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Archive for November, 2010




I am more and more amazed every day at the conflicting stories in the news.

…that’s—this seems like such a big thing to do.’ But it’s because I care.

Fiorina’s expenditure of more than $16 million during her run for senator of California bought her 3,827,046 votes, which cost $4.35 apiece. During the six years she ran H-P as both CEO and chairwoman, she laid off 30,000 workers. With the endorsement of Palin, Fiorina called for repeal of Obama’s health-care legislation, overturning Roe vs. Wade, and returning California’s unspent stimulus funds to the Treasury.


ABC News’ Lisa Chinn and Jennifer Parker report: Republican ticket mates John McCain and Sarah Palin Monday blasted corporate executives who leave their company with a “golden parachute”  and pledged to “stop multimillion dollar payouts” to CEOs, seeming to forget their own top economic adviser Carly Fiorina walked away with $45 million, including a $21.4 million severance package when she was dismissed by Hewlett Packard in 2005.


November, 2008: Goldman Sachs notified roughly 3,200 employees this week that they have been laid off, part of previously reported plans to slash 10 percent of the firm’s global work force amid slumping markets, Reuters reported, citing people familiar with the situation.

Two weeks ago, reports surfaced that Goldman planned to cut 10 percent of its staff, or almost 3,300 jobs, reflecting the weak economy and a cut back in proprietary trading. The cuts are an about-face for a company that as recently as September insisted its headcount would rise this year.

October, 2008: Goldman Sachs is on course to pay its top City bankers multimillion-pound bonuses – despite asking the U.S. government for an emergency bail-out.

The struggling Wall Street bank has set aside £7billion for salaries and 2008 year-end bonuses, it emerged yesterday.

Each of the firm’s 443 partners is on course to pocket an average Christmas bonus of more than £3million.

The size of the pay pool comfortably dwarfs the £6.1billion lifeline which the U.S. government is throwing to Goldman as part of its £430billion bail-out.

December, 2008: he payout, worth around £55,000 per employee, was confirmed as the Wall Street bank blamed “extraordinarily difficult operating conditions” for a fourth-quarter loss of $2.12bn (£1.4bn). It still achieved a $2.32bn profit for the full year to November, although this was sharply lower than last year’s $11.6bn.

A spokesman rejected reports that the bonuses could amount to as much as £4.3bn but said the pot totalled $2,6bn.

February, 2009:  Wall Street giant Goldman Sachs is drawing up plans to axe a further 10 per cent of its global workforce, placing the jobs of hundreds of British bankers at risk.

The programme – aimed at cutting costs as Goldman battles through the worst financial crisis in a generation – is in addition to the 10 per cent culled at the end of last year.

An insider said Goldman partners are drawing up plans for the next round of cuts, but added that a decision on specific numbers has yet to be taken.

Around 6,000 of Goldman’s 30,067 staff are employed in the UK. Under threat are middle ranking bankers as well as IT and administrative workers.

October, 2009: The New York-based investment firm turned another eye-popping profit Thursday, earning $3.2 billion in the third quarter, as revenue from trading rose fourfold from a year ago.

As Wall Street firms typically do, Goldman set almost half that sum aside to compensate its workers. Through the first nine months of 2009, the firm socked away $16.7 billion, enough to pay the average Goldmanite $526,814.

The bonus pool is on pace to hit $21 billion for 2009, which would match the record bonus payout of 2007.

Goldman said it won’t decide the size of the bonus pool till year-end. In any case, the payments will be substantial — and will come just one year after huge sums of taxpayer dollars were funneled to financial institutions.


September, 2010: Not too long ago, people were giddy about a resurgence in hiring on Wall Street. The good times seemed ready to roll. But then the economy faltered again, and top banks are finding it hard to regain their footing.

Now analyst Meredith Whitney has predicted that layoffs will litter Wall Street in 2011, as banks are again forced to downsize. “Over the next 18 months, Wall Street will go through yet another iteration of resizing not seen since the post-dotcom era,” she told clients, as noted by the New York Post.

January, 2010: Besides chest-thumping fourth-quarter earnings, Goldman Sachs also announced its bonus pool on Thursday. At $16.2 billion, the total is 20 percent lower than the firm’s 2007 level but still amounts to an average of just under $500,000 per employee.

If you’re picky, it’s only $498,000. Since it’s an average, a few people will rake in a lot, lot more and most Goldman employees will make less than half a million. Federal taxes will whittle that down to about $324,000. So what does that get you these days?

Unlike HP, GS got handouts from the government and those handouts ended up as bonuses to the higher ups.

On the other hand, do not attempt to tell me that HP does not get government handouts in the form of contracts with local, state and Federal agencies.

So both of these giants receive plenty of our tax dollars.

The other point to be made here is that every single quarter leading up to the crash in 2008 and every single quarter following that crash, GS has handed out bonuses that would total the gross national product of many nations.

And the shareholders in these corporations simply continue to let this continue—although the law has hamstrung the rights of these shareholders for sometime.

But there is a further cost to Americans related to these bonuses and the ability of the insiders to bleed the corporate coffers.

And that cost involves the discarding of thousands upon thousands of employees onto the street. The profits of these companies could have been used to keep people employed instead of making their way into the pockets of insiders.

There are medical costs related to these lay-offs, unemployment benefits related to these lay-offs, and loss of income taxes that would have been paid by the employees who were layed-off.

These lay-offs no doubt hurt the mortgage markets. People cannot make their mortgage payments on unemployment benefits.

And this Fiorina just flaunts this largess. I mean she campaigns with a message that the current administration is doing nothing to improve the unemployment levels in this country.

All the while she is spewing out these lies, we are looking at a woman who laid off over 6000 employees and robbed the company of 45,000,000 dollars plus. The math is easy here as far as I am concerned. One thousand people could have been kept on the payroll at HP at the average salary of an American Worker.

And I do not see any proposals in the offing that are going to do anything about this situation.

Nothing at all.

The President’s Call for the Day

Less than two years after taking office, with many criticizing the efforts undertaken to recover from the economic condition of the nation as it was when he took the oath of office, the President said:

I am happy to report that after years of uncertainty, culminating in the collapse of the spring of 1933, we are bringing order out of the old chaos with a greater certainty of the employment of labor at a reasonable wage and of more business at a fair profit. These governmental and industrial developments hold promise of new achievements for the nation.

Men may differ as to the particular form of governmental activity with respect to industry and business, but nearly all are agreed that private enterprise in times such as these cannot be left without assistance and without reasonable safeguards lest it destroy not only itself but also our processes of civilization….

To those who say that our expenditures for Public Works and other means for recovery are a waste that we cannot afford, I answer that no country, however rich, can afford the waste of its human resources. Demoralization caused by vast unemployment is our greatest extravagance. Morally, it is the greatest menace to our social order. Some people try to tell me that we must make up our minds that for the future we shall permanently have millions of unemployed just as other countries have had them for over a decade. What may be necessary for those countries is not my responsibility to determine. But as for this country, I stand or fall by my refusal to accept as a necessary condition of our future a permanent army of unemployed….

Those, fortunately few in number, who are frightened by boldness and cowed by the necessity for making decisions, complain that all we have done is unnecessary and subject to great risks. Now that these people are coming out of their storm cellars, they forget that there ever was a storm…

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