Category Archives: Bailouts

May 6, 2017

State Funded Fake News Bailout? Yep! (Video)

The Minister of Canadian Heritage has called for a “true redefinition” of the Canadian media industry, which is code for a massive taxpayer funded bailout of the failing fake news media. What does Stefan Molyneux think about being forced to pay for dying propaganda outlets which the free market has already rejected?

July 3, 2016

New Bailout Bill for Puerto Rico Supposedly “Won’t Cost Taxpayers a Dime”

It won’t matter that those bonds will carry junk ratings. What will matter is the yield — currently more than 12 percent on its present bonds that mature in 2035 — which is triple-tax-exempt to investors. It’s that enticement, with the help of bond brokers such as Stoever, that have made money available to Puerto Rico not only to fund its overly generous retirement plans for its workers, but also to roll over maturing bonds with new ones while borrowing to pay their interest along the way.

Since Senate Majority Leader Mitch McConnell said it, it must be true: The bill passed by the Senate on Wednesday to rescue Puerto Rico from its overwhelming financial troubles “won’t cost taxpayers a dime, not a dime.”

The president has said he would sign into law the dreadfully misnamed Puerto Rico Oversight, Management and Economic Stability Act (PROMESA) immediately and would then begin to nominate the seven members of the board to oversee its implementation. That board is to become effective on September 1.

That provides no help to Puerto Rico, which will default on most of a $2 billion payment due July 1. And it does nothing to address the additional $2 billion the government owes to its various vendors, suppliers, and contractors, who have been waiting months to get paid for work already completed and services already rendered. While the focus of all the congressional debate has been on the $73 billion the little island of less than four million citizens owes to various creditors, nothing was said about the other $40 billion shortfall in the island’s pension plans for its government workers. And nothing in the bill addresses the underlying problem: a dysfunctional economy laden with regulations that not only punish small businesses but discourage the creation of new ones.

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May 4, 2016

No bailout for Puerto Rico! by John Stossel

Island’s ‘culture of helplessness and entitlement’ shouldn’t be rewarded.

The Republican and Democratic presidential nominees have been chosen. Ignore the deluded supporters of Bernie Sanders and Ted Cruz. It’s over. The odds at ElectionBettingOdds.com make it clear: It will be Donald vs. Hillary.

A closer contest would be: Who will bankrupt America first, Trump or Clinton?

Trump’s a contender because he promises a trade war. That’s what gave us the Great Depression. Trump claims that China is “raping” America. No, Donald, rape is force. Your proposed tariffs are also force. Trade is voluntary and good. Big difference.

Clinton might bankrupt America first, however, because Democrats promise more regulation and handouts – free college, free pre-K, higher minimum wage, etc. Similar activist government spending just destroyed Puerto Rico.

This week, Puerto Rico defaulted on $370 million worth of bonds.

The territory’s “generous” government squandered the island’s resources. Decades of leftist governors hired their friends. In Puerto Rico and Greece, about one in four workers works for government, compared to 14.6 percent in the mainland U.S.

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April 15, 2016

Obama Cronies Cash in on Puerto Rico Bailout

Amassing a $73 billion debt on an island of just three million people is quite an accomplishment. Borrowing more than $24,000 per resident ought to provide a platinum level of public services for the citizens of Puerto Rico. It has certainly provided platinum-level contracts for politically-connected consultants.

This week, Puerto Rico is begging the GOP Congress for help escaping its massive $73 billion debt obligation. House Speaker Rep. Paul Ryan is spearheading legislation that would allow the island territory to shed many of its debts in federal bankruptcy court. The island’s debt crisis has not stopped it from opening its wallet to former members of President Obama’s inner circle.

SKDKnickerbocker, the powerful communications firm headed by former Obama senior staffers Anita Dunn and Bill Burton, has a $3.4 million contract with Puerto Rico to handle public relations for the island’s current debt crisis. The contract includes up to $500,000 in paid advertising to promote a bailout of Puerto Rico.

Dunn was White House Director of Communications in the first Obama term. Burton was national spokesman for Obama’s first Presidential campaign.

Also handling parts of the Puerto Rico contract is Barbara Morgan, former spokesman for Rep. Anthony Weiner’s ill-fated mayoral campaign.

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April 13, 2016

Congress Prepares Puerto Rico Bailout as Island Governor Suspends Debt Payments

Congress is expected to begin consideration of federal legislation to grant Puerto Rico extraordinary powers to escape a looming debt crisis. The island territory, home to just 3 million people, is faced with a massive $70 billion debt burden.

During negotiations of the omnibus budget deal at the end of 2015, House Republican Speaker Rep. Paul Ryan promised House Democrat Leader Rep. Nancy Pelosi that Congress would consider legislation to grant the Island with bankruptcy protection from its debts. The tentative deadline to begin action was March 31.

The House Natural Resources Committee is drafting a rescue package for Puerto Rico. Hearings on the measure will begin this week. The House conservative Republican Study Committee blasted an early draft of the Puerto Rico legislation, calling it a “bankruptcy-style involuntary restructuring.”

“The discussion draft legislation regarding Puerto Rico’s fiscal situation includes provisions that essentially provide for a federally forced restructuring the island’s debt,” Rep. Bill Flores, Chair of the RSC, said in a statement. “This approach is inconsistent with the Republican Study Committee’s position on this issue.”

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April 2, 2016

After Taxpayer Bailout, General Motors Plans Rollout Of Chinese-Built Buicks In America

In 2016, General Motors will roll out for the first time in the United States a new model of Buick built exclusively in China: the Buick Envision.

It’s the first time the iconic American auto manufacturer will sell cars built in China in the United States since receiving a sizable taxpayer-funded bailout at the end of the George W. Bush administration and beginning of the Barack Obama administration.

The Buick Envision–which was available in China for purchase as far back as 2014–will make its official debut in the United States in the summer of 2016.

The Buick Envision bills itself “a luxury crossover designed to turn heads and welcome you in.”

A quick search of “Buick Envision” leads to the Buick Envision’s website where one can explore all the features and design of the vehicle. The website doesn’t appear to make any reference to the fact that the Envision is manufactured in China.

The issue of U.S. auto manufacturers moving production facilities overseas has taken a center stage this presidential election, with the rise of both billionaire Donald Trump in the Republican Party and of Sen. Bernie Sanders of Vermont in the Democratic Party.

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February 16, 2016

Carrier Received $5.1 Million in Obama-Stimulus Cash Before Move To Mexico

Heating and air-conditioning company Carrier, which has announced it will move 1,400 Americans’ jobs to Mexico, received $5.1 million from the Obama administration.

Local media reported the “Department of Energy awarded Carrier $5.1 million in clean energy tax credits in December 2013” for its Indianapolis facility. They planned to use the money to “expand production at its Indianapolis facility to meet increasing demand for its eco-friendly condensing gas furnace product line.”

From WIBC:

“Energy Efficient Buildings: With the support of $5.1 million in 48C Program tax credits, Carrier Corporation will expand production at its Indianapolis facility to meet increasing demand for its eco-friendly condensing gas furnace product line. The new line includes the most energy efficient gas furnaces on the market – all with at least 95 percent annual fuel utilization efficiency”

At the time, John Gibbons, director of Carrier’s residential product and platform strategy, said the cash “has been instrumental in helping Carrier’s Indianapolis manufacturing facility accelerate production of our high-efficiency gas furnace line.”

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December 25, 2015

Expecting Bailout, Puerto Rico Pays $120 Million in Christmas Bonuses

Puerto Rico is sending $120 million in Christmas bonuses to government employees in the U.S. Territory. Year-end bonuses, even for government employees, aren’t especially unusual, except that Puerto Rico is more than $70 billion in debt. Moreover, the island territory is at risk of defaulting on $900 million in debt payments due on January 1.

Such unserious budgeting goes a long way to explain how Puerto Rico got so far into debt. In fact, the bonuses are part of the federal law in Puerto Rico. The law, first passed in 1969, apparently requires the government to pay Christmas bonuses.

The nearly billion dollar debt service payment due in January is just the tip of Puerto Rico’s fiscal problems. Two more payments of a couple hundred million each are due in the spring next year. In July, though, the island territory faces a whooping $2 billion in debt payments.

Unsurprisingly, the island territory is rattling its tin-cup in Washington. House Minority Leader Rep. Nancy Pelosi has introduced legislation that would temporarily block any legal action by creditors while Congress moved to restructure the island’s debt.

The Obama Administration has floated its own plan to give Puerto Rico access to bankruptcy courts, as a means of slashing its outstanding debts. Obama’s bailout plan would also create an “independent” board to oversee the territory’s fiscal affairs.

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June 8, 2015

We bailed you out, and now you want what!?!

One thing is already known, however. In deciding whether shareholders or taxpayers will profit from government bailouts, judges Sweeney in the Fannie and Freddie case and Wheeler in the AIG case are unlikely to have the last word. With so many billions of dollars at stake, their decisions are almost certain to be appealed all the way to the Supreme Court.

Americans were angry when Wall Street’s greedy and risky behavior triggered a global financial crisis in 2008. They were angrier still when the government had to borrow and spend hundreds of billions of dollars to rescue mortgage giants Fannie Mae and Freddie Mac, the largest banks and the insurance company AIG. They were outraged when they found out that executives at those enterprises were continuing to receive big salaries and bonuses.

So just imagine how outrageous it would be if some Wall Street sharpies went to court to argue that they didn’t benefit enough from the bailouts and that taxpayers should pay them tens of billions of dollars more.

In fact, they did. And, according to legal observers, they just might prevail.

“Lawsuits of the Rich and Shameless” is how the comedian Jon Stewart dubbed it.

“An absurdist comedy .?.?. worthy of the Marx Brothers or Mel Brooks,” wrote John Cassidy, the New Yorker’s economics correspondent.

For taxpayers, it looks to be another example of the old adage that no good deed goes unpunished.

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Soros Pushes US Bailouts and Weapons for Ukraine by Ron Paul

“So George Soros will use his influence in the US government to put the American people on the hook for a bankrupt Ukraine — forcing us to pay for weapons, more military training, and Ukraine’s crippling debt. “

If you look at the track record of the interventionists you might think they would pause before taking on more projects. Each of their past projects has ended in disaster yet still they press on. Last week the website Zero Hedge posted a report about hacked emails between billionaire George Soros and Ukrainian President Poroshenko.

Soros is very close to the Ukrainian president, who was put in power after a US-backed coup deposed the elected leader of Ukraine last year. In the email correspondence, Soros tells the Ukrainian leadership that the US should provide Ukraine “with same level of sophistication in defense weapons to match the level of opposing force.” In other words, despite the February ceasefire, Soros is pushing behind the scenes to make sure Ukraine receives top-of-the-line lethal weapons from the United States. Of course it will be up to us to pay the bill because Ukraine is broke.

But Soros seems to have the money part covered as well. In an email to Ukrainian leaders, he wrote that Ukraine’s “first priority must be to regain control of financial markets.” Soros told Poroshenko that the IMF would need to come through with a $15 billion package, which was confident would lead the Fed to also come through with more money. He wrote: “the Federal Reserve could be asked to extend a $15 billion three months swap arrangement with the National Bank of Ukraine. That would reassure the markets and avoid a panic.”

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