Tag: bailout

I thought I’d do something different today for comparison’s sake.  With everyone sufficiently indignant at our banking system, our government’s response, and at the abuses within the Bailout, I thought I might provide some needed contrast.  The details which follow first are the literal steps one has no choice but to follow to attain food stamps in Washington, DC.  I pulled certain phrases off of an advocacy website PDF here but the construction is largely mine.

How to Obtain Food Stamps in the District of Columbia

1.  Sit in line at the Food Stamp office nearest you and, while waiting, fill out a 12 page form.

OR

Print the form and fill out all 12 pages.

2.  To make sure you do not try to cheat the system, you will first be required to reveal your

a) Household income

b) Cash present on hand

c) Rent and utility costs

3.   You will then be asked to provide

a) where you work (if you are, in fact, employed)

b) your employer’s name and telephone number

c) when you started working for them

d) how much your paycheck is before taxes

e) and how often you get paid

4.  If you or anyone else in your household makes some degree of income, repeat step 3

5.  If you have a bank account, you are required to prove it by providing a bank statement

6.  If you own anything else besides your home, you are required to state that you do.

7.  If you have stocks and/or bonds, please respond in in the affirmative.

8.  Did you sell, trade, or give away anything more than $1,000 in the past three (3) years?  If so, please mark “yes” and attach a description to this form.

9.  Provide the exact dollar amount of that which you pay in rent.  Don’t forget to leave out utilities if not included in rent and whether or not you pay for air-conditioning and heating costs separate from your rent.

10.  Mail form.  Wait approximately three and a half weeks for a reply, only to be told after four separate phone calls spent futilely trying to speak to an actual person that, due to a severe backlog in unprocessed claims, it may be up to a month and a half before your paperwork is processed.

OR

Drop off form at Food Stamps office.  Speak to case worker after waiting for several hours.  Turn in form.  Wait approximately three and a half weeks for a reply, only to be after four separate phone calls futilely trying to speak to an actual person that, due to a severe backlog in unprocessed claims, it may be up to a month and a half before your paperwork is processed.

11.  Wait

12.  Keep waiting.

13.  Finally receive form in mail informing of date to meet with caseworker to determine whether Food Stamps will be granted.  Date is eight business days from when one received notice.

14.  Collect necessary documentation to prove identity.  This includes:

a) Photo ID/Drivers’ license

b) Recent rent receipt, copy of lease, mortgage payment, or landlord’s name and phone number.

c) Proof of income, last three pay stubs, VA benefits, educational scholarships, grants or loans, unemployment payments, or your employer’s name and phone number.

d)  Proof of Housing Expense:   Recent rent or mortgage payment receipts.  This includes receipts of all recent utility bill(s): phone, gas, electric, and water.  All of these documents must have your address printed on them.

e) Bank statements:  If one has an account at a bank or credit union, bring a  recent bank statement or bankbook. Also if you have any other type of financial account (for example, a CD) be sure to bring that, too.

f) Social Security Card

g) Proof of any Assets:  Bring proof of ownership for buildings, land, policies, burial arrangements or plots, and/or other property (not your home that you stay in) you reported in your application.

15.  After all hoops have been jumped through and forms brought to the attention and signed off by the appropriate party, wait for judgment about food stamps.

16.  Ten days later, judgment is granted.  Realize that $100.12 per month means approximately one week’s worth of groceries for one person.  Shrug and say to self that every little bit matters.

17.  Attend mandatory EBT Card (Food Stamp) card training before receiving.  Training lasts approximately 15 to 20 minutes.

18.  Proceed directly to grocery store.



How to Obtain Bailout Money in the District of Columbia



1.  Be a CEO of a large financial institute.

2.  State that you are nearly bankrupt, but too big to fail.

3.  Collect emergency funds.

The Full Story Of How Tim Geithner Secretly Bailed Out Wall Street And Screwed The Taxpayer Last Fall

Henry Blodget,

Oct. 28, 2009,

The Business Insider

When the historians finally finish sorting through the appalling decisions that have been made in the past two years, this one will probably be at the top of the heap.

Last fall, as AIG began to realize how screwed it was, it started negotiating with the counterparties to all the credit default swaps it had written.  One of the AIG’s goals was to persuade these counterparties–including Goldman Sachs–to accept buyouts discounts of as much as $0.40 cents on the dollar.

These sorts of negotiations are exactly what should happen when a company gets in trouble.  It goes to its creditors and says, look, we can’t pay you everything, so here’s your choice: Take something, or take your chances in banktuptcy court.  (And, in this case, this wouldn’t have been much of a choice, given the standing of CDS holders in the liquidation line).

But then Tim Geithner, head of the New York Fed, stepped in. 

A few weeks later, the counterparties–all of whom voluntarily did business with AIG and understood the risks–were bailed out at par: 100 cents on the dollar. 

Thus began the most nauseating giveaway in the history of the country.

Bloomberg has the whole sickening story:

By Sept. 16, 2008, AIG, once the world’s largest insurer, was running out of cash, and the U.S. government stepped in with a rescue plan. The Federal Reserve Bank of New York, the regional Fed office with special responsibility for Wall Street [run by Tim Geithner], opened an $85 billion credit line for New York-based AIG. That bought it 77.9 percent of AIG and effective control of the insurer.

The government’s commitment to AIG through credit facilities and investments would eventually add up to $182.3 billion.

Beginning late in the week of Nov. 3, the New York Fed, led by President Timothy Geithner, took over negotiations with the banks from AIG, together with the Treasury Department and Chairman Ben S. Bernanke’s Federal Reserve. Geithner’s team circulated a draft term sheet outlining how the New York Fed wanted to deal with the swaps — insurance-like contracts that backed soured collateralized-debt obligations…

Part of a sentence in the document was crossed out. It contained a blank space that was intended to show the amount of the haircut the banks would take, according to people who saw the term sheet. After less than a week of private negotiations with the banks, the New York Fed instructed AIG to pay them par, or 100 cents on the dollar. The content of its deliberations has never been made public…

The New York Fed’s decision to pay the banks in full cost AIG — and thus American taxpayers — at least $13 billion. That’s 40 percent of the $32.5 billion AIG paid to retire the swaps. Under the agreement, the government and its taxpayers became owners of the dubious CDOs, whose face value was $62 billion and for which AIG paid the market price of $29.6 billion. The CDOs were shunted into a Fed-run entity called Maiden Lane III.

Read the whole story (and then marvel about how Tim Geithner is now Treasury Secretary) >

There is a clash of titan forces taking place in the American Economy right now. It’s a tale as old as Greed itself.  

It is the tale of the “Powers that Be” running into the watchful eyes of the “World that Should Be”.

The story involves how corporate Robber Barons avoid the watchful glare of the citizen Muckrakers.  

It is the tale of Deception and Greed vs Honesty and Fairness …

I’m just back from seeing Michael Moore’s new movie, “Capitalism – A Love Story”.

It was moving, funny, and educational, all rolled into one. It made me feel both, proud and sad, to be an American. … but it’s recommended viewing if you still want to take OUR Country back, from the Powers that Be.

There are many lessons to be learned from the film — But the one that struck me, the one I’m motivated to write about now —

Is the Lesson of Plutonomy …

We have been told that Wall Street Investment firms are “Too big to Fail” — But that does NOT Mean they are “Too Big for Accountability”!

The Question boils down to,

Who Does the Congress Represent anyways —

The American People, or the Global Bankers (and their Lobbyists) ?

And Will the People bother to care about Wall Street Regulation this time around?

Since I’m assuming we will, here’s some essential background on the Wall Street Meltdown mess:

Credit Default Swap (CDS)

What Does Credit Default Swap (CDS) Mean?

A swap designed to transfer the credit exposure of fixed income products between parties.

http://www.investopedia.com/te…

CDS’s are an easy way to transfer Credit Risk — Check!

Way back in March of 2009, Rachel explained the “Highway Robbery” which happened on Wall Street, using a few simple word-pictures. (ie. simple Frames).  These perhaps deserve a quick review …

Rachel Maddow – Cops and Robbers

Link to Rachel’s very humorous  Clip

Great Framing Rachel! … I love it, when Progressive Talkers, make learning FUN! The simpler the Word-Pictures, the better the Frame!

“Is our childrens learning?” as George W. used to ask.  

Could be, … Maybe we just needed to “Turn the Page” …

Elizabeth Warren was appointed chair of a newly created Congressional Oversight Panel (COP), which is charged with keeping tabs on the $700 billion bailout of the financial sector – including Troubled Assets Relief Program (TARP).

Warren however, has had some “Trouble” getting straight forward answers … as she explained to the Boston Globe:

Writing in the the current print issue of Rolling Stone, journalist Matt Taibbi exposes Goldman Sachs, the “world’s most powerful investment bank”, for the “great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money” that it truly is.

In “The Great American Bubble Machine”, Taibbi outlines how Goldman Sachs has either influenced, shaped, or simply created five market bubbles since 1929 and how now, the bankers are planning to use the greenhouse gas emissions cap-and-trade scheme as their penultimate bubble.

While I do not agree with some of the conclusions he makes, there is enough in his 9,700 word essay that can make the blood boil.

“The first thing you need to know about Goldman Sachs is that it’s everywhere,” he begins. But, “any attempt to construct a narrative around all the former Goldmanites in influential positions quickly becomes an absurd and pointless exercise, like trying to make a list of everything.”