Where is the Money Going?
Another Bailed Out Bank Fails; Another $4 Million Vanishes
It may not be long before someone in charge of a congressional committee in Washington asks the Treasury Department: “How do you define healthy?” So far in November three banks have collapsed that received federal bailout funds (from the Troubled ... read more
Corporations Avoiding Tax Are Close to Congressional Victory
The Obama administration wants to allow what business-friendly Republicans voted to end years ago—a free pass for American companies that avoid paying taxes by incorporating overseas, but still receive federal contracts. In 2002, Democratic lawmak... read more
Checking Account and ATM Fees on the Rise
Whether it is credit cards or bank accounts, consumers are enduring higher fees from banks. According to a survey conducted by the Federal Reserve, half of the banks polled said they were increasing interest rates and reducing credit lines, even o... read more
Majority in U.S. Want Capitalism Regulated, but Oppose Government Control of Industry
People across the globe are not happy with capitalism these days, favoring more government regulation and ownership of industries, according to a survey conducted by the BBC. Even in the United States, a majority of respondents (53%) expressed sup... read more
First Bailed-Out Bank to be Shut Down by FDIC; Taxpayers Lose Another $1.4 Billion
On top of the $3.2 billion lost earlier this month when CIT filed for bankruptcy, the federal government’s bank rescue effort is now out of another $1.7 billion because of the collapse of United Commercial Bank. The San Francisco-based bank has th... read more
U.S. Taxpayers Lose $2 Billion as CIT Goes Bankrupt
News of CIT’s filing for bankruptcy won’t spoil Christmas for holiday-hungry retailers, but it will amount to an empty stocking for taxpayers. CIT provides short-term financing to small- and mid-sized businesses that manufacture and supply merchan... read more
23 Private College Presidents Earn More Than $1 Million
Executive compensation hasn’t just been going up on Wall Street. The salaries of private university presidents also have leaped this decade, during which the heads of some higher education institutions first eclipsed the $1 million mark. Only fi... read more
Credit Card Companies Lure Customers to Bad Deals Before New Law Bans Them
The nation’s largest banks continue to use credit card policies considered “unfair or deceptive” by the federal government, according to a new report by the Pew Charitable Trust. With many of the provisions of the Credit CARD Act not going into ef... read more
Census Questionnaires to be Recycled to Raise Money for Childcare Facilities
Paper by the hundreds of millions of sheets will be consumed next year as part of the 2010 Census, but it will not be thrown into the garbage once the federal government is done counting everyone. Instead, the 600 million questionnaires produced b... read more
A Spoonful of Socialism Helps Capitalism: Robert S. McElvaine
Ironies abound over the past 80 years of economic prosperity and collapse, according to author and historian Robert S. McElvaine. On the same day (October 29, 1929) that the stock market crashed, the song “Happy Days are Here Again” was recorded b... read more
BlueCross BlueShield Raises Rates, Then Asks Customers to Oppose Health Care Reform
BlueCross BlueShield of North Carolina (BCBSNC) recently sent out a mailer to premium holders asking them to tell U.S. Senator Kay Hagan (D-NC) to oppose the adoption of health care reform that includes a public option program. Such a move would l... read more
IRS to Target Super Rich
Determined to go after wealthy tax cheats, the IRS has created a new enforcement unit that will investigate elaborate tax shelters and other methods used to shield income. The Global High Wealth Industry group will begin by going after a small gro... read more
The Perks of Being a Donor to the Presidential Winner
Like other administrations before it, the Obama White House has been accused of providing special access to big-dollar donors. According to an investigation by The Washington Times, the White House is seeking from individuals either pledges to giv... read more
Banks Continue to Punish Credit Card Holders Who Pay On Time
In an effort to beat new banking regulations going into effect in February, some credit card companies are rushing to impose new fees on customers—who pay on time. Citibank is jacking up interest rates as high as 30% on accounts in good standing, ... read more
Want To Balance the Federal Budget? Just Triple the Tax Rate
It would be painful for everyone, but there is a way to eliminate the more than $1 trillion deficit in the current federal budget. Experts at the Tax Foundation concluded that by tripling the income tax for all earners, the $1.5 trillion hole in f... read more
Want a Good Investment? Forget Stocks; Buy Bonds
Ten years ago stock market enthusiasts were so confident that some proclaimed stocks to be a safer investment than bonds. But a comparison reveals quite the opposite. Despite whatever gains investors enjoyed over the last decade, most stock market... read more