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Subscribe to RSSThe sequester -- a series of sudden, deep cuts in military and domestic spending -- was supposed to be so destabilizing and unthinkable that it was conceived specifically to force Washington to work together on an alternative budget.
But in the face of dire warnings from President Barack Obama and some congressional leaders about these looming spending reductions, there seem few signs of panic on Capitol Hill now that they are just weeks away.
Forty-four billion dollars in cuts to federal outlays are set to start on March 1, amounting to an eight percent cut in defense spending and six percent in non-entitlement non-defense spending.
"These sudden, harsh, arbitrary cuts would jeopardize our military readiness," President Barack Obama said in his State of the Union speech, and would "devastate" federal spending on education, energy, and research.
Despite such language from Obama, the reductions may not seem as immediate or terrifying to some members of Congress as the rhetoric would make it seem. There was no sense Thursday of Congress needing to get a deal clinched this week. After the House voted Thursday on a procedural motion on a Republican bill to extend a two-year pay freeze for federal employees, it headed off for a week's recess.
President Barack Obama explains his view on what a sequester would do to the U.S. economy while delivering the State of the Union on Tuesday.
"Our work schedule frankly does not match the gravity of the challenge that our country faces," said Rep. Joe Courtney, D-Conn., at a House hearing on the spending cuts Thursday before the subcommittee on Workforce Protection, which is part of the Education and Workforce Committee.
But as Courtney also indicated, there's nothing magical or irrevocable about March 1. "There is still time" to devise an alternative, he told the hearing. Congress and the president could come up with a deal on March 1 "or even on March 2," he said.
The thinking among some in Congress is that the bargaining over the spending cuts -- known as "the sequester" in Capitol Hill lingo -- will be folded into negotiations on the continuing spending resolution that expires on March 27.
For large Defense Department contractors such as General Dynamics, which is building the Virginia-class submarine in Groton, Conn. (in Courtney's district), the Department of Defense funds "are already well into the system," Courtney said. Procurement for submarines plays out over several years and doesn't come to sudden stop.
"Contracting officers (in the Pentagon) who have to deal with these defense vendors -- they are not going to turn the switch off on Day 1," Courtney said.
He added, "It's not going to be done by the Department (of Defense) all at once, in one single day."
He cited Senate testimony this week from Admiral Mark Ferguson, the Vice Chief of Naval Operations, that the two subs slated to be built in 2013 are, in Courtney’s words, "pretty much solid, even if sequestration kicks in."
But the subs slated for 2014 "could be at risk, and that's not a good thing, but it's not going to trigger an immediate reduction of workers on March 1."
He added later he was not trying to minimize the damage that would be done if sequester cuts took effect -- damage such as postponing the deployment of the aircraft carrier U.S.S. Harry Truman to the Mediterranean and the loss of some funds for Head Start programs, including ones in his district.
Layoffs just 'speculative and unforeseeable'
But even as Obama warns about the suddenness of the spending cuts, Assistant Secretary of Labor Jane Oates, in testimony Thursday before the subcommittee on Workforce Protection, re-affirmed what the Obama administration told employers last July: At the moment, despite the threat of spending cuts, firms with federal contracts are not required to send out the 60-day plant-closing and worker-layoff notices to their employees that would be required by the 1988 WARN (Worker Adjustment & Retraining Notification) Act.
Any layoffs that might be caused by the spending cuts -- for example at defense contractors such as Boeing and General Dynamics -- are, for now, "speculative and unforeseeable," in Oates' words. That was the view of the Labor Department last July and she affirmed that it remained her view as of Thursday.
Since there's so much uncertainty about whether the cuts will occur, the firms can't know if some of their workers will need to be laid off. Therefore they need not issue the WARN notices -- until and unless they get specific information from the federal government of contract terminations or program cuts that would result in layoffs.
But employers may be put in a legally awkward and costly bind -- the WARN Act imposes large legal liabilities on employers if they fail to give their employees warning -- but then later order mass layoffs or plant closures.
The Obama administration, in a memo issued last September by the Office of Management and Budget, has told companies with federal contracts that it will reimburse them for litigation costs and other costs if they follow the Labor Department guidance and later get hit with lawsuits from laid-off workers under WARN.
As lawyers prepare for possible litigation over WARN, some House Republicans say they're willing to live with the sequester cuts if there's no other way to cut spending.
Rep. James Lankford, R-Okla., one of GOP's rising stars and the chairman of the House Republican Policy Committee, told reporters Thursday that the sequester "is the law of the land … I would much rather find a way to replace it with a more reasonable long-term perspective of how we deal with our long-term debt issues. But if we don't have anything else, we don't have anything else. It is the law; it's going into effect."
Lankford said he opposed the idea of simply pushing back the effective date of the spending cuts.
'False promise'
Republicans are facing pressure from conservative groups to stick with the spending cuts since they are already embodied in law and not merely theoretical.
The conservative Club for Growth said last week, "The cuts that were promised in the sequester should be done, in whole, this fiscal year and not punted a day past when they are supposed to go into effect."
Any sequester replacement bill should not include tax increases or "another false promise to do more cuts later," the group said.
Some Republicans may be more concerned about the $44 billion in cuts than they are publicly acknowledging, but nonchalance is a better negotiating posture than panicky desperation.
At this point some Republicans appear to be following the advice given by conservative columnist Charles Krauthammer last week.
Obama figured that "draconian defense cuts would drive the GOP to offer concessions," Krauthammer wrote. But this move, he said, "backfired. The Republicans have offered no concessions. Obama's bluff is being called and he's the desperate party."
Krauthammer said, "The Republicans finally have leverage. They should use it."
There might be more awareness and alarm among people back home in congressional districts if certain groups weren't exempt from the spending cuts.
But these groups -- some of them potentially loud and powerful -- are in fact exempt from the spending cuts and would suffer no direct harm. They include uniformed military personnel (their pay is exempt from the cuts), people collecting Social Security benefits, and federal (including military) retirees.
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GOP trades blame with Obama for looming sequester
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This story was originally published on Fri Feb 15, 2013 4:19 AM EST
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Try being a Federal employee who has had their pay frozen for two years and is about to face a 20% pay cut with bills to pay when sequestration happens. It is a BIG deal to us!!!! To put another knife in the back of Federal Employees, the house wants to vote on an extension of our pay freeze for a third year while we are facing the 20% cut when we are forced to work 32 hour work weeks. I know for a fact Federal Employees have been cutting back on their discretionary spending affecting the economy. I know many that are living paycheck to paycheck that are going to be devastated. But, that is no big deal. What a bunch of crap. Yes I am VERY Angry!
Dbn12345. Federal employees are making way to much money for what they do. You should try living within your means, not charging everything on your credit cards, just because you have to have that new TV, new computer,new car,ETC. You do not have to have everything that you think that you have to have. Actually Federal employees should be cut Fifty percent. I know Federal employees who dont go to work, or show up in the morning and just leave whenever they want to. I know federal employees who run a business beside being a Federal Employee, and they are never at there job, most of there day is spent on there own personal business. I do not feel sorry for you, start buying what you can afford, and quit griping. You and Millions of other Federal Employees are the Problem, NOT the solution. Have a nice day.
wascigarman - This Federal employee works plenty hard, for every one of my 29 years in service. Can you carry a couch to the fifth floor - by yourself? I can and I did. There's nothing wrong with my paycheck except it's not keeping up with the cost of living. Thank you, Congress.
You need anger management.
Sunnythunder. You are very lucky that I wasnt your boss when you wrestled that couch up five floors by yourself. I would have fired you, because I would think that you were trying to hurt yourself so that you could collect Medical benefits for the rest of your life. We did not need that couch that bad. If you are carrying couches, that is one job that could be easily elininated and you would be gone. I wonder if you have done anything else in your twenty nine years service.
it breaks my heart that you federal employees are going to have to suffer,like the rest of americans who have given up looking for work after over 5 yrs. These unemployment figures are alot of bull,they don't take into account the people who have just given up or ran out of benefits even though they had an outragous amount of weeks added on.
Your just now getting a cut. My wife and I don't work for Tax Payers got our pay cut years ago. Welcome to the Obama economy.
Cut, cut, cut. The Defense Department Budget should be immediately cut in half. The United States spends more on the DoD than the next 17 countries combined. If we are having trouble paying our Federal Bills, then we need to stop spending money on the military war machine. Since the Congress and Senate cannot agree on "Anything" we need a National Budget Referendum that American Voters decide UP or DOWN on where money is spent. Let voters run the country for a change.
Agreed Terry, cut Defense, raise taxes on everyone, cut social welfare costs and balance the budget today. You do mean shared sacrifice, right? Or do you propose protecting everything that you hold close?
Terry Military is 24% of the budget, Welfare is 12% of the budget, The Liberals would sooner have it 24% Welfare and 12% military why work for a living? It's amazing how welfare is catching up to Military spending.
Update the pie chart has changed, Defense is 14% & Welfare is 10%
Liberals at least the military earn their money
http://www.usgovernmentspending.com/united_states_total_spending_pie_chart
"
Everybody plays by the same rules." President Obama's "American Except-ualism".'Trail of Tears', an American tale.
Obama signed this in to law, so now obey the law like you except us to. But you can bet they will change it to fit their needs & the hell with the voters. Obama & all of congress ( both parties ) couldn't find their asses with both hands. But the smart voters put the same stupid a$$wipes back in office now there was a smart move ( NOT !!! ) SOOO If you voted for the Dumb bastard STOP CRYING & wait for 4 more years. One thing you can bet on with Obama the next 4 will be way worst than the first 4 , not for wall Street but for you . JUST WATCH & SEE !!!
Unfortunately the job losses are happening. The federal civilian workforce for the military has already started giving people the notices. My office is losing 5 out of 16 total people because of this, three of them Iraq war veterans and one of them a Wounded Warrior. Three out of the five are done as of the end of April. It is ridiculous to say that job losses are speculative...they are happening right now. Both parties need to get their heads out of the butts and work together...real people are being affect as we speak because of this. MSNBC needs to do a little bit more fact finding and dig deeper for the truth.
I dont see anything wrong with the sequester except it is not big enough. Our Politicians dont want to do anything about Illegals and the Jobs, and money that Illegals cost the American Taxpayer, so ye reap what ye sow. I blame the American voter for electing and re-electing our Politicians that are only in Politics for themselves. Seriously, I sat down and figured that I could cut a Trillion dollars from the budget and not even Phase any American or there pay. It is easy, but our Politicians do not want to do it. I do not feel sorry for anyone who loses his-hers job,either they voted for an incumbent, or didnt vote, this is the voters fault.
You lay the blame right at the door of Oval Office.
House Minority Leader Nancy Pelosi (D-Calif.) said Thursday that she opposes a cut in congressional pay because it would diminish the dignity of lawmakers' jobs.
"I don't think we should do it; I think we should respect the work we do," Pelosi told reporters in the Capitol. "I think it's necessary for us to have the dignity of the job that we have rewar
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Really?
The reality of the situation is that work is being cancelled in advance and anticipation of the sequester. Contracts are cancelled, work is put off, no one is hiring, people are getting their lay-off notices so that the companies or contractors will have the required 60-day notice. By putting it off and moving the date further out is just excerbating a bad situation. I work for a government agency and we have been notified that we will start receiving our furlough notices shortly. Congress isn't really interested in what this cut will really mean to the people at the grass-rrots level. For them, it is only about a tug-of-war while it means that we can't pay our bills or find a job that will help pay our bills.They think that putting it off will make it better--it doesn't, it just makes the situation worse.
I think that it is great that Government contracts are being cancelled. I mean how many more weapons,Subs, Choppers, ETC can we use? All of the people who are going to be laid off, will have to actually need to look for a job, or try creating there own business, or start at the bottom and work there way up the ladder. I do not feel sorry for anyone who has been on the Government Gravy Train, they need to pick themselves up by the boot straps and carry on without the Great Government check for doing nothing. The United States had better wake up an quit starting unnecessary wars just for profits to a few.
The Era of Uncertainty, 2009-2016; Kicking the Can For Political Gain
And all this is going to get dumped on Obama. It was his idea, and he will be the one to get the blame.
And how much absolute waste have you seen in your organization?
I've personally seen over 250 large flat panel TV's trashed in one particular facility that were less than 2 years old. The reason? They were not "HD". Because of the type of facility they came out of, they were crushed.
I've seen offices which before a remodeling project was even completed, have had new just installed walls torn down. Hell, those walls had only been painted the week before.
I've seen federal facilities put $15,000 doors (yes FIFTEEN THOUSAND DOLLAR DOORS) on offices. And NO those doors were NOT in the White House or even in the Congressional Office buildings.
How many times have YOU seen the end of year buying binge because budget dollars haven't been spent and instead of being returned to the treasury, those dollars are wasted on idiotic junk.... just to make sure it's all spent.
XDM. I know exactly what you are talking about. When I worked, I was in charge of Building New Facilities for many Companies. Toward the end of any given Project, people from the corporations would come to the site and we would have Meetings on spending. EVERYTIME I would bring in a project under budget, these people would tell me to hire more employees, we came in way under budget. These so-called big wheels explained to me that if they did not spend the money budgeted, they would not be budgeted by there Bean Counters for there next Project, so this is nothing new, I havent had a job for twenty three years.
wascigarman I can't tell you how much money I've seen wasted on idiotic frivolous useless projects. Over $100,000 putting in a remote controlled security gate, which once completed, was never used. Building a state of the art $12,000,000 facility to have it abandoned less than 2 years later. Building a $15,000,000 hangar, equipping it with more than a million dollars of specialized tools and equipment, having a $50,000,000+/- aircraft bought and now just sitting there and all personnel except one, let go.
The people have NO idea of the waste in the Federal Government. They think they know, but they truly have NO idea.
The Federal budget could be cut 25-35 percent very easily by eliminating waste. But one persons waste, is another persons pork.
xdm9mm- we had a similar occurence here in maine, our maine state housing(had a friend that worked in the main office) spent their surplusses on pizza parties,spa treatments for employees and alot of other unnecessary things,just to keep that money coming next year. Alot can be done to trim the actual waste of money and provide us with savings,but nobody ever looks in that direction.
Xdm9mm. You are correct, that is why people like you and I and many others would not be welcome in Washington.
If we really want to fix the economy and cut the national debit we should start by impeaching the incompetent fool (Obama) and elect a real president.
Steve Bro. And who would be the REAL President? Lets see what the Republican Party offered up. Warmonger McCain, Palin, Pizza man, Bachman, Perry, which one would be the real President? LOL
Bozo The Clown would be an improvement. Oops, we already have one of those.. Biden.
Congress is not only not in 'panic' mode, they are in 'vacation for a week' mode. What a job ! Get paid ($174,000/year base salary) even if the rest of the country shuts down, vacation when important works needs doing, and not do much of anything even when they are in session.Sounds like a great retirement package.
There is a time to address the debt but it is not during the recovery from a recession. Drastic spending cuts will push us back into recession, jobs will be lost and more people will end up on government assistance. The Republicans will then talk about how Obama wants a welfare state.
I guess you missed the Summer of Recovery.
Dear Editor:
The time has come for New Hampshire residents to admit to the corrupt practices of US Senator Jeanne Shaheen and her husband Bill in Dover, NH, despite the monetary favors that they provide to NH communities. This couple has solicited criminal acts by local Dover police officers against innocent civilians in Strafford County that oppose the agenda of the Democratic Party or have exposed evidence against the Shaheens.
The incidents include serial vigilante style violence or property seizures to intimidate the innocent civilians involved.
New Hampshire was once a state that held integrity and honor as virtuous among its public officials in the state, but this is no longer true.
When a politician threatens innocent civilian life, the NH citizenry must take notice of it and prosecute that threat, even if the situation requires special counsel investigation or impeachment.
We must disclose this stain upon its rich political history so that New Hampshire residents will not tolerate such irresponsible, lawless behavior, in the future.
(The purpose for this posting is that like the Shaheens, many other Congressional or Senatorial families are harming - (sorry to use this harsh word, but it is true) - other Americans that oppose them politically. It's got to stop. Force is not going to cause others to agree or work for you. Their conduct, like many others are why our nation is in the current instability that degrades all American lives.)
This is what you sheeple voted in so live with it. You all want to hear the music but bulk at paying the piper. It's time we start paying for all the bailouts and borrowing and it's going to hurt like hell. I have not seen the Obama administration put forth any plan to curb the out of control government spending. In fact, they keep increasing that spending to limits that we will never be able to pay without raising more and more taxes. Don't you people realise that when they say "increase revenue" they mean "raise taxes"? Who do you think will ultimately pay for those taxes?
Obama promised the sequestor wouldn't happen in the last debate. His word is his bond, right????? This is going to be a long four years ........
OMG the sky is falling! People may be surprised how life will still go on upon sequester. In some ways, the absence of government will be a breath of fresh air. I say bring it on! Besides...it has just been announced congress is taking ANOTHER 10-day recess (I call it an undeserved, self granted vacation AGAIN)...so you cannot tell me this is the end of the world. The spineless wonders lack the balls to commit, put their names on the dotted line for fear of repercussion and come mid-term elections unable to save their slimy political hides. SO, this way it's all automatic...."not my fault", blame-game, duck-dodge-& weave rope-a-dope BS. What are we paying these pathetic excuses for representatives for anyways?
The sequester cuts is Obama's idea so it must be a good idea.
tracy. The sequester is a GREAT idea, it just does not go far enough.
Ray Stevens explains how to live off of the Obama budget plan
https://www.youtube.com/watch?v=J6TcpfBHlbs
Great! Almost too sad to laugh.
Viknat. Thanks for the link. I to sat here and laughed and cried, because Ray Stevens is correct.
This has become so predictable that it is almost ridiculous. If we go over the cliff republicans get the blame if the consedquences are bad {and I don't see at this point how they avoid it} or the credit if nothing happens. If nothing happens no one will care. I have heard some say they brought Clinton into line on spending. What I remember is that Newt and the boys shut down the government and took a terrible beating for it. Maybe they should get out more and stop talking to themselves about solutions. They are like board members that sit in a room and talk each other into doing really stupid things that an outsider could readily point out before they did them.
If General Motors would repay their debt to the American taxpayer it would cover nearly all of this proposed budget cuts.
That won't happen. GM is now owned by the Union and the Federal Government.
Democrats something you should consider to raise everyones property value
https://www.youtube.com/watch?v=201pgTaEseQ
LOL
$110 billion is a trifling amount to cut from the federal spending spree...the $1.2 trillion sequester should have been per year...
I work for a small defense contractor. We have 8 people getting laid off on March 1st, because of this. 4 of them are combat veterans an 2 spouses of active duty military personnel. If I didn't win a new contract, Wednesday night, me and my whole team would be gone too. But we understand that lack of job security in our industry.
If you are being cut then you are not needed. This is not welfare it is the government spending our money.
How about we let the sequester happen and then see what the results are. DC is nothing but scare tactics constantly such as with the fiscal cliff, sequester, etc., etc. Americans need to stop buying into their bully scare tactics and let some things happen. Who knows, it might just work out for the good. AMERICANS STOP BELIEVING IN DC SCARE TACTICS!
Democrats are the biggest liars that have ever existed, and I am not a Republican either. I hated Bush, hated the wars, hated his spending, but I at least have enough sense to have learned the housing disaster was because Democrats forced banks to make ZERO DOWN home loans to UNQUALIFIED buyers and that is what caused this mess. It is not hard to see when you actually look at the TRUTH about what happened. Democrats always play up to the "poor" and "downtrodden" by telling them they are going to take from the "HAVES" to give to the "HAVE NOTS" but then they don't give or take from the Democrats or Movie Stars or the Professional Sports players at all. There are MORE MILLIONAIRE DEMOCRATS than there are MILLIONAIRE REPUBLICANS, but somehow you idiots don't seem to notice that fact.
Obama is president simply because he is black, nothing more. Blacks all voted for him because blacks are 99.99 percent racists bigots, but that never gets stated or else you get called a racist by the racists. I have a black female pastor, blacks in my immediate family, and a lot of black friends, and while the majority of them voted for Obama they now realize they were wrong to have done so.
Get off your butt, go dig a ditch, mow a lawn, or walk someone's dog. Take CASH ONLY PAYMENT for your work and get the stinking government liars and hypocrites OUT of your life and pocket book. Beleive it or not but Government is NOT FOR YOU, Government is for MORE GOVERNMENT, period.
The housing fiasco was actually done by Cheney when they told the banks that they could do risky investments and than tried to make up their losses at homebuyers expense. No that is not Clintons fault, I know where you are trying to go with that. The Government kept control over the banks for a reason. When the removed their restrictions on the banks the banks said they could handle it. They did like a kid let loose in a candy store. Nope , It's all on Cheney he cast the deciding vote. I suggest you research that and see the truth.
Yes there are black Bigots, as well as Chinese, Japonese, Mexican. and French. You still had a lot of these people exercise their of freedom and voted Republican. By the electorial Obama won big time. By voters he only won by 1%. Your point of Race is Moot. Even by working for Cash you still have to report income and pay Taxes. Al Capone found that out the hard way. So I guess that you are promoting being a Criminal as a Career Choice.
@@6dogs. Now you done it, you confused him with true FACTS, and the low informed base of the GOP can't handle the truth, or handle the FACTS.
WRONG MORONS, as usual. It was NOT Cheney that disposed of the Glass-Steagall Act idiots, and was NOT Cheney or Bush or Republicans that THREATENED to WITHHOLD MONEY from Banks for QUALIFIED LOANS unless a certain PERCENTAGE of the funds was ALSO LOANED FOR UNQUALIFIED ONES idiots.
Banks and Wall Street then packaged Bad or High Risk loans in with Good or Low Risk Loans BUT did not inform those purchasing them of ALL THE RISKS INVOLVED. Sure the banks Covered their butts, but they WERE FORCED TO DO SO BY GOVERNMENT IDIOTS like Barney Frank and Christ Dodd.
You idiots can not get the FACTS STRAIGHT about anything and that is why Obama is president...because morons and idiots like you can vote but don't have a CLUE about what the TRUTH IS.
Even BUSH, whom I did not like, stated that Fannie Mae and Freddie Mac were is dire straits but the idiot Barney Frank, dumber Chris Dodd and moron Chuck Schumer said everything was fine and that no OVERSIGHT WAS NEEDED.
As I stated I am not a republican nor democrat, but liberal democrats are the biggest idiots alive.
"And, of course, one of the larger obstacles to minority homeownership is financing, is the ability to have their dream financed. Right now, we have a program that all of you are familiar with, maybe our fellow Americans are, and that’s what they call a Section 8 housing program, that provides billions of dollars in vouchers to help low-income Americans with their rent. It encourages leasing. We think it’s important that we use those vouchers, that federal money to help low-income Americans go from being somebody who leases to somebody who owns; that we use the Section 8 program to not only help with down payment, but to help with continuing monthly mortgage payments after they’re into their new home. It is a – it is a way to help us meet this dream of 5.5 million additional families owning their home.
I’m also going to encourage the lending industry to develop a mortgage market so that this script, these vouchers, can regularly be used as a source of payment to provide more capital to lenders, who can then help more families move from rental housing into houses of their own.
Freddie Mae – Fannie Mae and Freddie Mac – I see the heads who are here; I want to thank you all for coming – (laughter) – have committed to provide more money for lenders. They’ve committed to help meet the shortage of capital available for minority home buyers.
Franklin told me at the meeting where we kicked this office, he said, I promise you we will help, and he has, like many others in this room have done.
Freddie Mac recently began 25 initiatives around the country to dismantle barriers and create greater opportunities for homeownership. One of the programs is designed to help deserving families who have bad credit histories to qualify for homeownership loans."
Dubya 2003
Sally Ann. Either you cannot remember, or do not listen very well. Dont you remember that the Republicans have there own Facts.
6 Dogs blames Cheney for telling banks what to do? The absolute stupidest comment of the day showing the total lack of knowledge that one must have in order to be a Progressive.
If it was Cheneys fault why didn't the democrat house and senate stop him.
msnbc - harsh but true...
It was not the fault of Cheney or Clinton or Bush. It was a scam perpetrated by investment banks, insurance companies and hedge funds. 80% of the subprime loans were made by banks that had no connection to the government. The made the loans and packaged them as AAA securities and sold them. They then bought insurance (CDS) against them knowing they would fail.
cts -
Wrong!
The CRA was started under Jimmy Carter. Clinton strengthened it as a part of Graham-Leach-Bliley - which superseded Glass-Steagal. Obama was part of a law firm at the time and is one of the lawyers on record for the lawsuit against Citibank because they wanted loans for people who would not be able to pay those loans back.
These are the things that led to the housing melt-down.
Granted the banks found ways to make the sutuation work for them - to the detriment of the economy - but they did not break any laws.
"With job losses 'speculative' only, Capitol Hill not panicking over sequester cuts"
Thats because government always grows, it never shrinks even when the need is not there. Government is like a big blob it consumes everything in its path and provides no useful function.
It is only Speculative because it won't be an effect on jobs.