By Greg Hunter’s USAWatchdog.com
A key provision in Obama Care has been postponed. Didn’t I tell you even the strongest Obama supporters are worried about the damage this will cause in the economy? The Obama Administration abruptly postponed the “employer mandate” portion of the health care rollout. Employers were already cutting hours to 29 from 40 because they didn’t want to be forced to give health care to full time employees. Individuals are still going to be forced to buy health care insurance or get fined. Obama Care is still going to be a disaster to the economy; they’re just trying to lessen it until after the 2014 mid-term election. The Obama Administration is just putting off what even some prominent Democrats have called a “train wreck” so they will get hurt less in the upcoming election. My prediction–this is not going to save them.
The military coup in Egypt that ousted President Mohamed Morsi is just another sign of Middle East instability. The Army moved in and moved out Morsi amid massive protests to his year old presidency. The Muslim Brotherhood is now out of power and, at least for the near term, that is good news. Egypt’s economy is caught in a downward spiral that Morsi presided over. Tourism is off 30% or more because of Morsi’s hard line Islamist rule and massive ongoing protests. Just that has caused this economically hard hit country to take a least a $3 billion hit. Many of the original protesters say the Muslim Brotherhood hijacked the movement and traded one tyrant for another. The Army says it will have elections but no timetable was set.
The latest casualty in the Edward Snowden NSA leak scandal is relations between the U.S. and EU counterparts. Snowden revealed the NSA not only spied on just about every American but on our EU allies as well. They are mad as hell. European officials want to bring this up as they negotiate on a massive trade deal. It’s called the Transatlantic Trade and Investment Partnership. Snowden is supposed to leak more embarrassing stories in the future. By the way, Russian spy Anna Chapman tweeted a marriage proposal to Snowden recently. Remember her? She was the hot redhead caught spying for Russia. The U.S. deported her and several others about three years ago.
Finally, Citigroup has joined a growing list of big banks to settle with the government for misrepresenting the quality of mortgages it sold to Fannie Mae. Citi is paying $968 million to settle claims on 3.7 million home loans. Let’s see, that’s about $260 for each loan. That sounds pretty cheap to me. Basically, we’re talking about mortgaged-backed securities that Citi said it sold as top quality but instead had high default rates. They could have been forced to buy them back because they were not as good as they said they were. These loans were commonly called “toxic.” Many of the loans in the securities contained what are called “liar loans.” Why do the taxpayers have to absorb this junk while another Too-Big-Too-Fail Bank gets a slap on the wrist? Why are there not fraud charges brought? Why isn’t Citi forced to buy this junk back? Oh, that’s right, that’s what Too-Big-Too-Fail means. You think Citi would survive if it had to take back 3.7 million loans? If each loan was just $100,000, that would mean Citi would have to take back $370 billion in “toxic” debt. Don’t you love how the mainstream media soft pedals this kind of massive rip-off to the taxpayer?
Join Greg Hunter as he gives his analysis on these stories and more in the Weekly News Wrap-Up.