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Banks that are getting taxpayer bailouts awarded their top executives nearly $1.6 billion in salaries, bonuses, and other benefits last year, an Associated Press analysis reveals. The rewards came even at banks where poor results last year foretold the economic crisis that sent them to Washington for a government rescue. Some trimmed their executive compensation due to lagging bank performance, but still forked over multimillion-dollar executive pay packages. Benefits included cash bonuses, stock options, personal use of company jets and chauffeurs, home security, country club memberships and professional money management. The total amount given to nearly 600 executives would cover bailout costs for many of the 116 banks that have so far accepted tax dollars to boost their bottom lines. The AP compiled total compensation based on annual reports that the banks file with the Securities and Exchange Commission. The 116 banks have so far received $188 billion in taxpayer help. Among the findings: • Lloyd Blankfein, president and chief executive officer of Goldman Sachs, took home nearly $54 million in compensation last year. The company's top five executives received a total of $242 million. The New York-based company on Dec. 16 reported its first quarterly loss since it went public in 1999. It received $10 billion in taxpayer money on Oct. 28. • John A. Thain, chief executive officer of Merrill Lynch, topped all corporate bank bosses with $83 million in earnings last year. Like Goldman, Merrill got $10 billion from taxpayers on Oct. 28.
Note: For many reports on the realities of the Wall Street bailout from reliable sources, click here.
We no longer have a civilian-led government. The most unnerving legacy of the Bush administration is the encroachment of the Department of Defense into a striking number of aspects of civilian government. Our Constitution is at risk. President-elect Barack Obama's selections of James L. Jones, a retired four-star Marine general, to be his national security adviser and, it appears, retired Navy Adm. Dennis C. Blair to be his director of national intelligence ... could complete the silent military coup d'etat that has been steadily gaining ground below the radar screen of most Americans and the media. While serving the State Department in several senior capacities over the past four years, I witnessed firsthand the quiet, de facto military takeover of much of the U.S. government. The first assault on civilian government occurred in faraway places -- Iraq and Afghanistan. As military officers sought to take over the role played by civilian development experts abroad, Pentagon bureaucrats quietly populated the National Security Council and the State Department with their own personnel ... to ensure that the Defense Department could keep an eye on its rival agencies. The encroachment within America's borders continued with the military's increased involvement in domestic surveillance and its attempts to usurp the role of the federal courts in reviewing detainee cases. The Pentagon also resisted ceding any authority over its extensive intelligence operations to the ... director of national intelligence. Now the Pentagon has drawn up plans to deploy 20,000 U.S. soldiers inside our borders by 2011.
Note: The author of this piece, Thomas A. Schweich, served the Bush administration as ambassador for counter-narcotics in Afghanistan and deputy assistant secretary of state for international law enforcement affairs.
I got a call from Illinois Gov. Rod Blagojevich the other day. The first thing I said to him was, "You know, this call is probably being taped." Blagojevich said he had read my column in The Chronicle last week, in which I raised questions about the "pay to play" charges being leveled against him in connection with his pending appointment of someone to fill Barack Obama's now-empty U.S. Senate seat. I think he liked how I raised questions about the timing and manner of U.S. Attorney Patrick Fitzgerald's decision to charge him over what appears to be little more than loose conversations he had with his staff. I wouldn't bet on him stepping aside anytime soon. If anything, his hand is getting stronger by the day. I can't go into details, but my impression is that the whole mess started because the governor had been considering appointing a political rival, Illinois Attorney General Lisa Madigan, to the Senate so she wouldn't be able to run against him when he went up for re-election in 2010. Apparently, Obama's people weren't happy about the idea of Madigan coming to Washington, and there were some pretty heated conversations between Blagojevich and Obama chief of staff Rahm Emanuel, which I understand will burn your ears off. It was pretty clear that Blagojevich is going to hang tough, especially after the Illinois Supreme Court shot down Madigan's request that he be forced from office because he supposedly can't carry out his duties. It is also pretty clear that despite all the screaming over his appearing to be "selling" the seat in return for political favors or financial considerations, his fellow Democrats are not going to strip him of his power to appoint someone to replace Obama.
Note: The author of this article is insider Willie Brown, former mayor of San Francisco and power-broking speaker of California's assembly for 15 years. For an alleged transcript of the actual conversation between Blagojevich and Rahm Emanuel, click here. If this is true, watch for some big shifts.
Mystery surrounds the death of a Republican pollster, recently compelled to give evidence about alleged election fraud in the 2004 election in Ohio, after he was killed in a plane crash. Top internet strategist Michael Connell, 45, was the only person in his single-engine private plane that crashed three miles short of the Akron-Canton airport on Friday night as he prepared to land. He had worked on Mr Bush's two presidential campaigns, advised John McCain this year and was also linked to allegedly missing White House emails in the 2006 controversy over a string of firings of US attorneys. The death of the married father of four immediately triggered conspiracy theories amid speculation that he had been about to reveal embarrassing details of the complicity of senior members of the Bush administration in fixing an election and destroying incriminating emails. In a blog posting entitled "One of my sources died in a plane crash last night...", Larisa Alexandrovna of The Raw Story revealed that Mr Connell had been talking to her about the Ohio case alleging that vote-tampering during the 2004 presidential election resulted in civil rights violations. "Mike was getting ready to talk. He was frightened... I am not saying that this was a hit nor am I resigned to this being simply an accident either. I am no expert on aviation and cannot provide an opinion on the matter. What I am saying, however, is that given the context, this event needs to be examined carefully."
Important Note: This death becomes even stranger considering that attorneys had sought protection for Connell against threats from Karl Rove in late July (click here). He also was apparently warned not to fly.
George S. Patton, America's greatest combat general of the Second World War, was assassinated after the conflict with the connivance of US leaders, according to a new book. The newly unearthed diaries of a colourful assassin for the wartime Office of Strategic Services (OSS), the forerunner of the CIA, reveal that American spy chiefs wanted Patton dead because he was threatening to expose allied collusion with the Russians that cost American lives. The death of General Patton in December 1945, is one of the enduring mysteries of the war era. Although he had suffered serious injuries in a car crash in Manheim, he was thought to be recovering and was on the verge of flying home. But after a decade-long investigation, military historian Robert Wilcox claims that OSS head General "Wild Bill" Donovan ordered a highly decorated marksman [named] Douglas Bazata to silence Patton. His book, Target: Patton: The Plot to Assassinate General George S. Patton, contains interviews with Mr Bazata, who died in 1999, and extracts from his diaries, detailing how he staged the car crash by getting a troop truck to plough into Patton's Cadillac and then shot the general with a low-velocity projectile, which broke his neck while his fellow passengers escaped without a scratch. Mr Wilcox told The Sunday Telegraph that when he spoke to Mr Bazata: "He was struggling with himself, all these killings he had done. He confessed to me that he had caused the accident, that he was ordered to do so by Wild Bill Donovan."
Note: For key insights from reliable, verifiable sources into assassination as a political tool, click here.
Michael Connell, the Bush IT expert who has been directly implicated in the rigging of George Bush's 2000 and 2004 elections, was killed last night when his single engine plane crashed three miles short of the Akron airport. Velvet Revolution ("VR"), a non-profit that has been investigating Mr. Connell's activities for the past two years, can now reveal that a person close to Mr. Connell has recently been discussing with a VR investigator how he can tell all about his work for George Bush. Mr. Connell told a close associate that he was afraid that George Bush and Dick Cheney would "throw [him] under the bus." A tipster close to the McCain campaign disclosed to VR in July that Mr. Connell's life was in jeopardy and that Karl Rove had threatened him and his wife, Heather. VR's attorney, Cliff Arnebeck, notified the United States Attorney General, Ohio law enforcement and the federal court about these threats and insisted that Mr. Connell be placed in protective custody. VR also told a close associate of Mr. Connell's not to fly his plane because of another tip that the plane could be sabotaged. Mr. Connell, a very experienced pilot, has had to abandon at least two flights in the past two months because of suspicious problems with his plane. On December 18, 2008, Mr. Connell flew to a small airport outside of Washington DC to meet some people. It was on his return flight the next day that he crashed.
Note: WantToKnow.info supporter Dr. Josh Mitteldorf downloaded this essay from the New York Times website the day it was published, but then was surprised to find it removed the very next day. You can find the article as it originally appeared at this link. For an excellent OpEdNews article by Dr. Mitteldorf on this most strange death and why it matters, click here. And for the deposition of Stephen Spoonamore, a Republican insider and computer consultant who came out as whistleblower on this matter, click here.
The revelation that Bernard Madoff — brilliant investor (or so almost everyone thought), philanthropist, pillar of the community — was a phony has shocked the world, and understandably so. The scale of his alleged $50 billion Ponzi scheme is hard to comprehend. Yet ... how different, really, is Mr. Madoff’s tale from the story of the investment industry as a whole? The financial services industry has claimed an ever-growing share of the nation’s income over the past generation, making the people who run the industry incredibly rich. Yet, at this point, it looks as if much of the industry has been destroying value, not creating it. And it’s not just a matter of money: the vast riches achieved by those who managed other people’s money have had a corrupting effect on our society as a whole. Last year, the average salary of employees in “securities, commodity contracts, and investments” was more than four times the average salary in the rest of the economy. Earning a million dollars was nothing special, and even incomes of $20 million or more were fairly common. The incomes of the richest Americans have exploded over the past generation, even as wages of ordinary workers have stagnated. High pay on Wall Street was a major cause of that divergence. Wall Street’s ill-gotten gains corrupted and continue to corrupt politics, in a nicely bipartisan way. From Bush administration officials ... who looked the other way as evidence of financial fraud mounted, to Democrats who still haven’t closed the outrageous tax loophole that benefits executives at hedge funds and private equity firms ... politicians have walked when money talked. The pay system on Wall Street lavishly rewards the appearance of profit, even if that appearance later turns out to have been an illusion.
Note: This entire, penetrating article is well worth a read at the link above. For many revealing reports from reliable sources on the realities of the Wall Street bailout, click here.
Decades after a notorious experiment, scientists have found test subjects are still willing to inflict pain on others - if told to by an authority figure. US researchers repeated the famous "Milgram test", with volunteers told to deliver electrical shocks to another volunteer - played by an actor. Even after faked screams of pain, 70% were prepared to increase the voltage, the American Psychologist study found. Both may help explain why apparently ordinary people can commit atrocities. Dr Jerry Burger, of Santa Clara University, used a [format similar to Milgram's], although he did not allow the volunteers to carry on beyond 150 volts after they had shown their willingness to do so, suggesting that the distress caused to the original volunteers had been too great. Again, however, the vast majority of the 29 men and 41 women taking part were willing to push the button knowing it would cause pain to another human. Even when another actor entered the room and questioned what was happening, most were still prepared to continue. He told Reuters: "What we found is validation of the same argument - if you put people in certain situations, they will act in surprising and maybe often even disturbing ways." He said that it was not that there was "something wrong" with the volunteers, but that when placed under pressure, people will often do "unsettling" things. Even though it was difficult to translate laboratory work to the real world, he said, it might partly explain why, in times of conflict, people could take part in genocide.
Note: For more on the famous Milgram experiment, click here. For powerfully inspiring information on how we can change this and build a better world, click here.
If someone told you to press a button to deliver a 450-volt electrical shock to an innocent person in the next room, would you do it? Common sense may say no, but decades of research suggests otherwise. In the early 1960s, [Stanley Milgram,] a young psychologist at Yale began what became one of the most widely recognized experiments in his field. In the first series, he found that about two-thirds of subjects were willing to inflict what they believed were increasingly painful shocks on an innocent person when the experimenter told them to do so, even when the victim screamed and pleaded. A new study to be published in the January issue of American Psychologist confirmed these results in an experiment that mimics many of Milgram's original conditions. This and other studies have corroborated the startling conclusion that the majority of people, when placed in certain kinds of situations, will follow orders, even if those orders entail harming another person. "It's situations that make ordinary people into evil monsters, and it's situations that make ordinary people into heroes," said Philip Zimbardo, professor emeritus of psychology at Stanford University and author of The Lucifer Effect: Understanding How Good People Turn Evil. "Most heroes are everyday people who do a heroic deed once in their lifetime because they [happen] to be in a situation of evil or danger," he said.
Note: What's amazing about this is the willingness of many people responding to nothing more that verbal authority to deliver shocks up to 450 volts to victims who are writhing in pain, screaming and begging for them to stop. What would you do? For more, click here.
Dick Cheney's lawyers are asserting that the vice president alone has the authority to determine which records, if any, from his tenure will be handed over to the National Archives when he leaves office in January. That claim is in federal court documents asking that a lawsuit over the records be dismissed. Cheney leaves office Jan. 20, potentially taking millions of records that might otherwise become public. Cheney is being sued by Citizens for Responsibility and Ethics in Washington, a watchdog group that is trying to ensure that no presidential records are destroyed or handled in a way that makes them unavailable to the public. The 1978 Presidential Records Act requires that all presidential and vice presidential records to be transferred to the National Archives immediately upon the end of the president's last term and charges the archivist with preserving and controlling access to presidential records. The law allows exceptions for personal or purely party records. But the law is unclear on how disagreements will be resolved about disputed records, said Steven Aftergood, a government secrecy expert at the Federation of American Scientists. "Decisions that are made in the next couple of weeks may prove irrevocable. If records are held from the archivist now, they may never be recovered," Aftergood said. A judge in September ordered Cheney to preserve all records while the suit continued.
Note: For many reports from reliable sources on government secrecy, click here.
The foreign nonunion auto companies located in the South have a plan to reduce wages and benefits at their factories in the United States. And to do it, they need to destroy the United Auto Workers. Last week, Senate Republicans from some Southern states went to work trying to do just that, on the foreign car companies' behalf. [Republican] representatives from states that subsidize companies such as Honda, Volkswagen, Toyota and Nissan first tried to force the UAW to take reductions in wages and benefits as a condition for supporting the auto industry bailout bill. When the UAW refused, those senators torpedoed the bill. They claimed that they couldn't support the bill without specifics about how wages would be "restructured." They didn't, however, require such specificity when it came to bailing out the financial sector. Their grandstanding, and the government's generally lackluster response to the auto crisis, highlight many of the problems that have caused our current economic mess: the lack of concern about manufacturing, the privileged way our government treats the financial sector, and political support given to companies that attempt to slash worker's wages. When one compares how the auto industry and the financial sector are being treated by Congress, the double standard is staggering. At Goldman Sachs ... employee compensation made up 71% of total operating expenses in 2007. In the auto industry, by contrast, autoworker compensation makes up less than 10% of the cost of manufacturing a car. Hundreds of billions were given to the financial-services industry with barely a question about compensation; the auto bailout, however, was sunk on this issue alone.
Note: For highly revealing reports from reliable sources on the realities of the Wall Street bailout, click here.
Bernard Madoff, accused of the largest fraud in U.S. history, will be allowed to remain in his $7 million Park Avenue apartment instead of being sent to jail, under terms of an agreement announced today by federal prosecutors. Madoff was unable to meet the bond conditions set last week by a federal magistrate which required him to get four people to sign his personal recognizance bond. According to the U.S. Attorney's office, only Madoff's wife and brothers were willing to sign the document. But instead of ordering him held in jail, prosecutors agreed to home detention with electronic monitoring. Madoff and his luxury apartment on Manhattan's upper east side will be fitted with an electronic monitoring device by the court's pre-trial services and Madoff will be under a curfew of between 7 p.m. through 9 a.m. Madoff's wife agreed to post the mansions in her name in Palm Beach, Florida and in Montauk on New York's Long Island. The Securities and Exchange Commission chairman said today the agency has found "no evidence of wrongdoing by any SEC personnel" in connection with Madoff's alleged $50 billion Ponzi scheme and that the SEC intends to get to the bottom of where it may have gone wrong. "I was very concerned to learn this week that credible allegations about Mr. Madoff had been made over nearly a decade and yet never referred to the commission for action," Commissioner Christopher Cox said at a press conference. Yesterday, Cox acknowledged what amounted to a generational failure on the part of the SEC to discover any hint of Madoff's scheme, despite allegations dating back to 1999.
Note: Why is the criminal responsible for the largest single banking scandal in history given house arrest rather than jail before his trial? Isn't it remarkable that the hands-off treatment Madoff received over the years from the SEC seems to be continuing from the Federal prosecutors? For more on Wall Street corruption, click here.
A new report by the U.S. Army War College talks about the possibility of Pentagon resources and troops being used should the economic crisis lead to civil unrest, such as protests against businesses and government or runs on beleaguered banks. �Widespread civil violence inside the United States would force the defense establishment to reorient priorities in extremis to defend basic domestic order and human security,� said the War College report. The study says economic collapse ... and loss of legal order are among possible domestic shocks that might require military action within the U.S.. U.S. Sen. James Inhofe, R-Okla., and U.S. Rep. Brad Sherman, D-Calif., both said U.S. Treasury Secretary Henry Paulson brought up a worst-case scenario as he pushed for the Wall Street bailout in September. Paulson ... said that might even require a declaration of martial law, the two noted. State and local police in Arizona say they have broad plans to deal with social unrest, including trouble resulting from economic distress. The security and police agencies declined to give specifics, but said they would employ existing and generalized emergency responses to civil unrest that arises for any reason. �The Phoenix Police Department is not expecting any civil unrest at this time, but we always train to prepare for any civil unrest issue. We have a Tactical Response Unit that trains continually and has deployed on many occasions for any potential civil unrest issue,� said Phoenix Police spokesman Andy Hill.
Note: Use of military forces to maintain domestic order has been forbidden since 1878 by the Posse Comitatus Act. The Pentagon appears to be planning to abrogate this key support of civil liberties.
The Food and Drug Administration, criticized by its own scientific advisers for ignoring available data about health risks posed by a chemical found in everyday plastic, said yesterday it has no plans to amend its position on the substance but will continue to study it. The agency has been reviewing its risk assessments for bisphenol A, a chemical used to harden plastic that is found in a wide variety of products, from baby bottles to compact discs to the lining of canned goods. The chemical, commonly called BPA, mimics estrogen and may disrupt the body's carefully calibrated endocrine system. Over the past decade, more than 130 studies have linked BPA to breast cancer, obesity, diabetes, neurological problems and other disorders. Much of the new research suggests that BPA has an effect at very low doses -- lower than the current safety standard set by the FDA. The most prominent finding was by the National Toxicology Program, part of the National Institutes of Health, which reported that there is "some concern" that BPA may affect the brain and behavioral development of fetuses, infants and young children. In October, the FDA was faulted by its own panel of independent science advisers, who said the agency's position on BPA was scientifically flawed. Yesterday, Laura Tarantino, director of the FDA's Office of Food Additive Safety, said the FDA will respond to that recommendation by performing additional analysis. She said she did not know if it would last months or years. "I can't tell you when we will finalize this," she said.
Note: For important new results in health research from reliable sources, click here.
Vice President Dick Cheney said Monday that he was directly involved in approving severe interrogation methods used by the CIA, and that the prison at Guantanamo Bay, Cuba, should remain open indefinitely. Cheney's comments ... mark the first time that he has acknowledged playing a central role in clearing the CIA's use of an array of controversial interrogation tactics, including a ... method known as waterboarding. "I was aware of the program, certainly, and involved in helping get the process cleared," Cheney said in an interview with ABC News. Asked whether he still believes it was appropriate to use the waterboarding method on terrorism suspects, Cheney said: "I do." His comments come on the heels of disclosures by a Senate committee showing that high-level officials in the Bush administration were intimately involved in reviewing and approving interrogation methods that have since been explicitly outlawed and that have been condemned internationally as torture. Soon after the Sept. 11 attacks, Cheney said, the CIA "in effect came in and wanted to know what they could and couldn't do. And they talked to me, as well as others, to explain what they wanted to do. And I supported it." Waterboarding involves strapping a prisoner to a tilted surface, covering his face with a towel and dousing it to simulate the sensation of drowning. CIA Director Michael V. Hayden has said that the agency used the technique on three Al Qaeda suspects in 2002 and 2003. Cheney has long defended the technique. But he has not previously disclosed his role in pushing to give the CIA such authority.
Note: For lots more from major media sources on US torture and other war crimes committed in the Iraq and Afghan wars, click here.
Israeli authorities on Monday expelled Richard Falk, a United Nations investigator of human rights in the Palestinian territories, saying he was unwelcome because of what the government has regarded as his hostile position toward Israel. Mr. Falk, an American, arrived in Israel on Sunday. He was held [overnight] at the airport and placed on the first available flight back to Geneva, his point of departure. Mr. Falk, a professor of international law at Princeton, has the title of United Nations Human Rights Council special rapporteur for the Palestinian territories. He has long been criticized in Israel for what many Israelis say are unfair and unpalatable views. He has compared Israel’s treatment of the Palestinians to Nazi atrocities and has called for more serious examination of the conspiracy theories surrounding the Sept. 11 attacks. Pointing to discrepancies between the official version of events and other versions, he recently wrote that “only willful ignorance can maintain that the 9/11 narrative should be treated as a closed book.” In his capacity as a United Nations investigator, Mr. Falk issued a statement this month describing Israel’s embargo on Gaza ... as a crime against humanity. Regardless of Mr. Falk’s views, some Israelis questioned the wisdom of banning him, noting that it would hardly make his reports more sympathetic. Jessica Montell, the executive director of B’Tselem, an Israeli group that monitors human rights in the occupied territories, said that ... barring his entry was “an act unbefitting of democracy.”
Note: Israel quite explicitly raised the issue of Falk's call for a genuine investigation of the 9/11 attacks in its explanation of his deportation. Why would the state of Israel oppose such an investigation? For information from major media sources on this and many other questions about what really happened on 9/11, click here.
What are the pills in your medicine cabinet, and how do you know they're best for you? When drug companies seek approval to market new medicines, they must show the U.S. Food and Drug Administration the results of all the tests they've run on volunteer patients - at first on only a few, then on dozens, and finally on hundreds or sometimes thousands. After winning approval, the companies typically sponsor reports of those tests in medical journal publications, which many doctors often rely on to determine whether to prescribe new drugs for their patients. Now a skeptical team of medical investigators at UCSF has accused the major drug companies of bias by distorting the results of their trials in those publications, making it hard for doctors to judge for themselves the pros and cons of prescribing the new drugs. As a result, the researchers say, patients may sometimes be taking medicines they don't need - or with unwanted side effects - that their doctors have prescribed on the basis of inadequate information. The UCSF team, led by Lisa A. Bero of the medical center's Institute for Health Policy Studies, probed the details of 164 drug trials involving as many as 1,500 patients over a two-year period and then examined reports on those trials that were published in medical journals, as well as those that remained unpublished. "We found really important information from the official trial reports that were either not published at all or that stressed mostly the positive results of trials in the published versions," said Kristin Rising, a physician at the institute who did the major investigation.
Note: For lots more on corporate corruption from reliable sources, click here.
Congress wanted to guarantee that the $700 billion financial bailout would limit the eye-popping pay of Wall Street executives, so lawmakers included a mechanism for reviewing executive compensation and penalizing firms that break the rules. But at the last minute, the Bush administration insisted on a one-sentence change to the provision. The change stipulated that the penalty would apply only to firms that received bailout funds by selling troubled assets to the government in an auction, which was the way the Treasury Department had said it planned to use the money. Now, however, the small change looks more like a giant loophole, according to lawmakers and legal experts. In a reversal, the Bush administration has not used auctions for any of the $335 billion committed so far from the rescue package, nor does it plan to use them in the future. Lawmakers and legal experts say the change has effectively repealed the only enforcement mechanism in the law dealing with lavish pay for top executives. "The flimsy executive-compensation restrictions in the original bill are now all but gone," said Sen. Charles E. Grassley (Iowa), ranking Republican on of the Senate Finance Committee. Senators on the Finance Committee have expressed concern to Paulson and are now considering whether they should amend the law to apply the enforcement mechanism to all firms participating in the bailout.
Note: For a treasure trove of reliable reports exposing the realities of the Wall Street bailout, click here.
Most of us take for granted that those rectangular green slips of paper we keep in our wallets are inviolable: the physical embodiment of value. But alternative forms of money have a long history and appear to be growing in popularity. It's not merely barter or primitive means of exchange like seashells or beads. Beneath the financial radar, in hip U.S. towns or South African townships, in shops, markets and even banks, people throughout the world are exchanging goods and services via thousands of currency types that look nothing like official tender. Alternative means of trade often surface during tough economic times. "When money gets dried up and there are still needs to be met in society, people come up with creative ways to meet those needs," says Peter North, a senior lecturer in geography at the University of Liverpool and the author of [a book] on the subject. He refers to the "scrips" issued in the U.S. and Europe during the Great Depression that kept money flowing and the massive barter exchanges involving millions of people that emerged amid runaway inflation in Argentina in 2000. "People were kept from starving [this way]," he says. Closer to home, "Ithaca Hours," with a livable hourly wage as the standard, were launched during the 1991 recession to sustain the economy in Ithaca, N.Y., and stem the loss of jobs. Hours, which are legal and taxable, circulate within the community, moving from local shop to local artisan and back, rather than leaking out into the larger monetary system. The logo on the Hour reads "In Ithaca We Trust." Alternative (or "complementary") currencies range from quaint to robust, simple to high tech.
Note: Read the entire article at the link above to learn about the great range of uses and benefits provided by alternative currencies.
When it comes to bailouts of American business, Barney Frank and the Congress may be just getting started. It turns out the abyss is deeper than most people think because there is a second mortgage shock heading for the economy. If you thought sub-primes were insanely reckless wait until you hear what's coming. One of the best guides to the danger ahead is [investment fund manager] Whitney Tilson. "We had the greatest asset bubble in history and now that bubble is bursting. The single biggest piece of the bubble is the U.S. mortgage market and we're probably about halfway through the unwinding and bursting of the bubble," Tilson explains. "It may seem like all the carnage out there, we must be almost finished. But there's still a lot of pain to come in terms of write-downs and losses that have yet to be recognized." The trouble now is that the insanity didn't end with sub-primes. There were two other kinds of exotic mortgages that became popular, called "Alt-A" and "option ARM." The option ARMs, in particular, lured borrowers in with low initial interest rates - so-called teaser rates - sometimes as low as one percent. But after two, three or five years those rates "reset." They went up. And so did the monthly payment. A mortgage of $800 dollars a month could easily jump to $1,500. Now the Alt-A and option ARM loans made back in the heyday are starting to reset, causing the mortgage payments to go up and homeowners to default.
Note: For a six-minute video of this revealing article, click here. For lots more on the realities of the financial crisis, click here.
Important Note: Explore our full index to key excerpts of revealing major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.