Grumpy Editor

General Electric tops stock list with members of Congress

Among investments in publicly-held companies by members of Congress, General Electric Co., the multi-national conglomerate ranked as the nation’s sixth largest firm by Fortune magazine, is the favorite, notes Grumpy Editor.

Seventy five lawmakers held GE stock --- worth at least $3.6 million --- last year, according to Washington, D.C.-based Center for Responsive Politics, which compiled the information based on 2010 financial disclosures. 

Just yesterday, The Weekly Standard reported GE “filed a whopping 57,000-page federal tax return earlier this year but didn't pay taxes on $14 billion in profits.”  The publication pointed out the electronically-filed return “would have been 19 feet high if printed out and stacked.”

Nine billion dollars of GE's profits came from overseas, outside the jurisdiction of U.S. tax law. The company wasn't taxed on $5 billion in U.S. profits because it utilized numerous deductions and tax credits, including tax breaks for investments in low-income housing, green energy, research and development, as well as depreciation of property.

Meanwhile, with President Barack Obama in Indonesia yesterday, the White House announced that GE is signing a contract to sell 50 of its CFM56 engines to the airline Garuda Indonesia for $1.3 billion.

But that was enough to lift GE’s stock --- heading downward in the past week --- which fell lower yesterday, along with the market, to close at $15.64 off 31 cents on the day.

Other popular investments by members of Congress last year, as tallied by Center for Responsive Politics:

Procter & Gamble Co. ranked No. 2, behind GE, with stock worth at least $8.7 million held by 62 lawmakers.

Bank of America Corp. was third with 57 investors holding at least $2.8 million worth.

Tied for fourth place were Microsoft Corp. and Cisco Systems Inc. stocks each held by 56 members of Congress.  Microsoft holdings were worth at least $3.2 million.  Cisco stock was figured to be at least $1.3 million.

Pfizer Inc. was popular with 51 members holding at least $2 million worth.

Stock investments by some members of Congress came under a cloud this week after a Nov. 13 "60 Minutes" report on CBS.

A segment pointed out it is legal for elected officials in Washington to conduct insider trading --- buying and selling stocks based on privileged information received before it goes public.

 

Where are the rich? They gather in Washington, D.C.

So where is the best place to rub elbows with millionaires? 

Forget Beverly Hills.  Skip the Hamptons on Long Island.  Best bet for the biggest congregation of the truly rich is at the U.S. Capitol Building in Washington, D.C., finds Grumpy Editor. 

That’s where 250 members, or almost half, of Congress are millionaires. 

USA Today and ABC News are among the few major print or broadcast outlets that ran detailed material, released Tuesday, based on 2010 financial disclosures analyzed by Washington, D.C.-based Center for Responsive Politics. 

The nonpartisan, nonprofit research organization adds that 58 members of Congress, or about 11 percent, have a net worth of more than $9 million.  That puts them in an even more elite group:  the top one percent of wealth. 

Net worth may be even higher.  That’s because lawmakers’ disclosure forms do not include primary residences (which could add millions more) or other personal property --- which could be anything from gold bars to diamonds. 

With members’ assets and liabilities disclosed only in broad ranges, the tallies of estimated net worth are figured in the middle of the ranges. 

The top five richest people in Congress, based on Center for Responsive Politics’ findings: 

Rep. Darrell Issa (R., Calif.), with an estimated net worth of $448.1 million. 

Rep. Michael McCaul (R., Texas), $380.4 million. 

Sen. John Kerry (D., Mass.), $231.7 million. 

Sen. Mark Warner (D., Va.), $192.7 million. 

Sen. Herb Kohl (D., Wis.), $173.5 million.

 

NOTE:  Continuing with the focus on the rich, tomorrow’s Grumpy Editor covers which publicly-held companies are top investments  with members of Congress.

 

Connecticut today observes Diaper Need Awareness Day

Adding to the list of the year’s special days --- ranging from Administrative Professionals Day to Armed Forces Day --- is today’s Diaper Need Awareness Day, but observed only in Connecticut, notes Grumpy Editor.

Gov. Dannel P. Malloy, obviously one who seeks to get to the bottom of things, issued the declaration.

So, today at 5 p.m. Eastern, activists and advocates will gather at Foundry Square in New Haven for a panel discussion, open to the public, on diapers as a public health issue --- and a fundraiser follows.

Diapers are a big deal in the Constitution State.

So look for heavy media coverage.

Hartford Courant writer Susan Campbell mentions that earlier this month, Rep. Rosa L. DeLauro (D., Conn.) introduced the Diaper Investment and Aid to Promote Economic Recovery Act (cleverly contracted to spell out DIAPER).

The bill would amend the Child Care and Development Block Grant Act of 1990 to allow funding for diapers and diaper supplies.

For today's event, looks like someone overlooked booking a spokesperson from Pampers, a Procter & Gamble Co. operation with products that include disposable diapers, as a key speaker.

 

Air Force One flies in West as federal funds near empty

With the spotlight on cutting costs a central issue in Washington, Grumpy Editor wonders how many newspaper editorial page writers this week will focus on the continued extraordinary use of Air Force One for travel to distant fund raisers and political rallies --- as funds to run the federal government neared empty.

A government shutdown was averted last night via a Senate compromise that, with House ratification next week, will provide federal funding until Nov. 18.

During the Washington cliffhanger, President Barack Obama was making West Coast rounds with an itinerary that took him to Seattle on Sunday, and yesterday to San Francisco area cities, then onward to La Jolla and the Los Angeles area.

His western travel concludes today in Denver with a speech to supporters.

All this while a dispute over spending pointed to a possible government shutdown this weekend and the Federal Emergency Management Agency (FEMA) running out of disaster relief funds. 

Congress also must pass a bill to fund government for the fiscal year that starts on Saturday.

A newsman’s tally of Obama’s use of Air Force One last year shows the president flew a lofty 172 times on the jumbo Boeing 747. 

Air Force-estimated per-flight-hour using a 747 costs taxpayers $181,757. 

In addition, there are helicopter trips and multiple-car use with an entourage on the ground.

 

Vacation for Congress looms as debt talks deadline nears

Looks like it will be a photo finish in debt talks as Republicans and Democrats aim for a deal on borrowing authority as next Tuesday’s deadline nears when the U.S. government faces bill-paying problems --- but Washington lawmakers also have fishing rods, airline tickets and cruises in mind because a month-long recess starts Aug. 6, reminds Grumpy Editor. 

That should provide incentive to break the long-running gridlock. 

Observers believe Washington lawmakers will find a way to reach an agreement that allows the government to keep paying its debts.

Figuring a bipartisan agreement on debt limit-spending clears Congress and gets to President Barack Obama's desk by Aug. 2, both House and Senate members are scheduled to be on vacation until past Labor Day, returning on Sept. 7.

That’s like leaving the “crime” scene in a hurry and getting out of town.

That will leave Washington rather quiet during August while the White House press corps takes a break themselves or looks for other topics to focus on including happenings with Republican presidential candidates, the always unusual weather in the nation's capital or an update on the summer crop output from the nearby much-publicized-earlier White House vegetable garden.

 

Where are the jobs? 'Tight' bankers curb hiring by firms

With unemployment figures rising to 9.2 percent in June and cries for creating jobs, one of the overlooked --- especially by media --- “villains” in the picture are banks which continue to be stingy on making loans for expansions of businesses, notes Grumpy Editor.

More than 14.1 million workers are currently unemployed. The number of long-term unemployed, those jobless for 27 weeks or more, remains steady at 6.3 million. 

Many small businesses, especially, are handcuffed in hiring additional workers, expanding or making capital expenditures because of tight credit. 

This includes businesses with solid bottom lines and long relationships with financial institutions that remain frugal when it comes to loans. 

However, major banks welcome deposits, but at puny interest rates. 

Citibank, Bank of America, Wells Fargo and other major banks pay a minuscule 0.30 annual percentage yield (APY) or less on one-year certificates of deposit (CDs). 

Despite sluggish loan growth in its latest quarter, J.P. Morgan Chase, for example, posts a strong increase in profit while loans fall 4 percent from a year prior. 

Many financial institutions are thriving on fees and other charges. 

Some businesses need bank funds to cope with inflationary pressures, even though federal announcements claim inflation remains “tame,” a word echoed in media reports. 

Meanwhile, bankers with low loan output point to regulators urging lenders to demand proof that loans will be repaid.  In addition, loan officers claim there is less money to lend because regulators are requiring banks to hold more capital in case loans default. 

Bottom line:  Correcting the current tight money problem for businesses still points to Washington legislators and the White House which can remedy the situation in efforts to boost the economy and create jobs to get America back on track.

 

Chris Wallace shelves ‘flake’ after Bachmann interview

Since it has kicked up a lot of dust this week, looks like Chris Wallace, Fox News Sunday host, will be refraining from mentioning “flake” on air for a while after uttering that slang word in interviewing Republican presidential candidate Michele Bachmann, figures Grumpy Editor.

In the interview, Wallace, in grilling Bachmann (R., Minn.), asked point blank:  “Are you a flake?” 

Now, Wallace, with access to a dictionary, knows that the slang word means eccentric, geek, oddball, crazy or unreliable person. 

That’s not exactly a term one would use to describe a three-term congresswoman --- with an eye on the White House --- who has been married for 33 years, raised five kids along with 23 foster children and holder of a post-doctorate degree in federal tax law. 

A poll this week showed Bachmann was running neck and neck in the GOP presidential candidate race with businessman and former Massachusetts governor Mitt Romney. 

Wallace later posted an apology online.

In rejecting the apology, Bachmann in a later ABC-TV interview said, "I think that would be insulting to say something like that because I'm a serious person." 

 

U.S. House appears busy working on debt limit, but…

From reading newspapers this week, one may think Congress was working feverishly --- with a deadline 11 weeks away --- to resolve the debt limit that has passed the $14.3 trillion mark, figures Grumpy Editor.

From an Associated Press story by Paul Wiseman with a Washington dateline that appeared around the country yesterday, readers were informed that: 

*  Treasury Secretary Timothy Geithner sent Congress a letter saying he would be unable to make pension investments in full and urged a hike in the debt limit or “risk a financial panic or another recession.” 

*  “Republican leaders in the House have said they won’t raise the debt limit unless the Obama administration first agrees to big spending cuts or to steps to lower the debt over the long run.” 

*  “House Speaker John Boehner repeated the pledge in a statement Monday…” 

Sounds like the House was busy at work in Washington in efforts to solve the nation’s budget problems by Aug. 2. 

However, it’s another “constituent work week” --- the official phrase for getting out of town --- that takes representatives away from their D.C. desks. 

But they’ll be back next week. 

Then they will be off for Memorial Day, May 30, before taking another scheduled constituent work period June 4 to 12, followed by another, June 25 to July 5 that includes Independence Day.

 

As D.C. work piles up, Boehner, Reid lead trips overseas

While negative developments --- ranging from heavy storm damage in the South to Standard & Poor’s cutting the U.S. debt rating to negative from stable --- swarms around Washington, D.C., looking for comments from congressional leaders will be difficult to find for a couple of weeks, notes Grumpy Editor.

That’s because the House and the Senate are off on another vacation, due back on May 2.

The House labels the time off as “constituent work week.”  The Senate calls it “state work period.”  Last break for both House and Senate was from March 19 to 27.

And, as usual, some members are quietly off on “fact-finding” tours, now known as “informational trips.”

House Speaker John Boehner (R., Ohio) leads a group visiting Iraq, while Senate Majority Leader Harry Reid heads a China tour.

Newspaper readers and television viewers seldom see coverage of Capitol Hill politicians boarding aircraft headed for distant destinations.

Boehner is leading a House group that includes Mac Thornberry (R., Texas), Mike Conaway (R., Texas), Joe Heck (R., Nev.), Tom Rooney (R., Fla.) and Dan Boren (D., Okla.).

With Reid are Barbara Boxer (D., Calif.), Chuck Schumer (D., N.Y.), Dick Durbin (D., Ill.), Michael Bennet, (D., Colo.), Frank Lautenberg (D., N.J.), Jeff Merkley (D., Ore.) and Mike Enzi (R., Wyo.), Richard Shelby (R., Ala.) and Johnny Isakson (R., Ga.).

 

One-time Social Security payment idea just a memory

News that indications point to 45 million Social Security recipients will get a small cost of living adjustment, or COLA, for 2012 (see Grumpy Editor, March 28) but that sum will be erased for most by a hike in monthly Medicare Part B premiums, has brought this question:

Whatever became of the much-trumpeted, one-time $250 payment suggested just before last November’s elections?

The measure, designed to ease a financial squeeze affecting many Social Security recipients, was to make up for another year without a COLA.

Last COLA was in 2009.

Then-House Speaker Nancy Pelosi (D., Calif.) and then-Ways and Means Chairman Sander Levin (D., Mich.)  both pushed the Seniors Protection Act of 2010 (H.R. 5987) during pre-election days last fall, recounts Grumpy Editor.

But just before Christmas --- on Dec. 8 --- the bill failed by a 254 to 153 vote in the House.

Because of the looming holidays and the increasing focus on seasonal news, the House action was squeezed out of heavy print and broadcast coverage.

Lawmakers’ nixing of the $250 economic stimulus payments was justified on the basis of “low inflation.”

Then, and now, that’s something questioned by many struggling seniors dependent on monthly Social Security funds to pay for steadily higher price tags on food, shelter, medical and other necessary items.