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$2.99
This is at the same time that the Bankster muckie-mucks are giving themselves million dollar bonuses based upon getting a public dole. Also to be noted -- the banks that were bailed out or not making any loans while the small banks that were not bailed out are making loans - see - This bit of big bank skullduggery should be broadcast from the rooftops.
From Washington's Blog - “The Vast Majority Of This Contraction Of Credit Availability To American Industry Has Been By The Larger Banks”
I am comparing my last pay stub of 2010 to the first one of 2011. Each pay stub is for two weeks. It appears that the Social Security payroll tax holiday has kicked in. My gross wages have not changed.
My 2011 gross taxable wages, however, are increased by the $9.72 premium on Group Term life insurance policy, an increase of $4.54 over last year’s biweekly premium of $5.20. So basically, my gross wages have increased by $4.54 over 2010, even though I don’t see any of that money. My company pays the premium for the policy, but I pay the tax on that premium.
After all the math is done, my 2011 bi-weekly federal taxable wages went down by $7.81 due to the increase in my health insurance and the addition of supplemental eye care ($12.35) plus the additional $4.54 of Group Term Life insurance premium tacked onto my taxable income. All other pretax deductions (401K and Flex Spending account) remain the same.
Got that? My federal taxable wages went down. But my federal income tax went up $20.25 at the same time my FICA payroll tax dropped $35.70. How is that possible?
My net gain 2010 paycheck to 2011 paycheck? $2.99. Every two weeks.
Not even enough to buy a soy latte at Starbucks.
Wow. That’s some kind of ”change we can believe in.”
My 2011 gross taxable wages, however, are increased by the $9.72 premium on Group Term life insurance policy, an increase of $4.54 over last year’s biweekly premium of $5.20. So basically, my gross wages have increased by $4.54 over 2010, even though I don’t see any of that money. My company pays the premium for the policy, but I pay the tax on that premium.
After all the math is done, my 2011 bi-weekly federal taxable wages went down by $7.81 due to the increase in my health insurance and the addition of supplemental eye care ($12.35) plus the additional $4.54 of Group Term Life insurance premium tacked onto my taxable income. All other pretax deductions (401K and Flex Spending account) remain the same.
Got that? My federal taxable wages went down. But my federal income tax went up $20.25 at the same time my FICA payroll tax dropped $35.70. How is that possible?
My net gain 2010 paycheck to 2011 paycheck? $2.99. Every two weeks.
Not even enough to buy a soy latte at Starbucks.
Wow. That’s some kind of ”change we can believe in.”
George Washington has produced evidence that it’s the big banks that have failed to lend over the last year or so, while smaller banks have continued to lend.
Let’s be clear about that. The banks which are in receipt of billions of taxpayers’ money and various covert subsidies like the implicit “too big to fail” subsidy have, to put it impolitely, sat on their ar*ses, while the banks which are NOT in receipt of these totally unwarranted privileges have continued to lend.
Walter Bagehot will be turning in his grave. He said, “any aid to a present bad bank is the surest mode of preventing the establishment of a future good bank”. Quite right.
Let’s be clear about that. The banks which are in receipt of billions of taxpayers’ money and various covert subsidies like the implicit “too big to fail” subsidy have, to put it impolitely, sat on their ar*ses, while the banks which are NOT in receipt of these totally unwarranted privileges have continued to lend.
Walter Bagehot will be turning in his grave. He said, “any aid to a present bad bank is the surest mode of preventing the establishment of a future good bank”. Quite right.
Dennis Santiago - CEO and Managing Director of Institutional Risk Analytics (Chris Whalen's company) - notes:
As I wrote in 2009:
Fortune pointed out in February that smaller banks are stepping in to fill the lending void left by the giant banks' current hesitancy to make loans. Indeed, the article points out that the only reason that smaller banks haven't been able to expand and thrive is that the too-big-to-fails have decreased competition:
As big banks struggle, community banks are stepping in to offer loans and lines of credit to small business owners...
At a congressional hearing on small business and the economic recovery earlier this month, economist Paul Merski, of the Independent Community Bankers of America, a Washington (D.C.) trade group, told lawmakers that community banks make 20% of all small-business loans, even though they represent only about 12% of all bank assets. Furthermore, he said that about 50% of all small-business loans under $100,000 are made by community banks...
The really shocking numbers are in the unused line of credit commitments of banks to U.S. business. This is the canary number I like to look at because it is a direct expression of banking and finance confidence in Main Street industry. It's gone from $92 billion in Dec -2007 to just $24 billion as of Sep-2010. More importantly, the vast majority of this contraction of credit availability to American industry has been by the larger banks, C&I LOC from $87B down to $18.8B by the institutions with assets over $10B. Poof!
This once again confirms what I have been saying for years: the giant banks are causing most of the credit contraction.As I wrote in 2009:
Fortune pointed out in February that smaller banks are stepping in to fill the lending void left by the giant banks' current hesitancy to make loans. Indeed, the article points out that the only reason that smaller banks haven't been able to expand and thrive is that the too-big-to-fails have decreased competition:
Growth for the nation's smaller banks represents a reversal of trends from the last twenty years, when the biggest banks got much bigger and many of the smallest players were gobbled up or driven under...
As big banks struggle to find a way forward and rising loan losses threaten to punish poorly run banks of all sizes, smaller but well capitalized institutions have a long-awaited chance to expand.
Business Week noted in January:As big banks struggle to find a way forward and rising loan losses threaten to punish poorly run banks of all sizes, smaller but well capitalized institutions have a long-awaited chance to expand.
As big banks struggle, community banks are stepping in to offer loans and lines of credit to small business owners...
At a congressional hearing on small business and the economic recovery earlier this month, economist Paul Merski, of the Independent Community Bankers of America, a Washington (D.C.) trade group, told lawmakers that community banks make 20% of all small-business loans, even though they represent only about 12% of all bank assets. Furthermore, he said that about 50% of all small-business loans under $100,000 are made by community banks...
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