Return to revenue could possibly be in the future for Freddie Mac and Fannie Mae

Freddie Mac and Fannie Mae are starting to creep towards being solvent again. The government had to take control of the 2 troubled firms in 2008, and has lent both houses collectively more than $130 billion. The pending foreclosures postponed by legal issues involving foreclosure practices loom on the horizon, which could hamper any progress the two firms have made. Source of article – Economic effect of biking vs. driving is astounding, experts say by MoneyBlogNewz.

Fannie and Freddie hoping to get more loans

Lots of bailout money went to Freddie Mac and Fannie Mae. They were able to continue business this way. Between the 2 mortgage corporations, $130 billion was lent. This was so the real estate sector wouldn't go under. However, the two toxic corporations are starting to hemorrhage less money, in accordance with ABC. During the last quarter of 2010, the period from October to Dec., Fannie Mae posted a loss of only $2.1 billion and Freddie Mac posted a loss of only $1.7 billion. A $16.3 billion loss from Fannie and $7.8 billion loss from Freddie was reported in this exact same time of 2009. The decreased deficits haven’t stopped the two companies from asking for more loans though. In fact, $500 million from Freddie and $2.6 billion from Fannie have been requested in loans.

Using less of the home loan titans

For decades, Freddie Mac and Fannie Mae have played a crucial role in the real estate industry. The two companies purchase home loans and resell them as investments to be able to free up capital for lenders to lend more mortgages. However, the government is significant about drastically reducing Fannie and Freddie’s involvement in the home loan market, including possibly phasing them out altogether. Treasury Secretary Timothy Geithner has admonished Congress to have a significant plan ready before attempting to vote on anything, in accordance with USA Today. Geithner cautioned House Republicans eager to cut the programs that doing so could have an adverse effect on the real estate industry, including possibly destabilizing the housing finance industry entirely. Geithner has recommended a gradual program as the best course.

Fannie and Freddie expected to get worse

Fannie and Freddie are both anticipated to endure further damage in coming months. Until "robo-signing" cases are solved, many foreclosures can't be completed while about 50 percent of home loans in the United States are owned by Freddie and Fannie while 90 percent were created in the last few years. Whatever reforms take place regarding Freddie and Fannie, Treasury Secretary Geithner expects housing prices to rise just a little bit over the next few years, according to Reuters. He also recommended that given housing conditions over the past few years, home buyers put larger amounts of money down to ensure greater stability.

Information from

ABC News

abcnews.go.com/Business/wireStory?id=12995329&page=1

USA Today

usatoday.com/money/economy/housing/2011-03-01-fannie-freddie-geithner_N.htm

Reuters

reuters.com/article/2011/03/01/us-usa-housing-geithner-idUSTRE72000P20110301?pageNumber=1

Bailout of AIG and GM getting paid off

American International Group and General Motors have been making good progress in paying the United States Treasury back for the bailout loans both corporations received. Despite huge national corporations having to admit defeat and ask for help, both have turned around relatively quickly and made payments on their debt. GM recently posted its largest profits in years. AIG is slowly paying down its balance, though it was the single largest recipient of bailout funds.

Selling MetLife stock so Treasury financial loans could be paid

MetLife insurance shares are being sold off by insurance giant American International Group. USA Today reports that this is how AIG is paying back the United States Treasury for loans. About 146.8 million shares of MetLife stock was sold by AIG getting $6.3 billion for United States Treasury payments. In order to make an effort to buy back the $18.2 billion American International Group shares the Treasury currently owns, American International Group is using the funds. Currently, the government also owns about 92 percent of AIG's common stock. This is because part of the Troubled Asset Relief Program, or TARP mandated this take place. With over $182 billion in financial loans total, AIG got more from the bailout than everyone else. The business received $68 billion in loans. This was after the Treasury and Federal Reserve bought the company's toxic assets.

General Motors coming back

About $49 billion was borrowed from the government for GM during the bailout which the company now wants to pay back. There was a profit for General Motors in every quarter of 2010. This was announced by GM recently, reports Reuters. This marks the first time since 2004 that the automaker has been profitable for an entire year, and it made the largest profit since 1999. GM posted a profit of $4.7 billion for 2010, though the stock price for the business has barely moved since the initial public offering in Nov. About 33 percent of GM stock is the property of the Treasury still. Considering it was at 61 percent in Nov 1010, that is a huge improvement. It is projected the General Motors share price may have to rise to $53 per share for the government to break even.

Was Troubled Asset Relief Program worth it?

The cost of the money going to the housing crisis is more than the cost of putting money to the corporate bailout, David Miller said. Reuters reports that Miller is the chief investment officer for the TARP. Miller said the Congressional Budget Office estimates that TARP will cost a total of $25 billion, and the Obama administration estimates slightly more than $28 billion. Timothy Geithner is the Treasury Secretary. He claims that the $25 billion estimate is higher than it needs to be. Various companies still owe the government $135 billion for Troubled Asset Relief Program financial loans.

Citations

USA Today

usatoday.com/money/economy/2011-03-02-aig-bailout-metlife_N.htm

Reuters

reuters.com/article/2011/02/24/us-gm-idUSTRE71N0ZD20110224

Reuters

reuters.com/article/2011/02/25/usa-treasury-tarp-idUSN2524950220110225

Much more carry-on luggage costing Transportation Security Administration hundreds of thousands

The explosion in cost of checked on airline bags has consumers scrambling for the carry-on luggage, states the Washington Post. The extra carry-on luggage could eventually mean that working class individuals may have to pick up the check the Transportation Security Administration is currently writing. According to Homeland Security Secretary Napolitano, the influx of carry-on baggage is costing approximately $ 260 million per year.

Carry-on luggage has to be much more secure

Travelers will continue to be able to bring luggage on the plane with them as long as carry-on luggage is allowed. However, as Napolitano reminded U.S. Senate Appropriations subcommittee chairwoman Sen. Mary Landrieu, nothing comes free:

“When you have to pay to check a bag, it increases carry-on luggage, and that means there is more to inspect at the gate and so forth for passengers to get on planes,” she said.

A functioning TSA is really significant. Costs have to be absorbed for this to occur. The cost of more carry-on baggage is something either the United States taxpayers or airlines will have to cover. Putting higher airport safety charges on airline tickets was a suggestion Napolitano had for Sen. Landrieu. Simply adding $5 to $10 a ticket would significantly help pay for the Transportation Security Administration. Napolitano states that $600 million a year would be added this way.

Congress has yet to determine if airport safety charges will pass

An airport security fee is far from a new idea. It has appeared each year since the concept was first proposed in 2002. However, Congress has not approved the airline ticket cost increase. The first profitable year since 2007 for the airline industry was reported due to fewer flights, higher ticket prices and other charges. Huge profits are anticipated from the government for the airline industry. About $5 billion in 2011 and $5.6 billion in 2012 are anticipated. Putting more fees on things is something congress doesn't want to try to do.

Economy airline policies on luggage

Before getting to the gate, know exactly what the luggage policies are. You might be surprised by what’s free and what is not. In general, wheelchairs are checked in as free baggage and do not count toward a traveler's baggage allotment. Sometimes the children's strollers will even be checked free. This is just like wheelchair requirements. Typically baggage over 100 pounds won't be allowed. Most economy airlines have these luggage policies:

• Southwest- 2 checked bags up to 50 pounds each are free. Additional and oversized luggage ranges from $25 to much more than $100.
• JetBlue- One bag weighing 50 pounds or less may be checked for free. The second checked bag costs $50. Up to a 40-pound carry-on luggage piece is also free. One can be checked for free. Excess or oversized pieces run $50 to $100.
• Virgin America- First checked bag costs $25 and may weigh up to 70 pounds. Subsequent check-ins up to 50 pounds is $25. Excess and oversized bags run $10 to $50 each.

Articles cited

About.com Air Travel

airtravel.about.com/od/whatyoucancantpack/a/stuff2.htm

Washington Post

washingtonpost.com/wp-dyn/content/article/2011/03/03/AR2011030305679.html?wprss=rss_print/asection

Cenk Uygur vs. Ana Kasperian on carry-on luggage

youtube.com/watch?v=vrM2eOnheo0

Congressmen perhaps victim of Psyops procedures

An investigation has been launched by the Pentagon to see if members of the military illegally used “psyops,” or psychological operations illegally to influence members of Congress while they visited army outposts in Afghanistan. Psychological operations are techniques of psychological manipulation, generally used against enemies, including propaganda and misinformation. Eliciting financing in a collusive manner was why members of Congress were allegedly targeted for psyops by army personnel. Source for this article – Pentagon investigating whether psyops were used on Congressmen by MoneyBlogNewz.

Rolling Stone claims military official ordered psyops on Americans

MSNBC states that a Rolling Stone article explained that a "psyops" or psychological operation was requested by members of the army to get Congress members visiting Afghanistan to give more funding and personnel to the army. In 2009, Lieutenant General William Caldwell supposedly had a psyops team study Congressmen visiting to be able to discover out how more funding and troops for military operations there could possibly be received somehow. The order was refused by Lieutenant Colonel Michael Holmes who’s the head of the psyops unit. This got him in a lot of trouble.

Starting study is General Petraeus

Afghan operations commander General David Petraeus started an investigation. The WA Post states that the accusations are "categorically denied" by Lt. Gen. Caldwell. Citizens of the United States aren't legally allowed to have "psyops" or propaganda used on them. It’s something all Intelligence Operations personnel know very well. There were specific Congressmen targeted for this. It incorporated Senators Al Franken, Carl Levin, Joe Lieberman, Jack Reed and John McCain. Other targets consist of Admiral Mike Mullen and Representative Steve Israel.

Exact same press reporter profiled General McChrystal

Michael Hastings said that Lt. Col. Holmes said the job was to “get the enemy to behave the way we want,” and Holmes said “when you ask me to use these skills on senators and congressmen you are crossing a line," in the Rolling Stone article. He added that individuals in the Information Operations field know from day one that propaganda and psychological manipulation are to be used only on the enemy. Another article was written by Hastings on General Stanley McChrystal. McChrystal ended up leaving the Military after it.

Citations

MSNBC

msnbc.msn.com/id/41753749/ns/world_news-south_and_central_asia

Washington Post

voices.washingtonpost.com/blog-post/2011/02/psychological_operations_manip.html

Rolling Stone

rollingstone.com/politics/news/another-runaway-general-army-deploys-psy-ops-on-u-s-senators-20110223?page=1

NV not looking into Reno's monetary problems

The city of Reno, NV, has found itself in a tough situation. The city received $8 million from the state of NV. The short-term loan was due to be paid back in 365 days. The state of NV is taking the legal mistake in stride and won’t investigate the city. Instead, the state is stretching the payments out over 10 years. Article resource – Reno's mishandling of short term loans going uninvestigated by MoneyBlogNewz.

Reno stuck with loans

Nevada lent a lot of money in short term loans to Reno, Nevada. Over $8 million was lent. There were specific places the loan was designed to go. The streets department, sewer department and general fund for the city were designed to be supported by this. The state expected to have the money repaid within a year. The state was ready to get the money back when the year was up. Reno didn't know it was designed to be repaid though. There is a phrase used to describe this. It’s an “incorrect interpretation of current law.”

Making sure financial loans get re-written

In order to manage the $8 million debt to the state of NV, Reno officials are trying to get the loans re-written. The one year obligation has now been stretched. The debt could be paid in 10 years instead. The city will be required to pay more interest on the money, and the state will hold the loans over time. The state could have to cut another $8 million out of the yearly spending budget for a while.

Where the money went won't be investigated

Though the city of Reno misread the rules concerning this loan, there will be no exploration. Dino DiCianno is a NV Taxation Director. He said it is definitely a “technical violation of state laws.”. Being a legal violation doesn't change anything. The state nevertheless will not be investigating. The state is going to work with Reno. The 10-year loan can be approved by the state. The state is responsible for reviewing each city’s budget, so the responsibility for missing the loan payments is shared. Who, exactly, shares the responsibility for “misinterpreting” the state law will not be investigated.

Articles cited

RGJ

rgj.com/article/20110218/NEWS/110218036/1321/Reno-financial-hanky-panky-likely-to-be-handled-without-investigation–taxation-department-says

Does daylight savings time really save power?

March thirteen, the second Sunday in the month, is when daylight savings time 2011 kicks in. It will be the 5th year since Congress changed daylight savings time in the United States from the first Sunday in April to the second Sunday in March. The change was required by the Energy Policy Act of 2005, but stretching daylight savings time hasn’t been proven to conserve energy.

Daylight saving time: champions and nonwinners

Everywhere in the U.S., excluding both Hawaii and Arizona, could be moving their clocks forward an hour on March thirteen at 2 a.m. for daylight saving time 2011. The reason why daylight saving time occurs is to save power. This has been the case since Germany wanted to save on coal in WW1 starting this tradition. In theory, stretching daylight hours with daylight conserving time saves energy by reducing the need for electric lighting. However, it has been argued that manipulating clocks to save power is the equivalent of extending the length of a rope by cutting off one end and attaching it to the other. Many are confused about daylight saving time. It might help retail and outdoor recreation however farming and entertainment hate this change yearly.

Questioning advantages of it

The Energy Policy Act of 2005 started to encourage conserving energy. This made it so the period of daylight was extended an additional four weeks. The change amended the Uniform Time Act of 1966, and the earlier “spring forward” time was first enacted on March 11, 2007. There would be a 1 percent savings of energy in the U.S. with daylight saving time extensions according to Energy Policy Act of 2005 authors. However, a study in Indiana after that state put all counties on daylight saving time in 2006 found a net decrease in power savings. Converting the entire state to daylight saving time cost Indiana households an additional $8.6 million in utility bills because of higher heating costs in the morning and higher air conditioning costs in the afternoon.

What is good and bad about Daylight Saving time

Because of sleep deprivation, there's really an increase in heart attacks during the first week of daylight savings even though it might not conserve power. Fatal auto crashes and automobile collisions with pedestrians end up going down because of daylight saving time though.

Citations

U.S. News and World Report

health.usnews.com/health-news/family-health/sleep/articles/2009/03/03/13-things-you-probably-didnt-know-about-daylight-saving-time

Wall Street Journal

online.wsj.com/public/article/SB120406767043794825.html

Wikipedia

en.wikipedia.org/wiki/Energy_Policy_Act_of_2005

Research connects cellular phones to brain cell changes

Brain cells are impacted by cellular phone radiation in accordance with a recent study. The research detected an increase in the metabolism of brain cells. Brain cells were impacted in the part of the brain near the antenna of the mobile phone. Researches did not determine if the effects of cellular phones on brain cells was good or bad.

First time cell phone brain research

The first study undertaken to examining how electromagnetic radiation from cell phones impacts brain cells was published in the Journal of the American Medical Association on Tuesday. The way cells phones impact the glucose metabolism was studied. That is where normal brain cell function happens. Researchers found that exposure to cellular phones boosts the rate of glucose metabolism in brain cells more than they expected. Cells creating energy with glucose is what brain activity is. The way brain cells work is that it is produced as necessary. The glucose is produce whenever it is needed by the brain. According to the study, cell phones actually stimulate, artificially, the glucose metabolism although further investigation is needed to determine if brain cells are damaged by this.

Brain cancer because of mobile phone usage?

For years experts have been worried about mobile phone radiation from many phone calls. Previous test outcomes have been inconclusive. Nothing has been found before. You will find some famous cell phone radiation studies though. These link brain cancer with cell phone radiation. There was not any proof though. There was no way to link the brain cancer with the cell phone use. Scientists have tried to set up that cellular phone radiation may cause DNA mutations or other alterations in brain cells that result in cancer or dementia. The impact of cellular phones on children’s brains has been a particular concern because children have thinner skulls, the radiation penetrates further and their brain cells metabolize glucose faster.

Scientists suggest using the speakerphone

In a statement responding to the cellular phone brain cell research, the Wireless Association said scientific evidence proves that cell phones, used within limits established by the Federal Communications Commission, don’t pose a public health risk. Authors of the research suggested that until more is known about the effects of cell phone radiation on brain cells, individuals should use the speaker phone function or a Bluetooth earpiece as often as possible.

Information from

CNN

cnn.com/2011/HEALTH/02/22/cell.phone.brain.activity/

Web MD

webmd.com/brain/news/20110222/cell-phones-affect-brain-but-does-it-matter?page=2

Wall Street Journal

online.wsj.com/article/SB10001424052748704071304576160652541652440.html