Top Compensated CEO's have Highest Rate of Lay-Offs and Outsource Jobs Overseas

The companies that Lay Off the most Americans also pay their CEOs the highest compensation and many of them outsource off-shore (those highlighted in Red). They are all Global Companies entrenched in the Global Economy.

The 10 Highest-Paid CEOs Who Laid Off The Most Workers: Institute For Policy Studies
A grim fact of the recession is that it pays to lay people off. The CEOs who laid off the most employees during the recession are also the CEOs who took home the biggest pay checks, according to a study released last week.

CEOs of the 50 U.S. firms that slashed the most jobs between November 2008 and April 2010 took in 42 percent more than the average CEO at an S&P 500 firm, according to the 17th annual Executive Excess study by the Institute for Policy Studies, a progressive Washington think tank.

The study (PDF) also found that 36 of the 50 layoff leaders "announced their mass layoffs at a time of positive earnings reports," suggesting a trend of "squeezing workers to boost profits and maintain high CEO pay." The 10 "highest-paid CEO layoff leaders" ranked in the report include the CEO of Hewlett-Packard, Mark Hurd, who earned $24.2 million in 2009 as the company laid off 6,400 workers and Walmart CEO Michael Duke, who earned $19.2 million as the company laid off 13,350 workers. No Wall Street banks were included in this list, but three banks -- Citigroup, Bank Of America and JP Morgan -- showed up on the study's list of the 50 firms that laid off the most employees.

Overall, the study found that executive pay remains astronomically high compared to previous decades. "After adjusting for inflation, CEO pay in 2009 more than doubled the CEO pay average for the decade of the 1990s, more than quadrupled the CEO pay average for the 1980s, and ran approximately eight times the CEO average for all the decades of the mid-20th century," the study says. Currently, CEOs of major U.S. companies average 263 times the average compensation of American workers, the study claims.

Global Economic Crisis Caused by White, Blue Eyed Bankers! says Brazilian President

As world leaders gather next week at the G20 Summit, the President of Brazil proclaims the blame for the Global Economic Crisis lies on the shoulders of "White, Blue-Eyed Bankers!"

'Blue-eyed bankers' to blame for crash, Lula tells Brown

White, blue-eyed bankers are entirely to blame for the world financial crisis that has ended up hitting black and indigenous people disproportionately, the president of Brazil declared .

"This Global Economic crisis was caused by no black man or woman or by no indigenous person or by no poor person," said the President of Brazil. In an outspoken intervention as Gordon Brown stood alongside him, Luiz Inacio "Lula" da Silva pledged to make next week's G20 summit "spicy" as he accused the rich of forcing the poor into greater hardship.

"This crisis was fostered and boosted by irrational behaviour of some people that are white, blue-eyed. Before the crisis they looked like they knew everything about economics, and they have demonstrated they know nothing about economics."

The remarks by Lula, a former trade union leader who had an impoverished upbringing in the poor north-east of Brazil, enlivened Brown's five-day trip to North and South America. This is designed to pave the way for a global agreement on how to tackle the global downturn at next week's G20 summit in London, to be chaired by Brown.

Yikes! My Dora is Changing and Growing Up! Mattell introduces "Tween Dora!"

My beautiful Dora is changing. I love Dora the Explorer.
It was just back in 1999 when Dora the Explorer hit the airwaves. The little Latino girl and her little friend Boots went on many adventures, taking kids along for the ride. While doing so, they taught them about computers and threw in a little Spanish lesson too.
My long time viewers know I have a doll collection which I started a number of years ago, around 1996. How did I start my doll collection? In the nineties, I was walking through Wal-Mart and saw a lonely doll on a sales cart. She was a Mexican Barbie doll. It was obvious she had been on the shelf for a long, long time. She looked very dusty and the box was extremely tattered. I bought her, took her home and I loved her. Afterall, she was the very first doll in my doll collection.

After that, I started collecting a variety of Latino dolls including Dora dolls. This was one of my first. Then Princess Dora was next on my list. I continued to collect Barbies, including Spanish Teacher Barbie and mother/daughter a Latina Barbie set. I never sought out looking for these dolls. Over the years, if I saw something I liked, I bought them, until I had a collection.

Soon, I started collecting a variety of Dora dolls, including the miniature Doras. They were so cute.

In the new millenium, the Dora dolls started evolving. Some of the dolls didn't look like Dora anymore.

Everyone who knows me knows I collect Dora. So when I received this one for Christmas, I was perplexed. Dora? I don't know ya! I like my regular Dora. Next, I received one of these. Then I started wondering what was going on. I like my regular Dora! I don't want a change. If you ask me, Dora is Dora! What is so confusing.

Imagine my surprise when this morning I read Mattel is coming out with a new "Tween Dora!" One with Sex Appeal! My gosh! She is supposed to be a teenager, filled with a million new marketing concepts. I understand Sales, Marketing and demographics, but, what on earth will become of my beautiful Dora??

At this point! All I can say is, let's hope my Beautiful Dora does not end up looking like this!

Reference:

Dora Grows Up!

U.S./Mex Drug Cartels Reign; Mexico/U.S Presidents Partner to Fight; Mexican Residents say, "We Need Gringitos Back!"

Mexico's President Felipe Calderon has staked his reputation on a nationwide army-led crackdown against Drug Cartels. More than 3,000 Mexican troops arrived this weekend in Juárez as part of what authorities have described as a frontal assault on crime. The new soldiers, which are in addition to the 2,000 already assigned to Joint Operation Chihuahua, were deployed after a meeting last week among high-level Mexican government officials in Juárez. More troops, including intelligence units, are expected to arrive in the next few days.
President Barack Obama and head of Homeland Security, Janet Napolitano, strongly support President Calderon's War on Drugs. Afterall, the U.S. continues to be the Number 1 user of illegal drugs in the World. Attorney General Eric Holder mounted one of the biggest assaults against powerful drug cartels recently. More than 750 people were arrested across the U.S. with tons of cocaine and marijuana seized and the distribution of drugs disrupted through a series of raids and arrests.
The rising tide of Mexican drug cartel-related violence along American's southern border and beyond is, considered by some, a state of war. The U.S. drug cartels are partnering with Mexican Cartels. The U.S. cartels continue to send 2,000 illegal weapons to the Mexican Cartels a day! Mexico's gun laws are relatively strict. Civilians can't own military-style rifles or high-powered pistols and need an O.K. from the military to buy weapons of any kind. U.S. laws, in contrast, are porous. And with almost 7,000 licensed gun dealers along the border, including many operating from homes, trailers or tiny shops in out-of-the-way towns and remote strip malls, tracking sales of guns destined for Mexican gangs is a needle-in-a-haystack sort of problem.
It is commendable that the government of Mexico and President Calderon have taken up the fight against the cartels with a vigor and courage foreign to his predecessors, who were content to exploit the American appetite for drugs and look the other way at their own military and political corruption. But it is obvious Calderon cannot do it alone. He needs a full court crackdown, with the support of the American Government who will arrest the don't-give-a-damn gun-dealers on the U.S. side of the border who are arming Mexican drug terrorists now threatening U.S. communities.
It is clear we ALL should support both President Calderon and President Obama in their charge to stop the Drug Cartels on both sides of the border.
Mexican Economy: "We Need Gringitos Back"
Meanwhile, the local Mexican residents, innocent in all that has been happening, are feeling the pain of the lost tourist revenue. "We need the gringitos to come back," said Maria Guadalupe Santiago Gutierrez. "The violence is not aimed at them, and if you are not involved in the drug business, nothing will happen to you. Please put that in the paper." Santiago used to sell her handmade arts and crafts at the Juárez mercado. Since the tourist trade faded, she has set up shop on the sidewalk within feet of the Paso del Norte Bridge, closer to where visitors might venture. On a good day, she sells five bracelets and charms at $1 each. "People in El Paso don't understand that if they don't come buy things from us, we don't eat," Santiago said.
References:
Mexico troops move in to retake warring border city
U.S. Moves Against Top Mexican Drug Cartel
Recent editorials from New Jersey newspapers
Mexico's military influx leaves a city on edge

NCLR Engaged Experts in Housing and Financial Fields to Identify Ways to Restore Latino Financial Security

Today, the NCLR hosted a conference call engaging a number of experts in the housing and financial fields to discuss restoring paths to financial security for Latinos.
Key call participants included: Henry Cisneros, Chairman and CEO, American CityVista; Janis Bowdler, Associate Director, Wealth-Building Policy Project, National Council of La Raza (NCLR); Andrew Jakabovics, Associate Director, Economic Mobility Program, Center for American Progress; Luis Pastor and President and CEO, Latino Community Credit Union, Cooperativa Latina.
Participants on the call gave an update on the status of Latino homeowners and consumers. They provided proposals for restoring the financial safety net in all communities, including calling for solutions that get to the root of the problem, reducing foreclosures and bringing back credit to minority communites.

Get Ready for the New Great Depression. Leading Economists Say: "We are in the midst of a Depression with No End in Sight."

My readers know I am an optimist. I see a glass of water as half full, not half empty. My entire life, I have always believed that if you worked hard enough and always did your best you would succeed.

However, times are different now. I am sharing with my viewers my concern for our economy. Though I have shared my concern before, this time, I am listening to my own favorite economists and others who are saying the U.S. and the Global Economy is in free-fall with no end in sight. The stimulus package, though needed, is but a band-aid and will not stop this free-fall. Now more banks are failing and there is talk of Bank Nationalization.

. Robert Reich: "The truth is, no one has any idea how long this crisis will last or exactly how to reverse it. Anyone who says differently cannot be trusted..Financial stocks are in free fall because no one trusts financials any longer. A sell-off in bank, housing, insurance and other financial stocks has accelerated."

. George Soros: "the world financial system has effectively disintegrated.. there is yet no prospect of a near-term resolution to the crisis."

. Paul Volcker: "I don't remember any time, maybe even in the Great Depression, when things went down quite so fast, quite so uniformly around the world."

. Lindsey Graham: "I'm very much afraid that any program to salvage the banks is going to require the government. I would not take off the idea of the nationalizing the banks."

It is clear, historians will look back and say we are in the midst of the 2008 -2010 Great Depression.

I ask all viewers and all Americans to start considering their options for the future. I don't want you to be fooled by some in government or in the media that are saying there may be hope to get out of this current mess this year or next. We all have to understand we are in the midst of a Depression.

Most of us still have some time. We need to start developing a plan in case you lose your job and your family has no income. Consider the fact you probably cannot sell your house. Even so, you can still make these plans and not negatively impact the economy.

Here are some simple suggestions:

1. Write down every penny you spend. That is, write down all your purchases, starting today. Do this for a month.

2. Once you have your list, make a monthly calendar. This will be your monthly plan. You can plan your shopping and your menus well in advance.

3. Figure out what you can buy in bulk once a month, things like Toilet Paper, canned/boxed goods.

4. Start clipping coupons. Also, if you shop at Wal-mart, they will match any low prices from any competitor. Just take their flyers with you when you go to the store.

5. This is the start of a monthly budget. Do some analysis. Decide what you need, what you don't need.

6. You will start saving money once you do this. So start saving as much as you can. Save enough money so that you can survive for 3 months if you lost your job.

7. If you do lose your job, you will probably qualify for unemployment. So on top of your 3 months savings, the unemployment will help you too.

8. Take any job. Don't think any job is beneath you. Remember, Wal-mart and McDonalds are always hiring. Think of the jobs your grandparents worked just to survive and bring you along.

9. If needed, bring extended family members who need help into your home and share costs until the crisis is over.

Don't wait for the last minute. Start writing down all you spend today. This is the easiest, yet most crucial step.

Finally, I think all of us personally remember the last 8 years and how we got here, so I will close with: "Thank you George Bush for eight miserable years of Economic Gloom and Doom and for getting us into this mess!"

References:

Soros sees no bottom for world financial "collapse"

Hope and Trust, and the Mini Depression

Washington, Wall Street Buzzing About Prospect of Bank Nationalization

As U.S. Economy Worsens, India plans for the Exodus of U.S. H-1B Visa Skilled Workers Back Home to India

The ministry of Indian affairs (MOIA) is setting up a new fund to help distressed Indian workers abroad, including in the U.S., who are likely to return home to India after losing their jobs in the next 12-18 months.

"There is likely to be an increase in the number of Indian workers returning in 2009 and a decline in the numbers going out,” the MOIA official said. Currently, the ministry estimates that around 150,000 Indian workers return back home every year at the end of their work contracts. The fund, which is being created as a safety net in case of larger numbers of workers returning to India in dire straits, will extend support to the returnees to set up their own enterprises and develop entrepreneurial skills. Margin money in the form of interest-free loans could be extended. “We will also help the workers in reskilling and becoming ready for the job market again,” Mr Ravi said.

H-1B Visas:

The H-1B is a non-immigrant visa in the United States under the Immigration & Nationality Act, section 101(a)(15)(H). It allows U.S. employers to temporarily employ foreign workers in specialty occupations.
The regulations define a “specialty occupation” as requiring theoretical and practical application of a body of highly specialized knowledge in a field of human endeavor including, but not limited to, architecture, engineering, mathematics, physical sciences, social sciences, medicine and health, education, law, accounting, business specialties, theology, and the arts, and requiring the attainment of a bachelor’s degree or its equivalent as a minimum. Likewise, the foreign worker must possess at least a bachelor’s degree or its equivalent and state licensure, if required to practice in that field. H-1B work-authorization is strictly limited to employment by the sponsoring employer.

Indian H-1Bs grew steadily from 1989 clearly becoming the largest category in 1994, then doubling in size by 1996, and quintupling by 1999—a remarkable pattern of growth and accounting for nearly half of all visas issued in 1999 (47 percent). No other country during the lifetime of the program has so completely dominated the H-1 visa.

Reference:

MOIA mulls new fund for returnee Indian workers

H-1B Temporary Workers: Estimating the Population

H-1B Visas - wikipedia

Bailout Fiasco: Billions to Banks, Zilch to Small Business! How One Small Business is Fighting Back!

The news is consumed with talk of our failing economy, Bailouts and Stimulus packages. From Wall Street to Bank Bailouts, the Senate is busy working out the details of the various plans. One example: It has been reported Bank of America received $20B in US government aid and $118B worth of guarantees against bad assets. Meanwhile, small businesses are collapsing across the nation. Will the Stimulus plan now in Congress also include plans for Small Business and Main Street Americans?

Here is the story of how One Small Business is Struggling to stay in business and is Fighting back:
Rogelio Castro is the American born son of Pedro and Lucy Castro who immigrated to the US in 1945. His parents founded La Guadalupana Company in Chicago, specializing in tamales and other home-made products. Over the decades their business grew and prospered. In 1992 Rogelio expanded production and opened a USDA-approved plant, making La Guadalupana products available across the Midwest. By 2003, La Guadalupana had sales of more than $1.5 million. It was no wonder LaSalle Bank (later merged with Bank of America) came calling to win their business. The Bank was full of promises, with offers of loans to help them expand nationally. The wooing worked and Castro switched Banks. The bank’s sales tactics were compelling. Grow, Buy, Borrow to your heart’s content. The Castro’s were convinced to extend themselves beyond their previously set limits and attempted to purchase another business in Ohio. Through this time, the bank merged with Bank of America. As small bank written promises were broken by uncaring national Bank’s policies, not only did the Ohio sale fall through, but the National Bank attempted to foreclose on their business, sending letters to clients and suppliers alike, informing them of their financial woes, disparaging their brand. The bank’s actions violated their agreement, but beyond that, caused the Castro’s to lose market-share from 80% to 50%.
While many small businesses might fold under such pressure from the mighty National Banks, the Castro’s decided to fight back! They took the big National Bank to court and demanded the Bank cease and desist their tactics. An Emergency Temporary Restraining Order Hearing is set for Monday, 2-9-09, at 2:30 central at the Daley center.

This is not the end to this story. Perhaps Castro will be successful in court or perhaps not and his business will fail. His fate, as all of ours, lies not only in the judgement of the courts or in the halls of Congress, but most significantly, in our Country's ultimate economic destiny.

Will the Economic Crisis lead to a Military State in the U.S.?

Many of the ANTI and Fear Websites are carrying this article.

I am asking my readers, have you heard of this? Does this mean the possibility of a Military State? What do you make of this?
El Paso Times reports:
Unrest caused by bad economy may require military action, report says

By Diana Washington Valdez 12/29/2008
EL PASO -- A U.S. Army War College report warns an economic crisis in the United States could lead to massive civil unrest and the need to call on the military to restore order. Retired Army Lt. Col. Nathan Freir wrote the report "Known Unknowns: Unconventional Strategic Shocks in Defense Strategy Development," which the Army think tank in Carlisle, Pa., recently released.
"Widespread civil violence inside the United States would force the defense establishment to reorient priorities ... to defend basic domestic order and human security," the report said, in case of "unforeseen economic collapse," "pervasive public health emergencies," and "catastrophic natural and human disasters," among other possible crises.

Phoenix Business Journal Reports:

College warns military must prep for unrest; IMF warns of economic riots

Wednesday, December 17, 2008

A new report by the U.S. Army War College talks about the possibility of Pentagon resources and troops being used should the economic crisis lead to civil unrest, such as protests against businesses and government or runs on beleaguered banks.“Widespread civil violence inside the United States would force the defense establishment to reorient priorities in extremis to defend basic domestic order and human security,” said the War College report.The study says economic collapse, terrorism and loss of legal order are among possible domestic shocks that might require military action within the U.S.

Wal-Mart, the Global Economy and the Suicidal Billionaire

I went to Wal-Mart today. Wal-Mart is always busy, no matter what time of day you go shopping. People were hustling and bustling up and down the aisles. There were numerous workers stocking and restocking shelves and asking “Did you find everything ok?” There were “We Are Hiring” signs throughout the store. Up past the checkouts in the Service Desk area was a kiosk saying, “Apply Now.”
Money Magazine reported last month: while other stores slumped this holiday season, Wal-Mart actually increased sales by 3.4%. The reason, "Consumer psychology is very negative right now."
I was thinking about this as I was shopping. What does this mean? “Consumer psychology is very negative right now.” Negative? Meaning we will not shop at high-end stores? We won’t shop at the neighborhood grocery stores or specialty shops owned by our neighbors? Negative meaning we won’t frequent our local contractors paying living wages?
Negative, for every day consumers, means we will only pay the lowest prices for our purchases regardless of what we think about Wal-Mart’s employment practices/low wages/few benefits, overseas suppliers/poor working conditions and their detrimental impact to other small businesses.
If the economy does tank, this means Wal-Mart will continue to thrive because most of us will continue to patronize their stores. They will continue to hire, pay low wages with few benefits, import manufactured goods from slave wages shops in 3rd world countries and we will put the final stakes in the hearts of local small businesses.
If we had a crystal ball, what will we see in the future? Will we, the huddled masses, all be employees at Wal-Mart? Mom, dad and kids? Imagine, each city with one giant Super Duper Mega Wal-Mart store. The new Super Duper Mega Wal-Mart will be complete with movie theaters, bars, theme park, casino and churches. They will have a Wal-Mart school from K – 12 and a Wal-Mart College for the best students. Three bedroom ranch houses all alike, will surround the stores all with the Wal-Mart logo. Few people will need cars. There will be Wal-Mart shuttles picking up shoppers and workers to and from stores, every hour, on the hour, 24 hours a day. There will be no middle or lower class, just Wal-Mart class. Beyond the houses will be Wal-Mart Warehouses. Only one super Wal-Mart highway will run in and out of each town. The Super Wal-Mart Trucks will travel in and out of Wal-Mart Town to the Wal-Mart Country Warehouses. Airports will be available near the warehouses for the import of manufactured goods from China and farm products from South and Central America.
But don't worry. The rich, upper class and those in government will still be rich and in power. Nothing changes there. The only difference is us.
As I was getting depressed thinking about this, I read this story on CNN.com. Perhaps it isn't so great being a rich billionaire after all!
CNN Reports: -- German billionaire Adolf Merckle, one of the richest men in the world, committed suicide Monday after his business empire got into trouble in the wake of the international financial crisis, Merckle's family said Tuesday in a statement. Merckle, 74, was hit by a train in the southwestern town of Ulm, police said. His family said the economic crisis had "broken" Merckle….The state government of Baden-Wuerttemberg rejected his petition for financial assistance, and he entered bailout talks with several German banks."The financial troubles of his companies, induced by the international financial crisis and the uncertainty and powerlessness to act independently which the financial problems brought about, broke the passionate family business man, and he took his own life," his family wrote in the news release.
My advice to all of us throughout this financial crisis: "Don't Worry, Be Happy!"

Dobbs, Republicans and ANTIS Vote Against American Unions and Workers And Don´t Make Sense!!

I am so very angry at Republicans right now!

Perhaps I should not even write this blog! I try to wait a certain period of time when I am angry before I write a blog, but I have to write this, and I am writing it now!

Republicans are so short sighted. They are pandering to the "Lou Dobbs", ANTIs in their ranks and refuting the UAW and other long standing union members. The Republicans are demonstrating how archaic they are!

I hate Lou Dobbs. Tonight he had a group of idiots on his show ALL bashing Union Members!!

Before I go on, I want everyone to know I AM VERY Pro-UNION!!

My Beloved Father was a Union Man!! He believed in the Union!

Together the Unions and Workers were able to request and receive a working man´s (person) wage, union benefits, and retirement benefits. They were NOT asking for the multi millions the Wall Street Bankers ask for. All they asked for was a livable wage, benefits, and a retirement package once they had 30 years. I love unions. I don´t think that is too much to ask for.

Unions were why Michigan survived! My Father was Union. My Brothers were union. My Father in law was union! Most Everyone in Michigan is PRO Union and most Everyone owns USA produced cars!

Today, the Republicans, listening to their Republican and ANTI constituents, voted against the bailout for American owned Companies. They voted against Unions. They voted for Foreign Owned Car Companies with Non Union factories located in their states.

I ask, how can these REPUBLICANS refute the Union?!? (WHY, Because Foreign Auto Makers Reside in their State?!? And Pay Big $$ to their PACS!) How can they turn down this bill?!? Why were the Republicans so willing to pass the bailout for the RICH BANKERS ON WALL STREET?!? Those who have those Fancy Recognition Parties in Million Dollar Hotels?!? And Multi Million Dollar Bonus Packages for their CEOs and other Officers?!? All Driving Foreign Cars!!

I believe in the Working Man! Unions are good!

Pay the Million Dollar Business Owners?! But Delete the Unions?! Republicans DO NOT MAKE SENSE!!!

Reference Documents:

Automakers fail to cash in on big GOP donations

A Tale of Two Auto Plants

U.A.W. at Center of Dispute Over Bailout

Gov. Granholm to Bush: Thanks for your help

My Friend, Robert Reich´s Ideas on Fixing the Economy!

My friend, Robert Reich, an economic adviser to President Obama, believes Obama´s Jobs Program and government spending are good for our ailing economy.

Many Republicans disagree and call for tax cuts, rebates and limited government spending. Their plans did not work over the last 8 years and will not work in the future!

I tend to agree with my genius friend and my hero Robert!

From Robert Reich´s Blog:

Between now and late January, when the stimulus package will be voted on, we're likely to be treated to a great debate over the wisdom of Keynesianism. Fiscal hawks (Republicans) will claim government is already spending way too much. Even without the stimulus package, next year's budget deficit is likely to be in the range of $1.5 trillion, considering the shrinking economy and what's being spent bailing out Wall Street. The hawks also worry that post-war baby boomers are only a few years away from retirement, meaning that the costs of Social Security and Medicare will balloon.
What the hawks don't get is what John Maynard Keynes understood: when the economy has as much underutilized capacity as we have now, and are likely to have more of in 2009 and 2010 (in all likelihood, over 8 percent of our workforce unemployed, 13 percent underemployed, millions of houses empty, factories idled, and office space unused), government spending that pushes the economy to fuller capacity will of itself shrink future deficits.
Conservative supply-siders, meanwhile, will call for income-tax cuts rather than government spending, claiming that people with more money in their pockets will get the economy moving again more readily than can government. They're wrong, too. Income-tax cuts go mainly to upper-income people, and they tend to save rather than spend.
Even if a rebate could be fashioned for the middle class, it wouldn't do much good because, as we saw from the last set of rebate checks, people tend to use extra cash to pay off debts rather than buy goods and services. Besides, individual purchases wouldn't generate nearly as many American jobs as government spending on infrastructure, social services, and green technologies, because so much of we as individuals buy comes from abroad.
So the government has to spend big time. The real challenge will be for government to spend it wisely -- avoiding special-interest pleadings and pork projects such as bridges to nowhere. We'll need a true capital budget that lays out the nation's priorities rather than the priorities of powerful Washington lobbies. How exactly to achieve this? That's the debate we should be having between now and January 20 or 21st.

Should We Bail Out GM? What Are Your Thoughts?

GM Leaders flew in their private jets to meet Congress and tell them our country is headed for “catastrophic collapse” if the government doesn´t give them a $25B bailout. GM said it will run out of cash as early as January if it does not get help from the government. Analysts said GM will be liquidated if they are forced into bankruptcy. Republicans are against a GM Bailout although they advocated the $700B Bailout for their crony banks on Wall St., yet the Bush Administration opposes the package saying Congress should instead adapt an existing 25-billion-dollar loan program aimed at helping the auto industry develop more fuel efficient vehicles. Meanwhile, Obama and Congress are studying the entire situation.
On the blogosphere, many bloggers are saying “No” to GM. They want them to go into bankruptcy. Some blame it on the union and union benefits and pensions. Others blame it on CEOs, their private jets, and their inability to manage their own business without outsourcing overseas and taking huge salaries. I heard Michael Moore saying “No” as well. He said GM is building a new plant in Russia and any bailout will allow GM to plant plenty of dollars overseas with no assurity of increasing domestic jobs.
I grew up in Michigan. My father worked in an auto factory in his quest for the American Dream. My father was a proud union supporter. The union viewed ALL workers as equals. They were the first advocates of one person, one vote, regardless of race-ethnicity.
I struggle when I consider the GM Bailout. Why? Because I don´t know what it is. Is it a union bailout? Worker Bailout? Executive-private jet bailout? Offshore bailout? I don´t know!! I support the workers, the union, USA Bailout! Americans need jobs! Those jobs should be bailed out. But is that what GM is promising? Or are they promising to complete their new GM plant in Russia? I don´t know.
I feel the same way about the $700B bailout. No one seems to know where the money is going or what the plan is to solve the problem. No one seems to know who is providing oversight. How is that possible?
My only hope is the new Obama administration, first to provided needed oversight, then to ensure the bailout creates jobs in America and Hope for all of our futures. Most Americans I know DO NOT want a handout. They just want an opportunity to WORK and Support their families!

What are your thoughts?
References:
US economy faces 'catastrophic collapse' without auto bailout: GM

ICE Raid Results in the Closing of Agriprocessors in Postville and the END of this Small Town!

In May, 2008, ICE raided the Agriprocessor´s plant in Postville, IA. At the time, it was the biggest ICE raid in U.S. History. The city of Postville was in an uproar. They did not ask for the raid.
In the early nineties, they rejoiced the arrival of the plant. Their town had no economy, no jobs, no livelihood. Agriprocessors changed that. Not only did the plant bring in new jobs, it brought in new economy, new small businesses, new churches, new neighborhoods, revenue, stores, growth.
After the raid, hundreds of workers were shipped to cattlebarns, then on to prison, detention centers or ankle bracelets. Many sought refuge in local churches. With so many people out of work, the economy nose-dived. Small businesses closed. Churches shriveled. Tax revenues gone.
Agriprocessors tried to replace the workers. The remaining townspeople did not want to do the jobs in the Cattle Barns. Workers were solicited from across the region, as far as southern Texas, the South Pacific and across the world. The townspeople did not like the change in demography of the new and sometimes raucous laborers.
Things have gone from bad to worse for Agriprocessors and for Postville´s economy. This week, Agriprocesser´s owner´s son was arrested for his role in providing false documentation (soliciting, hiring and providing false documentation) primarily to workers from hurricane ravaged, war torn Guatemala.
Now, a major lender has foreclosed on Agriprocessors and its owners, asking that a receiver be appointed to take control of the embattled kosher meat supplier. The action last Thursday by First Bank Business Capital of St. Louis seeks to foreclose on $33.5 million in loans.
Also this week, A staffing firm that provided more than half the work force at Agriprocessors in Postville PULLED OUT, taking with it about 450 employees. Regional Manager Jamie Cord said Friday that Jacobson Staffing has suspended relations this week with the Agriprocessor´s plant in Postville. The company told its 450 workers not to report to their jobs. Cord says that leaves the plant with about 250 workers.
An ICE Raid, a mass deportation of all the workers, caused devastation on this town. It will never be the same again. The Agriprocessors ICE Raid serves as a sterling example of the impact ICE-Suppression raids have on an area´s economy. It proves Mass Deportation does not work. It proves the impact on local economies is horrific. It proves that now, more than ever, our country is in dire need of Comprehensive Immigration Reform!
References:
Lender forecloses on Agriprocessors
Iowa firm pulls 450 workers from slaughterhouse

The Bailout, the Economy and Immigration! Why the Republicans are Primarily Responsible!

As I have written in previous blogs, Immigration is not the root cause of the economic disasters our country faces today. The Primary Issue is the Global Economy. Lupita, an old friend of many of the members of this blog said about the US economy, "Our economy is just an illusion of economic growth. Big business has partnered with the Administrations from Reagan forward to develop a method to expand our labor force, push wages down and increase corporate profits." She often predicted we would face economic disasters due to our greed. Lupita´s words came back to haunt me this week as I saw news of the bailouts.

Here are the recent headlines of this crisis:

U.S. Drafts Sweeping Plan to Fight Crisis

Treasury Announces Plan To Buy Troubled Mortgage Assets

"WASHINGTON -- The federal government is working on a sweeping series of programs that would represent perhaps the biggest intervention in financial markets since the 1930s, embracing the need for a comprehensive approach to the financial crisis after a series of ad hoc rescues. Treasury Secretary Henry Paulson announced plans Friday to quickly set up a "bold" government program to take over troubled mortgage assets from financial institutions, along with other efforts to step up the purchase of mortgage-backed securities. "The federal government must implement a program to remove these illiquid assets that are weighing down our financial institutions and threatening our economy," Mr. Paulson said in prepared remarks for a press conference."

I tend to agree with Lupita. The blame for this economic downfall is Greed, good old fashioned American Greed! Here is my view of why we are in the mess we are in. From 2002 to 2007, countless mortgage companies, many of them "no-name", mailed me and everyone else I know mortgage offers. "Refinance Now!" read the headlines. TV and Radio ads heralded the same "Refinance Now!" Remember the annoying Ditech commercials? Everyone was pushing these loans. I remember my daughter in law speaking of a friend of a friend who was in the mortgage game and selling mortgages from her house. She said anyone could afford a house now and if we were ever in the market for a new mortgage or refinance, they would get us a good "deal." (Everybody and their brother had a friend of a friend like this pushing and pushing these predatory loans).

I also remember a peer from work who lived in a pricey California neighborhood. She and her new husband decided to purchase one of those "interest only" loans for her very pricey $400K, 2B condo. I asked how she could do that. Why didn´t she try to move to a more affordable location. She said her mortgage person persuaded her it was affordable and with property being so valuable in that area, reselling would be easy. I told her I was nervous for her and I would never buy a home without a conventional mortgage. She called me a worry wart. Now I think about her and that balloon mortgage. How many others are foreclosing now because now they can´t refinance their ballooned mortgages and they can no longer afford their tripled or quadrupled monthly rates?

I remember the phone calls from the telemarketers. They were relentless in trying to sell, sell, sell these new mortgages. My mailbox was always full of offers. Again, this started in 2002-2003. I ask everyone to use their own memory on when these changes happened. Don´t rely on someone else who wants to scapegoat.

Why is it important to remember what happened and the timing? Because then you can pinpoint for yourself who is primarily accountable. (besides our greedy selves).

Politicians from both sides are busy trying to point fingers at one another. The most ludicrous accusations were from Republican politicians who pointed to legislation from the Clinton era stopping the heinous act of "redlining." Redlining, for those who may not know, is the practice of denying or increasing the cost of services to residents in certain, often racially determined, areas. The most devastating, mortgage discrimination. So the right wing nuts try to point to the anti-redlining legislation as the root cause. Ludicrous.

If one were to point towards any legislation that most contributed to this turn of economic events they would point to the "Commodity Futures Modernization Act of 2000." This legislation provided certainty that products offered by banking institutions would not be regulated as futures contracts. This law creates a LOOPHOLE for many GOP cronies (e.g. Enron) which exempts most over-the-counter energy trades and trading on electronic energy commodity markets. The "loophole" was drafted by Enron Lobbyists working with Senator Phil Gramm (Sen. McCain´s best friend) seeking a deregulated atmosphere for their new experiment, "Enron On-line". The act specifically banned regulation of credit default swaps. These unregulated instruments, insurance policies against default on risky investments like mortgage backed securities.

This is very important to understand. Mortgage companies were NO LONGER REGULATED nor were they accountable for risky mortgages. They often sold these "risks" to foreign lenders.

HR5660 and S.3283 were introduced in December 2000 by Republicans: Sen Phil Gramm, Sen Charles Hagel, Sen Peter Fitzgerald Rep Tom Ewing, Rep Tom Bliley, Rep Larry Combest, Rep James Leach, with some Dem support including Rep LaFalce and Sens Harkin and Johnson. These bills were NEVER debated in the House or the Senate. Since then, several attempts have been made to overturn them. While these bills were championed by the Republicans, they did have some support by some Democrats, so we cannot point blame at one party. Since then however, several attempts (championed by the Dems) have been made to overturn this act. In fact, an attempt to repeal the policy was vetoed by President Bush in 2008.

However, beyond legislation, the plain facts are, the primary root cause is Greed and Corruption. Here is what Robert Reich said about Fannie and Freddie:

Fannie and Freddie, as Predicted

"Apologists will say that Fannie and Freddie exist to make housing loans to low-income Americans, so it was inevitable that the two giants would get caught in the quagmire of the housing burst. But the fact is, Fannie and Freddie -- and the executives who ran them and still run them -- have been out to maximize profits. Period. Just the same as every other mortgage and investment bank. High-risk sub-prime loans offered a higher rate of return, so Fannie and Freddie went into them big time. And because of the implicit government guarantee, Fannie and Freddie could take on even more risks and make even more money. Until now. It's another case of socialized capitalism, folks. The largest, yet. Along with making lots of money for investors and their executives, Fannie and Freddie corrupted our political process. They blocked any attempt to reign in the risks. Their lobbyists were and are the most sophisticated and among the most ubiquitous in Washington."

On Fannie & Freddie Accounting Gimmicks

Accounting gimmicks first came to light at Fannie and Freddie in 2003, at which time Fannie's and Freddie's former CEOs were sacked. Why, then, did they continue for another five years, even under new CEOs, even after policymakers first learned of them? Three reasons: (1) Top executives and shareholders continued to profit from them so there was no incentive to stop them, (2) everyone involved kept expecting home values to continue to rise -- or, when they fell, rise again soon enough -- to make up for the accounting shortfalls, and (3) Fannie and Freddie continued to be in bed with Congress and the administration. Democrats and Republicans alike have been complicit in this outrage.

Now, we are told, we have no recourse but to rescue these companies, otherwise we risk a Depression far worse than the Great Depression of the 1930s. The $700B plan Secretary Paulson is championing should be reviewed by every American. This Rescue Plan will bill the American Taxpayers trillions of dollars. This bail out for $700 BILLION dollars (probably trillions) our children and our grandchildren will be in debt for the next several decades. Additionally, the initial draft of this proposal is only bailing out the companies and their investors, NOT the citizens with mortgages. The Dems are asking that the citizens (who took these risky loans) be bailed out as well. The plans are being put in place now. We ALL should study them so we know what we are asking our grandkids to support.

Final Note:

I find the timing of these events incredible. These crises happen just months before the end of the Bush Presidency. He is bailing out his friends and his cronies now, before the Republicans are out of office. How many more of these type of coincidents will we see?

Bush Legacy:

1. Mortgage Co. Bailout

2. Gas prices through the roof ($5)

3. Nafta-Cafta extended to other countries

4. (I am sure there are many more... we should start a list.)

References:

Commodity Futures Act

Redlining

Robert Reich´s Blogs

U.S. Drafts Sweeping Plan to Fight Crisis

Soap Opera Politics Vol 1 Issue 14: Immigration Issues Coming to A Head in the Political Debate! Sleeping Giant Awakens!

The Immigration issues are coming to a head. Various politicians are taking sides, PRO vs ANTI, pandering to either side of the political debate. Some States are instituting restrictionist laws. The supporting politicians are backing these unenforceable laws purely for political gain.
Case in Point: Matt Blunt, the unpopular and defamed boy Governor of Missouri. Severely unpopular, he desperately signed a bill promoting sanctions against “community leaders” while providing employers relief, pandering to the ANTI racist extremists. His political opponents (Talboy) publicly chastising him for the error of his ways. (and rightly so) Meanwhile, the Presidential candidates are staying amazingly neutral. Then, in Oklahoma, home of Randy Terrill´s HB:1804, Workers and Businesses are leaving in droves. Litigation is blocking any future immigration restrictions. This is due to the Latino groups being energized into action. No More Racial Profiling! No more demonizing of ALL Latinos!
As AOLNews reports:
OKLAHOMA CITY (AP) - Vowing to become more politically active, Latino groups Monday praised a federal judge's decision to block enforcement of parts of a state law that targets illegal immigrants and promised to support state lawmakers who have opposed the measure. A coalition of Hispanic organizations said momentum against the law, House Bill 1804, is building seven months after parts of it went into effect. On Wednesday, U.S. District Judge Robin J. Cauthron issued a preliminary injunction prohibiting enforcement of other provisions scheduled to go into effect on July 1."Countless thousands of families have been separated, torn apart," said the Rev. Victor Orta of the Coalition of Latin American Ministers. He said the anti-immigrant law and its harsh penalties sends a message that immigrants are not wanted in the state.
"This must stop. Enough is enough," Orta said.
Rep. Randy Terrill, R-Moore, author of HB1804, has said he was disappointed but not surprised by Cauthron's ruling, which he labels "a blatant act of judicial activism" and predicted an appeal if the ruling is made permanent.
Franco Cevallos of the Hispanic Action Coalition said the law's effect on Oklahoma's economy "has been catastrophic.""Hundreds of stores have closed their doors permanently. Houses have been abandoned," Cevallos said. He said Latino workers are skilled and hardworking and "are the energy behind the motor that sustains the economy.""Their presence in the state has proven to be good for the economy," Cevallos said.Coalition members said Latino organizations are conducting citizenship and English courses for Hispanic immigrants and have registered as many as 17,000 Hispanic citizens to vote.
"There will be more Hispanics going to the polls in November than ever in the history of Oklahoma," Orta said. "And thousands of us can influence non-Hispanics to vote."We will see a difference. There will be a change in Oklahoma (and the US)," Orta said.

Who Cares About a Recession or High Gas Prices! It´s All Daddy´s Money Anyway!

I went to the casino yesterday. I was sitting at a slot machine. The chair next to me became open. A flamboyant, bejeweled, middle aged woman walked by, saw the gentleman next to me winning and took the chair next to me. She loudly talked to him and to all of us in our row. She was excited and wanted to win, like my neighbor.
Two young people in their early twenties stopped by, intermittently, to talk to her. She started winning and she started cheering for herself. Soon, the two young people sat on her right as machines became open. They all were putting lots of money into the slots. As they continued, it became obvious these two were her step children. The flamboyant woman left to cash in her winnings as her step daughter took over her machine. The two young people, side by side, were both losing. The boy said to the girl, “Who cares. It´s all Daddy´s money anyway.” They laughed to themselves.
Their comment struck me. As I looked around the casino, this huge casino, I saw it was packed with people, American Citizens. They were young, old, mostly Anglo but many ethnicities. There were close to three thousand people here. The casino´s parking lot was filled to capacity. This casino is one hour north of Dallas, on the Oklahoma border, out here in the middle of nowhere. Most of the license plates were from Texas. That meant not one of these people were worried about the $4 per gallon gas it took to drive here or the amount of Daddy´s money they were losing.
Today, I looked up the number of casinos in the U.S. The number was 1507. If all of the casinos averaged just 1000 people and if each of the people averaged just $100 loss, then that tells me, that just yesterday, Americans lost $150M in casinos. Additionally, I checked the revenues for the six Cherokee Casinos in Oklahoma. For 2008, their total revenues = $418.6M. This report details how the profits support Native American jobs, casino operating expenses, Native American community services, and Profit.
You ask, "Why is she telling us all this?"
I am writing this because it suddenly struck me.
The media is telling all of us to be worried about the Recession and high Gas Prices. We are supposed to be worried about jobs. We are supposed to be worried about terrorists. So many people are worried that Latinos are taking over this country. We keep having these workplace sweeps. So many people say we don´t have labor shortages and our young people are going to do the jobs the 12M are doing.
Yet. I sat in the casino and no one was worried about anything. No one worried about the recession. No one worried about Gas Prices. No one was worried about jobs. No one was worried about terrorists. No one was worried about Latinos and Brown people, especially since all the workers in the casino were brown. I knew those young people sure were not worried about jobs and or money. And they certainly would NOT do any jobs migrants are doing, certainly NOT in the fields, and probably not even the Casino jobs.
As I said, their words struck me! "Who Cares! It´s All Daddy´s Money Anyway!"
PS: And according to the Cherokee Casino report, their massive profits are all going to Native Americans.

As the Economy Worsens, Consumers´ Buying Behavior Is Changing. How will Immigration Issues Impact the Slowing Economy?

I found this very interesting Newsweek article about the change of Consumers´buying habits. As our economy worsens, consumers continue to buy groceries, health products and gas at any price. They are cutting back on furniture, appliances, fancy restaurants, vacations, clothes and jewelry.
It seems the mood of the nation this summer will be staying at home for family barbecues. Also, it appears Wal-Mart will not be impacted by the downturn in the economy.
My Question to my readers is, will you be affected? Do you think the Immigration issues will impact the Slowing Economy?
As Goes Wal-Mart, So Goes the Nation
For a better understanding of our budget consciousness, check out the world's largest retailer.
By Jennifer Barrett Newsweek Web Exclusive May 7, 2008

No matter how bad the economy gets this year, Americans aren't about to stop buying groceries or gas. But as fuel tops $4 a gallon and the costs of basics like bread and milk rise, consumers are learning to economize. How? For a clear view of our readjusted shopping habits, head to Wal-Mart. With an average of more than 100 million customers a week, the world's largest retailer offers a telling glimpse of how consumers are responding to the economic downturn. Not surprisingly, the company has largely benefited from the increase in budget-consciousness: it reported record sales of more than $106 billion for the quarter that ended Jan. 31, the majority of that coming from its domestic stores. What's hot and not? During a presentation to analysts last week, Eduardo Castro-Wright, CEO of Wal-Mart's U.S. stores, pointed to strong sales in groceries, health and wellness products, as well as flat-screen televisions and other consumer electronics. Clothing and furniture, however, are not selling well.
Apparently, new wardrobes and home-decorating projects are giving way to economic woes. Recently, the Labor Department said clothing prices nationwide fell by 1.3 percent in March, the largest monthly drop in nearly a decade. Recent markdowns, say analysts, haven't done much to move clothes off the racks or furniture off the showroom floors. Furniture stores have reported slower sales in the first quarter of the year. "

Two Faced Napolitano & McCain! Restrictionist Arizona Laws Causes State to Lose $! Now new program invites new Mexican Guest Workers!

Arizona. In 2007, the home of the Nation´s severist restrictionist Immigration Laws. These laws promised to "come down hard" on not only illegal immigrants but on employers. Since the laws have passed, Arizona has seen changes, however not the changes they wanted.
As Sheriff Arpaio came down hard on Latinos, legal and illegal, via Racial Profiling Sweeps of Latino majority cities and towns. Latinos, both legal and illegal, fled in terror of being caught up in these raids.
While to date, not ONE employer has been arrested or sanctioned, Arizona is suffering the impacts of these restrictionist laws. Business owners are going out of business and they are suffering from the inability to hire workers needed to do the job, all while the state is experiencing one of their lowest unemployment rates in history.
Fast forward to May, 2008. Arizona , John McCain´s home state, the state with the most broken immigration policies, is seeking to change their laws and invite in more Guest Workers from Mexico.
My only question is to the bad-boy Sheriff Arpaio, "whatcha gonna do when they come for you..." All of the invited Guest Workers!
The Tucson Citizen Reports:
PHOENIX - With lawmakers temporarily diverting their focus from the state's budget crisis, the hot-button issue of immigration is getting renewed attention in the state Senate, where one lawmaker vows to conduct what would amount to a filibuster. Senators this week are expected to consider both a bill to revise the 2007 employer sanctions law penalizing businesses that knowingly hire illegal workers and a separate proposal creating a new state guest worker program. Arizona is the nation's busiest border crossing point for illegal immigrants, and the 2007 employer sanctions law was enacted in an attempt to eliminate jobs as a magnet for illegal entrants. The bill (SB 1374) to make numerous changes to the sanctions law is a response to criticism from business owners and others about its fairness and workability. Proposed changes include making its penalties for employers apply only to workers hired on or after Jan. 1 and establishing a new voluntary compliance program. The guest worker proposal would ask for federal permission so Arizona could create a program to provide temporary foreign workers for employers who experience labor shortages. ..

Proponents argue that creation of the program would help employers while diminishing unregulated illegal immigration, but it drew fire during a Republican caucus Tuesday as senators said it could undercut American workers and open the door for unreimbursed health care costs. The measure's sponsor, Democratic Sen. Marsha Arzberger of Willcox, later said she has commitments from enough fellow senators for passage. She briefly flashed a "laundry list" of checkmarks next to names of senators but declined to allow a reporter to examine it in detail. Arzberger said work for Americans would be protected because the state Industrial Commission, one of the agencies that would help administer the program, would determine whether businesses had made adequate attempts to hire local workers. The immigration-related measures are among numerous pieces of legislation being considered during a lull in budget action.

No Longer ANTI vs PRO...Now, Economy vs ANTI-Immigration

The two sides of the Immigration Debate are changing faces. It is no longer ANTI vs PRO or America vs Mexico, now, the two sides are depicted as Economic Prosperity vs Anti-Immigration. The side whose strategy is to Improve the Economy is winning, hands-down!
Immigration Fight Has a New Target
Stewart Hurts Pr. William's Prospects With Harsh Rhetoric, Some Say
By Kristen MackWashington Post Staff Writer Sunday, April 20, 2008
When Prince William Board of County Supervisors Chairman Corey A. Stewart dressed down the police chief for hosting a public meeting with the Mexican consul to discuss the county's controversial immigration policy, Elena Schlossberg-Kunkel was appalled. Schlossberg-Kunkel, a Haymarket activist who had supported Stewart since 2006, and several other county residents showed up at a recent board meeting and demanded Stewart apologize to Chief Charlie T. Deane. Her voice pleading, Schlossberg-Kunkel admonished Stewart for his harsh rhetoric on immigration, which she said threatened to ruin the county's reputation. "You were in my home for a fundraiser. I felt like I knew you," she said. "I don't know the person you are anymore, Corey."
She is not alone in her concern. Elected officials and business leaders in Prince William say they are worried that the county's focus on illegal immigration is hurting Prince William's image at a critical time in its growth and effort to remake itself.
Virginia's second-largest county had been known for years as a center of cheap housing and bargain shopping. But in recent years, Prince William leaders have tried to change course by attracting high-tech employers, building luxury homes and supporting good schools much as neighboring Loudoun and Fairfax counties have done. Now, several supervisors in both parties and business leaders said, those efforts could be set back if county officials do not shift their focus from illegal immigration, which has divided the community and brought Prince William negative national exposure. ("The Road to Dystopia," one newspaper said of the crackdown.)

After a bitter, months-long debate, the eight-member board voted unanimously in the fall to increase law enforcement and deny some services to illegal immigrants. Although no one wants to repeal the policy, some supervisors and other officials said they wish the county -- especially Stewart -- would stop dwelling on it.
County business leaders have created "image committees" to examine the direction Prince William is heading. Now, some analysts said, the economic downturn makes it a bad time to carry out the immigration measures.
"It undermines the image of the county as a good place to invest," said Stephen Fuller, director of the Center for Regional Analysis at George Mason University. "The political environment has made people feel unwelcome."