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News Oct. 29

Senator Sanders

Bailout Fallout “The American taxpayer, because of the greed on Wall Street...had to come up with $700 billion to bail these guys out. The theory behind the bailout is we've got loosen up credit…Now, what we're learning is that…the maajor financial institutions who have received tens of billions of dollars of taxpayer money are saying, "Oh, no, we're not going to be lending that money out.  What we're going to be doing is continuing to give huge bonuses to Wall Street executives…[T]hat's certainly not the theory as to why...Wall Street got that money.” Sanders said on the CNBC program “Power Lunch.” VIDEO

Bonuses Blasted Democratic lawmakers are joining the chorus of Americans asking how slumping banks could hand out executive bonuses during the worst economic crisis since the Great Depression. Following a letter from Rep. Dennis Kucinich, House Oversight and Government Reform Committee chairman Henry Waxman has opened an investigation into the matter, according to a release from his office.  Sen. Bernie Sanders has also called for a ban on executive bonuses at the banks, ABC News.com reported. LINK

White Space The Vermont Telecommunications Authority is asking the Federal Communications Commission to free up the "TV White Space" broadcast spectrum for wireless Internet use, a move that could improve access for rural communities…The VTA encourages Vermonters who have thoughts on the issue to contact Senators Patrick Leahy and Bernie Sanders, or Congressman Peter Welch, the Bennington Banner reported. LINK

Free Press Backs Welch “Welch has worked with Vermont's senators, Patrick Leahy and Bernie Sanders, to promote the state's interests in Washington. A notable success is release of federal heating aid money over the summer and the increase in Vermont's allocation for the coming season…Welch's first term has been impressive. He offers the best choice for the kind of sober-minded and pragmatic representation in Washington that Vermonters expect and need,” The Burlington Free Press concluded in an editorial endorsing the unopposed congressman’s bid for a second term. LINK

International

Stocks Rally Europe's stock markets opened mostly higher Wednesday after a stunning rally on Wall Street and further gains in Asia overnight as investors awaited possible interest rate cuts from central banks in the U.S. and Japan, The Associated Press reported. LINK

National

U.S. Markets Surge Stocks skyrocketed nearly 11 percent yesterday in the second-biggest point gain ever for the Dow Jones industrial average, buoyed by signs of improving credit conditions and expectations that the Federal Reserve would slash a key interest rate today, The Washington Post reported. LINK

Next Crisis: Credit Cards After years of flooding Americans with credit card offers and sky-high credit lines, lenders are sharply curtailing both, just as an eroding economy squeezes consumers.  The pullback is affecting even creditworthy consumers and threatens an already beleaguered banking industry with another wave of heavy losses…Lenders wrote off an estimated $21 billion in bad credit card loans in the first half of 2008 as more borrowers defaulted on their payments, The New York Times reported. LINK

States Cut Health Care Economic troubles are forcing states to scale back safety-net health-coverage programs — even as they brace for more residents who will need help paying for care. Many cuts affect Medicaid, which pays for health coverage for 50 million low-income adults and children nationwide, including nearly half of all nursing home care. The joint federal-state program is a target because it consumes an average 17 percent of state budgets — the second-biggest chunk of spending in most states, right behind education, according to USA Today. LINK

Vermont

Vermont Ballot Lawsuit Vermont and the secretary of state are seeking to have a federal lawsuit dismissed over the reporting of military absentee ballots, The Associated Press reported. The suit, filed Oct. 10 by the U.S. Department of Justice, asks the court to declare that Vermont failed to meet its reporting obligation on the number of absentee ballots sent and returned from members of the military and Vermonters living overseas in 2006. It also alleges the state is likely to fail similarly in the Nov. 4 election and seeks an injunction to prevent that from happening. LINK

Vermont Yankee A plan by Vermont Yankee’s owner to spin off five nuclear reactors under a new company has been put on hold because of the country’s financial turmoil.  Alex Schott, a spokesman for Entergy Corp. in New Orleans, says the company still plans to pursue regulatory approval for the deal, AP reported. LINK

More Snow Coming High winds and snow from this season's first winter storm are to blame for power outages in Chittenden and Franklin counties and slippery traveling across parts of the state. The National Weather Service has posted a winter storm warning for heavy snow in Orleans and eastern Franklin counties through Wednesday night, with 3 to 9 inches accumulation. The northern central and eastern parts of the state also are expected to see more snow Wednesday, with 2 to 6 inches expected. So far by Wednesday morning, North Underhill has reported 4 inches, Stannard had 3 inches, Jay Peak 2 inches and Hinesburg 3 inches. LINK