Insurance giant AIG to pay $165 million in bonuses!!!

I was dumbfounded when I ran across this:

Insurance giant AIG to pay $165 million in bonuses
MARTIN CRUTSINGER, AP Economics Writer
WASHINGTON – American International Group is giving its executives tens of millions of dollars in new bonuses even though it received a taxpayer bailout of more than $170 billion dollars.

AIG is paying out the executive bonuses to meet a Sunday deadline, but the troubled insurance giant has agreed to administration requests to restrain future payments.

The Treasury Department determined that the government did not have the legal authority to block the current payments by the company. AIG declared earlier this month that it had suffered a loss of $61.7 billion for the fourth quarter of last year, the largest corporate loss in history.

There is something fundamentally wrong with this picture. With everything that has taken place so far regarding the economic crisis it was beyond belief that corporate executives from a bailed out company are still getting millions in bonuses while millions of Americans continue to be unemployed! What is even more surprising is that the government did not foresee this!
This is simply unbelievable!!! While unemployed Americans are sleeping in Tent Cities an insurance company is “Rewarding” its executives with tens of millions of dollars, and probably tax payers dollars at that even though they claimed they lost $61.7 BILLION! Simply unbelievable!!!
Its no wonder the American economy is going down the toilet. While those who truly need the help are left hanging in the breeze the “Elite” continue to be rewarded.
Here are a few more related links:

US Treasury objects to AIG bonus payments

Democratic Underground.Com

Excess of Fear?

There are “modestly encouraging signs” on that score, said Lawrence Summers, Obama’s top economic adviser, citing indications that consumer spending had stabilized after taking a dive over the holiday season.

The stimulus plan, Summers said, is already saving thousands of public employee jobs, including as many as 14,000 teachers in New York alone, reports CBS News chief White House correspondent Chip Reid. But he stressed that a full turnaround could still be a long way off, and said it will happen only when Americans overcome their “excess of fear.”

Those are the words of Obama’s top economic adviser Lawrence Summers.

Try telling that to the over 12.5 million Americans ( Current U.S. population U.S. 306,007,05217:47 GMT (EST+5) Mar 14, 2009   )
that have lost their jobs and homes, many of which are now occupying Tent Cities across the nation. Many struggling Americans are now calling tent cities their homes.
Think about that for just a moment and while you are at it take a look at this video:  Unemployed Americans turn to tents (ABC News)

And here is another:

Tent cities spring up in LA

I saw this video and it was exactly like something out of the Grapes of Wrath!!! Chilling to say the least.

Tent cities are popping up just about everywhere in these times. Here is a report Sacramento and Seattle:

Tuesday, March 10, 2009

Tent Cities Sprouting in Sacramento and Seattle

Then there is this headline:

President Voices Optimism For Economic Growth But Says “Difficult Period” Is Not Over

You better believe the Difficult Period is not over. It took years to get here via the Bush administration and I can bet it will take years to get out of it, so if anyone is expecting all that stimulus money to turn this around on a dime they are sadly mistaking.

As far as I have been able to tell I don’t think we have even hit bottom yet! We are still in a slow motion fall down a cliff. No doubt President Obama knows this and is why he is being cautious in what he tells the American Public and in essence the world.

We have to get past the state of denial and admit that we are in fact in a Depression ( let us forget the technicalities ) we are there and the sooner we face it the sooner we can get things moving along and re-structure the system and truly begin to help those that are suffering on a daily basis from an economic crisis that was brought about by greed!

TENT CITIES, THE NEW AMERICA

As each day sees Americans plunge deeper and deeper into an economic crisis with no end in site more and more tent cities continue to pop up across the nation. Here are just a few views:

The New Face of Homelessness in Las Vegas

Tent Cities Popping Up Across U.S.

The Future of America…part 1 – The Fall…

DN! FORECLOSED HOMELESS ARRESTED

Citigroup secures U.S. government lifeline

Well, it seems that the government is throwing out yet another lifeline this time to Citigroup. I begin to wonder how long this will continue before the Government needs a Bailout? Now 21 nations are pledging not to implement Protectionism measures, at least not for the next 12 months.

Protectionism is the economic policy of restraining trade between nations, through methods such as tariffs on imported goods, restrictive quotas, and a variety of other restrictive government regulations designed to discourage imports, and prevent foreign take-over of local markets and companies. This policy is closely aligned with anti-globalization, and contrasts with free trade, where government barriers to trade are kept to a minimum. The term is mostly used in the context of economics, where protectionism refers to policies or doctrines which “protect” businesses and “living wages” within a country by restricting or regulating trade between foreign nations.

Source: Wikipedia

The U.S. seems to be scared that other nations were already planning on this measure which, if implemented could have restricted U.S. exports.  It makes me wonder who in their right mind would want to buy for instance an American made, gas guzzling SUV?

Well, you can check out the latest below and one or two extra pieces that I felt should be here.

NEW YORK (CNN) — The U.S. government outlined a massive rescue package for Citigroup early Monday that would inject another $20 billion into the banking giant, shares of which have plunged in the past week.
The additional $20 billion follows a $25 billion injection into Citigroup earlier this year as part of the $700 billion bank bailout Congress passed in October. And the U.S. Treasury and the Federal Deposit Insurance Corp. will backstop some losses against more than $300 billion in troubled assets.

The hard times are not only in the U.S. Here is a look at New Zealand

Hard times give rise to the ‘nouveaux pauvres’

4:00AM Monday Nov 24, 2008
By Catherine Field

France used to complain about the tackiness of its nouveaux riche.
Now, the concern is for the “nouveaux pauvre”, who have become newly impoverished by losing their job or falling into debt or who struggle to make ends meet on a tiny pension or pay cheque.
Charities are reporting a rise in demand at shelters for the homeless for free meals and parcels of food, as these vulnerable people feel the lash of a worsening economic crisis.

Volunteers of America Greater Sacramento & Northern Nevada

Winter Shelter to open Monday, Nov. 24

The Winter Shelter,located at Cal Expo, operated by Volunteers of America and funded by the Sacramento County Department of Human Assistance (DHA), will open Monday, Nov. 24, 2008.
Able to house as many as 154 men, women and children each night throughout Sacramento’s cold and wet winter months, it will remain open through late March 2009.

The shelter provides clients shelter and two daily meals in a comfortable dorm-style environment. Residents may stay at the shelter for 14 consecutive days with extensions granted on a case-by-case basis. A valid TB clearance is required from each resident within three days of admittance for them to be able to remain at the shelter.

November 22, 2008 — Updated 0355 GMT (1155 HKT)

APEC leaders endorse ban on protectionism

LIMA, Peru (AP) — Leaders from 21 nations that account for half the world’s economy pledged not to implement protectionist measures for the next 12 months — no matter how punishing the global downturn gets.

As if things aren’t bad enough for the homeless, what does New York do?

N.Y. churches ordered not to shelter homeless

By VERENA DOBNIK

NEW YORK — Twenty-two churches have stopped providing shelter to homeless New Yorkers — on city orders.
With temperatures below freezing on Saturday, the churches had to follow a city rule requiring faith-based shelters to be open at least five days a week — or not at all.
Arnold Cohen, president of the Partnership for the Homeless, a nonprofit that serves as a link between city officials and shelters, delivered the news to the churches several weeks ago that they no longer qualify.

Jobless claims jump unexpectedly to 16-year high

November 20, 2008 – 1:09pm
By CHRISTOPHER S. RUGABER
AP Economics Writer

WASHINGTON (AP) – New claims for unemployment benefits jumped last week to a 16-year high, the Labor Department said Thursday, providing more evidence of a rapidly weakening job market expected to get even worse next year.
The government said new applications for jobless benefits rose to a seasonally adjusted 542,000 from a downwardly revised figure of 515,000 in the previous week. That’s much higher than Wall Street economists’ expectations of 505,000, according to a survey by Thomson Reuters.

Family homelessness rising in the United States

Wed Nov 12, 2008 1:07 am EST
By Ross Colvin – Analysis
WASHINGTON (Reuters) – President-elect Barack Obama has vowed to help middle-class U.S. homeowners facing foreclosure, but he has said little about how he will help low-income families made homeless by a worsening economy.
Obama has spoken broadly about boosting affordable housing and restoring public housing subsidies. But with economists forecasting a deep recession in 2009, he may find it hard to find the money to fulfill those promises soon.

This one is not new but I imagine things are a lot worse now.

In hard times, tent cities rise across the country

Since foreclosure mess, homeless advocates report rise in encampments
updated 3:36 p.m. ET, Thurs., Sept. 18, 2008

RENO, Nev. – A few tents cropped up hard by the railroad tracks, pitched by men left with nowhere to go once the emergency winter shelter closed for the summer.
Then others appeared — people who had lost their jobs to the ailing economy, or newcomers who had moved to Reno for work and discovered no one was hiring.

Below is a related link:

NATIONAL COALITION FOR THE HOMELESS

Hoovervilles Make Comeback. Be Afraid!

Hoovervilles, never thought I would hear that term used in our modern times except in a John Steinbeck novel such as the epic novel The Grapes of Wrath, but it was only natural that they should again make their appearance.
As was then in the last depression, it is during hard times that these communal living areas arise. They are usually to be found on the outskirts of towns where the homeless, jobless, migrant workers are ushered. In these times however they have been given another name, just as ominous, Tent Cities. The only difference is the material they are made from, the situation is the same as during the depression.
Due to the current economic crisis there will no doubt be many scattered across the United States as well as in other countries as this situation has become world wide.
Get used to it! More and more articles are making their way to the mainstream medias as more and more of them pop up in more and more towns and no doubt cities as well.
With the credit crunch the way it is and with lenders already charging above 25% interest on cards (yes, Its legal ) and most people struggling to pay the rent no less buy food there is a good likelihood that a Hooverville or Tent City might be the next stop.
To find out more about these places click below.

Hooverville http://en.wikipedia.org/wiki/Hooverville
Tent City http://en.wikipedia.org/wiki/Tent_city
Check out today’s links on this and other situations below:

Hoovervilles Make Comeback While Bushites Try To Reward Perps With “Blank Check”

Like the Hooverviilles of the Great Depression, under the criminal Bush administration, there are now 21st century Hoovervilles aka Bushvilles in our communities.

In hard times, tent cities rise across the country

Since foreclosure mess, homeless advocates report rise in encampments

RENO, Nev. – A few tents cropped up hard by the railroad tracks, pitched by men left with nowhere to go once the emergency winter shelter closed for the summer.
Then others appeared — people who had lost their jobs to the ailing economy, or newcomers who had moved to Reno for work and discovered no one was hiring.

This next one was in October 2006. I can only imagine what the current situation is now.

Living in cars

As rent prices continue to rise, even some fulltime workers can’t afford anyplace to live — except their cars. Lisa McRee reports on one California community that’s trying to help.