Financial News Stories

Excerpts of Key Financial News Stories in Major Media

Below are key excerpts of revealing news articles on financial corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.

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Note: This comprehensive list of news stories is usually updated once a week. Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.

For a few days an obscene proportion of the world's wealth and clout will be concentrated in one normally obscure Alpine town, [Davos, Switzerland]. Some 27 heads of state or government; 113 cabinet ministers; hundreds of chief executives, bankers, sovereign wealth fund managers, economists and the media: about 2,500 participants in all. So who's coming and what will they be chattering about? The official co-chairs of the Forum are mostly well-known names: Tony Blair, of JP Morgan; James Dimon, chairman and CEO of JP Morgan; KV Kamath, MD and CEO of India's ICICI Bank; Henry Kissinger, chairman of Kissinger Associates; Indra K Noovi, chairman and CEO of PepsiCo; David J O'Reilly, chairman and CEO of Chevron Corporation; and Wang Jianzhou, CEO of China Mobile Communications Corporation. The prominent role allotted to Mr Wang, while not entirely novel, is nonetheless significant. In 2008, for the first time, China will contribute more to the growth of the world economy than the United States. Double-digit growth in China should still just be possible this year, and it alone seems to stand between the world and a full-blown recession. Sovereign wealth funds (SWFs) from China and elsewhere have already been busy re-capitalising the West's stricken banks. The recycling of trillions of dollars of trade surpluses and petro dollars means that such deals will become more prevalent.

Note: Yet these meetings are kept largely secret. Why isn't the media giving lots more coverage to this gathering of some of the most powerful people on the planet? For other reliable, verifiable reports on secret meetings of the power elite of the world, click here.

Wall Street's five biggest firms are paying a record $39 billion in bonuses for 2007. It was a year when three of the firms suffered their worst quarterly losses in history and shareholders lost over $80 billion. Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers and Bear Stearns together awarded $65.6 billion in compensation and benefits last year to their 186,000 employees. That means year-end bonuses, at 60% of the total, exceeded the $36 billion distributed in 2006 when the industry reported all-time high profits. The firms have said they are eliminating at least 6,200 jobs amid mounting losses from the subprime mortgage mess. The payouts come as the economy slows, with unemployment rising, retail sales declining and new home foreclosures surging to a record. The industry's bonuses are larger than the gross domestic products of Sri Lanka, Lebanon or Bulgaria, and the average bonus of $219,198 is more than four times higher than the median U.S. household income in 2006, according to Census Bureau data. Shareholders in the securities industry endured their worst year since 2002, as Merrill and Bear Stearns slumped more than 40% and the CEOs at both firms gave up their jobs. Morgan Stanley fell 21% and Lehman dropped 16%. Only Goldman rose, gaining 7.9%.

Note: For lots more on escalating income inequality, click here.

A wave of foreclosures and evictions is about to sweep the United States in the wake of the sub-prime mortgage lending crisis. This could destabilise the US housing market and may also lead to further turmoil in financial institutions, who collectively own $1 trillion (Ł480.6bn) worth of sub-prime debt. Cleveland, Ohio, is an industrial city on the banks of Lake Erie in the US "rust belt". It is the sub-prime capital of the United States. One in ten homes in the city is now vacant, and whole neighbourhoods have been blighted by foreclosed, vandalized and boarded-up homes. Cleveland is facing a rising crime wave, and the cost of demolishing the vacant houses alone will cost the city $100m of its tax base. According to Jim Rokakis, the County Treasurer for Cleveland's Cuyahoga County, "Wall Street strategies that made the cycle of no-money-down, no-questions-asked lending possible have sucked the life out of my city". As the credit crunch continues to bite "families all over the country continue to lose homes in record numbers, stripping families of their wealth and destroying entire neighbourhoods," says Michael Calhoun of the Center for Responsible Lending, which tracks these issues. There have already been 1.7 million foreclosure proceedings in the US in the first eight months of 2007, and up to 2 million families are expected to lose their homes over the next two years, according to estimates by the US Congress's Joint Economic Committee. Many of these mortgages were sold by unscrupulous and little regulated mortgage brokers, who received handsome commissions for selling expensive and unsuitable products. Some customers were not told that their interest rates would go up sharply after two years; others were promised they could refinance their home before higher rates took effect. Others found that when they had difficulties paying, huge unexplained fees were added to their bills, putting them further in debt.

As record numbers of homeowners default on their mortgages, questionable practices among lenders are coming to light in bankruptcy courts, leading some legal specialists to contend that companies instigating foreclosures may be taking advantage of imperiled borrowers. Because there is little oversight of foreclosure practices and the fees that are charged, bankruptcy specialists fear that some consumers may be losing their homes unnecessarily or that mortgage servicers, who collect loan payments, are profiting from foreclosures. Bankruptcy specialists say lenders and loan servicers often do not comply with even the most basic legal requirements, like correctly computing the amount a borrower owes on a foreclosed loan or providing proof of holding the mortgage note in question. “Regulators need to look beyond their current, myopic focus on loan origination and consider how servicers’ calculation and collection practices leave families vulnerable to foreclosure,” said Katherine M. Porter, associate professor of law at the University of Iowa. In an analysis of foreclosures in Chapter 13 bankruptcy, the program intended to help troubled borrowers save their homes, Ms. Porter found that questionable fees had been added to almost half of the loans she examined, and many of the charges were identified only vaguely. Collectively they could raise millions of dollars for loan servicers at a time when the other side of the business, mortgage origination, has faltered. In one example, Ms. Porter found that a lender had filed a claim stating that the borrower owed more than $1 million. But after the loan history was scrutinized, the balance turned out to be $60,000. And a judge in Louisiana is considering an award for sanctions against Wells Fargo in a case in which the bank assessed improper fees and charges that added more than $24,000 to a borrower’s loan.

In a major legal action alleging misdeeds in the mortgage business, New York's attorney general [Andrew Cuomo] has accused appraisers of helping fuel the nation's foreclosure crisis by pumping up home values at the behest of lenders and other real estate professionals. The lawsuit said that First American eAppraiseIT, a subsidiary of Fortune 500 company First American Corp., caved in to pressure from Washington Mutual to rely on "proven appraisers" who were willing to inflate home prices. Washington Mutual profited from the artificially high appraisals because they allowed the company to close more home loans at greater values, the lawsuit said. First American, a provider of business information, title insurance and related services, wanted to win more business from Washington Mutual, the suit said. The lawsuit comes in the midst of the nation's subprime lending crisis, which industry experts say could cause up to 2 million homes to be lost to foreclosure over the next couple of years. Most subprime foreclosures are caused by a confluence of two factors: mortgage payments that rise when adjustable loans reset, and home prices that are lower than the amount owed on the mortgage. A moribund real estate market has caused prices to flatten or fall. But if home prices were artificially high to begin with - which would be the case if appraisers inflated values, as the lawsuit alleged - the likelihood increases of homeowners owing more on the mortgage than their properties are worth. Cuomo said fraudulent appraisal practices were pervasive in the industry. At a news conference announcing the lawsuit, he said lenders, mortgage brokers, real estate agents and others frequently pressured appraisers to "come in with the right number, the number that justifies the transaction" so that everyone in the chain would receive commissions.

One year ago, a 32-year-old trader at a giant hedge fund named Amaranth held huge sway over the price the country paid for natural gas. Trading on unregulated commodity exchanges, he made risky bets that led to the fund's collapse -- and, according to a congressional investigation, higher gas bills for homeowners. But as another winter approaches, lawmakers and federal regulators have yet to set up a system to prevent another big fund from cornering a vital commodity market. Called by some insiders the Wild West of Wall Street, commodity trading is a world where many goods that are key to national security or public consumption, such as oil, pork bellies or uranium, are traded with almost no oversight. Part of the problem is that the regulator, the federal Commodity Futures Trading Commission, has had a hard time keeping up with the sector it oversees. Commodity trading has exploded in complexity and popularity, growing six-fold in trading volume since 2000 -- the year that a handful of giant energy companies, including Enron, successfully lobbied to get Congress to exempt energy markets from government regulation. Meanwhile CFTC's staffing has dropped to its lowest level in the agency's 33-year history. Its computer systems that monitor trades are outdated. Its leadership has seen frequent turnover. "We are facing flat budgets and exponential growth in the industry," said CFTC Acting Chairman Walter Lukken. "Over the long term this type of budgetary situation is not sustainable." Commodities markets also have become complex with many trading futures contracts as well as financial tools called derivatives and swaps, whose value is based on the risk of futures contracts. Gathering data on these products has been a challenge for the CFTC. The evolution of the markets has led to some tension between the CFTC and the Federal Energy Regulatory Commission.

Note: For more revealing major media reports of unregulated financial corruption and its impact, click here.

The Shock Doctrine is [Naomi] Klein’s ambitious look at the economic history of the last 50 years and the rise of free-market fundamentalism around the world. “Disaster capitalism,” as she calls it, is a violent system that ... requires terror to do its job. Extreme capitalism loves a blank slate, often finding its opening after crises or “shocks.” Klein compares radical capitalist economic policy to shock therapy administered by psychiatrists. She interviews Gail Kastner, a victim of covert C.I.A. experiments in interrogation techniques that were carried out by the scientist Ewen Cameron in the 1950s. His idea was to use electroshock therapy to break down patients. Once “complete depatterning” had been achieved, the patients could be reprogrammed. For Klein the larger lessons are clear: “Countries are shocked — by wars, terror attacks, coups d’état and natural disasters.” Then “they are shocked again — by corporations and politicians who exploit the fear and disorientation of this first shock to push through economic shock therapy.” People who “dare to resist” are shocked for a third time, “by police, soldiers and prison interrogators.” Klein offers an account of Milton Friedman — she calls him “the other doctor shock”. In the 1950s, as Cameron was conducting his experiments, the Chicago School was developing the ideas that [dominate capitalist planning today]. She quotes the Chilean economist Orlando Letelier on the “inner harmony” between the terror of the Pinochet regime and its free-market policies. Letelier said that Milton Friedman shared responsibility for the regime’s crimes, rejecting his argument that he was only offering “technical” advice. Letelier was killed in 1976 by a car bomb planted in Washington [DC]. For Klein, he was another victim of the “Chicago Boys” who wanted to impose free-market capitalism on the region. “In the Southern Cone, where contemporary capitalism was born, the ‘war on terror’ was a war against all obstacles to the new order,” she writes.

Note: For highly revealing, verifiable information on government mind control programs, click here.

[Naomi Klein in her new book The Shock Doctrine] argues persuasively that over the last 40 years, no single thinker has shaped the economic and political policies of corporate CEOs, military dictators, presidents, prime ministers and bankers more than [Milton] Friedman. His thesis was simple: The job of governments is to facilitate the free flow of capital across national borders by removing any impediments to trade [and establishing] a drastic regimen of market deregulation, free trade treaties, spending cuts to social programs, the breaking of labour unions and mass privatization of publicly owned resources and industries ... chiefly through the careful manipulation of collective crises such as wars, military coups, natural disasters and economic recessions and depressions. For Friedman's ideas to be implemented, a nation's existing economy and civic society must first be reduced to a state of tabula rasa before being rebuilt according to the [Chicago School] model. [Klein contends] that this capitalist doctrine also has its roots in a series of mind-control experiments performed on often unwilling patients by psychiatrist Ewan Cameron, working out of McGill University in the late 1950s. He imposed a sustained regimen of sensory deprivation, isolation, enforced sleep and a cocktail of LSD, PCP, insulin and barbiturates [and] a barrage of electroshock therapy. The CIA, which paid for Cameron's experiments, modified these techniques for use in prisoner-interrogation sessions. The results were so good that the CIA taught the methods to the Latin American security forces in charge of reprogramming anyone who dared resist the devastating free market "reforms" that swept through South and Central America after Augusto Pinochet's successful, Chicago-School inspired (and CIA-sponsored) coup of populist leader Salvador Allende in 1973.

Special Note: For an incredibly revealing interview on the role of the Milton Friedman and the Chicago school of economists in promoting radical change against democracy by using states of public shock to push through unwanted changes, don't miss the powerful talk with Naomi Klein available here.

At the big Red Cross shelter in Baton Rouge, Louisiana ... the news ... was that the Republican Congressman Richard Baker had told a group of lobbyists, "We finally cleaned up public housing in New Orleans. We couldn't do it, but God did." Joseph Canizaro, one of New Orleans' wealthiest developers, had just expressed a similar sentiment: "I think we have a clean sheet to start again. And with that clean sheet we have some very big opportunities." All that week Baton Rouge had been crawling with corporate lobbyists helping to lock in those big opportunities: lower taxes, fewer regulations, cheaper workers and a "smaller, safer city" - which in practice meant plans to level the public housing projects. One of those who saw opportunity in the floodwaters of New Orleans was the late Milton Friedman, grand guru of unfettered capitalism and credited with writing the rulebook for the contemporary, hyper-mobile global economy. "Most New Orleans schools are in ruins," Friedman observed, "as are the homes of the children who have attended them. The children are now scattered all over the country. This is a tragedy. It is also an opportunity." Friedman's radical idea was that instead of spending a portion of the billions of dollars in reconstruction money on rebuilding and improving New Orleans' existing public school system, the government should provide families with vouchers, which they could spend at private institutions. In sharp contrast to the glacial pace with which the levees were repaired and the electricity grid brought back online, the auctioning-off of New Orleans' school system took place with military speed and precision. Within 19 months, with most of the city's poor residents still in exile, New Orleans' public school system had been almost completely replaced by privately run charter schools.

Jessica ... lives what some might consider the perfect alternative lifestyle. She makes enough money to pay for rent and food (from the farmer's market) by teaching classes at the Solar Living Institute and selling her self-published zine about alternative fuel. She grows much of her own food and raises chickens and bees in her backyard. As a child, her family life centered around growing food and cooking meals together. Her parents never emphasized money. She hasn't strayed far from her upbringing. When asked about her views on money, she said: "It's better to be happy than to worry about your credit card bill or working a lot." One of the key points of being happy, for Jessica, is to bank at Cooperative Center Federal Credit Union. Jessica's made it a point to convert her friends to using credit unions, which are nonprofit banks. "I say to people: So you shop at a farmer's market. You use alternative fuel or bike or take public transportation. But you still bank at Bank of America?" She laughed at the paradox of the small-is-beautiful crowd supporting a global corporation. "With banks, it's a business and all your money goes to make someone you don't know rich -- but with credit unions, all the money goes back into the community," Jessica explained. "It's people banding together to share the abundance." Credit unions -- also called cooperative banks or people's banks -- have origins in Europe. They were first started by German farmers in the 1860s who felt private banks were charging unfair fees. These rural people pooled money together in order to make loans within their tight-knit community. In North America, the idea of credit unions was first embraced by Canadians. These days in the United States, there are over 8,000 credit unions; 536 of them are in California.

Note: To locate a credit union near you (in the United States), click here.

Aaron Russo, who managed Bette Midler and went on to produce such films as "Trading Places," has died. He was 64. Russo died from cancer before dawn on Friday, surrounded by family at Cedars-Sinai Medical Center, said Heidi Gregg. Russo had been battling the disease for nearly six years. "He was my best friend for 27 years," said Gregg. "Aaron was a freedom fighter, a film maker and a lover of life." Russo ... began promoting rock and roll shows at a local theater while still in high school. He later ... promoted some of the most successful rock acts of the 1960s including Janis Joplin and The Grateful Dead. In the 1970s, Russo managed Bette Midler, producing the Tony award winning "Clams on the Half-Shell Revue" starring the singer. Russo eventually turned to producing feature films including "The Rose" which starred Midler in 1979 as a self destructive rock star, and later "Trading Places" in 1983 which starred Eddie Murphy and Dan Aykroyd. Russo was also a long time political activist. In 2006, Russo finished work on a documentary titled "America: Freedom to Fascism," which was billed as an expose of the Internal Revenue Service. "He was an absolutely amazing man," said Ilona Urban, his press secretary. "He was pointed and once he knew there was a direction to go, you couldn't get him to turn left or right. He was very committed."

Note: Aaron Russo was one of the few respected film makers who dared to reveal some of the major cover-ups going on behind the scenes in the world of banking and more. To view his highly popular, five-star-rated 2006 documentary on this topic, America: From Freedom to Fascism, click here.

The US government is on a ‘burning platform’ of unsustainable policies and practices with fiscal deficits, chronic healthcare underfunding, immigration and overseas military commitments threatening a crisis if action is not taken soon, the country’s top government inspector has warned. David Walker, comptroller general of the US, issued the unusually downbeat assessment of his country’s future in a report that lays out what he called “chilling long-term simulations”. These include “dramatic” tax rises, slashed government services and the large-scale dumping by foreign governments of holdings of US debt. Drawing parallels with the end of the Roman empire, Mr Walker warned there were “striking similarities” between America’s current situation and the factors that brought down Rome, including “declining moral values and political civility at home, an over-confident and over-extended military in foreign lands and fiscal irresponsibility by the central government. In my view, it’s time to learn from history.” Mr Walker’s views carry weight because he is a non-partisan figure in charge of the Government Accountability Office, often described as the investigative arm of the US Congress. In an interview with the Financial Times, Mr Walker said he had mentioned some of the issues before but now wanted to “turn up the volume”. Some of them were too sensitive for others in government to “have their name associated with. I’m trying to sound an alarm and issue a wake-up call,” he said. “As comptroller general I’ve got an ability to look longer-range and take on issues that others may be hesitant, and in many cases may not be in a position, to take on."

The United States and the European Union have signed up to a new transatlantic economic partnership at a summit in Washington. The pact is designed to boost trade and investment by harmonising regulatory standards, laying the basis for a US-EU single market. The two sides agreed to set up an "economic council" to push ahead with regulatory convergence in nearly 40 areas, including intellectual property, financial services, business takeovers and the motor industry. The aim is to increase trade and lower costs. Some reports suggest that incompatible regulations in the world's two richest regions add 10% to the cost of developing and producing new cars.

Note: Why is this important news getting such minimal press coverage?

The U.S. current-account deficit is the broadest measure of America's activity in international trade and global finance. It totaled $857 billion last year, the Commerce Department reported last week. For the fifth year in a row, the nation's current-account deficit set a record. As Federal Reserve Chairman Ben Bernanke testified last year before Congress: "The immediate implication [of the nation's soaring current-account deficit] is that the U.S. economy is consuming more than it's producing, and the difference is being made up by imports from abroad, which in turn is being financed by borrowing from abroad." Last year's current-account deficit meant that Americans effectively borrowed $3.3 billion every single working day to fund the gap between their spending and their income. The accumulation of ever larger current-account deficits over the past quarter century has played an indispensable role in transforming the United States from the world's largest creditor nation into the planet's biggest debtor nation. Specifically, in 1982, America's net international investment position was a positive $236 billion. That meant that foreigners owed us nearly a quarter of a trillion dollars more than we owed them. At the end of 2005 (the latest year for which data are available), the net international investment position of the United States was a negative $2.55 trillion. In other words, we owed foreigners more than $2.5 trillion than they owed us. Since 1994 alone, America's net international investment position has deteriorated by more than $2.4 trillion.

Note: The Washington Times was the only media source to report on this highly important story. Why? For a possible answer, click here. For more underreported, yet massive government corruption, click here.

In his 18 years as chairman of the Federal Reserve, Greenspan has occasionally drawn criticism, but no one disputes his technical prowess or sniffs at his track record of low inflation and steady, almost uninterrupted growth. Enter Ben S. Bernanke, President Bush's nominee to take Greenspan's place. The former Princeton economics professor is currently the chairman of the president's Council of Economic Advisers. The following are excerpts from [a speech] by Ben S. Bernanke. "On Milton Friedman's Ninetieth Birthday," Nov. 8, 2002: "I first read 'A Monetary History of the United States' early in my graduate school years at M.I.T. I was hooked, and I have been a student of monetary economics and economic history ever since. Friedman and [his co-author Anna J.] Schwartz made the case that the economic collapse of 1929-33 was the product of the nation's monetary mechanism gone wrong. What I take from their work is the idea that monetary forces, particularly if unleashed in a destabilizing direction, can be extremely powerful. "I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again."

Note: The chairman of the Federal Reserve Board admits here that the Federal Reserve caused the Great Depression. The Federal Reserve is owned by powerful private banks. It was created in 1913 largely in secrecy and fought by many who understood the dangers involved. For more reliable information on this, click here.

The three top auditors overseeing work in Iraq told a House committee their review of $57 billion in Iraq contracts found that ... about $10 billion has been squandered by the U.S. government on Iraq reconstruction aid because of contractor overcharges and unsupported expenses. Of the $10 billion in overpriced contracts or undocumented costs, more than $2.7 billion were charged by Halliburton Co., the oil-field services company once headed by Vice President Dick Cheney. Federal investigators warned Thursday that significantly more taxpayer money is at risk. More than one in six dollars charged by U.S. contractors were questionable or unsupported, nearly triple the amount of waste the Government Accountability Office estimated last fall. "There is no accountability," said David M. Walker, who heads the auditing arm of Congress. "Organizations charged with overseeing contracts are not held accountable. Contractors are not held accountable. The individuals responsible are not held accountable." The investigators urged the Pentagon to reconsider its growing reliance on outside contractors. Layers of subcontractors, poor documentation and lack of strong contract management are rampant. Walker complained that GAO investigators have difficulty getting basic detail about reconstruction contracts such as expenses and subcontractors involved because many Pentagon divisions fail to consistently track or fully report them. Noting that auditors still have $300 billion of Iraq spending to review, Waxman said the total amount of waste, fraud and abuse "could be astronomical."

Note: To understand how so much money can go missing, read what a top U.S. general has to say here. And for major media articles claiming hundreds of billions of dollars are missing, click here.

The Secretary of the Treasury ... is required annually to submit financial statements for the U.S. government to the President and the Congress. GAO is required to audit these statements. Certain material weaknesses in financial reporting and other limitations on the scope of our work resulted in conditions that continued to prevent us from expressing an opinion on the accompanying consolidated financial statements for the fiscal years ended September 30, 2006 and 2005. The federal government did not maintain effective internal control over financial reporting. While we are unable to express an opinion ... the following key items deserve emphasis. The U.S. government’s total reported liabilities, net social insurance commitments, and other fiscal exposures continue to grow and now total approximately $50 trillion, representing approximately four times the Nation’s total output (GDP) in fiscal year 2006, up from about $20 trillion, or two times GDP in fiscal year 2000. The retirement of the“baby boom” generation is [also] closer to becoming a reality with the first wave of boomers eligible for early retirement under Social Security in 2008. It seems clear that the nation’s current fiscal path is unsustainable and that tough choices by the President and the Congress are necessary in order to address the nation’s large and growing long-term fiscal imbalance. Other material weaknesses were the federal government’s inability to: determine the full extent to which improper payments exist; identify and resolve information security control weaknesses; and effectively manage its tax collection activities.

Note: The full 172-page report is available here. Why didn't any of the media cover this eye-opening report? Is the fact that the national debt has risen 150% since 2000 not news? For a possible answer, click here. To learn of the trillions of unaccounted for dollars in the military, click here.

Queuing to get into one nightclub in Spain could soon be a thing of the past for regular customers thanks to a tiny computer chip implanted under their skin. The technology, known as a VeriChip, also means nightclubbers can leave their cash and cards at home and buy drinks using a scanner. The bill can then be paid later. Clubbers who want to join the scheme at Baja Beach Club in Barcelona pay 125 euros (about US $150) for the VeriChip -- about the size of a grain of rice -- to be implanted in their body. Then when they pass through a scanner the chip is activated and it emits a signal containing the individual's number, which is then transmitted to a secure data storage site. The club's director, Conrad Chase, said he began using the VeriChip, made by Applied Digital Solutions, in March 2004 because he needed something similar to a VIP card and wanted to provide his customers with better service. He said 10 of the club's regular customers, including himself, have been implanted with the chip, and predicted more would follow. "I know many people who want to be implanted," said Chase. "Almost everybody now has a piercing, tattoos or silicone. Why not get the chip and be original?" Chase said VeriChip could also boost security by speeding up checks at airports, for example. He denied the scheme had any drawbacks. The VeriChip is an in-house debit card and contains no personal information.

Note: Why is the media so upbeat about this? The article raises very few questions, yet seems to promote microchip implants in humans as the wave of the future for commerce.

Since 1973, Israel has cost the United States about $1.6 trillion. If divided by today's population, that is more than $5,700 per person. This is an estimate by Thomas Stauffer, a consulting economist in Washington. Mr. Stauffer has tallied the total cost to the US of its backing of Israel in its drawn-out, violent dispute with the Palestinians. The bill adds up to more than twice the cost of the Vietnam War. Israel is the largest recipient of US foreign aid. It has been getting $3 billion a year for years. Israel has been given $240 billion since 1973, Stauffer reckons. In addition, the US has given Egypt $117 billion and Jordan $22 billion in foreign aid in return for signing peace treaties with Israel. Stauffer wonders if Americans are aware of the full bill for supporting Israel since some costs, if not hidden, are little known. Other US help includes: • Israel buys discounted, serviceable "excess" US military equipment. Stauffer says these discounts amount to "several billion dollars" over recent years. • Israel uses roughly 40 percent of its $1.8 billion per year in military aid, ostensibly earmarked for purchase of US weapons, to buy Israeli-made hardware. It also has won the right to require the Defense Department or US defense contractors to buy Israeli-made equipment or subsystems, paying 50 to 60 cents on every defense dollar the US gives to Israel. US help ... has enabled Israel to become a major weapons supplier. Weapons make up almost half of Israel's manufactured exports. US defense contractors often resent the buy-Israel requirements and the extra competition subsidized by US taxpayers. Stauffer [has] been assisted in this research by a number of mostly retired military or diplomatic officials who do not go public for fear of being labeled anti-Semitic.

Note: Israel has a population of 6.5 million. Yearly foreign aid to Israel has generally varied between $2.5 to 3.0 billion for many years (it's difficult to locate these figures on U.S. government websites). If you do the math, U.S. taxpayers are giving every man, woman, and child, in Israel about $400/year -- over ten times the per capita rate paid to any other country. That's quite a tax break, especially considering they are not Americans.

The richest 2 percent of adults still own more than half of the world's household wealth, perpetuating a yawning global gap between rich and poor, according to research published Tuesday. The report from the Helsinki-based World Institute for Development Economics Research shows that in 2000 the richest 1 percent of adults - most of whom live in Europe or the United States - owned 40 percent of global assets. The richest 10 percent of adults accounted for 85 percent of assets. By contrast, the bottom 50 percent of the world's adult population owned barely 1 percent of the world's wealth. "Income inequality has been rising for the past 20 to 25 years, and we think that is true for inequality in the distribution of wealth," said James Davies, a professor of economics at the University of Western Ontario, one of the report's authors. But ... there are some hopeful signs: China and India, which are developing rapidly, are gaining wealth, and in countries such as Bangladesh, the spread of microcredit institutions is helping people increase their personal wealth.

Note: If you are interested in a secure vehicle in which to place your investments which helps to directly pull families out of poverty in a big way through microcredit and microloans, click here.

Important Note: Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.