I did something I doubt few people have dared. I took the liberty of a 13-hour flight back from Asia earlier this week to read all 2,300-plus pages of the bill. Yes, all of them.
My law professor verdict: There are many things to applaud in this bill and much in there that will substantially enhance the government’s power to regulate the financial industry. On the whole, if you think that the financial industry needs more supervision and financial regulators more tools, you should be relatively happy. If you are an advocate of big world changing ideas like breaking up the banks, you will be less so.
Tag: economy
This is the Problem – Exhibit 1
Please forward to as many people as you can.
Spoiler Alert: The government does not care about you.
This isn’t a Democrat or Republican problem. This is good old fashion thievery.
How Goldman gambled on starvation | Johann Hari – The Independent
Goldman Sachs must die:
At the end of 2006, food prices across the world started to rise, suddenly and stratospherically. Within a year, the price of wheat had shot up by 80 per cent, maize by 90 per cent, rice by 320 per cent. In a global jolt of hunger, 200 million people – mostly children – couldn’t afford to get food any more, and sank into malnutrition or starvation. There were riots in more than 30 countries, and at least one government was violently overthrown. Then, in spring 2008, prices just as mysteriously fell back to their previous level. Jean Ziegler, the UN Special Rapporteur on the Right to Food, calls it “a silent mass murder”, entirely due to “man-made actions.”
Congress fails to pass SBA Recovery Act – Old Rules Apply
On a vote of 57-41, the U.S. Senate defeated legislation that would have keep the increased guarantees and fee waivers in place for another year. While lending to small business has been difficult at best, the return to the old rules will mean even fewer deals get done, since the banks will have more risk.
For working capital (7a) loans less than $150,000, banks will receive an 85% guarantee and will charge a 2% fee on the guaranteed portion. From $150,001 to $700,000 the guarantee is 75% and the fee is 3%. Loans above that amount will be 75% guaranteed with a 3.5% fee.
For SBA Express loans, the cap is$350,000 with a 50% guarantee and a 2% fee.
Most banks will allow rolling these additional fees into the loan.
Linked In’s Reid Hoffman to Millennials – Welcome to the New Feudalism | Peter Mehit
On a recent Tuesday, it was not a good day to be a millennial. They learned that, unlike any previous generation, they are entering their work life with an average of $22,000 of student loan debt. They were told by the HR chief of Intel that their liberal arts degrees (far and away the majority for them) are not valuable enough to stop the outsourcing of jobs offshore. One of their own, a 23 year old running a South Bay non-profit, described her struggles with debt and the bewildering number of jobs she’s held in the brief interval since graduation. All of this coming before Reid Hoffman, one of the founders of Linked In, declared that ‘…careers are dead’ and that they should expect to be employed as freelancers their entire working lives.
At a conference hosted by the Atlantic monthly, the National Journal and Allstate Insurance entitled “Millennials in the Next Economy” at UCLA, we learned some interesting facts about this generation who are 92 million strong. They are the most diverse generation ever: 40% are minorities. 28% are college graduates, making them the best educated (in terms of degrees, at least) of any previous generation, with 42% currently in school. 26% are seeking employment. Politicians should note that 72% are registered to vote and 39% believe the country is headed in the wrong direction.
But the one statistic that I found most interesting is, despite the economic collapse and the situation they find themselves in, 60% believe that they are in control of their own destinies, that their decisions will primarily decide the outcome of their lives.
Continue reading “Linked In’s Reid Hoffman to Millennials – Welcome to the New Feudalism | Peter Mehit”
Goldman Sachs Should Cut Losses in SEC Standoff (Update1) – Bloomberg.com
Goldman Sachs Group Inc. may be better off cutting its losses instead of fighting what it terms “unfounded” fraud claims
Gov. Schwarzenegger Announces Loan Applications for Clean Energy Business Financing Program Available
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| The California Energy Commission today released the applications for the Clean Energy Business Financing Program (CEBFP), making available more than $30 million in low-interest loans to eligible California clean energy manufacturing businesses. The CEBFP will use American Recovery and Reinvestment Act (Recovery Act), State Energy Program (SEP) funds for 2.75 percent interest rate loans to private companies to reduce energy use, increase renewable energy generation, and create and retain California jobs.
“These loans for small business clean energy manufacturers will create jobs and upgrade our aging infrastructure,” said Governor Schwarzenegger. “California is paving the way for a new economic foundation for the 21st century, showing once again that what benefits the environment can also benefit the economy.” Loans to qualifying applicants will range from $50,000 to a maximum of $5 million and may be used to expand or retool existing facilities for the manufacturing of eligible energy efficiency or renewable energy products, components, systems and technologies. Loan funds are also available to successful applicants for projects generating either new production or expanded production of biomethane gas from biomass that is direct-injected into natural gas transmission lines. “What these clean energy entrepreneurs require is affordable capital – private and public funding that keeps jobs and manufacturing in California and strengthens the state’s economy,” said California Energy Commission Chairman Karen Douglas. “These low interest loans will help manufacturers to produce their renewable or energy-efficient products, benefiting Californians and recouping some of our state’s lost manufacturing jobs.” |
CA i-HUB Initiative- ROUND II GUIDELINES RELEASED
From Michael Gonzalez at the Governor’s Office of Economic Development:
The CA i-HUB initiative is designed to promote collaboration, create employment opportunities, shorten the commercialization process
and attract funding for technology. Our new colleague, Katy McKenzie, is the Assistant Deputy Director for Innovation at our office and will be the primary contact for the CA iHub Initiative. For more information about the program as well as the guidelines for Round II, please see the attached pdf files or visit our website at business.ca.gov.
*****Round II offers two application deadlines. Applications can be submitted on either May 20 or July 22!*****
Please send any questions about this initiative to katy.mckenzie@gov.ca.gov.
WePay, a legit threat to PayPal | usfst.com
Those of us who have been part of a group and needed to collect money from people know how awkward it can be, and this is where newly launched WePay comes in.
Homes Below the 37th Parallel Most Likely to Have “Underwater” Mortgages | Nielsen Wire
Generally speaking, the 37th parallel acts as the line of demarcation between the positive equity metros (north) and the negative equity metros (south). This parallel is located at approximately the border of Virginia and North Carolina or Utah and Arizona.
Dispatches From The Front 