THE FLASHLIGHT, September 27 - October 3, 2008
THE FLASHLIGHT
No Peace without Justice, no Justice without the Facts
September 27 – October 3, 2008
Mary K. Matossian, Editor
mary@matossian.net, Apt. 9-M
US Economy
NYTimes 9-27. The Congressional Republicans have strong objections to the bailout package for financial firms proposed by Sec. Henry Paulson. 9-28. The bailout bill ran to 110 pages. The president, the congressional leaders and the two presidential candidates supported it.
CNN, NYTimes. 9-29. However, the mail received by House representatives was overwhelmingly against it. There were critics on both left and right. The bill failed, 228 against, 205 for. Democrats were for it, 140 to 72; Republicans were against, 133 to 65.
9-30. The stock market went down 777 points, the largest single loss in the history of the market. That meant it was down by 7%. $1.2 trillion was lost. Treasury bills were selling at 0.4% interest. A widespread perception in the population was that “Nobody is helping us, and we are expected to help Wall Street.”
CNN 10-1. The Senate bailout called a “rescue plan,” is providing new tax breaks and incentives, and a higher cap on savings deposits, which were now insured at $250,000 instead of $100,000. Rep. Jesse Jackson said that the amended bill was “for the country, not the country clubs.”
CNN 10-2. Stocks down -350: dwindling factory orders, rising unemployment. Widespread losses from retirement accounts.
BBC 10-1. Senate passed the revised “rescue plan” 74-25. CNN 10-2. Senate bill carries huge load of earmarks. McCain voted for it anyway.
Robert Reich’s Explanation for the Economic Crisis
Digest of a speech given 9/24/08, posted on the Internet. Reich is currently a professor at the School for Public Policy, University of California at Berkeley. He was Secretary of Labor under Clinton.
The loss of confidence in sub-prime mortgages was only the trigger for the economic meltdown. The underlying cause was that the population as a whole does not have enough aggregate demand. Rich people have a lot of money, but they already own more than enough for their needs. Others are finding it increasing difficult to provide for their needs, especially to make payments on their mortgages, pay for medical care, and pay for college tuition.
Since the 1970’s, the pay for male workers, corrected for inflation, has declined. First, married women went to work because the pay of their husbands was buying less. Then, all workers worked longer hours. Finally, households began to pile up debts. As a result, spending has started to decline. Inequality has increased to the level of 1928, just before the Crash of 1929. The more the inequality, the less the aggregated demand.
Meanwhile, the federal government, under Republicans and during the last Clinton years, has deregulated the securities markets. It eliminated the distinction between commercial and investment banks. It lowered interest rates, making it possible for banks to lend freely, to take huge risks, and to devise complicated investment vehicles, e.g. derivatives. There has been plenty of cupidity and stupidity.
In order to rebuild family income, it is necessary to reorganize the economy. New and better regulation of markets is needed to prevent fraud. People in danger of losing their homes must be given an opportunity to renegotiate their mortgages. Rebuilding infrastructure is a good way to create more jobs. We should not bail out automobile companies because they have refused to increase their fuel economy standards, making them uncompetitive with foreign manufacturers.
US Politics
The First Presidential Debate. CNN and PBS, 9-26. McCain stressed the importance of eliminating congressional earmarks on bills (pork barrel spending). Obama pointed out that earmarks account for only $18 billion in the national budget, compared to $300 billion for tax cuts for the rich. Obama wants to eliminate loopholes in corporate tax laws. McCain suggested a freeze on spending except for the military, veterans, and entitlement bills. Obama suggested spending could be drastically cut by eliminating the war on Iraq. It is costing 10 billion a month. McCain spoke for alternative energy, but Obama said that McCain has voted 23 alternative energy bills so far.
As for foreign policy, McCain stressed the importance of the “success of the surge,” Obama said the war was a mistake from the beginning: the lesson is to avoid such involvements.
David Gergen judged the debate a tie, but he said that a tie was not good enough for McCain to win the election, because foreign policy, in which he is more experienced, is less important to the voters now than the economy, in which Obama is stronger.
NYTimes 9-28. McCain, who is a lifelong gambler, has many ties to the gambling industry. He has twice been chairman of the Indian Affairs Committee.
CNN 9-29. Sarah Palin often does not understand the question she is asked. Thus, she cannot answer appropriately.
Comedy Central, Steven Colbert. The president of the National Organization for Women endorsed Obama for president.
NYTimes 9-30. During the last ten days Obama gained momentum. Polls show him 9 points ahead in Virginia, 11 points in Minnesota, and 1 point in Missouri. He is competing hard in the key states of Missouri, Florida, and Ohio. In particular, he has improved his standing with voters over 50, who stand to lose most from the current economic crisis.
WPost/ABC poll 10-2. 60% see Paliin as lacking the necessary experience to be President, and 30% are less likely to vote for McCain in the light of this. Of the half of voter concerned about McCain’s age, 85% are skeptical of her. Of Independents, two-thirds are skeptical of her.
CBS/NYTimes poll 10-2. Obama leads by 9 points, 49-40. AP 10-2. Obama leads by 7 points, 48-40.
MSNBC 10-1. Palin’s favorability among women has fallen from 43 to 30 points.
CNN 10-2. McCain pulls out staff from Michigan, conceding the state. CNN poll: Obama leads nationally by +6. He has more money and field people, and is now ahead in states worth 260 electoral votes, ten votes shy of victory.
Israel
NYTimes 9-30. Olmert said that Israel must pull completely out of the West Bank and East Jerusalem. He also said that many Israelis had lost their sense of proportion in relating to Iran.
Russia
CNN 10-1. Tomorrow four Russian warships will pass through the Bosphorus and Dardanelles on the their way across the Mediterranean and the Atlantic to Venezuela.
Humor
Comedy Central, Steven Colbert 9-30. On account of the economic situation in the US, the number of illegal immigrants has declined. Now there are new jobs for Wall Street workers: those who have been picking stocks can now pick strawberries; those who managed hedge funds can now trim hedges.
No Peace without Justice, no Justice without the Facts
September 27 – October 3, 2008
Mary K. Matossian, Editor
mary@matossian.net, Apt. 9-M
US Economy
NYTimes 9-27. The Congressional Republicans have strong objections to the bailout package for financial firms proposed by Sec. Henry Paulson. 9-28. The bailout bill ran to 110 pages. The president, the congressional leaders and the two presidential candidates supported it.
CNN, NYTimes. 9-29. However, the mail received by House representatives was overwhelmingly against it. There were critics on both left and right. The bill failed, 228 against, 205 for. Democrats were for it, 140 to 72; Republicans were against, 133 to 65.
9-30. The stock market went down 777 points, the largest single loss in the history of the market. That meant it was down by 7%. $1.2 trillion was lost. Treasury bills were selling at 0.4% interest. A widespread perception in the population was that “Nobody is helping us, and we are expected to help Wall Street.”
CNN 10-1. The Senate bailout called a “rescue plan,” is providing new tax breaks and incentives, and a higher cap on savings deposits, which were now insured at $250,000 instead of $100,000. Rep. Jesse Jackson said that the amended bill was “for the country, not the country clubs.”
CNN 10-2. Stocks down -350: dwindling factory orders, rising unemployment. Widespread losses from retirement accounts.
BBC 10-1. Senate passed the revised “rescue plan” 74-25. CNN 10-2. Senate bill carries huge load of earmarks. McCain voted for it anyway.
Robert Reich’s Explanation for the Economic Crisis
Digest of a speech given 9/24/08, posted on the Internet. Reich is currently a professor at the School for Public Policy, University of California at Berkeley. He was Secretary of Labor under Clinton.
The loss of confidence in sub-prime mortgages was only the trigger for the economic meltdown. The underlying cause was that the population as a whole does not have enough aggregate demand. Rich people have a lot of money, but they already own more than enough for their needs. Others are finding it increasing difficult to provide for their needs, especially to make payments on their mortgages, pay for medical care, and pay for college tuition.
Since the 1970’s, the pay for male workers, corrected for inflation, has declined. First, married women went to work because the pay of their husbands was buying less. Then, all workers worked longer hours. Finally, households began to pile up debts. As a result, spending has started to decline. Inequality has increased to the level of 1928, just before the Crash of 1929. The more the inequality, the less the aggregated demand.
Meanwhile, the federal government, under Republicans and during the last Clinton years, has deregulated the securities markets. It eliminated the distinction between commercial and investment banks. It lowered interest rates, making it possible for banks to lend freely, to take huge risks, and to devise complicated investment vehicles, e.g. derivatives. There has been plenty of cupidity and stupidity.
In order to rebuild family income, it is necessary to reorganize the economy. New and better regulation of markets is needed to prevent fraud. People in danger of losing their homes must be given an opportunity to renegotiate their mortgages. Rebuilding infrastructure is a good way to create more jobs. We should not bail out automobile companies because they have refused to increase their fuel economy standards, making them uncompetitive with foreign manufacturers.
US Politics
The First Presidential Debate. CNN and PBS, 9-26. McCain stressed the importance of eliminating congressional earmarks on bills (pork barrel spending). Obama pointed out that earmarks account for only $18 billion in the national budget, compared to $300 billion for tax cuts for the rich. Obama wants to eliminate loopholes in corporate tax laws. McCain suggested a freeze on spending except for the military, veterans, and entitlement bills. Obama suggested spending could be drastically cut by eliminating the war on Iraq. It is costing 10 billion a month. McCain spoke for alternative energy, but Obama said that McCain has voted 23 alternative energy bills so far.
As for foreign policy, McCain stressed the importance of the “success of the surge,” Obama said the war was a mistake from the beginning: the lesson is to avoid such involvements.
David Gergen judged the debate a tie, but he said that a tie was not good enough for McCain to win the election, because foreign policy, in which he is more experienced, is less important to the voters now than the economy, in which Obama is stronger.
NYTimes 9-28. McCain, who is a lifelong gambler, has many ties to the gambling industry. He has twice been chairman of the Indian Affairs Committee.
CNN 9-29. Sarah Palin often does not understand the question she is asked. Thus, she cannot answer appropriately.
Comedy Central, Steven Colbert. The president of the National Organization for Women endorsed Obama for president.
NYTimes 9-30. During the last ten days Obama gained momentum. Polls show him 9 points ahead in Virginia, 11 points in Minnesota, and 1 point in Missouri. He is competing hard in the key states of Missouri, Florida, and Ohio. In particular, he has improved his standing with voters over 50, who stand to lose most from the current economic crisis.
WPost/ABC poll 10-2. 60% see Paliin as lacking the necessary experience to be President, and 30% are less likely to vote for McCain in the light of this. Of the half of voter concerned about McCain’s age, 85% are skeptical of her. Of Independents, two-thirds are skeptical of her.
CBS/NYTimes poll 10-2. Obama leads by 9 points, 49-40. AP 10-2. Obama leads by 7 points, 48-40.
MSNBC 10-1. Palin’s favorability among women has fallen from 43 to 30 points.
CNN 10-2. McCain pulls out staff from Michigan, conceding the state. CNN poll: Obama leads nationally by +6. He has more money and field people, and is now ahead in states worth 260 electoral votes, ten votes shy of victory.
Israel
NYTimes 9-30. Olmert said that Israel must pull completely out of the West Bank and East Jerusalem. He also said that many Israelis had lost their sense of proportion in relating to Iran.
Russia
CNN 10-1. Tomorrow four Russian warships will pass through the Bosphorus and Dardanelles on the their way across the Mediterranean and the Atlantic to Venezuela.
Humor
Comedy Central, Steven Colbert 9-30. On account of the economic situation in the US, the number of illegal immigrants has declined. Now there are new jobs for Wall Street workers: those who have been picking stocks can now pick strawberries; those who managed hedge funds can now trim hedges.
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