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Archive for the ‘Obama’ Category

Iran is Pissed Off, Supreme Leader to Speak

TEHRAN — As another day of defiance and uncertainty loomed in Iran’s capital on Friday, it was increasingly apparent that there was no clear path out of a deepening confrontation that has posed the most serious challenge to the Islamic republic in its 30-year history.

After another day of mass protests Thursday, apparent concessions by the authorities and ominous threats, many Iranians looked to a scheduled appearance by the country’s supreme leader, Ayatollah Ali Khamenei, who is to lead the national prayer service from Tehran University on Friday.

Political analysts said they hoped that the leader will reveal his ultimate intent, indicating a willingness to either appease the opposition or demand an end to protests.

Hundreds of thousands of silent protesters flooded into the streets Thursday. They roared a welcome to their champion, Mir Hussein Moussavi, the opposition candidate for president whose reported defeat by President Mahmoud Ahmadinejad in elections a week ago touched off the crisis.

Follow the Money in Health Care Debate

Congress appears ready to confront one of the nation’s most contentious issues — health care reform — and arguments will fill the air in the coming months.

Much of the discussion so far has focused on President Obama’s proposal for a government-sponsored health plan that he says will reduce costs. Insurers and doctors argue it will limit patient choice. Drug companies warn that the quality of care could be compromised.

Roughly $2.5 trillion is at stake, the amount the nation spends each year on health care, nearly a fifth of the American economy.

How that money is divided up — or prevented from rising at its current pace — is at the center of the debate. Many doctors, insurance companies and drug companies say they fear that their revenues could shrink significantly and patient care could be threatened.

As Congress gets closer to finalizing any legislation, the opinions of the many stakeholders are likely to become more strident and self-interested.

Obama Targets Job Outsourcing

President Barack Obama promised sternly on Monday to crack down on companies “that ship jobs overseas” and duck U.S. taxes with offshore havens.

It won’t be easy. Democrats have been fighting — and losing — this battle since John F. Kennedy made a similar proposal in 1961.

The president’s plan would limit the ability of U.S. companies to defer paying U.S. taxes on overseas profits. At the same time, Obama would step up efforts to go after evaders who abuse offshore tax shelters.

“It’s a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, N.Y.,” Obama said Monday.

Better Times Are Coming?

By Eric Martin and Lynn Thomasson

April 10 (Bloomberg) — U.S. stocks rose for a fifth week, capping the steepest rally since 1933, as Wells Fargo & Co.’s higher-than-estimated earnings and speculation banks will pass government stress tests spurred optimism that the industry’s slump is ending.

Bank of America Corp., American Express Co. and JPMorgan Chase & Co. helped drive a gauge of 80 financial companies in the Standard & Poor’s 500 Index to a 9.4 percent advance. Wells Fargo surged 20 percent after reporting record first-quarter profit. Lincoln National Corp. and Principal Financial Group Inc. jumped at least 37 percent as the Treasury considered bailouts for life insurers.

“This was a really, really positive start to the earnings season,” Hugh Johnson, who oversees $750 million as chairman of Johnson Illington Advisors in Albany, New York, told Bloomberg Television. “Banks are not going to be forced to take the kind of write-offs they had to take in prior quarters.”

The S&P 500 gained 1.7 percent to 856.56. It has soared 27 percent since March 9, the most in 23 days since the Great Depression, according to Howard Silverblatt, an analyst at S&P. The Dow Jones Industrial Average added 0.8 percent to 8,083.38 this week. U.S. exchanges are closed today for Good Friday.

The highest U.S. unemployment since 1983 has forced consumers to restrain spending. The number of Americans filing first-time claims for unemployment insurance exceeded 600,000 for a 10th straight week. The total collecting benefits rose to a record in a sign that the labor market remains weak.

Hard Line Against GM and Chrysler Puts Bailout Firms on Notice

The administration’s display of authority sent U.S. stocks tumbling and raised questions about whether the government would take similar steps against top executives at U.S. banks that are also receiving government bailout funds.

The administration told GM and Chrysler they had failed to come up with restructuring plans that justify the billions of dollars in additional taxpayer funds they are requesting. GM was ordered to devise a new plan, while Chrysler was instructed to reach a deal with Fiat in which the Italian carmaker would take a stake in Chrysler.

The government is currently stress-testing the nation’s 20 largest banks and “maybe three fail the test,” said an executive at a large bank receiving government funds. Obama “could remove the heads of those banks,” the executive said.

“He had to do something dramatic; he had plenty of cause on this one,” the executive said, adding that the outlook for GM was extremely grim.

Congress Played Large Part in Excessive AIG Bonus Mess

If President Barack Obama wants to find a scapegoat for the mess at American International Group, he needs only to look east from the White House to the halls of Congress.

That’s where the legislation was enacted that laid the groundwork for AIG’s collapse, its subsequent multibillion-dollar bailout and even the millions of dollars in bonuses being paid to AIG executives that have so outraged Obama, members of Congress and taxpayers.

Call it the law of unintended consequences.

The controversy boiled over Monday when Obama took aim at the bonuses going to executives who oversaw the risky bets that sank the giant insurer.

AIG has taken out $170 billion in federal funds, and federal officials overseeing the company say it is not out of the woods yet. The backlash intensified over the weekend when the company, now 80 percent owned by U.S. taxpayers, said it was locked into paying $165 million in bonuses to key executives.

“We’ve asked the car dealers to restructure their organization, including workers restructuring their union contracts in order to save the auto industry,” said Sen. John Cornyn, R-Texas. “We ought to be asking the leadership at AIG to make the same kind of concessions to save AIG and the taxpayers’ dollars.”

Obama Says Present Financial Crisis is Great Opportunity

WASHINGTON (AP) — President Barack Obama on Saturday challenged his country to see its hard times as a chance to “discover great opportunity in the midst of great crisis.”

“That is what we can do and must do today. And I am absolutely confident that is what we will do,” Obama said in his weekly radio and video address, taped a day earlier at the White House.

As the White House takes on so many huge issues at once, Obama is encouraging people to take a longer view, and not get caught up in the fits and starts. The president said in his address that the nation will continue to face difficult days in the months ahead. Still, he ended with hope.

“Yes, this is a moment of challenge for our country,” Obama said. “But we’ve experienced great trials before. And with every test, each generation has found the capacity to not only endure, but to prosper — to discover great opportunity in the midst of great crisis.”