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Insurance Company Profits From a Fallen Soldier While Simultaneously Ripping Off His Family

July 28, 2010 By James View Comments

I wish I could say this story was somehow shocking or the exception rather than the rule, unfortunately, for anyone who’s even somewhat paid attention over the past decade or so it’s obvious that this is par for the course.

There seems to be no end to what the greed of corporate executives will drive them to do. If you’re wondering why the gap between the haves and the have nots is ever widening, you need look no further than this story and then multiply it 20 or 30 million times.

We’re not just talking borderline shady or questionable actions, we’re talking about downright despicable policies that blatantly put corporate profits ahead of the well-being and interest of the people they’re supposed to be serving. The very people who are responsible for their success in the first place.

For Prudential insurance it doesn’t even seem to matter that the person whose life in question is an American soldier who lost his life fighting in Afghanistan.

Sgt. Ryan Baumann was out on a mission riding in his Humvee when he spotted an IED, his immediate reaction was to shout to the driver to “turn left”. That left the IED directly under himself. Sgt. Baumann was killed instantly while the driver, gunner and medic that were with him survived.

His mother was forced to face one of the most unimaginable things a parent can face. Having to bury their own son or daughter.

It was hard to accept life without her son, until a casualty assistance officer asked her to choose how she would like to receive his death benefits. 

“At that moment, you realize this was real,” she said. “I also knew that you know, to me, it felt like I was profiting from his death, you know, by getting money.” 
She eventually filed, electing to receive a lump sum of $400,000. But the check never came. Instead, she received a check book and a packet from Prudential saying the money had been placed in its “alliance account” where it was “available immediately” and would “begin earning interest” right away.

Everything seemed fine, until she tried using the checks. 

“I was told that the check could not be verified,” she said.

Here’s the gist of what’s going on. Instead of actually giving out the lump sum as requested, Prudential holds the money in an account of its own and sends out checks to use. Meanwhile, Prudential is paying out less than one percent interest on the money to the family member while collecting nearly five percent from their own investment of the money.

Yes, I am aware that this isn’t an anomaly and that many corporations capitalize on death in one way or another. The question is how long can corporate America keep draining the resources of the bottom ninety percent of Americans before our entire system destabilizes and implodes on itself?

Filed Under: News Tagged With: corporate whoredom, Economy, insurance, military, prudential

The Persecution and Assassination of the Middle Class of America

July 26, 2010 By James View Comments

I recently  wrote about how ludicrous it is that anyone in our political system is opposing the expiration of the Bush era tax cuts. As the middle and lower-classes continue to be mired in bankruptcy, overwork and misery, there are politicians “gearing up for a fight” against a few percent tax on the less than 5% or Americans who are fortunate enough to make more than $250,000.

Bush created the tax cuts for the wealthy claiming it would boost the economy, the old GOP standby of “trickle-down economics”.

A friend of mine pointed out awonderful follow-up to my post, an article in the Business Insider about how the middle class is being systematically wiped out.

To think, we are so self-loathing and full of contempt for ourselves and our fellow Americans that we openly allow our politicians to think, even for a moment, that Bush era tax cuts for the rich should not be allowed to expire.

Ninety percent of American make less than $100,000 a year and we’re scared to death to think that the few people who make more than $250,000 a year might some how punish us, or make things worse (is that possible) if we raise their taxes a few percent. I hope our grand tradition of voting against our own self-interests comes to an end soon.

Click after the jump to see the 22 statistics that prove the middle class is being systematically dismantled and destroyed by the haves:

  • 83 percent of all U.S. stocks are in the hands of 1 percent of the people.
  • 61 percent of Americans “always or usually” live paycheck to paycheck, which was up from 49 percent in 2008 and 43 percent in 2007.
  • 66 percent of the income growth between 2001 and 2007 went to the top 1% of all Americans.
  • 36 percent of Americans say that they don’t contribute anything to retirement savings.
  • A staggering 43 percent of Americans have less than $10,000 saved up for retirement.
  • 24 percent of American workers say that they have postponed their planned retirement age in the past year.
  • Over 1.4 million Americans filed for personal bankruptcy in 2009, which represented a 32 percent increase over 2008.
  • Only the top 5 percent of U.S. households have earned enough additional income to match the rise in housing costs since 1975.
  • For the first time in U.S. history, banks own a greater share of residential housing net worth in the United States than all individual Americans put together.
  • In 1950, the ratio of the average executive’s paycheck to the average worker’s paycheck was about 30 to 1. Since the year 2000, that ratio has exploded to between 300 to 500 to one.
  • As of 2007, the bottom 80 percent of American households held about 7% of the liquid financial assets.
  • The bottom 50 percent of income earners in the United States now collectively own less than 1 percent of the nation’s wealth.
  • Average Wall Street bonuses for 2009 were up 17 percent when compared with 2008.
  • In the United States, the average federal worker now earns 60% MORE than the average worker in the private sector.
  • The top 1 percent of U.S. households own nearly twice as much of America’s corporate wealth as they did just 15 years ago.
  • In America today, the average time needed to find a job has risen to a record 35.2 weeks.
  • More than 40 percent of Americans who actually are employed are now working in service jobs, which are often very low paying.
  • or the first time in U.S. history, more than 40 million Americans are on food stamps, and the U.S. Department of Agriculture projects that number will go up to 43 million Americans in 2011.
  • This is what American workers now must compete against: in China a garment worker makes approximately 86 cents an hour and in Cambodia a garment worker makes approximately 22 cents an hour.
  • Approximately 21 percent of all children in the United States are living below the poverty line in 2010 – the highest rate in 20 years.
  • Despite the financial crisis, the number of millionaires in the United States rose a whopping 16 percent to 7.8 million in 2009.
  • The top 10 percent of Americans now earn around 50 percent of our national income.

Filed Under: Politics Tagged With: america, corporate whoredom, Economy, middle class, Politics

Let’s ‘Bottom Line’ the Expiration of the Bush Tax Cuts

July 25, 2010 By James View Comments

The New York Times does its best impersonation of a flamebaiting troll with this headline, “Battle Looms in Washington Over Expiring Bush Tax Cuts“.

Let there be no mistake about it, this is not a battle, this is an ambush, an execution. Just one more attempt to massacre what is left of the dignity and pride of the working class of America.

This is not about black vs. white. This is not about Republican vs. Democrat. This is about the haves vs. the have nots. More than likely if you’re reading this shady, good-for-nothing blog, you’re more than likely not a member of the former.

Let’s look at a few facts (figures from the last available numbers in 2008):

  • The median household income in the United States is $52,029. [source (PDF)]
  • Only 17.8% of all U.S. households make more than $118,200 a year. [source]
  • Only 2.67% make more than $200,000. [source]
  • In 2008, there were over 211 million people in the U.S. with some income and only 13 million made more than $100,000. [source]
  • IRS statistics show 7,389 federal tax returns with $200,000 or more in adjusted gross income reported no federal income taxes in 2005. That’s a 161% jump from the 2,833 comparable returns filed in 2004. The increases stem in part from two tax law changes, according to the IRS Spring 2008 Statistics of Income Bulletin. [source]
  • Those reporting adjusted gross income of more than $250,000 to the IRS are projected to make up 2% of households. [source]
  • Roughly 40% of the population fall below the poverty line at some point within a 10-year time span.

Listen up MSM, this is why this is not a battle. The 2% of the population that are fortunate enough to make more than $250,000 a year are being asked to to be taxed a mere few percent more in order to give back into the system that allowed them to amass that amount of wealth to begin with.

Tell me what kind of battle this would be [source]:

  • 50% make < 30k a year
  • 40% make 30k – 100k.
  • 9.5% make 100k to 500k.
  • About 55,000 make 1M/yr
  • About 10,000 make >10M/yr.

If this were indeed a battle, if our politicians had the courage to stand up and be passionate about the voiceless 90% of their consitutuants that spend their time working and spending and living and dying just to put food on their family’s plates.

Take note of the politicians, Republican or Democrat that oppose the coming demise of these George W. Bush tax cuts. Take note of the people who you elected that decides to stand up and fight to save the insignficant number of people who have put themselves in a position to make more than a quarter of a million dollars a year.

Take note of the so-called politicians who are willing to sacrifice your child’s education or your loved one’s health care in order to ensure that the rich stay rich.

Filed Under: Politics Tagged With: census, Economy, Politics, president obama, taxes

Jon Stewart takes CNBC’s Jim Cramer to Task on The Daily Show

March 13, 2009 By James View Comments

I know I haven’t posted in a while, but I’ve had a lot of new and exciting projects that I’m working on that are keeping me extremely busy. Hopefully I’ll be able to write more about them soon.

In the meantime, rest easy knowing that, at the very least, Jon gives a shit about you and your money, even if CNBC doesn’t. I honestly wouldn’t be surprised, if after some of the video that Stewart broke out if the SEC didn’t decide to make an example out of Cramer. It’s some pretty shocking stuff.

Here’s a bit of background in case you haven’t been following the build up.

Filed Under: Uncategorized Tagged With: cnbc, Economy, fast money, jim cramer, jon stewart, the daily show, wall street

Circuit City Officially Announces Total Liquidation

January 17, 2009 By James View Comments

circuit_cityIf you’re looking to pick up some electronics, tomorrow may be a good day to get a few good deals provided you can get your hands on them. 

This is what is currently posted on Circuit City’s website:

Circuit City would like to thank all of the customers who have shopped with us over the past 60 years. Unfortunately, we announced on January 16, 2009, that we are going out of business.

Please check back later for updates about the status of our website. In the meantime, we hope the information below will help answer most of your questions.

A few months ago Circuit City announced it was going to be filing bankrptcy, shutting down many of their stores and reorganizing but staying in business.  Apparently they forgot about the recession.

We had hoped to be able to emerge from Chapter 11 bankruptcy protection as a stronger, more competitive company and we made significant progress during the reorganization to improve our business.  Unfortunately, the economic climate is so poor that we have no choice other than liquidation.

Total liquidation.  Employees are getting 60-days pay and a thank you.  This is going to put a lot more people out of work.  

I wasn’t the biggest fan of Circuit City, mainly because their customer service sucked since they made the decision to fire all of their employees who had been with the company for a while and were “making too much money” and replaced them with minimum wage dolts that do nothing but crank up the music in the home entertainment section, which is probably why they’re in this position in the first place, but it’s never good to see a chain this big go out of business.  Best Buy has a virtual monopoly now and less competition will mean less deals.

Filed Under: Tech Tagged With: circuit city, corporate whoredom, Economy, liquidation, recession

When a Gluttonous Consumer Society Finally Gorges Itself to Death

December 21, 2008 By James View Comments

We are living in a society that subsists almost entirely on our greed and lack of self-control.  Take away the greed and add some self-control and watch the economy falter.

“The search for efficiency and the urge to consume has set us all up like a row of dominoes – there is no buffer, no resiliency. As one problem rises it causes another. As one solution is tried it drives another problem. We all pull back and the consumer economy stalls. The auto industry and credit firms feeds the media (40% of conventional advertising). Papers and TV and Radio networks, many subject to LBO’s will have to fail as per the Tribune. Every sector will be laying people off. Sales of all things fall off a cliff – driving more business failures and layoffs. Cities and states that depend on sales tax and property tax and the credit markets can rely on none of these. So they too will have to lay off millions – thus making all the problems worse. National governments will be asked to save us all and of course cannot. As States and Cities get squeezed and cannot borrow, they will too lay off millions – teachers, firemen police. No one will be safe,” - Robert Patterson, surveying the year to come.

Can we learn to rebuild and restructure our society and economy to accommodate a sustainable future?  Or will we wait until the fear passes, print more money and continue our old ways, leaving these pesky problems for our children and grandchildren to deal with?

Filed Under: Uncategorized Tagged With: Economy, recession
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