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Archive for the ‘Stimulus’ Category

If they keep this up they may actually regain their reputation as a news agency.

An Associated Press review of the latest stimulus reports—which the White House promised would undergo extensive reviewsmagnifying-glass to ensure accuracy—found that more than two-thirds of 14,506 jobs credited to the recovery act under spending by just one federal office were overstated because they counted pay increases for existing workers as jobs saved. 

Most of the inflated figures were like those cited in the 935 saved jobs reported by the Southwest Georgia Community Action in Moultrie, Ga. The agency, like hundreds of others collecting Head Start money, claimed all its existing employees’ jobs were saved because they received a pay raise with the stimulus cash.

Similar claims led to overstating by more than 9,300 the number of jobs saved with more than $323 million in stimulus money distributed by the Health and Human Services’ Administration for Children and Families, the AP’s review found.

It gets better…

The raises themselves were appropriate since the stimulus law set aside money for Head Start salary increases, but converting that number into jobs saved proved difficult. The Obama administration told Head Start officials to consider a fraction of each employee as a job saved.

Many Head Start programs around the country went further, counting everyone who received a raise as a saved job.

At Southwest Georgia Community Action Council, director Myrtis Mulkey-Ndawula said she followed the guidelines the Obama administration provided. She said she multiplied the 508 employees by 1.84—the percentage pay raise they received—and came up with 935 jobs saved.

“I would say it’s confusing at best,” she said. “But we followed the instructions we were given.”

Ed DeSeve, who oversees the stimulus at the White House, said the Head Start numbers “represent a few percent of all jobs reported” and said the problems would probably be balanced out by other errors that underreported jobs. –None of them have, yet.

“We don’t expect any corrections to this data to meaningfully impact the total 640,000 direct jobs,” DeSeve said.

Of course not, why let those pesky facts get in the way of the agenda?

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Bask in the glow, citizens. Bask in the glow.

An IRS audit of the First-Time Homebuyer Tax Credit found widespread mistakes and outright fraud including:

– The First-Time Homebuyer Credit IRS form did not verify eligibility and no documentation was required to substantiate home purchase;

– $139 million in credits were awarded to people for more than 19,000 homes that were still on the market;obamas_stimulus_trap

– Checks given to 582 taxpayers under 18 who claimed $4 million in first-time homebuyer credits. The youngest buyers were 4 years old;

– Through July 25, the audit identified 3,238 people claiming $21 million in First-Time Homebuyer Credits on returns filed with special tax identification numbers used mostly by resident aliens, who are not eligible for the benefit;

– Nearly 74,000 First-Time Homebuyer Credits totaling almost $504 million were claimed by taxpayers who had indications of prior home ownership within three years;

– The IRS has not decided whether to examine 70,005 questionable claims worth $479 million that were handed checks prior to the initiation of special pre-refund examination filters.

Hey, it’s only money, right?

Hold onto your wallets, I’m just getting started here.

(more…)

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A bank that recieved more than $2 billion in bailout assistance last year is officially filing bankruptcy to absolve itself of more than $10 billion worth of debt. Government officials, who proffered the bailout funds a year ago on the insistence that the bank could not be allowed to fail, are now apparently okay with it failing and have conceded the American taxpayers will not recoup the lost money.

mugBloomberg reported on the plight of one CIT Group Inc. that filed in bankruptcy court last week. The firm owes money to approximately one bazillion creditors and attempted to pull off a debt exchange in bankruptcy court, but the creditors, led by Bank of America, are favoring the traditional process.

Here is why this story matters: first, it exposes the stupidity of the bailout, but more importantly, it’s one more dent in Bank of America’s pocket. The more of these smaller banks that continue to fold, the more BOA sees another debtor go “poof.”

BOA cannot afford to absorb many more of them. And if BOA goes bankrupt, get ready for the end of the world.

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Let the peasants rejoice..

WASHINGTON (AP) – More than 650,000 jobs have been saved or created under President Barack Obama’s economic stimulus plan, the White House said Friday, saying it is on track to reach the president’s goal of 3.5 million jobs by the end of next year.

New job numbers from businesses, contractors, state and local governments, nonprofit groups and universities were not scheduled to be released publicly until Friday afternoon. But White House economic adviser Jared Bernstein says officials have been told the figures. When adding in jobs linked to $288 billion in tax cuts, Bernstein says the stimulus plan has created or saved more than 1 million jobs.

As was reported yesterday, the initial release of job numbers two weeks ago was off by almost 20%. (in the small sample of data reviewed)

The government’s first accounting of jobs tied to the $787 billion stimulus program claimed more than 30,000 positions paid for with recovery money. But that figure is overstated by least 5,000 jobs, according to an Associated Press review of a sample of stimulus contracts.The AP review found some counts were more than 10 times as high as the actual number of jobs; some jobs credited to the stimulus program were counted two and sometimes more than four times; and other jobs were credited to stimulus spending when none were produced.

It will be interesting to see if the White House fact-checks the data they will be putting up this afternoon on their official propaganda site, ‘recovery.org’. Now that they know people are checking up on their numbers they may put more effort into making it credible.

Stay tuned….

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There’s something I never thought I’d type. The White House released an early progress report on Obama’s “recovery” plan a couple of weeks ago, and the AP conducted a partial review that caught thousands of “errors”.

The government’s first accounting of jobs tied to the $787 billion stimulus program claimed more than 30,000 positions paid for with recovery money. But that figure is overstated by least 5,000 jobs, according to an Associated Press review of a sample of stimulus contracts.

A sample. They reviewed only a sample, and found enough misleading data to reduce the White House’s claim by almost 20%.

The AP review found some counts were more than 10 times as high as the actual number of jobs; some jobs credited to the stimulus program were counted two and sometimes more than four times; and other jobs were credited to stimulus spending when none were produced. –My my, that is some creative accounting. They must be outsourcing their books to Bernie Madoff.

The AP returns to its roots immediately though, saying that there was no evidence that White House personnel sought to inflate job numbers and that they failed to catch the errors in company reports because they only reviewed the data for…three days. And the dog ate their homework. Okay, I added that part to make it sound more credible.

The reporting problem could be magnified Friday when a much larger round of reports is expected to show hundreds of thousands of jobs repairing public housing, building schools, repaving highways and keeping teachers on local payrolls.

The White House says it is aware there are problems. (Translation: people are fact-checking them) In an interview, Ed DeSeve, an Obama adviser helping to oversee the stimulus program, said agencies have been working with businesses that received the money to correct mistakes. Other errors discovered by the public also will be corrected, he said. “If there’s an error that was made, let’s get it fixed,” DeSeve said. –*ahem*…….

As of early Thursday, on its recovery.org Web site, the government was still citing 30,383 as the actual number of jobs linked so far to stimulus spending, despite the mistakes the White House has now acknowledged and said were being corrected.

Bad Bo, bad dog!

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aka, “Your Government At Work“. A follow-up to the first compilation of crimes committed to get our tax money.

Stimulus Contracts Go to Companies Under Criminal Investigation

The Department of Defense awarded nearly $30 million in stimulus contracts to six companies while they were under federal criminal investigation on suspicion of defrauding the government. –They just keep finding ways to foul up the “stimulus”. The thing is, they are actually fulfilling it’s true purpose, which is a payout to special interests and government cronies. For more details, see my post on all the criminal activity surrounding the ‘stimulus’.

According to Air Force documents, the companies claimed to be small, minority-owned businesses, which allowed them to gain special preference in bidding for government contracts. But investigators found that they were all part of a larger minority-owned enterprise in Southern California, making them ineligible for the contracts.If the people giving away our money happen to notice…

According to the Air Force, the companies were controlled by Craig Jackson, an African-American businessman whose firm, Sanders Engineering, has won awards from the Small Business Administration.

–This man owns almost two dozens companies that he hands out to members of his family while actually remaining in control of all of them. He did this in order to bilk the government of our money through the SBA 8(a) program. He’s gotten away with over $700 million of government contracts which he wasn’t legally eligible for.

(more…)

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We will be putting together a package of material – a package of legislation – that will substantially diminish that problem.  First of all, and this is again something that goes back to Secretary Paulson in April of 08 – we will be providing a mechanism for putting nonbank financial instutions out of everybody’s misery. There will be death panels enacted by this Congress, but they will be for nonbank financial institutions that will not be considered too big to die.

Notice the look of amusement on Sec. Geithner’s face.

Is this as funny to you as it is to them?

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