49 Responses to Latest House debt bill fails in the Senate: Who will save the Republic?

  1. luisport says:

    PRESS RELEASE

    ————————————————————-​——————-

    `A Valid Warning:’ BIS Warns of Worse Crunch To Come

    June 30 (EIRNS))—City of London mouthpiece Ambrose Evans-Pritchard of the Daily Telegraph commented on the new annual report of the Bank for International Settlements (BIS) today, saying that its aim is to “face challenges last seen during the onset of the Great Depression.”

    Evans-Pritchard’s report is a “valid warning shot of the sudden change in the world financial situation for the worse which is in process,” commented Lyndon LaRouche.

    Written by departing chief economist Bill White, the BIS’s 78th Annual Report, released today, states: “The current market turmoil is without precedent in the postwar period. With a significant risk of recession in the U.S., compounded by sharply rising inflation in many countries, fears are building that the global economy might be at some kind of tipping point,” it said. “These fears are not groundless. The magnitude of the problems yet to be faced could be much greater than many now perceive. It is not impossible that the unwinding of the credit bubble could, after a temporary period of higher inflation, culminate in a deflation that might be hard to manage, all the more so given the high debt levels.”

    Pritchard comments that the European banks have suffered worse losses on U.S. property than American banks, with net dollar liabilities totalling $900 billion, mostly short-term loans that have to be rolled over, The BIS report cautions the European Central Bank to handle its lending data with great care. “The statistics may understate the contraction in the supply of credit,” it said.

    The report then points to Eastern Europe where short-term foreign debt is 120% of reserves, mostly in euros and Swiss francs, and where current account deficits are 14.6% of GDP. It also points to the vulnerability of China, given that 20% of its exports go to the U.S.

    Global banks—with loans of $37 trillion in 2007, or 70% of world GDP—are still in the eye of the storm. “Inter-bank money markets have failed to recover.” Of greatest concern at the moment is that still tighter credit conditions will be imposed on non-financial borrowers. “In a number of countries, commercial property prices are beginning to soften, traditionally bad news for lenders. These real-financial interactions are potentially both complex and dangerous,” it said. “Explicit and implicit debts of governments are already so high as to raise doubts about whether all non-contractual commitments will be fully honored.”

    The report then notes that the sub-prime crisis was only the “trigger,” not the cause of the disaster, the cause being loose credit of the Greenspan years and the securitization: “It cannot be denied that the originate-to-distribute model (CDOs, CLOs, etc.) has had calamitous side-effects. Loans of increasingly poor quality have been made and then sold to the gullible and the greedy,” he said.

    White writes that there will be more bailouts of banks but the ” ‘socialized risks’ should be taken on by political systems, and not dumped on the books of central banks.” The report concludes: “Should governments feel it necessary to take direct actions to alleviate debt burdens, it is crucial that they understand one thing beforehand. If asset prices are unrealistically high, they must fall. If savings rates are unrealistically low, they must rise. If debts cannot be serviced, they must be written off. To deny this through the use of gimmicks and palliatives will only make things worse in the end.”

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  2. Leon says:

    Crazy bankers! They made sh*+ out of the USA.

    Like

  3. luisport says:

    The House and Senate will convene Saturday afternoon as they continue negotiations to raise the debt ceiling. But with just days to act before one or more of the major credit ratings agencies downgrades U.S. debt, Democrats and Republicans can’t seem to work together.

    The plan put forward by Speaker of the House John Boehner to raise the borrowing limit and cut the deficit passed the House Friday, only to quickly fail in the Democrat-controlled Senate.

    Boehner had called an earlier proposal Republicans’ final offer on Thursday, before being forced to make it more unpalatable to Democrats to gain GOP votes in the House.

    The revised Boehner plan raises the debt limit in two stages and $917 billion in cuts now, and introduces a requirement that Congress cut an additional $1.6 trillion from the deficit pass a balanced budget amendment to the Constitution before the second increase is authorized. It’s a bill the Senate will vote down, and President Barack Obama has said he will veto.

    In the Senate, Majority Leader Harry Reid filed a cloture motion on his rival proposal, setting the stage for a key 1 a.m. vote on Sunday to end debate on the measure. If it doesn’t pass, then Senate Republicans can hold the floor as long as they want, making it exceedingly difficult to meet the August 2nd deadline.

    It usually takes the Senate around six days to act on even the most routine legislation, former Reid aide and Democratic consultant Jim Manley said Friday, though with certain procedural tricks there is still hope the Majority Leader can get a deal through by Tuesday.

    The current Reid plan cuts between $2.2 trillion and $2.4 trillion from the deficit, including about $1 trillion in savings from the wars in Iraq and Afghanistan — which has been called a gimmick by Republicans.

    His plan also calls for steep spending cuts as part of a bipartisan deficit reduction committee next year, but he doesn’t make raising the debt limit contingent on the results

    Reid has repeatedly modified his plan to court Republican votes, including adopting the backward technique proposed by Senate Minority Leader Mitch McConnell, which would delegate the authority to raise the debt limit to Obama — as long as Congress doesn’t disapprove by a two-thirds margin.

    In the meantime the House is expected to vote down the Reid plan Saturday afternoon, as a sign it still stands by the Boehner plan, but that may not last. House Rules Committee Chairman David Dreier (R-CA) seemed to think the House would have to act on another plan.

    “We are going to have to come to some kind of agreement [with Senate Democrats and President Obama],” he said Friday.

    Even tea-party Sen. Rand Paul (R-KY), a supporter of neither plan, could see that ultimate solution to raising debt limit includes a compromise, telling Fox News Thursday that it is “some amalgamation” of the original Boehner Reid plans.

    If Reid does not believe his current proposal can reach the 60-vote threshold in the early morning vote, or that modifications are needed to get the bill passed the House, he has just one more opportunity to push a compromise plan through the Senate.

    Reid would have until 11:59 p.m. tonight to file cloture on a modification of the Boehner bill, which would allow the Senate to hold a final vote on the legislation on Tuesday at earliest, sending it to the House for a high-stakes vote with hours until the government must prioritize payments.

    It’s far from certain that Congress can raise the debt limit before the August 2nd deadline, but if a compromise does not form today it will likely be too late.

    Read more: http://www.businessinsider.com/senate-house-congress-debt-ceiling-deadline-compromise-elusive-2011-7#ixzz1TbJKkBDD

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  4. luisport says:

    10:00am | Adjusting the clock.
    When we started our countdown clock at the beginning of the month, we set the end date as 12:01 AM August 2nd. We’ve now changed that to August 3rd on the advice of the Treasury Department, which has said the deadline for a deal is 11:59 PM August 2nd.

    Read more: http://www.businessinsider.com/live-coverage-congressional-debt-ceiling-showdown-2011-7#ixzz1TbUn1QLz

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  5. luisport says:

    10:57am | Boehner calls Reid bill “dead on arrival” in the House:
    From Speaker of the House John Boehner’s blog:

    “Today the House of Representatives will bring up – and defeat – Senate Majority Leader Harry Reid’s debt limit legislation. This vote will demonstrate that the Reid bill cannot pass the House. This will also expose any Senate vote on the Reid bill as a pointless political exercise that squanders precious time as the specter of a job-crushing default looms.”

    Read more: http://www.businessinsider.com/live-coverage-congressional-debt-ceiling-showdown-2011-7#ixzz1TbVbRkgp

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  6. Stephen says:

    I agree with most of the Kaizer report, but I cannot blame Obama however finance-and-economics illiterate he is. Obama shouldered the problems from past administrations, particularly from Bush’s. The case is that wars cost America heavily that annual government deficits piled up into a ballooning debt, while a large chunk goes to debt servicing and interest payments which are, of course, unproductive payments because these payments should have gone to investments such as building more meaningful infrastructure, schools, etc., had the wars not existed. If Obama is a finance-and-economics illiterate, Bush is a bloody criminal and a scandal. I wonder why he isn’t brought to the court and face charges and be put behind bars (which also makes me wonder if there is a problem with the laws and their enforcement?).

    To add, the huge and complicated problems now faced by the US of A are starting to explode. My thinking is that these problems were not detected when America was in its long years of prosperity. And these small problems keep piling up. Credit cards, consumerism, spending beyond capacity. It was the good old America. Credit cards and consumerism drove-up growth, and spending was like sky-is-the-limit and purely fantastic. It was a good night sleep filled with lovely dreams back then; now, it is not only nightmare, it is real.

    The bubble has to pop. The only solution is to swallow the bitter pill. Raising the debt ceiling doesn’t really do any good, and it doesn’t create any significant changes. A house that is on the verge of collapse, no matter how quick fixes you do, will eventually collapse. Let it collapse. Learn from it. And reflect why all this has happened. That is the solution. If the ceiling were raised, the problems keep coming back. The longer the delay, the heavier and uglier the fall. It will be more hellishly painful. But these events may have been prophesied long before, and it is not only the default clock that is ticking, we are heading toward 2012, extinction.

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  7. dingdong says:

    This has been a charade all along from all partcipants. They already have something that they want in place, but had to play this stupid game out for everybody to watch and see.

    It’s gonna be really ugly too!
    Good luck everybody and GOD Speed!

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  8. nitewarlok says:

    The plan was started long ago in my opinion, it seems that the time may be ripe for it, so no matter what the U.S. does the families want it to happen and that’s that.

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  9. luisport says:

    1:46pm | House begins debate on Reid bill.
    Vote should be within the hours, and it is likely to fail.

    ——————————————————————————–

    1:38pm | McConnell wants a vote on the Reid plan today.
    He says 43 Republicans are opposed to the Reid plan in its updated form.

    Read more: http://www.businessinsider.com/live-coverage-congressional-debt-ceiling-showdown-2011-7#ixzz1Tc0ZX4bE

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  10. luisport says:

    Failed again! 3:18pm | Running out of time.
    Reid tells GOP Senators they have until midnight tonight to relay any changes and to get them into his compromise plan. Reid must file cloture by then to set up a final vote on Tuesday.

    ——————————————————————————–

    3:16pm | The House has just adjourned until Sunday.
    Now the focus is on the Senate, and the big cloture vote tonight.

    Read more: http://www.businessinsider.com/live-coverage-congressional-debt-ceiling-showdown-2011-7#ixzz1TcOblK3W

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  11. luisport says:

    4:04pm | Quick reaction from White House.
    Communications Director Dan Pfieffer tweets: RE GOP presser: 1) Both McConnell and Reid have said there was no agreement 2)House GOP couldnt even pass the bill they think was agreed to

    He adds: Just to pass their bill by a single vote, the House GOP had to include a measure that would require us to amend the Constitution or default

    Read more: http://www.businessinsider.com/live-coverage-congressional-debt-ceiling-showdown-2011-7#ixzz1TcaudChO

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  12. Zack says:

    This is great commentary, I would like to thank all of you.

    Like

    • Zack says:

      I’ve felt for a long time our system is designed to function this way (to benefit the few in power.) In order to maintain the confusion necessary we are taught to argue a case and this is reflected on our government wonderfully. To see a discussion forum such as this is to see a beckon of hope.

      This is a storm of great magnitude, may the light of life warm our hearts and bring peace to us all. May our community’s come together in comfortable contemplation as we face a world unknown, truly the most exciting period of history as we know it.

      Thank you for this.

      Like

  13. luisport says:

    5:29pm | No closer.
    Reid to reporters after his meeting with Obama: “The question is are we closer to an agreement, the answer is ‘no.’”

    Read more: http://www.businessinsider.com/live-coverage-congressional-debt-ceiling-showdown-2011-7#ixzz1TcwkQoqU

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  14. Thank you, Luisport, for your time & effort. My os is primitive. The Business Insider links are too large for my memory. Your summaries & comments are apppreciated.

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  15. Patty says:

    Thank you very much Luisport for the feed. Thank you Extinction Protocol for your site. Our extinction will be coming down from many quarters: economic, natural, political, and religious….your site is telling it as it is — whooo-boy – the precipice of disaster is now giving way into the real disaster it seems….

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  16. Golfdad641 says:

    Democrats, Republicans disagree on state of debt talks

    Senate Minority Leader Mitch McConnell, R-Kentucky, and House Speaker John Boehner, R-Ohio, held a 4 p.m. ET afternoon press conference in which they both said a deal was close. Two hours later, Senate Majority Leader Harry Reid, D-Nevada, asserted the claims of his Republican counterparts were simply “not true.”

    Read More here…

    http://www.cnn.com/2011/POLITICS/07/30/debt.talks/index.html?hpt=hp_t1

    Thanks Again Luisport for keeping us updated, I followed this news on this all day to my Mountain run and when I was finished on my run back home.

    God Bless

    Warren

    Like

  17. luisport says:

    ABC Reports Tentative Debt Ceiling Deal Could include tax increases!!!!

    http://blogs.abcnews.com/thenote/2011/07/white-house-republicans-strike-tenative-deal-to-raise-debt-ceiling-.html

    One of the provisions of the rumored deal from the above article:

    “The formation of a special Congressional committee to recommend further deficit reduction of up to $1.6 trillion (whatever it takes to add up to the total of the debt ceiling increase). This deficit reduction could take the form of spending cuts, tax increases or both.”

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  18. luisport says:

    bi_politics Politix
    LIVE COVERAGE: Schumer tells CNN it’s “clear” the debt ceiling will be raised through 2012. http://read.bi/oZXYGP
    há 3 minutos

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  19. luisport says:

    bi_politics Politix
    LIVE COVERAGE: Moody’s economist: $3 trillion deal may be enough to prevent a downgrade. http://read.bi/oZXYGP
    há 1 minuto » bi_politics Politix
    LIVE COVERAGE: Report: Short-term debt limit hike possible to allow lawmakers time to agree on final details. http://read.bi/oZXYGP
    há 5 minutos

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  20. luisport says:

    10:28am | Krugman says no to any spending cuts.
    Economist Paul Krugman says any spending cuts will slow the economy further during the recession. He says “we will envy Japan” during their “lost decade.”

    He added that with these spending cuts, unemployment may be above 9 percent at the end of 2012.

    Read more: http://www.businessinsider.com/live-coverage-debt-ceiling-sunday-negotiations-2011-7#ixzz1Th3PfS2e Not good…

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  21. luisport says:

    Moody’s: “Neither debt plan protects the nation’s AAA rating” – ALL PLANS FAIL!
    “The “limited magnitude” of both debt plans put forward by congressional leaders would not put the nation’s AAA credit rating back on solid footing, Moody’s Investors Service announced Friday.

    “Reductions of the magnitude now being proposed, if adopted, would likely lead Moody’s to adopt a negative outlook on the AAA rating,” the credit rating agency said in a new report. “The chances of a significant improvement in the long-term credit profile of the government coming from deficit reductions of the magnitude proposed in either plan are not high.”

    More at link

    http://thehill.com/blogs/on-the-money/801-economy/174447-moodys-neither-plan-protects-the-nations-aaa-rating

    Like

  22. luisport says:

    Saturday a finance expert gal on a news network advised, in regard to protecting yourself from credit downgrade consequences was, among other things, to have at least $1000 CASH on hand if possible.

    If lots of folks follow this advice, might that not cause a panic run on banks?

    I just thought it was potentially dangerous advice to the general public.

    Like

  23. idiotbox says:

    Soon this will all be irrelevant but lets not forget the bush baby raised the debt ceiling 7 times( without a single word from the senate or public I might add) yet a democratic president gets assailed when he trys it once Regan raised it 17 times without a single comment from the people, we have a fiat system we have nothing to back our dollar so why is it such a big deal to change the numbers on the screen and move on.

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  24. luisport says:

    1:16pm | Cloture vote on Reid measure fails.
    As expected, Reid did not have the required 60 votes to end debate on his plan. Reid voted no on his plan to be sure he can maintain the “House vehicle” — the underlying Boehner plan — to get expedited consideration of the ultimate compromise to raise the debt limit.

    All Republicans voted against the plan, and Sen. Ben Nelson (D-NE) and Sen. Bernie Sanders (D-VT) voted against the plan as well.

    Read more: http://www.businessinsider.com/live-coverage-debt-ceiling-sunday-negotiations-2011-7#ixzz1ThjHmJNh

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  25. Cris says:

    This made the front page news of the paper: ” Catering to the legislature”
    “Westchester lawmakers billed taxpayers for more than $12,600 in catered meals last year, a perk unique in the Lower Hudsom Valley – and unheard of in the state’s largest suburban counties. The meals were part of $39,295 spent by Westchester legislators for travel, food and cellphone costs in 2010, the second -highest amount in board history.
    Legislator’s Travel Costs
    Westchester – $20,156.35
    Rockland – $1,197.88
    Putnam – $7,274.53

    In-town Meals
    Westchester – $12,636.59
    Rockland – $107.90

    Mobile Communication
    Westchester – $6,501.54

    “Travel costs include transportation, hotel accommodations, mileage reimbursements, airfare, out of town meals and related expenses for elected legislators. In town meals apply to food costs for legislators and staff members. Mobile communication costs are for publicly issued Blackberries and/or cellphones issued to legislators at taxpayer expense”

    So lets just cut Medicare and Social Security of the elderly who have worked all their life putting money into our economy. That really makes a lot of sense.

    Like

  26. luisport says:

    2:16pm | Congress and Obama are trying to reach a deal by the time the Asian markets open this evening, but a deal has not been agreed to yet..

    ——————————————————————————–

    2:13pm | Unanimous consent.
    Any deal to raise the debt limit by August 2nd will now require “unanimous consent” in the Senate. Senate rules allow members unlimited debate time, barring an agreement to contrary or a “cloture” vote to end debate.

    A cloture vote requires not just 60 votes, but also a one-day “ripening” period, and still allows for 30 hours of debate after the vote. If one Senator unhappy with the plan currently being negotiated by Senate Minority Leader Mitch McConnell and President Barack Obama objected to ending debate, a final vote would not be held until Wednesday — assuming cloture is filed by 11:59 pm today.

    ——————————————————————————–

    2:09pm | McConnell: “We’re really, really close to an agreement. I’ll let u know when we get it.”.

    Read more: http://www.businessinsider.com/live-coverage-debt-ceiling-sunday-negotiations-2011-7#ixzz1ThzhrmV8

    Like

  27. luisport says:

    4:26pm | Democratic leadership on board?
    The Huffinton Post’s Sam Stein tweets: breaking: Dem leaders are all in pelosi’s office, i’m told. and everyone has signed off on deal. waiting on Boehner.

    ——————————————————————————–

    4:17pm | Conservatives also upset with deal.
    Heritage Action for America says it will oppose the Obama-McConnell compromise.

    ——————————————————————————–

    4:13pm | Rand Paul “probably” won’t object to unanimous consent to speed up vote:
    Sen. Rand Paul (R-KY) and Sen. Mike Lee (R-UT) tell POLITICO they will probably not object to a unanimous consent agreement to fast track a debt limit deal.

    “I think we have to have a 60-vote margin, and I probably won’t object if there’s a time agreement,” Paul told POLITICO.

    ——————————————————————————–

    4:10pm | Confidence.
    Sen. Susan Collins (R-ME) on Fox News:

    “When I talked to … Mitch McConnell a few hours ago, he was more confident of a deal than I’ve seen him be.”

    Read more: http://www.businessinsider.com/live-coverage-debt-ceiling-sunday-negotiations-2011-7#ixzz1TiVVZNkZ

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  28. luisport says:

    5:03pm | Defense cuts as the sticking point?
    There are multiple reports that the hold-up to a deal is the amount of defense spending cuts that would take effect if the bipartisan “Super Committee” cannot reach an agreement on spending cuts.

    NBC’s Luke Russert reports Democrats want 3% cuts to the defense budget, while the GOP wants 2% or less.

    Defense hawks are reportedly very concerned by the cuts.

    Read more: http://www.businessinsider.com/live-coverage-debt-ceiling-sunday-negotiations-2011-7#ixzz1Tif81dEg

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  29. luisport says:

    RT @OKnox: Sources says “no sign off” on the #debt deal in recently finished meeting of Reid, Durbin, Schumer, Murray, Pelosi.
    há 18 minutos via CoTweet

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    • The markets may go up in flames next week with a consensus from America to get its financial house in order- Black Monday or Tuesday ….let’s hope not

      Like

      • nickk0 says:

        What concerns me, is that even if / when a ‘deal’ is reached, we may have avoided *this* crisis….. Only to get T-boned by another one. ( Greek default and the consequent contagion )
        In that case, Wal-Street will have the excuse that it is looking for, to freak out and drag the rest of the world down with it.

        - Nick

        Like

  30. luisport says:

    Downgrade still possible despite proposed deal

    http://ibnlive.in.com/generalnewsfeed/news/deal-reached-to-end-us-debt-crisis-downgrade-still-a-worry/771482.html

    and…..

    The deal would still have to be passed in the House and the Senate ahead of an Aug 2 deadline to avert a potential debt default.

    Like

  31. luisport says:

    We have a deal that could avoid default — now can Congress pass it?

    That is the question many in both parties are asking themselves today on Capitol Hill, where both house of Congress are preparing to vote on legislation no one really wants to pass.

    The deal was reached when most expected it would be — at the very last possible moment, with barely 51 hours remaining to raise the debt ceiling — and through a bipartisan compromise that left both sides wanting more.

    In the Senate, where collegiality is of foremost concern, the bill will have no difficulty passing even the 60-vote threshold that conservative Sen. Mike Lee (R-UT) is demanding in exchange for waiving the body’s rules to speed the vote.

    But in the House, where tempers have flared over the past two weeks, the road to passage is uncertain.

    Tea Party Republicans, making up much of the class of 87 GOP freshmen, are unhappy that the bill does not include a requirement to pass a balanced budget amendment before raising the borrowing limit. And Defense hawks are also worried by the mandatory cuts to spending that would take effect if the bipartisan “Super Committee” fails to reach the allotted spending cuts target.

    Progressives, meanwhile, are livid at the level of spending cuts without tax increases on the wealthy. Congressional Black Caucus Chairman Rep. Emanuel Cleaver called it a “sugar-coated Satan sandwich.” You can bet he’s not voting for it.

    House Minority Leader Nancy Pelosi is publicly noncommittal on the deal, but her deputy, Democratic White Steny Hoyer, is reportedly on board and lining up Democratic support.

    Capitol Hill sources say Democrats can provide between 60-80 votes for the deal and that Speaker of the House John Boehner will have to provide the rest. After the difficulty he had wrangling votes for his more GOP-friendly plan last week, nothing is a done deal.

    Right now opposition appears to be limited to the influential, but small caucuses, and both Democratic and Republican leaders appear confident this deal will pass. But expect them to push the votes on this deal to happen quickly, before any organized opposition coalesces.

    Read more: http://www.businessinsider.com/debt-deal-reached-but-path-through-congress-not-certain-2011-7#ixzz1Tm4za6vT

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  32. luisport says:

    7:48am | What’s in the debt deal:
    Drops $6.5 billion Senate plan to auction off certain TV frequencies to wireless/mobile phone companies.
    Also cuts Senate plan to reallocate “D Block” frequencies for a new national first responder network.
    Elimination of $11 billion in direct cuts to farmers from the Senate plan.
    Eliminates federal Stafford loans for graduate and professional school students.
    Increases Pell grants for college students.
    Does not include any language to solve the partial shutdown at the FAA.

    Read more: http://www.businessinsider.com/live-coverage-the-debt-deal-endgame-2011-8#ixzz1TmI5RJAR

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  33. luisport says:

    10:25am | Romney’s opposition makes it harder to get GOP votes.
    House Republicans need every vote they can get to make sure this deal passes. The opposition from Romney — largely considered a fiscal moderate and the party’s frontrunner to unseat President Barack Obama — makes that job MUCH harder.

    Read more: http://www.businessinsider.com/live-coverage-the-debt-deal-endgame-2011-8#ixzz1Tmu6bRoA

    Like

  34. idiotbox says:

    Lets cut funding to farmers instead of taxing the rich that way we can assure the food crisis takes hold in america.

    Like

    • nickk0 says:

      Now THAT is a GREAT idea, idiotbox.
      It’s BRILLIANT !!

      QUICK !!! Somebody should PROPOSE this to Congress !!
      They will be SURE to follow this up !!!

      - Nick

      Like

  35. luisport says:

    LukeRussert Luke Russert
    por BreakingNews
    House Dem tells me #Biden told caucus that #debt deal was “best we could do.” “We protected our priorities.” Somber tone. Many members upset
    há 11 minutos »

    Like

  36. luisport says:

    Central Falls, Rhode Island Files For Bankruptcy
    It’s not Jefferson County, yet, but it could certainly be seen as the precursor to the first domino. “The state-appointed receiver overseeing the cash-strapped Rhode Island town of Central Falls has filed for bankruptcy on the city’s behalf in an effort to help it get back on its feet. Receiver Robert G. Flanders and Rhode Island Gov. Lincoln Chafee announced the step – which Flanders has described as a last resort – at a news conference at City Hall. Flanders filed the legal paperwork seeking bankruptcy protection Monday. “From the ashes of bankruptcy Central Falls will rise again,” Flanders said.” The biggest losers: unions. “With the city now seeking bankruptcy protection, Flanders said he plans to reduce pension benefits beginning in late August. He has asked the federal court to immediately reject collective bargaining agreements. He said the next set of pension payments will reflect at least the cuts he outlined to city retirees. In addition, he said city workers will face layoffs. Flanders called the step unavoidable, as taxes have already been raised and city services have been cut “to the bone.” Expect Barack Obama to thaw Steve Rattner from carbonite explain to creditors, using a variety of four letter words, that they will be last in line of payment after every single union claim has been satisfied, with the resultant husk of a town reverse merged with GM.

    “We’re not going with a band aid-approach,” Chafee said. “We’re going to tackle this and that’s a positive.”

    Flanders said he would hope to have a plan of recovery to present to the judge at the outset of proceedings in an effort to prevent a protracted bankruptcy.

    “We need to come out of this with a sustainable plan for recovery,” he said last month after a meeting with retirees.

    Central Falls, a city of 19,000 residents about a 15-minute drive north of Providence, has $80 million in unfunded pension and benefits obligations and $5 million deficits projected for each of the next five years. The city has found itself the subject of national headlines over its floundering finances and a high school so troubled that all its teachers were fired in one fell swoop last year, but eventually rehired.

    http://www.zerohedge.com/news/central-falls-rhode-island-files-bankruptcy

    Like

  37. luisport says:

    2:38pm | Rep. Darrell Issa (R-CA) tells reporters the debt deal will pass the House with more than 300 votes.

    Read more: http://www.businessinsider.com/live-coverage-the-debt-deal-endgame-2011-8#ixzz1Tnv4rptQ

    Like

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