-Submitted by David Drumm (Nal), Guest Blogger

According to a Washington Post article, a “treacherous milestone” was reached earlier than expected when Social Security went “cash negative” last year. With high unemployment and the subsequent loss of payroll taxes, the outlays of benefits outstripped the income from payroll taxes. There’s just one small detail that the article didn’t take into account: the interest income on the government bonds that the Social Security trust fund generates. When the interest income is added to the payroll tax income, Social Security is ‘cash positive,’ that is, more money is coming into the system than is going out.

Continue reading “Has Social Security Gone ‘Cash Negative’?” →

Submitted by Elaine Magliaro, Guest Blogger

In an article titled Another Weapon for OWS: Pull Your Money Out of BofA, Matt Taibbi wrote that “when it comes to commercial banking, Bank of America is as bad as it gets.” He said he believed the markets seemed to agree as the bank had a credit downgrade recently “to just above junk status.”

He continued: The only reason the bank is not rated even lower than that is that it is Too Big To Fail. The whole world knows that if Bank of America implodes – whether because of the vast number of fraud suits it faces for mortgage securitization practices, or because of the time bomb of toxic assets on its balance sheets – the U.S. government will probably step in to one degree or another and save it.

After the credit downgrade in September, Bloomberg reported that Bank of America “moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits…” Taibbi said the transfer involved trillions of dollars in risky derivatives contracts.

Continue reading “Bank of America & The Great Derivatives Transfer” →

-Submitted by David Drumm (Nal), Guest Blogger

New York City mayor Michael Bloomberg surprised many when he stooped to the level of Rush Limbaugh to push the Big Lie, that it was the government that caused the mortgage crisis. Bloomberg claimed that “It was not the banks that created the mortgage crisis. It was, plain and simple, Congress who forced everybody to go and to give mortgages to people who were on the cusp.” Bloomberg added that members of Congress “were the ones who pushed Fannie and Freddie to make a bunch of loans that were imprudent, if you will.”

Fannie and Freddie don’t make loans. Whom does Bloomberg think he’s fooling?

Continue reading “Lying For Wall Street” →