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Secretary Henry M. Paulson, Jr. Remarks on the Economic Stimulus

Kansas City, Mo.–Thank you; it is great to be back in Kansas City. I have just come from one of Treasury’s bureaus here, the Financial Management Service Regional Financial Center, where they are printing the economic stimulus checks that will put money in the hands of American families and boost our economy this year. It’s fitting that I see this economic stimulus become a reality in Kansas City, because my visit here last December was among the events that convinced me that we needed to boost the U.S. economy, and do it early so it could make a difference in 2008.

In December, I was at the Bruce Watkins Cultural Heritage Center and Museum for a town hall meeting. I met with and heard from many homeowners about mortgage and other housing difficulties. They also talked of their concerns about the broader economy in Kansas City and Missouri. During that week, I also spent time in Florida and California, where I heard similar concerns. And when I got back to Washington, I talked to people in a variety of industries; I asked them what their business was telling them about where the economy was headed. My travels, my discussions with industry leaders and a review of the economic data with the rest of the President’s economic team convinced me in mid-December that the economy had taken a sharp turn for the worse and the risks were to the downside going forward.

The President recognized the downturn early, and took decisive action. At the beginning of January, President Bush told the nation we were considering an economic stimulus package. Congressional leaders also saw the weakening economy and the need for action. The President directed me to work with Congress to craft legislation that would put cash in the hands of American consumers and help American businesses invest and create jobs. And the President directed me to get this job done quickly, because we needed to bolster both consumer spending and business investment to protect the health of our economy.

And today, we are seeing that our action couldn’t have been more timely. We didn’t wait for the twenty-twenty hindsight of economic data to confirm a slow economy, we knew it was happening. And because we didn’t wait, the bipartisan stimulus package the President and the Congress enacted is injecting dollars into the economy now, when it can make a real difference.

It was a pleasure to work in a bipartisan spirit with House and Senate lea...

 Civil Procedure
NYC Not Protected by Limitation of Liability Act for Ferry Crash
In re City of New York, 522 F.3d 279 (C.A. 2, Mar. 27, 2008) 
On October 15, 2003 the Staten Island ferry crashed into a concrete maintenance pier, killing eleven passengers and injuring another seventy-five passengers.  On the day of the wreck, Assistant Captain Richard Smith was operating the ferry, along with the help of a deckhand. The deckhand momentaril...  MORE>>


 Art / Ent. / Sports
Copyright Act Doesn't Preempt Fraud Claim Against Publisher
Bean v. McDougal Littell, 538 F.Supp.2d 1196 (D. Ariz, Mar. 6, 2008) 
Tom Bean, a professional photographer, created a photograph entitled “Ruins of Anasazi Granaries at Nankoweep above the Colorado River, Grand Canyon National Park” (“Photograph”). In 1998, Bean sold a limited license of the Photograph to textbook publisher McDougal Littel ("McDougal”), al...  MORE>>


 Civil Procedure
Former Fed Ex Employee's Defamation and Termination Claims Fail
Turner v. Federal Express Corp., 539 F.Supp.2d 404 (D.D.C., March 28, 2008) 
Evangeline Turner sued her former employer, Federal Express (“Fed Ex”), in state court for breach of contract, defamation and wrongful termination. Fed Ex removed the case to federal court and moved to dismiss.

Turner was discharged after she denied being involved in an accident with her Fed...  MORE>>



 Art / Ent. / Sports
The Doors Founder Disputes Coverage Denial
Manzarek v. St. Paul Fire & Marine Ins. Co., 519 F.3d 1025 (C.A. 9, Mar. 25, 2008) 
Raymond Manzarek was a founding member of The Doors rock group. Manzarek and Doors Touring, Inc (DTI) were sued in state court in two trademark cases brought by John Densmore, former drummer of The Doors, and family members of former vocalist Jim Morrison. The trademark suits alleged that Manzarek...  MORE>>


 Civil Procedure
Fifth Circuit Applies Texas Economic Loss Rule
Memorial Hermann Healthcare System, Inc. v. Eurocopter Deutschland, GMBH, --- F.3d ---, 2008 WL 1113339 (C.A. 5, Apr. 11, 2008) 
Memorial Hermann Healthcare Systems, Inc. (“Memorial”) purchased a Eurocopter BK 117 from the manufacturer, Eurocopter Deutschland (“Euro”). On July 14, 2005, the helicopter was damaged when one of its doors separated and hit the rotor blades. Memorial filed suit against Euro for post-sale...  MORE>>


 Civil Procedure
First Circuit Rejects Falun Gong Persecution Claim
Lin v. Mukasey, 521 F.3d 22 (C.A. 1, Mar. 26, 2008) 
Qun Lin, a Chinese citizen, applied for asylum, withholding of removal, and relief under the Convention Against Torture (“CAT”), alleging mistreatment by the Chinese government as a result of his practice of Falun Gong. Following a hearing, an Immigration Judge (“IJ”) found Lin’s testimon...  MORE>>


 Conflict of Laws
Freight Broker May Withhold Payment to Cover Missing Cargo
REI Transport, Inc. v. C. H. Robinson Worldwide, Inc., 519 F.3d 693 (C.A. 7, Mar. 20, 2008) 
Circuit City hired C.H. Robinson Worldwide, Inc. (“Robinson”), a freight broker, to coordinate a shipment of electronics from a warehouse in California to one in Illinois. Robinson contracted with three carriers to each provide a leg of the trip. Before the cargo left the Circuit City warehous...  MORE>>


 Tradename/Trademark
Walocaust and Wal-Qaeda Don't Infringe Wal-Mart Trademarks
Smith v. Wal-Mart Stores, Inc., 537 F.Supp. 1302 (N.D. Ga., Mar. 20, 2008) 
The retail behemoth Wal-Mart Stores, Inc. holds registered trademarks for multiple variations on its name WAL-MART, as well as a yellow “smiley face” mark and the mark “ALWAYS LOW PRICES. ALWAYS.” Wal-Mart has continuously used its well-known WAL-MART trademarks and service marks in the Uni...  MORE>>


 Civil Procedure
Illinois Governor Sues Secretary of Defense Over Base Issue
Blagojevich v. Gates, 519 F.3d 370 (C.A. 7, Mar. 11, 2008) 
The Governor of Illinois challenged a decision by the Secretary of Defense to move planes from a National Guard base in Illinois to one in Indiana, arguing that it violated the requirement that “no change in the branch, organization, or allotment of a unit [of the National Guard] located entirely ...  MORE>>


 Civil Remedies
Veteran Must Exhaust Administrative Remedies
Jackson v. United States, 80 Fed.Cl. 560 (Fed.Cl., Feb. 27, 2008) 
Mark Jackson, a veteran, brought suit against the United States in the Court of Federal Claims asserting demands for social security disability benefits and veterans’ disability benefits. The United States filed a Motion to Dismiss for lack of subject matter jurisdiction over both claims.

Ja...  MORE>>


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