you scripted it in a movie it would be consider unrealistic.

Operation Defend ExxonMobil Is Underway

11:12 am EST May 11th, 2011 | Business | 7 Comments

ExxonMobil is the most profitable company in the country. They got there on the backs of consumers, often (along with other oil companies) screwing us over on the price for oil – something we need to have modern society run. While they’re doing that they also are a major backer of climate change denial faux-science.

Some Democrats have made noise about ending taxpayer subsidies of this megacorporation, and like clockwork conservatives are once again shilling for coporate welfare.

First there’s Bruce McQuain of Questions & Observations (after being invited on a conference call with the bosses at ExxonMobil), whining that stopping government support of this business is an “attack” on “job creators”.

Then on Fox, Ben Ferguson moans that ExxonMobil is being unfairly targeted.

Of course, I doubt with a GOP House that these breaks will be rescinded (and it wasn’t even very likely when the House was in Democratic control), but its pretty illustrative of just how big a lie the supposed grassroots populism of the Tea Party element is. Modern conservatism is and always has been about big business getting their piece of corporate welfare.

Topic: ExxonMobil

Doing The Work Big Business Won’t

9:10 pm EST January 22nd, 2011 | Business | 32 Comments

The article doesn’t come out and say it, but one reason the government is having to get into the drug business is because big business doesn’t see enough activity on its bottom line for some of these things.

The Obama administration has become so concerned about the slowing pace of new drugs coming out of the pharmaceutical industry that officials have decided to start a billion-dollar government drug development center to help create medicines.

The new effort comes as many large drug makers, unable to find enough new drugs, are paring back research. Promising discoveries in illnesses like depression and Parkinson’s that once would have led to clinical trials are instead going unexplored because companies have neither the will nor the resources to undertake the effort.

Topic: Health Care