Tuesday, September 23, 2008
FAST, CHEAP AND OUT OF CONTROL - September 23, 2008 08:31 AM EDT
Baby J: http://ap.google.com/article/ALeqM5ioHc80xKMiATnqCpK0cDKJzk_nPQD93CI7EO0
Ha, ha, ha. Your link leads to a story with this title:
Bernanke: Recession more likely without bailout
If it weren't for all the cooked data we would clearly know we ARE in a recession. We will know for sure in a year or so.
Baby J: "I do believe that if congress fails to act on the bailout there will be a severe tightening of credit."
Dude: They are trying this bailout because there IS a credit crunch! And the bailout will make it worse. Why, you ask? Well, unless Ben & Hank are THE BROTHERS GRIMM, they can't just... you know, make up money out of nothing. Which means it has to be borrowed, which will increase the credit crunch, which will make it harder to borrow money, which will increase the credit crunch, which...
You catch my drift? You fetch my meanin?
Part of the problem with this bailout is not knowing the value of all the "assets" owned by the companies in question.
Will the final legislation for entry to this system be as difficult as applying for food stamps or unemployment benefits? Or, the last time you were unemployed, did you waltz in and pick up a sack of money
food stamps: http://www.ehow.com/how_12689_apply-food-stamps.html
unemployment benefits: http://www.google.com/search?hl=en&safe=off&q=%22how+to+apply+for+unemployment+benefits%22&btnG=Search
Shouldn't these welfare queens with their cadillacs be required to open their books to the public--or a regulatory agency, at the very least?
http://en.wikipedia.org/wiki/Welfare_queen
Paulson compensation: http://money.cnn.com/2006/05/30/news/economy/snow_replacement/index.htm
bailout tipline: http://bigpicture.typepad.com/comments/2008/09/house-oversight.html
John Kerry as Prez comments...
Sen. Obama is saying his spending programs may have to be delayed in light of the massive bailout bill. A few questions though, What about McCain's high income tax cuts that would go to the CEOs who created the mess? Any word on that? Still full speed ahead on that? Second, as we've discussed, if the Treasury bought these junk securities at real market rates and then held them until the market stabilized they could likely make money for the taxpayer. But that's the key, if they pay fair market rates very little money would go to the banks who are looking for their bailout and free ride back on to the gravy train. So that's an unresolved question. And remember, if Obama wins, his Treasury Dept. would be administering a lot of this. So are they planning to pay premium prices for the worthless or near worthless paper the banks are trying to dump on the public (in order to recapitalize the banks at public expense)?
--Josh Marshall
The guy John McCain has chosen to manage his presidential transition was lobbying for Freddie Mac until this month.
http://www.bloomberg.com/apps/news?pid=20601070&sid=aQIOOr9klOnE&refer=politics
McCain: Keating Five
http://talkingpointsmemo.com/archives/218903.php
McCain Plan: I think Kos, Digby and Kilgore have this about right. The Republican/McCain plan is to get the Democrats to bail out the GOP's Wall Street friends and then run against them for doing it.
http://talkingpointsmemo.com/archives/218880.php
The basic premise of the bailout need is that credit markets are near freezing up. But the money to solve the "freeze" will be borrowed. So how can all that money be borrowed if the credit markets are frozen?
http://talkingpointsmemo.com/archives/219065.php
pig in a poke
http://en.wikipedia.org/wiki/Pig_in_a_poke
Send me some money and I'll immediately apply to this program for both of us:
SUBJECT: REQUEST FOR URGENT BUSINESS RELATIONSHIP
DEAR AMERICAN:
I NEED TO ASK YOU TO SUPPORT AN URGENT SECRET BUSINESS RELATIONSHIP WITH A TRANSFER OF FUNDS OF GREAT MAGNITUDE.
I AM MINISTRY OF THE TREASURY OF THE REPUBLIC OF AMERICA. MY COUNTRY HAS HAD CRISIS THAT HAS CAUSED THE NEED FOR LARGE TRANSFER OF FUNDS OF 800 BILLION DOLLARS US. IF YOU WOULD ASSIST ME IN THIS TRANSFER, IT WOULD BE MOST PROFITABLE TO YOU.
I AM WORKING WITH MR. PHIL GRAM, LOBBYIST FOR UBS, WHO WILL BE MY REPLACEMENT AS MINISTRY OF THE TREASURY IN JANUARY. AS A SENATOR, YOU MAY KNOW HIM AS THE LEADER OF THE AMERICAN BANKING DEREGULATION MOVEMENT IN THE 1990S. THIS TRANSACTIN IS 100% SAFE.
THIS IS A MATTER OF GREAT URGENCY. WE NEED A BLANK CHECK. WE NEED THE FUNDS AS QUICKLY AS POSSIBLE. WE CANNOT DIRECTLY TRANSFER THESE FUNDS IN THE NAMES OF OUR CLOSE FRIENDS BECAUSE WE ARE CONSTANTLY UNDER SURVEILLANCE. MY FAMILY LAWYER ADVISED ME THAT I SHOULD LOOK FOR A RELIABLE AND TRUSTWORTHY PERSON WHO WILL ACT AS A NEXT OF KIN SO THE FUNDS CAN BE TRANSFERRED.
PLEASE REPLY WITH ALL OF YOUR BANK ACCOUNT, IRA AND COLLEGE FUND ACCOUNT NUMBERS AND THOSE OF YOUR CHILDREN AND GRANDCHILDREN TO WALLSTREETBAILOUT@TREASURY.GOV SO THAT WE MAY TRANSFER YOUR COMMISSION FOR THIS TRANSACTION. AFTER I RECEIVE THAT INFORMATION, I WILL RESPOND WITH DETAILED INFORMATION ABOUT SAFEGUARDS THAT WILL BE USED TO PROTECT THE FUNDS.
YOURS FAITHFULLY MINISTER OF TREASURY PAULSON
New name for the bailout plan: Securitized Hybrid Investment Trust
http://bigpicture.typepad.com/comments/2008/09/securitized-hyb.html
credit counseling for CEOs?
http://en.wikipedia.org/wiki/The_Communist_Manifesto
5. You have said that "The Housing correction is the root cause of market stability." What about leverage -- how significant was that as a root cause?
8. In 2004, your former firm, Goldman Sachs, along with 4 other brokers, received a waiver of the net capitalization rules, allowing these firms to dramatically exceed the 12-to-1 leverage rules. How much was this waiver responsible for the current situation? Up to 30 +.
11. How significant are derivatives and credit default swaps to the current crisis? Why weren't they regulated the way other insurance products are?
Don't forget the credit rating agencies' complicity in the debacle.
wmd: http://www.marginalrevolution.com/photos/uncategorized/2008/09/21/paulsonpp_5.png
GWB on minority home ownership: http://www.whitehouse.gov/news/releases/2002/10/20021015-7.html#
2004 Republican Convention boasting about increasing minority ownership: http://www.villagevoice.com/2004-08-31/news/passionate-conservatism/2
2/24/2004: Greenspan says ARMs might be better deal: http://www.usatoday.com/money/economy/fed/2004-02-23-greenspan-debt_x.htm
A REAL Democrat: http://digbysblog.blogspot.com/2008/09/wow-by-tristero-mary-kaptur-sounds-like.html
Dodd bill: http://www.scribd.com/doc/6165093/Dodd-Financial-Rescue-Mark
Dec 14, 2000: As Congress heads for Christmas recess, Sen. Gramm attaches 262-page amendment to an omnibus appropriations bill. Commodity Futures Modernization Act will deregulate derivatives trading, give rise to Enron debacle, and open door to an explosion in new, unregulated securities.
May 6, 2001: FTC sues Citigroup and its subsidiary Associates, nation's 2nd-largest subprime originator, charging "systematic abusive lending practices" involving 2 million borrowers; 18 months later Citigroup settles $215 million.
April 22, 2002: Georgia's new anti-predatory law signed; Ameriquest helps lead campaign against it and announces that it won't do business in Georgia until law is changed. Standard & Poor's refuses to rate Georgia mortgage securities, choking credit supply to state's home buyers; law gutted within a year.
Those are just a few quick examples debunking the myth that lenders were innocent angels hornswaggled by devious borrowers.
Ha, ha, ha. Your link leads to a story with this title:
Bernanke: Recession more likely without bailout
If it weren't for all the cooked data we would clearly know we ARE in a recession. We will know for sure in a year or so.
Baby J: "I do believe that if congress fails to act on the bailout there will be a severe tightening of credit."
Dude: They are trying this bailout because there IS a credit crunch! And the bailout will make it worse. Why, you ask? Well, unless Ben & Hank are THE BROTHERS GRIMM, they can't just... you know, make up money out of nothing. Which means it has to be borrowed, which will increase the credit crunch, which will make it harder to borrow money, which will increase the credit crunch, which...
You catch my drift? You fetch my meanin?
Part of the problem with this bailout is not knowing the value of all the "assets" owned by the companies in question.
Will the final legislation for entry to this system be as difficult as applying for food stamps or unemployment benefits? Or, the last time you were unemployed, did you waltz in and pick up a sack of money
food stamps: http://www.ehow.com/how_12689_apply-food-stamps.html
unemployment benefits: http://www.google.com/search?hl=en&safe=off&q=%22how+to+apply+for+unemployment+benefits%22&btnG=Search
Shouldn't these welfare queens with their cadillacs be required to open their books to the public--or a regulatory agency, at the very least?
http://en.wikipedia.org/wiki/Welfare_queen
Paulson compensation: http://money.cnn.com/2006/05/30/news/economy/snow_replacement/index.htm
bailout tipline: http://bigpicture.typepad.com/comments/2008/09/house-oversight.html
John Kerry as Prez comments...
Sen. Obama is saying his spending programs may have to be delayed in light of the massive bailout bill. A few questions though, What about McCain's high income tax cuts that would go to the CEOs who created the mess? Any word on that? Still full speed ahead on that? Second, as we've discussed, if the Treasury bought these junk securities at real market rates and then held them until the market stabilized they could likely make money for the taxpayer. But that's the key, if they pay fair market rates very little money would go to the banks who are looking for their bailout and free ride back on to the gravy train. So that's an unresolved question. And remember, if Obama wins, his Treasury Dept. would be administering a lot of this. So are they planning to pay premium prices for the worthless or near worthless paper the banks are trying to dump on the public (in order to recapitalize the banks at public expense)?
--Josh Marshall
The guy John McCain has chosen to manage his presidential transition was lobbying for Freddie Mac until this month.
http://www.bloomberg.com/apps/news?pid=20601070&sid=aQIOOr9klOnE&refer=politics
McCain: Keating Five
http://talkingpointsmemo.com/archives/218903.php
McCain Plan: I think Kos, Digby and Kilgore have this about right. The Republican/McCain plan is to get the Democrats to bail out the GOP's Wall Street friends and then run against them for doing it.
http://talkingpointsmemo.com/archives/218880.php
The basic premise of the bailout need is that credit markets are near freezing up. But the money to solve the "freeze" will be borrowed. So how can all that money be borrowed if the credit markets are frozen?
http://talkingpointsmemo.com/archives/219065.php
pig in a poke
http://en.wikipedia.org/wiki/Pig_in_a_poke
Send me some money and I'll immediately apply to this program for both of us:
SUBJECT: REQUEST FOR URGENT BUSINESS RELATIONSHIP
DEAR AMERICAN:
I NEED TO ASK YOU TO SUPPORT AN URGENT SECRET BUSINESS RELATIONSHIP WITH A TRANSFER OF FUNDS OF GREAT MAGNITUDE.
I AM MINISTRY OF THE TREASURY OF THE REPUBLIC OF AMERICA. MY COUNTRY HAS HAD CRISIS THAT HAS CAUSED THE NEED FOR LARGE TRANSFER OF FUNDS OF 800 BILLION DOLLARS US. IF YOU WOULD ASSIST ME IN THIS TRANSFER, IT WOULD BE MOST PROFITABLE TO YOU.
I AM WORKING WITH MR. PHIL GRAM, LOBBYIST FOR UBS, WHO WILL BE MY REPLACEMENT AS MINISTRY OF THE TREASURY IN JANUARY. AS A SENATOR, YOU MAY KNOW HIM AS THE LEADER OF THE AMERICAN BANKING DEREGULATION MOVEMENT IN THE 1990S. THIS TRANSACTIN IS 100% SAFE.
THIS IS A MATTER OF GREAT URGENCY. WE NEED A BLANK CHECK. WE NEED THE FUNDS AS QUICKLY AS POSSIBLE. WE CANNOT DIRECTLY TRANSFER THESE FUNDS IN THE NAMES OF OUR CLOSE FRIENDS BECAUSE WE ARE CONSTANTLY UNDER SURVEILLANCE. MY FAMILY LAWYER ADVISED ME THAT I SHOULD LOOK FOR A RELIABLE AND TRUSTWORTHY PERSON WHO WILL ACT AS A NEXT OF KIN SO THE FUNDS CAN BE TRANSFERRED.
PLEASE REPLY WITH ALL OF YOUR BANK ACCOUNT, IRA AND COLLEGE FUND ACCOUNT NUMBERS AND THOSE OF YOUR CHILDREN AND GRANDCHILDREN TO WALLSTREETBAILOUT@TREASURY.GOV SO THAT WE MAY TRANSFER YOUR COMMISSION FOR THIS TRANSACTION. AFTER I RECEIVE THAT INFORMATION, I WILL RESPOND WITH DETAILED INFORMATION ABOUT SAFEGUARDS THAT WILL BE USED TO PROTECT THE FUNDS.
YOURS FAITHFULLY MINISTER OF TREASURY PAULSON
New name for the bailout plan: Securitized Hybrid Investment Trust
http://bigpicture.typepad.com/comments/2008/09/securitized-hyb.html
credit counseling for CEOs?
http://en.wikipedia.org/wiki/The_Communist_Manifesto
5. You have said that "The Housing correction is the root cause of market stability." What about leverage -- how significant was that as a root cause?
8. In 2004, your former firm, Goldman Sachs, along with 4 other brokers, received a waiver of the net capitalization rules, allowing these firms to dramatically exceed the 12-to-1 leverage rules. How much was this waiver responsible for the current situation? Up to 30 +.
11. How significant are derivatives and credit default swaps to the current crisis? Why weren't they regulated the way other insurance products are?
Don't forget the credit rating agencies' complicity in the debacle.
wmd: http://www.marginalrevolution.com/photos/uncategorized/2008/09/21/paulsonpp_5.png
GWB on minority home ownership: http://www.whitehouse.gov/news/releases/2002/10/20021015-7.html#
2004 Republican Convention boasting about increasing minority ownership: http://www.villagevoice.com/2004-08-31/news/passionate-conservatism/2
2/24/2004: Greenspan says ARMs might be better deal: http://www.usatoday.com/money/economy/fed/2004-02-23-greenspan-debt_x.htm
A REAL Democrat: http://digbysblog.blogspot.com/2008/09/wow-by-tristero-mary-kaptur-sounds-like.html
Dodd bill: http://www.scribd.com/doc/6165093/Dodd-Financial-Rescue-Mark
Dec 14, 2000: As Congress heads for Christmas recess, Sen. Gramm attaches 262-page amendment to an omnibus appropriations bill. Commodity Futures Modernization Act will deregulate derivatives trading, give rise to Enron debacle, and open door to an explosion in new, unregulated securities.
May 6, 2001: FTC sues Citigroup and its subsidiary Associates, nation's 2nd-largest subprime originator, charging "systematic abusive lending practices" involving 2 million borrowers; 18 months later Citigroup settles $215 million.
April 22, 2002: Georgia's new anti-predatory law signed; Ameriquest helps lead campaign against it and announces that it won't do business in Georgia until law is changed. Standard & Poor's refuses to rate Georgia mortgage securities, choking credit supply to state's home buyers; law gutted within a year.
Those are just a few quick examples debunking the myth that lenders were innocent angels hornswaggled by devious borrowers.
# posted by ADL : 8:36 PM
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