Fed to Inject $1.15 Trillion More into Credit Markets
San José, CA – On March 18, the Federal Reserve announced that it would inject an additional $1.15 trillion into credit markets. With short-term interest rates already close to zero percent, the Federal Reserve will try to lower long-term interest rates in an effort to boost the economy. The Fed will buy another $750 billion in bonds backed by mortgages guaranteed by Fannie Mae and Freddie Mac, $300 billion in long-term U.S. government treasury bonds and another $100 billion in bonds issued by Fannie Mae and Freddie Mac.
Recently the media has been abuzz with talk of the possible ‘nationalization’ of ailing big banks such as Citigroup. Both Democrat and Republican senators, as well as the former chair of the Federal Reserve, Alan Greenspan, have raised the possibility of a temporary ‘nationalization’ or government takeover of big banks.
Minneapolis, MN – More than 40 protesters gathered here March 14 at the foreclosed home of Rosemary Williams, to demand that Williams be allowed to stay in her home and an end to foreclosures.
San José, CA – On March 6, the Labor Department reported that the economy lost 650,000 more jobs in February. The report also said that the number of jobs lost in December and January was revised upwards by 150,000. This brought the total job losses since the recession began to 4.4 million, more than half lost in the last four months alone. The total number of jobs has shrunk by 3.2% since the recession began, the most in more than 50 years.
Minnesota – A broad coalition has formed to demand that the Minnesota legislature take concrete steps to protect low-income and working Minnesotans from the effects of the snowballing economic crisis. The Minnesota Coalition for a People’s Bail Out brings together union members, welfare rights organizations and others.
More than Half a Million Jobs Lost in November, Most since 1974
San Jose, CA – On Friday, Dec. 5, the Department of Labor reported that 533,000 jobs were lost in November, the worst one-month decline since 1974. The job losses cut across the economy, with only health care showing any sizable increase in employment. In addition the report revised upward the job losses in September and October, showing that the economy has lost a total of almost 2 million jobs in 2008. The official unemployment rate increased two-tenths of one percent to 6.7%. This figure would have been much higher except for the fact that more than 400,000 people stopped looking for work and were not counted in the official unemployment report. A broader measure of unemployment that includes people working part-time but wanting full-time work, and those jobless who had given up looking for work, rose to 12.5%, or one out of every eight people in the labor force.
St. Paul, MN – While state officials announced a record $5.2 billion dollar budget deficit at the State Capitol here, Dec. 4 , about 25 members of the Minnesota Coalition for a People’s Bailout were outside the room chanting, “Hey politicians, here’s the fix! Tax the rich! Tax the rich!”
San José, CA – In late September massive popular opposition to the Bush administration’s bank bailout plan led to its defeat in Congress on Sept. 29. But behind the backs of the American people, the Federal Reserve and the Treasury, with the cooperation of leading Democrats in Congress, were orchestrating an even larger bailout. Between mid-September when the investment bank Lehman Brothers failed, and the end of October the Federal Reserve quietly lent out more than $1 trillion (one thousand billion) dollars, or almost 40% more than the ‘public’ $700 billion bank bailout.
San Jose, CA – On Friday, Nov. 6, the Department of Labor gave a dismal report on the labor market in October, with the unemployment rate jumping to 6.5% from 6.1% in September, the highest rate in 14 years. At the same time businesses cut 240,000 jobs in October, pushing the total job losses to 1.2 million this year. Even worse, the report made corrections to August and September’s figures – both almost doubled the job losses, from 73,000 to 127,00 in August and from 159,000 to 284,000 in September. A day earlier, a report on unemployment insurance claims showed that the number of people receiving benefits jumped by 122,000 in one week to highest level since 1983. This report suggests that the October job loss figure could be revised even higher.
Yes, I haven’t heard, much less said “capitalist pig” for more than 30 years. But I couldn’t help thinking it when I heard that Goldman Sachs, Morgan Stanley and Merrill Lynch (three former Wall Street investment banks; Merrill Lynch has been taken over by Bank of America) are planning to pay $20 billion in bonuses. To make matters worse, Goldman Sachs and Morgan Stanley are receiving $10 billion each in bank bailout money, while Bank of America will receive $25 billion.
