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Government Corruption News Articles
Excerpts of key news articles on


Below are key excerpts of revealing news articles on government corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.


Note: Explore our full index to revealing excerpts of key major media news articles on dozens of engaging topics. And read excerpts from 20 of the most revealing news articles ever published.


Judge Orders Cheney To Preserve Records
2008-09-20, CBS News/Associated Press
http://www.cbsnews.com/stories/2008/09/20/national/main4462898.shtml

A federal judge [has] ordered Dick Cheney to preserve a wide range of the records from his time as vice president. The decision by U.S. District Judge Colleen Kollar-Kotelly is a setback for the Bush administration in its effort to promote a narrow definition of materials that must be safeguarded under the Presidential Records Act. The Bush administration's legal position "heightens the court's concern" that some records may not be preserved, said the judge. A private group, Citizens for Responsibility and Ethics in Washington, is suing Cheney and the Executive Office of the President in an effort to ensure that no presidential records are destroyed or handled in a way that makes them unavailable to the public. Cheney and the other defendants in the case "were only willing to agree to a preservation order that tracked their narrowed interpretation" of the Presidential Records Act, wrote Kollar-Kotelly. The administration, said the judge, wanted any court order on what records are at issue in the suit to cover only the office of the vice president, not Cheney or the other defendants in the lawsuit. The other defendants include the National Archives and the archivist of the United States. The lawsuit stems from Cheney's position that his office is not part of the executive branch of government. This summer, Cheney chief of staff David Addington told Congress the vice president belongs to neither the executive nor legislative branch of government, but rather is attached by the Constitution to Congress. In 2003, Cheney asserted that the office of the vice president is not an entity within the executive branch.

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


Britain's worst polluters set for windfall of millions
2008-09-12, The Guardian (One of the U.K.'s leading newspapers)
http://www.guardian.co.uk/environment/2008/sep/12/emissionstrading

A flagship European scheme designed to fight global warming is set to hand hundreds of millions of pounds to some of Britain's most polluting companies, with little or no benefit to the environment. Dozens of multinational firms stand to benefit from the windfall, which comes from the over-allocation of carbon permits under the European emissions trading scheme. The permits are given to companies by the government, and are supposed to account for their carbon pollution over the next five years. But figures published by the European Commission show that many companies have been allocated far too many permits, which they can sell for cash. The scheme is supposed to only distribute as many permits as companies require, with one permit allocated for each tonne of CO2 produced. The figures ... suggest that up to 9m extra annual permits have been allocated to 200 companies across almost all sectors of the British economy, from steel and cement making, to car manufacturing and the food and drink industry. Dozens of household names such as Ford, Thames Water, Astra Zeneca and Vauxhall are among the companies that could benefit. Campaigners say the allocations were ... influenced by industry group lobbying. A source at a major UK car manufacturing firm, which has been allocated more than double the number of permits it needs, told the Guardian they were given out based on "magical logic".

Note: For revealing reports from major media sources on government corruption, click here.


Lockerbie evidence not disclosed
2008-08-28, BBC News
http://news.bbc.co.uk/2/hi/uk_news/scotland/south_of_scotland/7573244.stm

Scottish police had information that might have changed the outcome of the Lockerbie bombing trial, a BBC TV programme has learned. The information could have affected the credibility of key evidence, but was not passed to the defence team. Libyan national Abdelbaset ali Mohmed al-Megrahi is serving life for killing 270 people in the 1988 bombing. A prosecution witness had seen a picture linking al-Megrahi to the bombing before he identified him. Al-Megrahi, 56, who maintains he is the victim of a miscarriage of justice, has been granted leave to appeal against his conviction for a second time. Tony Gauci, who picked al-Megrahi out in a line-up, had looked at a magazine photograph of him just four days before he made the identification. BBC TV programme The Conspiracy Files: Lockerbie has now seen documentary evidence that Scottish police knew this was the case. That information should have been passed to the defence, but the disclosure did not take place. There have always been doubts expressed about who was behind the bombing and what was their motivation. In June last year the Scottish Criminal Cases Review Commission (SCCRC), which has been investigating the case, concluded that al-Megrahi could have suffered a miscarriage of justice and recommended that he should be granted a second appeal.

Note: For a revealing documentary showing a major cover-up involving the Lockerbie bombing, click here.


Bush wants some endangered species rules extinct
2008-08-12, San Francisco Chronicle/Associated Press
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/08/11/national/w141651D...

[The Bush] administration is ... proposing changes that would allow federal agencies to decide for themselves whether subdivisions, dams, highways and other projects have the potential to harm endangered animals and plants. Agencies also could not consider a project's contribution to global warming in their analysis. Environmentalists complained the proposals would gut protections for endangered animals and plants. Interior Secretary Dirk Kempthorne [said] the revisions ... were needed to ensure that the Endangered Species Act would not be used as a "back door" to regulate the gases blamed for global warming. In May, the polar bear became the first species declared as threatened because of climate change. Warming temperatures are expected to melt the sea ice the bear depends on for survival. The rule changes ... would apply to any project a federal agency would fund, build or authorize that the agency itself determines is unlikely to harm endangered wildlife and their habitat. Government wildlife experts currently participate in tens of thousands of such reviews each year. The revisions also would limit which effects can be considered harmful and set a 60-day deadline for wildlife experts to evaluate a project. If no decision is made within 60 days, the project can move ahead. "If adopted, these changes would seriously weaken the safety net of habitat protections that we have relied upon to protect and recover endangered fish, wildlife and plants for the past 35 years," said John Kostyack, executive director of the National Wildlife Federation's Wildlife Conservation and Global Warming initiative.

Note: For many important reports on global warming from major media sources, click here.


'Myth' Behind American Troop Presence
2008-07-08, ABC News
http://abcnews.go.com/Politics/story?id=5331769

Myths die hard, and one of the most corrosive ones today is the mistaken idea that Iraqis want us in Iraq. They do not. Iraqi Prime Minister Nouri Al-Maliki has shocked official Washington by publicly saying he wants to negotiate a withdrawal date for U.S. forces and if not an exact date, a timetable for their withdrawal. Who does he think he is, Barack Obama? Yes, yes, Maliki may be a politician with his finger in the wind as he is trying to fend off his young firebrand Shiite rival, Muqtada al-Sadr, who wants the U.S. out yesterday, but clearly the Iraqi "wind" is blowing Sadr's way. Depending on how the question is asked, it appears that at least 70 percent of Iraqis want Americans to leave either immediately or expeditiously. Here at home, about 60 percent of Americans want U.S. forces to be withdrawn within the next year.

Note: If the Iraqi people and leadership want the U.S. out, why are we still there? For a good answer, click here.


White House Refused to Open Pollutants E-Mail
2008-06-25, New York Times
http://www.nytimes.com/2008/06/25/washington/25epa.html?partner=rssuserland&e...

The White House in December refused to accept the Environmental Protection Agency’s conclusion that greenhouse gases are pollutants that must be controlled, telling agency officials that an e-mail message containing the document would not be opened, senior E.P.A. officials said last week. The document, which ended up in e-mail limbo, without official status, was the E.P.A.’s answer to a 2007 Supreme Court ruling that required it to determine whether greenhouse gases represent a danger to health or the environment. This week, more than six months later, the E.P.A. is set to respond to that order by releasing a watered-down version of the original proposal that offers no conclusion. Instead, the document reviews the legal and economic issues presented by declaring greenhouse gases a pollutant. Over the past five days, the officials said, the White House successfully put pressure on the E.P.A. to eliminate large sections of the original analysis that supported regulation, including a finding that tough regulation of motor vehicle emissions could produce $500 billion to $2 trillion in economic benefits over the next 32 years. The officials spoke on condition of anonymity because they were not authorized to discuss the matter. Both documents, as prepared by the E.P.A., “showed that the Clean Air Act can work for certain sectors of the economy, to reduce greenhouse gases,” one of the senior E.P.A. officials said. “That’s not what the administration wants to show. They want to show that the Clean Air Act can’t work.”

Note: For many important reports on global warming from major media sources, click here.


Gov't says FBI agents can't testify about 9/11
2008-06-19, International Herald Tribune/Associated Press
http://www.iht.com/articles/ap/2008/06/19/america/Sept-11-Lawsuits.php

Government lawyers say the ongoing investigation into the Sept. 11 attacks could be compromised if the airline industry is allowed to seek more information from the FBI to defend itself against lawsuits brought by terrorism victims. The government urged a judge to block aviation companies from interviewing five FBI employees who the companies say will help them prove the government withheld key information before the 2001 attacks. The lawyers said it would be impossible to interview the employees without disclosing classified or privileged material that could "cause serious damage to national security and interfere with pending law enforcement proceedings." The largest investigation in FBI history has resulted in 167,000 interviews and more than 155,000 pieces of evidence and involved the pursuit of 500,000 investigative leads, the lawyers wrote. The airlines and aviation companies are defending themselves against lawsuits seeking billions of dollars in damages for injuries, fatalities, property damage and business losses related to the Sept. 11, 2001 attacks. The companies filed separate lawsuits against the CIA and the FBI last August to force terrorism investigators to tell whether the aviation industry was to blame for the Sept. 11 attacks. Meanwhile, lawyers for the victims of the attacks ... recounted in court papers numerous hijackings and attacks aboard planes before Sept. 11 that they said should have put the airline industry on notice that a disastrous attack could occur.

Note: For a two-page overview of many unanswered questions about what really happened on 9/11, click here.


Taser Suffers a Rare Loss in Court
2008-06-10, New York Times blog
http://thelede.blogs.nytimes.com/2008/06/10/taser-suffers-a-rare-loss-in-court/

Despite a steady stream of negative news coverage, Taser International’s business has sailed above it all, rolling with the punches before coming out on top of a growing industry. Perhaps most importantly, the company has been remarkably successful inside the courtroom. With 69 straight trial victories, according to one count, Taser had assembled a nearly unmatchable record — 3 more wins than this year’s much-vaunted Boston Celtics, with none of the embarrassing losses. None until [Friday, June 4], that is, when an unfavorable verdict represented the first chink in the taser-proof body armor. From The Herald of Monterey County, Calif., the local paper on the case: A federal jury has held Taser International responsible for the death of a Salinas man in U.S. District Court in San Jose ... and awarded his family more than $6 million in punitive and compensatory damages. An attorney for the family called the verdict a "landmark decision," and indicated that it was the first time Taser International had been held responsible for a death or injury linked to its product. During trading on Monday, the company’s stock dropped almost 12 percent. "Investors will assume heightened operating risk in the Taser model in the short-term," one analyst told Barron’s. Bloomberg News reported last month that more than half of Taser’s top 10 shareholders sold some of their shares this year.

Note: Do a search in Google News and you will find that no major media outlets reported that Taser International had 69 straight victories with no losses in the courts till now. Even the above was in a NY Times blog and not in the paper. How interesting that they don't seem to want us to know this.


‘D.C. Madam’ Is Found Dead, Apparently in a Suicide
2008-05-02, New York Times
http://www.nytimes.com/2008/05/02/washington/02madam.html?partner=rssuserland...

A woman convicted two weeks ago of running a Washington call-girl ring that catered to the capital’s power elite was found dead ... and the authorities said she had apparently hanged herself. The body of the woman, Deborah Jeane Palfrey, 52, was found in a shed at her mother’s home ... about 20 miles northwest of Tampa. The police said Ms. Palfrey had left a notebook containing at least two suicide notes and other messages to her family, but they did not give additional details. Ms. Palfrey, who had quickly become known as the D.C. Madam when the case against her began unfolding, apparently hanged herself from the shed’s ceiling with nylon rope, the police said. Her mother, Blanche Palfrey, discovered the body. Blanche Palfrey had no sign that her daughter was suicidal. A federal jury in Washington found Ms. Palfrey guilty on April 15 of running a prostitution service that catered to powerful figures including Senator David Vitter, Republican of Louisiana. She was convicted of money laundering, using the mail for illegal purposes and racketeering. Ms. Palfrey had vowed that she would never go to prison. When she disclosed telephone records last year that revealed the identity of some of her clients, she told ABC: “I’m sure as heck not going to be going to federal prison for one day, let alone four to eight years, because I’m shy about bringing in the deputy secretary of whatever. Not for a second. I’ll bring every last one of them in if necessary.” Despite that threat, Ms. Palfrey’s trial concluded without the testimony of either Mr. Vitter or another particularly prominent client, Randall L. Tobias. One of the escort service’s employees was Brandy Britton, a former professor at the University of Maryland, Baltimore County, who was arrested on prostitution charges in 2006. Ms. Britton committed suicide in January before she could go to trial.

Note: Isn't it interesting that this woman who brought about the resignations of top government officials is found dead in an apparent suicide? See the revealing AP article on this available here. Ms. Palfrey also stated publicly that she would never commit suicide, though at one point she mentioned that she might be "suicided." To verify this, click here.


Cheney lawyer claims Congress has no authority over vice-president
2008-04-28, The Guardian
http://www.guardian.co.uk/world/2008/apr/29/dickcheney.usa

The lawyer for US vice-president Dick Cheney claimed today that the Congress lacks any authority to examine his behaviour on the job. The exception claimed by Cheney's counsel came in response to requests from congressional Democrats that David Addington, the vice-president's chief of staff, testify about his involvement in the approval of interrogation tactics used at Guantanamo Bay. Ruling out voluntary cooperation by Addington, Cheney lawyer Kathryn Wheelbarger said Cheney's conduct is "not within the [congressional] committee's power of inquiry". "Congress lacks the constitutional power to regulate by law what a vice-president communicates in the performance of the vice president's official duties, or what a vice president recommends that a president communicate," Wheelbarger wrote to senior aides on Capitol Hill. The exception claimed by Cheney's office recalls his attempt last year to evade rules for classified documents by deeming the vice-president's office a hybrid branch of government - both executive and legislative. Philippe Sands QC, law professor at University College, London, has agreed to appear in Washington and discuss the revelations in Torture Team, his new book on the consequences of the brutal tactics used at Guantanamo. Two [other] witnesses sought by [Congress], former US attorney general John Ashcroft and former US justice department lawyer John Yoo, claimed that their involvement in civil lawsuits related to harsh interrogations allows them to avoid appearing before Congress. In letters to attorneys representing Ashcroft and Yoo, [Rep. John] Conyers [wrote that] "I am aware of no basis for the remarkable claim that pending civil litigation somehow immunises an individual from testifying before Congress."


Iraqis see red as U.S. opens world's biggest embassy
2008-04-24, Christian Science Monitor
http://www.csmonitor.com/2008/0424/p01s04-wome.html

For the average American who will never see it, the new US Embassy in Baghdad may be little more than the Big Dig of the Tigris. Like the infamous Boston highway project, the embassy is a mammoth development that is overbudget, overdue, and casts a whiff of corruption. For many Iraqis, though, the sand-and-ochre-colored compound peering out across the city from a reedy stretch of riverfront within the fortified Green Zone is an unsettling symbol. "It is a symbol of occupation for the Iraqi people, that is all," says Anouar, a Baghdad graduate student who thought it was risk enough to give her first name. "We see the size of this embassy and we think we will be part of the American plan for our country and our region for many, many years." The 104-acre, 21-building enclave – the largest US Embassy in the world, similar in size to Vatican City in Rome – is often described as a "castle" by Iraqis. "We all know this big yellow castle, but its main purpose, it seems, is the security of the Americans who will live there," says Sarah, a university sophomore who also declined to give her last name for reasons of personal safety. The US government cleared the new Baghdad Embassy for occupancy last week, with the embassy's 700 employees and up to 250 military personnel expected to move in over the month of May, according to Ambassador Ryan Crocker. Embassy personnel have been anxious for the complex, with more than 600 blast-resistant apartments, to open and give them some refuge from the mortar fire that has increasingly targeted the Green Zone this year. Last month, a mortar slammed into one of the unfortified trailers where personnel now sleep, killing an American civilian contractor.

Note: For many reports of the reality of the wars in Iraq and Afghanistan, click here.


EPA Scientists Decry Political Pressure
2008-04-23, CBS News/Associated Press
http://www.cbsnews.com/stories/2008/04/23/tech/main4037465.shtml

Hundreds of Environmental Protection Agency scientists complain they have been victims of political interference and pressure from superiors to skew their findings. The Union of Concerned Scientists said that more than half of the nearly 1,600 EPA staff scientists who responded online to a detailed questionnaire reported they had experienced incidents of political interference in their work. Francesca Grifo, director of the Union of Concerned Scientists' Scientific Integrity Program, said the survey results revealed "an agency in crisis" with low morale, especially among scientists involved in risk assessment and crafting regulations. "The investigation shows researchers are generally continuing to do their work, but their scientific findings are tossed aside when it comes time to write regulations," said Grifo. The group sent an online questionnaire to 5,500 EPA scientists and received 1,586 responses, a majority of them senior scientists who have worked for the agency for 10 years or more. The survey included chemists, toxicologists, engineers, geologists and experts in the life and environmental sciences. The report said that 60 percent of those responding, or 889 scientists, reported personally experiencing what they viewed as political interference in their work over the last five years. Senior managers and the White House Office of Management and Budget frequently second-guess scientific findings and change work conducted by EPA's scientists, the report said. Nearly 400 scientists said they had witnessed EPA officials misrepresenting scientific findings, 284 said they had [witnessed] the "selective or incomplete use of data to justify a specific regulatory outcome" and 224 scientists said they had been directed to "inappropriately exclude or alter technical information" in an EPA document.

Note: For a treasure trove of reports from reliable, verifiable sources on government corruption, click here.


VA stalling on care, judge told at S.F. trial
2008-04-21, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/04/22/MNQK109AA7.DTL

More than 120 veterans of the wars in Afghanistan and Iraq commit suicide every week while the government stalls in granting returning troops the mental health treatment and benefits to which they are entitled, veterans advocates told a federal judge. The rights of hundreds of thousands of veterans are being violated by the Department of Veterans Affairs, "an agency that is in denial," and by a government health care system and appeals process for patients that is "broken down," Gordon Erspamer, lawyer for two advocacy groups, said in an opening statement at the trial of a nationwide lawsuit. He said veterans are committing suicide at the rate of 18 a day - a number acknowledged by a VA official in a Dec. 15 e-mail - and the agency's backlog of disability claims now exceeds 650,000, an increase of 200,000 since the Iraq war started in 2003. U.S. District Judge Samuel Conti ... ruled in January that the case could go to trial. In doing so, he rejected the government's argument that civil courts have no authority over the VA's medical decisions or how it handles grievances. If the advocates can prove their claims, Conti said in his ruling, they would show that "thousands of veterans, if not more, are suffering grievous injuries as the result of their inability to procure desperately needed and obviously deserved health care." He also ruled that veterans are legally entitled to five years of government-provided health care after leaving the service, despite federal officials' argument that they are required to provide only as much care as the VA's budget allows in a given year. The trial follows publication of a Rand study last week that estimated 300,000 U.S. troops returning from Afghanistan and Iraq, or 18.5 percent of the total, suffer from major depression or post-traumatic stress.

Note: For many reports from reliable, verifiable sources detailing the devastating impacts of modern war, click here. For a revealing commentary by a top U.S. general on how soldiers lives are ruined by needless wars, click here.


Bush Aware of Advisers' Interrogation Talks
2008-04-11, ABC News
http://abcnews.go.com/TheLaw/LawPolitics/Story?id=4635175

President Bush says he knew his top national security advisers discussed and approved specific details about how high-value al Qaeda suspects would be interrogated by the Central Intelligence Agency, according to an exclusive interview with ABC News. "Well, we started to connect the dots in order to protect the American people," Bush told ABC News White House correspondent Martha Raddatz. "And yes, I'm aware our national security team met on this issue. And I approved." As first reported by ABC News, the most senior Bush administration officials repeatedly discussed and approved specific details of exactly how high-value al Qaeda suspects would be interrogated by the CIA. The president had earlier confirmed the existence of the interrogation program run by the CIA in a speech in 2006. But before [ABC's original] report, the extraordinary level of involvement by the most senior advisers in repeatedly approving specific interrogation plans -- down to the number of times the CIA could use a certain tactic on a specific al Qaeda prisoner -- had never been disclosed. Critics at home and abroad have harshly criticized the interrogation program, which pushed the limits of international law and, they say, condoned torture. In the interview with ABC News, Bush defended the waterboarding technique used against KSM. "We had legal opinions that enabled us to do it," Bush said. "And no, I didn't have any problem at all trying to find out what Khalid Sheikh Mohammed knew." The president said, "I think it's very important for the American people to understand who Khalid Sheikh Mohammed was. He was the person who ordered the suicide attack -- I mean, the 9/11 attacks."

Note: For a transcript of the interview with President Bush on the Washington Post website, click here. For a powerful two-page summary of many unanswered questions about who really ordered the 9/11 attacks, click here.


Cheney, Rice Approved Use of Waterboarding, Other Tactics
2008-04-11, FOX News/Associated Press
http://www.foxnews.com/story/0,2933,349948,00.html

Bush administration officials from Vice President Dick Cheney on down signed off on using harsh interrogation techniques against [captives] after asking the Justice Department to endorse their legality, The Associated Press has learned. The officials also took care to insulate President Bush from a series of meetings where CIA interrogation methods, including waterboarding, ... were discussed and ultimately approved. A former senior U.S. intelligence official familiar with the meetings ... spoke on condition of anonymity because he was not authorized to publicly discuss the issue. Between 2002 and 2003, the Justice Department issued several memos from its Office of Legal Counsel that justified using the interrogation tactics, including ones that critics call torture. "If you looked at the timing of the meetings and the memos you'd see a correlation," the former intelligence official said. The meetings were held in the White House Situation Room in the years immediately following the Sept. 11 attacks. Attending the sessions were Cheney, then-Bush aides Attorney General John Ashcroft, Secretary of State Colin Powell, CIA Director George Tenet and National Security Advisor Condoleezza Rice. The American Civil Liberties Union called on Congress to investigate. "With each new revelation, it is beginning to look like the torture operation was managed and directed out of the White House," ACLU legislative director Caroline Fredrickson said. "This is what we suspected all along." The former intelligence official described Cheney and the top national security officials as deeply immersed in developing the CIA's interrogation program during months of discussions over which methods should be used and when."


Special license plates shield officials from traffic tickets
2008-04-04, Orange County Register
http://www.ocregister.com/articles/dmv-189719-police-confidential.html

It's 1:45 p.m. on a Wednesday in February and a Toyota Camry is driving west on the 91 Express Lanes, for free, for the 470th time. The electronic transponder on the dashboard - used to bill tollway users - is inactive. The Camry's owners, airport traffic officer Rudolph Duplessis and his wife, Loretta, have never had a toll road account, officials say. They've never received a violation notice in the mail, either. Their car is registered as part of a state program which hides their home address on Department of Motor Vehicles records. The agency that operates the tollway does not have legal access to their address. Their Toyota is one of 996,716 vehicles registered to motorists who are affiliated with 1,800 state and local agencies and who are allowed to shield their addresses under the Confidential Records Program. An Orange County Register investigation has found that the program, designed 30 years ago to protect police from criminals, has been expanded to cover hundreds of thousands of public employees - from police dispatchers to museum guards - who face little threat from the public. Their spouses and children can get the plates, too. This has happened despite warnings from state officials that the safeguard is no longer needed because updated laws have made all DMV information confidential to the public.

Note: Though the Orange County Register is not at the par of our normal media sources, it is a respected publication and this important news needs to be told.


Rescue Me: A Fed Bailout Crosses a Line
2008-03-16, New York Times
http://www.nytimes.com/2008/03/16/business/16gret.html?ex=1363320000&en=04d1c...

What are the consequences of a world in which regulators rescue even the financial institutions whose recklessness and greed helped create the titanic credit mess we are in? Will the consequences be an even weaker currency, rampant inflation, a continuation of the slow bleed that we have witnessed at banks and brokerage firms for the past year? Or all of the above? Stick around, because we’ll soon find out. And it’s not going to be pretty. Agreeing to guarantee a 28-day credit line to Bear Stearns, by way of JPMorgan Chase, the Federal Reserve Bank of New York conceded last Friday that no sizable firm with a book of mortgage securities or loans out to mortgage issuers could be allowed to fail right now. It was the most explicit sign yet of the Fed’s “Rescues ‘R’ Us” doctrine that already helped to force the marriage of Bank of America and Countrywide. But why save Bear Stearns? “Why not set an example of Bear Stearns, the guys who have this record of dog-eat-dog, we’re brass knuckles, we’re tough?” asked William A. Fleckenstein, president of Fleckenstein Capital in Issaquah, Wash., and co-author with Fred Sheehan of Greenspan’s Bubbles: The Age of Ignorance at the Federal Reserve. After years of never allowing any of our financial institutions to fail, they have become so enormous that nobody will be allowed to sink beneath the waves. Otherwise, a tsunami would swamp the hedge funds, banks and other brokerage firms that remain afloat. If Bear Stearns failed, for example, it would result in a wholesale dumping of mortgage securities and other assets onto a market that is frozen and where buyers are in hiding. This fire sale would force surviving institutions carrying the same types of securities on their books to mark down their positions, generating more margin calls and creating more failures.

Note: This excellent article should be read in its entirety by anyone who wants to understand the impending financial meltdown and the government's response to it.


Lawmakers blast USDA for food inspection lapses
2008-02-19, San Francisco Chronicle/Associated Press
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/19/MN17V4MU9.DTL

Lawmakers and watchdog groups had harsh words Monday for the U.S. Department of Agriculture after the agency ordered a recall of 143 million pounds of beef from a Southern California slaughterhouse. Beef products dating to Feb. 1, 2006, that came from Westland/Hallmark Meat Co. of Chino (San Bernardino County) are subject to the recall, which is the largest such action in U.S. history. The notice came after the Humane Society of the United States shot undercover video showing crippled and sick animals being shoved with forklifts - treatment that has also triggered an animal-abuse investigation. A congresswoman who chairs a House subcommittee that determines funding levels for the USDA sent a letter ... to the agency's undersecretary for food safety demanding an explanation of the Westland case before a March 5 budgetary review hearing. Rep. Rosa DeLauro, D-Conn., chairwoman of the House Agriculture, Food and Drug Administration Appropriations Subcommittee, called the scenes in the video inhumane and said the video "demonstrates just how far our food safety system has collapsed." DeLauro has called for an investigation into the government's ability to secure the safety of meat in the nation's schools. Westland was a major supplier of beef for the National School Lunch Program. She also asked how the agency is addressing staff shortages among slaughterhouse inspectors - an issue also raised by several food safety experts and watchdog groups. According to Felicia Nestor, a senior policy analyst with Food and Water Watch, a consumer advocacy group based in Washington, anywhere from 7 to 21 percent of slaughterhouse inspector positions have been left vacant by the USDA, depending on the district. "They just don't fill vacancies," Nestor said.

Note: For many revealing articles from reliable sources on government corruption, click here.


Predatory Lenders' Partner in Crime (by then N.Y. Governor Eliot Spitzer)
2008-02-14, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/13/AR20080213027...

Several years ago, state attorneys general and others involved in consumer protection began to notice a marked increase in a range of predatory lending practices by mortgage lenders. Some were misrepresenting the terms of loans, making loans without regard to consumers' ability to repay, making loans with deceptive "teaser" rates that later ballooned astronomically, packing loans with undisclosed charges and fees, or even paying illegal kickbacks. In addition, the widespread nature of these practices, if left unchecked, threatened our financial markets. Even though predatory lending was becoming a national problem, the Bush administration looked the other way and did nothing to protect American homeowners. In fact, the government chose instead to align itself with the banks that were victimizing consumers. Predatory lending was widely understood to present a looming national crisis. Individually, and together, state attorneys general of both parties brought litigation or entered into settlements with many subprime lenders that were engaged in predatory lending practices. Several state legislatures, including New York's, enacted laws aimed at curbing such practices. When history tells the story of the subprime lending crisis and recounts its devastating effects on the lives of so many innocent homeowners, the Bush administration will not be judged favorably. The tale is still unfolding, but when the dust settles, it will be judged as a willing accomplice to the lenders who went to any lengths in their quest for profits. So willing, in fact, that it used the power of the federal government in an unprecedented assault on state legislatures, as well as on state attorneys general and anyone else on the side of consumers.

Note: Isn't it interesting that just weeks after former New York Governor Eliot Spitzer wrote this highly revealing article his sexual affairs were exposed, leading to his resignation!


Is Ombudsman Already in Jeopardy?
2008-02-06, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/05/AR20080205028...

Hours before the new year, open-government groups won a key victory in their years-long fight to force government agencies to release documents without months, and sometimes years, of delay. The moment came when President Bush reluctantly signed a law enforcing better compliance with the Freedom of Information Act. But in his budget request this week, Bush proposed shifting a newly created ombudsman's position from the National Archives and Records Administration to the Department of Justice. Because the ombudsman would be the chief monitor of compliance with the new law, that move is akin to killing the critical function, some members of Congress and watchdog groups say. "Justice represents the agencies when they're sued over FOIA ... It doesn't make a lot of sense for them to be the mediator," said Kristin Adair, staff counsel at the National Security Archive. The law establishes the ombudsman's office to hear disputes over unmet FOIA requests, monitor agencies and foster best practices. The ombudsman would be part of the National Archives and Records Administration, the non-partisan repository where most of the nation's important documents eventually wind up, and from which they are distributed. The Justice Department has hardly shown itself to be a strong supporter of public information requests: After the Sept. 11, 2001, terrorist attacks, then-Attorney General John D. Ashcroft issued a memo urging agencies to use all legal means to refuse public document requests. A recent review of overdue FOIA requests by the National Security Archive criticizes Justice for holding up public records releases. In at least four cases, the delay was for more than 15 years.

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