From the Wall Street Journal:
“There’s a real question as to whether the massive bond-buying program known as quantitative easing was worth the cost, former Federal Reserve official Andrew Huszar said Tuesday. Huszar, a senior fellow at Rutgers Business School and a former managing director at Morgan Stanley, noted a few of the program’s unintended effects.
Huszar apologized for his role in QE in a Wall Street Journal op-ed published Monday.
‘I can only say: I’m sorry, America,” he wrote. “The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.’”
It was also a back door bailout of the Blue State political machine. Quantitative Easing was intended to bail out the insolvent Blue State public pension funds which require high rates of return from Wall Street in order to pay otherwise unsustainable benefits to public union pensioners and Democrat politicians. The stock market as it now exists has absolutely nothing to do with the “real” economy of goods, services and most importantly, jobs and income.”
The AFL-CIO plans to “organize” non-working leftists and invite them to join the AFL-CIO in order to address a crisis in membership. The Center expects that these new associations will be referred to as “leisure unions” and will advocate for higher government assistance payments to those who vote Democrat for a living.
In addition the AFL-CIO will attempt to union-organize the South because “the labor movement needs to follow the workforce, which is moving down south” [to escape the labor movement].
So Detroit, or more likely, the State of Michigan, is paying a “bankruptcy expert” to manage Detroit’s financial mess and the bankruptcy expert Emergency Manager hires his former law firm at $1000 per hour to do the work the Emergency Manager was hired to do. This should go over well with the natives. From CBS Detroit:
“Emergency Manager Kevyn Orr approved the fees totaling about $1.4 million, but what makes this even more controversial is that the law firm getting the money is Jones Day – that’s Orr’s former law firm. Oh, you want some more controversy? That $1.4 million is just for six weeks of work,” Langton said.
The report says the costs were associated with sophisticated restructuring advice, labor and pension analysis, and Chapter 9 planning. Orr has defended the expense, saying top lawyers are needed because of what’s at stake . . .
Orr is a bankruptcy expert hired in March by the state to fix Detroit’s finances . . .
Former New York State Lieutenant Governor Betsy McCaughey reports that taxpayers will spend billions to fund permanent Obamacare implementation and outreach programs which will not only sign up potential Obamacare subscribers but will also register the uninsured to vote (as Democrats of course) and enroll them in any other available welfare programs.
Of course, the outreach will be done by reliable Democrat voter recruiters like the NAACP, SEIU and AFL-CIO, among others.
Who doubts that the Schumer/Rubio Amnesty bill includes similar outreach programs designed to draw illegal immigrants and their friends and families “out of the shadows” and into the taxpayer-funded, Democrat-voting welfare complex?
As most of us know, actions have consequences. The potentates of Detroit have ignored the inevitable consequences of their fiscal and moral profligacy for over forty years. Now the rest of us will pay the bill in one way another, whether through state and federal bailouts or through higher municipal and state borrowing costs. The architects of the disaster will pay no price, rather, most will collect lucrative pensions.
Emergency Manager Kevyn Orr’s plan to suspend payments on $2 billion of Detroit’s debt threatens a basic tenet of the $3.7 trillion municipal market: that states and cities will raise taxes as high as needed to avoid default . . .
“It definitely sets a precedent, and there’s definitely going to be a penalty going forward for the city and the state,” said Dan Solender, director of munis at Lord Abbett & Co. in Jersey City, New Jersey. The company oversees $19.5 billion of local debt.
“Mayor Bing said he thinks it would make sense pass a law that mandates that new employees of the city [Detroit] remain residents of the city of a period of seven years.
“In seven years a lot of things can change. And I’m hopeful in seven years we’ll see the city change and people will want to come back to the city,” he said.”
CBS News, interviewing Detroit Emergency Manager Kevyn Orr:
“I’ve been spending virtually every day from March 25 when I got here, looking at the city’s financials. This is an emergency. I’ve got 16 and three-quarters months to deal with it,” he said. “This is truly a financial emergency and we need to move with speed because frankly, we can’t be here in the same position next year.”
In the report, Orr uses charts and graphs to paint the bleak picture of the city’s finances, including over $15 billion in long-term debt and an accumulated operating deficit of $325 million.
“We’ve been collecting operating deficits at about $18 million to $20 million a year. That’s nobody’s fault, I think, frankly, the mayor and the council has done the best they can with what they have.”