"When I Look At The United States I Cannot Imagine How They Can Solve Their Problems"



Senate rejects Obama-backed deficit task force


"doubling down" at a casino:
Greece Sells 8 Billion Euros in Notes After Offering Premium


Deficits As Far as the Eye Can See



California inmate release plan begins


FDIC chief expects 2010 bank failures to exceed 2009 Monday, January 25, 2010, 8:32pm EST Modified: Monday, January 25, 2010, 8:34pm
Reacting to President Barack Obama’s recent proposal to impose limits on the size and scope of banks, Federal Deposit Insurance Corp. Chair Sheila Bair said during a visit to Miami Monday that institutions should wall off their non-bank financial activities from their insured deposits.
On Thursday, Obama said he wants to prevent financial institutions that own a bank from also owning, investing in or sponsoring a hedge fund, private equity fund or proprietary trading operations that are not related to serving their customers. The president also said that large financial firms could not increase their national market share of assets other than insured deposits beyond a certain point.
Just before speaking to the Florida Banker’s Association on Monday night, Bair said she hasn’t seen enough details of Obama’s proposal to say whether she supports it or not. She said financial institutions could do a better job of walling of their FDIC-insured banks from some of their more risky financial activities so that the banks aren’t hurt by losses in those areas.
“The bulk of these problems actually occurred outside the insured deposit banks. Just look at Lehman Brothers and AIG,” Bair said.
She added that large institutions should have a self-liquidation plan filed with regulators in case they need to be wound down.
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***Note the starting of aid to states.***

Senate Democrats Said to Consider $80 Billion Jobs Legislation By Brian Faler
Jan. 26 (Bloomberg) — Lawmakers are set to consider a jobs-stimulus package totaling about $80 billion that would provide tax credits to small and medium-sized businesses that hire workers, a Democratic senator said.
The plan, to be presented today to Senate Democrats, would include aid to state governments to prevent layoffs and additional funding for infrastructure projects, said the senator, who asked not be identified. The package also will likely include energy-related provisions such as incentives to weatherize homes, a Senate aide said.
Democratic leaders hope to have the measure on the Senate floor by the second week in February, the aide said, speaking on condition of anonymity.
The proposal is smaller than an economic aid package approved last month by the House, in part because lawmakers plan to approve extensions in unemployment benefits costing tens of billions as part of separate legislation.
The House plan, costing more than $150 billion, eschewed small business tax cuts in favor of spending $53 billion to extend unemployment benefits including so-called COBRA subsidies to help the jobless buy health insurance.
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