The Ever-Expanding Ponzi Scheme
The institutional collusion between mortgage lenders like Countrywide and “failed” insurance behemoth, AIG (which if you ask its well-compensated executives, has actually succeeded quite spectacularly–for them,) has never been a closely-guarded secret. After all, the whole housing bubble was one giant insurance scam designed by Wall Street and abetted by an unwitting American public. To say that “no one could have known” that lending vast amounts of money to people with no conceivable hope of ever paying it back might turn out badly, is quite simply, a lie. WE all knew what a mess they were making; how could the very people defining and manipulating the process NOT have “seen it coming?” Let alone made elaborate plans to profit from its inevitable collapse?
All those about–to-foreclose mortgages were backed by derivative (up to 27-1,) credit default swaps, and a whole lot of folks got obscenely rich for a couple of years by leveraging them against the ever-expanding Ponzi scheme unfolding in the housing, foreign exchange, and commodities markets.
And if the foundation of that scheme should start to crumble? Why, that’s why AIG was there to make them whole again. Mark-to-market. 100 cents on the dollar. At worst, they thought, that toxic exposure will be bought up by Credit Suisse, or spun off to Lehmans…. Then Lehman Brothers failed, and that’s when the banksters really went to town.
The big question these days seems to be “Why didn’t Geithner, knowing that AIG’s counter parties were at his mercy, at least try to negotiate with them before the government stepped in and guaranteed the losses?” When you’re holding all the cards, you don’t have to be Mr. Nice Guy. And having paddled in this pond for most of his career, surely Geithner knew that he was in a position to garner a better deal for those of us average Joes who would actually be paying for this bailout? Instead, he rolled over for his erstwhile masters at Goldman Sachs and the Federal Reserve. Why all the secrecy about who got what? Just who is this guy protecting?
We may be about to find out. Thanks to the dogged efforts of Congressman Darrell Issa (R-CA) of the House Committee for Oversight and Government Reform, AIG’s true function as an international money laundering fund may finally come to light—as will all those 100% payoffs to its numerous shadowy counterparty risks. Should Issa’s efforts be successful, expect to see some of those heretofore undisclosed “risks” turn out to be sovereign wealth funds, an oligarchy or two, the Forex investment fund of a large Asian manufacturing base, and such notable private parties as former senior members of a past presidential administration. Given some of these entities’ ties to private security concerns—who also profited directly or indirectly from the bailouts—it’s no wonder Geithner, Bernanke, Paulson et al have been stonewalling the Committee for so long.
The cat and mouse game between Issa and the Fed has been going on since Issa first questioned Hank Paulson’s sudden announcement—two weeks before Geithner tried to take over the problem of the credit default swaps—that money was being loaned to the nine largest US banks, whether they wanted it or not. On October 13, 2008, Paulson informed these banks that they must take $125 billion in government funds he was offering. No accountability required.
Around this time, Goldman Sachs, which received $85 billion in taxpayer subsidies, let it be known that they had adequately hedged their firm against counterparty risk. This counterparty risk was essentially a series of margin calls by a London-based AIG subsidiary that had been set up specifically to offload AIG’s toxic mortgage “assets” during the subprime meltdown. As demand for MBS’s declined, the margin calls increased and AIG was unable to come up with the collateral. Bail-out time.
What Goldman wasn’t telling people was that they had also purchased credit default swap insurance on AIG’s going under. The Fed, in buying up that paper as well, (at 100%,) essentially made good on both eventualities for GS—another $12.9 billion handout courtesy of the American Taxpayer.
This didn’t set well with a certain segment of the electorate, and Issa kept plugging away trying to get some answers about who might have had a hand in this chicanery, and who was trying so hard to keep it quiet. After all, firms which had received TARP funds had indirectly been funneled some $100 billion more through AIG counterparty payouts, receiving full value for their derivatives contracts—with taxpayers picking up the tab.
Recently, a series of incriminating emails from Ben Bernanke’s office surfaced, seemingly implicating the Fed chair in efforts to cram through the AIG bailout over his staff’s objections. More letters were exchanged with the good Congressman.
After counsel for the Fed informed Issa on January 8, 2010, that his questions about their handling of the AIG bailout “didn’t warrant (Geithner’s) attention,” Issa upped the ante. In a semi-open letter to Oversight Committee Chairman Edolphus Towns, Issa all-but called for Timothy Geithner’s head on a platter…with Bernanke’s served as a garnish (PDF). “I am writing to request that you issue a subpoena to the Federal Reserve for these documents as soon as possible.”
So far AIG has received in excess of $152,000,000,000 from once and future taxpayers, (more than the stimulus funds given all fifty United States combined) with no accountability to any of us. The parties responsible for this largesse have steadfastly refused to disclose to Congress where all that money ended up—and likely for good reason. Just as the 911 Commission Report was heavily redacted to hide all references to BushCheneys’ personal financial ties to Saudi Arabian oil interests, so likely are the Fed’s records of the TARP/EESA funds final destinations.
Now, I don’t know about you, but I’m certainly not seeing a lot of that money up here in my neck of the woods. And other than a few unnecessary highway patch-up gigs, I’m not seeing it anywhere in the county. Yet AIG just gave out another $100 million in bonuses, and has spent (presumably,) millions more to retain snotty attorneys to tell inquiring Congressmen to go pound sand.
Wouldn’t it be fun to turn on CSPAN one morning and hear our newly- subpoenaed officials saying, “Well, Darrell, we gave Citigroup $25 Billion and then they gave $8 billion of that to DubaiWorld…which as you may recall, recently defaulted (read: absconded with it,) sticking American taxpayers with Mr. Cheney’s rounding errors. Again.”
Or, “Well, Congressman, you remember that $132 billion in Kennedy bonds (documents accessible only by high-ranking US Treasury officials) that those two Japanese mobsters were caught trying to “smuggle” over the Italian-Swiss border two days before Tim Geithner arrived for the World Economic Summit in Beijing? Uh, me neither….”
Or, “You do realize, Mr. Issa, that AIG was basically comprised of the average Chinese citizen’s life savings, don’t you? And that those savings are pegged to the USD? That would be our Treasury?”
Or, “Ever heard of Takaful (sharia,) Insurance Plans? The fundamentalist Islamic AIG counter party? No? Good.”
Or, “So why shouldn’t Citibank be able to borrow from the Fed at a taxpayer-subsidized 0% and lend it back to them at 25% interest on their credit cards? It’s a free market….”
Given the delicate nature of some these inconvenient coincidences, Mr. Issa may be a long time picking away at the Fed’s ramparts. But like that other Grand Inquisitor, Henry Waxman (D-CA) he seems determined to get at the truth—no matter whose backyard it leads into.
A list of TARP fund recipients.
To egg Congressman Issa on.
by Allena Hansen
Hmmm - and GS is a huge democrat political donor…
Top All-Time Donors, 1989-2010 (Top 20)
http://www.opensecrets.org/orgs/list.php?order=A
1 AT&T Inc $44,214,960 44% 55%
2 American Fedn of State, County & Municipal Employees $41,941,811 98% 1%
3 National Assn of Realtors $35,595,518 48% 51%
4 Goldman Sachs $31,437,825 64% 35%
5 American Assn for Justice $31,424,029 90% 9%
6 Intl Brotherhood of Electrical Workers $31,407,507 97% 2%
7 National Education Assn $30,097,067 92% 6%
8 Laborers Union $28,978,400 92% 7%
9 Service Employees International Union $27,933,232 95% 3%
10 Carpenters & Joiners Union $27,767,683 89% 10%
11 Teamsters Union $27,728,124 92% 6%
12 Citigroup Inc $27,101,058 50% 49%
13 Communications Workers of America $27,025,396 99% 0%
14 American Federation of Teachers $26,282,491 98% 0%
15 American Medical Assn $26,282,446 39% 60%
16 United Auto Workers $25,774,502 98% 0%
17 Machinists & Aerospace Workers Union $25,105,777 98% 0%
18 National Auto Dealers Assn $24,344,808 32% 67%
19 United Parcel Service $24,183,691 36% 63%
20 United Food & Commercial Workers Union $24,123,333 98% 1%
And the PTB wonder why the fastest growing form of political affiliation is Independent. Matter of fact, Obama recently acknowledged this trend. (Which prompted a loud cheer from Slim, who’s been a registered Independent for almost 20 years.)
NAR and GS. What a combo.
I think in fairness you should put a list of republican donors as well.
Probably find Citi and NAR as major donors there as well.
I think the excitement of Obama took away from the fact the guy had no plan what so ever. Just hope.
Can’t believe people on this board got sold “hope” as a strategy.
Can’t believe people thought this guy was an outsider. He is, like Clinton was, an elietist wannabe.
How many voters were sold on hope and how many were simply averse to the McCain-Palin ticket? Especially when McCain admits to being weak on economics in the middle of a financial meltdown.
I agree; as much as I’m not an Obama fan, I just cringed at McCain many times during the debates and publicity leading up to the election. His lame attempts at humor and admitted complete lack of grasp of the economic situation were appalling. Especially when he more or less offered to bail out every FB in the country.
Agree. Then, when he brough Palin on board, it just reeked of political desperation, and showed a lack of true professionalism. Once again, they were pandering to Joe Sixpack who wanted someone to drink beer with, instead of someone who could lead a nation. No way I could have voted for that.
Yeah, the old straw man that everyone who voted for Obama thought he was some special chosen one is a meme by and for the right. It’s interesting that the party of the religious right is so into calling him the ‘messiah’. Kind of like how some catholics are so into nun/priest jokes. Some perverse psychology at work.
McCain sold out everything he’d stood for, ran a terrible campaign, and made a ludicrous choice for VP. Obama wasn’t perfect, but he was and is the better choice.
I find interesting the authoritarians pretending to be Christians would blaspheme His name by referring to the president as Messiah.
It proves how shallow their faith really is.
McCain sold out everything he’d stood for, ran a terrible campaign, and made a ludicrous choice for VP. Obama wasn’t perfect, but he was and is the better choice.
Perfectly stated. I voted Republican for most of the last 40 years, but I could not vote for a ticket containing a fool like McCain and a moron like Palin.
Just to put this in context, nanerz, in 2008 GS contributed $1.1 million (via DNC) of the over $600M Obama raised for his Presidential campaign. What a bargain! Can’t hardly buy a Congressman for that much anymore….
BTW, Ben’s operating with reduced bandwidth today so responses may take a while to post.
“and abetted by an unwitting American public”
LOL! God, some of you just-won’t-let-it-go! Does the American public ( in general, I mean not ‘everyone’ but in general ) know where babies “come from”?
Or are these EMB rants designed to annoy and “break down” just the handful that haven’t relented to ‘full’ submission? Since I’ve already been read the riot act on this Thread That Never Ends do I get a ‘by’ on it this time? TIA.
Believe it or not, DinOR, the majority of American voters/house buyers have no idea what AIG even is, let alone its role in colluding with international hedge funds to strip them of their finances. This piece sang the praises of arch-conservative, Darrell Issa, and urged readers to contact him in support of his efforts.
Eat some prunes Then learn to read–or else use that little scroll button there to the right on your keyboard.
Sheesh.
Yes, only bubble bloggers have a clue as to what AIG is/does/did. Our re-education is complete!
Of course in order for all your far flung theories to ‘work’ it all has to be predicated on a -completely- innocent American public. It’s why you always take pains and make a point to get it out there right out of the gate.
Can we assume for just a moment borrowers knew or had reason to suspect.., they might not be able to pay back even a fraction of those loans? AIG’s dirty, tell us something we don’t know?
When you throw something out there as simply food for thought, that’s one thing, but since you’re framing the debate.., one supposes you already have your prunes in a row? What’s the point, you’ve drawn your own conclusions before you even post it.
Eat some prunes …
I believe “dried plums” are now the preferred nomenclature, in an attempt to not scare off the under-75 demographic.
Nah you were never read the riot act.
Our fearless leader was just having an Angry White Man day.
That just can’t be so. All my more liberal friends keep talking about Bush/cheney and their ties to big business. They tell me it’s the Republicans that cater to Big Business, at the expense of the little guy, for contributions for legislative favoritism. The republicans, I am told, are corrupt for their big business buddies.
You must be wrong. Why would all organizations pander to democrat causes? I just can’t believe it. Tell me is isn’t so.
The empty skulled tea party racists are alive and well.
Enjoying the ride Nanners?
Obama got more support from Wall Street than McCain. And we’re surprised by bailouts for bonuses because….?
TARP happened before Obama. AIG bailout happened before Obama.
PS Obama has done absolutely nothing to take bankers to task for these crimes.
FYI - just looking through:
http://www.opensecrets.org
And I noticed:
Goldman Sachs, ALONE, contributed more to 0bama’s presidential campaign than McCain/Palin received from ALL of Wall Street.
“Goldman Sachs, ALONE, contributed more to 0bama’s presidential campaign”
Please add “The Democrats are the ones who care about the little guy” to the list of thoroughly disproven “cornerstones of conventional wisdom” such as:
1. Real Estate always goes up
2. It’s always better to own than to rent
3. Subprime is contained
4. The government can improve THIS situation
Thanks in advance,
cb
“Let alone made elaborate plans to profit from it’s inevitable collapse”
Why does that sound like a metal loudspeaker nailed to a pole in a makeshift camp blaring for the following personnel to report for “re-education”?
I can now fully relate to Capt. Willard.
This is dialectic logic! You either Hate someone or you Love someone! There is no in between. There are no fractions. You can’t go into space with fractions, what are you going to do? Land on 1/2.., 2/3rds?
You have become unhinged, Sir.
Love,
Manchurian Mum
Dearest.., it’s ‘your’ agenda, your statement, you defend it. Good to see you aren’t taking yourself ‘too’ seriously with all that responsibility of making sure we come away seeing things your way?
DinOR,
You are acting literally quite Borderline.
Blue Skye,
We -just- went through this ( sans twist ) not 4 days ago? No one here is even hinting AIG isn’t World Class Scumbags. Certainly not me.
But when you get led down this path where the only conclusion that can be drawn is that they “made elaborate plans” ( presumably years… in advance ) you’ll have to defer to someone that is already omniscient as to what their grand design was?
It’s my fault for not sitting this out for the umpteenth time. When’s enough enough on this one? Sorry.
DinOr- Your obsessive need to shout down every thread that assigns blame to anyone other than FBs does seem rather bizarre. I believe I’ve heard you admit that it took both the big boyz and the little guys to make the bubble- so why do you freak out every time we talk about the big boyz’ share of the blame? It doesn’t make sense to get so worked up about something that you yourself have agreed was part of the bubble. Why shouldn’t we discuss it? The big boyz being guilty of fraud doesn’t exonerate the little guys who committed it too. It’s not an either/or thing.
To paraphrase the old bull talking to the young bull: Let’s not get overexcited and just bust some of them. Let’s take our time, and bust them all. Big and small.
alpha-sloth,
I suppose firstly, I’d be tickled we were “busting” anyone at all? But, we’re not. And look, if you want to describe it as bordeline or unhinged ( cutesy Michelle M turn ‘about play btw ) or obsessive ALL-THE-WHILE millions upon millions of REIC fraudsters -walk-, then there’s not a damn thing I can do about it.
What’s easier, seeing David Crisp of Crisp & Cole fry in the chair, or endless flailing pretending we’re Woodward & Bernstein “taking this all the way to the top!” ?
We get it. All the b!tchin’ in the world isn’t going to put Paulsen, BB etc. behind bars, dismantle the Fed or change the way Wash. does business. It’s a total waste of energy. In the end, the part that fries me most is when we all act like this was carefully and completely orchestrated long in advance. I’ve worked… for IB’s, wirehouses and banks. These guys don’t typically think past the weekend.
When someone like John Thain says he really didn’t get what those derivatives were all about, or at least have them belatedly explained to him.., believe it. I’ve been at this long enough to recall a time when you were shunned for not trying to “out bear” the other posters here. We got through ‘that’ phase ( and we’ll get thru this one ) I just never imagined it would take as long as it has? IMHO.
DinOR,
With all due respect, when so many of us “on the outside” could clearly see what was going on, and knew exactly what the outcome would be, do you really believe that the people who **created the system** didn’t know what was going to happen?
Sorry, but that’s just not realistic.
If you saw how some people WERE trying to get in front of the credit/housing bubble, and how they were bulldozed right out of their positions, you’d know that every bit of this “crisis” was orchestrated.
Oh, and if you doubt that we knew what was going to happen, help yourself to our posts, circa 2005-2006. We couldn’t have been more precise about the eventual outcomes.
CA renter,
I think I’m starting to see a small part of the problem. When we make observations like ” **created the system** ” ( we’re obviously working off the basic premise there ‘was’ a “system” ) correct?
Well, what could possibly be more chaotic than we watched unfold? So Merrill, BofA ( who was endlessly tickled at the thought of acquiring them? ) GS, Bear, Lehaman were all “in on it”?
Again, just b/c a small ( and intrepid ) band of bloggers happened to stumble onto what ultimately played out, by no means is to imply it was 1) the only possible outcome… 2) devine or 3) foretold in the bible?
I mean right now, before spring trng. has even started, ball fans are already calculating why their team will prevail this season! ( For a few loyalists, it actually ‘will’ come true ) But it doesn’t mean they were by any means visionaries. Just loyal.
No one need remind me what took place here or other BB’s during 05/06, I was there and many comments were mine. Mostly I recall a general sense of fear and dread if our worst projections came to fruition. Point being, much, much of the damage was -already- done well prior to the ramp in CDS. In fact, they’re a response to all the irresponsible lending. We openly joked about LBS ( Lettuce Backed Securities )
So.., the TARP money allowed them to get what? Back to Sq. 1? Pay a bunch of bonuses they were planning on paying themselves ANYWAY!? Perma-tarnish their images forever..? Anyone that thinks I “get off” on this particularly unpleasant aspect of The Bubble, is just plain nuts. I never thought asking people to step outside of the Group Think, their assigned talking points and being objective about it ( if only for a minute ) was going to be ‘this’ uphill either?
DinOr- You can blow smoke with the best of them, I’ll give you that. What exactly is your point? The simple question you are asked is why should we never seek to assign blame to the big boyz? We’re still awaiting your simple answer.
DinOR,
What we described in the early years of this blog were not “guesses” nor divined from above. It was pure logic and common sense.
The people who ran Lehman Bros., BofA, GS, etc. are all far wealthier today than they were in 2001; and that is what you need to understand. Even with all the “failures,” they are all wealthier, and many of them continue to get bonuses today that will be many times more than most of us will see in a lifetime.
This is why the “big boys” need to be held more accountable than J6. Yes, the “big boys” designed the system. Yes, they were paid extraordinary amounts of money because of their so-called “talent.” Other people went along with what they said because they were supposed to be the experts.
When you have that kind of compensation, there needs to be accountability.
J6 is not absolved of any guilt, and this is exactly why they should be foreclosed on and their credit reports should reflect their poor choices. Still J6 is not in charge of the system. He is not in a position (according to our society) to question what “the experts” are doing. J6 is made to feel that he is a crazy loser if he questions authority (just ask those of us who chose to rent — and were trying to warn others — during the bubble).
J6 is responsible for what he controls: his own decisions and his own finances. The “big boys” are responsible for what they control: the entire financial system.
Big difference.
Even with all the “failures,” they are all wealthier, and many of them continue to get bonuses today that will be many times more than most of us will see in a lifetime.
When you have that kind of compensation, there needs to be accountability.
I agree. Follow the money. Much of leads to the “talent” that did a number on us.
alpha-sloth,
Huh? It’s not ‘my’ point to make, and I’m not in Deposition here am I? Sure feels that way. Look, I’m not up for “challenging someone’s belief system” but what else can I call it?
MY… original question was/should have been, uh… just when were all these Secret Accords signed? Well, o.k, absent ‘that’, what is The Society for This Was All Planned best ‘estimate’ for when they sat down w/ the Freemasons and worked all this out? 2007?
Beep. Already in full blown nose dive.
2004? ‘99, ‘97? These guys were all competitors! Hey, I’m not saying at some point, ( post-bust ) they didn’t compare notes and say.., well what has the Treas/NYSE/Fed said to you… guyz? I’m sure they did.
But this is a conspiracy theory that just needs to die. The competition to WRITE Credit Default Swaps was incredibly intense to “get the deal flow”. But now in retrospect we have all these Revisionists rushing in to fill the vacuum w/ our suppositions. And to ‘that’ I expect I never ‘will’ get an answer. You guys are so firm in your “beliefs” anyone that challenges is cast as a mbr. of the Square Earth Society.
Please add “The Democrats are the ones who care about the little guy” to the list of thoroughly disproven “cornerstones of conventional wisdom”…
OK, it was added by me about 15 years ago after being first considered 25 years ago which leads me to ponder:
If there is no party sticking up for the little guy now, why is it that those on the right don’t stick up more for the middle-class? Is it because of the noise of God, guns, gays, race, “free” markets and “lazy” Americans has so easily and cynically taken our eyes off the ball?
Why does the right not demand economic justice, higher tariffs, closed borders, investment in our manufacturing base, reduced outsourcing, bank regulation and a less corporate health-care delivery system? Come on guys, if there is no political party sticking up for us any more, then both sides need to come to each others aid.
If corporations, Wall Street, banks and the super-rich were on the receiving end of a very raw deal for over a generation I know I would be fighting on their side to restore balance.
There is NO balance anymore therefore it is crucial that the right find common ground with the left when it comes to justice, supporting the middle-class, the working poor and reigning in a corrupt system that is sucking the life out of our country.
Goldman Sachs, ALONE, contributed more to 0bama’s presidential campaign than McCain/Palin received from ALL of Wall Street.
I’m sure once it became clear Obama was the front runner, that became the case. However, as noted in opensecrets, GS also donated more to Bush in 2004, and probably in 2000 too (info not yet available for 2000 according to website). In fact, most of his top 20 contributors were from Wall Street.
Don’t be fooled, Wall Street will attempt to buy influence from whomever is in office…they have no other political agenda other than helping themselves. When Obama started talking about bank reforms after the Scott Brown victory, they put him on notice that they were going to be ‘buying Republican’.
Don’t be fooled, Wall Street will attempt to buy influence from whomever is in office…they have no other political agenda other than helping themselves.
Almost.
Wall Street (and many other entities) will attempt to buy influence from whomever, as long as that side presents a clear tactical advantage. Take a look at the banking sector, for example: contributions to both major parties were fairly even until ‘96, when contributions to the GOP skyrocketed. The gap has narrowed now that the Dems are in the majority, but bankers still prefer to give to the deregulation-lovin’ horse that brung ‘em. The philosophical/tactical advantage remains intact despite changes in power, as it does for, say, trial lawyers with their longstanding preference toward funding Dems.
Why should anyone be surprized that the gov’t tells you on thing but really knows another. Of course the fed knew that banks weren’t going to lend money, they also knew of the impending housing bubble way back when.
In Washington this very minute they pretty much know what is coming down the road, they just don’t want you and I to know ?
No one in government had any reason to stop the gravy train (in taxes) that the housing bubble was. They all used the excess revenue to increase their spending by often 100%.
‘No one in government had any reason to stop the gravy train’
But I thought one of the reasons we have government oversight is to check the profit-motivated corporations and see that the public interest is observed? Jeebus, if that function is held out there, but is in fact non-existent, we’d be better off without it. Sort of like thinking you have a life insurance policy when you don’t.
One of the drawbacks of life insurance is that it solely rewards those who were sufficiently lucky to survive the triggering event.
Previously in an episode of:
“Murder She Wrote” or “48 Hours Investigates”?
“…Honey I love you, but give me Park Ave.”
hey fiddy in a foedy-nine dodge
those lyrics also go to “Greeeeen Acres”.
Well, I’ve updated it in the event that Eva’s sister Zha Zha gets a part in the remake…a “studio” life insurance policy will surely be taken out by her husband Frédéric Prinz von Anhalt !
(To distract defectives, he elopes with Oct-O-Mom, and hires Monk to prove his innocence…)
Zha Zha Gabor has been married nine times. She was divorced seven times, and one marriage was annulled. Her husbands, in chronological order, are:
* Burhan Asaf Belge (1937 – 1941) (divorced)
* Conrad Hilton (April 10, 1942 – 1947) (divorced)
* George Sanders (April 2, 1949 – April 2, 1954) (divorced)
* Herbert Hutner (November 5, 1962 – March 3, 1966) (divorced)
* Joshua S. Cosden, Jr. (March 9, 1966 – October 18, 1967) (divorced)
* Jack Ryan (January 21, 1975 – August 24, 1976) (divorced)
* Michael O’Hara (August 27, 1976 – 1983) (divorced)
* Felipe de Alba (April 13, 1983 – April 14, 1983) (annulled)
* Frédéric Prinz von Anhalt (August 14, 1986 to present)
Why would anyone in government be willing to check profit motivation, when for all intents and purposes they have the same intentions?
It is all, in the end, about power and money.
Amen, SMF!
Privately funded campaigns beget privately owned government.
IN reference to the “Gravy train”, and in acknowlegment that GOVERNMENT also had a role in this mania and financial shenanigans, recall that in 2004, before the madness reached peak proportions (While a Bush was in the White house), and investigation was started concerning the “soundness” of FReddie Mac and Fannie Mae.
Has everyone forgotten?
Instead of the investigations going forward and trying to shut down the HUGE leverage that we being underwritten via an “implied” backstop by the Federal goverment, the Investigator was called on the Carpet by Maxine Waters.
Maxine said that “Franklin Raines was doing an excellent job in getting money to people who could least afford to buy houses” ( paraphrase, i don’t have the actual quote). Barney Frank said the GSE’s were in terrific financial condition and that this was all just theater by the Bush Administration to bring to light problems with the personal gravy train certain democrat congressional members.
The investigations were stopped. The gravy train continued because the GSE’s were the dumping ground of alot of the bad loans that had been originated by mortgage/banking firms.
Most of that crap Paper is now sitting at the Federal Reserve, waiting for the market to recover.
So, yes, there was an attempt by some more scrupulous members of the government trying to rein in some of the bad behaviour, but the Senators involved sought to kill the messenger.
It’s time to VOTE THEM OUT> This November.
And then what? Not saying we should not vote them out, but will there be candidates that aren’t just playing the same game and changing the names of the players?
That is all I see when looking at the options. R or D doesn’t seem to make a difference, they all are carrying around their big boxes of stupid.
I saw repeated questions of Geitnr about not paying 100 cents on the dollar. HE said that anything less thatn 100 cents would still have been a technical default by AIG, and incurred the end of the world.
I don’t buy it, but that’s his story and he seems to be sticking to it.
‘To say that “no one could have known” that lending vast amounts of money to people with no conceivable hope of ever paying it back might turn out badly, is quite simply, a lie. WE all knew what a mess they were making; how could the very people defining and manipulating the process NOT have “seen it coming?” Let alone made elaborate plans to profit from its inevitable collapse?’
Allena, I always enjoy your writing, but sure wish you wouldn’t sugar coat it so much…
Tee hee.
Wait until Issa tells his constituency that they bailed out Sharia fundamentalists. THAT should go over real well with the flag-on-the-SUV bunch in Oceanside….
the tea party movement (good or bad is debatable) is evidence enough to me that issa doesn’t have to tell anyone anything much less use islamic fundamentalism to insight the perceived “flag-on-the-SUV bunch’s” bigoted nature.
bailing out rich, republican, white, fat-cat banksters was more than enough to rabble the white racist electorate.
“…On April 5, 2007, Issa met with Syrian president Bashar Assad to discuss Middle East issues, one day after Assad met with House Speaker Nancy Pelosi. Pelosi’s visit brought strong criticism from Republicans, including President Shrub”
April 5: “Bad Nancy, Bad!”
April 6th: “Good boy Darrell, Good boy”
Let go, man.
Shrub, who? He’s defeated and almost forgotten, rightfully so.
Really? what’s this?
Bush billboard on I-35: “Miss me yet?”
By BOB VON STERNBERG, Star Tribune
Last update: February 9, 2010
“For the past two days, images of the billboard have raged virally across the Internet, with a Google search resulting in more than 100 million hits Tuesday.”
“It was put up by a group of small business owners — who want to stay anonymous –because…”
They’re getting lil’ Opie SBA subsidies…hehehehhheehehe
“Given the delicate nature of some these inconvenient coincidences, Mr. Issa may be a long time picking away at the Fed’s ramparts.”
Thank God for Congressman Issa.
“Thank God for Congressman Issa”
Well Mr. Bear, a suggestion: “…don’t dive head first into unknown waters.”
“Darrel Issa… is the richest member of the House and the second richest in all of the 111th Congress
His net worth is approximately $251 million, making him the wealthiest member of Congress”
When I meet him on the train platform in Oceanside, he smiled like the typical “TrueBeliever’s™” GOP New Twit young repubicans of the 1990’s
He also had that typical perfume of “ALL Persuasions” political cologne:
AKA: “Ambition & Power”
I’m trying to find out the best way to contribute to him (maybe even as a group, so we might have more sway? — fight fire with fire?).
Thoughts?
Sorry CA renter,
I’m out, my POV is that it’s a tool for “other” ambitious things…
Re: Japanese “mobsters.” Weren’t they actually employee’s of the Japanese Treasury department? And did the Italian government receive 40% of the total per their fine for money laundering?
Another excellent post which only underscores the manipulative and deceiving shell game known as “Wall Street.”
As for me, I’ve liquidated my WallsVegas market holdings and deposited that diminished amount in local credit unions and community banks to be loaned to local neighbors and businesses.
Not sure about this, Zeus; the media dropped the story like a hot potato. What is known is that both of the men arrested had Mark Rich-like (Madoff’s bagman,) pasts. Whether or not they were JT contractors remains to be seen, but there’s a whole lot to this story that doesn’t add up.
For a good discussion google: Strange inconsistencies behind 134.5 billion bond mystery.
“…As for me, I’ve liquidated my WallsVegas market holdings and deposited that diminished amount in local credit unions and community banks to be loaned to local neighbors and businesses.”
DIng! Ding! Ding! …Today’s winner: Zeus Matuze!
“Another excellent post which only underscores the manipulative and deceiving shell game known as “Wall Street.”
Wall St. = “TrueDeceiver’s ™”
(Guilty,… until PROVEN Innocent…Hwy’s still waiting for: EVIDENCE!)
With campaign money, sometimes you have to dig a little deeper. Money given early, well before a race is decided, probably provides more clues on which politician a contributor likes. Money given late may simply be a contributor hedging their bet so as to maintain access to the eventual winner.
For example, was the money from GS given to the Obama campaign early or late? If a lot of it was given late, it may simply been an acknowledgement that Obama would likely win and McCain lose and thus wanted access to the winner. If McCain was leading, the cash might have flowed the other way. When the Republicans held both houses of Congress, that’s where the money was flowing. With Democrats in charge, more of it’s flowing the other way.
I detest the way we largely fund political campaigns because it’s become little more than legalized bribery. Quibbling over the details is a waste of time. It’s not something we can just clean up a little or reform a little. The way we fund campaigns must fundamentally change. If we ever again want a political process that might work for ordinary Americans, the way we fund campaigns must change.
Totally agree, 100%, Greg!
Saw CEO of CTSH(outsourcing company) on CNBC couldn’t give a straight answer how many Americans they hired. He said 25 %, but failed to mention how many of the 25 % were H1-b
http://stockcharts.com/charts/gallery.html?s=ctsh
Another stock chart which looks like Apple and Amazon
http://stockcharts.com/charts/gallery.html?s=ctsh
“So why shouldn’t Citibank be able to borrow from the Fed at a taxpayer-subsidized 0% and lend it back to them at 25% interest on their credit cards? It’s a free market….”
wayyyyy to much risk in that line of business these days…they’ll take the lending it back to the taxpayer risk free at 4%.
Note to all trying to contact Rep. Issa’s office per Ms. Hansen’s suggestion. His office isn’t taking input from anyone outside district 49.
Here is the post I was unable to leave-
“Congrats on your efforts to shine light on the slithering parasites at AIG and Goldman Sachs and the shadow lords of the private cartel known as the Federal Reserve.
Audit the Fed now! As this private corp has virtually destroyed America’s trust of the financial system, heads will roll when…at the rate we’re going… the collapse happens.”
Any of his constituents are welcome to use it.
Send it to your Congressman and CC to Issa. Or better yet, call his office in DC. (202.225.3906) and thank them. They’re very friendly.
We have been had. And to think there are still average Joe’s out there unwilling to walk away from their Mortgage because its “imoral”
while the PTB make sure they don’t lose money on their investments just because AIG can’t make good on its insurance.
“…Joe’s out there unwilling to walk away from their Mortgage because its “immoral”
(Hwy stern look on his mug…striking his right index finger repeatedly over his pointing left index finger:)
Shame, Shame, Shame on you! Go to your room!, oh, wait…
I smell central bank printing presses running on high blast in every corner of the developed world…
Equities, Euro, Commodities Rally on Greek Aid Speculation
By Nikolaj Gammeltoft and Justin Carrigan
Feb. 9 (Bloomberg) — Stocks rallied, with emerging-market equities recovering from the worst three-day slide in a year, and the euro and commodities gained as European officials said they were considering financial assistance for Greece. Treasuries tumbled, while Greek bonds surged.
The Standard & Poor’s 500 Index rose 1.6 percent at 1:53 p.m. in New York. The MSCI Emerging Markets Index increased 2 percent after falling 6.1 percent in the past three sessions. Greece’s ASE Index climbed 5 percent, rebounding from four days of losses. The euro strengthened the most in more than five months against the dollar, snapping four days of declines, and ended a three-day drop against the yen. Oil, copper and aluminum surged at least 2.2 percent to help lead gains in commodities.
Germany is considering assistance for Greece after the country’s deficit threatened the stability of financial markets, two lawmakers from Chancellor Angela Merkel’s governing coalition said. Olli Rehn, who takes over as European Union economic affairs commissioner tomorrow, said EU support for Greece will be discussed in coming days.
“The markets are smelling a deal for Greece, and for that reason, we’re seeing some stabilization,” said Robin Marshall, director of fixed income in London at Smith & Williamson Investment Management, which oversees about $20 billion. “It’s hard to see there not being one, given the potential fallout and contagion effect.”
…
Greece = too big to fail
Especially since they owe billions and billions of dollars to Megabank, Inc (see post further down this thread…).
“Equities, Euro, Commodities Rally on Greek Aid Speculation”
Filed under: “I see a pattern” …or…”It works until it doesn’t”
Dubai: “Oops, ah….HELP!, our Sand Kingdom for a loan!”
Stocks go down
“Invisible Hand”: “No worries, help is on the way!”
Stocks go up
Greece: “Oops, ah….HELP!, our Marbled Kingdom for a loan!”
Stocks go down
“Invisible Hand”: “No worries, help is on the way!”
Stocks go up
GS, in 2008:
$5,941,639 $4,461,988 $1,469,311 75% 25%
$6 million in investment got them $2.5 billion in AIG bailout money. That’s a return of 42000% on the money. Damn I wish I could score that kind of return on my money.
Good thing that the Supreme Court made bribing politicians legal, now there’s no limit on those kind of transactions. Expect more where that came from.
“So far AIG has received in excess of $152,000,000,000 from once and future taxpayers, (more than the stimulus funds given all fifty United States combined) with no accountability to any of us.”
Schweet! There has never been a better time to be one of AIG’s insurance product customers…
The lesson of AIG is that only a bankruptcy can di-vest the vested interests, and for organizations posing systemic risk an expedited process should have been put in place. Shareholders wiped out, bondholders and those owed in financial transactions become shareholders, only depositors protected. The shareholders could reform the capital structure later.
Speaking of vested interests, the federal government could get ahead of the curve by coming up with an expedited bankruptcy plan for state and local governments. In California, they may only have a few months, and Congress doesn’t move that fast.
“In California, they may only have a few months, and Congress doesn’t move that fast.”
It seems like CA has run (and periodically patched up) deficits over $10 bn for years on end now. Why the sudden urgency?
And if Uncle Sam can pass a $700 bn Wall Street bailout over the span of a few days (as in Fall 2008), why not craft a $20 bn bailout of California, as America’s largest state’s economy is clearly too big to fail?
With many projects in the Golden State half finished it not only has a feel of Mexico it now looks like many Mexican towns, now is a good time to give the state back to Mexico?
What makes you think that Mexico wants it back?
What makes you think they haven’t already taken it back?
What makes you think Mexico does not already have it back?
Hooters!
Good point, WF. I suspect they already have some sort of deal in place– it’s not as though this is an open secret. State and county pensions all over the country are about go defunct and dump that “obligation” on the federal pension guarantee fund— which is why, I suspect, the administration’s counter-intuitive efforts to keep housing prices and bank balance sheets artificially pumped. CalPERS alone had some 30% of its funds invested in MBS. That’s $60B right there….
“It is all, in the end, about power and money.”
A Freudian slip. The corrupting trilogy is: money, SEX and power.
***********************
“Feb. 9 (Bloomberg) — Stocks rallied, with emerging-market equities recovering from the worst three-day slide in a year, and the euro and commodities gained as European officials said they were considering financial assistance for Greece. Treasuries tumbled, while Greek bonds surged.”
Ah, yes… the pornographic smell of market volatility at 3% commission.
Senator Richard Shelby of Alabama has now placed a hold on all outstanding Obama administration nominations (about 70 high-level government positions) until his state gets a tanker contract and a counter-terrorism center.
No more out-of-control deficit spending say the elected suits!
Unless of course it’s to bring home the bacon to my constituents which keeps me in office with all the perks and ego-stroking that entails.
Typical of the hypocrite minority party.
Allena,
Thank you for this fantastic post!
Thanks, CA. I know I’m doing a good job when I get excoriated by both “sides” for pointing out someone who’s doing the right thing. Maybe I’ll do one praising Speaker Pelosi just to see how many people’s heads pop….
Beware of Greeks bearing grifts.
US banks have $176 bln exposure to Greece, others
Tue Feb 9, 2010 5:31pm EST
NEW YORK, Feb 9 (Reuters) - U.S. banks have $176 billion in exposure to Greece, Ireland, Portugal and Spain, with risks concentrated among the 10 largest U.S. banks, Barclays Capital said on Tuesday.
…
Credit default swaps on bank debt have increased in recent weeks, in line with rising concerns over sovereign debt risk.
For example, the cost of credit default swaps insuring JPMorgan’s debt have risen to around 78.5 basis points, or $78,5000 per year for five years to insure $10 million in debt, from 47 basis points at the beginning of the year, according to Markit intraday.
The FFIEC data shows that 10 U.S. banks — Bank of America (BAC.N), Citigroup (C.N), JPMorgan, Wells Fargo (WFC.N), Bank of New York (BK.N), State Street (STT.N), Goldman Sachs (GS.N), Morgan Stanley (MS.N) and the U.S. branches of Deutsche Bank (DBKGn.DE) and HSBC (HSBA.L) — hold 96 percent of the risk, Barclays said.
The banks have $86 billion in exposure to Ireland, $68 billion to Spain, $18 billion to Greece and $9 billion to Portugal, Barclays said. (Reporting by Karen Brettell; Editing by Leslie Adler)
Luckily for Megabank, Inc, the sovereign debt default risk is fully contained; it’s turtles all the way down.
Is there ever a risk the global financial system might run out of turtles?
The Financial Times
EIB rules out Greek bail-out
By Tony Barber in Brussels
Published: February 9 2010 12:32 | Last updated: February 9 2010 12:32
The European Investment Bank, the European Union’s long-term lending institution, on Tuesday quashed speculation that it might become involved in a financial bail-out of Greece, saying such support would go beyond its legal mandate.
“The EIB’s mission and statute do not allow for bail-outs in terms of budget deficits or balance of payments support to individual member-states,” Philippe Maystadt, the EIB president, said in a statement.
The statement closed off another potential avenue of emergency assistance for Greece, with Germany and France having ruled out direct EU aid and the European Commission having stated that it does not want to bring in the International Monetary Fund.
Most experts think that, if Greece were to require emergency help because it looked at risk of being unable to refinance its debts, the solution would probably take the form of bilateral loans and guarantees from other eurozone governments, led by Germany and France, and perhaps involving private bank consortia.
…
EDITOR’S CHOICE
Athens’ salvation lies in Paris and Berlin - Feb-08
Greek crisis hangs over EU economic summit - Feb-08
Analysis: Greece – Halcyon no more - Feb-07
In depth: Greek debt crisis - Feb-02
‘Taming Greece’s public sector monster’ - Feb-08
Why Greece sends worrying signals over exit strategies - Feb-05
Am I oversimplifying the picture, or is Megabank, Inc about to spread its bad gambling debt over the Eurozone currency base?
Does it appear to anyone else as though the world’s central banks are coordinating an effort to share Wall Street’s bad gambling debt with anyone sufficiently unfortunate to own or be owed sovereign currency obligations demonimated in dollars or Euros?
Is this kind of central-bank coordinated sharing of the losses business as usual when a mania morphs into a bust, or is it different this time?
In the ‘good old days’ we’d have a depression followed by a world war. We’re trying a different option now. The jury is still out on which way is better. Might be twenty years before we know. Maybe today’s evil (payoffs to the banksters) will be tomorrow’s good?
I still say save the system- then bust the SOBs. Revenge is best served cold…
Dumb questions of the day:
1) Are we engaged in an undeclared War of the Sovereign Currency Printing Press Technologies?
2) Is it different this time, due to the severity of the global financial crisis, or is there always a currency war underway, which is just not so obvious when the global financial system is not under severe strain?
2) Is it different this time…?
I thought we’d decided it was never ‘different this time’? Bellum omnium contra omnes has always been the rule, silly Bear. Currencies very much included.
It must always be at least a little different; i.e., different cast of characters, but same story line:
Privatize profits, socialize losses.
From post above:
‘“The markets are smelling a deal for Greece, and for that reason, we’re seeing some stabilization,” said Robin Marshall, director of fixed income in London at Smith & Williamson Investment Management, which oversees about $20 billion. “It’s hard to see there not being one, given the potential fallout and contagion effect.”’
Contagion effect = Wall Street’s bad gambles on Eurozone sovereign debt have soured, and now they want to socialize the losses to anyone who holds or is owed Euros or Ameros.
“It’s hard to see there not being one, given the potential fallout and contagion effect.”’
—————-
There’s that threat again.
Every time the losses are about to be socialized, we hear the same refrain noted above. If we don’t share in the losses, THE WORLD IS DOOOOOOOMMMED!!!!
That gets everyone freaked out enough to open their wallets “for the good of society.”
Sounds a bit like the mafia demanding “protection money,” doesn’t it?
Sounds a bit like the mafia demanding “protection money,” doesn’t it?
Except we’re not even being asked, it’s just being taken.
The Financial Times
Berlin looks to build Greek ‘firewall’
By FT reporters
Published: February 9 2010 18:37 | Last updated: February 9 2010 22:58
Financial markets surged on Tuesday on hopes of a European rescue plan for Greece, as officials in Berlin admitted it was looking at how to construct a “firewall” to prevent the debt crisis spiralling out of control.
A German government official said that the steep decline in the euro and pressure on bond prices had forced Berlin to ”take a significant step” in how to deal with the crisis.
Germany is worried that any flight out of Greek assets, especially government bonds, could hit its banks and those in other eurozone countries.
As the eurozone’s dominant economy, Germany would be expected to take the lead in marshalling financial support for a Greek bail-out. There are fears the crisis could spread to other eurozone states with big deficits such as Spain and Portugal.
”We’ve had to face up to the fact that what is now a Greek problem could turn into a European one,” the official said.
”We’re thinking about what we should do if the crisis spills from Greece into other euro countries. So it’s more about finding firewalls, containing the problem, than principally about helping the Greeks.” He added there were ”no concrete plans” as yet.
…
EDITOR’S CHOICE
In depth: Greece debt crisis - Feb-09
Greek rescue hopes help bourses regain poise - Feb-09
Analysis: Europe: A field to level - Feb-09
EIB rules out Greek bail-out - Feb-09
Financial markets surged on Tuesday on hopes of a European rescue plan for Greece, as officials in Berlin admitted it was looking at how to construct a “firewall” to prevent the debt crisis spiralling out of control.
That may turn out to be some firewall if they have to wall off Greece, Spain, and Portugal, and later Ireland and some parts of Eastern Europe. I wonder if this will work any better for Germany than the Maginot line worked for France.
I guess Wall Street and Greek are not nearly so decoupled as, say, America and China?
Note the comparison below to Greenspan’s behavior one day after Black Monday (October 19, 1987), when the U.S. stock market dropped 20 percent in one day.
But I am sure the comparison is irrelevant, as the crisis is completely contained this time around, especially as we are several years into it already.
The Financial Times
Greek rescue hopes help bourses regain poise
By Jamie Chisholm, Global Markets Commentator
Published: February 9 2010 08:24 | Last updated: February 9 2010 22:10
22:00 GMT.
Dow below 10,000! Europe on the fiscal precipice! Never fear, Jean-Claude is coming.
The euro rallied, commodities perked up and global stocks recovered their poise after it emerged that Jean-Claude Trichet, European Central Bank president, was to leave a summit with his peers in Australia early and fly to the rescue of the eurozone.
Mr Trichet’s attendance at Thursday’s special meeting of European leaders, called to address the region’s economy, was seen as evidence that a deal to support Greece would be thrashed out. And statements of German intent helped Greek bond yields fall sharply in response.
“There is nothing like a change in a VIP’s travel plans to excite the imaginations of market participants,” noted Stephen Lewis at Monument Securities.
“Some will remember the market panic that followed [UK] Chancellor Healey’s U-turn, yards short of Heathrow Airport in September 1976. Others will recall Mr Greenspan’s unscheduled return to Washington from Dallas on 20 October 1987.”
Never mind that it has since emerged Mr Trichet’s travel arrangements were for logistical reasons and that he had accepted in January the invitation to the EU leader gathering. A circulating rumour that Berlin was planning to rescue Greece were also put to rest when Angela Merkel, the German chancellor, flatly denied it.
A German official later said the eurozone would have to “face up to the fact” that some action is expected. Investors remained hopeful that a bail-out could provide a firebreak to the current sovereign debt firestorm.
Worries about the fiscal burden facing Greece and the potential for any default to spread into other eurozone nations has roiled markets of late. Traders fear for the fragile global economic recovery should such a scenario unfold, and this has caused a sharp reduction in risk appetite – battering stocks and commodities, but boosting haven bonds and the dollar.
The Dow Jones Industrial Average had closed on Monday below the 10,000 level for the first time since November. The Vix measure of market volatility rose to 26.5 as investors became increasingly wary of the inability of major indices to stop the slide that has seen stocks lose more than 8 per cent in 14 trading days.
…
Somehow the PR campaign concerning bail-outs avoids the subject of US exposure to other Countries . Wouldn’t want to talk about that little subject now would they .
Sounds as if the EU is going to help Wall Street out with a bailout that forces the citizens of EU nations to join Main Street American bagholders.
David Weidner’s Writing on the Wall
Feb. 9, 2010, 12:01 a.m. EST · Recommend (14) · Post:
Crisis? What crisis?
Commentary: Wall Street amnesia spreads to the G-7
By David Weidner, MarketWatch
NEW YORK (MarketWatch) — That blip in your 401(k) was just a momentary hiccup.
You know the one; it erased half of your retirement savings before last year’s bull market recouped some of the damage. Too bad many of you dropped out of the market near its lowest point.
Does this ring a bell? This little correction crushed the mortgage market and led to the worst recession since the Great Depression. Hello, 10% unemployment anyone?
Still don’t remember? Well, you’re not alone. The world’s regulators seem to have caught the case of amnesia that swept over Wall Street in the last six months. They don’t seem to think remaking the financial industry is so necessary now. See report on G-7.
Regulators from the world’s seven biggest economies met during the weekend near the Arctic Circle. Presented with a golden opportunity to create uniform reform for the global financial industry, regulators instead opted to melt like snowmen under the withering heat of bank interests.
The Group of Seven finance ministers effectively shut down U.S. Treasury Secretary Timothy Geithner, the man who brought them the Volcker Rule: a ban on proprietary trading, hedge funds and private equity dealings for bank institutions.
Maybe it was the messenger — Geithner privately is reportedly against the plan — but whatever the reason, French, German and British bank regulators played Simon Cowell to Volcker’s shrill song.
French Finance Minister Christine Lagarde said the plan may not be the right approach because European and Japanese banks aren’t plagued by the same issues as U.S. banks. Alistair Darling, the Britain’s Chancellor of the Exchequer, said the G-7 needed to be cautious not to hamper the global recovery.
…
(France’s Finance Minister Christine Lagarde (L), Canada’s Finance Minister Jim Flaherty (C) and U.S. Treasury Secretary Tim Geithner at the G-7.)
Doesn’t something just bug you that the Powers have to get the corporation of
all these other Countries to get rid of a gambling casino in the USA. I have never seen the United States so powerless to respond to a crisis that was created by the financial sectors combined with Globalism .
I have never seen the United States so powerless to respond to a crisis that was created by the financial sectors combined with Globalism .
I know. To me it shows our financial sector’s dominance combined with globalism has enriched a very few at great expense to our national sovereignty.
Alistair Darling, the Britain’s Chancellor of the Exchequer, said the G-7 needed to be cautious not to hamper the global recovery.
——————-
I’d really like to know how separating things like hedge funds, prop trading, etc. from FDIC insured institutions would “hamper the global recovery.”
Exactly what do these entities do that benefits society? From everything I can tell, they suck money OUT of the economy.
I’d really like to know how separating things like hedge funds, prop trading, etc. from FDIC insured institutions would “hamper the global recovery.”
They don’t want to hamper the illusion of a recovery. There is no real recovery for most people.
I said it before, Volcker is just being used as a tool.
When events get scary enough then Volcker and Volckerism is trotted out of the closet. When the situation settles down a bit then back into the closet goes Volcker.
“I don’t want to see the Republican Party ride to political victory on the Four Horsemen of Calumny — Fear, Ignorance, Bigotry and Smear. I doubt if the Republican Party could — simply because I don’t believe the American people will uphold any political party that puts political exploitation above national interest. Surely we Republicans aren’t that desperate for victory.”
-Senator Margaret Chase Smith(r), June 1950
What happened to the GOP?
They became the Four Horsemen of Calumny.
Lol.
In 1950, the democratic party was the leader in fear, ignorance and bigotry.
lmao… Yeah. According to a twenty something ideologue. Thanks but no thanks. I’ll take my historical cues from a GOP senator who actually predicted what the GOP would become. Further to the point, she authored the Declaration of Conscience.
You should read it. It will help you sound like you care about what you’re saying.
Some of the more insightful hucksters and snakeoil salesman in WallsVegas now realize they might have screwed, blued and tattooed the golden goose beyond rpair or recognition.
FTA-
the market’s turbulence hasn’t just destroyed wealth. It has shattered (investors’) faith in the financial system itself.
…financial advisers need to be much less dogmatic and confident in their predictions. By admitting the extent of their own ignorance today, they would help prevent investors from feeling railroaded tomorrow.
people can’t blame themselves[for losing 40% of their wealth!] ; they did as they had been told. Meanwhile, they watched Wall Street firms parcel out billions in bonuses.
http://finance.yahoo.com/loans/article/108787/will-we-ever-again-trust-wall-street
Here’s an idea: Why don’t we put a tax on imports to pay the debt/deficit down while we make and sell “things” for the 300 million neighbors we call Americans?
Because then Americans would have jobs, and then they could get out of debt, and that would mean a loss of control by Wall Street.
Nah, they’ll probably just start forcing us to buy MBS or some crud to take away our money and make us play in their rigged market.
+1 billion, PTM.