U.S. Agriculture Secretary Ed Schafer said the federal government is considering outlays of as much as $25 million to help ethanol plants, which have been hit by volatile commodity prices:
http://www.bizjournals.com/phoenix/stories/2008/10/20/daily45.html?ana=from_rss
FDIC Chaiman Shiela Bair Senate Banking Chairman Christopher Dodd urges the Treasury to use its new authority to spur servicers to modify loans. "This slender provision alone can help countless deserving Americans escape the foreclosure trap set by predatory lenders," Sen. Dodd said in prepared remarks. FDIC Chairman Sheila Bair testified before the banking committe and stated "Specifically, the government could establish standards for loan modifications and provide guarantees for loans meeting those standards.............by doing so, unaffordable loans could be converted into loans that are sustainable over the long term."
http://www.fdic.gov/news/news/speeches/chairman/spoct2308.html
Showing posts with label Is This a Good Use of Taxpayer Money. Show all posts
Showing posts with label Is This a Good Use of Taxpayer Money. Show all posts
Thursday, October 23, 2008
Wednesday, October 22, 2008
Morgan Stanley's Bonuses Get Saved By You and Me
http://www.bloomberg.com/apps/news?pid=20601039&sid=azo7aySdpFHw&refer=home
This from Jonathan Weil on the Bloomberg website:
"You can imagine the devilish grins on the faces of Morgan Stanley employees last week, after the Treasury Department said it would pump $10 billion into the bank. Not only did we, the taxpayers, save their company, with the help of a Japanese bank named Mitsubishi UFJ Financial Group Inc. More importantly, we funded their 2008 bonus pool."
Mr. Weil goes on to say: "Here's all you really need to know to see who lost and who benefited most at the Five Families of Wall Street, otherwise known as Goldman, Morgan Stanley, Merrill Lynch, Lehman Brothers and Bear Stearns. From the start of their 2004 fiscal years through yesterday, the big standalone investment banks lost about $83 billion of stock-market value. During the same period, they reported about $239 billion of employee-compensation expense........So, for every dollar of shareholder value destroyed, the employees got paid almost three. "
This from Jonathan Weil on the Bloomberg website:
"You can imagine the devilish grins on the faces of Morgan Stanley employees last week, after the Treasury Department said it would pump $10 billion into the bank. Not only did we, the taxpayers, save their company, with the help of a Japanese bank named Mitsubishi UFJ Financial Group Inc. More importantly, we funded their 2008 bonus pool."
Mr. Weil goes on to say: "Here's all you really need to know to see who lost and who benefited most at the Five Families of Wall Street, otherwise known as Goldman, Morgan Stanley, Merrill Lynch, Lehman Brothers and Bear Stearns. From the start of their 2004 fiscal years through yesterday, the big standalone investment banks lost about $83 billion of stock-market value. During the same period, they reported about $239 billion of employee-compensation expense........So, for every dollar of shareholder value destroyed, the employees got paid almost three. "
Thursday, October 2, 2008
Costs Escalate for New York City’s “Hub to Somewhere”
The US taxpayer is currently on the hook for “only” about $2.2 Billion for New York City’s new transportation hub. However, it has been reported that while over $174 million has been spent for architects and engineers, no construction has yet begun. Nor does the report indicate where the funds will come from for the latest cost escalation. It would be reasonable to expect that additional funding will be requested from the taxpayer.
The latest details are contained in a 70 page report issued October 2, 2008 by the Port Authority of NY and NJ.
In 2004 the transportation hub project was unveiled with a projected cost of $2.2 Billion. In this, the latest round of re-estimates, the projected costs for the hub have now risen to $3.2 Billion. However, as no construction has yet begun and as construction is not scheduled for completion until the “probabilistic date” of the second quarter of 2014, it is also reasonable to assume that the costs will further increase. The report states that for the period 2004 to 2007, construction costs in NYC increased at the rate of 12% per year. The project is not even scheduled to go to market for the purchase of steel until “as early as” November 2008.
To put the cost of the hub into perspective, the cost of the “One World Trade Center, Freedom Tower” is currently projected to be less than the hub, at $3.1 Billion!
Cost projections include additional payments of $128 Million to the architects, for a total bill of about $302 Million for design. It is to be noted that the taxpayer’s money is administered through the Federal Transit Administration. A FTA spokesman has been quoted as saying that the design cost of "10% for design is consistent with best practices.” The report acknowledges however, that the FTA “has long called for greater project controls and a candid and on-going assessment of where this project stands.”
The report states that “If you consider how much value this money is buying, it begins to put the cost into perspective”.
The hub is intended to be a “Grand Central Station” for lower Manhattan and will be 800,000 square feet in size. However, according to the report, the hub will include “500,000 square feet of first class retail and restaurant space [which is] larger than the retail contained in the Time Warner Center” and is “a world-class retail venue serving all of lower Manhattan.”
As further stated in the report, this hub is to help “revitalize the Lower Manhattan Economy.”
I have to ask the question whether or not this is a good use of taxpayer money. While other communities all over the USA are struggling, the taxpayer is footing what could be argued to be most of the bill to construct a world-class shopping mall for Manhattan.
Note: After this was posted, a decision was made by the owners of the World Trade Center site in which they announced "scaled back designs for ...[the] transit hub....and delay...[of] other projects by several years...costs will still be more than $1 billion over budget".
The latest details are contained in a 70 page report issued October 2, 2008 by the Port Authority of NY and NJ.
In 2004 the transportation hub project was unveiled with a projected cost of $2.2 Billion. In this, the latest round of re-estimates, the projected costs for the hub have now risen to $3.2 Billion. However, as no construction has yet begun and as construction is not scheduled for completion until the “probabilistic date” of the second quarter of 2014, it is also reasonable to assume that the costs will further increase. The report states that for the period 2004 to 2007, construction costs in NYC increased at the rate of 12% per year. The project is not even scheduled to go to market for the purchase of steel until “as early as” November 2008.
To put the cost of the hub into perspective, the cost of the “One World Trade Center, Freedom Tower” is currently projected to be less than the hub, at $3.1 Billion!
Cost projections include additional payments of $128 Million to the architects, for a total bill of about $302 Million for design. It is to be noted that the taxpayer’s money is administered through the Federal Transit Administration. A FTA spokesman has been quoted as saying that the design cost of "10% for design is consistent with best practices.” The report acknowledges however, that the FTA “has long called for greater project controls and a candid and on-going assessment of where this project stands.”
The report states that “If you consider how much value this money is buying, it begins to put the cost into perspective”.
The hub is intended to be a “Grand Central Station” for lower Manhattan and will be 800,000 square feet in size. However, according to the report, the hub will include “500,000 square feet of first class retail and restaurant space [which is] larger than the retail contained in the Time Warner Center” and is “a world-class retail venue serving all of lower Manhattan.”
As further stated in the report, this hub is to help “revitalize the Lower Manhattan Economy.”
I have to ask the question whether or not this is a good use of taxpayer money. While other communities all over the USA are struggling, the taxpayer is footing what could be argued to be most of the bill to construct a world-class shopping mall for Manhattan.
Note: After this was posted, a decision was made by the owners of the World Trade Center site in which they announced "scaled back designs for ...[the] transit hub....and delay...[of] other projects by several years...costs will still be more than $1 billion over budget".
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