Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Bankruptcy

Oil Expert Yardeni: OPEC Should Break Agreement, Produce All It Can

This article appeared online at TheNewAmerican.com on Wednesday, June 21, 2017: 

In Dr. Ed’s Blog, Ed Yardeni, for 25 years one of the industry’s leading energy strategists, proposed on Wednesday that OPEC should consider going back to Plan A to fund members’ treasuries as Plan B clearly isn’t working:

Rather than [attempting to prop] up the price [of crude oil], maybe OPEC should sell as much of their oil as they can at lower prices to slow down the pace of technological innovation that may eventually put them out of business.

Plan A, it will be remembered,

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Puerto Rico’s Vote for Statehood Means Nothing

This article appeared online at TheNewAmerican.com on Monday, June 12, 2017:

Despite 97 percent of Puerto Ricans voting for statehood in Sunday’s plebescite, the chances of adding the island as the country’s 51st state are between slim and none.

The island’s voters had three choices on Sunday’s ballot: Stay as a U.S. territory, move ahead with statehood, or seek full independence as a sovereign nation. This is the fifth vote on the issue since 1967, with the first three failing to gain a majority vote for statehood. That majority is required for the U.S. Congress to consider it. The fourth vote was marred by some 500,000 voters boycotting it to protest the ballot allegedly being rigged in favor of statehood.

The chances this time aren’t any better.

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Puerto Rico’s Governor Seeks an American Taxpayer Bailout

This article was published by The McAlvany Intelligence Advisor on Monday, June 12, 2017:

Ever since he announced his campaign for governor of Puerto Rico, Ricardo Rossello, who was installed as the island’s new governor in January, has been pushing for statehood. Offloading his country’s financial problems onto American taxpayers is the American way. By gaining statehood, Puerto Rico would be poorer than Mississippi, the poorest of the American states, and therefore would be the likely recipient of federal largesse by the truckload. As Rossello said so clearly,

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Democrats Love to Tax the Rich – Except When it’s THEIR Rich

This article was published by The McAlvany Intelligence Advisor on Tuesday, June 6, 2017: 

The Trump tax reform proposal has put the Democrats into a deliciously difficult position. He wants to eliminate state and local deductions for income and property taxes (but leave charitable and mortgage deductions alone) as part of his attempt to keep his proposal revenue-neutral.

The amounts involved are enormous. The Urban-Brookings Tax Policy Center estimates that, if passed, it would cost the rich $1.3 trillion over the next 10 years. The Tax Foundation ran the same numbers and came up with an even bigger number: $1.8 trillion.

The law currently allows state and local income and property taxes to be deducted in calculating an individual’s federal tax liability. But, as both tax groups noted, those benefitting the most from the deductions happen to live in liberal, Democrat-leaning and supporting states. This forces Democrats to face a conundrum:

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Aetna Next to Leave Connecticut for Better Business Climate

This article appeared online at TheNewAmerican.com on Tuesday, June 6, 2017: 

Aetna Insurance Company and Aetna National Ban...

Aetna Insurance Company and Aetna National Bank, Hartford, Conn, from Robert N. Dennis collection of stereoscopic views

Aetna, the $50 billion health insurer that has had its headquarters in Hartford, Connecticut, since 1853, confirmed rumors last week that it was looking to move out of state. The company said, “We are in negotiations with several states regarding a headquarters relocation, with the goal of broadening our access to innovation and the talent that will fill knowledge-economy type positions … and hope to have a final resolution by early summer.”

Hartford’s Mayor Luke Bronin expressed his disappointment:

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Hartford, Connecticut’s Troubles Mounting; Looking to Invoke Bankruptcy

This article appeared online at TheNewAmerican.com on Tuesday, June 6, 2017:  

The Connecticut State Capitol in downtown Hartford

The Connecticut State Capitol in downtown Hartford

Joseph De Avila, writing in the Wall Street Journal following Aetna’s announcement of its imminent departure from Hartford for more business-friendly climes, used the “B” word: “Hartford, Connecticut’s capital city and hub of the state’s insurance industry, is edging closer to a small club of American municipalities: those that have sought bankruptcy protection.”

As a hanging tends to focus the mind, so is Aetna’s departure focusing more and more attention on Hartford’s financial problems and, to a greater extent, those of the state of Connecticut itself. After being headquartered in Hartford since before the Civil War, Aetna said

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What’s Wrong with Connecticut?

This article was published by The McAlvany Intelligence Advisor on Monday, June 5, 2017: 

English: Aetna building in Hartford, Connectic...

Aetna building in Hartford, Connecticut

The state has a staggering deficit of more than $5 billion, home prices are about where they were a decade ago, unemployment is rising (not falling as it is elsewhere in the northeast), and big companies who have been there for decades are leaving.

What is going on?

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Credit Rating of Illinois Cut Again to One Notch Above Junk

This article appeared online at TheNewAmerican.com on Friday, June 2, 2017: 

English: 1987 Illinois license plate

The day after Illinois failed to reach a budget agreement (for the third year in a row), Moody’s Investors Service followed S&P Global Ratings by downgrading the state’s credit rating to just one notch above junk status. The legislature has 30 days to come up with a budget or else the state’s rating will be downgraded further to junk status.

Moody’s was blunt in its assessment of the rolling catastrophe: “Legislative gridlock has sidetracked efforts not only to address pension needs [$129 billion in unfunded liabilities] but also to achieve fiscal balance [the state has $14.5 billion in unpaid bills with $800 million in late fees and penalties adding to the total]. Moody’s analyst Ted Hampton added:

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Puerto Rico Headed to Bankruptcy Court, Likely Costing Investors Billions

This article appeared online at TheNewAmerican.com on Wednesday, May 3, 2017: 

English: Map of Peuto Rico, with inset showing...

The federal fiscal oversight board created by Congress last June to fix Puerto Rico gave up on Monday, putting the island country into the hands of a federal bankruptcy judge.

The board, created last June, was designed to help newly elected Governor Ricardo Rossello come to terms with mutual funds and hedge fund owners that own the bulk of the island’s $73 billion debt. Rossello’s first effort, which would have applied a one-third financial “haircut” to them was turned down by the board, which called it too generous.

Rossello’s second effort would have applied a 50-percent haircut, but Franklin Advisers and Oppenheimer Fund, the two largest entities holding the island’s debt, pushed back.

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Trump Administration Tips Its Hand, Oks Third Greek Bailout

This article appeared online at TheNewAmerican.com on Monday, April 17, 2017:

It took EURACTIV, the online source that focuses on European policymaking, to report that the Trump administration has signaled that, previous protestations to the contrary, it won’t object to a third Greek bailout. The anonymous Trump administration tipster told its reporters: “We’re looking for the Europeans to help Greece to resolve its economic problems by the Fund [the International Monetary Fund], despite the criticism of many Republicans regarding the two previous bailout programs in 2010 and 2012.”

This anonymous tip kicks to the curb protestations voiced by Trump’s Secretary of the Treasury Steven Mnuchin in February that

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Trump’s Strange Reversal on Ex-Im Bank: Names One Opposed to It to Run It?

This article appeared online at TheNewAmerican.com on Monday, April 17, 2017:

English: Congressman Justin Amash

Congressman Justin Amash

When Representative Justin Amash (R-Mich.) learned on Friday that President Trump intended to resuscitate the Export-Import Bank by naming two people to its board (it has been limping along with just three out of five board members present), he nailed it, tweeting, “ExIm corporate welfare bank is the symbol of D.C. cronyism. It steals from taxpayers to subsidize big corporations. End ExIm. Drain the Swamp.”

For a while it looked as if the Ex-Im Bank was for all intents and purposes dead. In 2015, the House failed to renew its charter for the first time since 1945. However,

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Is Trump Pulling a Pruitt – Putting an Anti-Ex-Im Exec in Charge of the Bank?

This article was published by The McAlvany Intelligence Advisor on Monday, April 17, 2017:

English: Export-Import Bank of the United Stat...

Many were surprised when President Trump named the EPA’s fiercest enemy – Oklahoma Attorney General Scott Pruitt – to head up the agency. For years Pruitt has raged against the agency for overstepping its bounds and writing rules, mandates, and regulations that negatively impacted the fossil fuel industry. He sued the agency more than a dozen times in the last eight years.

What was Trump thinking?

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Bank of America Fined Again; Board Likely to Laugh It Off

This article appeared online at TheNewAmerican.com on Wednesday, March 29, 2017:

Photo of Bank of America ATM Machine by Brian ...

Bankruptcy Judge Christopher Klein fined Bank of America $45 million on Thursday for deliberately and intentionally harming a young couple who got caught up the real estate collapse and had to downsize. Erik and Renee Sundquist made a down payment on a smaller home and borrowed the balance from Countrywide Home Loans. When they couldn’t make the payments on that loan, the couple was advised by Bank of America, which owned Countrywide, to default as a precondition for a loan modification in order to lower their payments.

Klein described what happened next in his ruling in Sundquist v. Bank of America as a series of events so fantastic and bizarre as to be nearly incomprehensible:

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More Evidence that OPEC’s Influence is Waning

This article was published by The McAlvany Intelligence Advisor on Wednesday, March 22, 2017:

A measure of the success – and failure – of OPEC’s agreement to limit crude oil production can be seen in the chart of NYMEX crude oil price behavior (Sources below) dating from last fall. When the agreement was inked back in November, crude was at $46.50 a barrel. The price soared and traders got excited, putting in long bets that set records.

By early January, reality began setting in as compliance among the cartel’s members and non-members (who agreed to go along for the ride) began to wane. The roof fell in a couple of weeks ago when inventory builds continued to set records, and the price dropped through support at $50.

In other words, in OPEC’s attempt to birth an elephant, it succeeded in birthing a gnat.

Saudi Arabia maintained a stiff upper lip during the Houston oil conference, stating flat out that

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The PBGC is Falling. Where is Superman When He is Needed?

This article was published by The McAlvany Intelligence Advisor on Friday, March 3, 2017:

In the 1978 film Superman, Lois Lane is caught mid-air by Superman who says: “Easy, miss. I’ve got you.” Responds Lois: “You – you’ve got me? Who’s got you?

Concerning government agencies making promises, the answer is always and everlastingly: the U.S. taxpayer.

For example, consider the 42-year-old government agency backing up single-employer and multi-employer pension plans:

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Federal Insurance Agency Backing Union Pensions Facing Crisis Itself

This article appeared online at TheNewAmerican.com on Thursday, March 2, 2017: 

Logo of the United States Pension Benefit Guar...

When Teamsters Local 707’s pension plan ran out of money in February, it sought assistance from the federal Pension Benefit Guaranty Corporation. Said PBGC Director Tom Reeder:

This is a big issue for us. It’s a big issue for Local 707 and it’s a big issue for others in the same situation across the country.

 

We’re projected to run out of money in eight to 10 years. Many union pension plans are projected to run out in 20 years.

The federal insurance agency is now paying out $1.7 million every month to the stranded retirees of Local 707.

707’s problems have been decades in the making.

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Trump Names Jay Clayton, Quintessential Wall Street Lawyer and Goldman Sachs Advisor, to Head SEC

This article appeared online at TheNewAmerican.com on Wednesday, January 4, 2017:

English: Logo of The Goldman Sachs Group, Inc....

In announcing Jay Clayton as his pick to run the Securities and Exchange Commission (SEC), President-elect Donald Trump issued a statement that was both laudatory and a thinly veiled warning to Clayton: “Jay Clayton is a highly talented expert on many aspects of financial and regulatory law, and he will ensure our financial institutions can thrive and create jobs while playing by the rules at the same time.”

And then, as if quoting from the job description Trump no doubt created as he was sorting through prospective picks for the position:

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Trump Names Carl Icahn Special Advisor on Deregulation

This article appeared online at TheNewAmerican.com on Thursday, December 22, 2016:

President-elect Donald Trump has named a longtime close friend as his “special advisor” on deregulation: multi-billionaire activist Carl Icahn. In acknowledging the honor, Icahn stated, “It’s time to break free of excessive regulation (see above) and let our entrepreneurs do what they do best: create jobs and support communities.”

Icahn started as a stock trader and then moved into a position where he could

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Will Mick Mulvaney Pull Trump’s Financial Fat Out of the Fire?

This article was published by The McAlvany Intelligence Advisor on Monday, December 19, 2016:  

English: Official portrait of US Rep. Mick Mul...

Michael “Mick” Mulvaney (shown) rode the Tea Party wave in 2010 into Congress, replacing a 14-term Democrat from South Carolina’s 5th District. He has been handily reelected ever since. He took his oath of office seriously, saying in 2010 that “If political reporters want to know what drives the Tea Partiers, it is their belief in the Constitution. That’s what has always driven me in politics and will guide me in Congress.”

He remained as true to his word as any of those riding the same wave,

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Boomers Are Retiring, Draining Pension Plans

This article appeared online at TheNewAmerican.com on Monday, December 12, 2016:

Roosevelt Signs The : President Roosevelt sign...

President Roosevelt signs Social Security Act, at approximately 3:30 pm EST on 14 August 1935.

In a moment of surprising candor, Danielle DiMartino Booth, a former advisor to the Federal Reserve, said in a Real Vision TV interview on Saturday that “the Baby Boomers are no longer an actuarial theory. They’re a reality. The checks [from their retirement plans] are being written.”

For years commentators have repeatedly asserted that “when” the Baby Boomers (that generation born between 1946 and 1964) start to retire, they will start using up funds set aside in pension plans, putting those plans into crisis. According to Booth, that day has arrived.

She pointed to the crisis in Dallas that threatens to put the city into bankruptcy, and the report from Calpers (the California Public Employees Retirement System),

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.