Monday, 22 July 2013 08:04
'Last week, Detroit declared bankruptcy, becoming the largest city in U.S. history to take such drastic action in the face of financial insolvency. A declaration of bankruptcy isn't what most people think it is, though: it's not just a statement of "we're broke!" It's actually a way for the city to clear its slate of all financial obligations and not pay the retirees it owes.
What are the largest financial obligations the city facing? Pensions. $3.5 billion worth of pensions, to be exact. Yes, Detroit owes former government employees -- teachers, firefighters, cops and more -- a whopping $3.5 billion in current and future payments. Except Detroit doesn't have $3.5 billion to pay the pensions.'
Monday, 22 July 2013 08:00
'This July, Bank of America was expecting to report an earnings increase of 32% from last year. The Washington Business Journal declared the bank among the top 10 “most improved brands” of the year. Bank of America is the second-largest bank in the United States following JPMorgan Chase.
So why does this bank deserve such an “improved” reputation? Perhaps it's worth looking at a little of the bank’s record for some clarity.
During the first year of the global financial crisis, which the big banks helped to create and which they profited enormously from, the government stepped in to bail out Bank of America. They rewarded the bank $20 billion for its massive financial crimes, as well as a special guarantee for nearly $100 billion of potential losses on the balance sheets of Merrill Lynch, which Bank of America acquired during the crisis.'
Monday, 22 July 2013 07:57
'Senate immigration bill SB 744may be a savvy way to divide the Republican Party in the coming elections, or a small step forward at the cost of massive militarization of the border. Already many immigrant rights activists are in revolt against the now advancing compromise.
The political stakes are clear enough. President Barack Obama and the Democrats are pushing for a comprehensive immigration reform, and are willing to accept virtually any amendments to win Republican support. For the Democrats, the question is whether they have a bottom line and where it is drawn. On the Republican side, big business and traditional conservatives want cheap labor and a better brand name with Latino voters, but the Tea Party bloc is totally opposed to citizenship rights for immigrants because, frankly, that would dilute white voting strength nationally and in several key states.'
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