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Subject: US Congress

The United States Congress is the bicameral legislature of the federal government of the United States of America, consisting of the Senate and the House of Representatives. Both senators and representatives are chosen through direct election.

Each of the 435 members of the House of Representatives represents a district and serves a two-year term. House seats are apportioned among the states by population. The 100 Senators serve staggered six-year terms. Each state has two senators, regardless of population. Every two years, approximately one-third of the Senate is elected at a time. Reelection rates for incumbents often exceed 90%.

Article I of the Constitution vests all legislative power in the Congress. The House and Senate are equal partners in the legislative process (legislation cannot be enacted without the consent of both chambers); however, the Constitution grants each chamber some unique powers. The Senate is uniquely empowered to ratify treaties and to approve top presidential appointments. Revenue-raising bills must originate in the House of Representatives, which also has the sole power of impeachment, while the Senate has the sole power to try impeachment cases.

The Congress meets in the U.S. Capitol in Washington, D.C.

The term Congress is also used to refer to a particular meeting of the national legislature, reckoned according to the terms of representatives. Therefore, a “Congress” covers two years. The current 111th Congress convened on January 6, 2009.

[Wikipedia: 2009]

Corporate Governance

Execs pocket billions with Jobs Creation Act

The Perfect Crime

In 2004, the US Congress passed the “American Jobs Creation Act” which allowed a US company to elect, for one taxable year, an 85% dividends-received deduction with respect to qualifying cash dividends from its foreign subsidiaries, when such dividends were in excess of a base period amount and were reinvested in the US pursuant to a ‘domestic reinvestment plan’.

Corporate executives took advantage of this tax break to fatten up their option pay, while cutting dividends to shareholders.

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Featured articles on inside pages

Stock buybacks

WSJ exposes the 9/11 caper

In a major exposé of misused executive options, the Wall Street Journal ran a front page article, reporting that as stocks sank after the the 9/11 attacks, scores of companies rushed to issue options to top officials. Some executives reaped millions.
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Securities Analysis

Operational versus financial information

The Crash of 2008 suggests that understanding the operational details of capital markets can be as important as financial analysis. This article discusses Capital Market Taxonomy in this context. More ...

US Politics

Why Congress won't kill ACORN

Closely connected with President Obama, the ACORN group of "community organizers" has drawn censure from the Democrat-controlled Congress as a result of investigative reporting by James O'Keefe and Hannah Giles. More ...

US equities

The productivity vs. population debate

The 'Baby Boomer Bomb' refers to the expected effect of the retirement of the Baby Boomer generation on capital markets, particularly equities. Two proposed 'solutions' to the problem are examined: Boomers being 'saved' by productivity and technology; and, alternatively, by selling their financial assets to the next generation..
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US Bonds

Bond demand exceeds supply for a decade

Over the decade, 1995-2004, the demand for US bonds of all types has surpassed new bond issues in eight of the last ten years. This is the reason that bond prices have held firm, even in 2003, when net new issues reached almost $1.8 trillion. More ...

World Economy

What Is ‘International Liquidity’?

It used to be that the term 'international liquidity' meant the relative amount of resources available to a nation's monetary authorities that could be used to settle a balance of payments deficit. In the days of the gold standard, this would mean access to gold that could be used to redeem a nation's currency held by foreigners. More ...

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