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Leslie Paige

Housing, Taxes

Big Time ARM Wrestling

December 1, 2007 Leslie Paige

The country continues to experience uncertainty and volatility in the financial markets as a result of the crisis in the mortgage industry.  Financial services companies have been hit hard.  For example, Merrill Lynch announced an $8.4 billion writedown in October, and Citigroup received a $7.5 billion infusion of cash from investors in Abu Dhabi, United Arab Emirates.

For its part, Congress has been trying to help homeowners who face foreclosure or need help refinancing homes they can no longer afford.  Developments in the mortgage market are fluid and the industry began taking corrective action to mitigate problems for some subprime borrowers.  One housing advocate told The Wall Street Journal that some loan-service providers are “already freezing rates for five to seven years.” 

General Waste, Housing

Lawmakers Choose Pork Over Bridge Safety

September 1, 2007 Leslie Paige

The I-35 Bridge collapse in Minneapolis, Minnesota, which resulted in the deaths of 13 people, dominated several news cycles and gave politicians the kind of somber photo ops they can rarely resist.  Some, including House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-Minn.), called for an increase in the federal gas tax to pay for the long-standing unmet need for bridge repair.  Congress went back to business as usual, earmarking billions of tax dollars for frivolous projects in the Senate Transportation, Housing and Urban Development Appropriations bill.

General Waste, Technology, Telecommunications

Tidbits

June 1, 2007 Leslie Paige

Congressman Kanjorski (D-Pa.) joins a mushrooming list of members of Congress whose earmarking habits are getting a lot of media attention.  Over an eight-year period, Rep. Kanjorski steered $10 million in earmarked federal funding (from the Energy and Defense Departments, as well as the Economic Development Administration) to Cornerstone Technologies, LLC, which employed his four nephews and his daughter as either owners or board members.  The ostensible purpose of the grants was to do research on using high-pressure jets of water to pulverize anthracite into microscopic particles for subsequent use in vehicle parts.  Cornerstone has now declared bankruptcy, but while contracts were flowing, the company was paying hefty salaries to at least two of Kanjorski’s nephews.  Not only was Cornerstone funded with federal contracts, one of its affiliates, Pennsylvania Micronics, run by other Kanjorski relatives, also benefited from subcontracts.  A former head of Penn State’s Energy Institute is quoted in a June 3, 2007 Scranton Times-Tribune as saying “it was like the four stooges meet anthracite.”  Which reminded us of that famous Stooges exchange between Curly and Moe in the classic film “Dizzy Pilots:”  “Vice? I have no vice. I’m pure as the driven snow,” says Curly. “Yeah, but ya drifted!” says Moe…slap! 

General Waste, National Security

USPS Chief Living Large

September 1, 2006 Leslie Paige

The United States Postal Service (USPS) is fond of describing itself as a business, on par with some Fortune 100 companies.  However, a recent investigation by the USPS Office of Inspector General (OIG) into allegations of misconduct of one of its chief spokespersons, Vice-President for Public Affairs and Communications (PAC) Azeezaly Jaffer, graphically reveals just how far removed postal business operations are from those of any well-run, private sector corporation.

General Waste, Taxes

A Little Rain, A Lot of Waste in Florida

September 1, 2006 Leslie Paige

How can a tempest that failed to arrive cost taxpayers $17 million?  That is the estimated price of the impact of Hurricane Ernesto on South Florida.  If you thought, as I had, that Ernesto struck the United States farther north and hardly affected the Sunshine State, you would be correct.  $17 million is the amount some counties in southern Florida are claiming they are entitled to, in order to recoup their preparation costs.

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