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Revealing News For a Better World

News Stories
Excerpts of Key News Stories in Major Media


Below are highly revealing excerpts of key news stories from the major media that suggest major cover-ups and corruption. Links are provided to the full stories on their media websites. If any link fails to function, read this webpage. These news stories are listed by date posted. You can explore the same list by order of importance or by date of news story. By choosing to educate ourselves and to spread the word, we can and will build a brighter future.

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.


The Road to Area 51
2009-04-05, Los Angeles Times
Posted: 2009-04-14 20:18:37
http://www.latimes.com/la-mag-april052009-backstory,0,786384.story

Area 51. It's the most famous military institution in the world that doesn't officially exist. If it did, it would be found about 100 miles outside Las Vegas in Nevada's high desert. Then again, maybe not — the U.S. government refuses to say. You can't drive anywhere close to it, and until recently, the airspace overhead was restricted — all the way to outer space. Any mention of Area 51 gets redacted from official documents, even those that have been declassified for decades. It has become the holy grail for conspiracy theorists, with UFOlogists positing that the Pentagon reverse engineers flying saucers and keeps extraterrestrial beings stored in freezers. Urban legend has it that Area 51 is connected by underground tunnels and trains to other secret facilities around the country. Well, now, for the first time, someone is ready to talk — in fact, five men are, and their stories rival the most outrageous of rumors. Colonel Hugh "Slip" Slater, 87, was commander of the Area 51 base in the 1960s. Edward Lovick, 90, ... spent three decades radar testing some of the world's most famous aircraft. Kenneth Collins, 80, a CIA experimental test pilot, was given the silver star. Thornton "T.D." Barnes, 72, was an Area 51 special-projects engineer. And Harry Martin, 77, was one of the men in charge of the base's half-million-gallon monthly supply of spy-plane fuels. As for the underground-tunnel talk ... Barnes worked on a nuclear-rocket program ... in Area 51's backyard. "Three test-cell facilities were connected by railroad, but everything else was underground," he says.

Note: So the government has been lying to us for 50 years about Area 51 and underground research there. What else are they lying to us about? For a more powerful, incisive article on this development, click here. And why isn't this getting more coverage? For another report showing major media cover-up of UFOs, click here.


Traces of explosives in 9/11 dust, scientists say
2009-04-06, Deseret News (One of Salt Lake City's leading newspapers)
Posted: 2009-04-14 20:17:01
http://www.deseretnews.com/article/0,5143,705295677,00.html

Tiny red and gray chips found in the dust from the collapse of the World Trade Center contain highly explosive materials — proof, according to a former BYU professor, that 9/11 is still a sinister mystery. Physicist Steven E. Jones, who retired from Brigham Young University in 2006 after the school recoiled from the controversy surrounding his 9/11 theories, is one of nine authors on a paper published last week in the online, peer-reviewed Open Chemical Physics Journal. Also listed as authors are BYU physics professor Jeffrey Farrer and a professor of nanochemistry at the University of Copenhagen in Denmark. For several years, Jones has theorized that pre-positioned explosives, not fires from jet fuel, caused the rapid, symmetrical collapse of the two World Trade Center buildings, plus the collapse of a third building, WTC-7. The newest research, according to the journal authors, shows that dust from the collapsing towers contained a "nano-thermite" material that is highly explosive. A layer of dust lay over parts of Manhattan immediately following the collapse of the towers, and it was samples of this dust that Jones and fellow researchers requested in a 2006 paper, hoping to determine "the whole truth of the events of that day." They eventually tested four samples they received from New Yorkers. Red/gray chips ... were found in all four dust samples. The chips were then analyzed using scanning electron microscopy and other high-tech tools. The red layer of the chips, according to the researchers, contains a "highly energetic" form of thermite.

Note: For the full text of this path-breaking scientific report, click here. Note that other major media failed to pick up this important news, though you can watch a Dutch news report (with English subtitles) on YouTube available here. For more key reports on the cutting-edge research of Prof. Steven Jones, click here.


Fifth Alarm for That Haunted Fireman
2009-04-05, New York Times
Posted: 2009-04-14 20:15:54
http://www.nytimes.com/2009/04/05/arts/television/05harr.html?partner=rss&emc...

In Season 5 of “Rescue Me,” which begins Tuesday on FX, the specter of 9/11 becomes a major character once again, when a French journalist starts interviewing firefighters about their experiences for a commemorative book. This season one major character will become seriously ill with cancer apparently caused by his work at ground zero. Another, Franco Rivera (Daniel Sunjata), will articulate his ... belief that 9/11 was “an inside job,” the result of “a massive neoconservative government conspiracy” that was designed to increase American power by creating a pretext for seizing control of the world’s oil supplies — a view Mr. Sunjata himself happens to share. “The reason we wrote it,” Mr. Tolan said, “is that Danny was spouting this stuff and even some of the guys, the firefighters on the set, were saying ‘What is this?’ We saw how divisive this was and thought: We have to do this.” Mr. Sunjata admits to some trepidation about how the show’s audience will react to the story line. “I won’t say that my opinions were warmly received on the set,” he said. “At one point I thought, ‘Maybe I’ll get fired if I keep opening my mouth.’ But even though Peter and Denis didn’t sign on to this conspiracy, they were brave enough to include it in the show. I give them and FX and Fox — I never thought I’d say this — a big round of applause.” Mr. Sunjata certainly had reason to fear losing his job, since “Rescue Me” has never been timid about dispatching major characters.

Note: To read why hundreds of professors and professionals agree with Daniel Sunjata, click here and here.


‘No-Risk’ Insurance at F.D.I.C.
2009-04-07, New York Times
Posted: 2009-04-14 20:14:49
http://www.nytimes.com/2009/04/07/business/07sorkin.html?partner=rss&emc=rss&...

The Federal Deposit Insurance Corporation was set up 76 years ago with the important but simple job of insuring bank deposits. Now, because of what could politely be called mission creep, it’s elbowing its way into the middle of the financial mess as an enabler of enormous leverage. In the fine print of Treasury Secretary Timothy F. Geithner’s plan to lend as much as $1 trillion to private investors to help them buy toxic assets from our nation’s banks, you’ll find some details of how the F.D.I.C is trying to stabilize the system by adding more risk, not less, to the system. It’s going to be insuring 85 percent of the debt, provided by the Treasury, that private investors will use to subsidize their acquisitions of toxic assets. These loans, while controversial, were given a warm welcome by the market when they were first announced. And why not? The terms are hard to beat. They are, for example, “nonrecourse,” which means that if an investor loses money, he owes taxpayers nothing. It’s the closest thing to risk-free investing — with leverage! — around. But, as we’ve learned the hard way these last couple of years, risk-free investing is an oxymoron. So where did the risk go this time? To the F.D.I.C., and ultimately, to us taxpayers. A close reading of the F.D.I.C.’s statute suggests the agency is using a unique — some might call it plain wrong — reading of its own rule book to accomplish this high-wire act. Somehow, in the name of solving the financial crisis, the F.D.I.C. has seemingly been given a blank check, with virtually no oversight by Congress.

Note: For a powerfully revealing archive of reports from reliable sources on the hidden realities of the financial bailout, click here.


U.S. May Enlist Small Investors in Bank Bailout
2009-04-09, New York Times
Posted: 2009-04-14 20:12:05
http://www.nytimes.com/2009/04/09/business/09fund.html?partner=rss&emc=rss&pa...

During World War I, Americans were exhorted to buy Liberty Bonds to help their soldiers on the front. Now, it seems, they will be asked to come to the aid of their banks — with the added inducement of possibly making some money for themselves. As part of its sweeping plan to purge banks of troublesome assets, the Obama administration is encouraging several large investment companies to create the financial-crisis equivalent of war bonds: bailout funds. The idea is that these investments, akin to mutual funds that buy stocks and bonds, would give ordinary Americans a chance to profit from the bailouts that are being financed by their tax dollars. But there is another, deeply political motivation as well: to quiet accusations that all of these giant bailouts will benefit only Wall Street plutocrats. If, as some analysts suspect, the banks’ assets are worth even less than believed, the funds’ investors could suffer significant losses. Nonetheless, the administration and executives in the financial industry are pushing to establish the investment funds, in part to counter swelling hostility against the financial industry. The embrace of smaller investors underscores the concern in Washington and on Wall Street that Americans’ anger could imperil further efforts to stimulate the economy with vast amounts of government spending. Many Americans say they believe the bailout programs ... will benefit only a golden few, including some of the institutions that helped push the economy to the brink. Critics like Joseph E. Stiglitz, a Nobel Prize-winning economist, argue that the bailouts merely privatize profits and socialize losses.

Note: For a powerfully revealing archive of reports from reliable sources on the hidden realities of the financial bailout, click here.


Why Creditors Should Suffer, Too
2009-04-05, New York Times
Posted: 2009-04-14 20:09:57
http://www.nytimes.com/2009/04/05/business/economy/05view.html?partner=rss&em...

The Obama administration’s proposals to reform financial regulation sound ambitious enough as they aim to bring companies like A.I.G. under a broader umbrella of government rule-making and scrutiny. But there is a big hole in these proposals, as there has already been in the government’s approach to bailing out failing financial companies. Even as they focus on firms deemed too big to fail, the new proposals immunize the creditors and counterparties of such firms by protecting them from their own lending and trading mistakes. This pattern has been evident for months, with the government aiding creditors and counterparties every step of the way. Yet this has not been explained openly to the American public. In truth, it’s not the shareholders of the American International Group who benefited most from its bailout; they were mostly wiped out. The great beneficiaries have been the creditors and counterparties at the other end of A.I.G.’s derivatives deals — firms like Goldman Sachs, Merrill Lynch, Deutsche Bank, Société Générale, Barclays and UBS. These firms engaged in deals that A.I.G. could not make good on. The bailout, and the regulatory regime outlined by Timothy F. Geithner, the Treasury secretary, would give firms like these every incentive to make similar deals down the road. In both the bailouts and in the new proposals, the government is effectively neutralizing creditors as a force for financial safety. This suggests a scary possibility — that the next regulatory regime could end up even worse than the last.

Note: For a powerfully revealing archive of reports from reliable sources on the hidden realities of the financial bailout, click here.


Revelations of the wholesale greed and blatant transgressions of Wall Street
2009-04-03, PBS Bill Moyers Journal
Posted: 2009-04-14 20:08:37
http://www.pbs.org/moyers/journal/04032009/transcript1.html

BILL MOYERS: For months now, revelations of the wholesale greed and blatant transgressions of Wall Street have reminded us that "The Best Way to Rob a Bank Is to Own One." In fact, the man you're about to meet wrote a book with just that title. Bill Black, ... what's your definition of fraud? WILLIAM K. BLACK: Fraud is deceit. And the essence of fraud is, "I create trust in you, and then I betray that trust, and get you to give me something of value." And as a result, there's no more effective acid against trust than fraud, especially fraud by top elites, and that's what we have. Well, The way that you do it is to make really bad loans, because they pay better. Then you grow extremely rapidly, in other words, you're a Ponzi-like scheme. And the third thing you do is we call it leverage. That just means borrowing a lot of money, and the combination creates a situation where you have guaranteed record profits in the early years. That makes you rich, through the bonuses that modern executive compensation has produced. It also makes it inevitable that there's going to be a disaster down the road. BILL MOYERS: So you're ... saying that CEOs of some of these banks and mortgage firms in order to increase their own personal income, deliberately set out to make bad loans? WILLIAM K. BLACK: Yes. BILL MOYERS: If I wanted to go looking for the parties to this, with a good bird dog, where would you send me? WILLIAM K. BLACK: Well, that's exactly what hasn't happened. We haven't looked, all right? You'd look at the specialty lenders. The lenders that did almost all of their work in the sub-prime and what's called Alt-A, liars' loans.

Note: William K. Black is the former senior regulator who cracked down on banks during the savings and loan crisis of the 1980s. He is now an Associate Professor of Economics and Law at the University of Missouri. The video of this fascinating interview is available here. For a powerfully revealing archive of reports from reliable sources on the hidden realities of the financial bailout, click here.


Latest CIA Scandal Puts Focus on How Agency Polices Self
2009-03-20, Washington Post
Posted: 2009-04-14 20:07:13
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/19/AR20090319041...

As a novice CIA case officer in the Middle East, Andrew Warren quickly learned the value of sex in recruiting spies. Colleagues say that he made an early habit of taking informants to strip clubs, and that he later began arranging out-of-town visits to brothels for his best recruits. Often Warren would travel with them, according to two colleagues who worked with him for years. His methods earned him promotions and notoriety over a lengthy career, until Warren, 41, became ensnared in a sex scandal. Two Algerian women have accused the Virginia native of drugging and sexually assaulting them, and, in one instance, videotaping the encounter. The episode -- one of three sex-related scandals to shake the CIA this year -- has drawn harsh questions from Congress about whether the agency adequately polices its far-flung workforce or takes sufficient steps to root out corrupt behavior. Former officers say the cases underscore a perennial challenge: guarding against scandal in a workforce -- the size of which is classified but is generally estimated to be 20,000 -- that prides itself on secrecy and deception. "You have an organization of professional liars," said Tyler Drumheller, who oversaw hundreds of officers as chief of the agency's European division. Experienced field managers are needed, he said, because inevitably "some people will try to take advantage of the system . . . and it's a system that can be taken advantage of." The recent string of embarrassing revelations started with the CIA's former No. 3 officer, Kyle "Dusty" Foggo, who was indicted on corruption charges two years ago.

Note: For in-depth analysis of the continuing revelations of a long history of the CIA's use of sex to control people, click here.


Why We Must Fix Our Prisons
2009-03-29, Parade magazine
Posted: 2009-04-14 20:05:42
http://www.parade.com/news/2009/03/why-we-must-fix-our-prisons.html

America's criminal justice system has deteriorated to the point that it is a national disgrace. Its irregularities and inequities cut against the notion that we are a society founded on fundamental fairness. Our failure to address this problem has caused the nation's prisons to burst their seams with massive overcrowding, even as our neighborhoods have become more dangerous. We are wasting billions of dollars and diminishing millions of lives. We need to fix the system. Doing so will require a major nationwide recalculation of who goes to prison and for how long and of how we address the long-term consequences of incarceration. The United States has by far the world's highest incarceration rate. With 5% of the world's population, our country now houses nearly 25% of the world's reported prisoners. We currently incarcerate 756 inmates per 100,000 residents, a rate nearly five times the average worldwide of 158 for every 100,000. All told, about one in every 31 adults in the United States is in prison, in jail, or on supervised release. This all comes at a very high price to taxpayers: Local, state, and federal spending on corrections adds up to about $68 billion a year. Our overcrowded, ill-managed prison systems are places of violence, physical abuse, and hate, making them breeding grounds that perpetuate and magnify the same types of behavior we purport to fear. Post-incarceration re-entry programs are haphazard or, in some places, nonexistent, making it more difficult for former offenders who wish to overcome the stigma of having done prison time and become full, contributing members of society.

Note: The author of this analysis, Senator Jim Webb (D. Va.), is a PARADE Contributing Editor and the author of nine books, including A Time to Fight.


'US graft adds to Mexico's woes'
2009-03-30, BBC News
Posted: 2009-04-14 20:04:22
http://news.bbc.co.uk/2/hi/americas/7971335.stm

Mexican President Felipe Calderon has warned that corruption among American officials may be making it harder to deal with drug-trafficking between Mexico and the US. Mr Calderon said violence in the border city of Juarez had fallen by 73% in the month since he sent 7,000 extra troops there. There has been open warfare in Juarez for more than a year; last year, 5,600 people were killed in drug-related attacks in Mexico, many in Juarez. President Calderon said it was impossible to smuggle [tons] of cocaine into the United States without the complicity of some American authorities. "There is trafficking in Mexico because there is corruption in Mexico," he told the BBC. "But by the same argument if there is trafficking in the United States it is because there is some corruption in the United States... It is impossible to pass tonnes of cocaine to the United States without the complicity of some American authorities." The situation along the border is very sensitive politically, and although the White House may wonder privately whether there is some corruption among some American customs, immigration and police officials, it is unlikely to admit it publicly.

Note: For powerfully revealing information on involvement of U.S. officials in the illegal drug trade, click here.


Communities print their own currency to keep cash flowing
2009-04-05, USA Today
Posted: 2009-04-14 20:02:43
http://www.usatoday.com/money/economy/2009-04-05-scrip_N.htm

A small but growing number of cash-strapped communities are printing their own money. Borrowing from a Depression-era idea, they are aiming to help consumers make ends meet and support struggling local businesses. The systems generally work like this: Businesses and individuals form a network to print currency. Shoppers buy it at a discount — say, 95 cents for $1 value — and spend the full value at stores that accept the currency. Ed Collom, a University of Southern Maine sociologist who has studied local currencies, says they encourage people to buy locally. Merchants, hurting because customers have cut back on spending, benefit as consumers spend the local cash. "We wanted to make new options available," says Jackie Smith of South Bend, Ind., who is working to launch a local currency. "It reinforces the message that having more control of the economy in local hands can help you cushion yourself from the blows of the marketplace." About a dozen communities have local currencies, says Susan Witt, founder of BerkShares in the Berkshires region of western Massachusetts. She expects more to do it. Under the BerkShares system, a buyer goes to one of 12 banks and pays $95 for $100 worth of BerkShares, which can be spent in 370 local businesses. Since its start in 2006, the system, the largest of its kind in the country, has circulated $2.3 million worth of BerkShares. During the Depression, local governments, businesses and individuals issued currency, known as scrip, to keep commerce flowing when bank closings led to a cash shortage."


Big Bonuses at Fannie and Freddie Draw Fire
2009-04-04, New York Times
Posted: 2009-04-11 07:04:13
http://www.nytimes.com/2009/04/04/business/04bonus.html?partner=rss&emc=rss&p...

Fannie Mae and Freddie Mac, the two troubled companies at the heart of the nation’s mortgage market, are set to pay their employees “retention bonuses” totaling $210 million, despite calls from lawmakers to cancel the payments. The bonuses, which were made public on Friday, were defended by the companies’ federal regulator, James B. Lockhart, who said he intended to let them proceed. In a letter sent last week to Senator Charles E. Grassley, an Iowa Republican, Mr. Lockhart disclosed that 7,600 Fannie and Freddie workers were scheduled to receive payouts aimed at retaining those “employees most critical to keep and difficult to replace.” Under the plan, 213 employees will receive retention bonuses worth more than $100,000 this year, and one Freddie Mac executive will receive $1.3 million. Those figures drew sharp rebukes from Mr. Grassley and other lawmakers, who noted that Fannie and Freddie had received pledges of $400 billion from taxpayers to offset huge losses since they were seized by the government in September. Similar bonuses paid by the American International Group, which was also bailed out by taxpayers, incited fiery attacks from the White House and legislators when they were revealed last month. “It’s hard to see any common sense in management decisions that award hundreds of millions in bonuses when their organizations lost more than $100 billion in a year,” Mr. Grassley said in a statement. “It’s an insult that the bonuses were made with an infusion of cash from taxpayers.”

Note: For many revealing reports on the realities behind the Wall Street bailouts, click here.


Judge Rules Some Prisoners at Bagram Have Right of Habeas Corpus
2009-04-04, New York Times
Posted: 2009-04-11 07:02:54
http://www.nytimes.com/2009/04/03/washington/03bagram.html?partner=rss&emc=rs...

A federal judge ruled on Thursday that some prisoners held by the United States military in Afghanistan have a right to challenge their imprisonment, dealing a blow to government efforts to detain terrorism suspects for extended periods without court oversight. In a 53-page ruling that rejected a claim of unfettered executive power advanced by both the Bush and Obama administrations, United States District Judge John D. Bates said that three detainees at the United States’ Bagram Air Base had the same legal rights that the Supreme Court last year granted to prisoners held at the American naval base in Guantánamo Bay, Cuba. The three detainees — two Yemenis and a Tunisian — say that they were captured outside Afghanistan and taken to Bagram, and that they have been imprisoned for more than six years without trials. Arguing that they were not enemy combatants, the detainees want a civilian judge to review the evidence against them and order their release, under the constitutional right of habeas corpus. The importance of Bagram as a holding site for terrorism suspects captured outside Afghanistan and Iraq has increased under the Obama administration, which prohibited the Central Intelligence Agency from using its secret prisons for long-term detention and ordered the military prison at Guantánamo closed within a year. The administration had sought to preserve Bagram as a haven where it could detain terrorism suspects beyond the reach of American courts, telling Judge Bates in February that it agreed with the Bush administration’s view that courts had no jurisdiction over detainees there.

Note: For key articles from major media sources on threats to civil liberties, click here.


Banks Get New Leeway in Valuing Their Assets
2009-04-03, New York Times
Posted: 2009-04-11 07:01:25
http://www.nytimes.com/2009/04/03/business/03fasb.html?partner=rss&emc=rss&pa...

A once-obscure accounting rule that infuriated banks ... was changed Thursday to give banks more discretion in reporting the value of mortgage securities. The change seems likely to allow banks to report higher profits by assuming that the securities are worth more than anyone is now willing to pay for them. But critics objected that the change could further damage the credibility of financial institutions by enabling them to avoid recognizing losses from bad loans they have made. Critics also said that since the rules were changed under heavy political pressure, the move compromised the independence of the organization that did it, the Financial Accounting Standards Board. During the financial crisis, the market prices of many securities, particularly those backed by subprime home mortgages, have plunged to fractions of their original prices. That has forced banks to report hundreds of billions of dollars in losses over the last year, because some of those securities must be reported at market value each three months, with the bank showing a profit or loss based on the change. At first FASB ... resisted making changes, but that changed within a few days of a Congressional hearing at which legislators from both parties demanded the board act. “There is a perception that we are yielding to political pressure,” one board member, Lawrence W. Smith, said as he voted for the changes. A group headed by two former chairmen of the Securities and Exchange Commission, one who served under President Bill Clinton and one who was appointed by President George W. Bush, said that it feared that politicization of accounting standards would destroy the credibility of the board.

Note: For many revealing reports on the realities behind the Wall Street bailouts, click here.


NATO Meeting to Highlight Strains on Afghanistan
2009-04-03, New York Times
Posted: 2009-04-11 07:00:06
http://www.nytimes.com/2009/04/03/world/europe/03nato.html?partner=rss&emc=rs...

NATO leaders gathered here Friday to celebrate the 60th anniversary of [the] alliance ... also must face the harsh reality that NATO’s first military mission outside Europe is failing in a way that risks fracturing the alliance. Obama, [by] increasing American troops in Afghanistan to some 68,000 by the end of the year from 38,000 today, is also likely to significantly Americanize an operation that in recent years had been divided equally between American troops and allied forces. By year’s end, American troops will outnumber allied forces by at least two to one. His NATO allies are giving ... him very few new troops on the ground, underlining the fundamental strains in the alliance. The allies will offer more funds but no more than several thousand new personnel members, according to alliance military planners. Many of those will not be soldiers, but police trainers to meet a central pillar of the president’s new Afghan strategy, which focuses on an expansion of Afghan security forces. But even for the small numbers of European combat reinforcements, check the fine print: Nearly all will be sent to provide security for Afghanistan’s elections this summer, and will not be permanently deployed. Defense Secretary Robert M. Gates and his British counterpart, John Hutton, have publicly warned that the performance of some European troops demonstrates that NATO risks slipping toward a two-tiered alliance. In that event, it would be divided between those that can and will fight, like Britain, Canada, France and Poland, and those that cannot or will not because of public opinion at home.

Note: Why does the U.S. need a strong presence in Afghanistan? Obama is clearly giving in to the military/industrial complex by pouring billions of tax dollars into operations in this country where military contractors can reap huge profits. For the comments of a top U.S. general revealing the deeper reasons behind war, click here. For further important revelations from reliable sources about the wars in Iraq and Afghanistan, click here.


Financial Industry Paid Millions to Obama Aide
2009-04-04, New York Times
Posted: 2009-04-11 06:58:41
http://www.nytimes.com/2009/04/04/us/politics/04disclose.html?partner=rss&emc...

Lawrence H. Summers, the top economic adviser to President Obama, earned more than $5 million last year from the hedge fund D. E. Shaw and collected $2.7 million in speaking fees from Wall Street companies that received government bailout money, the White House disclosed. Mr. Summers, the director of the National Economic Council, wields important influence over Mr. Obama’s policy decisions for the troubled financial industry, including firms from which he recently received payments. Last year, he reported making 40 paid appearances, including a $135,000 speech to the investment firm Goldman Sachs, in addition to his earnings from the hedge fund, a sector the administration is trying to regulate. Mr. Summers’s role at the White House includes advising Mr. Obama on whether — and how — to tighten regulation of hedge funds, which engage in highly sophisticated financial trading that many analysts have said contributed to the economic collapse. Mr. Summers ... appeared before large Wall Street companies like Citigroup ($45,000), J. P. Morgan ($67,500) and the now defunct Lehman Brothers ($67,500), according to his disclosure report. While Mr. Obama campaigned on a pledge to restrict lobbyists from working in the White House, a step intended to reduce any influence between the administration and corporations, the ban did not apply to former executives like Mr. Summers, who was not a registered lobbyist. In 2006, he became a managing director of D. E. Shaw, a firm that manages about $30 billion in assets, making it one of the biggest hedge funds in the world.

Note: For many revealing reports on the realities behind the Wall Street bailouts, click here.


Obama’s Ersatz Capitalism
2009-04-01, New York Times
Posted: 2009-04-11 06:56:08
http://www.nytimes.com/2009/04/01/opinion/01stiglitz.html?partner=rss&emc=rss...

The Obama administration’s $500 billion or more proposal to deal with America’s ailing banks has been described by some in the financial markets as a win-win-win proposal. Actually, it is a win-win-lose proposal: the banks win, investors win — and taxpayers lose. Treasury hopes to get us out of the mess by replicating the flawed system that the private sector used to bring the world crashing down, with a proposal marked by overleveraging in the public sector, excessive complexity, poor incentives and a lack of transparency. In theory, the administration’s plan is based on letting the market determine the prices of the banks’ “toxic assets” — including outstanding house loans and securities based on those loans. The reality, though, is that the market will not be pricing the toxic assets themselves, but options on those assets. The two have little to do with each other. The government plan in effect involves insuring almost all losses. Since the private investors are spared most losses, then they primarily “value” their potential gains. This is exactly the same as being given an option. Under the plan by Treasury Secretary Timothy Geithner, the government would provide about 92 percent of the money to buy the asset but would stand to receive only 50 percent of any gains, and would absorb almost all of the losses. Some partnership! What the Obama administration is doing is far worse than nationalization: it is ersatz capitalism, the privatizing of gains and the socializing of losses. It is a “partnership” in which one partner robs the other.

Note: The author of this analysis, Joseph E. Stiglitz, is a professor of economics at Columbia University. He was chairman of the Council of Economic Advisers from 1995 to 1997, and was awarded the Nobel prize in economics in 2001. For many revealing reports on the realities behind the Wall Street bailouts, click here.


Inquiry Asks Why A.I.G. Paid Banks
2009-03-27, New York Times
Posted: 2009-04-11 06:54:00
http://www.nytimes.com/2009/03/27/business/27cuomo.html?partner=rss&emc=rss&p...

Members of Congress and the New York State attorney general demanded detailed information Thursday on how tens of billions of taxpayer dollars flowed through the American International Group during its crisis last fall and ended up in the coffers of several dozen big banks, shielding them from losses. The new inquiries shine a spotlight on a question that is exponentially bigger, in dollars, than the $165 million in bonuses that A.I.G. paid out this month, but which has been overshadowed until now by the uproar over the bonuses. “We would like to know if the A.I.G. counterparty payments, as made, were in the best interests of the taxpayers who provided the funding,” said Representative Elijah E. Cummings, Democrat of Maryland, in a letter to Neil M. Barofsky, the special inspector general for the Troubled Asset Relief Program. The banks and investment firms that ended up with A.I.G.’s bailout money last fall were, in many cases, counterparties to derivatives contracts it had sold, known as credit-default swaps, which guaranteed the value of assets in their investment portfolios. They included Wall Street firms, like Goldman Sachs, JPMorgan Chase and Merrill Lynch, that have successfully resisted efforts to regulate credit derivatives in the past. In several hearings this month, members of Congress said they believed the derivatives had often been used to speculate, not to manage risk. They have expressed outrage that A.I.G.’s trading partners got 100 cents on the dollar for their money-losing trades when ordinary Americans paying for the bailout have suffered big losses in their 401(k) accounts and other investments.

Note: For many revealing reports on the realities behind the Wall Street bailouts, click here.


Powerful proponent of psychiatric drugs for children primed for a fall
2009-03-27, San Francisco Chronicle (San Francisco's leading newspaper)
Posted: 2009-04-11 06:52:39
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/03/27/EDAF16N963.DTL

Dr. Joseph Biederman, chief of the Massachusetts General Pediatric Psychopharmacology Clinic, is already under investigation by Harvard University and the National Institutes of Health for failing to report income received from drug companies. Biederman has strongly pushed treating children's mental illnesses with powerful antipsychotic medicines. Diagnoses like ADHD and pediatric bipolar disorder, along with psychiatric drug use in American children, have soared in the last 15 years. No other country medicates children as frequently. Now, in newly released court documents, Biederman appears to be promising drugmaker Johnson & Johnson in advance that his studies on the antipsychotic drug risperidone will prove the drug to be effective when used on preschool age children. Biederman's status at Harvard and his research have arguably made him, until recently, America's most powerful doctor in child psychiatry. Reports from court actions, along with an ongoing investigation of conflict of interest charges led by Sen. Chuck Grassley, R-Iowa, threaten to topple Biederman from his heretofore untouchable Olympian heights. Biederman's conflict of interest problems have exposed his strong pro-drug views to the public for scrutiny. Until now, fear of the Biederman team has operated quietly on the small club of child psychiatric researchers. Only when 2-year-olds started taking three psychiatric drugs simultaneously under a Biederman protocol for bipolar disorder did the emperor's clothes become so invisible as to begin the naming of names. Biederman's personal travails tragically inform us about a crisis in academic medicine that must be resolved.

Note: For a powerful overview of corruption in the pharmaceutical industry, click here.


CIA expert: Electronic voting not secure
2009-03-25, Miami Herald/McClatchy News
Posted: 2009-04-11 06:51:06
http://www.miamiherald.com/news/americas/story/966214.html

The CIA, which has been monitoring foreign countries' use of electronic voting systems, has reported apparent vote-rigging schemes in Venezuela, Macedonia and Ukraine and a raft of concerns about the machines' vulnerability to tampering. In a presentation that could provide disturbing lessons for the United States, where electronic voting is becoming universal, [CIA cybersecurity expert] Steve Stigall summarized what he described as attempts to use computers to undermine democratic elections in developing nations. His remarks have received no news media attention until now. Stigall told the Election Assistance Commission ... that computerized electoral systems can be manipulated at five stages, from altering voter registration lists to posting results. Stigall said voting equipment connected to the Internet could be hacked, and machines that weren't connected could be compromised wirelessly. Eleven U.S. states have banned or limited wireless capability in voting equipment, but Stigall said elections officials didn't always know it when wireless cards were embedded in their machines. Stigall said that most Web-based ballot systems had proved to be insecure. The commission has been criticized for giving states more than $1 billion to buy electronic equipment without first setting performance standards. Numerous computer-security experts have concluded that U.S. systems can be hacked, and allegations of tampering in Ohio, Florida and other swing states have triggered a campaign to require all voting machines to produce paper audit trails.

Note: For key articles from reliable sources exposing the many flaws in electronic voting systems, click here.


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