Tuesday, December 16, 2008

Bush's Final F.U.

Bush's Final F.U.

source: http://www.rollingstone.com/politics/story/24991066/bushs_final_fu

The administration is rushing to enact a host of last-minute regulations that will screw America for years to come

TIM DICKINSON

Posted Dec 25, 2008 11:55 AM

With president-elect Barack Obama already taking command of the financial crisis, it's tempting to think that regime change in America is a done deal. But if George Bush has his way, the country will be ruled by his slash-and-burn ideology for a long time to come.

In its final days, the administration is rushing to implement a sweeping array of "midnight regulations" — de facto laws issued by the executive branch — designed to lock in Bush's legacy. Under the last- minute rules, which can be extremely difficult to overturn, loaded firearms would be allowed in national parks, uranium mining would be permitted near the Grand Canyon and many injured consumers would no longer be able to sue negligent manufacturers in state courts. Other rules would gut the Endangered Species Act, open millions of acres of wild lands to mining, restrict access to birth control and put local cops to work spying for the federal government.

"It's what we've seen for Bush's whole tenure, only accelerated," says Gary Bass, executive director of the nonpartisan group OMB Watch. "They're using regulation to cement their deregulatory mind-set, which puts corporate interests above public interests."

While every modern president has implemented last-minute regulations, Bush is rolling them out at a record pace — nearly twice as many as Clinton, and five times more than Reagan. "The administration is handing out final favors to its friends," says VĂ©ronique de Rugy, a scholar at George Mason University who has tracked six decades of midnight regulations. "They couldn't do it earlier — there would have been too many political repercussions. But with the Republicans having lost seats in Congress and the presidency changing parties, Bush has nothing left to lose."

The most jaw-dropping of Bush's rule changes is his effort to eviscerate the Endangered Species Act. Under a rule submitted in November, federal agencies would no longer be required to have government scientists assess the impact on imperiled species before giving the go-ahead to logging, mining, drilling, highway building or other development. The rule would also prohibit federal agencies from taking climate change into account in weighing the impact of projects that increase greenhouse emissions — effectively dooming polar bears to death-by-global-warming. According to Carl Pope, executive director of the Sierra Club, "They've taken the single biggest threat to wildlife and said, 'We're going to pretend it doesn't exist, for regulatory purposes.'"

Bush is also implementing other environmental rules that will cater to the interests of many of his biggest benefactors:

BIG COAL In early December, the administration finalized a rule that allows the industry to dump waste from mountaintop mining into neighboring streams and valleys, a practice opposed by the governors of both Tennessee and Kentucky. "This makes it legal to use the most harmful coal-mining technology available," says Allen Hershkowitz, a senior scientist at the Natural Resources Defense Council. A separate rule also relaxes air-pollution standards near national parks, allowing Big Coal to build plants next to some of America's most spectacular vistas — even though nine of 10 EPA regional administrators dissented from the rule or criticized it in writing. "They're willing to sacrifice the laws that protect our national parks in order to build as many new coal plants as possible," says Mark Wenzler, director of clean-air programs for the National Parks Conservation Association. "This is the last gasp of Bush and Cheney's disastrous policy, and they've proven there's no line they won't cross."

BIG OIL In a rule that becomes effective just three days before Obama takes office, the administration has opened up nearly 2 million acres of mountainous lands in Colorado, Utah and Wyoming for the mining of oil shale — an energy-intensive process that also drains precious water resources. "The administration has admitted that it has no idea how much of Colorado's water supply would be required to develop oil shale, no idea where the power would come from and no idea whether the technology is even viable," says Sen. Ken Salazar of Colorado. What's more, Bush is slashing the royalties that Big Oil pays for oil-shale mining from 12.5 percent to five percent. "A pittance," says Salazar.

BIG AGRICULTURE Factory farms are getting two major Christmas presents from Bush this year. Circumventing the Clean Water Act, the administration has approved last-minute regulations that will allow animal waste from factory farms to seep, unmonitored, into America's waterways. The regulation leaves it up to the farms themselves to decide whether their pollution is dangerous enough to require them to apply for a permit. "It's the fox guarding the henhouse — all too literally," says Pope. The water rule goes into effect December 22nd, and a related rule in the works would exempt factory farms from reporting air pollution from animal waste.

BIG CHEMICAL In October, two weeks after consulting with industry lobbyists, the White House exempted more than 100 major polluters from monitoring their emissions of lead, a deadly neurotoxin. Seemingly hellbent on a more toxic future, the administration will also allow industry to treat 3 billion pounds of hazardous waste as "recycling" each year, and to burn another 200 million pounds of hazardous waste reclassified as "fuel," increasing cancer-causing air pollution. The rule change is a reward to unrepentant polluters: Nearly 90 percent of the factories that will be permitted to burn toxic waste have already been cited for violating existing environmental protections.

Environmental rollbacks may take center stage in Bush's final deregulatory push, but the administration is also promulgating a bevy of rules that will strip workers of labor protections, violate civil liberties, and block access to health care for women and the poor. Among the worst abuses:

LABOR Under Bush, the Labor Department issued only one major workplace-safety rule in eight years — and that was under a court order. But now the Labor Department is finalizing a rule openly opposed by Obama that would hamper the government's ability to protect workers from exposure to toxic chemicals. Bypassing federal agencies, Labor Secretary Elaine Chao developed the rule in secret, relying on a report that has been withheld from the public. Under the last-minute changes, federal agencies would be expected to gather unnecessary data on workplace exposure and jump through more bureaucratic hurdles, adding years to an already cumbersome regulatory process.

In another last-minute shift, the administration has rewritten rules to make it harder for workers to take time off for serious medical conditions under the Family and Medical Leave Act. In addition, the administration has upped the number of hours that long-haul truckers can be on the road. The new rule — nearly identical to one struck down by a federal appeals court last year — allows trucking companies to put their drivers behind the wheel for 11 hours a day, with only 34 hours of downtime between hauls. The move is virtually certain to kill more motorists: Large-truck crashes already kill 4,800 drivers and injure another 76,000 every year.

HEALTH CARE In late August, the administration proposed a new regulation ostensibly aimed at preventing pharmacy and clinic workers from being forced to participate in abortions. But the wording of the new rule is so vague as to allow providers to deny any treatment that anyone in their practice finds objectionable — including contraception, family planning and artificial insemination. Thirteen state attorneys general protested the regulation, saying it "completely obliterates the rights of patients to legal and medically necessary health care services."

In a rule that went into effect on December 8th, the administration also limited vision and dental care for more than 50 million low-income Americans who rely on Medicaid. "This means the states are going to have to pick up the tab or cut the services at a time when a majority of states are in a deficit situation," says Bass of OMB Watch. "It's a horrible time to do this." To make matters worse, the administration has also raised co-payments for Medicaid, forcing families on poverty wages to pay up to 10 percent of the cost for doctor visits and medicine. One study suggests that co-payments could cause Medicaid patients to skip nearly a fifth of all prescription-drug treatments. "People who have nothing are being asked to pay for services they rely upon to live," says Elaine Ryan, vice president of government relations for AARP. "Imposing co-pays on the poorest and sickest people in the United States is cynical and cruel."

NATIONAL SECURITY Under midnight regulations, the administration is seeking to lock in the domestic spying it began even before 9/11. One rule under consideration would roll back Watergate-era prohibitions barring state and local law enforcement from spying on Americans and sharing that information with U.S. intelligence agencies. "If the federal government announced tomorrow that it was creating a new domestic intelligence agency of more than 800,000 operatives reporting on even the most mundane everyday activities, Americans would be outraged," says Michael German, a former FBI agent who now serves as national security policy counsel for the ACLU. "This proposed rule change is the final step in creating an America we no longer recognize — an America where everyone is a suspect."

John Podesta, the transition chief for the Obama administration, has vowed that the new president will leverage his "executive authority" to fight Bush's last-minute rule changes. But according to experts who study midnight regulations, there's surprisingly little an incoming executive can do to overturn such rules. The Bush administration succeeded in repealing just three percent of the regulations finalized before Bill Clinton left office in 2001. "Midnight regulations under Bush are being executed early and with great intent," says Bass of OMB Watch. "And that intent is to lock the next administration into these regulations, making it very difficult for Obama to undo what Bush just did."

To protect the new rules against repeal, the Bush administration began amping up its last-gasp regulatory process back in May. The goal was to have all new regulations finalized by November 1st, providing enough time to accommodate the 60-day cooling-off period required before major rule changes — those that create an economic impact greater than $100 million — can be implemented.

Now, however, the administration has fallen behind schedule — so it's gaming the system to push through its rules. In several cases, the Office of Management and Budget has fudged the numbers to classify rules that could have billion-dollar consequences as "non-major" — allowing any changes made through mid-December to take effect in just 30 days, before Obama is inaugurated. The administration's determination of what constitutes a major change is not subject to review in court, and the White House knows it: Spokesman Tony Fratto crowed that the 60-day deadline is "irrelevant to our process."

Once a rule is published in the Federal Register, the Obama administration will have limited options for expunging it. It can begin the rule-making process anew, crafting Obama rules to replace the Bush rules, but that approach could take years, requiring time-consuming hearings, scientific fact-finding and inevitable legal wrangling. Or, if the new rules contain legal flaws, a judge might allow the Obama administration to revise them more quickly. Bush's push to gut the Endangered Species Act, for example, was done in laughable haste, with 15 employees given fewer than 36 hours to review and process more than 200,000 public comments. "The ESA rule is enormously vulnerable to a legal challenge on the basis that there was inadequate public notice and comment," says Pope of the Sierra Club. "The people who did that reviewing will be put on a witness stand, and it will become clear to a judge that this was a complete farce." But even that legal process will take time, during which industry will continue to operate under the Bush rules.

The best option for overturning the rules, ironically, may be a gift bestowed on Obama by Newt Gingrich. Known as the Congressional Review Act, it was passed in 1996 to give Congress the option of overriding what GOP leaders viewed at the time as excessive regulation by Bill Clinton. The CRA allows Congress to not only kill a new rule within 60 days, but to do so with a simple, filibuster-immune majority. De Rugy, the George Mason scholar, expects Democrats in the House and Senate to make "very active use of the Congressional Review Act."

But even this option, it turns out, is fraught with obstacles. First, the CRA requires a separate vote on each individual regulation. Second, the act prohibits reviving any part of a rule that has been squelched. Since Bush's rules sometimes contain useful reforms — the move to limit the Family and Medical Leave Act also extends benefits for military families — spiking the rules under the CRA would leave Obama unable to restore or augment those benefits in the future. Whatever Obama does will require him to expend considerable political capital, at a time when America faces two wars and an economic crisis of historic proportions.

"It's going to be very challenging for Obama," says Bass. "Is he going to want to look forward and begin changing the way government works? Or is he going to look back and fix the problems left by Bush? Either way, it's a tough call."

[From Issue 1068-69 — December 25, 2008 - January 8, 2009]

Related Stories:

Bush's Midnight Regulations


HEALTH CARE
- Cutting medicaid
- Allowing healthcare workers to refuse “morally objectionable” procedures
- Revising rules for international drug trials
- Narrowing the definition of combat related disability
- Allowing states to set premiums and higher co-payments

ENVIRONMENT
- Allowing mining near the Grand Canyon
- Discounting global warming when assessing species risks
- Weakening the Endangered Species Act
- Eliminating review of fishing regulations
- Allowing more emissions from power plants
- Opening protected land to energy development
- Allowing factory farms to self-regulate waste
- Altering solid waste definition
- Allowing snowmobiles in Yellowstone
- Allowing coal companies to dump dirt and rock into streams

CIVIL LIBERTIES
- Allowing guns in national parks
- Allowing broader law-enforcement monitoring
- Implementing the REAL ID Act

LABOR
- Allowing truckers to work 14 hour days
- Requiring labor unions to file extensive financial reports
- Making it harder to regulate toxic substances on the job
- Stripping collective bargaining rights from federal employees
- Relaxing rules on investment adviser conflicts of interest
- Revising H-2A visa rules to lower wages and encourage exploitation

TAXES
- Significantly reducing corporate taxes

ADMINISTRATION
- Moving political appointees to permanent posts

Click here to download a pdf of the report.

Health Care

- Cutting back Medicaid: New rules “narrowed the scope of services that can be provided to poor people under Medicaid’s outpatient hospital benefit.”

- Allowing healthcare workers to refuse procedures for moral or religious reasons: The rule would allow doctors, nurses and pharmacists “to refuse to participate in any procedure they find morally objectionable, including abortion and possibly even artificial insemination and birth control.” The rule also makes it clear “that healthcare workers also may refuse to provide information or advice to patients who might want an abortion.”

- Revising the rules for international drug trials: The U.S. Food and Drug Administration recently to no longer hold pharmaceutical companies to the standards of the World Medical Association’s Declaration of Helsinki while conducting human drug trials. The new rule requires “that pharmaceutical companies comply only with local regulations where the trials are conducted.”

- Narrowing the definition of combat related disability: A change made by the Pentagon in March narrowed the definition of combat related disability, “costing some injured veterans thousands of dollars in lost benefits.” The veterans advocacy group Disabled American Veterans called the policy revision a “shocking level of disrespect for those who stood in harm’s way.”

- Allowing states to set premiums and higher co-payments: A new rule “gives states sweeping authority to charge premiums and higher co-payments for doctors’ services, hospital care and prescription drugs provided to low-income people under Medicaid.” The New York Times described the rule as a “sea change” in Medicaid.

Labor

- Making it harder to take paid time off: Changes to the Family and Medical Leave Act (FMLA) “make it more difficult for employees to use paid vacation or personal days when they take leave for medical or family emergencies,” and state that “a worker with a chronic health condition is required to certify doctor visits at least twice a year for that condition.”

- Allowing truck drivers to work 14 hour days: Changes to Federal Motor Carrier Safety Administration rules “allow truckers to drive as many as 11 consecutive hours” and work up to 14 hour days.

- Requiring labor unions to file extensive financial reports: The Office of Labor-Management Standards is moving to finalize a rule that would require labor unions to file extensive annual financial reports for trusts, such as pension funds, they have established to benefit their members (T-1 Form). This proposal is seen as an effort to overload labor unions with paperwork.

- Making it harder to regulate toxic substances on the job: The Labor Department is trying to complete a new rule, supported by business groups, that would “make it much harder for the government to regulate toxic substances and hazardous chemicals to which workers are exposed on the job.”

- Stripping collective bargaining rights from federal employees: Bush issued an executive order “that denies collective bargaining rights to about 8,600 federal employees who work in law enforcement, intelligence and other agencies responsible for national security.” 900 of these employees were already represented by collective bargaining units.

- Relaxing rules on investment advisers conflicts of interest: The new regulation “would relax the rules on when investment advisers can recommend products sold by their own companies.” Consumer groups say the change “could put retirement savings at risk.”

- Revising H-2A visa rules to lower wages and encourage exploitation: The Department of Labor issued changes to the H-2A visa that “revise the way wages are calculated and will lower them substantially.” The changes also “reduce requirements for growers to prove they have made a good-faith effort to recruit U.S. workers.” The changes could lead to the easy exploitation of immigrant workers.

Environment

- Allowing mining near the Grand Canyon: A rule issued by the Bureau of Land Management prevents Congress from ordering emergency withdrawal of federal land from mining claims. The House Natural Resources Committee “issued such a withdrawal order in June for about 1 million acres near the Grand Canyon.”

- Allowing federal agencies to discount global warming when assessing risks to endangered species: The goal of the change is to “is to eliminate a long-standing provision of the Endangered Species Act that requires an independent scientific review by either the U.S. Fish and Wildlife Service or the National Oceanic and Atmospheric Administration of any federal project that could affect a protected species.” Instead, individual agencies would decide whether a project could harm an imperiled species.

- Weakening the Endangered Species Act: The rules would eliminate the input of federal wildlife scientists in some endangered species cases, [by allowing] the federal agency in charge of building, authorizing or funding a project to determine for itself whether a project would be likely to harm endangered wildlife and plants.

Eliminating environmental reviews of fishing regulations: A rule change proposed by National Marine Fisheries Service would repeal a requirement that “environmental impact statements be prepared for certain fisheries-management decisions.” Instead, the government would “give review authority to regional councils dominated by commercial and recreational fishing interests.”

Allowing more emissions from power plants: The Environmental Protection Agency is “finalizing new air-quality rules that would make it easier to build coal-fired power plants, oil refineries and other major polluters near national parks and wilderness areas” by weakening the Clean Air Act.

Opening protected wilderness areas to energy development: Despite being blocked by “federal court and administrative rulings,” the Bureau of Land Management is “reviving plans to sell oil and gas leases in pristine wilderness areas in eastern Utah that have long been protected from development.”

- Letting factory farms voluntarily decide if they need permits to discharge waste into waterways: The new rule “asks companies that run confined animal feeding operations to voluntarily apply for permits to discharge waste into waterways. If the operators don’t think they pollute enough, they are under no obligation to get permits.”

- Altering the definition of solid waste: This rule “effectively exempts about 1.5 million tons of hazardous waste that is recycled from a regulation that required such material to meet strict labeling, transportation and disposal rules.”

- Allowing snowmobiles in Yellowstone: Overturning a ban on snowmobiles put in place during the Clinton administration, the National Park Service “proposed that 318 snowmobiles would be allowed in Yellowstone per day while 50 would be given access to Grand Teton. That’s down from a combined 605 snowmobiles in a plan that was rejected by a federal judge in September.”

- Allowing coal companies to dump dirt and rock into streams: A proposed rule by the Office of Surface Mining “would allow coal companies to dump rock and dirt from mountaintop mining operations into nearby streams and valleys.”

Civil Liberties

- Allowing guns in national parks: The Department of the Interior finalized a rewrite to “the policy for the national parks, with the idea that federal regulations should “mirror” state laws on guns in parks.” The decision allows “concealed, loaded firearms at 388 of 391 national park sites.”

- Broadening law enforcements monitoring abilities: The new rule “would broaden the scope of activities authorities could monitor to include organizations as well as individuals, along with non-criminal activities that are deemed ‘suspicious.’

- Issuing final rules to implement the REAL ID Act:The Department of Homeland Security issued a final rule to implement the REAL ID Act that sets minimum standards for state-issued driver’s licenses and identification cards. This rule has “rendered REAL ID virtually useless as a security measure, while still posing serious privacy problems.” The rule places no limit on the permissible uses of the REAL ID card by governmental or commercial entities, leading to concern that the REAL ID card will become a de facto national ID card.

Taxes

- Significantly reducing corporate taxes: The Internal Revenue Service has been “unusually aggressive in doing what it can to lower corporate taxes, going above and beyond what has been allowed in the past.” The changes “drain billions of dollars of badly needed tax revenue at a time when the federal deficit is mushrooming.”

Administration

- Protecting political appointees by shifting them to permanent posts: The administration’s shifting of political appointees to civil service posts in the Interior, Labor, and Housing and Urban Development departments, “at least initially will deprive the incoming Obama administration of the chance to install its preferred appointees in some key jobs.”

source: http://wonkroom.thinkprogress.org/bush-sprint-finish/

Midnight Regulations


Monday, December 15, 2008

An eye opener on our economic situation

I.O.U.S.A.




We haven't seen the worst of it yet. . . Be sure to send a message to congress demanding they do something to stop the fiscal crisis http://www.iousathemovie.com/takeaction/

Friday, December 5, 2008

More Than Half Million Jobs Axed in November

Employers axed 533,000 jobs in November, the largest cutback in 34 years. The Labor Department's report pushes the unemployment rate to 6.7 percent - a 15 year high. (Dec. 5)



What the Unemployment Rate Measures: The Unemployment Rate measures the percent of people who are actively looking for a job that didn’t find one in the past month. It doesn’t count the jobless who:

* didn’t look for a job in the past four weeks
* are so discouraged they have stopped looking for a job.

Unemployment is measured by the Bureau of Labor Statistics (BLS) monthly. The most important thing to compare is this month's unemployment compared to this time last year. If you compare this month to last month, there could be a reason based on the season, such as the school year ending. The BLS report usually will indicate that, but you have to look for it.
How the Unemployment Rate Affects the U.S. Economy: Obviously, the unemployment rate is important as a gauge of joblessness. For this reason, it is also a gauge of the economy's growth rate.

However, the unemployment rate is a lagging indicator. This means it measures the effect of a recession and so occurs after one has already started.

For example, employers are reluctant to lay people off when the economy turns bad, and even more reluctant to hire them when the economy improves. For that reason, the unemployment rate can only confirm what the other indicators are showing. For example, if the other indicators show a quickening economy, and the unemployment rate is declining, then you know for sure businesses are confident enough to start hiring again.
The unemployment rate is another indicator used by the Federal Reserve and investors to determine the health of the economy. In addition to the unemployment rate, they also look at which sectors are losing jobs faster. Investors might use this to determine which sector-specific mutual funds to sell.
How the Unemployment Rate Affects You: The year-over-year unemployment rate will tell you if unemployment is worsening. If more people are looking for work, less people will be buying, and the retail sector may start to decline. Also, if you are unemployed yourself, it will tell you how much competition you have, and how much leverage you might have in negotiating for a new position.
Recent Unemployment Trends: The unemployment rate has been improving since June 2003, when it peaked at 6.3%. Of course, by this time, the recession was over and GDP had already surpassed a 2% rate of growth.
The Unemployment Outlook: The economy is sending mixed messages right now, so no one really knows if unemployment will increase or not. However, the real estate industry is declining, and construction has always been a big driver of employment.
Many analysts predict that the Fed is safely guiding the economy through a soft landing, which means stable growth and low inflation. Many others are convinced the Fed has overshot, which means the effects of the declining real estate market will drag the economy down just as higher oil prices are driving inflation up. Since unemployment is a lagging indicator, keep an eye on the GDP and other indicators to see what unemployment will do.
source: http://useconomy.about.com/od/economicindicators/p/unemploy_rate.htm

Bailout holdings down $9 billion

AP IMPACT: Some bailout holdings down $9 billion http://news.yahoo.com/s/ap/20081205/ap_on_bi_ge/bailout_returns
By FRANK BASS, Associated Press Writer Frank Bass, Associated Press Writer

Chart shows rate of returns for common stocks purchased by the Treasury from
AP – Chart shows rate of returns
for common stocks purchased by
the Treasury from financial institutions; …


Stock intended to eventually earn taxpayers a profit as part of the Bush administration's massive bank bailout has lost a third of its value — about $9 billion — in barely one month, according to an Associated Press analysis. Shares in virtually every bank that received federal money have remained below the prices the government negotiated.

Most of the Treasury Department's investments since late October have been in preferred bank stocks, more than $180 billion worth, with investments in giants like Citigroup and JPMorgan Chase, and many small community banks. But the government also negotiated options to buy up to 1.2 billion shares of common bank stock that was valued at $27 billion.

The Treasury Department said it did not expect these common stock options to be profitable immediately and negotiated them so taxpayers could share in the wealth if the bank stocks recover.

Now, however, the value of that common stock is worth less than $18 billion. If the government exercised all its warrants to purchase the stock today, it would lose money on 51 of its 53 agreements. Taxpayers would be out $9.1 billion.

The government can exercise its options to buy the common stock anytime over the next decade, but the options were "immediately exercisable," according to banks' securities filings.

"The markets are saying this plan isn't going to work for the banks," said Ross Levine, Tisch professor of economics at Brown University. "They're asking where this plan is going."

Potential losses among these common stocks include more than $3 billion for the administration's biggest deal, a $45 billion injection into Citigroup Inc. The government gave the New York-based giant $25 billion on Oct. 28. In addition to preferred stock worth $1,000 per share, the deal included warrants to pick up 210 million shares of common stock at $17.85. In late November, the White House put together a plan to give Citibank another $20 billion. The deal also included warrants to pick up 254 million shares, with the price set at $10.61.

Citigroup stock has since fallen below $8.

The government would only earn a profit if the share price eventually exceeds the negotiated warrant price. Under the bailout plan, the common stock warrants — effectively treated as stock options for non-employees — would allow taxpayers to share the wealth as banks recover.

"We're not exercising the warrants today," Treasury spokeswoman Brookly McLaughlin said. "We have 10 years to exercise the warrants, so it's more accurate to look at what the market believes are the 10-year prospects for these banks."

The Treasury Department projects that the $180 billion in preferred stock will generate roughly $9 billion per year during the first five years and $16.2 billion per year afterward, assuming the banks remain solvent.

The preferred stock has a fixed value of $1,000 per share, and a 5 percent annual dividend for the first five years of the investment.

Treasury Secretary Henry M. Paulson Jr. describes the cash infusion as "an investment, not an expenditure."

So far, however, only two of the 53 banks can be considered a good investment.

The AP's analysis found that only HF Financial Corp. of Sioux Falls, S.D., and First Niagara Financial Group of Lockport, N.Y., would make money for taxpayers if the common stock options were exercised today. According to records filed with the Securities and Exchange Commission, both are small banks, far removed from the wheeling and dealing of federally insured giants that ravaged the global economy by making bad bets on subprime mortgages.

The South Dakota bank, for example, has a market value of $54 million, a fraction of the size of JPMorgan Chase, the nation's largest. The Treasury Department gave $25 million to HF Financial on Nov. 21 in exchange for 25,000 shares of preferred stock and warrants that allow taxpayers to buy 302,000 shares at $12.40 within the next decade. For now, it's a good deal; the bank's stock is trading around $13. If the government exercised its option to buy HF stock today, taxpayers would collect $63,500.

More companies would be in the black, but the government used a 20-day stock price average to set the warrant price, meaning it willingly negotiated to pay roughly 25 percent more than the stock was worth on the day it signed the deals on behalf of taxpayers.

Nara Bancorp, created in 1989 to serve Southern California's growing Korean-American community, borrowed $67 million from taxpayers on Nov. 21, when its stock was trading at $7.50 per share. But the government negotiated the option to buy 1 million shares of Nara common stock at $9.64, higher than its stock is currently trading.

"It's a complete mistake to think this is a good investment for us," said Paola Sapienza, a finance associate professor at Northwestern University's Kellogg School of Management, who spearheaded a September protest of the bailout by more than 200 of the nation's leading economists. "It's a gamble. It's like going to Las Vegas."

Wednesday, December 3, 2008

Prop 8

See more Jack Black videos at Funny or Die

Tuesday, December 2, 2008

End voter registration problems. Demand reform.

It's been a long election season, hasn't it? And now that we've chosen our next President, it's tempting to forget all about elections and go back to our routines.

But before we do that, let's think ahead.

We may have seen record turnout at the polls this year, but all the while, eligible voters across the country were disenfranchised because their voter registrations were purged from the rolls, clerical errors, or worse, weren't even processed in time.

Some didn't know they were required to re-register after a move, or they missed registration deadlines they hadn’t even known about.

American voters deserve better, and the first and most important step our government can take is to implement automatic and permanent voter registration.

Join me in telling our leaders it's time to make voter registration universal.
http://www.nationalcampaignforfairelections.org/page/s/autoregis

Automatic, permanent registration will provide a simple upgrade to our voting systems without creating big and expensive new bureaucracies. It's secure, it's accurate, it's modern and it will make sure every American is automatically registered to vote when they become eligible. And after that, the registration will last a lifetime.

Automatic voter registration won't fix everything, but it's an important first step towards ensuring that every eligible vote is cast and counted in 2012 and beyond.

Tell Congress we need automatic and permanent voter registration now! We can't wait until the next election comes around. http://www.nationalcampaignforfairelections.org/page/s/autoregis