Billions Meant for Struggling Homeowners Diverted By House Republicans

A new report by the investigative website Pro Publica publicizes that Congress diverted $30 billion in bailout money allocated to help struggling homeowners prevent foreclosure in order to pay down the national debt instead.

There were more than 1 million foreclosure filings in the first half of 2011 alone, yet only a fraction of the government aid that was supposed to reach homeowners has been spent:

Instead, Congress has mandated that the leftover money be used to pay down the debt.

Of the $45.6 billion in Trouble Asset Relief Program funds meant to aid homeowners, the most recent numbers available show that only about $2 billion has actually gone out the door.

The low number reflects how little the government’s home loan modification and other programs have actually helped homeowners deal with the foreclosure crisis.

Read the full report @ Pro Publica.

Sen. Sanders Introduces Bill To Lift Social Security Payroll Tax Cap

On Thursday, Sanders announced that he will introduce legislation that would fully fund Social Security to the end of this century without cutting benefits to any of its beneficiaries. Sanders’ legislation would eliminate the income cap that currently exists in the payroll tax that does not tax income above $106,800:

To keep Social Security strong for another 75 years, Sanders’ legislation would apply the same payroll tax already paid by more than nine out of 10 Americans to those with incomes over $250,000 a year. [...] Under Sanders’ legislation, Social Security benefits would be untouched. The system would be fully funded by making the wealthiest Americans pay the same payroll tax already assessed on those with incomes up to $106,800 a year.

Last week, Sen. Bernie Sanders (I-VT) was a featured speaker at the United Steel Workers 2011 conference in Las Vegas.

Sen. Bernie Sanders (I-VT)

Sanders focused much of his speech on the Social Security system, blasting suggestions by Democrats and Republicans alike that, for example, we should adjust the cost of living adjustment to cut Social Security payments to working class Americans or raise the retirement age. “When [Social Security] was developed, 50 percent of seniors lived in poverty.

Today, poverty among seniors is too high, but that number is ten percent. Social Security has done exactly what it was designed to do!”

Sanders points out that President Obama himself endorsed this idea on the campaign trail in 2008. “What we need to do is to raise the cap on the payroll tax so that wealthy individuals are paying a little bit more into the system. Right now, somebody like Warren Buffet pays a fraction of 1 percent of his income in payroll tax, whereas the majority…pays payroll tax on 100 percent of their income. I’ve said that was not fair,” said Obama during the campaign.

The Social Security system is currently fully funded until 2037. Lifting the payroll tax cap would virtually eliminate funding shortfalls the program would experience over the next 75 years.

Hurricane Irene A Dangerous Storm For The Eastern Seaboard

The expected arrival of the nearly 600-mile-wide Hurricane Irene this weekend means that states of emergency have been declared along the length of the eastern seaboard. Dangerous Irene is an usually wet and large hurricane in its overall size with tropical storm force winds extending out nearly 300 miles from the center. Climate scientists studying hurricanes have documented a 35-year warming trend of 1 degree Fahrenheit in ocean surface temperature. That 1 degree rise in surface temperature increases atmospheric water vapor available to feed hurricanes, increasing the area of tropical storm force winds and total rainfall amounts.

Depending on numerous factors, it could take New York City “weeks or months” to return to normal if the densely-populated city suffers a direct hit from Hurricane Irene. Apart from the potential loss of life in the most densely populated part of the America, history suggests that the economic damage could run into the tens of billions of dollars, depending on the severity of the storm and how close it comes to the City of New York. Unlikely but theoretically plausible scenarios could have the damage entering the realm of the costliest natural disasters of all time, and perhaps being large enough to have a materially negative effect on the nation’s gross domestic product.

The storm is poised to hit New York at a time when high tides reach their highest levels, which could amplify flooding in the city built around bays and rivers. Some experts predict a storm surge of five feet or more. Lower Manhattan could see streets under a few feet of water.

"In many ways, a Category 2 or stronger storm hitting New York is a lot of people's nightmare, for a number of reasons," said Susan Cutter, director of the Hazards and Vulnerability Research Institute at the University of South Carolina.

Even if the winds aren't strong enough to damage buildings made largely of brick, concrete and steel, a lot of New York's subway system and power lines are underground. The city's airports are close to the water, too, and could be inundated, as could densely packed neighborhoods. Hospitals were told to make sure generators were ready.