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Tag: Government

Will John Kerry Kill the Keystone XL Pipeline? Money Morning

When new U.S. Secretary of State John Kerry met Friday with Canadian Foreign Minister John Baird in Washington, the talk turned to the fate of the controversial Keystone XL pipeline.

Kerry said the controversial $7 billion Keystone XL pipeline project would undergo a “fair and transparent review,” adding he expects to make a decision “near-term” on whether to move forward with it. The State Department has final say over the pipeline because it traverses international borders.

According to a department spokeswoman, a decision is likely at the end of March. But Reuters reported an unidentified U.S. official said the decision could be pushed back until June.

Canada is committed to the pipeline, and Baird lobbied hard for it during the meeting with Kerry. After the meeting, Baird called the Keystone XL pipeline a “huge priority.”

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Government S&P Lawsuit: Who’s Next? Money Morning

A massive U.S. government S&P lawsuit has no doubt hurt the fortunes of Standard & Poor’s parent company The McGraw-Hill Companies Inc. (NYSE: MHP), whose shares have dropped 25% since it was filed.

But the collateral damage could spell bad news for a number of parties and has implications even for the overall health of the U.S. economy.

The Justice Dept., joined by attorneys general from 16 states, unveiled a case accusing S&P of fudging its ratings of subprime mortgages to make the toxic securities appear better than they were.

The federal government is seeking $5 billion in penalties — more than five times what S&P made in 2011 — to cover losses to investors in federally insured banks and credit unions. Separate suits filed by individual states could more than double that figure.

It’s the first time the government has taken action against a credit rating agency over illegal behavior tied to the recent financial crisis.

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The Real Cost of Obamacare – Money Morning

Like it or not, in less than a year – January 2014 – the core of U.S. President Barack Obama’s healthcare reform goes into effect – and recent data show the cost of Obamacare will be quite high.

The statistics are startling, seeing as the intent of Obamacare was to reduce overall medical costs in the country – one big reason government spending is running wild – by improving access to treatment for Americans. An additional 30 million Americans are expected to be covered under Obamacare.

But new reports estimate the new healthcare system could cost about $1.3 trillion over the next 10 years.

That means the original outcome – which President Obama said would be to “cut the cost of a typical family’s premium by up to $2,500 a year” – is far from reality.

Here’s a breakdown of what Obamacare will really cost you – and your job could be included.

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