Archive for February, 2010
Making Money Through
Feb 15th
No, it's not a conspiracy. Goldman Sachs and its minions are not plotting to cripple the government. But it is remarkable how our political system freezes shut just when we need to make serious changes to our economic system.
Earth to government: our people are out of work, but we're letting bankers waltz off with $150 billion in bonuses (based on bailout money) as a reward for crashing our economy? Do something about it!
It's obvious to all but the ideologues on CNBC that that financial markets can't police themselves. We tried that over the past three decades and the system crashed. It's also obvious that our financial sector is composed of large institutions that are too big to fail. Those giants have the ability to gamble with other people's money and not suffer the consequences of failure. (Actually, they not only gamble with OPM, but they now are gambling with taxpayer money. How sweet it is!)
The emerging pattern is maddening. The financial sector gambled and won big during the housing bubble by creating, selling and trading a slew of new securities that supposedly removed risk from risky debt. It didn't work but it was the most profitable enterprise in the history of Wall Street. The bubble burst, but the bankers and traders, of course, got to keep their phony bubble profits. Worse still, we the taxpayers, through the bailouts are paying off the bad bets. Instead of going belly up, the largest financial entities are miraculous making record profits and bonuses while still taking advantage of trillions of dollars of federal loans and asset guarantees.
Meanwhile, there are more than 29 million Americans without jobs or who have been forced into part-time work. (The real unemployment rate is about 18.4 percent) Tens of millions are underwater in their homes or losing them. Pensions and retirement accounts are suffering. But the bankers who caused the crash have the nerve to give themselves a record $150 billion in bonuses?
To be sure the American public is outraged and screaming for reforms. But what kind? The Tea Party, the fastest growing political movement in decades, hates big government, hates the bailouts and the stimulus, and detests collusion between government and Wall Street. But its solution is to attack government. It has no way to change Wall Street, except by letting the market take care of it. Good luck. In the end, Tea Partyites would rather see the $150 billion of our money go to the failed bankers than to see a windfall profits tax on Wall Street's undeserved bonuses.
This outrage translated into an upset victory in Massachusetts which took away the Democrat super-majority in the Senate. More Republican victories in the fall are likely to follow, so that we can expect political gridlock for years to come.
So what happens to serious Wall Street reforms during all of this? First off, let's remind ourselves that to date no reforms have taken place. The best time to have acted was when the bankers were on their knees last fall begging for funds. Now Wall Street is using our money to lobby against anything that might cut into their money-machine.
There will be happy talk of bipartisan reform but gridlock will stop any government regulations that might interfere with the next record bonus pool. Banks won't be busted up into smaller units. There won't be a return to Glass-Steagall. The most profitable custom derivatives will remain unregulated. There will be no serious taxes on these unwarranted and outrageous bonuses. And the Financial Consumer Protection Agency is likely to be stillborn.
Also, this gridlock will prevent any serious efforts to put Americans back to work again. The Republicans will block large stimulus bills in the name of deficit reduction (while blocking health care reforms that would lower deficits.) They will prevent direct government hiring in the name of free markets. And let's face it, there are more than enough Blue Dog Democrats who will go along and gladly. Once again, we'll be relying on the miracle of the markets and trickle down from the super-wealthy. It could take a decade or more before we get near full-employment again.
We thought we were living in a country based on democratic capitalism. But the combination of political gridlock and our too big to fail financial casinos should give us pause. We now have a new pattern: Wall Street can make billions by creating bubbles. When they burst, we bail them out. They then can make billions while on government welfare, and lobby to prevent any and all serious reforms. Meanwhile unemployment is crippling millions of Americans — unemployment that is directly caused by Wall Street. And unemployment is further exacerbated because the financial sector now finds that it can make more money by playing the markets than by lending to the real economy. Rather than instituting serious, lasting reforms like we did during the New Deal, our political system freezes shut. (And this all is happening even before the Supreme Court decided it would be OK for corporations to directly buy politicians.)
That's not capitalism. Welcome to the new billionaire bailout society. And if that doesn't get you angry, please send me your meds.
Les Leopold is the author of The Looting of America: How Wall Street's Game of Fantasy Finance destroyed our Jobs, Pensions and Prosperity, and What We Can Do About It Chelsea Green Publishing, June 2009.
Richard Francis was born Oct. 31, 1920, as the younger son of a horse breeder in Tenby, South Wales. During World War II he joined the Royal Air Force in 1940 and was stationed in the Egyptian desert before being commissioned as a bomber pilot in 1943, flying Spitfires, Wellingtons and Lancasters.
A few years later he returned to his father's stables and became a steeplechase trainer's assistant. Later, as a professional jockey, he won 345 of the more than 2,300 races he rode in between 1948 and 1957, taking the title of Champion Jockey for the 1953-54 season.
His most famous moment in racing came just a few months before he retired, when, riding for Queen Elizabeth, his horse collapsed inexplicably within sight of certain victory in the 1956 Grand National.
Despite his many successes, he had expressed regret at never winning the prestigious Grand National.
“The first one I rode in I was second, and the last one I rode in I won everywhere except the last 25 yards. I would love the opportunity of having another go, but it's a young man's job,” he said once during an interview with the British Broadcasting Corp.
Francis' first book, published in 1957, was his autobiography, titled “The Sport of Queens.” His first novel, “Dead Cert,” came out in 1962 and was followed by a new title every year since.
He also worked for years as a racing correspondent for Britain's Sunday Express, and retired in the British Caribbean territory of the Cayman Islands.
Francis is survived by his two sons as well as five grandchildren and one great-grandson, Cairns said. A small funeral will be held at Francis' home on Grand Cayman, followed by a memorial service in London, she said, but could not say when they would be held.
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personal finance programs
Feb 10th
Maybe you run a small business or you're creating a new personal budget, and you need some finance software, but you're reluctant to spend the money. Are there programs that can meet your needs whilst remaining free? The answer is yes, and it lies in wonderful programs oft referred to as 'opensource.' Opensource software is often as sophisticated as 'professional' software-if not more-and free to download and use. Below is a list of the best opensource finance software.
1. GNUCash – this is a double entry book-keeping finance program, best used for personal book keeping. It comes complete with a mortgage and loan repayment druid, OFX and QIF import, HBCI support, transaction-import matching support, (Limited) multi-user SQL support, multi-currency transaction handling, stock/mutual Fund portfolios, and online stock & mutual fund quotes; it also comes with small business accounting features if you are running a small business and can't afford a high end program. Mac OS X only
2. JCash – “JCash is a full featured, Java based money management application. It will provide all of the standard checking and expense account management functions, planning and budgeting capabilities and synchronization with the PCash PalmOS application” http://sourceforge.net/projects/jcash/
3. PayThyme – PayThyme is a payroll software package that is sophisticated and can easily keep track of any and all payrolls you may have. Useful for both the small and large business owner.
4. phpOrganisation – This is an SQL and PHP web-based organization system for small and medium sized businesses. It can be used to easily organization one or more accounts and can be accessed from anywhere via the web.
5. QuantLib – A full finance library, with many, many features. An excerpt from their website says “QuantLib offers tools that are useful both for practical implementation and for advanced modeling, with features such as market conventions, yield curve models, solvers, PDEs, Monte Carlo (low-discrepancy included), exotic options, VAR, and so on.”
7. QuotesViewer – Free Euronet Stock Browser software. “QuotesViewer is a graphical tool giving you easy and fast access to all quotes of shares on the Euronext stock exchange. Quotes information can be searched and sorted on different criteria, ie. market, ISIN code, mnemonic, name, price, volume. You can add your favourite stocks to a watchlist.” http://quotesviewer.sourceforge.net/
8. Grisbi – Grisbi is much like GNUCash, listed first in this article, save that it is simpler and with less features. Ideal if you do not need all the extra features; ie, personal book-keeping, not small business. It comes with some of the features offered by GNUCash, including: Multi-account and multi-currency handling, amongst others.
This is just a small list of the best opensource finance software I could find. There are several others I did not install and test, either because they weren't compatible with a PC, or they seemed very similar to one already listed here. If you have any you think should be added to this list, feel free to leave me a note in the comments box.
Stabroek <b>News</b> – Workers protest planned Air Jamaica sale to T&T
Daily <b>News</b>, Sports, Business, Entertainment and more from Guyana.
AP Articles Return To Google <b>News</b>
It appears they have kissed and made up… for now.
Old <b>News</b>: A New Boss for Universal Music in 2011 | Peter Kafka <b>…</b>
This one counts as <b>news</b> in a technical sense, only: The people who own the world's biggest music company have finally announced plans to bring in new management. Vivendi says it will install Lucian Grainge as head of its Universal Music …
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Stabroek <b>News</b> – Workers protest planned Air Jamaica sale to T&T
Daily <b>News</b>, Sports, Business, Entertainment and more from Guyana.
AP Articles Return To Google <b>News</b>
It appears they have kissed and made up… for now.
Old <b>News</b>: A New Boss for Universal Music in 2011 | Peter Kafka <b>…</b>
This one counts as <b>news</b> in a technical sense, only: The people who own the world's biggest music company have finally announced plans to bring in new management. Vivendi says it will install Lucian Grainge as head of its Universal Music …
Stabroek <b>News</b> – Workers protest planned Air Jamaica sale to T&T
Daily <b>News</b>, Sports, Business, Entertainment and more from Guyana.
AP Articles Return To Google <b>News</b>
It appears they have kissed and made up… for now.
Old <b>News</b>: A New Boss for Universal Music in 2011 | Peter Kafka <b>…</b>
This one counts as <b>news</b> in a technical sense, only: The people who own the world's biggest music company have finally announced plans to bring in new management. Vivendi says it will install Lucian Grainge as head of its Universal Music …
personal finance planning
Feb 8th
Shara Says:
January 12th, 2010 at 9:04 am
For those of you who want to know what extra payments on your loan will do go to bankrate.com. Go to their calculator section (at the top above the tabs) and look for ‘amortization calculator’. It is great to see what theoretical loans would cost, but if you know how to use it you can apply it to any existing loan as well. If you want to know how to input an existing loan just ask and I’ll walk you through it. You need the balance, interest rate, and payment or remaining time on the loan.
@Max
We DO have a program to help poor people buy homes. It’s called the FHA (Federal Housing Administration). It is administered by Fannie Mae and Freddie Mac, which are two quasi-government agencies. And recent events have shown us why they don’t work.
First let me explain, FHA loans are typically set at a price a little bit above the going rate for “great credit” people. But they are, sometimes significantly, lower than those for which most people qualify. They have significantly lower down payment and up front cost requirements and can bend some rules (such as allowing sellers to pay for closing costs, or using a third party’s money for down payment). This is a problem for two reasons: Without requiring a down payment the risk of a house being worth less than is owed is a significant risk, and people who can’t manage enough financial discipline to scrape together a down payment often don’t have the financial discipline to faithfully make their house payments.
In an ideal world people who are upside down on their mortgages would suck it up and keep paying as long as they could afford it. The reality is that many people would rather walk away, hand over the keys, and take the hit to their credit that bankruptcy will cause. The problem with a poor person as a credit risk is the same reason you want to help them: they have nothing to take away. Therefore you have no leverage to sue them and make them pay you what they owe you. I am a landlord and one thing I have learned is that people really want to do the right thing, but they have an infinite number of ways of justifying to themselves that something dishonest is okay. I had one lady argue that I shouldn’t have evicted her because her HUSBAND was the one who wasn’t paying the rent. I used to think that kind of convoluted logic was crazy, but I have found most people are more than capable of twisting ‘right’ to magically be whatever they want at the time.
Second, I know more than a handful of poor people. Most of the people I know who are perpetually poor are so because they make really bad choices. Sad to say, many of them do drugs that precludes them from being successful. The middle class (both upper and lower) people I know who are scraping by and have no money to buy a house are doing so because they can’t manage money. These are the people who break a leg and have to take a week off without pay and suddenly can’t make their bills. Not because they don’t make enough, but because there is nothing there left at the end of the month in case of emergency. If it’s there it’s spent.
I don’t want any of these people as homeowners. You can’t know until you own a house what a big responsibility it is. Everyone I know who has bought a house has had a learning curve much like a new parent, of “This is MY responsibility?!” and “I had no idea how much this would cost!” Even if you plan for it, you don’t understand until the bill’s in front of you.
As far as poor people having housing, there are a number of housing assistance programs available, the most prominent being section 8. Section 8 is a program that pays a percentage of the rent for a poor person, depending on the size of the family and how poor they are. I have talked to tenants that were 50% covered, a neighbor of mine was 100% covered, and I know people on the waiting list. The waiting list in typically quite long because there are a lot of people who want help paying their bills.
And this brings us to the crux of the matter, which is how much assistance to offer. The reason many of us are anti-socialist is because while it is great to want everyone to be happy, healthy, well fed, educated, and have a nice house, these things cost money. It costs me nothing to allow you free speech, but if you want food someone has to produce it and that person must be compensated. And if the compensation is coming from me instead of you what is your motivation to produce anything for yourself? You know the saying about giving a man a fish versus teaching a man to fish?
I am with Kevin that there are things that our government is designed to do: national defense, freeways, international treaties. And things that our federal government is NOT designed to do. Housing assistance is one of them. But that doesn’t mean I think no one should get an assistance, I just don’t think it is the job of the federal government, because a bureaucracy of that size has a really hard time administering such benefits, programs of that size are just asking to be cesspools of waste, fraud, and abuse, and as the concerns lately about INFLATION (remember that word?
) show, the federal government can print their own money if they get in trouble.
I think there are people who deserve housing assistance: The severely mentally retarded, people with mental illness, people with severe physical limitations, etc. But if you can’t BUY a house on your own then you shouldn’t be doing it. You either don’t make enough to survive the ups and downs of the market, or you aren’t mature enough to own a house. In this case there is a GREAT alternative: renting.
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Steve Marmel: The Good <b>News</b> About Sarah Palin's Hypocritically Bad <b>…</b>
Never before has there been somebody so clearly hypocritical, so obviously agenda-based, and so unabashedly opportunistic in her demagoguery and indignation as Sarah Palin.
Stocks in the <b>News</b>: CIT, Hasbro, CVS Caremark – DailyFinance
The following is a round-up of <b>news</b> likely to affect stock prices today: CIT Group Inc. (CIT), one of the nation's largest lenders to small and mid-sized businesses, appointed former Merrill Lynch CEO John Thain as chairman and CEO.
Brian Williams Jokes About NBC's Late Night Problems, Slow Jams <b>…</b>
NBC Nightly <b>News</b> anchor Brian Williams appeared on Late Night with Jimmy Fallon Friday for an interview segment as well as a cameo with The Roots and Fallon during their regular Slow Jam The <b>News</b> sketch. Brilliams talked budget in song, …
Making Money Ideas
Feb 5th
While there are certainly plenty of valid reasons to fear Big Government, it is often the beneficial aspects of what a powerful federal government can provide that sends the mainstream media’s cast of Fox super villains into a frenzy. Universal access to health care, social programs for distressed communities, rights to an education, environmental protection and even basic food and water standards have been discussed in somber tones by Glenn Beck as the stepping stones to a Socialist government hell bent on destroying the American Dream.
I watch in awe as Sean Hannity follows at least thirty mentions of the need for small government with the statement that we should not fetter our CIA and military with respect to battling terrorists. As the history of all Big Governments has illustrated in the starkest of terms, nothing feeds the power of the State more than perpetual war. Sean Hannity has absolute trust in the growing Big Government he fears when said government is blowing up towns via remote control airplanes, killing scores of innocents on nothing more than a hunch that a terrorist might have prayed in the local mosque. Sean Hannity sees no reason to mess about with such Pollyanna bullshit as trials or adherence to the Geneva Convention when fighting this amorphous war that was never formally declared.
The same government that is completely untrustworthy on Health Care is miraculously trustworthy on imprisoning those who mean to do us harm. Simply requesting a modicum of transparency on issues relating to the incarceration and murder of potential enemies of the State is tantamount to being weak on defense or even a traitor. Lucky for us, our government never arrests the wrong man or woman. If the government somehow kills a few thousand innocents along the way, that’s just the cost of freedom, the cost of making Big Government even bigger.
Bill O’Reilly gets flustered when the idea that we should not torture people comes up. He sighs heavily when there is a suggestion that there should be proof before we execute someone. He trusts our government unequivocally in such matters. It is only the big governance of Reid and Pelosi that he questions. There is more of a possibility that our government, which has listened in on our cell phone calls and will soon be looking at most of us naked before we board an airplane, would incarcerate and murder us for our opinions rather than carrying out the supposed Death Panels of the monstrous Health Care plans. While I am not a proponent of the bullshit insurance company giveaways of Harry Reid or the slightly less bullshitty but still very crappy plan of Nancy Pelosi, at least they are devoting some energy into the concept that Big Government can accomplish more than murder.
Sarah Palin laughs at the suggestion of any sort of deliberation before we escalate our various wars. She trusts our lightning-fast precision government to make the decisions of life and death, your way, right away.
The right-wingers, who supported the repeal of McCain-Feingold, believe that corporations must be guaranteed the rights of the individual, as long as they are not Gay Corporations. Nothing threatens the sanctity of marriage more than a dreaded Gay Corporate Merger or George Soros with his hand on John McCain’s backside.
Republicans and Tea Baggers alike can sleep well knowing that Scott Brown also has absolute trust in our Big Government when it comes to imprisonment, torture and murder. Scott Brown’s drunken rambling victory speech a couple of weeks ago drew big applause when he spoke of the fact that there is simply no need to protect the rights of terrorists. Again, the problem here is, as patently obvious as it should be, is that without giving suspects any rights, there is no mechanism to assess if they are guilty or innocent. This undermines all of our rights.
To my friends in the corporate media, I am all for reducing the size of government, right after they arrest the lot of you on suspicion of being terrorists. Isn’t “Hannity” the Arabic word for sewer waste?
The initiatives amount to a package of tax credits, spending expansions and new mandates on employers to encourage retirement savings by workers. Most of them will be included in Obama's budget for the fiscal year starting Oct. 1, and they will require approval from Congress. Obama will release that budget Feb. 1.
The president's latest rollout of ideas served as a preview of his prime-time State of the Union address. The economic elements of that speech will also cover Obama's plans to boost job creation and reduce swelling budget deficits — areas of concern to the public.
Obama's address will outline his second-year agenda across a spectrum of issues, including tighter rules on Wall Street behavior and a push for financial discipline in Washington. He also is expected to touch on the issue of gays in the military.
In an interview Monday, Obama defended his agenda and said he would not support only smaller issues that avoid controversy. “I will not slow down in terms going after the big problems,” he told ABC News.
Among the president's economic ideas:
– Nearly doubling the tax credit that families making under $85,000 can receive for child care costs, with some help for families earning up to $115,000, too.
– Capping the size of periodic federal college loan repayments at 10 percent of borrowers' discretionary income to make payments more affordable.
– Increasing by $1.6 billion the money pumped into a federal fund to help working parents pay for child care, covering an estimated 235,000 additional children.
– Requiring employers who don't offer 401(k) retirement plans to offer direct-deposit IRAs for their employees, with exemptions for the smallest firms.
– Spending more than $100 million to help people care for their elderly parents and get support for themselves as well.
The White House maintained that its imperative still is to create jobs. Unemployment remains in double digits, and the economy is the public's top concern. Yet Obama said that squeezed families need help in other ways, too: paying for child care, helping out aging parents, saving for retirement, paying off college debt.
What matters ultimately to people, Obama said, is “whether they see some progress in their own lives. So we're going to keep fighting to rebuild our economy so that hard work is once again rewarded, wages and incomes are once again rising, the middle class is once again growing.”
Less clear was how much the programs would cost or where the money would come from.
Officials deferred comment until the release of the budget.
Obama, whose poll numbers are off, is trying to sharpen his economic message in a way that shows people he is on their side. White House officials say they know people have been turned off by the long, messy fight for health insurance reform. Plus, there's a perception that families have gotten far less help than big banks.
The economy is growing, but not fast enough to bring down widespread joblessness. The unemployment rate is at 10 percent and most economists say it could take until at least 2015 for it to return to more normal levels.
The plans Obama set forth came from the yearlong work of a task force, led by Vice President Joe Biden, that was charged with helping the middle class.
“We're talking about dignity. We're talking about security,” Biden said. “We're talking about knowing your pension is safe, your health insurance is reliable, your elderly parents and your children are going to be cared for, your neighborhood is safe.”
Obama's initiatives also include expanding and simplifying a tax credit that matches retirement savings, and making 401(k) rules easier to understand.
On the matter of gays in the military, Obama has vowed to lift the ban on gays serving openly, and several lawmakers support a repeal of the law. But some senior military advisers and members of Congress have urged the president not to shake up the status quo at a time of two wars.
Sen. Carl Levin, chairman of the Armed Services Committee, said he had planned to convene a hearing on the issue in January, but that the Obama administration asked him to hold off until the president's national address.
“We were told by the Pentagon that they expected the president to say something in the State of the Union on it,” Levin said.
Levin, who favors repealing the law, said he does not know what Obama will say. He said he plans to hold hearings in February and would like to hear testimony from Defense Secretary Robert Gates and Chairman of the Joint Chiefs of Staff Gen. Mike Mullen.
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While there are certainly plenty of valid reasons to fear Big Government, it is often the beneficial aspects of what a powerful federal government can provide that sends the mainstream media’s cast of Fox super villains into a frenzy. Universal access to health care, social programs for distressed communities, rights to an education, environmental protection and even basic food and water standards have been discussed in somber tones by Glenn Beck as the stepping stones to a Socialist government hell bent on destroying the American Dream.
I watch in awe as Sean Hannity follows at least thirty mentions of the need for small government with the statement that we should not fetter our CIA and military with respect to battling terrorists. As the history of all Big Governments has illustrated in the starkest of terms, nothing feeds the power of the State more than perpetual war. Sean Hannity has absolute trust in the growing Big Government he fears when said government is blowing up towns via remote control airplanes, killing scores of innocents on nothing more than a hunch that a terrorist might have prayed in the local mosque. Sean Hannity sees no reason to mess about with such Pollyanna bullshit as trials or adherence to the Geneva Convention when fighting this amorphous war that was never formally declared.
The same government that is completely untrustworthy on Health Care is miraculously trustworthy on imprisoning those who mean to do us harm. Simply requesting a modicum of transparency on issues relating to the incarceration and murder of potential enemies of the State is tantamount to being weak on defense or even a traitor. Lucky for us, our government never arrests the wrong man or woman. If the government somehow kills a few thousand innocents along the way, that’s just the cost of freedom, the cost of making Big Government even bigger.
Bill O’Reilly gets flustered when the idea that we should not torture people comes up. He sighs heavily when there is a suggestion that there should be proof before we execute someone. He trusts our government unequivocally in such matters. It is only the big governance of Reid and Pelosi that he questions. There is more of a possibility that our government, which has listened in on our cell phone calls and will soon be looking at most of us naked before we board an airplane, would incarcerate and murder us for our opinions rather than carrying out the supposed Death Panels of the monstrous Health Care plans. While I am not a proponent of the bullshit insurance company giveaways of Harry Reid or the slightly less bullshitty but still very crappy plan of Nancy Pelosi, at least they are devoting some energy into the concept that Big Government can accomplish more than murder.
Sarah Palin laughs at the suggestion of any sort of deliberation before we escalate our various wars. She trusts our lightning-fast precision government to make the decisions of life and death, your way, right away.
The right-wingers, who supported the repeal of McCain-Feingold, believe that corporations must be guaranteed the rights of the individual, as long as they are not Gay Corporations. Nothing threatens the sanctity of marriage more than a dreaded Gay Corporate Merger or George Soros with his hand on John McCain’s backside.
Republicans and Tea Baggers alike can sleep well knowing that Scott Brown also has absolute trust in our Big Government when it comes to imprisonment, torture and murder. Scott Brown’s drunken rambling victory speech a couple of weeks ago drew big applause when he spoke of the fact that there is simply no need to protect the rights of terrorists. Again, the problem here is, as patently obvious as it should be, is that without giving suspects any rights, there is no mechanism to assess if they are guilty or innocent. This undermines all of our rights.
To my friends in the corporate media, I am all for reducing the size of government, right after they arrest the lot of you on suspicion of being terrorists. Isn’t “Hannity” the Arabic word for sewer waste?
The initiatives amount to a package of tax credits, spending expansions and new mandates on employers to encourage retirement savings by workers. Most of them will be included in Obama's budget for the fiscal year starting Oct. 1, and they will require approval from Congress. Obama will release that budget Feb. 1.
The president's latest rollout of ideas served as a preview of his prime-time State of the Union address. The economic elements of that speech will also cover Obama's plans to boost job creation and reduce swelling budget deficits — areas of concern to the public.
Obama's address will outline his second-year agenda across a spectrum of issues, including tighter rules on Wall Street behavior and a push for financial discipline in Washington. He also is expected to touch on the issue of gays in the military.
In an interview Monday, Obama defended his agenda and said he would not support only smaller issues that avoid controversy. “I will not slow down in terms going after the big problems,” he told ABC News.
Among the president's economic ideas:
– Nearly doubling the tax credit that families making under $85,000 can receive for child care costs, with some help for families earning up to $115,000, too.
– Capping the size of periodic federal college loan repayments at 10 percent of borrowers' discretionary income to make payments more affordable.
– Increasing by $1.6 billion the money pumped into a federal fund to help working parents pay for child care, covering an estimated 235,000 additional children.
– Requiring employers who don't offer 401(k) retirement plans to offer direct-deposit IRAs for their employees, with exemptions for the smallest firms.
– Spending more than $100 million to help people care for their elderly parents and get support for themselves as well.
The White House maintained that its imperative still is to create jobs. Unemployment remains in double digits, and the economy is the public's top concern. Yet Obama said that squeezed families need help in other ways, too: paying for child care, helping out aging parents, saving for retirement, paying off college debt.
What matters ultimately to people, Obama said, is “whether they see some progress in their own lives. So we're going to keep fighting to rebuild our economy so that hard work is once again rewarded, wages and incomes are once again rising, the middle class is once again growing.”
Less clear was how much the programs would cost or where the money would come from.
Officials deferred comment until the release of the budget.
Obama, whose poll numbers are off, is trying to sharpen his economic message in a way that shows people he is on their side. White House officials say they know people have been turned off by the long, messy fight for health insurance reform. Plus, there's a perception that families have gotten far less help than big banks.
The economy is growing, but not fast enough to bring down widespread joblessness. The unemployment rate is at 10 percent and most economists say it could take until at least 2015 for it to return to more normal levels.
The plans Obama set forth came from the yearlong work of a task force, led by Vice President Joe Biden, that was charged with helping the middle class.
“We're talking about dignity. We're talking about security,” Biden said. “We're talking about knowing your pension is safe, your health insurance is reliable, your elderly parents and your children are going to be cared for, your neighborhood is safe.”
Obama's initiatives also include expanding and simplifying a tax credit that matches retirement savings, and making 401(k) rules easier to understand.
On the matter of gays in the military, Obama has vowed to lift the ban on gays serving openly, and several lawmakers support a repeal of the law. But some senior military advisers and members of Congress have urged the president not to shake up the status quo at a time of two wars.
Sen. Carl Levin, chairman of the Armed Services Committee, said he had planned to convene a hearing on the issue in January, but that the Obama administration asked him to hold off until the president's national address.
“We were told by the Pentagon that they expected the president to say something in the State of the Union on it,” Levin said.
Levin, who favors repealing the law, said he does not know what Obama will say. He said he plans to hold hearings in February and would like to hear testimony from Defense Secretary Robert Gates and Chairman of the Joint Chiefs of Staff Gen. Mike Mullen.
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