President Obama's Weekly Address 9/19/15 : It’s Time for Congress To Pass a Responsible Budget

WASHINGTON, DC — In this week's address, the President discussed the significant progress we have made in our economy since the financial crisis seven years ago this week, and the steps we can take to build on that momentum and strengthen the economy for the long term. Thanks to the hard work and resilience of folks around the country, our businesses have created over 13 million jobs over the past 66 straight months, housing is bouncing back, manufacturing is growing again, and the unemployment rate is the lowest it’s been in over seven years. We’ve come a long way from the darkest days of the financial crisis, but there is still more to be done. To keep our economy growing, we must avoid self-inflicted wounds and damaging brinksmanship: that starts with Congress passing a responsible budget before the end of the month. The President has called on Republicans in Congress to stop playing games with our economic progress and instead do its job and pass a budget that reverses the harmful cuts known as the sequester and avoids shutting down the federal government.

President Obama's Weekly Address 9/12/15: A New College Scorecard

WASHINGTON, DC — In this week's address, the President announced the launch of a new College Scorecard, meant to help students and parents identify which schools provide the biggest bang for your buck. Designed with input from those who will use it most, the Scorecard offers reliable data on factors important to prospective students, such as how much graduates earn, and how much debt they have when they graduate. In an economy where some higher education is still the surest ticket to the middle class, the choices that Americans make when searching for and selecting a college have never been more important. That’s why the President is committed to making sure there exists reliable information that helps students find the college that best fits their needs so that they can succeed.

President Obama's Weekly Address 7/25/15: Wall Street Reform is Working

In this week's address, the President speaks to the progress we have made in making our financial system stronger, safer, and more fair in the years since financial crisis.

President Obama's Weekly Address 10/27/12: Protecting the American People with New Wall Street Reforms

WASHINGTON, DC— In this week’s address, President Obama highlighted the work of the new independent consumer watchdog he fought to create, which stands up for consumers and protects Americans from mistakes made by the companies who determine your credit scores. Republicans in Congress have tried to roll back consumer protections that help prevent big banks from creating another financial crisis, but the President refuses to let that happen and will continue to fight for working Americans as we move this country forward.

President Obama's Weekly Address 2/29/12: It’s Time for Congress to Help Responsible Homeowners

n this week’s address, President Obama told the American people that four years ago this month, a financial crisis that was largely caused by irresponsibility in the housing market threatened to destroy the economy. Four years later, the housing market is slowly healing, but we’re not done yet. That’s why the Administration has taken aggressive steps to help families stay in their homes, including giving responsible homeowners a chance to save thousands of dollars every year by refinancing their mortgages. But we need Congress’s help to do more. In February, the President sent Congress a plan to cut red tape so every responsible homeowner gets the chance to save about $3,000 a year on their mortgages by refinancing at historically low rates. It’s time for Democrats and Republicans to act on this plan when they return in November so that we can help hardworking families and strengthen the middle class.

Middletown's School Board President Laura Agin To Gov. Christie: "We Get It"

At last week's March 4th "Community Forum on State Aid Cuts" held by the Middeltown Board of Education, School Board President Laura Agin read the following statement. The statement was frank, to the point and said exactly what many need to say and what others need to hear:

"On behalf of the Middletown Board of Education, I would like to tell you all: We Get It. We understand New Jersey's fiscal crisis. We realize the state is running out of money and we appreciate our governor's need to fill a multi-billion dollar budget gap. We know that no part of the public sector has been left untouched and we accept that school aid needed to be appropriated to assist in solving the state's budget shortfalls. Middletown gave; we gave $2.8 million.

We strive for efficiency. Our budgets are developed including all of our stakeholders. We involve Parent Information Groups and Ad Hoc Committees. We have passed seven of our last eight budgets by educating our community and fostering an understanding of the efficiencies in our district. We have remained well below the 4% state mandated budget cap each of these budget years despite ever decreasing state aid to Middletown. We have diligently maintained a fund balance through prudent budget management, as required by law. We have absorbed unfunded state mandates while maintaining the integrity and quality of other programs and services.

We have continued to build on these efficiencies by improving the way we deliver instruction. We have developed programs to keep students in district thereby reducing costly out of district tuitions. We have decreased our need for support staff by introducing best practice instructional models in our elementary and middle schools. We have made strategic reductions in order to modernize our district without adding to the overall budget. We implemented full day kindergarten with no cost to the community by restructuring teaching assignments.

We've tackled tough issues. Negotiations with our bargaining units have consistently yielded positive results for our district. We have achieved cost savings by increasing health care co-pays and eliminating traditional insurance plans for employees. We have negotiated caps for accrued sick and vacation time. Recent negotiations with our Administrators Association yielded the lowest cost increase in the county, maybe the state.

We have heard that's not enough. We understand there should be parity between the real world and the public sector. Our economy demands it, our community now expects it. But Middletown cannot achieve this in isolation. Past Middletown boards have tried to rein in contracts with dire, long-term consequences to the district. We cannot and will not do that again.

But make no mistake. The leadership in this district is willing to continue to make tough choices. We will support legislative reform designed to provide the tools we need to further reduce costs. We will continue to work with our township to increase shared services and inter-local agreements.

We recognize and fully understand New Jersey's fiscal crisis. Though begrudgingly, we accept that our fund balance, our budgeted tax relief, our $2.8 million, funded primarily by taxpayers in this district, has been appropriated by the state to plug the state budget hole. You will hear Mrs. Bilbao outline cost reduction measures to be implemented for the coming year to account for this loss of funds.

But now we truly believe we have paid our share. The portion of our state aid has been a mere 16% of our total revenue despite a state average of 41%. Our towns are measured by the quality of our educational programs. We will not be able to sustain our momentum or continue to deliver quality instruction with further reductions in our state revenue. Our taxpayers should not be asked to pay a larger portion again. We implore our representatives and our governor to maintain our current level of aid going forward."

Update:

I failed to mention that the text of Laura Agin letter was included in an email newsletter from

the Dollars and Sense Education Advocacy group. This group has conducted extensive research, published position papers, and sponsored public forums, all focused on the issues facing schools, school children, and taxpayers .

President Obama's Weekly Address: 6/20/09

The President explains his plan to address one of the major causes of the current economic crisis -- the breakdown of oversight leading to widespread abuses in the financial world. The new Consumer Financial Protection Agency will have the sole job of looking out for the financial interests of ordinary Americans by banning unfair practices and enforcing the rules. This is a cornerstone in Americas new economic foundation.

McGovern Warns Obama of LBJ Legacy

In 1964, President Johnson said of Vietnam that "I don't think it's worth fighting for, and I don't think that we can get out. Its just the biggest damn mess I ever saw.'' Yet Johnson escalated the conflict and America became bogged down in Southeast Asia for more than a decade. Former Senator George McGovern recently sat down with ANP and said that President Obama runs the risk, like Johnsons Great Society, of hobbling his ambitious domestic goals if he continues to send troops into Afghanistan.

Governor Jon S. Corzine :Doing What's Right

The following is a letter from Governor Corzine that I received in my inbox a few hours after he presented his budget to the State Legislature yesterday:

Friends-

Today, I submitted my executive budget for the 2010 fiscal year to the people of New Jersey. I take this responsibility seriously, and though this is my fourth budget, I remain as committed to doing what's right for the long-term economic health and prosperity of our state as I was when I submitted my first.

Because of the additional challenges facing our state brought on by the national financial crisis, I approached this budget with three primary objectives:

Protect education, health care and the state’s most vulnerable. I have proposed adding $300 to state aid for schools, $25 million in new aid for pre-k expansion and $149 million for Family Care. I've also proposed over $1 billion for 1 million New Jersey residents through direct property tax relief by insuring that Seniors receive the same property-tax rebates as last year, and preserving rebates for non-senior households earning $75,000 or less.

Allow New Jersey to remain ahead of the national economic crisis. This is my smallest budget since becoming Governor, with over $4 billion in cut spending. I have cut the operational costs of state government by more than $380 million, and reduced 850 line items, including proposed wage freezes and furloughs for state workers that will save our state hundreds of millions of dollars (because I believe that is a better to keep people employed and insured than on unemployment lines and Medicaid rolls). I have also asked the most fortunate in our society should pitch in, which is why I'm slightly increasing the income tax rate for the just-over 1 percent of New Jerseyans earning over $500,000.
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Prepare NJ to capitalize when the national economy rebounds. My Economic Assistance & Recovery Plan introduced last fall, in partnership with the Legislature, provided relief for those that need it now, while dramatically improving the State’s business climate and creating a jobs program to pave the way for a better tomorrow. I have worked hard to bring fiscal responsibility to Trenton by eliminating gimmicks, implementing spending cuts and making government itself more efficient and affordable. As such, New Jersey is well positioned to deal with this national crisis, and when the tide begins to turn we will be able to quickly put people back to work and increase funding for the programs that we all value.

We anticipated this downturn last year and cut the budget last year by the largest amount ever, setting the table for this budget. I am proud that we have be able to balance the most difficult budget in state history without a broad-based income or sales-tax increase and without hurting the people hit hardest by the recession.

But this isn't about me. This is about not shying away from the difficult decisions and doing what's right for the families of New Jersey.

I have laid out a clear set of priorities for the state, and put us on a path that I believe will keep New Jersey ahead of the curve in handling the national financial crisis. I've had to make some tough calls to forge this honestly-balanced budget, but I believe that this budget maintains our core values as a State by ensuring that we continue to nurture our children, honor our seniors, and protect the most vulnerable among us.

I look forward to hearing your thoughts, ideas, and reactions in the weeks ahead, and I thank you for your continued support.

Governor Jon S. Corzine

President Obama's Weekly Address: 2/28/09

President Obama explains how the budget he sent to Congress will fulfill the promises he made as a candidate, and assures special interests that he is ready for the fight.

How The World Almost Came To An End At 2PM On September 18

Very Interesting - So how closed did the nation's banking system come from a total meltdown on September 18th of last year? Extremely close, within hours as a matter of fact.

On C-Span, Rep. Paul Kanjorski (D-PA) explained how the Federal Reserve told members of Congress about an electronic run on the banks "to the tune of $550 billion dollars" within "an hour or two" last fall.

According to Kanjorski, on September 18, 2008 the Fed tried to "stem the tide" by pumping money into the financial system but it didn't work and decided instead to announce an immediate increase in deposit insurance to $250,000 per account to stop the panic.

Said Kanjorski: "If they had not done that, their estimation is that by 2 p.m. that afternoon, $5.5 trillion would have been drawn out of the money market system of the U.S., would have collapsed the entire economy of the U.S., and within 24 hours the world economy would have collapsed. It would have been the end of our economic system and our political system as we know it." -Political Wire

Watch and listen to what Rep. Kanjroski had to say about this on C-Span yesterday morning. Its kind of scary if you really think about it and to find out that our banking system is not much better off today then it was it was 4 months ago makes you want to scratch your head. 

After hearing this, I now understand why Treasury Secretary Geithner feel that the new financial bailout plan needs to be so bold and large in scope.

Wall Street has its doubts about stimulus merits

By Ian Swanson - The Hill

Not everyone on Wall Street thinks the stimulus package Congress and President-elect Obama are constructing will solve the economy’s ills.

While many think a combination of tax cuts and spending will spur the economy at a time when consumers and businesses are keeping a tight grip on their cash, others are preparing for another plunge in markets.

“I think there’s still a big split here,” said Brian Gardner, a former aide on Capitol Hill who now offers analysis at Keefe, Bruyette & Woods. Some investors think “the stimulus package is not getting at the fundamental problems of the economy,” Gardner said, particularly the housing problem at the center of the crisis.

Axle Merk, the portfolio manager of Merk Investments, sees Federal Reserve actions to keep interest rates low as “propping up a broken system” and questions the wisdom of providing incentives for consumers to spend on mortgages and cars when they should be saving.

“I think as this thing progresses, they’re going to get frustrated,” he said of Washington policymakers. “Nothing will work out as planned.”

Read more >>> Here

Legalizing Marijuana Tops Obama Online Poll

Break out the blunts and pass the munchies, the results are in from the Change.gov online poll that asked for people's opinions on what are the most important issues that they would like to see an Obama administration address. The issue that topped list was wether or not the president elect would consider legalizing the use of Marijuana.

With all of the more pressing concerns that face our nation like the economy and Iraq, I found this rather amusing and I an sure it was not what team Obama was asking for.

  

The following letter was posted on the Congressional Blog page of The Hill, it was written by the National Organization for the Reform of Marijuana Laws Deputy Director Paul Armentano:

 
Be careful what you wish for.

Last week, the website Change.gov — the official website of the Obama Transition Team — asked the public to provide them with a list of the top public policy questions facing America. Visitors to the site were then asked to vote on which questions should take priority for the incoming administration.

According to the website, “participation … outpaced our expectations. … Since its launch … the Open for Questions tool has processed over 600,000 votes from more than 10,000 people on more than 7,300 questions.”

Ironically but perhaps not surprisingly the top question for the new administration — as chosen on and voted by the general public — was one most politicians seem utterly unwilling to talk about.

“Will you consider legalizing marijuana so that the government can regulate it, tax it, put age limits on it, and create millions of new jobs and create a billion dollar industry right here in the U.S.?”

To anyone thinking the #1 question was some kind of fluke, consider this: More than a dozen of the top 50 vote-getting questions pertained to amending America’s drug policies. For example:

Question #7: “Thirteen states have compassionate use programs for medial Marijuana, yet the federal government continues to prosecute sick and dying people. Isn’t it time for the federal government to step out of the way and let doctors and families decide what is appropriate?” The public’s demand for the Obama administration?”

Question #13: “How will you fix the current war on drugs in America? and will there be any chance of decriminalizing marijuana?”

Question #15: “What kind of progress can be expected on the decriminalization and legalization for medicinal purposes of marijuana and will you re-prioritize the “War On Drugs” to reflect the need for drug treatment instead of incarceration?”

Following the poll, the Obama Transition Team posted the following reply, “Over the next few days, some of the most popular questions selected by the Change.gov community will be answered by the Transition team, and their responses will be posted here on the site.”

So will Obama’s team respond to the demands of the electorate and initiate an honest, objective, and long-overdue review of U.S. Marijuana policies? Or will the incoming administration — like the outgoing one — hide their collective heads in the sand?

It was just over a month ago when statewide marijuana law reform initiatives in Massachusetts and Michigan prevailed with more votes than America’s soon-to-be 44th President — once again reaffirming the widespread popular support for changing our nation’s antiquated and punitive pot laws. It wasn’t clear that either the national media or the incoming administration were listening then. Are they listening now?

Newsletter From Rush Holt

With the continuing turmoil in our financial markets, we must address its effect on the retirement security of American families. According to the Congressional Budget Office, American workers have lost as much as $2 trillion in retirement savings over the last year. Americans rightly are worried that their savings will not be there to meet their needs as they hoped. We have also seen leading companies freeze or end their defined contribution, 401(k), plans. Further, even some defined benefit plans, which provide retirees with a guaranteed pension check, may be in doubt.

The House Committee on Energy and Labor, of which I am a member, continues to study ways to preserve defined benefit plans and strengthen 401(k) and other retirement plans. One step we must take is to suspend temporarily a federal regulation that will force individuals over 70 ½ years of age to make a withdrawal from their retirement account. This week, the House passed this with my support, and we await action by the Senate. The Census bureau estimates that 5.5 million seniors have IRA’s or 401 (k) plans and could be forced to sell financial assets at a tumultuous time in the market. I have heard from many New Jersey seniors, about these required minimum distributions for 2008. This Congressional Research Service report contains more information on this issue.

Of course, our committee cannot turn around the stock market and the whole economy. Nonetheless, our committee will continue our work to protect retirement security, and I hope to hear from you about any ideas you may have to address this issue.

Helping the World’s Poor

I previously have written about my interest in lifting millions around the world out of poverty by providing them access to small loans. Such microfinance programs have the power to transform the lives of the world’s poorest by providing access to small amounts of money (often less than $150) to start self-sustaining businesses. Microfinance programs are having a very positive effect around the globe.

Recently, I wrote a bipartisan letter requesting that World Bank President Robert Zoellick expand microfinance efforts. Specifically, my letter, signed by 92 Members of Congress, encourages the World Bank to create a $200 million grant program to reach the very poor with microfinance loans, and to establish regionally-focused Centers of Excellence. The global financial and economic crisis appears to be affecting the world’s poor badly. Increasing the availability of microfinance is one way we can help those most in need, both abroad and here at home as credit remains tight.

Help for Small Businesses
Recently, the Small Business Administration announced it is allowing banks to make 7(a) loans at interest rates based on the London interbank offered rate, which is lower than the standard U.S. prime rate. Many New Jersey banks offer the lower rate, and small businesses in the region will now be able to benefit. All businesses that are considered for financing under SBA’s 7(a) loan program must meet SBA size standards, be for-profit, not already have the internal resources (business or personal) to provide the financing, and be able to demonstrate repayment.

By the way, I was pleased to see Governor Corzine’s announcement this week creating the “InvestNJ Business Grant Program” to help stimulate capital investment and job creation. Under the program, companies can obtain $3,000 grants for each new job they create and sales tax reimbursements on capital purchases of $5,000 or more. Applications will be available next month. More information can be found here.

Sincerely,
RUSH HOLT
Member of Congress

Bailed-Out Citi Bank Goes on Toll Road Buying Binge

Can you believe this? After securing over $326 billion in bailout money and  debt guarantees, Citigroup just purchased a debt burdened Spanish toll road for $10 billion! 

I say if Citigroup has an extra $10 billion laying around then why not give it back to the american taxpayers that just bailed their asses out. 

From Moneynews.com -

" Debt-laden Spanish construction company Sacyr Vallehermoso said Monday it has agreed to sell its highway-operating unit, Itinere, to a Citigroup Inc. fund in a deal valued at nearly euro7.9 billion ($10 billion).

The sale involves euro2.87 billion in cash and euro5 billion in assumed debt, the company said.

Sacyr Vallehermoso has been hard hit by the collapse of Spain's real estate bubble and is eager to ease its debt load.

The sale of Itinere to Citi Infrastructure Partners, which needs regulatory approval, will reduce the Spanish builder's debt to about euro12.5 billion, the latter said in a filing with Spanish stock market regulators.

If this deal goes through, Sacyr Vallehermoso will have cut its debt by 37 percent since Jan. 1, it said.

Much of its debt stems from its acquisition two years ago of a 20 percent stake in Spanish oil company Repsol-YPF.

In September, Sacyr Vallehermoso put that stake up for sale and the Russian oil company Lukoil recently expressed interest in acquiring it.

The money Sacyr Vallehermoso would take in from the Citigroup deal is expected to reduce pressure to sell its stake in Repsol-YPF.

Citi Infrastructure Partners will offer to buy all of Itinere's stock at euro3.96 ($5.04) a share, the Spanish firm said.

The Spanish construction company will first sell Citigroup a 42.8 percent stake in Itinere, and once this is complete, another 11.6 percent stake, Sacyr Vallehermoso said.

After the acquisition, Citi Infrastructure Partners will resell some Itinere highways in Spain and Chile to Spanish infrastructure company Abertis for 621 million euros ($790 million), Sacyr Vallehermoso said."

Deficits and the Future

Nobel Laureate and NY Times columnist Paul Krugam makes the case  this morning for the US government to spend  its way out of this economic  free fall. He argues that by aggressively expanding our economy, it will prevent it's free fall and that we shouldn't worry about large budget deficits at this time:

"Right now there’s intense debate about how aggressive the United States government should be in its attempts to turn the economy around. Many economists, myself included, are calling for a very large fiscal expansion to keep the economy from going into free fall. Others, however, worry about the burden that large budget deficits will place on future generations.

But the deficit worriers have it all wrong. Under current conditions, there’s no trade-off between what’s good in the short run and what’s good for the long run; strong fiscal expansion would actually enhance the economy’s long-run prospects.

The claim that budget deficits make the economy poorer in the long run is based on the belief that government borrowing “crowds out” private investment — that the government, by issuing lots of debt, drives up interest rates, which makes businesses unwilling to spend on new plant and equipment, and that this in turn reduces the economy’s long-run rate of growth. Under normal circumstances there’s a lot to this argument.

But circumstances right now are anything but normal. Consider what would happen next year if the Obama administration gave in to the deficit hawks and scaled back its fiscal plans.

Would this lead to lower interest rates? It certainly wouldn’t lead to a reduction in short-term interest rates, which are more or less controlled by the Federal Reserve. The Fed is already keeping those rates as low as it can — virtually at zero — and won’t change that policy unless it sees signs that the economy is threatening to overheat. And that doesn’t seem like a realistic prospect any time soon..."

Read more of what Paul Krugman has to say HERE about the economy.

Coming up: A huge pension bailout?

The housing bubble lead to the mortgage crisis, then the financial crisis and the auto industry crisis, commercial real estate is on the verge of a crisis with so many businesses filing for bankruptcy and closing their doors, can a pension bailout be far behind? Michael Brush seems to think so.

Brush has posted an article on MSN Money explaining why he thinks a pension bailout is not far behind:

"Americans with 401(k) plans in stocks have been feeling queasy for months as they've watched their savings vanish at alarming rates.

But workers covered by traditional pension plans -- the ones 100% funded and managed by companies for employees -- have so far avoided that sinking feeling.

Unlike the 401(k) crowd, they don't get monthly statements bearing the grim news of the lousy performance of the investments in their pension plans.

But with stocks and bonds crushed, many of these old-school defined-benefit plans now look downright wobbly. If the economic weakness continues long enough, many could end up in the hands of the independent government agency responsible for taking over failing plans...."

Treasury may have to request funds from Congress

The Hill, Leading the News-

Treasury Secretary Henry Paulson is close to running out of money and soon may have to ask Congress for access to the rest of the $700 billion package it approved for rescuing the economy.

Paulson has said that he intends to leave the second $350 billion of the package for President-elect Barack Obama's administration, but the government's moves in just the last two days leave Paulson with only about $20 billion in funds for the nearly two months remaining until Obama’s inauguration.

The continuing market volatility and tough credit markets could force Paulson to seek access to the funds, particularly as the government continues to unveil new programs to prop up the economy.
On Tuesday, Paulson did not rule out requesting access to the remaining funds.

“When the time is right, we’ll avail ourselves of the congressional process,” Paulson said during a press conference.

Treasury has the authority to spend $350 billion of the $700 billion Congress authorized in October under the Troubled Asset Relief Program, known as TARP. The government has committed about $330 billion so far, leaving it with about $20 billion before it would have to make its request to Congress.

Paulson must submit to Congress a plan on how Treasury would use the money in order to access the final $350 billion. Lawmakers could choose to restrict how Treasury can use the money.

Two new efforts that the government announced this week have pushed Paulson closer to having to make a request.

One day after putting together $20 billion in aid for Citigroup, Treasury announced it would provide $20 billion to the Federal Reserve for credit protection as part of the two new programs to prop up the home mortgage and consumer credit markets.

The Federal Reserve offered assurances Sunday on $306 billion in troubled assets for Citigroup as part of the effort to save the firm, which was seen as being on the verge of collapse.

The government has set up a new $200 billion program aimed at unfreezing lending in the consumer credit markets for student loans, car loans and other asset-backed securities. Paulson also suggested that the program could be expanded to additional types of assets, such as commercial mortgage-backed securities and non-agency residential mortgage-backed securities.

“That $200 billion is a starting point. This is — it's going to take a while to get this program up and going. And — and then it can be expanded and increased over time,” Paulson said.

The Federal Reserve set up a program on Tuesday that could support up to $600 billion in debt issued by or backed by the hobbled government-sponsored enterprises, Fannie Mae and Freddie Mac. "Nothing is more important to getting through this housing correction than the availability of affordable mortgage finance," Paulson said.

Obama Pledges to Cut Wasteful Spending

Associated Press -
President-elect Barack Obama pledged to make deficit reduction a goal of his administration Tuesday, but only after recovery from the financial crisis is well under way.

Bailouts for Bankers, Not a Cent for Autoworkers

John Nichols, The Nation-

This is the part of our nation's surreal economic crisis that seems particularly surreal:

The U.S. auto industry, which employs 3 million Americans in auto plants, parts and supplier networks and dealerships nationwide is broadly understood as being essential to maintaining America as an industrial force. It's financial collapse, which even critics of moves to bailout the industry suggest is imminent, would devastate workers, retirees and communities in every state of the nation. Despite the grumbling from anti-union zealots, the auto giants have radically retooled in a manner that makes the cost of producing a vehicle at a unionized plant of General Motors, Ford or Chrysler roughly equivalent to the cost of running a car off the line at a non-union plant. And to top it all off: Auto plants actually produce something that most Americans consider to be useful.

Yet, proposals to provide what now seems to be a very small bailout -- $25 billion -- are currently stalled.

At the same time, the whole of the federal government is scrambling to buy as much as $50 billion in "toxic assets" -- bad loans and other products of irresponsible financial practices that are of dubious value -- from Citigroup, a global banking concern that makes money by charging working families exorbitant interest rates for credit. According to the Wall Street Journal, "[The move to protect the banking concern] would mean taxpayers could be on the hook if Citicorp's massive portfolios of mortgage, credit cards, commercial real-estate and big corporate loans continue to sour."

Perhaps, in some wild calculation of American interest, Citicorp is worthy of a bailout.

But what mad calculus would make Citigroup more worthy than the auto industry?

And why the urgency with regard to Citigroup and the casual disengagement with regard to the industrial giants that, for all their flaws and perils, remain what Barack Obama correctly described as "the backbone of American manufacturing"?

Something is fundamentally wrong with a federal government that offers bankers a bailout and autoworkers as cold shoulder.