When Bank of America announced that it was moving its derivatives-laden portfolio at its subsidiary Merrill Lynch over to its bank holding company, it said it was merely responding to pressure from some of its partners to take advantage of the holding company’s higher credit rating. It would also reduce the need for the bank to post an additional $3.3 billion in collateral because of the recent downgrade it suffered at the hands of Moody’s last month.
The U.S. economy added 103,000 new jobs in September with the unemployment rate holding steady at 9.1 percent, the U.S. Bureau of Labor Statistics (BLS) reported October 7. Most U.S. stock indexes rallied on the news in the early morning hours of the announcement, as the job growth was better than expected and stronger than the average of the past three months.
Federal Reserve Open Market Committee Chairman Ben Bernanke's told the congressional Joint Economic Committee of Congress October 4 that he has the remedy for the ailing economic recovery he admits is "close to faltering": More of the same deficit spending, monetary stimulus, and work to re-inflate the housing bubble.
Americans have invested in homes in many ways for a long time. During the frontier days of the West, families would homestead property and so through grit and endless work transform a patch of prairie into a home, a barn, a farm, and an investment. Federal policies have gutted much of that wealth. Environmental regulations have interfered with the sensible activities of farmers (as if Big Government had a greater long term interest in the preservation of the land than those who lived and worked on it). Farm subsidies, beginning with the disastrous New Deal, contorted rational economic decision-making by farmers and induced them instead to enter the Never-Never Land of government subsidies, so that in Iowa — a politically potent state because of its early role in the primaries — the wasteful use of corn to produce ethanol is still sacrosanct. Federal estate taxes, too, have forced families to sell farms which their grandfathers intended to remain in the family forever.
With the United States’ official poverty rate now at a seventeen year high of 15.1 percent — and an actual poverty level that may be substantially higher — the absurdity of President Obama’s advocacy of so-called ‘green jobs’ is increasingly clear.