Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Just in from oral surgery ... thank god for pain killaz ...I'm just catching up ... and feeling grizzly.

Troubled Asset Relief Program?! WTF?!

The U.S. Treasury plans to use as much as $50 billion from the country's Exchange Stabilization Fund to temporarily protect investors from losses on money- market mutual funds.

"$50B" so-called Exchange Stabilization Fund is referred to an AP story as a "Depression-era fun." Now US haz research hook, doubtless a provision of the Emergency Banking Act. NB - FDR order the RFC to act as treasury agent in gold trading, devaluing USD virtually overnight.

The Treasury will insure for a year holdings of publicly offered money-market [mutual?!] funds that pay a fee to participate in the program. Retail and institutional funds are eligible, the department said today in a statement.

This is FDIC fiduciary "mission-creep" in real-time. Mutual fund investments are not insured according to USC because those funds are not saving (account holder assets). FRB acts, Congress reacts -- AUMF tactic executed in new arena. Congress, especial DP caucus, will "fall" for double-down authorization. Why? Barack Obama's Hamiltonian coat tails.

"Create Automatic Workplace Pensions
Currently, 75 million working Americans --roughly half the workforce-- lack employer-based retirement plans. Only half of female workers have access to an employer-based retirement plan, and only 39 percent participate in those plans. Even when workers are given the option of joining employer-base plans, many do not take up the option because it requires considerable work to research plans and investment portfolios, and enroll in the plan. Barack Obama's retirement security plan will automatically enroll workers in a workplace pension plan. Under his plan, employers who do not currently offer a retirement plan, will be required to enroll their employees in a direct-deposit IRA [investment retirement account] account that is compatible to existing direct-deposit payroll systems. Employees may opt-out, by signing a written waiver. Experts estimate that this program will increase the savings participation rate for low- and middle-income workers from its current 15 percent level to around 80 percent.

"Expand Retirement Savings Incentives for Working Families
Women are less likely than men to have significant income from pensions and other savings at retirement. Barack Obama will ensure savings incentives are fair to all workers by creating a generous savings match for low and middle-income Americans. Obama will expand the existing Savers Credit to matchh 50 percent of the first $1,000 [$500] for families that earn under $75,000, and he will make the tax credit refundable. To help ensure that this proposal actually strengthens retirement investments, the savings match will be automatically deposited into designated personal accounts by using the account information listed on IRS tax filings. Coupled with the automatic workplace pension plan, this proposal will stimulate tens of millions of new Americans to invest for retirement. Over 80 percent of the savings incentives will go to new savers, and 75 percent of people eligible for the incentives wo are expected to participate in the new program do not currently save."

"Blueprint for America's Working Women and Families

Obama expects to win in Nov, assuring the "democratization" of capital risked with finance managers --defined contributions rather than defined benefits, rather than real wage growth. And even if he doesn't win, McCain is committed to keeping the capital market primed with trusts' funds.

The one-percenters we call representatives are sick.

Diversity is the key to economic and political evolution.

by Cat on Fri Sep 19th, 2008 at 01:49:48 PM EST

Others have rated this comment as follows:

Migeru 4


Occasional Series