U.S. economy plummets

U.S. economy plummets | Reuters:

"WASHINGTON (Reuters) - The U.S. economy suffered its deepest contraction since early 1982 in the fourth quarter, shrinking at a much worse-than-expected 6.2 percent annual rate as exports plunged and consumers slashed spending.

"The dour data and a move by the government that could boost its equity stake in Citigroup to as much as 36 percent hammered U.S. stocks to 12-year lows. The Dow Jones industrial average ended down 119.15 points at 7,052.93. Government bond prices fell, bruised by record issuance this week."

Obama Proposes New Wireless Spectrum Fee

Obama Proposes New Wireless Spectrum Fee:

"Under President Obama's budget submitted to lawmakers, wireless carriers such as Verizon, AT&T and Sprint would be hit with huge fees for the right to hold a spectrum license. The fee per carrier would be $50 million this year and eventually rise to $500 million per carrier, per year within a decade. Users fear carriers will add the new fee to phone bills."

Citigroup Reaches Aid Deal With Government

ABC News: Citigroup Reaches Aid Deal With Government:

"The U.S. government will exchange up to $25 billion in emergency bailout money it provided Citigroup Inc. for as much as a 36 percent equity stake in the struggling bank, greatly increasing the risks to taxpayers as voter unhappiness about the broader bailout program rises."

Obama Shifts Course with $3.5 Trillion Budget

ABC News: Obama Shifts Course with $3.5 Trillion Budget:

"President Obama's $3.5 trillion budget proposal, the largest in history, presents a dramatic break from policy and a shift in governmental priorities. The administration is attempting to redirect vast sums of money from businesses and wealthier individuals to those with lower incomes and enact ambitious and costly new programs for energy, education and health care.
Largest budget proposal in U.S. history would reform tax policies.

'I don't think that we can continue on our current course,' Obama said in his remarks about the budget submitted to Congress this morning. 'I work for the American people, and I'm determined to bring the change that the people voted for last November. And that means cutting what we don't need, to pay for what we do.'"

Obama Raises your Cell Phone Rates

Proposed Budget Includes New Spectrum Fees (Phone Scoop):

"The outline 2010 federal budget proposed today by the Obama administration includes significantly higher annual fees for holders of radio spectrum licenses, including cell phone companies. The fees would increase from $50 million/year now to up to $550 million/year over the course of the next decade. These fees are in addition the up-front license fees paid in auctions to reserve exclusive use of the spectrum. The current proposal is only an outline and a starting point; a more detailed budget proposal will be released in the spring. The goal of the increased fees is to help halve the budget deficit by 2013."

Commission Urges Taxing Drivers More - WSJ.com

Commission Urges Taxing Drivers More - WSJ.com: "

WASHINGTON -- The government should make it a lot more expensive for Americans to drive and should install devices in cars that levy a fee for every mile traveled, according to a report being released Thursday by a congressionally chartered commission.

The report lands in the middle of debate over how to pay for roads and other transportation projects and recommends an array of potentially controversial increases in the cost of driving.

Among the proposals: raising the 18.4 cents-a-gallon federal gasoline tax by 10 cents, or 54%, and then indexing future increases to inflation. The study estimates that would cost American households about $9 more a month. The plan also calls for adding 15 cents a gallon to the 24.4 cents-a-gallon tax on diesel fuel."

Obama seeks $200 billion for war spending - CNN.com

Obama seeks $200 billion for war spending - CNN.com:

"WASHINGTON (CNN) -- President Barack Obama will ask Congress for more than $200 billion to fund U.S. war efforts for the next year and a half, according to defense officials.

The request will be for $75.5 billion for 2009 to cover the cost of sending more troops to Afghanistan this year and an additional $130 billion for the rest of fiscal 2009, according to the sources.

War spending for 2010 will be part of the president's overall defense funding request, which is expected to be announced Thursday.

The money will be in addition to $534 billion for the U.S. Defense Department's other expenditures, which the president is expected to request from Congress.

Congress gave the Pentagon $65.9 billion for the first half of fiscal 2009."

House OKs $410B-spending bill

Washington Times - House OKs $410B-spending bill:

"WASHINGTON (AP) -- The Democratic-controlled House approved $410 billion legislation Wednesday that boosted domestic programs, bristled with earmarks and chipped away at policies left behind by the Bush administration.

The vote was 245-178, largely along party lines.

Republicans assailed the measure as too costly -- particularly on the heels of a $787 billion stimulus bill that President Barack Obama signed last week. But Democrats jabbed back."

$318B in new taxes:Fair?

Obama Outlines Health-Reform Plan Funded by Taxes, Spending Cuts - WSJ.com:

"The tax increases would raise an estimated $318 billion over 10 years by reducing the value of such longstanding deductions as mortgage interest and charitable contributions for people in the highest tax brackets. Households paying income taxes at the 33% and 35% rates can currently claim deductions at those rates. Under the Obama proposal, they could deduct only 28% of the value of those payments."

$634B: Obama Lays Out Ambitious Agenda

ABC News: Obama Lays Out Ambitious Agenda:

"When President Obama submits his ambitious first budget outline for 2010 Thursday, it will include a 10-year, $634 billion health care reserve fund that will pay for reforms to the health care system."

U.S. may up stake in Citi: source | Reuters

U.S. may up stake in Citi: source | Reuters:

"A report in the Wall Street Journal said taxpayers could own as much as 40 percent of the ailing lender's common stock."

"Higher Education: Are You Sick Yet?

One of the American dreams has been to either send your child to college, or attend it yourself. It has to do with improving your own stead, and making the next generation better than you. But what about your money enriching the already filthy rich?

To put a particularly disgusting underscore on the colleges to which middle and lower-class families pay their hard-earned money, it has been revealed what some folks make in pay who having nothing to do with actually educating your kid. For example, how about a college coach who makes over 4 million bucks a year? Having been a college teacher myself, I can assure you not much of your money goes toward hiring good instructors. Which then speaks volumes about the worthlessness of a college education.

Take note of the money spent on college sports. Nice if you're into that, but if your son or daughter is just trying to get, say, a good medical education, it's something else. Colleges have taken it on themselves to provide the NFL and NBA with a "minor league," training athletes for their prime gigs in pro sports - athletes who then receive the same degree as your kid at the end of 4 years, having not really earned it at all, but rather "working' for the school. It fits my definition of corruption, all on your educational dime.

High-paid officials: It's not just college presidents - USATODAY.com

Now, an analysis of tax filings of more than 4,000 other employees at 600 private colleges shows that presidents' earnings are relatively modest.

For example, the head football coach at the University of Southern California and a Columbia University dermatologist each earned more than $4 million in 2007, making them the highest paid employees at private colleges. The presidents, meanwhile, earned about $900,000 and $1.4 million, respectively.

The salaries of employees other than presidents were released today by the Chronicle of Higher Education, which has published a report on presidents' compensation each fall for more than 15 years. It is expanding its scope to other employees, it says, because their compensation "contributes to the broader national discussion about appropriate levels of pay for leaders in all sectors," including higher education.

"There are other people getting pretty big paychecks" besides presidents, says Chronicle editor Jeffrey Selingo.

How will the $7.2B allotted for broadband stimulus be spent?

How will the $7.2B allotted for broadband stimulus be spent?:

February 20, 2009 (PC World)

In the American Recovery and Reinvestment Act of 2009, recently enacted by Congress, many details regarding the allocation of funds for high-tech projects remain blurry.

And They Criticized Bush

America's Deficit-Spending Spree Raises Alarms - First 100 Days of Presidency - Politics FOXNews.com

Not since World War II has America spent so much money so quickly.

In the last two years, the United States has run up deficits that amount to a combined $2.5 trillion dollars -- almost a fourth of all the debt the nation has taken on in its entire history.

"It's really staggering to think we're going to have trillion-dollar deficits for the next several years," Rep. Adam Schiff, D-Calif., told FOX News.

The deficit for January alone totaled $83.8 billion, worse than the $78 billion economists expected. The government had run a surplus of $17.8 billion in January 2008.

The huge deterioration in the government's finances reflects the recession, which has cut into tax revenues, and the large amounts of money being spent from the $700 billion finance rescue plan that Congress passed in October. About three-fourths of the deficit increase was related to spending on the bailout program.

With eight months left in the current budget year, the deficit already has surpassed the deficit for 2008, an imbalance of $454.8 billion that is the full-year record.

The Congressional Budget Office has forecast that the deficit for the current budget year will hit $1.2 trillion, but that estimate does not include the cost of President Obama's $787 billion economic stimulus plan, which he signed this week.

Many private economists are forecasting that the budget deficit for the current year will hit $1.6 trillion.

"These are the first trillion-dollar deficits the world has ever seen," Brian Reidl, a budget analyst at Heritage Foundation, told FOX News.

Obama vows to spend stimulus money wisely

UPDATE 1-Obama vows to spend stimulus money wisely | Markets | US Markets | Reuters:

"WASHINGTON, Feb 20 (Reuters) - U.S. President Barack Obama vowed strict oversight on Friday of his $787 billion stimulus plan, pushing back against Republicans who have labeled the centerpiece of his economic agenda fiscally irresponsible.

Obama said he would name a team of managers to ensure that billions of dollars slated for infrastructure projects would be spent wisely."

Yeah, right. And how much will those managers cost, including the taxes they won't pay?

Washington Times - Markets seesaw as economy worsens

Washington Times - Markets seesaw as economy worsens:

"Wall Street seesawed Wednesday as gloomy government reports showed a worsening economy and President Obama unveiled a highly complicated $75 billion plan to help up to 9 million families avoid foreclosures on their homes.

The markets did not seem impressed with a housing plan that eventually could total $275 billion, and the Dow Jones Industrial Average at one point fell below its Nov. 20 post-meltdown low of 7,552.29."

Spending the stimulus won't be easy

Washington Times - Spending the stimulus won't be easy:

Mr. Walker also said too much of the stimulus bill is backloaded to later years, but that there's an odd silver lining to that because it gives agencies more time to ramp up their spending.

"If you look at this bill on one hand, not enough of it is truly stimulus, meaning it's not going to hit the economy quickly enough. That's bad news," he said. "On the other hand it means they've got more time....

"The federal bureaucracy is now being asked to absorb hundreds of billions of dollars, and the potential for waste, fraud, abuse and mismanagement is something we must be diligent in preventing and addressing," said Rep. Darrell Issa of California, the top Republican on the House Committee on Oversight and Government Reform...

The White House said Mr. Obama may not be done spending. Press secretary Robert Gibbs would not rule out another spending bill if the economy continues to founder, though he said there are no specific plans at this point.

Obama Foreclosure Prevention Plan Reaches $75 Billion - First 100 Days of Presidency - Politics FOXNews.com

Obama Foreclosure Prevention Plan Reaches $75 Billion - First 100 Days of Presidency - Politics FOXNews.com:

"President Obama will roll out a $75 billion plan Wednesday that his administration hopes will keep as many as 9 million Americans in their homes.

The announcement in Phoenix comes a day after he signed a $787 billion economic rescue package that combines spending and tax cuts aimed at saving and creating millions of jobs."