Photo: FLLewis/A Writer’s Groove — Burbank

I have some mixed feelings on this Labor Day. Nationally, unemployment is at a 26-year high of 9.7%.  In California, the jobless rate has soared to 11.9%. There is evidence the recession-battered economy is making a slow recovery, an encouraging sign.

Still with so many people out of work it’s hard to cheer the upturn in the economy. I may not be cheering, but I’m hopeful. And that is as good as it gets for me on Labor Day 2009.   

Photo: FLLewis/A Writer’s Groove — Burbank

A sure sign of summer, rising gas prices. Wait a minute. Prices at the pumps have been climbing for a while. In fact, a gas spike has been underway for the past seven weeks with “no end in sight”, according to the Automobile Club of Southern California’s Weekend Gas Watch dated June 18, 2009.

Locally, the price of gasoline is hovering around $3 a gallon. Last night, I gassed up at a station in Burbank and paid $2.99 a gallon for self-serve regular. I was ticked off and bummed by the high price. The stats on the AAA website indicates drivers all over Southern California are feeling the same gas pains. The average price of regular is $3 a gallon from San Diego to Orange County to Los Angeles to Santa Barbara to Bakersfield. By the way, this time last year the average price was around $4.50 a gallon in the Southland.

It’s a good bet, that with the 4th of July holiday around the corner gas prices will continue to go up. Experts say the economy is in the process of recovering from the recession. The federal government has shored up the banks and the auto industry with billions of taxpayer dollars. Now would be a good time to help the rest of us by pressuring the oil industry to put the brakes on gas prices.

Photo: FLLewis/A Writer’s Groove — Burbank

The economy is still struggling. Job layoffs by the thousands continue. Gasoline prices at the pumps are up. On Thursday, May 21, I paid $2.60 a gallon at a gas station in Burbank. A month ago at the same station, I paid $2.30 a gallon.  And food prices are still outrageously high; why is that the case?

On the plus side, President Obama signed sweeping credit card reform into law yesterday. You can still catch a flick for around 10 bucks or so.  Some big movies playing this weekend include “Star Trek,” “Angels & Demons,” and the new arrivals “Night at the Museum: Battle of the Simthsonian,” and “Terminator Salvation.” This holiday weekend is still a great time to connect with the people we care about, hang out at our favorite joints, parks, and shopping places, or just do nothing but kick back and relax.

At the top of my to-do list this weekend, being grateful for the choices we have in this country. First, I’ll give thanks to a higher power. Then for the next few days, I’ll join my neighbors and people across our nation and fly the stars and stripes to say thanks to our military, especially to those who have died in that service, for protecting our values and freedoms.  

Photo: Kevin Lamarque/Reuters

President Obama is making good on a campaign promise to overhaul the tax system. Today the president took aim at some loopholes in the tax code and the wealthy individuals and corporations that use them to avoid paying their fair share of taxes.

At the White House, the president announced steps to crack down on overseas tax havens and to create more incentives for U.S. companies to keep jobs here at home: “It’s a down payment on the larger tax reform we need to make our tax system simpler and fairer and more efficient for individuals and corporations.”

Combined with other international tax reforms, the administration estimates a savings of $210 million over the next decade. However, getting these proposals through congress is going to be a tough battle with special interests and big business lobbying against the changes. 

Photo: Pete Souza/White House

President Barack Obama spent part of Earth Day in Newton, Iowa touring a wind tower production facility. In his Earth Day speech, the president described a major challenge facing our nation: “Now, the choice we face is not between saving our environment and saving our economy.  The choice we face is between prosperity and decline.  We can remain the world’s leading importer of oil, or we can become the world’s leading exporter of clean energy.  We can allow climate change to wreak unnatural havoc across the landscape, or we can create jobs working to prevent its worst effects.  We can hand over the jobs of the 21st century to our competitors, or we can confront what countries in Europe and Asia have already recognized as both a challenge and an opportunity:  The nation that leads the world in creating new energy sources will be the nation that leads the 21st-century global economy. America can be that nation.  America must be that nation.”

More on the president’s Earth Day speech and visit to Iowa yesterday at The White House Blog.

Photo: FLLewis/A Writer’s Groove

More bad economic news. Today General Growth Properties, the second largest mall owner in the country, declared bankruptcy. It’s considered the largest real estate failure in U.S. history. General Growth Properties and 158 of its U.S. malls filed for protection under chapter 11.

The Burbank Town Center is listed on GGP’s website as one of the properties it manages, but it is not involved in the bankruptcy filings. However, the Burbank Town Center at East Magnolia Boulevard and North First Street is a mall that is struggling to survive. Last fall, one of its anchor stores, Mervyn’s, closed when the chain went out of business; followed a few months later by the Circuit City store. 

For years, the mall has had difficulty wooing the kind of retail shops and chain stores that attract local residents and the thousands of people who come into the city for work and entertainment. The Burbank Town Center has had other troubles as well. Last August, I posted a two-part story ( Security Problems at The Burbank Town Center Mall, Part Two: Is The Burbank Town Center Mall Safe? ) about charges of poor security, intimidation, and retaliation from some of the mall merchants.

Meanwhile, GGP is trying to put a positive spin on its bankruptcy. In a statement on the company website and on the Burbank Town Center site the real estate giant says: “GGP has sought bankruptcy court assistance to restructure our finances and de-leverage our balance sheet because the collapse of the credit markets has made it impossible for GGP to refinance our maturing debt outside of chapter 11. GGP’s retail centers, office properties and master planned communities will be open for business as usual as the company restructures our debt. Our properties will continue to operate, our employees will continue to come to work and get paid, and shoppers will continue to shop. ”

Also, on the GGP list of retail properties not involved in the bankruptcy, nearby Glendale Galleria.

The recession is prompting a lot of folks to search for bargain escapes, and romance novels are at the top of the list. The struggles and disappointments of day-to-day living are apparently fueling the desire for entertainment with a happy ending, according to an article on the New York Times website.  

While many categories of books are in a slump, romance novels are in demand. At Barnes & Noble, the nation’s largest bookseller, the sales of romance novels are up. Over on the Barnes & Noble website the high priestess of romance novels, Nora Roberts, is holding down the two top slots in the top 10 on the best selling romance list.

At number one, the first book in a new wedding quartet series, “Vision in White.” It’s not available until April 28, but no matter, it’s getting a ton of pre-orders. Number two, Robert’s “Where The Heart Is: From This Day/Mother’s Keeper”; a reissue of two of her classic romances in one volume. The best selling author reportedly has more than 300 million books in print. Also, a number of Roberts’ romances are now racking up big ratings as made-for-TV movies on Lifetime.

These days romance novels range from contemporary to inspirational to historical to fantasy to steamy, sexy, and sometimes erotic tales. Romance novels have always had a large loyal following, but now with the economy in the dumps, even more people are on the hunt for a book with a little romance.

FLLewis/A Writer’s Groove  — Burbank

 If you haven’t caught a flick at a movie theater recently, then you are one of the few. While other industries are being slammed by the recession, the Hollywood Box Office is being stoked by it. In an article over on the Variety website, Motion Picture Association of America Chairman/CEO Dan Glickman explained: “Movies have become an extraordinary escape valve.”

According to the article, movie attendance is up 9 % this year. In 2008, the average cost of a movie ticket in the U.S. was $7.18. Now that really sounds like a super deal to me. Recently, I popped into a local cinema to see the corporate spy thriller romance, “Duplicity,” during an afternoon matinee for $9.50. The price was not dirt cheap, but still a bargain just the same.

 Also, I have to say the Hollywood studios and production companies are doing a boffo job of filling the theaters with interesting and diverse movies. Not every film is a gem, but there haven’t been a lot of duds either. So it’s pretty much a win-win situation for all. 

 White House file photo/Pete Souza

President Barack Obama took to the air waves last night for the second prime-time news conference of his 64-day-old administration. President Obama’s main goal was to rally the country around his proposed new $3.6 trillion budget, which is causing debate in Congress mainly because of its huge dollar commitment.

In his news conference, the president described how his budget: “… will build our economic recovery on a stronger foundation so that we don’t face another crisis like this 10 or 20 years from now. We invest in the renewable sources of energy that will lead to new jobs, new businesses and less dependence on foreign oil. We invest in our schools and our teachers, so that our children have the skills they need to compete with any workers in the world. We invest in reform that will bring down the cost of health care for families, businesses and our government. And in this budget, we have to make the tough choices necessary to cut our deficit in half by the end of my first term…”

The president expressed confidence that: “We’ll recover from this recession, but it will take time…” After his opening statement, Obama took questions from reporters on a variety of subjects including stem cell research, the Mexican drug/border violence problem, and the Israeli & Palestinian conflict. However, most the reporter questions focused on shoring up the weak economy and financial system; providing the president with more chances to push the benefits of his recovery plan.

The president readily admitted our economic crisis is serious, but insisted our country is still stable: “I would just point out that the dollar is extraordinarily strong right now. And the reason the dollar is strong right now is because investors consider the United States the strongest economy in the world with the most stable political system in the world.”

AIG build in Los Angeles. Photo by Fred Prouser/Reuters

President Barack Obama reacted with “outrage” today to news of the insurance giant, AIG, handing out $165 million in bonuses after receiving $173 billion in government bailout funds. At the White House, the president lashed out at AIG: “This is a corporation that finds itself in financial distress due to recklessness and greed.”

The president pointed out that regular folks across the nation are struggling to stay afloat in this weak economy without the benefits of government bailout money or multi-million dollar bonuses. President Obama says his administration will “… pursue every single legal avenue to block these bonuses.”

Right on. If American International Group insists on giving bonuses to the executives that helped wreck the corporation, then it should pay back every dollar, nickle, and dime of bailout money to the government immediately. The fact that AIG officials have the nerve to pay out these bonuses and then justify them, shows the need for more federal regulation of large financial institutions. Also, I continue to believe that AIG is too big to function as a viable corporation and should be broken up into several smaller companies.

The stock market made big news today, but not in a way that benefits the weak economy or nervous investors. For the first time in more than a decade, the Dow Jones industrials closed below 7,000 at 6,763.69. Today, the Dow dropped nearly 300 points!  MSNBC reports the Dow has lost half of its value since hitting a record high of 14,000 in October 2007.

Stock experts are putting the blame for the market’s tumble today on fears the recession could be deepening and AIG. The struggling insurance giant announced nearly $62 billion in quarterly losses, the largest of any U.S. corporation ever. In an effort to shore up our lagging financial system, the government tossed American International Group $30 billion more of taxpayers’ money.  AIG has already received $150 billion in bailout relief.

I understand the government’s plan to keep some of these huge U.S. financial firms afloat for the good of the economy. Still, it is becoming clear that AIG’s bad management has damaged its reputation to the point it is no longer viable. Some critics say the only thing to do with AIG is to break it up into smaller companies. I agree.  Also, the break-up of AIG needs to happen before the bloated conglomerate gets anymore taxpayer dough.

White House photo/ Pete Souza

President Obama’s first speech to a joint session of congress is being analysed and scrutinized today. So I’m having my say. First, I agree with a radio commentator who called last night’s address a “pep talk” to keep Americans inspired and focused on the tough job of rebuilding the nation’s economy and confidence in our financial systems.

A New York Times editorial complimented the president’s speech for being right on target: “He sounded confident — promising that the nation will rebuild and ‘emerge stronger than before’ — without minimizing the grave problems that must first be surmounted.”

Here are some highlights from President Obama’s speech.

“But while our economy may be weakened and our confidence shaken; though we are living through difficult and uncertain times, tonight I want every American to know this: We will rebuild, we will recover, and the United States of America will emerge stronger than before.”

 ”The fact is, our economy did not fall into decline overnight.  Nor did all of our problems begin when the housing market collapsed or the stock market sank.  We have known for decades that our survival depends on finding new sources of energy.  Yet we import more oil today than ever before.  The cost of health care eats up more and more of our savings each year, yet we keep delaying reform.  Our children will compete for jobs in a global economy that too many of our schools do not prepare them for.  And though all these challenges went unsolved, we still managed to spend more money and pile up more debt, both as individuals and through our government, than ever before.”

 ”So the recovery plan we passed is the first step in getting our economy back on track.  But it is just the first step.  Because even if we manage this plan flawlessly, there will be no real recovery unless we clean up the credit crisis that has severely weakened our financial system.”

 ”Second, we have launched a housing plan that will help responsible families facing the threat of foreclosure lower their monthly payments and re-finance their mortgages.  It’s a plan that won’t help speculators or that neighbor down the street who bought a house he could never hope to afford, but it will help millions of Americans who are struggling with declining home values – Americans who will now be able to take advantage of the lower interest rates that this plan has already helped bring about.  In fact, the average family who re-finances today can save nearly $2000 per year on their mortgage. ”

 ”Third, we will act with the full force of the federal government to ensure that the major banks that Americans depend on have enough confidence and enough money to lend even in more difficult times.  And when we learn that a major bank has serious problems, we will hold accountable those responsible, force the necessary adjustments, provide the support to clean up their balance sheets, and assure the continuity of a strong, viable institution that can serve our people and our economy.”

“But I also know that in a time of crisis, we cannot afford to govern out of anger, or yield to the politics of the moment.  My job – our job – is to solve the problem.  Our job is to govern with a sense of responsibility.  I will not spend a single penny for the purpose of rewarding a single Wall Street executive, but I will do whatever it takes to help the small business that can’t pay its workers or the family that has saved and still can’t get a mortgage. ”

“We are a nation that has seen promise amid peril, and claimed opportunity from ordeal.  Now we must be that nation again.  That is why, even as it cuts back on the programs we don’t need, the budget I submit will invest in the three areas that are absolutely critical to our economic future:  energy, health care, and education.”

“Those of us gathered here tonight have been called to govern in extraordinary times.  It is a tremendous burden, but also a great privilege – one that has been entrusted to few generations of Americans.  For in our hands lies the ability to shape our world for good or for ill. ”

Although his focus was on domestic problems, President Obama did make comments about international issues like the wars in Iraq and Afghanistan. The full text of the president’s address is on a number of major media outlets; as well as on the official White House Blog in several languages, along with video, and photos.

photo from http://gov.ca.gov/  02/20/09  — Governor Schwarzenegger holds news conference yesterday to sign the new state budget into law.

After a painful three months of bitter debate, the state legislature finally approved a budget on Thursday and Governor Arnold Schwarzenegger signed it into law yesterday. The budget reportedly solves a $42 billion deficit by raising taxes and cutting spending.

The governor says the budget lays the foundation for fiscal responsibility in the future:“During a down economy and facing an historic budget deficit we had to make some very difficult decisions, but I am very proud that California is back on the best path forward. We will continue to work with our most important partners – the people of our great state – to ensure we never again face the kind of catastrophic budget scenario we experienced this year.” Still, many  Republicans are not happy with Schwarzenegger’s decision to support raising taxes even in the face of a financial crisis.

Wally Skalij/Los Angeles Times

Although the governor is taking a lot of the credit, I will give some high-fives and kudos to State Senator Abel Maldonado (R-Santa Maria). Maldonado broke the budget impasse early Thursday morning by voting  “yes” on the budget.  

Democrats needed one more Republican ”yes” vote and Maldonado provided it. Rather than holding fast to the rigid, infexible, Republican mantra of “no tax hikes no matter what,” Maldonado did what was best for the people of California. He helped get us out of the budget mess/financial meltdown. Voters in the state should reward Maldonado with their support.

In exchange for his vote, Maldonado insisted a change be made in the state constitution to allow for open primaries, which I’m all for. Let the voters make an unrestricted choice in the primary just like in the general election. It would sure make the ballots, which have been a major headache during state primaries,  easier to understand for both voters and poll workers.   

Meanwhile, many folks in Hollywood are pleased that the new state budget includes a $100 million film and television tax incentive to put the brakes on runaway production. On the Screen Actors Guild website there is a joint statement from SAG, Directors Guild of America (DGA), American Federation of Television and Radio Artists (AFTRA), Motion Picture Association of American (MPAA) praising the decision: “For the past 10 years, a united entertainment community has been telling state officials that our industry is threatened by runaway film and television production.  Film and television productions have been leaving California for tax incentives in other states and countries for years now, and like everybody else, entertainment industry workers are suffering in this economic climate.  We applaud the passage of this incentive which will help make California competitive and not only save the jobs that are being lost but generate much needed revenue for the state.”

Now, if the producers and the Screen Actors Guild can settle their nasty contract dispute, Hollywood can really get back to the business of creating entertainment for the masses.

It’s a done deal. Less than a month into his new administration, President Barack Obama signed that massive and much fought-over $787 billion economic stimulus bill in Denver, Colorado today. President Obama reportedly used as many as 10 different pens to sign the measure.

Earlier, the media event was on the verge of becoming bogged down in speeches, when President Obama finally stepped to the mike. Perhaps, the White House should have stuck with a reported original plan of having the president sign the bill yesterday, Presidents Day; and then go on the road today and the rest of the week promoting it in various cities across the nation.

President Obama says the American Recovery and Reinvestment Act is the most sweeping piece of legislation of its kind in our history: “What makes this recovery plan so important is not just that it will create or save 3½ million jobs over the next two years, including nearly 60,000 in Colorado. It’s that we are putting Americans to work doing the work that America needs done in critical areas that have been neglected for too long, work that will bring real and lasting change for generations to come.”

Again, the president spoke about the accountability of the bill: “With a recovery package of this scale comes a responsibility to assure every taxpayer that we are being careful with the money they work so hard to earn. That’s why I am assigning a team of managers to ensure that the precious dollars we have invested are being spent wisely and well. We will hold the governors and local officials who receive money to the same high standards. And we expect you, the American people, to hold us accountable for the results. That is why we have created Recovery.gov, so every American can go online and see how their money is being spent.”

That website is up and running today.  

Photo by Pete Souza  — President Barack Obama preparing to deliver his weekly address from the White House today.

Today President Barack Obama called the passage by Congress of the much debated $787 billion stimulus bill a major milestone. Even before he officially took the oath of office, President Obama has been pushing hard for his American Recovery and Reinvestment Plan.

The president’s original plan was larger and he had lobbied for Republican support. Yesterday, the House voted 246-183 in favor of the stimulus bill; not one Republican voted for it. On Friday night, the Senate passed it on a 60-38 vote with three GOP moderates courageously voting “yes”.

Today in his weekly radio/Internet address to the nation, President Obama praised Congress for taking the swift action he encouraged: “Congress has passed my economic recovery plan – an ambitious plan at a time we badly need it. It will save or create more than 3.5 million jobs over the next two years, ignite spending by business and consumers alike, and lay a new foundation for our lasting economic growth and prosperity.

This is a major milestone on our road to recovery, and I want to thank the Members of Congress who came together in common purpose to make it happen. Because they did, I will sign this legislation into law shortly, and we’ll begin making the immediate investments necessary to put people back to work doing the work America needs done.”

The president reiterated a promise for transparency: “Once the plan is put into action, a new website – Recovery DOT gov – will allow any American to watch where the money goes and weigh in with comments and questions – and I encourage every American to do so. Ultimately, this is your money, and you deserve to know where it’s going and how it’s spent. This historic step won’t be the end of what we do to turn our economy around, but the beginning. The problems that led us into this crisis are deep and widespread. Our response must be equal to the task.”

At the end of his address, President Obama cited a message from a past president: “This morning, I’m reminded of words President Kennedy spoke in another time of uncertainty. ‘Do not pray for easy lives. Pray to be stronger men. Do not pray for tasks equal to your powers. Pray for powers equal to your tasks.’” 

President Obama is expected to sign the stimulus plan into law on Monday, February 16, Presidents Day.

President Barack Obama’s White House is looking for a few thousand dedicated public servants to fill jobs in his administration of change. Today the official White House website www.whitehouse.gov put out the call for potential candidates to use the new job link at the bottom of its pages to begin the application process.

If you decide to apply, make sure you’ve got your resume and qualifications together: “Remember, the WhiteHouse.gov jobs application is just for politically appointed positions in the Executive Branch of the government. These are positions that serve at the pleasure of the President and so are by definition temporary, not permanent. We have received more than 350,000 applications to date for several thousand positions; the selection process is very competitive and rigorous,” according to The White House Blog.

So if you feel you’ve got the right stuff and want a shot at joining the Obama administration, check out The White House Blog for more details.

FLLewis/A Writer’s Groove  —  Samuel’s floral designer Karla Comayagua adds yellow roses to an arrangement.    

The last minute dash for Valentine’s Day gifts is on and many folks are going for flowers. I dropped by Samuel’s, a Burbank florist well-known for its gorgeous arrangements and high quality flowers, yesterday afternoon. While I was there, several male customers picked up orders and they all included roses.

I am really dazzled by all the different colors of roses out this season; my favorites are the yellows and magentas. Despite the variety, Samuel’s owner/floral designer, Donna Smith, says red roses are still the most requested flowers for Valentine’s Day. 

The holiday price this week, $85 for a dozen long stem roses. That price has not changed that much in recent years, according to Smith who has owned Samuel’s since 1998. The florist opened for business in Burbank in 1937. Smith started in the shop as a helper, worked her way up to manager and eventually bought the place.

Smith admits business slowed down a bit last year as the recession kicked-in; but she says customers are still springing for flowers, particularly on special occasions. One regular customer of Samuel’s pops for fancy flower arrangements costing between $350 and $500 for the women in his family on all major holidays including Valentine’s Day.

Smith thinks the sluggish economy makes flowers a good buy because a lot of, “… people cannot afford jewelry” and other big ticket items right now. The orders have been coming into Samuel’s at a steady stream this week, nevertheless, Smith expects the pace to really pick up the closer we get to Valentine’s Day. She says Samuel’s will have at least three drivers delivering the bulk of their 100-200 orders on Friday and Saturday.

Samuel’s is at 921 West Olive Avenue, Burbank, CA 91506-2299     (818) 846-1722

President Barack Obama’s hard fought economic recovery plan struggled through the Senate today on a vote of 61-37. To pass, the measure needed 60 votes. Only three Republicans voted for the $838 billion stimulus bill.

About $108 billion in spending items were whacked from the measure in order to win support from the Republicans. Now, this stimulus bill and the one passed recently by the House will be compressed into one by a House/Senate committee. Democrats are still pushing hard for the final stimulus bill to reach President Obama’s desk for signing next Monday, Presidents Day.

Meanwhile stocks took a serious tumble, 382 points, today. The Dow industrials closed at around 7,888. Today’s Senate stimulus bill vote is not being blamed for the down turn on Wall Street. Instead, some investors and money watchers are pointing fingers at Treasury Secretary Timothy Geithner’s plan for bailing out the banks again, saying it lacks details.

The Treasury Secretary announced the new Financial Stability Plan this morning : ”Our plan will help restart the flow of credit, clean up and strengthen our banks, and provide critical aid for homeowners and for small businesses,” Secretary Geithner said. “As we do each of these things, we will impose new, higher standards for transparency and accountability.”

Last night during his first official news conference as president, Obama stressed the need for swift action on his Economic Recovery and Reinvestment Plan: “It is absolutely true that we cannot depend on government alone to create jobs or economic growth. That is and must be the role of the private sector. But at this particular moment, with the private sector so weakened by this recession, the federal government is the only entity left with the resources to jolt our economy back to life. It is only government that can break the vicious cycle where lost jobs lead to people spending less money which leads to even more layoffs. And breaking that cycle is exactly what the plan that’s moving through Congress is designed to do. “

FLLewis/A Writer’s Groove

Celia Wolin is a total perfectionist when it comes to her trademark manicures, pedicures, and therapeutic foot massages called reflexology. Wolin’s clients( I’m one of them) rave about her skill, care, creative flair, and attention to high sterilization standards. Candy and flowers are dandy for Valentine’s Day, but many folks in the San Fernando Valley are giving Wolin’s gift certificates for treatments at the Toscana Hair & Nail Studio in Burbank. Wolin shares the cozy chic Italian-influenced salon with owner and hairstylist extraordinaire, Ana Balzer.

 On most days there’s a steady stream of customers dropping into Toscana. Around the holidays the number of folks coming in to buy gift certificates or to redeem them goes up. The clientele includes men as well as women.

 In the salon now are fancy fliers advertising Celia’s Valentine’s Day specials: Love Affair in Italy Manicure $29, Chocolates & Roses Pedicure $39, and Gentlemen’s or Ladies’ Reflexology Session $35. Through the years, Celia has noticed that men usually buy the pedicure gift certificates for their lady loves; and women seem to prefer to gift their male valentines with reflexology treatments.

In these troubled times with the economy in a tailspin, Celia has discovered customers really want to de-stress and relax. Futhermore, she says they’re being very careful with how they spend their money this Valentine’s Day :”People want a good value… (also, to be) able to show someone they love they care.” Celia’s gift certificates include a $5 bonus coupon, which can be used on a future nail or reflexology treatment.

Toscana Hair & Nail Studio is located at 2005 West Burbank Boulevard, Burbank, CA  91506  (818) 917-1561.

Photo from: www.whitehouse.gov

Today President Barack Obama vowed to take ”the air out of golden parachutes” with new rules governing financial compensation for top executives at companies taking federal bailout money. The President said: “As part of the reforms we’re announcing today, top executives at firms receiving extraordinary help from U.S. taxpayers will have their compensation capped at $500,000 — a fraction of the salaries that have been reported recently. And if these executives receive any additional compensation, it will come in the form of stock that can’t be paid up until taxpayers are paid back for their assistance.”

Recent reports claim executives on Wall Street got year-end bonuses of $18 billion, despite the financial meltdown and billions from the U.S. government paid to some of their companies. President Obama called this, “Shameful.”

Also, it’s a shame Bush Administration officials did not put restrictions on executive compensation into the Troubled Asset Relief Program, before they handed over billions of dollars of taxpayers’ money to these ungrateful financial institutions. The full text of President Obama’s statement about the new rules is on the White House blog.