Winnipeg Free Press

Winnipeg Free Press (Newspaper) - January 9, 2009, Winnipeg, Manitoba C m y k Page a11 Winnipeg repress. Com world Winnipeg free press Friday january 9, 2009 a 11 f Fairfax a. President elect Barack Obama warned of dire and Long lasting consequences if Congress does not pump unprecedented dollars into the u. S. Economy making an urgent pitch thursday for his Mammoth spending proposal in his first speech since the election. In Short a bad situation could become dramatically worse if Washington does not go far enough to address the spreading crisis he said As fresh reports showed an increasingly grim Outlook. Since his november election Obama has deferred to president George w. Bush on foreign policy matters such As the Middle East. But with the worsening of the economic situation Obama has waded deeply into Domestic issues As he works to generate support for his plan to create jobs and Jolt the Economy into recovery. In the speech at George Mason University Obama asked Congress to work with him Day and night on weekends if necessary to pass a revival plan within the next few weeks so that it can be ready for his signature just after he takes office on Jan. 20. As Obama spoke his advisers were on Capitol Hill to Brief democratic lawmakers on details of his plan. Senate finance committee members met privately to assess his proposals. The Senate democratic caucus planned a late afternoon meeting. Obama cast blame on an Era of profound irresponsibility that stretched from corporate boardrooms to the Halls of Power in Washington. But he added the very fact that this crisis is largely of our own making Means that it is not beyond our ability to solve. I dont believe its too late to change course but it will be if we dont take dramatic action As soon As possible Obama said. He Laid out goals of doubling the production of alternative Energy Over three years updating most Federal buildings to improve Energy efficiency making medical records electronic expanding broadband networks and updating schools and universities. Its a plan that represents not just new policy but a whole new approach to meeting our most urgent challenges Obama said. Still his remarks shed no new Light on the details of his plan that could Cost As much As us 775 billion Over two years in tax cuts and spending. And he said Little about the unprecedented red Ink and rising debt confronting the government even after saying that he is committed to tackling Long term deficits after the Economy rebounds. The speech marked of amass highest profile Effort yet on an Issue certain to dominate his Early presidency. It was the fourth Day in a Row that he had made a pitch for a huge infusion of taxpayer dollars to revive the sinking Economy he will inherit from Bush. Obama painted a Stark picture including double digit unemployment and $ 1 trillion in lost economic activity. The associated press Ottawa company pensions funds have fallen so deeply into deficit that the eroded benefits some plans would now provide could prompt older workers to Shelve their retirement plans in some cases also eroding their motivation to the Point where they in effect retire on the Job. That warning came thursday in one of two reports on the deterioration in the health of employer pension funds. Members of defined Benefit plans which Promise a set level of benefits at retirement will be at risk Only if the company does not survive Long enough to fully fund the plan a report by consulting firm Watson Wyatt worldwide said. However the pensions of workers in defined contribution plans where the benefits Are based on the returns earned by the fund and where employers Are not responsible for making up any shortfall dont have that Security. And those funds suffered a 10 to 20 per cent loss last year the report noted. As defined contribution plan participants watch their account balances fall their anxiety Levels Are Likely to Rise said Dan Morrison a senior retirement consultant with Watson Wyatt in Calgary. And with investment losses making retirement less affordable expected retirements May be deferred or worse yet employees May retire on the Job struggling to be productive and engaged. In some physically demanding jobs the ability of workers to function could be compromised but in a broader sense there is also the risk of a loss of motivation among workers who had to abandon their plan to retire due to the erosion in their pension fund. So they stay on not because they want to work but because they have to and Are putting in their time and Are not actually being productive for their employer he said. Meanwhile the typical defined Benefit pension plan where employers have to make up any shortfall had just 69 per cent of the assets needed to cover their liabilities a record Low the report noted. Can West news service new York prosecutors said thursday that investigators found 100 signed cheques Worth $ 173 million in Bernard mad offs office desk that he was ready to Send out to his closest family and friends at the time of his arrest last month in what is alleged to be largest financial fraud in history. The information was provided in a court filing thursday As prosecutors argued that Madoff should have his bail revoked. They said the cheques were further evidence that he wants to keep his assets away from burned investors in a $ 50 billion fraud. In the filing assistant u. S. Attorney Marc Litt said Madoff cannot be trusted because he had Long engaged in a scheme that required the defendant to lie routinely to thousands of people and a scheme which has caused extraordinary damage to individuals families and institutions All Over the world. The judge was expected to Rule today or monday whether Madoff should be sent to jail or remain free on bail confined to his luxury Penthouse. The developments came As regulators in Britain opened an investigation into the British business operations of Madoff raising the Prospect that he could face charges there. The associated press cheques in mad offs desk key evidence Obama vows dramatic action on Economy $ 775 b scheme includes tax cuts by Jennifer Loven pension deficits postpone retirements by Eric Beauchesne Charles Dha Rapak / the associated press Obama pitched plan at University. A 11_ Jan 09 09. Ind a11 1/ 8/ 09 6 53 27 pm ;