Tuesday, September 30, 2008
A Bit Of Truth
CNBC just said what most aren't: the reason why interbank lending rates are so high is because banks don't trust each other. The reason they don't trust each other is they don't know how much and which pieces of big shitpile they own.
Term Limits
I don't like them generally, though I think there's a better case for them or executive positions than for jobs in the legislature. But I don't think it's good to change the fundamental rules in the middle of the game to benefit you. Want to get rid of term limits? Remove them for your successors.
Make It Stop
CBS torments me some more:
Gov. Palin at Monday’s event in Columbus, OH: I do look forward to Thursday night and debating Senator Joe Biden. We are going to talk about those new ideas, new energy for America. I'm looking forward to meet him too. I've never met him before. But, I've been hearing about his senate speeches since I was in like 2nd grade.
Katie Couric: You made a funny comment, you've said you have been listening to Joe Biden's speeches since you were in second grade.
Gov. Palin: It's been since like '72, yah.
Katie Couric: You have a 72-year-old running mate, is that kind of a risky thing to say, insinuating that Joe Biden's been around awhile?
Gov. Palin: Oh no, it's nothing negative at all. He's got a lot of experience and just stating the fact there, that we've been hearing his speeches for all these years. So he's got a tremendous amount of experience and, you know, I'm the new energy, the new face, the new ideas and he's got the experience based on many many years in the Senate and voters are gonna have a choice there of what it is that they want in these next four years.
That, My Friend, Is Policy We Can Agree About
I previously said that increasing the FDIC limits is probably a good idea, so I'm glad the presidential candidates have finally gotten behind the Eschaton Plan.
RENO, Nev. – As they worked to make the government bailout plan more palatable, Senators John McCain and Barack Obama on Tuesday both proposed raising the federal insurance limit to $250,000 in an effort to help small businesses and restore public confidence in the American financial system.
Going All In
WaMu was shoveling money into "subprime" loans long after it was clear to sentient people that the housing bust was happening, or that at the very least the days of perpetual appreciation were over.
I put subprime in quotes because subprime loans are about the quality of the borrower (credit score) and this data was based on loan terms. Sounds like they were trying to save themselves by giving out a lot of loans with really shitty terms.
I put subprime in quotes because subprime loans are about the quality of the borrower (credit score) and this data was based on loan terms. Sounds like they were trying to save themselves by giving out a lot of loans with really shitty terms.
Playing Football With Lucy
Nobody could've predicted that the Republicans would hang the bailout around the necks of the Democrats.
Except everyone.
Except everyone.
Outta Gas
I hadn't realized supply problems were that bad.
Which reminds me, it's time to get a new transit pass. Month over!
The shortage began two weeks ago in Atlanta, the region's largest city, when oil refineries on the Gulf Coast were shut down by hurricanes Gustav and Ike earlier this month. Parts of north Georgia, western North Carolina and parts of Tennessee were also affected.
The effects on motorists have been dramatic. Most service stations in Atlanta are out of gas, with plastic bags placed over the pumps or signs saying "out".
Which reminds me, it's time to get a new transit pass. Month over!
In Addition
You have be incredibly ignorant about Social Security and the political debate which unfolded just a couple of short years ago to assert that McCain thinks "private accounts" should be "in addition to Social Security." Because, you know, we already have "private accounts" that are "in addition to Social Security." They're called IRAs and 401Ks.
I KEED
Anyway, the point of the last post is that major economic policy decisions or opinions about the health of the economy should not be based on daily DJIA fluctuations, even big ones.
Morning Thread
John McCain:
"Gov. Palin and I agree that you don't announce that you're going to attack another country."You would think John McCain, scion of an old Navy family, wouldn't fall back on arguments Tojo would make.
Monday, September 29, 2008
Depth of Ignorance
As I said before, I have some sympathy for Palin. Plenty of members of Congress don't actually know a damn thing about Supreme Court history or details about particular decisions, but what they do know (usually) is just enough to satisfy the Tom Brokaws of the world and move on to the next topic. They're trained in the trivia important to the locals, but they don't actually know anything.
But having said that, all evidence does indeed point to her being profoundly ignorant. She could be incredibly smart, too. I've known plenty of people like that in my life. Though she isn't smart enough to know she's in over her head, if in part due to simply not knowing the rules of the game she just signed up for.
But having said that, all evidence does indeed point to her being profoundly ignorant. She could be incredibly smart, too. I've known plenty of people like that in my life. Though she isn't smart enough to know she's in over her head, if in part due to simply not knowing the rules of the game she just signed up for.
Strangely Incompetent
I admit to being surprised that the McCain campaign is as incompetent as it is. The general flailing about looking for anything that will stick is a usually a feature of bad Dem campaigns. Maybe Rove was a genius at one thing: pick a narrative, any narrative, and then plug everything into it.
Unlikely
Very strange behavior for a majority party.
#4 -- Get More Democrats On Board: Finally, one other unlikely option talked about on Capitol Hill is to try to pass the bill almost entirely with the Democratic majority in the House. That would require adding a major stimulus package favored by Democrats, infrastructure spending, unemployment insurance spending, and heating and food stamp assistance for low-income Americans.
STOP TORTURING ME
CBS keeps sending Palin excerpts to my inbox. Latest.
Full horror show at 6:30 apparently.
Couric: Gov. Palin, since our last interview, you've gotten a lot of flak. Some Republicans have said you're not prepared; you're not ready for prime-time. People have questioned your readiness since that interview. And I'm curious …
Palin: Yeah.
Couric: … to hear your reaction.
Palin: Well, not only am I ready but willing and able to serve as Vice President with Sen. McCain if Americans so bless us and privilege us with the opportunity of serving them, ready with my executive experience as a city mayor and manager, as a governor, as a commissioner, a regulator of oil and gas.
Full horror show at 6:30 apparently.
Deep Thought
Obviously Sarah Palin needs to skip Thursday's debate so she can go to Washington and negotiate a deal.
I'll Admit This Is Pretty Mavericky
Politico:
Sen. John McCain (R-Ariz.) and his top aides took credit for building a winning bailout coalition – hours before the vote failed and stocks tanked.
They Eated It
Whatever the merits of the bailout bill, it's pretty clear that the politics of it were pretty bad. Republican challengers will run against every Dem who just voted for the losing bill. For those Reps who truly believed the bill was necessary, you can respect them for voting to do the right things regardless of the politics. Except that, you know, the bill didn't even pass.
Let It Fail
If something really needs to be done, tell Paulson, the Republicans, and the Bush Dogs to eat shit and pass a bill Democrats can support.
...adding, most of the time when the clock is held over on House votes, only crazy CSPAN junkies notice. Now the entire universe of cable news watchers is getting a sense of what Pelosi's priorities are.
...failed, for now.
...adding, most of the time when the clock is held over on House votes, only crazy CSPAN junkies notice. Now the entire universe of cable news watchers is getting a sense of what Pelosi's priorities are.
...failed, for now.
Fail?
The bailout bill is currently failing in the House, though potentially they could hold the vote open for another few minutes and twist some arms to switch some votes. Still, I hope we have all learned our lesson here:
Don't play football with Lucy.
Don't play football with Lucy.
Ignoring Saint Petraeus
I'm not one who thinks that all military-related discourse in this country needs to be pre-approved by Saint Petraeus, but McCain does, at least for other people.
Assumptions of Bad Faith
The main reason I stopped reading Somerby awhile ago was his tendency to strongly imply/assume bad faith among nominal allies when often more innocent explanations are the correct ones.
The "any judgments," in the first quoted post, referred to, in my mind, how I imagined the debate would impact the race, something which I have yet to deliver an opinion on because I never saw the debate aside from a couple of clips
And Mrs. Atrios, who Bob has yet to go after, can attest to the fact that McCain's extremely condescending attitude towards Obama was the subject of our debate discussion as we listened in the car.
The "any judgments," in the first quoted post, referred to, in my mind, how I imagined the debate would impact the race, something which I have yet to deliver an opinion on because I never saw the debate aside from a couple of clips
And Mrs. Atrios, who Bob has yet to go after, can attest to the fact that McCain's extremely condescending attitude towards Obama was the subject of our debate discussion as we listened in the car.
Special Prosecutor
GOP Daddy Mukasey surprises me just a little. Presumably this will extend into the next administration, making meddling slightly less likely.
The Only Man For The Job
It's true that a big flaw in our system is you pretty much have to be nuts to want to be president. But you have to be even more nuts to think that not only should you have the job, but you are quite literally the person most deserving of the job. Sure most politicians use the stock "best person for the job" phrase, but it's a bit frightening to imagine that any of them might actually believe it.
Nobody Could Have Predicted
That this would be a flawed business model.
Wachovia has been among the banks hardest hit by the ongoing crisis in the mortgage market. Its current problems stem largely from its acquisition of mortgage lender Golden West Financial Corp. in 2006 for roughly $25 billion at the height of the nation's housing boom. With that purchase, Wachovia inherited a deteriorating $122 billion portfolio of Pick-A-Payment loans, Golden West's specialty, which let borrowers skip some payments.
Wachovia Eated
Wachovia eated by Citigroup. FDIC involved in deal, though unclear if they ever officially hit the failed bank list.
...yep, eated:
...I guess that means theCoreStates First Union Wachovia Center becomes the Citigroup Center.
...yep, eated:
Citigroup Inc. will acquire the banking operations of Wachovia Corp. \ , the troubled Charlotte, N.C.-based bank, according to a press release from the Federal Deposit Insurance Corp. on Monday morning. Citi will acquire "the bulk of Wachovia's assets and liabilities," the FDIC statement said. Under the agreement, Citigroup will absorb up to $42 billion of losses on a $312 billion pool of loans, while the FDIC will take losses beyond that. Citigroup has granted the FDIC $12 billion in preferred stock and warrants to compensate the FDIC for bearing the risk, according to the press release.
...I guess that means the
TV With The Sound Off
CNN is telling me that "Biden's Verbal Blunders worry some Democrats," and keep putting up Alex Castellanos (R-Hack) to explain it.
...and now Karen Hughes and Mark Penn are going to come on to explain the world.
...and now Karen Hughes and Mark Penn are going to come on to explain the world.
You Down With PPT?
Anyone who dwells for a bit on internet stock boards knows of the powerful Plunge Protection Team, the (perhaps mythical) quasi-governmental shadow agency tasked with propping up the stock and other financial markets.
Just something I was thinking about.
Just something I was thinking about.
Deep Thought
As a person with a Ph.D in economics, I can confidently state that Robert "not son of Paul" Samuelson really has no idea what he's talking about.
Sunday, September 28, 2008
Meanwhile
The war is still over.
In Baghdad, a series of explosions struck mostly Shiite areas, killing at least 32 people and wounding nearly 100, police said. The attacks appeared aimed at reviving sectarian tensions that once threatened to plunge the nation into civil war.
Great Moments In Cable Television
Republican MSNBC strategist talking about Biden "the human gaffe machine:"
Shoulda stayed at the airport.
Here's a guy who thought FDR was president during the Great Depression.
Shoulda stayed at the airport.
She's Quite The Maverick
That, my friends, is politics we can believe in.
- WASILLA, Alaska (AP) — Though Sarah Palin depicts herself as a pit bull fighting good-old-boy politics, in her years as mayor she and her friends received special benefits more typical of small-town politics as usual, an Associated Press investigation shows. When Palin needed to sell her house during her last year as Wasilla mayor, she got the city to sign off on a special zoning exception — and did so without keeping a promise to remove a potential fire hazard. She gladly accepted gifts from merchants: A free "awesome facial" she raved about in a thank-you note to a spa. The "absolutely gorgeous flowers" she received from a welding supply store. Even fresh salmon to take home.
Around And Around
Dick Polman:
Polman's wrong, as has been every very serious pundit who has tried to make this claim. While McCain's plan would be voluntary for people born after 1950, and presumably keeping promised benefits as they are under current law, as we know the benefits of current Social Security retirees are paid from current payroll taxes. Divert money out of the Social Security trust fund into stock funds, however you do it, and there's less money available to pay the benefits of current (and future, given accumulation in the Trust Fund) retirees.
Polman's argument only holds up if you just assume that benefits as promised under current law will be paid no matter what. If so, fine, and we can leave behind forever all arguments about the "solvency" of the trust fund. The fact is that the Bush/McCain plan would've diverted money which would otherwise go into the Trust Fund, money used to pay current and future benefits, into the stock market, leaving less money available to pay benefits.
While on the stump in Florida last weekend, Obama contended that McCain's talk of Social Security privatization could leave seniors destitute: "If my opponent had his way, the millions of Floridians who rely on it would've had their Social Security tied up in the stock market this week. Millions would have watched as the market tumbled and their nest egg disappeared before their eyes."
Obama lied. No such nest eggs would have disappeared, because the McCain plan exempts every American born before 1950. I could also detail the Obama TV ad on Social Security that has been aired in Florida, Pennsylvania and five other states - it falsely claims that McCain favors "cutting benefits in half" - but here's the point:
Polman's wrong, as has been every very serious pundit who has tried to make this claim. While McCain's plan would be voluntary for people born after 1950, and presumably keeping promised benefits as they are under current law, as we know the benefits of current Social Security retirees are paid from current payroll taxes. Divert money out of the Social Security trust fund into stock funds, however you do it, and there's less money available to pay the benefits of current (and future, given accumulation in the Trust Fund) retirees.
Polman's argument only holds up if you just assume that benefits as promised under current law will be paid no matter what. If so, fine, and we can leave behind forever all arguments about the "solvency" of the trust fund. The fact is that the Bush/McCain plan would've diverted money which would otherwise go into the Trust Fund, money used to pay current and future benefits, into the stock market, leaving less money available to pay benefits.
Lunchtime Thread
About to get in a big small jet plane.
...never mind. Made it as far as the plane entrance before being sent back to the gate.
Back to airport hell
...never mind. Made it as far as the plane entrance before being sent back to the gate.
Back to airport hell
Wedding Bells
While I'm skeptical about the truth of this report as well, in my most honest non-concern troll fashion suggest to the McCain campaign that it would be an incredibly stupid idea. I don't mean having a wedding at all (clock is ticking, after all), but one at which every television camera in the country is present.
Better Way
Better to eat it than give them free money.
LONDON (Reuters) - Britain's government will nationalize troubled mortgage lender Bradford & Bingleyand is discussing the sale of its savings book and branches, people in the banking industry familiar with the matter said.
Sunday Bobbleheads
Document the atrocities.
- ABC's "This Week" - Sen. John McCain, R-Ariz.; former House Speaker Newt Gingrich.
- CBS' "Face the Nation" - Sen. Barack Obama, D-Ill.
- NBC's "Meet the Press" - Former President Clinton; David Axelrod, Obama's chief strategist; Steve Schmidt, senior adviser to McCain; Rep. Mark Udall, D-Colo.; former Rep. Bob Schaffer, R-Colo.
- CNN's "Late Edition" - Pakistani President Asif Ali Zardari; Reps. Barney Frank, D-Mass., and Eric Cantor, R-Va.
- "Fox News Sunday" - Sens. Lindsey Graham, R-S.C., and John Kerry, D-Mass; Cristian Samper, director of the Smithsonian National Museum of Natural History.
Saturday, September 27, 2008
Condescension
Visuals aside, what did come through loud and clear on the radio bits I heard was McCain's incredibly condescending attitude towards Obama. Not a mindreader, so I don't know what he really thinks/feels, but he sounded like he thought Obama was on par with dog shit.
Nobody Could Have Predicated
That "voluntary regulation" was an oxymoron created by morons...
WASHINGTON — The chairman of the Securities and Exchange Commission, a longtime proponent of deregulation, acknowledged on Friday that failures in a voluntary supervision program for Wall Street’s largest investment banks had contributed to the global financial crisis, and he abruptly shut the program down.
He's Awesome
What I did catch from the radio bits I did hear is that John McCain is awesome. More than that, the American people know he's awesome.
I'd say a reasonable rule of the thumb is that when you call yourself a maverick you're, you know, not. But aside from that, I was struck by the "American people know me very well."
I have a long record and the American people know me very well and that is independent and a maverick of the Senate and I'm happy to say that I've got a partner that's a good maverick along with me now.
I'd say a reasonable rule of the thumb is that when you call yourself a maverick you're, you know, not. But aside from that, I was struck by the "American people know me very well."
Where's Sarah?
Apparently she did spend the evening at a pub in Philly, instead of actually doing the Vice Presidential thing.
Also pretty weird.
Also pretty weird.
Debate
Well, due to travel hell I was in a car during the debate. Caught some of it on the radio, though it's hard to make any judgments without seeing the visuals.
I understand McCain has a wee bit of a problem looking Obama in the eye? Pretty weird.
I understand McCain has a wee bit of a problem looking Obama in the eye? Pretty weird.
Obama!
CNN post-debate poll:
Who did the best job in the debate?
Barack Obama 51
John McCain 38
Who would better handle Iraq?
Barack Obama 52
John McCain 47
Who would better handle the economy?
Barack Obama 58
John McCain 37
Who did the best job in the debate?
Barack Obama 51
John McCain 38
Who would better handle Iraq?
Barack Obama 52
John McCain 47
Who would better handle the economy?
Barack Obama 58
John McCain 37
Friday, September 26, 2008
Poll List
Oh good -- please go here to the online poll list and vote vote vote!
This is stupid, but necessary.
This is stupid, but necessary.
Wachovia
I'm guessing the local hockey arena might be getting a new name soon.
CoreStates First Union Wachovia ???
Stupid Crazy People
I'm sure if I dug deeply I could find some House Democrats who had some ideas which were a bit wacky, and who weren't particularly bright, but these people are generally kept hidden and not discussed in polite company. On the other hand, crazy idiots have pretty much been the voice of the Republican party for years.
Cotton Swabs of Mass Destruction
Saw a small box at the CVS labeled "Carry On Approved." Are all products vaguely in the "toiletry" category subject to the liquid ban?
Party Leaders
It's interesting that the Republican party is now led by two men, Bush and McCain, who most Congressional Republicans pretty much despise. They despise Bush because he fucked up everything, and they despise McCain because he's always been a total asshole and because of his occasional rejection of tribal conservatism. That's part of the reason his little stunt (and Bush's bailout) yesterday was an EPIC FAIL. They just wouldn't play along.
Palin
Wingnut Kathleen Parker says she should go.
I'm actually a little sympathetic to Palin. Her problem isn't so much that she speaks in gibberish, the problem is that she doesn't speak in Official Washington Gibberish. John McCain spouts gibberish all the time, as do all politicians, but it's often the kind of gibberish which is part of the Beltway dialect. It's pundit-approved gibberish. Whether or not it makes any sense is irrelevant. Whatever Palin's knowledge of domestic or foreign affairs, her biggest problem is that she's obviously completely unfamiliar with the basic contours of the core political discourse of our country. Gibberish is fine as long as it's the right kind of gibberish.
I'm actually a little sympathetic to Palin. Her problem isn't so much that she speaks in gibberish, the problem is that she doesn't speak in Official Washington Gibberish. John McCain spouts gibberish all the time, as do all politicians, but it's often the kind of gibberish which is part of the Beltway dialect. It's pundit-approved gibberish. Whether or not it makes any sense is irrelevant. Whatever Palin's knowledge of domestic or foreign affairs, her biggest problem is that she's obviously completely unfamiliar with the basic contours of the core political discourse of our country. Gibberish is fine as long as it's the right kind of gibberish.
Drama Queen Update
John McCain, who previously promised to cancel the debate unless there was a deal, is now going to ride to Mississippi on his white unicorn and attend. I'm not sure why, because he's already won it. Just ask him.
Drama Queen Update
CNN sez McCain headed to his campaign headquarters, where he will not be campaigning SO STOP SAYING THAT.
Wake-Up Calls
No, the fact that a highly regulated bank was, as prescribed by law and regulation, seized in an orderly fashioned and sold off with no cost to taxpayers is in no way a "wake-up call" suggesting that Congress needs to give large amounts of money to the largely unregulated shadow banking system.
Panic
People have made this point in comments and elsewhere, and while I have no idea if people are currently draining their bank accounts and putting the money in their mattresses, but generally speaking it was a really bad idea for Bush and McCain to get on the teevee and inform the country that the financial system was about to collapse and that (in McCain's version) we could be in a Depression by Monday. We've all seen It's A Wonderful Life.
Admittedly the Director's Cut ending is better.
Admittedly the Director's Cut ending is better.
Who's Next?
Friday is traditionally bank failure day, so it wouldn't surprise me if there's another big bank about to go.
Morning Thread
by Molly Ivors
I'm going to make a half-hour infomercial touting the benefits if the Kraftmatic Stuffable Mattress.
I'm going to make a half-hour infomercial touting the benefits if the Kraftmatic Stuffable Mattress.
Thursday, September 25, 2008
Exodus
I admit pulling my excess cash out of what is my day to day online bill pay account, but that excess cash wasn't exactly much money.
Apologies my couple grand or so were part of the problem.
Federal regulators said WaMu has suffered an exodus of $16.7 billion in deposits since Sept. 15, leaving the Seattle thrift "with insufficient liquidity to meet its obligations."
Apologies my couple grand or so were part of the problem.
Eated And Pooped
Cheap!
Of course buying the deposits doesn't mean you're literally buying the cash. You're buying the customers and the right to be custodians of their accounts. Still a pretty good deal!
...but they did eat the loan portfolio, making it not so cheap.
Sept. 25 (Bloomberg) -- JPMorgan Chase & Co., the third- biggest U.S. bank by assets, agreed to acquire the deposits of Washington Mutual Inc. for $1.9 billion as the thrift was seized by regulators in the biggest bank failure in U.S. history.
...
WaMu had about 2,300 branches and $182 billion of customer deposits at the end of June. Its $310 billion of assets dwarf those of Continental Illinois Corp., previously the largest failed bank, which had $40 billion ($83 billion in 2008 dollars) when it was taken over in 1984.
Of course buying the deposits doesn't mean you're literally buying the cash. You're buying the customers and the right to be custodians of their accounts. Still a pretty good deal!
...but they did eat the loan portfolio, making it not so cheap.
My Bank Got Eated
Yum!
In what is by far the largest bank failure in U.S. history, federal regulators seized Washington Mutual Inc. and struck a deal to sell the bulk of its operations to J.P. Morgan Chase & Co.
Happens Every Time
Not to beat a dead bailout bill here, but this is how things always work with this Congress. Once you open the door to something, either it doesn't happen or the Bush Dogs and their Republican pals get what they want. When you've advertised in advance that SOMETHING MUST HAPPEN NOW NOW NOW NOW NOW NOW, the latter scenario usually comes to pass. What happens here now I can't predict, but the path until this point was completely obvious, except for raging narcissistic drama queen John McCain's little ploy to put himself where he knows he belongs, at the center of the universe.
Deal Or No Deal
Lamar Alexander sez most GOP senators will support.
Reid sez unresolved issues.
Such fun.
...And House GOP says they'll get together with their BFFs the Bush Dogs to create an even shittier plan.
Reid sez unresolved issues.
Such fun.
...And House GOP says they'll get together with their BFFs the Bush Dogs to create an even shittier plan.
Policy Without A Constituency
Not too surprisingly, there is no popular groundswell of support for giving $700 billion to rich people. This makes the politics extraordinarily weird, with McCain apparently trying simultaneously own and oppose the bailout.
Frank says only issue left to deal on is bankruptcy cram downs. Will Dems just sell out on that one, the only real goodie in there?
Frank says only issue left to deal on is bankruptcy cram downs. Will Dems just sell out on that one, the only real goodie in there?
The Horror Continues
Why does CBS keep torturing me.
COURIC: Have you ever been involved with any negotiations, for example, with the Russians?
PALIN: We have trade missions back and forth. We-- we do-- it's very important when you consider even national security issues with Russia as Putin rears his head and comes into the air space of the United States of America, where-- where do they go? It's Alaska. It's just right over the border. It is-- from Alaska that we send those out to make sure that an eye is being kept on this very powerful nation, Russia, because they are right there. They are right next to-- to our state.
My Friends, That's Senatoring We Can Believe In
He had a banking bill, but he decided to keep it secret along with his plan to get bin Laden.
Republican presidential nominee John McCain has not introduced any banking or housing bills in the 110th Congress, while Democratic rival Barack Obama has proposed five.
Mysteries Solved
While I've long thought that there was no way that housing prices could continue to appreciate based on the very simple fact that not enough people in this country make enough money to afford those prices, I certainly didn't have perfect foresight about everything. I didn't know that lending standards had gotten so bad. I didn't know that financial institutions were making such leveraged bets on big shitpile.
The other thing I didn't know was the magnitude of HELOC abuse, by both borrowers and lenders. Truly amazing.
The other thing I didn't know was the magnitude of HELOC abuse, by both borrowers and lenders. Truly amazing.
So Stupid
So McCain's gambling that the press will let him pretend that he rode into Washington on his white unicorn, told the sunnis and shiites Democrats and Republicans to "cut the crap out" and SAVED THE WORLD.
This level of stupidity reminds me of the lowest moments of the Clinton campaign, requiring both that voters are extraordinarily stupid and that the press plays along giving some credibility to the stupidity.
This level of stupidity reminds me of the lowest moments of the Clinton campaign, requiring both that voters are extraordinarily stupid and that the press plays along giving some credibility to the stupidity.
Did We Say $700 Billion? We Meant...
$1.2 trillion!
The banking system needs another $500 billion to survive beyond the $700 billion rescue plan being contemplated by Congress, said Pimco founder Bill Gross.
Sneaking Suspicion
Krugman.
And Bernanke joins the list of GOP Daddies.
My sneaking suspicion is that they started with a determination to throw money at the financial industry, and everything else is just an excuse.
And Bernanke joins the list of GOP Daddies.
McCain Suspended His Campaign
And yet there he is, on my teevee, live!
...and, no joke, he's giving a stump speech at the Clinton Global Initiative.
...and, no joke, he's giving a stump speech at the Clinton Global Initiative.
Morning Thread
So happy real estate billionaire Mort Zuckerman is on the tee vee to represent the views of the common man.
Wednesday, September 24, 2008
Civil Disobedience
I like Al, but there's no reason civil disobedience is something for young people. I chafe when armchair revolutionaries suggest that others rise up and face the consequences.
Game Changer!
Bush's speech will change the terms of the debate!
Though I'm confused -- just last week, weren't the fundamentals of the economy sound?
UPDATE/FLASHBACK: Remember when Bush was going to be "The CEO President"?
Though I'm confused -- just last week, weren't the fundamentals of the economy sound?
UPDATE/FLASHBACK: Remember when Bush was going to be "The CEO President"?
Couric/Palin
Oh my is this a horror show.
COURIC: I'm just going to ask you one more time, not to belabor the point. Specific examples in his 26 years of pushing for more regulation?
PALIN: I'll try to find you some and I'll bring them to you.
Depression By Monday
This is so absurd.
McCain advisors say they will do all the debates but the schedule is up in the air.
They also deny that there is a political calculation in this and say without action the country could slide into a Depression by Monday and added "we'll see 12 percent unemployment" if action is not completed. GOP sources say they believe the current deal is dead on the Hill and reject suggestions that without McCain's vote Democrats would not support a package.
Deep Thought
Should Lindsey Graham be hard at work on this financial crisis, instead of on the teevee explaining why John McCain had to RUN AWAYYYYY!
So Stupid
So much obvious stuff can be said about this. McCain hasn't voted since April, etc.. etc.. But basically his campaign thinks you're stupid.
Obama Statement
- At 8:30 this morning, Senator Obama called Senator McCain to ask him if
he would join in issuing a joint statement outlining their shared
principles and conditions for the Treasury proposal and urging Congress
and the White House to act in a bipartisan manner to pass such a
proposal. At 2:30 this afternoon, Senator McCain returned Senator
Obama's call and agreed to join him in issuing such a statement. The
two campaigns are currently working together on the details.
That's A Mavericky Stunt We Can Believe In
McCain is suspending campaign (whatever that means) and going to Washington so he can have pictures taken of him looking like he's doing something. Asks that Obama do the same, and wants Friday's debate to be postponed, because he can't possibly do 2 things at once.
Planting The Flag
Reader D suggests that now that AIG is owned by the U.S. government, we should have Manchester United put an American flag on their jerseys.
Nationalizing The Means Of Production
Our plan is working, comrades!
- But late Tuesday AIG said it signed a definitive agreement with the Federal Reserve Bank of New York for a two-year, $85 billion revolving credit facility.
As part of the deal, AIG will issue a series of Convertible Participating Serial Preferred Stock to a trust that will hold the new securities for the benefit of the Treasury. The Preferred Stock will get almost 80% of any dividends paid on AIG's common stock and will give the government almost 80% of the voting power. The securities will then be converted to common stock at a special shareholder meeting, AIG said.
The agreement leaves "AIG essentially nationalized," Bijan Moazami, an analyst at Friedman, Billings, Ramsey, wrote in a note to investors on Wednesday. "Shareholder efforts to prevent the government from taking an equity stake in AIG will prove fruitless."
Heartening
I've been glad to find out that contrary to the common media narrative, Americans aren't necessarily excited about putting someone like Sarah Palin in office.
Forty-nine percent say that Palin is unqualified to be president if the need arises, compared with 40 percent who say she's qualified.
By contrast, 64 percent believe Biden is qualified to be president, versus just 21 percent who disagree.
Mr. 24%
Will be interrupting your prime time TV viewing this evening at 9:00. I do hope that the Democrats have finally internalized the idea that he's been 30% and under the polls for 3 years now.
Miserable failure.
Miserable failure.
Kneecapping The Next Administration
That's all this fake bailout is about.
Oh, and giving hundreds of billions of dollars to rich people. Don't forget that part.
Oh, and giving hundreds of billions of dollars to rich people. Don't forget that part.
My Friends
That's some mavericky makeup we can believe in.
The 72-year-old was recently made TV-ready by makeup artist Tifanie White who's worked on So You Think You Can Dance and American Idol.
McCain paid the 2002 beauty-school grad $5,583.43 for her services, according to the Federal Election Commission.
Metric
Yglesias:
One reason (there are dozens!) not to simply give Hank Paulson's golfing buddies $700 billion with no strings attached is that it precludes any possibility of measuring whether this action is a "success." There should at least be some yardstick. It'd be nice to establish so that it can be used for the inevitable General Motors bailout, too.
Capitalism!!
And at a minimum, before shelling out for a new bailout it’d be nice to see something about how the previous bailouts are going.
One reason (there are dozens!) not to simply give Hank Paulson's golfing buddies $700 billion with no strings attached is that it precludes any possibility of measuring whether this action is a "success." There should at least be some yardstick. It'd be nice to establish so that it can be used for the inevitable General Motors bailout, too.
Capitalism!!
Deep Thought
A $700 billion proposal for anything other than awesome wars or free money for rich people would be treated as crazy by our awesome media.
Everybody's An Expert
I get emails like this sometimes, from insiders who know what they're talking about, and over time I've learned that while they may be insiders all that means is they have access to more gossip. That gossip often doesn't turn out to be true.
In any case, a straw man is being erected. There is no crisis which requires $700 billion to Hank Paulson's friends THIS WEEK. That's the argument. There may be serious problems in the financial sector which require government attention. There isn't something which requires an insane act of Congress NOW NOW NOW NOW NOW NOW NOW.
In any case, a straw man is being erected. There is no crisis which requires $700 billion to Hank Paulson's friends THIS WEEK. That's the argument. There may be serious problems in the financial sector which require government attention. There isn't something which requires an insane act of Congress NOW NOW NOW NOW NOW NOW NOW.
Mr. 24%
CNN tells me he's considering giving a PRIME TIME SPEECH instructing Congress to give Hank Paulson's pals 700 billion dollars.
Awesome!
Awesome!
Poll Porn
Maybe you need it.
More voters trust Obama to deal with the economy, and he currently has a big edge as the candidate who is more in tune with the economic problems Americans now face. He also has a double-digit advantage on handling the current problems on Wall Street, and as a result, there has been a rise in his overall support. The poll found that, among likely voters, Obama now leads McCain by 52 percent to 43 percent. Two weeks ago, in the days immediately following the Republican National Convention, the race was essentially even, with McCain at 49 percent and Obama at 47 percent.
Tuesday, September 23, 2008
Undercuts
That's one way to put it.
- WASHINGTON — One of the giant mortgage companies at the heart of the credit crisis paid $15,000 a month from the end of 2005 through last month to a firm owned by Senator John McCain’s campaign manager, according to two people with direct knowledge of the arrangement. The disclosure undercuts a statement by Mr. McCain on Sunday night that the campaign manager, Rick Davis, had had no involvement with the company for the last several years.
The People Get It
New poll:
- Sept. 24 (Bloomberg) -- Americans oppose government rescues of ailing financial companies by a decisive margin, and blame Wall Street and President George W. Bush for the credit crisis. By a margin of 55 percent to 31 percent, Americans say it's not the government's responsibility to bail out private companies with taxpayer dollars, even if their collapse could damage the economy, according to the latest Bloomberg/Los Angeles Times poll.
The League Of American Patriots
Nice people.
TRENTON, N.J. - Residents in one New Jersey town are disturbed after receiving fliers over the weekend that question Barack Obama's candidacy on racial grounds.
Roxbury resident Elizabeth Corsetto says a flier was left in her driveway asking, "Do You Want A Black President?" and showing a doctored photo of Obama with a long beard and turban.
Roxbury Police Chief Mark Noll says the fliers were left on various streets in the northwestern New Jersey township by a white supremacist group called the League of American Patriots.
There Is No Crisis
Chris lays it out pretty well. To be clear, it's quite possible that some sort of government action at some point might be desirable. But the way this was dropped on the Democrats is how everything has always been dropped on the Democrats by the administration. GOP Daddies In Nice Suits quietly explain that unless they do exactly what they demand, the world will blow up and it will be all the Democrats' fault. Usually the Dems fall for it, and initially it looked like they were going to fall for it again. Will they? Stay tuned.
Deep Thought
This week, the Bush administration is attempting to steal $700 billion and give it to Wall Street. Will they succeed?
Not Acceptable
Feeling the Doddmania again.
WASHINGTON (AP) -- Dodd says the administration's $700 billion bailout proposal is not acceptable.
Lies and the Lying Liars
And when people asking you for 700 billion dollars to give to their friends are lying about it rather obviously perhaps you should reconsider.
One Thing
Josh asks what he's missing. He's missing the fact that after we recapitalize the banking system with taxpayer money buy purchasing big shitpile from them at HIGH HIGH prices, the party continues!
Make The Shitpile Higher
Don't forget to add your distressed assets to the Big Shitpile, so that Crazy Hank can buy them up at HIGH HIGH prices. No punitive measures allowed, so no need to worry!
Knock'Em Down
Not familiar with any of them specifically, but generally a lot of very bad urban freeways were built and when they're due for major repair it'll be good to let them die. They destroyed and divided neighborhoods.
(via the bellows)
(via the bellows)
I Don't Think This Is Happening
New York Times, 5/07.
Oh well.
WASHINGTON, May 25 — The Bush administration is developing what are described as concepts for reducing American combat forces in Iraq by as much as half next year, according to senior administration officials in the midst of the internal debate.
It is the first indication that growing political pressure is forcing the White House to turn its attention to what happens after the current troop increase runs its course.
The concepts call for a reduction in forces that could lower troop levels by the midst of the 2008 presidential election to roughly 100,000, from about 146,000, the latest available figure, which the military reported on May 1. They would also greatly scale back the mission that President Bush set for the American military when he ordered it in January to win back control of Baghdad and Anbar Province.
Oh well.
The Villagers
I think today's David Brooks column is the Sally Quinn/Lewinsky article of our time, providing a surprisingly honest window into their worldview.
Bad Bills
I think Matt sorta misses the point. All of those people were starting from the presumption that the Dems were heading off to write a bad bill for which they would be rewarded by being campaigned against. In other words, it would be bad politics and bad policy! Now it's possible that they'll ultimately come up with a better bill, one which would be better policy and better politics, but that's only if they understand that GOP Daddies are generally bad people.
Feature, Not Bug
CNBC:
But that's the point of the plan! It's only a bailout of the kind envisioned by Paulson if it does that.
Senator Dodd says plan does not stop CEOs from dumping toxic assets on taxpayers.
But that's the point of the plan! It's only a bailout of the kind envisioned by Paulson if it does that.
Monday, September 22, 2008
Sorry, Outta Money, Wall Street EATED IT
Chump change in the scheme of things though.
Metro needs more than $11 billion over 10 years to maintain, expand and improve train, bus and paratransit service, General Manager John B. Catoe Jr. said today. More than $7 billion of that is needed just to keep the region's largest transit agency running in a safe and reliable manner.
Metro's needs include replacing one-third of the rail fleet, 300 rail cars that are more than 30 years old and nearing the end of their life cycle; replacement of about 100 buses every year; repairs to leaky tunnels and crumbling station platforms; and repairing old bus garages, one of which is more than 100 years old.
Their Fault
Sometimes the people get it.
WASHINGTON (CNN) – A new CNN/Opinion Research Corporation Poll suggests that by a 2-to-1 margin, Americans blame Republicans over Democrats for the financial crisis that has swept across the country the past few weeks — one factor that may have contributed to an apparent increase in Barack Obama’s edge over John McCain in the race for the White House.
In the new survey, released Monday afternoon, 47 percent of registered voters questioned say Republicans are more responsible for the problems currently facing financial institutions and the stock market, with 24 percent saying Democrats are more responsible. One in five of those polled blame both parties equally, and 8 percent say neither party is to blame.
Et Tu, Politico?
Is McCain's base getting a little cranky?
Sen. John McCain’s top campaign aides convened a conference call today to complain of being called “liars.” They pressed the media to scrutinize specific elements of Sen. Barack Obama’s record.
But the call was so rife with simple, often inexplicable misstatements of fact that it may have had the opposite effect: to deepen the perception, dangerous to McCain, that he and his aides have little regard for factual accuracy.
André the Giant Has a Posse
Those images were everywhere when I lived in Providence. The era's equivalent of Internet Traditions.
Didn't realize the guy behind them did the Hope poster.
They'll Run Against It
Of course they will. And, hey, what do you know, the economy's still here! Hasn't imploded yet! While I'm increasingly pleased at Dodd's new plan, a major boo to him and Schumer for playing right into the "WE MUST DO SOMETHING NOW NOW NOW" crap from the administration.
I don't know what exactly needs to be done or how urgent some sort of intervention is, but I do know that if someone asks you for $700 billion you'd better get something for it.
I don't know what exactly needs to be done or how urgent some sort of intervention is, but I do know that if someone asks you for $700 billion you'd better get something for it.
My Own Man In The Street Anecdote!
While walking home earlier, I heard two guys in suits bitching about the bailout. From this I can conclude that Americans are solidly against it.
LEAVE JOHN MCAIN ALOOOOOOONE
Does the McCain campaign do anything aside from throwing hissy fits? I mean, other than lying, of course. Elect John McCain and embrace America's future as a Toddlerocracy.
More Dodd
Devil's in details and things that I probably can't really know, but this sounds better.
But no proposal matters as long as the plan is to surrender when Mr. 24% stamps his feet.
But no proposal matters as long as the plan is to surrender when Mr. 24% stamps his feet.
Better
Given how gung ho Dodd was about Henry Paulson's cunning plan to give $700 billion to his pals, I was about to declare Doddmania dead forever. This sounds a bit better, but I fear that once they all bought into the "something must be done NOWNOWNOW" idea they lost any chance of anything noncrazy happening.
Buy My Shitpile
As has been reported, the classes of assets and owners who will be eligible to sell their shit to Hank Paulson at inflated prices is expanding by the second. Add your assets to the shitpile!
Call Your Member of Congress
Politely suggest that giving Hank Paulson 700 billion dollars is insane. Use Teh Google to find their numbers, or call the House switchboard at (202) 224-3121.
DOW DOWN 45 BECAUSE OF DEMOCRATS
The most ridiculous thing is that bailout politics will largely depend on daily fluctuations of the DJIA, which only has a tangential and indirect relationship to the seriousness of a financial crisis.
...and, it must be said, a tangential and indirect relationship to the financial fortunes of the vast majority of the country.
...and, it must be said, a tangential and indirect relationship to the financial fortunes of the vast majority of the country.
Hell No
While I don't approve of "man in the street" anecdotes in place of polling from news organizations, CNN has decided that "bailout angers taxpayers."
As it should.
As it should.
Deep Thought
Did you know Obama was black? And this might matter to some voters, unlike McCain's whiteness? Shocking, but true.
Morning Thread
by Molly Ivors
Jeez, with all this hubbub about Charlie Rangel's taxes, you'd think there wasn't a war on or a financial crisis in process.
Jeez, with all this hubbub about Charlie Rangel's taxes, you'd think there wasn't a war on or a financial crisis in process.
Sunday, September 21, 2008
Nationalize It All!
So awesome.
Capitalism! Fuck yeah!
The U.S. Treasury submitted revised guidance to Congress on its plan a day after first submitting it, as lawmakers and lobbyists push their own ideas. Officials now propose buying what they term troubled assets, without specifying the type, according to a document obtained by Bloomberg News and confirmed by a congressional aide.
The change suggests the inclusion of instruments such as car and student loans, credit-card debt and any other troubled asset. That may force an eventual increase in the size of the package as Democrats and Republicans in Congress negotiate the final legislation with the Bush administration, analysts said.
Capitalism! Fuck yeah!
An Extra 1/10th Mile Just To Make Me Suffer
For those who asked, I muddled through a half marathon in a bit over 1:55.
So She Claims
Get your dialing fingers ready for tomorrow.
WASHINGTON -(Dow Jones)- U.S. House Speaker Nancy Pelosi said Sunday that Congress should not write a "blank check" to Wall Street in a bill to allow the U.S. to buy up distressed assets.
In a statement issued Sunday evening, Pelosi said a Treasury proposal received by Congress "does not include the necessary safeguards" and that congressional Democrats "will not simply hand over a $700 billion blank check to Wall Street and hope for a better outcome."
And Because It's So Obvious
If the Democrats pass this piece of shit, look for Republican challengers to run against them on it.
Shit Eating
Obama's people are making the right noises, but there's a difference between being on record as being kinda-maybe against and actually, you know, opposing. From Late Edition:
Basically, you'd have to be insane to give Paulson a $700 billion blank check with no strings attached. The fact that this is what Paulson has asked Congress to do is enough reason to tell him to fuck off and come up with something better, with him utterly out of the loop.
The Dems sucked as a minority party, and they suck harder as the majority.
GOOLSBEE: There is more information on the back of a box of Froot Loops than on what they've presented.
Basically, you'd have to be insane to give Paulson a $700 billion blank check with no strings attached. The fact that this is what Paulson has asked Congress to do is enough reason to tell him to fuck off and come up with something better, with him utterly out of the loop.
The Dems sucked as a minority party, and they suck harder as the majority.
Deep Thought
The Blue Dog Democrats, self-described fiscal conservatives, have been more responsible for adding to the debt than anyone.
More Lawmakers Like This Please
And on the record, obscenities included. Broderella would faint, but the rest of the country would cheer.
Sunday Bobbleheads
Document the atrocities.
All Paulson, all the time.
ABC's "This Week" — Treasury Secretary Henry Paulson; Sen. Chris Dodd, D-Conn.; Rep. John Boehner, R-Ohio.
___
CBS' "Face the Nation" — Paulson; Rep. Barney Frank, D-Mass.; Sen. Richard Shelby, R-Ala.
___
NBC's "Meet the Press" — Paulson; New York City Mayor Michael Bloomberg.
___
CNN's "Late Edition" — Douglas Holtz Eakin, adviser to John McCain; former Rep. Rob Portman, R-Ohio.
"Fox News Sunday" _ Paulson; Sens. Jon Kyl, R-Ariz., and Charles Schumer, D-N.Y.; Bonnie McElveen-Hunter, chair of the American Red Cross.
All Paulson, all the time.
Observation
I think everyone who reads this blog who's American, first thing on Monday morning, needs to call their Representatives and Senators and say: No. Blank. Checks. For. Crooks.
Be as polite as you can be and don't use bad words. Personally, this injunction may limit the duration of my calls to under a thirtieth of a second, or shorter.
TO CLARIFY. Look, right now the choice is, Bush's Plan, or Something Else. Kill Bush's Plan now, worry about Something Else later.
Be as polite as you can be and don't use bad words. Personally, this injunction may limit the duration of my calls to under a thirtieth of a second, or shorter.
TO CLARIFY. Look, right now the choice is, Bush's Plan, or Something Else. Kill Bush's Plan now, worry about Something Else later.
Saturday, September 20, 2008
What To Do
Obviously the administration proposal, whatever the need for some sort of government intervention, is basically insane and no lawmakers should support it. The question is how do we do anything about it? Social Security was an easier battle because it was about making it radioactive for lawmakers to do anything but say "Hell no." This is a bit trickier.
Great Moments In Legislative Proposals
This is my favorite bit. Well, aside from the whole SEVEN HUNDRED BILLION DOLLARS part.
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
I Suppose I Appreciate The Honesty
They could've released a complicated plan which appeared to have controls and oversight but which would be hard to decipher from the language. Instead they made it plain for all to see that what they want is to be able to take money from you and give it to Wall Street firms.
Deep Thought
Any member of Congress who looks at the plan to give Hank unchecked power to transfer $700 billion from the Treasury to his friends' companies and has any reaction other than "You've got to be fucking kidding me" does not deserve to hold office.
Everybody's Wrong About Everything
And just for the record, none of this will usher in a new golden age of sensible financial regulation or anything like that. We're bringing the punchbowl back to the party.
Party on!
Party on!
Fantasies
I really don't get where the fantasies that the US Gov. could actually make money by buying up these crappy assets then reselling them. The only way this kind of bailout can work is if they're bought for highly inflated values, as all of the players made highly leveraged bets. A 50% haircut won't bail anyone out. This is just the liquidity problem fantasy. It just isn't what's going on here. People lost lots of money.
0 To $1 Trillion In 4 days Flat
It's fascinating to watch how easily consensus is manufactured. A few days ago elite opinion seemed to be cheering Paulson's "no bailout" line, and now they're cheering a trillion bucks thrown down the crapper. All the Very Serious People will spend their days coming up with their pony plans, oblivious to the fact that the pony plan is not an option. The Bush administration's plan is the option. We've seen this game played before.
It's unrealistic to imagine that I'd be able to really get enough honest information to have an informed opinion, but I spent some time thinking about what question all the Very Serious People should, at a minimum, want answered before the start cheering on pony plans. This is what I came up with:
And, no, tumbling stock prices or babble about "deteriorating credit conditions" don't count. Bernanke, Paulson, the SEC, the FDIC should have had access to a set of facts independent of day to day market turmoil. What actually changed over the week? If it was new information, what was it? If it was newly discovered information, why didn't you know it before?
It's unrealistic to imagine that I'd be able to really get enough honest information to have an informed opinion, but I spent some time thinking about what question all the Very Serious People should, at a minimum, want answered before the start cheering on pony plans. This is what I came up with:
What changed between Monday and Friday? What new information did you have at the end of the week that you did not have at the beginning of the week which caused you to go from $0 to $1 trillion?
And, no, tumbling stock prices or babble about "deteriorating credit conditions" don't count. Bernanke, Paulson, the SEC, the FDIC should have had access to a set of facts independent of day to day market turmoil. What actually changed over the week? If it was new information, what was it? If it was newly discovered information, why didn't you know it before?
Here's A Proposal
Dear Mark:
As the Iraq war was not "Tom Friedman's war," the coming bailout will not be "Mark Thoma's bailout."
Love,
Atrios.
As the Iraq war was not "Tom Friedman's war," the coming bailout will not be "Mark Thoma's bailout."
Love,
Atrios.
Get Nervous
Krugman:
This has been the problem all along, the pretense that all problems are just liquidity problems. Until another bank goes under. Then, well, they were bad, but for everyone else it's just a liquidity problem!
Again, the problem is that lots of bad loans were made, lots of people made highly leveraged investments in those bad loans, and still more people bet on those loans by insuring them. The loans are bad. The mortgages are not going to be repaid in full. Housing prices are not going to magically shoot up 50% over the next 6 months. People gambled and lost and now the Democrats are racing to bail them all out.
I don't have enough information to really know what should be done, but I do know that the people talking about the problem are largely still misdiagnosing it. If they don't know what the problem actually is, or if they're being dishonest about it, the solution is unlikely to be a good one.
- Here’s the source of my uneasiness: the underlying premise behind the buyout seems, still, to be that this is mainly a liquidity problem. So if the government stands ready to buy securities at “fair value”, all will be well.
This has been the problem all along, the pretense that all problems are just liquidity problems. Until another bank goes under. Then, well, they were bad, but for everyone else it's just a liquidity problem!
Again, the problem is that lots of bad loans were made, lots of people made highly leveraged investments in those bad loans, and still more people bet on those loans by insuring them. The loans are bad. The mortgages are not going to be repaid in full. Housing prices are not going to magically shoot up 50% over the next 6 months. People gambled and lost and now the Democrats are racing to bail them all out.
I don't have enough information to really know what should be done, but I do know that the people talking about the problem are largely still misdiagnosing it. If they don't know what the problem actually is, or if they're being dishonest about it, the solution is unlikely to be a good one.
As We Have Done
Even more than the letting them get away with lying part, it's absurd that the media is letting McCain get away with this big government populist bullshit. Aside from his brief flirtation with campaign finance reform, McCain has never shown any interest in regulation of any kind.
I KEEDED
At Drinking Liberally the other night, I joked that any sane insurance company would've priced this $10 million insurance policy at precisely $10 million.
Friday, September 19, 2008
GOP Daddies In Nice Suits
Told the Democrats that Something Very Serious Was Happening and Something Needs To Be Done. So predictable.
WASHINGTON — It was a room full of people who rarely hold their tongues. But as the Fed chairman, Ben S. Bernanke, laid out the potentially devastating ramifications of the financial crisis before congressional leaders on Thursday night, there was a stunned silence at first.
Mr. Bernanke and Treasury Secretary Henry M. Paulson Jr. had made an urgent and unusual evening visit to Capitol Hill, and they were gathered around a conference table in the offices of House Speaker Nancy Pelosi.
“When you listened to him describe it you gulped," said Senator Charles E. Schumer, Democrat of New York.
Lying Or Stupid
As always I'm not sure the distinction matters all that much, but I suppose I'm a bit curious.
Lining Up At The Trough
I'm surprised MBIA and Ambac have listed this long. Hopefully it isn't too late for them to get in on the bailout action!
The Bag Holders
The mystery all along throughout all of this is who would be missing the seat when the music stopped, who would be left holding the bag.
This is not a liquidity crisis. It's an insolvency crisis. People made bad loans, and other people made hugely leveraged bets on those loans, and still more people insured those bets.
And now the taxpayer gets the bill.
WHEEEEEEEEEEEEEEEE
This is not a liquidity crisis. It's an insolvency crisis. People made bad loans, and other people made hugely leveraged bets on those loans, and still more people insured those bets.
And now the taxpayer gets the bill.
WHEEEEEEEEEEEEEEEE
Opportunities
Yglesias meekly suggests that maybe in the course of spending hundreds of billions of dollars to clean up after the Masters of the Universe, we could spend a nickel or two to help poor people.
I'm not optimistic. I know how Democrats react when GOP Daddies in nice suits sit them down and explain What Needs To Be Done. See FISA bullshit, Iraq war, etc...
I'm not optimistic. I know how Democrats react when GOP Daddies in nice suits sit them down and explain What Needs To Be Done. See FISA bullshit, Iraq war, etc...
Feldstein
I hadn't realized Martin Feldstein was on the AIG Board of Directors. It seems he no longer teaches the Harvard intro economics course, which is a shame because it would be an excellent platform to explain his new love of socialism.
Faith In The System
Not in the mood to call anyone out, but I am struck by the faith of some that the Wise Men In Nice Suits know what they're doing, conveniently ignoring the fact that these people let this disaster happen in the first place.
Viva Capitalism!
Woke up a bit late, but caught a bit of Paulson's presser. Apparently we're all supposed to buy into this fantasy that this is all just a liquidity crisis which can only be solved by the government buying up hundreds of billions of dollars of bad debt.
WHEEEEEEEEEEEEEEEEEEEEEEEEEEE
WHEEEEEEEEEEEEEEEEEEEEEEEEEEE
Morning Thread
Does that new insurance company I now own, protect me from the predatory lenders that supposedly owe me money?
Thursday, September 18, 2008
Viva Capitalism!
NYT:
- WASHINGTON — The head of the Treasury and the Federal Reserve began discussions on Thursday with Congressional leaders on what could become the biggest bailout in United States history. While details remain to be worked out, the plan is likely to authorize the government to buy distressed mortgages at deep discounts from banks and other institutions. The proposal could result in the most direct commitment of taxpayer funds so far in the financial crisis that Fed and Treasury officials say is the worst they have ever seen.
Those Condos Don't Buy Themselves
Absent the Wall Street bloodbath I wouldn't have been to surprised if New York City had mostly survived the housing bubble unscathed. But with all these high end jobs starting to dry up...
"America's Adversaries"
Just saw that quote on CNN.
We have always been at war with Spain.
...just noticed the time stamp is still stuck, even though posts are going out in the right order. I didn't post all of these simultaneously at 10:46.
We have always been at war with Spain.
...just noticed the time stamp is still stuck, even though posts are going out in the right order. I didn't post all of these simultaneously at 10:46.
Resume Padding
Weird. I met her a couple of times. Just not something you can get away with in academia, at least not once you get caught anyway.
Lan-Lan Wang has had a distinguished career in academic dance. She’s founded dance companies. She was one of the first American modern dancers to perform in China after the Cultural Revolution, and she promoted numerous exchanges with China. She won grants from top foundations. She taught at the University of Iowa and the University of California at Los Angeles and, since 1994, at Connecticut College, serving for much of that time as department chair. She may never have earned a degree — although she claimed two.
And what’s certain is that she did not earn either of the two degrees she claimed — a bachelor’s and master’s from the University of Iowa. As a result, she quit her position as professor and interim chair, Connecticut College announced Monday.
Gramm
Since we've entered the phase where McCain just talks gibberish and we're left to try to interpret, I do have to wonder if he has any clue what he's talking about with respect to regulation. I'm reasonably sure the answer is "no," but I'm curious if he's run his new ideas past his good friend Phil "whiners" Gramm.
Obama's Latino Problem
It occurs to me the only Obama "problem" that hasn't been talked about this election cycle is his "African-American problem," though maybe I missed a Fox segment with Armstrong Williams.
Bold Thinking
We probably couldn't simply go to war with Spain, but we could do one of our little special operations and fund rebel groups in Catalunya and the Basque region in hopes that they would topple their dictator in Madrid and enjoy the benefits of peeance and freeance forever.
It's what we do, after all.
Catalunya Lliure!
It's what we do, after all.
Catalunya Lliure!
McCain's World
The dirty little secret about John McCain is that he really knows nothing about anything. He's as incurious and ignorant as George Bush, with less excuse. So, yes, it makes sense that his people would rather suggest and end of relations with our NATO ally than reveal the truth about their woefully inadequate candidate.
Abortion
It's heartening that Obama is running on the issue, rather than running from it as Democrats often do. Everybody already knows that Democrats are going to force you to gay marry your aborted fetuses, so the smart thing to do is show leadership on these culture war issues.
Leverage
Probably time to dust off our Galbraith. From A Short History of Financial Euphoria:
It's always about leverage.
All subsequent financial innovation has involved similar debt creation leveraged against more limited assets with only modifications in earlier design.
It's always about leverage.
Hack
The sad thing is that few of these people will acknowledge that they simply got played, and instead want to cast McCain as a character in a play about a man's tragic downfall. He was always an unprincipled hack, but for a very long time his political fortunes were the result of his understanding of and willingness to cater to the desires of elite Villagers. Now he has a different target.
Thursday Is New Jobless Day
Still very high.
- The number of U.S. workers filing new claims for jobless benefits rose unexpectedly by 10,000 last week, as the first wave of job losses from Hurricane Gustav rolled in after reporting delays in Louisiana, the Labor Department reportedThursday. Initial claims for state unemployment insurance benefits rose to a seasonally adjusted 455,000 during the week ended Sept. 13 from 445,000 the prior week. Analysts polled by Reuters had forecast claims to drop to 440,000 last week.
And Without A Peep
Yglesias:
And who imagined it that when it would die, its death would be confronted with deafening silence. Oh I miss the good old days when lecturing Latin American countries for their bad economic policies was what all the cool kids did.
- Who knew the “Washington Consensus” would die in Washington, DC under a Republican President in a mad fit of bailouts and nationalizations?
And who imagined it that when it would die, its death would be confronted with deafening silence. Oh I miss the good old days when lecturing Latin American countries for their bad economic policies was what all the cool kids did.
More coffee, please.
Blast from the past: Any minute now I'm sure someone will tell me it's all good.
[Update: That link may have confused people, as I often do when I don't bring people on my tangents with me. We return you now to more current news.]
Signed,
Not Atrios
[Update: That link may have confused people, as I often do when I don't bring people on my tangents with me. We return you now to more current news.]
Signed,
Not Atrios
Wednesday, September 17, 2008
Morgan Stanley
Maybe he was just referring to sex or procreation? It's a bit harder to make it without a partner.
Late Evening Thread
Deep Thought: The American version of The Office has surpassed the British version.
--Molly I.
--Molly I.
Panic
A common question I've been getting from friends lately is, "Are you panicking yet?" The answer is no, I've never been panicking. I've long thought this will be a close election, that Obama will win by taking Kerry states and a couple more.
WaMu Watch
CNBC sez WaMu may be starting the process to put itself up for auction.
...more:
...more:
- Washington Mutual, the struggling savings and loan, has been working on several efforts to save itself, including a potential sale, people briefed on the matter said Wednesday. Goldman Sachs, which Washington Mutual has hired, started the process several days ago, these people said. Among the potential bidders that Goldman has talked to are Wells Fargo, JPMorgan Chase and HSBC. But no buyers may materialize. That could force the government to place Washington Mutual into conservatorship, like IndyMac, or find a bridge-bank solution, which was extended to thrifts in the new housing regulations.
Time Stamps
Blogger time stamps seem to be stuck in this morning, so if you see some post shuffling it's because I forget that and fail to update it manually.
High Comedy
I get that McCain needs Palin at his campaign rallies because otherwise no one shows up, but in a very serious non-concern troll way can I suggest to the McCain campaign that appearing on Larry King together is a really bad idea.
...it appears they're following my advice and won't be appearing after all.
...it appears they're following my advice and won't be appearing after all.
The Absurdity Of CNBC
The entire financial system is practically collapsing and they're lamenting the possibility of more regulation. I don't think the sports/referee metaphor is perfect, but it's probably good enough. People who prattle on about "the free market" are usually too stupid to have a clue how complicated and pervasive the "rules" had to be to to get a well-functioning modern market system: sophisticated concepts of contracts and enforcement, property rights, legal entities, proper accounting, bankruptcy, limited liability, etc... etc..., did not descend from the heavens but were, in fact, created.
Lies and the Lying Liars
Gordon Smith edition.
WALLA WALLA, Wash.—U.S. Sen. Gordon Smith (R-Ore.) reacted quickly last week when WW quoted multiple sources inside and outside Smith’s vegetable-packing plant in Eastern Oregon saying his company has long hired illegal immigrants.
The senator called the cover story, “Señor Smith” (WW, Sept. 10, 2008), completely “false.”
“I have never had such a hit-piece hatchet-job slimeball done to me before in my 16 years in public life,” Smith told KXL radio host Lars Larson the same day WW published “Señor Smith”. “The policy of that company is to obey the law and document every worker.”
...
WW returned to Eastern Oregon and Washington last week and found five workers who are—or were—undocumented when they worked for Smith Frozen Foods or a second related business owned by Smith, who’s running for re-election against Democrat Jeff Merkley in one of the nation’s most closely watched Senate races.
WaMu Watch
Assuming no buyer shows up, market wisdom suggests the strong likelihood that some upcoming Friday, at about 8PM EST, the FDIC will quietly add it to their failed bank list. And then the FDIC will probably need to be bailed out.
Muddle
I'm doing my best here to come up with a simple and coherent liberal message about what's going on in our new socialist republic. It's hard to get past the hilarity of all the supposed free market worshippers in our government and on CNBC cheering this on.
And I have no idea if this bailout was a good thing or a bad thing. I don't have enough information to make that determination.
The real issue is that you need a sensible regulatory framework to prevent financial crises from happening in the first place and criteria and practices for dealing with them when they do, along with a sensible and consistent broad social safety net for individuals and families for when crises happen to them.
It might have been the right thing to run down to the river with buckets to collect water to throw on the burning building, but it would have been much better to have better fire codes and a functioning fire department.
And I have no idea if this bailout was a good thing or a bad thing. I don't have enough information to make that determination.
The real issue is that you need a sensible regulatory framework to prevent financial crises from happening in the first place and criteria and practices for dealing with them when they do, along with a sensible and consistent broad social safety net for individuals and families for when crises happen to them.
It might have been the right thing to run down to the river with buckets to collect water to throw on the burning building, but it would have been much better to have better fire codes and a functioning fire department.
Deep Thought
Now that the government is running the biggest insurance company in the world, shouldn't we elect a president who is qualified to run a large company?
Optimism!
Yglesias:
I'll admit to instinctively sharing this view. But I think it's largely based on the knowledge that there are smart technocrats who know what they're doing, and not on the reality that while those these people exist they probably aren't actually steering the ship. George Bush, Chris Cox, Dick Cheney, and Henry Paulson are.
WHEEEEEEEEEEEEEE
Now of course to actually get down to the depths of the Depression required some policy blunders that I think it’s extremely unlikely anyone in the contemporary United States will undertake.
I'll admit to instinctively sharing this view. But I think it's largely based on the knowledge that there are smart technocrats who know what they're doing, and not on the reality that while those these people exist they probably aren't actually steering the ship. George Bush, Chris Cox, Dick Cheney, and Henry Paulson are.
WHEEEEEEEEEEEEEE