Clinton Insider Gets Commodities Post, Automakers Get $17.4 Billion

Government and Economy Obama Names Clinton Insider to Commodities PostGary Gensler, a former Clinton Treasury official, has been picked by President-elect Obama to regulate the same financial instruments he defended in the nineties, instruments that helped to create the subprime mortgage crisis. Stabilizing the Automotive Industry The text of Treasury Secretary Paulson's statement on stabilizing the automotive industry. President Bush: Automakers to get $17.4BCiting danger to the national economy, the Bush administration came to the resc... [Read Full Article]


$350 Billion in the Hole and Record Unemployment: Time for Something Different

Did I miss something? I mean, wasn’t all this money supposed to help the economy, protect jobs, ease foreclosures and clean up the sub-prime mortgage mess? Wasn’t all this spending supposed to build confidence in the financial system and break the logjam in credit? Yet here we are, $350 billion into the bailout—and that is not counting the billions that had already been spent to bailout, stimulate, rescue (or whatever other verb you wish to insert)—the economy and so far, here is what we have to show for it: The highest unemployment in 34 years and more to come A whipsawing stock market in a downward spiral The credit logjam is still entrenched The threat of deflation Problems finding venture capital for start-ups The auto industry begging for a piece of the pie Companies changing their businesses to qualify for a bailout Little consumer or investor confidence Really ticked-off taxpaye... [Read Full Article]


Small Business Brief for 12/01

Politics and Government Bush: "I'm Sorry" for the Economic CrisisWASHINGTON (AP) - President George W. Bush expressed remorse that the global financial crisis has cost jobs and harmed retirement accounts and said he'll back more government intervention if needed to ease the recession. Bernanke: Better Non-bank Failure Framework NecessaryFederal Reserve Chairman Ben Bernanke said Monday that further interest-rate cuts are "certainly feasible," but he warned there are limits to how much such action would revive the economy. Paulson: Other Rescue Program... [Read Full Article]


Small Business Brief for 11/24

Politics and Government Obama Nominates Geithner for Treasury CHICAGO (AP) - President-elect Barack Obama has chosen Timothy Geithner to be his treasury secretary. Geithner is president of the New York Federal Reserve Bank, and has been working with the Bush administration on ways to solve the credit crisis. Obama Aims to Create 2.5 Million Jobs to Abate Crisis President-elect Barack Obama said he aims to save or create 2.5 million jobs in a two-year plan to stimulate an economy facing a “crisis of historic proportions.” [Read Full Article]


Small Business Brief for 11/18

Politics and Government What Change Really Means to Small Business? Many small business owners are skeptical of President-elect Obama's tax proposals and the long-term direction he wants to take with the economy. Paulson, Bernanke Defend $700 Billion BailoutWASHINGTON (AP) - Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke waged a stout defense of their management of a $700 billion financial bailout on Capitol Hill Tuesday, just one week after the administration abandoned the original strategy behind the rescue. Bernanke: Borrowing Conditions Still Far From Normal Federal R... [Read Full Article]


Small Business Brief for 11/14

Politics and Government Bush Warns Against Abandoning Capitalism President George W. Bush met with leaders of the world's biggest economies, urging them not to abandon free- market capitalism as they seek an escape from the financial crisis, calling it the “best system” for delivering growth. Paulson's Credibility Drops Again as Asset-Purchase Plan is Abandoned Like many others who have served in President George W. Bush's administration -- among them former Secretary of State Colin Powell and former Treasury chief Paul O'Neill – Henry Paulson will leave office casting a smaller shadow than when he arrived. [Read Full Article]


Bankruptcy vs. Bailout: Which is Really Better for the Taxpayer

Where does it end? Honestly, where do we draw the line? I have come to terms with not being a bank holding company, thereby being denied a bite of the $700 billion bailout. I can live with that. Like most Americans, including every small business owner I know, I can live with having to stand on my own two feet. I can live with being responsible for my decisions and my actions and I can live with the consequences of those actions. I am not saying it is always easy and I am not saying that a little help now and then when things are tough isn't appreciated. All I am saying is that this is what it means to be a responsible adult. That is what my parents taught me and that is what I am teaching to my kids. Pity our society is not echoing such lessons. Take, for example, the Big Three Automakers. Since Bush's Treasury Secretary, working closely with the Pelosi/Reid/Dodd/Frank Congress opened the money s... [Read Full Article]


Wrapping-up the Current Economic Crisis

While some in the mainstream media are blithely writing the obituary for free market capitalism, something odd is happening: The free market is actually working, not in the way anyone wanted, but it is working; and that is in spite of the best efforts of Bush, Paulson, Bernanke, Pelosi, Reid, Dodd, Frank and all of the other dubious bit players and functionaries that have been spouting off about the need to do something about the crisis. That is the thing about the free market. It is like gravity. It is always on. There is another odd thing happening as well: With the exception of the greedy Wall Street CEOs that everyone involved in the scandal as well as those covering it can agree are evil, no one really wants to identify anyone else responsible for this mess to task. Instead, we hear a great deal about fixing the problem and moving on. Move on...hmmm...that sounds awfully familiar.... Welcome to the Recession After the $700 billion Wall Street bailout was ra... [Read Full Article]