Republican Judd Gregg, Author Of TARP, Now Promotes Superstition

What an embarrassing load of claptrap, here, from the Republican author of TARP, without any basis in facts, just pure superstition about dates, which is just a cover for the real point of the article, a weaseling defense of TARP in the face of Neil Barofsky's critical book on the subject, being released this week:

September is a month where unusual and often extremely damaging things seem to happen. It is the month that kicked off the Great Depression and led to Black Monday a month later. It also is the month in which, in 2008, the nation came close to a total economic collapse. ...

[T]here have been numerous sharp stock market downturns in September. Why these events seem to crowd into September is a subject of a great deal of conjecture.  There is no consistent answer. But it seems September is the point in the year where people assess where they have gone, and what the next year will be like, and make investment decisions based on their conclusions. ...

Unfortunately, this year, September may be a decisive month for the world and our nation’s economy. ...

This will probably be undeniably clear by September. ...

Not long, one suspects. September. ...

September has been a good time for such a reaction. ...

Municipalities, Others, May Have Lost Tens Of Billions Of Dollars On LIBOR-Tied Bonds

So says this story from The Fiscal Times:

As the world has learned in recent months, the banks behind Libor have been reporting incorrect lower rates to make their finances appear more stable. ...

The revelations sparked a major class action lawsuit filed earlier this year by the city of Baltimore, which entered into dozens of swap-based municipal bond contracts in the past decade that were tied to Libor. The suit accused more than a dozen financial institutions involved in setting Libor rates of engaging in a systematic conspiracy that resulted in “hundreds of millions, if not billions, of dollars in ill-gotten gains.”

“Just about every jurisdiction in the U.S. was affected,” said Michael Hausfeld, one of the attorneys representing Baltimore. “It affected hedge funds, money market investors, institutional investors. The total losses could exceed tens of billions of dollars.”

Possible LIBOR Penalties Hardly Match The Enormity Of The Crimes

CNBC reports, here:

Activity in the Libor investigation, which has been going on for three years, has quickened since Barclays agreed last month to pay $453 million in fines and penalties to settle allegations with regulators and prosecutors that some of its employees tried to manipulate key interest rates from 2005 through 2009. ...

Morgan Stanley recently estimated that the 11 global banks linked to the Libor scandal may face $14 billion in regulatory and legal settlement costs through 2014.

These sums are paltry in comparison with the enormity of the skim operation siphoning off profits on hundreds of trillions of dollars worth of transactions.

It almost sounds like the lowball fines were themselves defined by the very regulators already suffering from "regulatory capture".

Satyajit Das, here, provides an in-depth exploration of the LIBOR scandal which includes considerable speculation about the sums lost. He points out that by one unrealistic estimate up to $80 billion is involved, which means the actual damages are far south of that.

On the other hand, he includes this:

Many American corporations and municipalities entered into interest rates swaps where low rates would have resulted in significant losses. The International Monetary Fund estimates the amount lost by municipalities at US$250 billion to US$500 billion in 2010. If successful action is brought under US anti-trust regulation, then banks may be liable for punitive triple damages.

Investment bank Morgan Stanley estimates that losses to banks could total (up to) US$22 billion in regulatory penalties and damages to investors and counterparties, equivalent to around 4-13% of banks’ 2012 earnings per share and 0.5% of book value. In reality, it is difficult to accurately quantify potential losses.

It would seem as of this moment that both banks and regulators have a significant legal and financial interest in suppressing the actual extent to which those last in line for money were fleeced.

Neil Barofsky, TARP "Watchdog", Blasts Financial Fascism In New Book

And Gretchen Morgenson of The New York Times provides a favorable review, here:

He is Neil Barofsky. Remember him — the man whose job it was to police the $700 billion Troubled Asset Relief Program? And his new account, a book titled “Bailout” (Free Press), to be published on Tuesday, is a must-read. ...

He soon discovered that the [Treasury] department’s natural stance of marching in lock step with the banks meant that he had to question its policies and programs repeatedly to ensure that taxpayers weren’t at risk for fraud and abuse.

“The suspicions that the system is rigged in favor of the largest banks and their elites, so they play by their own set of rules to the disfavor of the taxpayers who funded their bailout, are true,” Mr. Barofsky said in an interview last week. “It really happened. These suspicions are valid.” ...

Meaningful changes to our broken system may finally come about, he writes, if enough people get angry. His conclusion is this: “Only with this appropriate and justified rage can we sow the seeds for the types of reform that will one day break our system free from the corrupting grasp of the megabanks.”

At the center of that whole sordid affair of regulatory capture at the time was Tim Geithner at Treasury, former head of The New York Federal Reserve Bank, who obviously isn't simply morally challenged with respect to paying his taxes, but also with respect to reporting LIBOR irregularities.

Unfortunately for us, we not only had two candidates for president in 2008 who voted FOR TARP (Sen. John McCain and Sen. Barack Obama), in 2012 the Republican candidate still defends it, as recently as March here in USA Today Away:

"There was a fear that the whole economic system of America would collapse, that all our banks or virtually all (banks) would go out of business," Romney told a town-hall-style forum in Arbutus, Md. "In that circumstance, President Bush and Hank Paulson said, 'We've got to do something to show we are not going to let the whole system go out of business.' I think they were right. I know some people disagree with me, I thought they were right to do that.".

And not only that, Romney is as unlikely as anyone to get angry about bailouts in future. We can't even get Romney to be angry about ObamaCare.

It's not even clear Obama's recent $100 million in attacks against Romney's personal character have made him mad, especially when it's the subject of speculation on conservative talk radio. Here Rush Limbaugh notes Romney "finally" gets ticked off about Obama's (plagiarizing) use of (Elizabeth Warren's) "you didn't build that", but even Rush isn't 100 percent convinced:

RUSH: You know, folks, I think this actually made Romney mad! I actually think that what Obama said finally ticked Romney off. I think Romney now has realized Obama is not a nice guy who's just befuddled and wrong. That was Romney's prior description of Obama: "He's a nice guy, just doesn't know what he's doing." I think this really got to Romney. Let's squeeze one more in here...

RUSH: Yes, siree bob! Something lit a fire. I am convinced that what Obama said actually has made Romney mad. Not in an insulting way. It has made him mad over what we're up against now. And, of course, as I say: The Obamaites are saying that their guy was "taken out of context." Right. Okay. ...

RUSH: Have you seen anything on Romney's speech in Irwin, Pennsylvania? "A little bit." Well, before we go to the break, let's play sound bite nine again and then follow it up with the last one. This is Romney on fire yesterday in Irwin, Pennsylvania, a suburb of Pittsburgh. He's really ticked off now, I think. This is about Obama saying (impression), "You started a business? You didn't do that! You didn't make that happen! You didn't build that. Uhhhh, you didn't -- you -- you -- you had help! You had a road, a bridge. You didn't do that."

And I think Romney is really ticked. I think there's now a fire burning under the posterior. So here are the two bites. Just bang 'em back-to-back, Mike.

If conservatives aren't sure if Romney's really angry, who is? The man is cool, I tell you, as in passionless, just like Obama. And that is the prerequisite for deception.

On the outstanding problems of our time, from massive bailouts of the banking system to government coercion in healthcare, Gov. Romney is on the same side as Obama and the Democrats.

Some choice!

Meanwhile, the American people just shrug.

A country that can't get angry about anything is a country that deserves what's coming to it (see France).

LA DEUDA ES LA ESCLAVITUD MODERNA

debt is modern day slavery

Libertarian John Tamny Excuses LIBOR Low-Balling Because It Didn't Hurt Anybody

John Tamny's logic fails on two counts.

Throwing out low-balled LIBOR rates along with the high rates, to achieve the average reported, misses the fact that the low-balled rates would have been higher if accurately reported, thus aggregating all reported interest rates paid on the low end higher up the ladder, necessarily boosting the level at which the lowest rates were thrown out and skewing the average higher.

Here he says it:

As readers are aware, the banks that participate submit what they estimate to be their cost of credit, and the 4-5 highest and lowest estimates are thrown out. ...

Of course assuming Barclays truly lowballed the number in question, its false estimate wouldn't have factored into the calculation. And if it did, as in if Barclays' estimates actually worked to lower various Libor-informed interest rates, then the borrowers on whom lenders allegedly predate would have been made better off.

No, false low estimates most certainly would have factored into the calculation precisely because their input at their true higher level was missing. 

But the real kicker is, so what if they succeeded at cheating! Big deal! At least borrowers got a better deal!

I don't know how much more morally obtuse you can get.

For some people, nothing more than materialism can be imagined, and they're usually either communists or libertarians. For both of them, the end justifies the means.

Hey Nolan You Hypocrite, Your "Home" Is Full Of Blood, Real And Imagined

There's nothing innocent and hopeful about the place you live in, you fraud.

Quoted here:

"The movie theater is my home, and the idea that someone would violate that innocent and hopeful place in such an unbearably savage way is devastating to me.”

Democrat Senator Pat Leahy Of Vermont Loves Violent Batman Film "Best Of The Three"

As reported here at The Hill:

The Vermont Democrat and big-time Caped Crusader fan got a sneak peek of “The Dark Knight Rises” at an advance screening Sunday in his home state and says he “Loved it.” The flick, which hits theaters Friday, is the last installment in the three-part series starring actor Christian Bale. ...

When asked how “The Dark Knight Rises” compares to the first two “Batman” films in director Christopher Nolan’s trifecta, the unlikely big-screen star beamed, “I liked it the best of the three.”


From a review which refuses to spoil it (how do you spoil what's already reeking?):

After the murderous clown heist, things slip downhill. A man's face is filleted by a knife, and another's is burned half off. A man's eye is slammed into a pencil. A bomb can be seen crudely stitched inside another man's stomach, which subsequently explodes. A trussed-up man is bound to a chair and set alight atop a pile of banknotes.

A plainly terrorised child is threatened at gunpoint by a man with a melted face. It is all intensely realistic. Oh but don't worry, folks: there isn't any nudity.

And by the way, the director of the film appears to have contributed funds to Sen. Pat Leahy's political campaign in 2010. Did I mention he was the Democrat Senator from Vermont? Not to be confused with the Socialist Senator from Vermont, Bernie Sanders?

Moral Failure Friday in Colorado Gives Way To Bank Failure Friday, Cinco Iteraciones

The 34th bank failure of 2012 is The Royal Palm Bank of Florida, Naples, Florida, costing the FDIC $13.5 million.

#35 is Georgia Trust Bank, Buford, Georgia, costing the FDIC $20.9 million.

#36 is First Cherokee State Bank, Woodstock, Georgia, costing the FDIC $36.9 million.

#37 is Heartland Bank, Leawood, Kansas, costing the FDIC $3.1 million.

#38 is Second Federal Savings and Loan Association of Chicago, Chicago, Illinois, costing the FDIC $76.9 million.

When The Purge Comes, It's Inspiration Will Be Obama's Barbarians In Hollywood

From The UK Daily Telegraph, here, which does a pretty good job of exposing the vulgar and violence-loving friends of Obama in Hollywood who represent the popular face of the global reach of Obama's crony capitalism fascism:

Spider-Man now looks like Bambi when set next to The Dark Knight. Even since 2002, the public's willingness to expose children to previously unthinkable levels of screen violence has soared, and the BBFC finds itself virtually powerless to stop it. ...

Britain appears to be gulping down entertainment values wholesale from a Hollywood intent upon mining the profit margin from barbarism. America, for all its manifold strengths, is still a country in which the population can be roused to a frenzy of condemnation by the sight of Janet Jackson's escaped nipple on the Super Bowl, but views the sight of a bound man being torched to death as all-round family entertainment. ...

Little boys have always played with swords and guns. But they did not always play at beating a prisoner's genitals with a rope, or stitching a live bomb inside a man's stomach. For that innovation we must thank Hollywood, the industrious factory of dreams, now frequently devoted to churning out nightmares.

These evil dreams, repeated often enough to the young, prepare them to commit crimes such as have occurred in the past, for example at the hands of this woman, executed in 1945 at the age of 22 for her crimes at Bergen-Belsen:

She admitted that she regarded the inmates of the concentration camps as "dreck", i.e. subhuman rubbish and like you or I may kill an insect without feeling guilty about it, she saw nothing inherently wrong in what she was doing. At her trial, she denied selecting prisoners for the gas chambers although she did admit she knew of their existence. She did admit to whipping prisoners with the cellophane whip and also to beating them with a walking stick, despite knowing that both practices were contrary to the camp rules.

Hers is a classic case of what happens when an immature person is given total charge of a large number of people who are viewed by those in authority as totally expendable. No one seemed to care how many of the concentration camp inmates were killed or beaten by her even though there were nominal rules against mistreatment of prisoners. So Irma had, effectively, freehand to kill and torture to her heart's content. She clearly felt that she was carrying out Hitler's and Himmler's policies, which in her mind largely exempted her from responsibility for her actions.

It has been said that Nazism replaced this young girl's normal sex life and that her sexuality manifested itself in the brutal and sadistic treatment of her female prisoners. 

Ingenious Interpretations of "You Didn't Build That"

If you didn't build that then they can take it.

You didn't build that, my cronyism did.

Oh yeah. Yankee ingenuity.

Full Time Employment In June 2012 Is At The Year 2000 Level

America first achieved full time employment at today's 114 million level way back in the year 2000.

Things are not fine in the full time employment sector, which remains 6 percent depressed from the all time high in November 2007 when nearly 121.9 million worked full time.

Examine the data for yourself, here.

Not only should the country have back all those 7 million lost full time jobs by now in a normal recovery, there should be even more working full time than that to accommodate the natural increase in the population in the last five years. The trend line would suggest that we should have in excess of 125 million or more working full time, 11 million more than work full time today.

Not Only Should The Young Have No Guns, They Should Have No Movies

And while we're at it, no one shall vote for president who isn't also at least 35 years of age.

ABC News reports here that the gunman's gear and m/o resembled the film:

Holmes was wearing a bullet-proof vest and riot helmet and carrying a gas mask, rifle, and handgun, when he was apprehended, according to police. Federal Alcohol, Tobacco, and Firearms sources told ABC News that agents will begin tracing an assault rifle, shotgun, and two handguns used in the attack. ...

The highly-anticipated third installment of the Batman triology opened to packed auditoriums around the country at midnight showings on Friday morning, and features a villain named Bane who wears a bulletproof vest and gas mask. Trailers for the movie show explosions at public events including a football game. Though many moviegoers dressed in costume to attend the opening night screening, police have made no statements about any connection between the gunman's motives and the movie.

Rep. Amash, Other Opponents Of Spending, Cave To Avoid A Government Shutdown Crisis

 

 

The Tea Party in Congress is dead, if it were ever alive.

 

Its most ardent wannabes in the Congress have been now fully and completely co-opted by the Republican Party, which couldn't use a crisis to get what it wants if a Democrat spelled it out in an instruction manual. Republicans not only have no principles, they have no skills.

Republican opponents of increased government spending have caved in to a plan to avoid a government shutdown crisis and accept a continuing resolution of at least six months, enshrining spending at the high levels they formerly opposed.

The mood is not dissimilar to the banking panic period around the election of 2008, when Republicans caved in to TARP in order to get past the crisis. They got past it alright, and deservedly lost everything in the process.

The whole point now, they say, is to get past the danger the upcoming election represents, and the lame duck session, periods when government is most responsive to, and most dismissive of, politics, and it is politics which the so-called conservatives now fear. It doesn't occur to them that one of the rewards of an election is the free hand given to the winners to do the will of the people. Gov. Scott Walker's victories on behalf of the people of Wisconsin evidently mean nothing to them. Fear of a lame duck session is simply proof that so-called Tea Partiers in Congress don't have the courage of their convictions.

The election, on the contrary, is the perfect opportunity to crucify the Democrats on the issue of spending, and especially their intransigence on it. Nothing focuses the mind like when your job is on the line.

Well guess what, Republicans? Your job is on the line, too. And I have a keyboard, and an internet connection.

Instead of postponing the issue to next March, outrageous spending should be front and center in October when Americans spend a few days paying attention to it for once. Republicans obviously have no stomach for such fighting. But Democrats do, which is why they win.

Making Democrats take the fall for increased spending and taxes may be difficult work, but if you can't figure out how to do that, then quit, but don't piss down our necks and tell us it's rainin'.

The truth appears to be that the so-called conservatives can see the handwriting on the wall. They have a candidate for president who won't cut spending if elected because that candidate, Gov. Mitt Romney, thinks cutting spending would put the country into depression. So-called Tea Partiers in Congress evidently agree with this Keynesian analysis. They'd rather look like they support this absurdity for political ends than do the right thing for the country. They don't want to continue in lonely isolation under a Romney administration. And they certainly don't want to be held responsible for a depression.

In taking this step, the conservatives no longer deserve our support, or our respect.

It's just one more reason why alliance with the Republican Party is the kiss of death for conservatism.

The Christian Science Monitor has the story, including these excerpts, here:

In a bid to avoid a potential government shutdown, several of the House’s most conservative Republicans say they would be willing to go along with a six-month extension of government funding, which is currently set to run out at the end of September, at levels they’ve voted against in the past. ...

The idea is spearheaded by Sens. Jim DeMint (R) of South Carolina, the most prominent tea party figure in Congress, and Lindsey Graham (R), South Carolina's senior senator. It was laid out in a letter signed by 20 Republicans to House and Senate GOP leaders on Wednesday. But support for the move is wider than the initial signatories: Even Rep. Justin Amash (R) of Michigan, who voted against the Republican budget proposal in March because he said it cut too little from government spending, said he would vote in favor.

And here's a little news flash for you: Lindsey Graham is not now, nor has he ever been, a member of the Tea Party, or a conservative.

As for Rep. Amash, I guess your precious "consistency" has its limits, eh Justin?

Fired American Workers Take 50 Percent Pay Cuts And Do Nothing About It. Spaniards Take 15 Percent Cuts And March.

The American people will do anything for money.

Ask anyone over 50 who's been fired despite being highly productive and highly skilled, now working any job, or any number of jobs, just to pay the bills, but making half what they used to make. We're too old to sustain a fight, and they know it.

But they marched today in Spain, and over far less, as reported here:

"There's nothing we can do but take to the street. We have lost between 10 and 15 percent of our pay in the past four years," said Sara Alvera, 51, a worker in the justice sector, demonstrating in Madrid. ...

Protestors complained that they were being made to pay for the financial crisis while banks and the rich were let off.

"We have to all come out into the street, firefighters, street-sweepers, nurses, to say: enough," said Manuel Amaro, a 38-year-old fireman in Madrid holding his black helmet by his side.

"If we don't, I don't know where this is going to end."

I think prosperity has bred the fight out of Americans. Many have lost 40 percent of their net worth since 2008, but here we sit, just taking it, while Spaniards march over just 15 percent.

Something has put the fight back into Spaniards somehow. I admire them for that.

Don't you know that you can strike back at your oppressors, too, America?

Just stop working. Just stop cooperating. 

What if everyone just said "No" to work for a month, say starting August 1? And "No" to volunteering. And "No" to everything anyone expects of you. Employers would absolutely panic. You might even bankrupt them. Shouldn't someone go bankrupt for a change besides you?

The government would panic because it desperately needs the tax revenue. You might even get rid of the government, considering that its reaction just might de-legitimize it.

How about making someone else panic for a change?

How about if America protests for a change?

How about taking August off? Europe does. Why don't we?

What Do Hillary and Huma Have In Common?

Dicks.

They even work for one.

Pelosi Backs Off Romney Tax Returns. Does She Fear Having To Release Her Own?

She's rich as Croesus, after all. Her financial disclosure for 2010 makes her nearly as rich as Romney.

Roll Call reports here that only 17 of 535 elected members of the US House and Senate have disclosed their tax returns:

The Minority Leader faced questions about the issue after a McClatchy News report showed only 17 of 535 Members released their tax returns when asked. ...

“Some people think the same standard should be held to the ownership of the news media in the country who are writing these stories about all of this. What do you think of that?” she asked.

How quickly they pivot to put the focus anywhere but where it belongs get the stink off.

Hey, but while we're at it, how about Diane Sawyer, who married the descendant of a famous communist? She makes an awful lot of money, asking no important questions of anyone, especially of Democrats.

According to salon.com, here:

In 2008, Forbes ranked her 65th on the list of the “World’s 100 Most Powerful Women.” She is said to command a salary of between $12 and $15 million a year.

Obama has spent about $100 million trying to put the stink on Romney, and it isn't working. Obama's rating on his handling the economy has slipped into the 30s during the same interval.

Pelosi is telling him it's time to move on.

MoveOn!

Forward! 

Dick Bove Sounds Just Like George Bush: We Tampered With LIBOR To Save The Banks

The hypocrisy just never ends. It gets so common no one has the energy left from all the outrage to pick up a torch and a pitchfork anymore. The whole industry is corrupt and all we can hope for is God sends a meteor attack to destroy them all, preferably at the opening bell.

Dick Bove, quoted in a story here:

Bove acknowledged holding what "may be a contradictory stance," but he is sticking to it.

"It will be recalled that the regulators were dealing with a significant financial crisis. To stem the panic, they lowered interest rates, invested in banks, loaned trillions of dollars to these institutions and guaranteed trillions more in bank liabilities," he said in an analysis for clients.

"If the dollar Libor rate had risen sharply in this period all of this activity would not have succeeded."

Every time some new misdeed is discovered we're told that it was necessary to bend the rules in order to keep everything from falling apart.

We're nearly four years on from the onset of the panic, and here we have a leading cheerleader for the banking industry telling us that suppressing LIBOR was necessary to save the system. I seem to recall that was the argument for TARP which relieved NOT ONE SINGLE TOXIC ASSET, and for the Fed opening the discount window to the world with nearly $10 trillion in liquidity loans at ultra-low rates homeowners will never get, and for every other violation of the principles of free markets we have witnessed under Republicans and Democrats alike, all of which amounts to the biggest fascist swindle ever perpetrated on a once free people.

A pox on all your houses! 

"Look. I obviously have made a decision to make sure the economy doesn't collapse. I have abandoned free market principles to save the free market system. Having said that, I'm very confident that with time the economy will come out and grow and people's wealth will return."

-- President Bush, 2008

Germany's Lonely Realists About The Euro

From Ambrose Evans-Pritchard, here:

Thilo Sarrazin is not everbody’s cup of tea. The ex-Bundesbanker and shock-jock critic of Islam in Europe loves to make mischief.

But his latest broadside against monetary union in the Frankfurter Allgemeine is spot on. ...

Mr Sarrazin is almost alone in German public life, at least until the dam breaks, which cannot be far away.

His one big ally is Hans-Olaf Henkel, former head of the German industry federation and author of a master plan to break EMU in two – with Germany and northern allies withdrawing, leaving France and the Latin bloc with the euro. ...

He is a brave man, the survivor of two years of vilification in the German press for daring to challenge orthodoxy.

Elizabeth Warren Is Still Talking Bull: Defends Obama's Theft Of Her Idea In "You Didn't Build That"

The Boston Herald quotes her here:

Elizabeth Warren yesterday came to the defense her former boss President Obama’s controversial statement that businesses’ owners can’t take credit for their success, repeating her own campaign line that, “nobody got rich on their own.”

Warren’s reiteration of her statement — which became an iconic and controversial cornerstone of her campaign — comes as conservatives have leapt on Obama for saying “If you’ve got a business — you didn’t build that. Somebody else made that happen.”

Warren said during a campaign stop in Dorchester yesterday, “I think the basic notion is right. Nobody got rich on their own. Nobody. ... they moved their goods on roads the rest of us helped build, they hired employees the rest of us helped educate, they plugged into a power grid the rest of us helped build,” she said.

“The rest of us made those investments . . .."

Class consciousness blinds the left from seeing the obvious defect in the argument. The successful also helped build the roads, build the power grid, and educate the employees in addition to doing what they did on their own.

You know, she should be a little upset with Obama for stealing her arguments without attribution. Obama didn't build those, she did.