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Giddy? 28 September 2008

Posted by marisacat in DC Politics, Inconvenient Voice of the Voter, U.S. House, U.S. Senate, WAR!.
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The first shot run with the middle of the night NYT story of a possible deal… LOL I noted their demeanor at the time I linked to the story….

In a bit they changed the pic. (The schnauzers at NRO caught it.)

zz

I can’t imagine why…

^^^

The 106 page or 150 page draft document, page count depending on whom one listens to… is online at

http://www.financialservices.house.gov OR  http://speaker.house.gov (Merry Christmas!  Just not to you or me!)

If one can get thru!

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Comments»

1. Madman in the Marketplace - 28 September 2008

seriously, do they just have to call an editor and the Times will change anything. That top pic up there is MUCH more telling about their attitudes.

2. marisacat - 28 September 2008

AND this is the full size of the first photo, the jovial group, on my page Reid got cut off the right end. I did nto download and resize from the NRO The Corner, I jsut snitched it… ;)

3. mattes - 28 September 2008

They look like someone sold their last dollar.

4. diane - 28 September 2008

jeez..Nancy’s, barely able to bite down that glee, the first shot looks actually less mean spirited then the second. And Paulson, what can one say, he looks like a deformed penis with a pricey blue suit .

Where’s the shot where they yucked it up and gave the finger to the camera?………So similar to that creepy white house/bat room victory shot, sans soundtrack, well before the election results, in 2004.

5. marisacat - 28 September 2008

AND via UK Telegraph, this is the so giddy (if persuasive at the point of a knife) backdrop to Giddy One, as opposed to Barely Holding in The Giggles 2;

Officials close to Paulson are privately painting a far bleaker portrait of the fragility of the global economy than that advanced by President George W Bush in his televised address last week.

One Republican said that the message from government officials is that “the economy is dropping into the john.” He added: “We could see falls of 3,000 or 4,000 points on the Dow [the New York market that currently trades at around 11,000]. That could happen in just a couple of days.

“What’s being put around behind the scenes is that we’re looking at 1930s stuff. We’re looking at catastrophe, huge, amazing catastrophe. Everybody is extraordinarily scared. It’s going to be really, really nasty.”

Investors fretted about contagion into Europe, where Fortis, which was part of the consortium that bought ABN Amro last year, fired its chief executive after liquidity concerns pushed shares down more than 20pc to a 14-year low. Holland’s ING and BNP Paribas are looking at buying the bank this weekend.

London investors have warned that the FTSE could suffer falls of as much as 1,000 points – a fifth of its value, if the deal falls through.

Peter Spencer, economic adviser to the Ernst & Young Item Club, said: “This is the time you have to bail people out and ask questions later. It is very difficult to see how the US banking system would survive without that.This has the potential to make 1929 look like a walk in the park.”

Senator Harry Reid of Nevada, the majority leader, said: “We hope sometime [Sunday] evening we can announce some kind of agreement in principle. We may not have another day.”

He always did look like an undertaker. A sick half dead one.

6. liberalcatnip - 28 September 2008

Comment in kos’ FP post

kos is supporting House republicans (2+ / 0-)

Never thought I’d see that. Kos is just supporting the right wing with this position, and his enormous influence is endangering us all.

by undersiege on Sun Sep 28, 2008 at 04:03:50 PM PDT

haha

7. diane - 28 September 2008

5

Well if there was supposed to be a pic at the giddy 2 link, they either quickly disappeared it, or I didn’t have some sort of scripting allowed which usually isn’t the case unless it’s a video….I guess it’s just as well, why torment myself………..

He always did look like an undertaker. A sick half dead one.

maybe he’s related to Ratsinger’s groomer elf…….

8. marisacat - 28 September 2008

ooo scared! endangered!

Don’t they look silly.

9. marisacat - 28 September 2008

diane if you mean the link to hte NRO picture, in comment 2, I just used the link to the get to post at The Corner, the photo is still there.

10. marisacat - 28 September 2008

the link in 5 goes to a report at UK Telegraph.

11. diane - 28 September 2008

I was referring to five, oopsie

12. diane - 28 September 2008

By the way, I meant to thank you for that RBS link on the last thread catnip.

THE ROYAL Bank of Scotland is to be one of the biggest beneficiaries of the planned $700 billion bail-out that comes courtesy of the American tax-payer if the US Congress gives the financial rescue package the go-ahead this weekend.

Something so wrong with the whole bailout picture, and unfortunately most of us are not privy to the actual magnitude or not. It’s sounding more and more though, that the only crisis, was for folks already making obscene amounts of money, especially if the bulk of the banks in the US are doing quite well, thank you very much.

Could it be, that the only real crisis going on, is the one that’s been going on, average citizens, not invested in needing to own or rule the world at large, are falling through the cracks with no relief, or remorse from their oh so quaintly termed, “public servants”………………………

And certainly, while it sounds like perhaps more Republicans then Democrats are not on board with the bailout, I won’t be trusting anything they say either, after all they’re the ones who’ve been salivating for a flat tax, which would really be a gruesome affair.

13. marisacat - 28 September 2008

Rasmussen:

[T]he more voters learn about the proposed $700-billion taxpayer-backed Wall Street rescue plan, the less they like it. Most voters remain largely unworried about their own money, too.

Just 24% of U.S. voters now favor the plan first proposed by Treasury Secretary Henry Paulson a week ago and the subject of very public negotiations on Capitol Hill ever since, according to a Rasmussen Reports national telephone survey taken Friday night. Fifty percent (50%) oppose it, and 25% are undecided.

Six–out-of-10 voters (60%) remain worried that the federal government will do too much to bailout the ailing financial markets. Only 28% think the government will not do enough. […]

14. marisacat - 28 September 2008

And the Independent is promising a 1 trillion lbs sterling (LOL) burden on the UK taxpayer.

This level of taxpayer exposure to the fortunes of the housing market is unprecedented, and will leave the state as the second-largest provider of home loans, after Halifax Bank of Scotland. Indeed, if the taxpayer ever has to take on responsibility for that bank’s mortgage book the combined public sector debt and taxpayer exposure figure would rise to about 85 per cent of GDP, or about £1.2 trillion. That’s the sort of figure last seen in the early 1960s, when the British economy was desperately attempting to escape from its historic liabilities associated with paying for two world wars and the building of the welfare state. At that time the sheer size of the national debt made sterling very vulnerable to currency crises.

More uncomfortably for ministers are suggestions, reported over the weekend, that some UK bankers are looking to the Treasury to set up a “bad bank”, similar to the Paulson Plan in the United States. This would take on all the British banks “toxic assets” in the hope that the relief would allow them to rebuild their balances sheets, resume commercial lending, especially to each other, and boost the wider economy. Estimates of such a scheme are invariably guesswork, but in all events would not improve the state of the public finances.

15. marisacat - 28 September 2008

Chalmers Johnson on how often we appropriate numbers close to 700 Bil and toss it away, and how we should get out of the wars, if we hope to survive. Fat chance with either of the militarist and bloodletters on offer

This is pure waste. Our annual spending on “national security” — meaning the defense budget plus all military expenditures hidden in the budgets for the departments of Energy, State, Treasury, Veterans Affairs, the CIA, and numerous other places in the executive branch — already exceeds a trillion dollars, an amount larger than that of all other national defense budgets combined. Not only was there no significant media coverage of this latest appropriation, there have been no signs of even the slightest urge to inquire into the relationship between our bloated military, our staggering weapons expenditures, our extravagantly expensive failed wars abroad, and the financial catastrophe on Wall Street.

The only Congressional “commentary” on the size of our military outlay was the usual pompous drivel about how a failure to vote for the defense authorization bill would betray our troops. The aged Senator John Warner (R-Va), former chairman of the Senate Armed Services Committee, implored his Republican colleagues to vote for the bill “out of respect for military personnel.” He seems to be unaware that these troops are actually volunteers, not draftees, and that they joined the armed forces as a matter of career choice, rather than because the nation demanded such a sacrifice from them.

16. diane - 28 September 2008

15

Yeah, let alone the fact that money is not being used for the military personnel anyways, they’re being raped, and electrocuted coming out of their showers, with impunity, by the organizations the actual money is going to.

17. liberalcatnip - 28 September 2008

15.

the defense budget plus all military expenditures hidden in the budgets for the departments of Energy, State, Treasury, Veterans Affairs, the CIA, and numerous other places in the executive branch — already exceeds a trillion dollars, an amount larger than that of all other national defense budgets combined.

I was reading an early pre-Church commission 1970s book about the CIA this summer and I’m sure the author said that spending levels at that time were already at the trillion dollar mark thanks to the creative accounting they used back then too.

18. diane - 28 September 2008

Oh well, I guess when the shit gets really bad, and I can no longer find work, or afford rent, I’ll go somewhere with plenty sandbags, I loved Intermittent Bystander’s post about the sandbag homes, makes sense to me……………I don’t need anything so frikken large I can’t clean it, I always sit near a kitchen anway.

19. diane - 28 September 2008

17

The truly ugly thing is that people, especially children, are currently being way overmedicated by Big Pharma and Doctors with MBAs for being unable to cope in the militaristic, Big Brother society they live in , while those who make their livelihood from uneccessarily doping normal people and children to a point of stupor, or working in some vast, obscenely expensive, destruction industry, are considered completely normal.

20. liberalcatnip - 28 September 2008

20. I wrote a short story along those lines but I can’t remember if I posted it on my blog. I’ll check.

21. liberalcatnip - 28 September 2008

Oh yeah. Here it is. I couldn’t remember what I’d titled it. (Tired.)

22. raincat100 - 28 September 2008

I find it odd that Chuck Schumer is not in that photo.

23. liberalcatnip - 28 September 2008

22. Maybe he was too drunk on champagne by then.

24. raincat100 - 28 September 2008

but it was a photo op… i thought he never missed those. hmm…

25. diane - 28 September 2008

21

Thanks for the read! You ought to continue it if you haven’t catnip.

26. Madman in the Marketplace - 28 September 2008

Muslim Children Gassed at Dayton Mosque After “Obsession” DVD Hits Ohio

On Friday, September 26, the end of a week in which thousands of copies of Obsession: Radical Islam’s War Against the West — the fear-mongering, anti-Muslim documentary being distributed by the millions in swing states via DVDs inserted in major newspapers and through the U.S. mail — were distributed by mail in Ohio, a “chemical irritant” was sprayed through a window of the Islamic Society of Greater Dayton, where 300 people were gathered for a Ramadan prayer service. The room that the chemical was sprayed into was the room where babies and children were being kept while their mothers were engaged in prayers. This, apparently, is what the scare tactic political campaigning of John McCain’s supporters has led to — Americans perpetrating a terrorist attack against innocent children on American soil.

I read the story as reported by the Dayton Daily News,
http://www.daytondailynews.com/n/content/o… but this was after I had received an email written by a friend of some of the victims of these American terrorists. The matter of fact news report in the Dayton paper didn’t come close to conveying the horrific impact of this unthinkable act like the email I had just read, so I asked the email’s author for permission to share what they had written. The author was with one of the families from the mosque — a mother and two of the small children who were in the room that was gassed — the day after the attack occurred.

“She told me that the gas was sprayed into the room where the babies and children were being kept while their mothers prayed together their Ramadan prayers. Panicked mothers ran for their babies, crying for their children so they could flee from the gas that was burning their eyes and throats and lungs. She grabbed her youngest in her arms and grabbed the hand of her other daughter, moving with the others to exit the building and the irritating substance there.

“The paramedic said the young one was in shock, and gave her oxygen to help her breathe. The child couldn’t stop sobbing.

“This didn’t happen in some far away place — but right here in Dayton, and to my friends. Many of the Iraqi refugees were praying together at the Mosque Friday evening. People that I know and love.

“I am hurt and angry. I tell her this is NOT America. She tells me this is not Heaven or Hell — there are good and bad people everywhere.

I hate to break it to her, but this is EXACTLY America, or hasn’t she heard of school children killed by bombs down south, or in the snow out west, or at the MOVE headquarters in Philly, or et cetera.

This is exactly America, proud home of racist state-condoned terrorism.

27. Madman in the Marketplace - 28 September 2008

Senate Clears Defense Authorization Bill

The Senate cleared the fiscal 2009 defense authorization bill Saturday, sending the measure to President Bush for his signature.

Majority Leader Harry Reid , D-Nev., Reid, said earlier Saturday he would file a cloture motion on the bill (S 3001) if necessary to get the measure completed. But that did not prove necessary.

At about 4 p.m., the majority leader won unanimous consent to clear the legislation by voice vote.

Reid said that it appeared for a time that this year’s bill would not get cleared.“This is a great piece of work,” Reid said.

Both he and Senate Armed Services Chairman Carl Levin , D-Mich., hailed the work done on the bill by retiring Sen. John W. Warner of Virginia, a senior Republican on the committee who handled the drafting work on this year’s measure in the absence of ranking panel Republican John McCain of Arizona, the GOP presidential nominee.

Levin said final action on the bill was a “bittersweet moment” in his view, because it marked the end of his long, effective teamwork with Warner.

28. Madman in the Marketplace - 28 September 2008

KUCINICH: OPPOSES BAILOUT AND ASKS: “Is this the United States Congress or the board of directors of Goldman Sachs?”

“The $700 billion bailout for Wall Street, is driven by fear not fact. This is too much money in too a short a time going to too few people while too many questions remain unanswered. Why aren’t we having hearings on the plan we have just received? Why aren’t we questioning the underlying premise of the need for a bailout with taxpayers’ money? Why have we not considered any alternatives other than to give $700 billion to Wall Street? Why aren’t we asking Wall Street to clean up its own mess? Why aren’t we passing new laws to stop the speculation, which triggered this? Why aren’t we putting up new regulatory structures to protect investors? How do we even value the $700 billion in toxic assets?

“Why aren’t we helping homeowners directly with their debt burden? Why aren’t we helping American families faced with bankruptcy. Why aren’t we reducing debt for Main Street instead of Wall Street? Isn’t it time for fundamental change in our debt based monetary system, so we can free ourselves from the manipulation of the Federal Reserve and the banks? Is this the United States Congress or the board of directors of Goldman Sachs? Wall Street is a place of bears and bulls. It is not smart to force taxpayers to dance with bears or to follow closely behind the bulls.

29. Madman in the Marketplace - 28 September 2008

NO national coverage of the gassing of that mosque evident on Google News. Can you imagine if someone did that to a Southern Baptist or Catholic church?

30. diane - 28 September 2008

29

Yeah, I sure didn’t see that one anywhere on a site that regularly provides US news links from tons of sources, local and national, every five minutes, looks like it was totally blacked out.

31. diane - 28 September 2008

My my, this looks promising, all three quarters page of it, undecipheral additions to already worthless US Code which most US Citizens don’t have a clue how to access (will see if I can find a link to the full USC, last time I looked I couldn’t find it in its entirety:

….
SEC. 124. HOPE FOR HOMEOWNERS AMENDMENTS. 9
Section 257 of the National Housing Act (12 U.S.C. 10
1715z-23) is amended— 11
(1) in subsection (e)— 12

(A) in paragraph (1)(B), by inserting be- 13
fore ‘‘a ratio’’ the following: ‘‘, or thereafter is 14
likely to have, due to the terms of the mortgage 15
being reset,’’; 16

(B) in paragraph (2)(B), by inserting be- 17
fore the period at the end ‘‘(or such higher per- 18
centage as the Board determines, in the discre- 19
tion of the Board)’’; 20

(C) in paragraph (4)(A)— 21
(i) in the first sentence, by inserting 22
after ‘‘insured loan’’ the following: ‘‘and 23
any payments made under this para- 24
graph,’’; and 25
70

(ii) by adding at the end the fol- 1
lowing: ‘‘Such actions may include making 2
payments, which shall be accepted as pay- 3
ment in full of all indebtedness under the 4
eligible mortgage, to any holder of an ex- 5
isting subordinate mortgage, in lieu of any 6
future appreciation payments authorized 7
under subparagraph (B).’’; and 8
(2) in subsection (w), by inserting after ‘‘ad- 9
ministrative costs’’ the following: ‘‘and payments 10
pursuant to subsection (e)(4)(A)’’.
….

(From page 69 to 70 of the “financialservicehouse.gov” version of the bail out)

32. marisacat - 28 September 2008

27

Levin said final action on the bill was a “bittersweet moment” in his view, because it marked the end of his long, effective teamwork with Warner.

Thanks for the wars sweeties.

33. diane - 28 September 2008

Here’s one US Code (USC) link, I should qualify my comment above, the last time I looked much of what was available was not up to date. This Cornell link states it’s the most recent release from the House.

And look at this bullshit provided by our dear government for non attorney access, a fucking 2000 version Yes, as a citizen, you’re required to know the law, but given no affordable access to it.

34. diane - 28 September 2008

Knew I’d find this rot, from page 88:

SEC. 132. AUTHORITY TO SUSPEND MARK-TO-MARKET AC- 8
COUNTING
. 9

(a) AUTHORITY.—The Securities and Exchange Com- 10
mission shall have the authority under the securities laws 11
(as such term is defined in section 3(a)(47) of the Securi- 12
ties Exchange Act of 1934 (15 U.S.C. 78c(a)(47)) to sus- 13
pend, by rule, regulation, or order, the application of 14
Statement Number 157 of the Financial Accounting 15
Standards Board for any issuer
(as such term is defined 16
in section 3(a)(8) of such Act) or with respect to any class 17
or category of transaction if the Commission determines 18
that is necessary or appropriate in the public interest and 19
is consistent with the protection of investors.
20
[THE FUCKING ACCOUNTING STANDARD WAS PUT IN PLACE FOR INVESTORS]

(b) SAVINGS PROVISION.—Nothing in subsection (a) 21
shall be construed to restrict or limit any authority of the 22
Securities and Exchange Commission under securities 23
laws as in effect on the date of enactment of this Act. 24

….

That Accounting Standard can be viewed via a link on this page (you have to click ok to FASB’s website terms to open it) scrolling down to:

Statement No. 157
Fair Value Measurements

(Issue Date 09/06)

From the Statement 157 Summary

….
The definition of fair value retains the exchange price notion in earlier definitions of fair value. This Statement clarifies that the exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability in the market in which the reporting entity would transact for the asset or liability, that is, the principal or most advantageous market for the asset or liability. The transaction to sell the asset or transfer the liability is a hypothetical transaction at the measurement date, considered from the perspective of a market participant that holds the asset or owes the liability. Therefore, the definition focuses on the price that would be received to sell the asset or paid to transfer the liability (an exit price), not the price that would be paid to acquire the asset or received to assume the liability (an entry price).

….

35. baypraire - 28 September 2008

the producer of the propaganda dvd’s “what is”, from the film’s website.

What is Clarion? Clarion is an independent, non-partisan, non-profit organization created to educate the public about national security issues such as radical Islam. Its donors are Christians, Jews, and Muslims and include Democrats, Republicans, and Independents. Clarion has made Obsession DVDs available to a national audience through newspaper insertions, national magazine insertions, and as an online download.

here’s the scoop.

Clarion Fund

Clarion Fund is a nonprofit organization founded in 2006 based in New York City whose mission, according to its website, is “to educate Americans about issues of national security,” with its main focus on what it calls “the most urgent threat of radical Islam.”[1] The organization was founded by Israeli-Canadian film producer Raphael Shore[2].

In September 2008, the group gained attention by distributing, with the aid of the Endowment for Middle East Truth[3], free copies of the film Obsession: Radical Islam’s War Against the West, produced and co-written by Shore, by mail and in newspaper supplements.[4]. The Fund has reportedly sent 28 million DVDs to at least 70 newspapers in swing states to place at the doorstep of newspaper subscribers.[1][2]

According to Clarion Fund’s incorporation papers, it is based as the same address as Aish Hatorah, an Israeli organization.[5] The three founders of The Clarion Fund are or were full-time employees of Aish HaTorah.[6] Raphael Shore, the leader of The Clarion Fund is also a full-time employee of Aish HaTorah.[7] The Clarion Fund has collaborated with pro-Israel media watch organization HonestReporting in the production of its films. HonestReporting originally was a project of the Aish Hatorah organization.[8]

36. baypraire - 29 September 2008

for those of you who enjoy the thread antics of the little colonel, he’s in fine form this evening.

Be a Grown-Up

by BooMan
Sun Sep 28th, 2008 at 11:48:29 PM EST

from the comments

For starters, every blogger that says this is a $700 billion outlay is a liar. Everyone that says it is primarily a bailout to reward Wall Street is a liar. Everyone that says it has no oversight is a liar. Everyone that suggests the Bushies can just spend all the money any way they want is a liar. I haven’t seen any honest blogging on this at all.

by BooMan on Mon Sep 29th, 2008 at 12:48:01 AM EST

maybe boober could solicit one of his pondpeople into purchasing him a uniform

37. aemd - 29 September 2008

Via Bernard, Congressional Charade

“It makes clear that everyone understands that turning Hank Paulson’s three pager into a 110 page draft made for a nice fig leaf but made virtually no substantive difference.”

Also Analyzing The Bailout is an interesting read.

“What’s in this massive bailout Congress wasted the whole weekend negotiating? We just wasted our Sunday evening reading all 110 pages to find out.”

38. marisacat - 29 September 2008

bay, what a scream that link is! Booman as Frist! Booman as tired, limp tool of the tired, limp, Bush supporting Democrats!

Re: Be a Grown-Up (none / 0)

Nobody is going to be prosecuted, and no regulations of any meaning will be enacted.

No matter how many times progressives get screwed, they keep pulling down their pants. No wonder they are considered weak.

nalbar

by nalbar (nalbarsatgmaildotcom) on Mon Sep 29th, 2008 at 01:34:39 AM EST
[ Parent ]

Re: Be a Grown-Up (none / 0)

nalbar, you are suffering from battered-wife syndrome while accusing others of the same thing. That’s called ‘projecting’.

This is the biggest government intervention since the 1930’s and it will have some heads on pikes.

by BooMan on Mon Sep 29th, 2008 at 01:37:40 AM EST
[ Parent ]

Re: Be a Grown-Up (none / 0)

HMMM,

how pleasant.

Now not only am I a lier, but I am a beat up victim.

Tonight you are being a jackass. I think I would prefer to be a victim.

nalbar

by nalbar (nalbarsatgmaildotcom) on Mon Sep 29th, 2008 at 01:46:15 AM EST
[ Parent ]

39. marisacat - 29 September 2008

HA! Some writer on Politico is calling it “The 700 Club”.

About right, I’d say….

40. marisacat - 29 September 2008

Not to worry!

Reid says it “protects the workers, the American taxpayer”

41. marisacat - 29 September 2008

hmmm via Politico email:

Hollywood Reporter, ‘Futuristic series will depict mass exodus from US': ‘What if the current financial crisis in the U.S. becomes so severe that Americans start to flee the country? Welcome to ‘Americatown,’ a Chinatown-like enclave of U.S. immigrants in cities around the world. HBO is developing the futuristic drama series, which hails from writer Bradford Winters and producers Tom Fontana, Barry Levinson, Frank Marshall and Kathleen Kennedy. Set 25 to 40 years in the future, when the precipitous decline of the U.S. leads to a mass exodus of its citizens, ‘Americatown’ centers on a cluster of newly arrived American immigrants in a big foreign city. … In his research for ‘Americatown,’ Winters had explored possible nightmare scenarios that could bring the U.S. to a collapse decades down the road. Among these hypotheticals: the price of oil skyrocketing and natural disasters reaching catastrophic proportions.’

I’d add presidents who freeze in place rather than acting. I luv reading that both Ob and McC may not show for the 700 Billion Boondoggle / Crap Sandwich (courtesy of Boehner that last) vote.

This election is a fukign spat between spitters.

42. marisacat - 29 September 2008

down 300+ 6.56 am pt

43. aemd - 29 September 2008

The Fed throws more money at the problem.

“The Fed increased its existing currency swaps with foreign central banks to $620 billion from $290 billion to make more dollars available worldwide. The Term Auction Facility, the Fed’s emergency loan program, will expand to $450 billion from $150 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities.”

44. marisacat - 29 September 2008

still down 300..

at 8:18 am PT.

45. diane - 29 September 2008

The Monster That Ate Wall Street

…..

They’re called “Off-Site Weekends”—rituals of the high-finance world in which teams of bankers gather someplace sunny to blow off steam and celebrate their successes as Masters of the Universe. Think yacht parties, bikini models, $1,000 bottles of Cristal. One 1994 trip by a group of JPMorgan bankers to the tony Boca Raton Resort & Club in Florida has become the stuff of Wall Street legend—though not for the raucous partying (although there was plenty of that, too). Holed up for most of the weekend in a conference room at the pink, Spanish-style resort, the JPMorgan bankers were trying to get their heads around a question as old as banking itself: how do you mitigate your risk when you loan money to someone? By the mid-’90s, JPMorgan’s books were loaded with tens of billions of dollars in loans to corporations and foreign governments, and by federal law it had to keep huge amounts of capital in reserve in case any of them went bad. But what if JPMorgan could create a device that would protect it if those loans defaulted, and free up that capital?

What the bankers hit on was a sort of insurance policy: a third party would assume the risk of the debt going sour, and in exchange would receive regular payments from the bank, similar to insurance premiums. JPMorgan would then get to remove the risk from its books and free up the reserves. The scheme was called a “credit default swap,” and it was a twist on something bankers had been doing for a while to hedge against fluctuations in interest rates and commodity prices. While the concept had been floating around the markets for a couple of years, JPMorgan was the first bank to make a big bet on credit default swaps. It built up a “swaps” desk in the mid-’90s and hired young math and science grads from schools like MIT and Cambridge to create a market for the complex instruments. Within a few years, the credit default swap (CDS) became the hot financial instrument, the safest way to parse out risk while maintaining a steady return. “I’ve known people who worked on the Manhattan Project,” says Mark Brickell, who at the time was a 40-year-old managing director at JPMorgan.
…..

The Manhattan Project, how quaint, and none of these unreproachable titans of finance realized the monster they were creating…..okay….

Have a good day all………..

(oh, and just wow ….suffering from Battered wife syndrome,….projection??????? a blogger and a psychiatrist, how special, Pfizer may have a job for him……)

46. marisacat - 29 September 2008

Seomone jsut popped me this stunningly good article from Guardian/Observer:

[T]here has been a good deal of talk in recent weeks about imminent economic armageddon. In fact, this is far from being the end of capitalism. … This experiment in financial laissez-faire has imploded.While the impact of the collapse will be felt everywhere, the market economies that resisted American-style deregulation will best weather the storm. Britain, which has turned itself into a gigantic hedge fund, but of a kind that lacks the ability to profit from a downturn, is likely to be especially badly hit.

… The collapse of American power that is underway is the predictable upshot. Like the Soviet collapse, it will have large geopolitical repercussions. An enfeebled economy cannot support America’s over-extended military commitments for much longer. Retrenchment is inevitable and it is unlikely to be gradual or well planned.

[I expect the Federal government – and that means either winner in Nov – to steal from everywhere to prop up the wars, however… — Mcat]

Meltdowns on the scale we are seeing are not slow-motion events. They are swift and chaotic, with rapidly spreading side-effects. Consider Iraq. The success of the surge, which has been achieved by bribing the Sunnis, while acquiescing in ongoing ethnic cleansing, has produced a condition of relative peace in parts of the country. How long will this last, given that America’s current level of expenditure on the war can no longer be sustained?

An American retreat from Iraq will leave Iran the regional victor. How will Saudi Arabia respond? Will military action to forestall Iran acquiring nuclear weapons be less or more likely? China’s rulers have so far been silent during the unfolding crisis. Will America’s weakness embolden them to assert China’s power or will China continue its cautious policy of ‘peaceful rise’? At present, none of these questions can be answered with any confidence. What is evident is that power is leaking from the US at an accelerating rate. Georgia showed Russia redrawing the geopolitical map, with America an impotent spectator.

Having created the conditions that produced history’s biggest bubble, America’s political leaders appear unable to grasp the magnitude of the dangers the country now faces. Mired in their rancorous culture wars and squabbling among themselves, they seem oblivious to the fact that American global leadership is fast ebbing away. A new world is coming into being almost unnoticed, where America is only one of several great powers, facing an uncertain future it can no longer shape.

47. liberalcatnip - 29 September 2008

Where has Saudi Arabia – Bush’s BFF – been in all of this?

Meanwhile, Citigroup Buys Banking Operations of Wachovia

Pelosi just said on the floor that this crisis “snook up on us like little cat’s feet”. How poetic.

48. marisacat - 29 September 2008

“little cat feet”

so now they are like the former minor leaguer who, at 250 lbs, beat a 7 lb declawed cat to death, when it bit him?

49. liberalcatnip - 29 September 2008

48. I think she’s trying out lines to use in her upcoming children’s book, How the Wall Street and Government Grinches Stole Christmas, Your House, Your Car, Your College Education and Your Future.

50. liberalcatnip - 29 September 2008

Boehner: “These are the votes that separate the men from the boys and the girls from the women.”

Wow. There’s really BAD hyperbole flying around in DC today.

51. liberalcatnip - 29 September 2008

The house vote is on. Roll call time.

52. NYCO - 29 September 2008

Holy shirt… looks like it didn’t pass the House… the Dow just dropped THROUGH THE FLOOR.

53. NYCO - 29 September 2008

OMG Dow down 700 points…

54. marisacat - 29 September 2008

hmmm it may not make it to passage.

Down down over 600 pts.

Dow down over 7%

55. NYCO - 29 September 2008

Wow, that was 5 minutes of pure untrammeled terror on Wall Street. Dow coming back a little now that the shock has worn off.

56. marisacat - 29 September 2008

down 491 now

57. NYCO - 29 September 2008

Whoa, vote’s not over yet – they’re trying to switch votes and do-over.

58. liberalcatnip - 29 September 2008

The NYT reported that part of the drop was a reaction to the Wachovia sale.

59. marisacat - 29 September 2008

Ambinder 10 mins ago

The Bailout Failing; The Dow Plummets

29 Sep 2008 01:43 pm

More than 131 House Republucans and 95 House Democrats vote against it.

A rush to cash-in on T-bills...

Dow down nearly 600…

Will Pelosi hold the vote open to get 12 more votes?.

60. marisacat - 29 September 2008

… and this is only MONDAY. Long week.

61. liberalcatnip - 29 September 2008

The Counting of the Holy Hand Grenade has failed. Now what?

62. NYCO - 29 September 2008

It’s not over until they close the vote.

63. marisacat - 29 September 2008

Last i saw was 207 vs 226 with One Not Voting.

Just saw it again, still at that number, still open.

64. NYCO - 29 September 2008

It’s over, she just banged the gavel. Dow is down again. Hang on.

65. NYCO - 29 September 2008

No, wait apparently it’s not over.

Just don’t listen to me. I don’t know what I’m talking about.

66. marisacat - 29 September 2008

down 521

“my, markets seem to be sinking” LOL

Local NBC 11 am newsssssssssssssssss.

67. NYCO - 29 September 2008

Wait a second, they are trying some funny business now.

68. marisacat - 29 September 2008

Nasdaq down 133

69. marisacat - 29 September 2008

94 Dems against it…

70. marisacat - 29 September 2008

NBC national news is calling the vote “failed” AND that House will go home and come back THURSDAY

They wanna be home for the Jewish High Holies? WTF?

71. marisacat - 29 September 2008

Dems only managed to switch a single vote – and then it moved back to NAY.

Shit. Good luck.

AND this tells me few people like Pelosi Hoyer Rahm Van Hollen CLYBURN, etc. No calling in favors worked here, at least not this first vote…

Hey fuck them all.

72. marisacat - 29 September 2008

Jackie Spiers (US rep from So of the City and a swathe fo the City that is nto under Pelosi) calls into KGO to rally the troops!

“we got as much as we could into the bill in order to maintain a bi partisan bill” waaaaaaaa.

73. marisacat - 29 September 2008

Via The Page

Rep. Boehner and other Republicans say Pelosi’s partisan floor speech is to blame for the financial rescue bill’s defeat.

Rep. Boehner: “Americans are angry, and so are my colleagues.”

Rep. Cantor blames “a failure of Speaker Pelosi to listen” to members of both parties.

Lawmakers scramble after the financial rescue bill fails in the House, 205 yeas to 228 nays.

Read more.

No chance of a second vote Monday, “senior congressional staffer” tells CNBC.

Developing…

[waaaaaaaa]

74. liberalcatnip - 29 September 2008

CNN reporting that some Repubs are already heading home. Buh bye.

75. bayprairie - 29 September 2008

those pesky anarchists

Creative Destruction on the Left

by BooMan
Mon Sep 29th, 2008 at 09:40:48 AM EST

:::snip:::

In short, certain elements on the radical left are looking at the current crisis as an opportunity to ‘tear down the old order’, with little to no regard for the tumult that would ensue. Sure, it’s easy to demagogue this bailout. And it’s tempting. There are a lot of greedheads that deserve to get their comeuppance. If you want a revolution, you might be on board for a little creative destruction. If, however, you want to avoid losing your job and your retirement, you might want to listen to more prudent advice.

in the thread

Where’s the lie here????? (none / 0)

Faber says it will ultimately cost $5 trillion. He doesn’t say — nor did I imply — that this bill would cost $5 trillion.

You seem to be giving very Armando-like answers to a lot of the questions here.

There is a plethora of respected, non-lefty economists who think this bill is a bad idea, primarily because it has no chance of fixing the problem it supposedly is designed to fix. You can ignore them if you want, and set up your strawman arguments against Baker, but it doesn’t change the fact that this bailout is not what it is advertised to be, and, by estimates of a number of well-respected experts, will cost way more than whatever back-of-the-envelope number might be in this particular bill.

Soldiers are required to do their jobs when politicians fail to do theirs

by leftvet on Mon Sep 29th, 2008 at 02:27:52 PM EST

leftvet was one of the gainsville 8, indicted for conspiracy to incite a riot at the Republican Convention in 1972.

History You Never Knew: How I Caused Nixon’s Resignation
Originally posted by leftvet on 01/24/07

76. marisacat - 29 September 2008

Final

205 vs 228

And down is down 635

77. NYCO - 29 September 2008

And down is down 635

Great Freudian slip!

78. marisacat - 29 September 2008

74

going home for the Jewish High Holies. Which start in a few hours.. they are filing out. Not even a chance for a second vote today.

What a laugh it all is…

obamaRama calls for the markets to remain calm

whatev.

79. marisacat - 29 September 2008

down down down………………..

Man over board!

what a day.

80. marisacat - 29 September 2008

- 672

81. liberalcatnip - 29 September 2008

I think the Dow will end up being down 666. Mwahahaha…

82. CSTAR - 29 September 2008

Freeeefall….. S & P down 8,08 %

Usually this kind of thing is called extortion.

83. aemd - 29 September 2008

My, this is going well. ;-)

DJIA down 680 @ 15:36 ET

84. liberalcatnip - 29 September 2008

Here’s my version: Failure to Traunch

85. liberalcatnip - 29 September 2008

And the news just keeps getting worse: Medicaid long-term health care costs to soar. IN the meantime, of course, Gates predicts no sharp cuts in defense budgets.

86. marisacat - 29 September 2008

Down closed down 777

Apparently it now requires a drop of 10% for trading to be automtically halted, so it just fell fell….

87. NYCO - 29 September 2008

People are beginning to act weird. I saw lines at the local gas station on the way home. Not a typical sight. People think gas is going to be scarce or expensive… actually, when the economy craps out and demand for fuel drops, you may very likely see lower prices from time to time.

88. lucid - 29 September 2008

biggest point drop ever on both the Dow and S&P… I noticed that Cramer over at CNBC is frothing at the mouth saying that if the FDIC doesn’t step up insurance to $1 mil. per account the Dow will lose 2,500 points in the next 72 hours… such frothing!

89. lucid - 29 September 2008

NYCO – the thought crossed my mind that maybe I should pick up a months supply of rice and beans over the course of the next couple of days… and maybe cash out a couple of grand of my meager savings in case there are any serious bank runs…

90. liberalcatnip - 29 September 2008

86. Down closed down 777

That’s a spiritual number. Hmmm…

91. marisacat - 29 September 2008

bay at 75 out of Moderation!

Sorry for the delay!

****

90

I managed the Freudian slip again, did it without thinking…

92. NYCO - 29 September 2008

I got some mattress money out when Lehman went under. I’m so proud of myself that I didn’t fritter it away yet for gas or pizza money…

93. NYCO - 29 September 2008

BooMan is so out of it… does he realize that there are elements of the “Rockefeller Right” that would love to tear down the mess and establish a new world order too? If anything, they were cheering louder than the hippies today.

94. liberalcatnip - 29 September 2008
95. marisacat - 29 September 2008

According to Ben Smith:

The Dow’s close puts the stock market below where it was on President Bush’s first day in office.

96. marisacat - 29 September 2008

I freaked out a few months ago, last winter… and had a friend get cash for me to keep in the house, something i had never done. Took me af few days to figure out where to keep it, and then try not to forget where it was.

97. NYCO - 29 September 2008

It was more like symbolic mattress money for me. Stuff that might buy gas and food, nothing that would pay my bills…

98. NYCO - 29 September 2008

World markets should be tanking tonight. The New Zealand index, which usually reacts very mildly to problems, is absolutely tanking – on its way to 5% down (that’s a lot, for NZ).

99. marisacat - 29 September 2008

The Page links to list of NO votes AND a list of who is facing a race back home…

House seems to be in partisan rupture… what a hoot, what is new…and Ob and McC are pointing their big presidential FFFingers at each other.

Healing anyone? hmm?

100. lucid - 29 September 2008

97 – I would never keep enough cash around to ‘pay bills’… I’m only a month ahead as it is – and carrying debt. I was thinking just enough so I could eat for several months if need be.

101. NYCO - 29 September 2008

99. There is no American leadership. I suspect that fact is going to (finally) dawn on most of the world before the end of the week.

The only leaders and heroes are going to be the ones who are able to take care of their own (states taking care of themselves, municipalities and so on).

102. marisacat - 29 September 2008

Voting nay in McCain’s home state

A reader notes that all eight members of McCain’s Arizona delegation — four Democrats and four Republicans — voted “no.”

From the AP:

ARIZONA

Democrats — Giffords, N; Grijalva, N; Mitchell, N; Pastor, N.
Republicans — Flake, N; Franks, N; Renzi, N; Shadegg, N.

UPDATE: In Illinois — though Obama had staked less on his personal ability to win over doubters — the bill split the delegation 9-9, with one abstention. Democrats favored it narrowly, though former Obama antagonist Bobby Rush and his supporter Jesse Jackson Jr., like may in the Congressional Black Caucus, voted no.

UPDATE: Ryan Grim notes that Rush “went to the desk after the vote was over and changed from yes to no. So he was with Obama and the leadership if they needed him.” [Ben Smith/Politico, full text]

103. marisacat - 29 September 2008

101

absolutely right. there is no leadership, none. Not on either side. Including the big finger wag guys. And former finger wag guys.

104. NYCO - 29 September 2008

100. I’m very glad that I am able to work from home if need be. I have been trying for weeks to get remote access switched on for me and some of my coworkers (my immediate supervisor has to drive in 50+ miles every day)… it was taking forever to get it functioning but now it’s working, and not a moment too soon. Who knows?

But I’m glad I also live in a place that has semi-decent public transportation.

105. NYCO - 29 September 2008

LOL. Just saw a list of NY voters on the bailout bill… only 4 New Yorkers voted no. Guess who was among them… Maurice Hinchey (aka Mr. Liberal) and Randy Kuhl, scourge of the Kos Kidz.

And Kirsten Gillibrand, oddly enough.

106. marisacat - 29 September 2008

apparently house.gov is regularly crashing.

Inspires Confidence!

I never managed to get thru to the 110 page text last night and stopped trying. Not so with others apparently…

107. liberalcatnip - 29 September 2008

The TSX is down 900 pts.

108. marisacat - 29 September 2008

nu thred…………..

LINK

……………………. 8) …………………


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