Goldman Sachs Corporation is facing a new wave of charges of not looking out for the interests of its clients this week, as one corporate vice president published a resignation March 14 letter in the New York Times and the company agreed March 13 to pay a $7 million fine to the Commodity Futures Trading Commission. Goldman Sachs stock took a hit on the two-pronged attack March 14, losing $2.2 billion in stock value with a three-percent plunge, though the stock recovered significantly the next day.
As part of its Tribal Energy Program, the U.S. Department of Energy is providing $6.5 million to various American Indian tribes for “clean energy” projects — everything from solar and wind power to fireplaces and wood-burning stoves. This being government, however, the majority of the money will not be spent on actual projects but on studies to determine if projects are even feasible.
The report from The New York Times on Wednesday about the foreclosure settlement reached between five big banks and 49 states’ attorneys general made it appear that justice was being served. The $26 billion to be paid out to some 2 million homeowners (former and current) “could provide relief” to them under the terms of the settlement. It would also remove a cloud of uncertainty from the banks’ liability and might help in “halting the housing market’s downward slide.”
San Francisco, as even casual observers of the political scene know, is one of the most liberal cities in the country. Many of its citizens fear big business — but not big government — and speak lovingly of locally owned small businesses. Its Mayor, Edwin M. Lee, recently announced a $1.5-million fund to assist small businesses.
Freddie Mac has again entered the spotlight as a new report claims the government-sponsored enterprise betrayed American homeowners after placing multibillion-dollar bets that will pay off if homeowners remain shackled by costly mortgages with interest rates well above current rates. In a scathing new revelation of their investigation, National Public Radio (NPR) and ProPublica, an independent investigative news service, uncovered multibillion-dollar investments made by Freddie in late 2010 that will pay off only if homeowners remain trapped in high-interest mortgages.
Central banks are often justified on the basis that a complex, modern economy requires top-down management by experts. These people, it is said, can study the markets and then “fine-tune” the economy to keep it humming along.
On the morning of August 3, 2011, armed agents of the U.S. government and the Los Angeles County Sheriff’s Office conducted a raid on a small private club in southern California, seizing the substances being sold therein and arresting three individuals on felony charges. It was the second raid on the club in two years and the culmination of a yearlong investigation by 10 local, state, and federal agencies that, according to the Los Angeles Times, “used high-tech video equipment hidden on a utility pole for round-the-clock surveillance and undercover agents to make covert buys.”
Obama’s Labor Secretary, Hilda Solis, has created new regulations for farming safety that would bar children under 16 from much of the work of agriculture. The rules would keep them from “agricultural work with animals and in pesticide handling, timber operations, manure pits and storage bins” or from handling most types of “power-driven equipment” as well as being involved in the “cultivation, harvesting and curing of tobacco.” Solis explained, “Children employed in agriculture are some of the most vulnerable workers in America. Ensuring their welfare is a priority of the department, and this proposal is another element of our comprehensive approach.”
As January ushers in a new year, San Francisco will become the first U.S. city to instate a minimum wage rate of more than $10 an hour. Climbing from $9.92 to $10.24, the city’s new labor mandate will hike the city’s minimum wage more than $2 above the California minimum wage and nearly $3 more than the rate set by the federal government.
Americans are quickly getting poorer as the much-touted economic “recovery” remains elusive. Household wealth plummeted by more than four percent from July to September according to a report released last week by the Federal Reserve, marking the steepest drop since 2008 and the second quarterly decline in a row. That represents an average loss of about $21,000 per household in just three months.