A year after the onset of the greatest financial crisis since the Great Depression, details continue to emerge of the sordid secret deals cut by the Federal Reserve in bailing out certain financial giants. The very latest, courtesy of Bloomberg News, alleges that the Federal Reserve Bank of New York, under the leadership of Timothy Geithner (now U.S. Treasury Secretary), engineered a sweetheart deal to pay off holders of AIG debt at par, rather than the 40 cents on the dollar that AIG negotiators had been pushing for.
Fed Chairman Ben Bernanke is growing impatient. With the financial crisis continuing to drag on, Bernanke appeared again before Congress yesterday to urge lawmakers to pass legislation aimed at preventing future economic crises of the severity of the ongoing Great Recessioan.
The government has announced that Social Security recipients will not receive a cost-of-living adjustment, or COLA, in 2010. This is because the COLA is tied to price inflation, which according to the government has been negative so far in 2009.
The national unemployment rate hit 9.8 percent in September, the highest it has been since June 1983. A total of 15.1 million Americans are now out of work, and 7.2 million jobs have been eliminated during the recession, the Labor Department said.