September 30, 2008
Helping ourselves. Helping our neighbors. Helping our heroes.
I gotta tell you, I LOVE the fact that we have some amazing people who are running against demons.
Operation CRAYON
McWhirter Elementary
300 Pennsylvania Avenue
Webster, TX 77598Needs:
new or gently used clothing and shoes
standardized dress attire
backpacks
lunch kits
school suppliesOpen: M-F 8 to 4
They are also enrolling students displaced by Hurricane Ike there.
Clear Creek Independent School District is overseeing this kids initiative, so I can assure you it is a quality operation.
Also my town is accepting donations:
City of Seabrook Distribution and Donation Center
Hampton Inn on NASA parkway
running from 9/27 through 10/11Needs:
clothing
small household items (pots, pans, dishes, small appliances)
toiletries
cleaning supplies
food (if you send cans, please send pop top or a can opener too)
personal hygiene itemsVolunteers are needed!
Question:
Karen Campise 713-594-9422
Lori Wauls 281-635-6363
Y'all have a goodun and seriously, help these people out. They are putting their lives in hold to try to represent you.
Posted by mcblogger at 10:09 PM | Comments (0) | TrackBack
Ride a painted pony
Well, it didn’t take long for my company to adjust to the fallout. People were told to go home early in the morning, and everyone was told that we go to a 32 hour schedule for the next two weeks. After that time, there will be a reevaluation. Oh, oh, I know what that means.
Maybe Lloyd Doggett can find me a job.
Posted by Captain Kroc at 09:07 PM | Comments (0) | TrackBack
SEND DIANE KEATON FIVE DOLLARS RIGHT NOW!
I've always been a big fan of Diane Keaton. You know, the Diane Keaton of 'Annie Hall, 'Baby Boom' and 'Something's Gotta Give'. In fact, McBlogger and I consider 'Baby Boom' a family classic! However recent events have demonstratively changed my viewpoint.
First, she utterly disgusted me in 'Because I Said So', and I don't think I am alone here. Then she was partly responsible for the painful 'Mad Money'. Now she strikes with the sure to be an incredibly cretinous shitbomb entitled 'Smother'.
Yes, please, with a pillow! I am sorry, but if you do not cringe at least once during that trailer, you are a cinematic idiot. Do I REALLY need to mention Dax Shepard is in it? Do I? Anyone? He's even worse than Dane Cook and that's saying something! I mean what is she thinking? How much good will does she think remains in the credibility piggy bank? Being an Academy Award winner only goes so far. Just look at Cuba Gooding Jr.
It leads me to the conclusion that dear Diane must be in desperate need of some coin. There is no other explanation for accepting every crappy vehicle that comes her way. So, I was thinking, if every exasperated movie goer were to send her five dollars, perhaps she would stop making these inexplicably bad film choices. Perhaps she could salvage the last dwindling shred of dignity that remains. It's a thought.
Posted by barfly at 01:37 PM | Comments (0) | TrackBack
BREAKING : Dodd says "We're looking at expanding FDIC"
As part of a stop gap measure after yesterday's failure of the recapitalization package (which the media is STILL calling a bailout though they never quite explain exactly who will be 'bailed out'. I'm certain it's not shareholders. It never is), Chris Dodd is looking at expanding FDIC's role and allowing them to take a more active role in all this, including taking over whole banks. Which is what they did during the S&L crisis.
This solution will cost us a cool $1 TRILLION vs. making money off the recapitalization plan that you guys hated.
WAY 2 GO, ASSHOLES!
I'm excited, y'all! You thought you knew everything and fought this tooth and nail. You won. Now, it's time for me to vulture your ass because you're obviously too stupid to help.
I missed out on the first S&L party so I'll be happy to join in on this one at taxpayer expense. I know a lot of people who got hella rich buying RTC's underpriced assets. I personally can't wait! And it was handed to us by the braindead masses.
Morons. But even you guys pale in comparison to some of the Republicans...
Representative Jeb Hensarling, a Texas Republican, said most Republican conservatives oppose the idea of Treasury purchasing troubled assets, because it puts too much of the expense on taxpayers.``That is a model that House conservatives feel is fundamentally flawed,'' said Hensarling, the chairman of a group of more than 100 House Republican conservatives called the Republican Study Committee.
Oh, Jeb. You and the House conservatives are stupid and completely out of your depth when it comes to modern finance. Let's see here, Jeb. You and the connie's think that the government backstopping losses, without having a pre-existing premium cushion, is cheaper than actually buying the hard assets and recasting them?
Really? Jeb, seriously, there's politics and then there's just plain stupid. You and your fellow conservatives know less about finance than a box of hair and you certainly wouldn't know the first thing about fixing this problem.
Some of you think these assets are like a disease and they have to be purged (shades of Andrew Mellon, one of the architects of the Great Depression). Can't even begin to work through that one.
Seriously, you are all so far out of your league it's truly scary. Frank and Dodd are the only two who REALLY seem to get it and they are doing yeoman's work to keep this all from really going off the rails.
Posted by mcblogger at 11:17 AM | Comments (2) | TrackBack
My grain of sand
Awhile back, I was having a discussion with a friend about some issue of the week that had been blogged ad nauseam, and told him I was going to post my opinion.
I don’t think his response was meant to be mean, even though he is sarcastic sort, when he said, “another grain of sand on the beach.”
Sometimes I keep that in mind, sometimes I don’t. This is one of those times I don’t.
Let me preface my following rant by saying that I understand you don’t want abortion allowed for any reason, creationism should be taught in school, gays shouldn’t marry, and only abstinence should be taught in sex education. I understand. I don’t agree with you and I think you’re a little stupid, but I get it. It certainly does not take a therapist to recognize you have unresolved issues about your self-worth, but I understand. I really do.
For those women who are voting FOR Palin (to them McCain is more of an afterthought, and instead represents a surrogate to these women of the men who tell them how to vote and what to believe), congratulations, you have just slapped in the face the vast majority of your “sisterhood” who have maintained their dignity, morals, and values at home and work, while that cute, shapely, lying, ass-kissing bitch with less merit, experience, and intelligence has become your boss or just stole your man. Hey, it’s your world, I just live in it.
Posted by Captain Kroc at 07:26 AM | Comments (1) | TrackBack
September 29, 2008
How To Lose Friends And Destroy Economies
What awful things could Nancy Pelosi have possibly said to make the Congressional repubs get all pouty and sink the bill today? Click the Supersize, and read the Speaker's remarks courtesy of The Page. Sounds like the GOP "leadership" is pissing up a tree when they claim their feelings were hurt.
“Madam Speaker, when was the last time someone asked you for $700 billion?
It is a number that is staggering, but tells us only the costs of the Bush Administration’s failed economic policies—policies built on budgetary recklessness, on an anything goes mentality, with no regulation, no supervision, and no discipline in the system.
Democrats believe in the free market, which can and does create jobs, wealth, and capital, but left to its own devices it has created chaos.
That chaos is the dismal picture painted by Treasury Secretary Paulson and Federal Reserve Chairman Bernanke a week and a half ago in the Capitol.
As they pointed out, we confront a crisis of historic magnitude that has the ability to do serious injury not simply to our economy, but to the American people: not just to Wall Street, but to everyday Americans on Main Street.
It is our responsibility today, to help avert that catastrophic outcome.
Let us be clear: This is a crisis caused on Wall Street. But it is a crisis that reaches to Main Street in every city and town of the United States.
It is a crisis that freezes credit, causes families to lose their homes, cripples small businesses, and makes it harder to find jobs.
It is a crisis that never had to happen. It is now the duty of every Member of this body to recognize that the failure to act responsibly, with full protections for the American taxpayer, would compound the damage already done to the financial security of millions of American families.
Over the past several days, we have worked with our Republican colleagues to fashion an alternative to the original plan of the Bush Administration.
I must recognize the outstanding leadership provided by Chairman Barney Frank, whose enormous intellectual and strategic abilities have never before been so urgently needed, or so widely admired.
I also want to recognize Rahm Emanuel, who combined his deep knowledge of financial institutions with his pragmatic policy experience, to resolve key disagreements.
Secretary Paulson deserves credit for working day and night to help reach an agreement and for his flexibility in negotiating changes to his original proposal.
Democrats insisted that legislation responding to this crisis must protect the American people and Main Street from the meltdown on Wall Street.
The American people did not decide to dangerously weaken our regulatory and oversight policies. They did not make unwise and risky financial deals. They did not jeopardize the economic security of the nation. And they must not pay the cost of this emergency recovery and stabilization bill.
So we insisted that this bill contain several key provisions:
This legislation must contain independent and ongoing oversight to ensure that the recovery program is managed with full transparency and strict accountability.
The legislation must do everything possible to allow as many people to stay in their homes rather than face foreclosure.
The corporate CEOs whose companies will benefit from the public’s participation in this recovery must not benefit by exorbitant salaries and golden parachute retirement bonuses.
Our message to Wall Street is this: the party is over. The era of golden parachutes for high-flying Wall Street operators is over. No longer will the U.S. taxpayer bailout the recklessness of Wall Street.
The taxpayers who bear the risk in this recovery must share in the upside as the economy recovers.
And should this program not pay for itself, the financial institutions that benefited, not the taxpayers, must bear responsibility for making up the difference.
These were the Democratic demands to safeguard the American taxpayer, to help the economy recover, and to impose tough accountability as a central component of this recovery effort.
This legislation is not the end of congressional activity on this crisis. Over the course of the next few weeks, we will continue to hold investigative and oversight hearings to find out how the crisis developed, where mistakes were made, and how the recovery must be managed to protect the middle class and the American taxpayer.
With passage of this legislation today, we can begin the difficult job of turning our economy around, of helping those who depend on a growing economy and stable financial institutions for a secure retirement, for the education of their children, for jobs and small business credit.
Today we must act for those Americans, for Main Street, and we must act now, with the bipartisan spirit of cooperation which allowed us to fashion this legislation.
This not enough. We are also working to restore our nation’s economic strength by passing a new economic recovery stimulus package—a robust, job creating bill—that will help Americans struggling with high prices, get our economy back on track, and renew the American Dream.
Today, we will act to avert this crisis, but informed by our experience of the past eight years with the failed economic leadership that has left us left capable of meeting the challenges of the future.
We choose a different path. In the new year, with a new Congress and a new president, we will break free with a failed past and take America in a New Direction to a better future.”
Posted by mayor mcsleaze at 03:30 PM | Comments (0) | TrackBack
Ok, Mainstreet....
If this doesn't get fixed you're going to experience some real pain. Check your 401(k) tonight when you get home and REALLY let it sink in that YES, THIS DOES EFFECT YOU.
The next place the banks are going to go for liquidity is credit cards. Specifically, yours. They're going to start cutting your lines. And most of you can't live without them. Oh, and that car you wanted to buy? Better bring cash for that.
See, it doesn't take long for the effects of this to start to hit EVERYONE. And yes, I will be saying
I TOLD YOU SO
over and over again.
Just today, the Dow is down 777 points. The NASDAQ is down almost 200. Congratulations, those of you that called your Congressman to say NO! to the 'bailout'.
Posted by mcblogger at 03:29 PM | Comments (0) | TrackBack
Recap vote is failing and the Dow is falling UPDATED
The US House of Representatives is holding the vote on the financial services recapitalization plan and it's currently failing. The Dow had fallen more than 600 points but has paired losses to just shy of 500.
Thinks this stuff doesn't matter? If this doesn't go through, take a look at your retirement account in a few days.
I'd like to take a personal moment to thank all the idiots, within the Democratic and Republican parties, who are voting against this (not to mention all the pressure from outside groups put on them). When the books are closed on this era of American history, you'll all be remembered as the people who collapsed our economy.
UPDATE - Boehner is on TV whining that the R's voted against the bill because of what Nancy Pelosi said. Blunt is saying the same thing. The reality is that 75% of his folks voted against this bill. Of course, as Rep. Cantor (who flipped on his support for the bill from against to for) pointed out, NINETY FOUR DEMOCRATS voted against this.
I can't wait to hear their individual reasons, other than being gutless trash (and basically Republicans).
UPDATE 2 - Pelosi is saying that D's were to bring half and the R's were to bring half. It appears that the D's followed through and it was the R leadership that failed. Apparently there were 94 Dem's who just didn't like the fact that it was an improved Administration bill. So, the deal was made... the D's bring more than half and the R's just need to balance it out. Apparently, the R's were 12 short.
UPDATE 3 - I love me some Barney Frank. He just said when asked about Boehner's comment that he simply could not believe that 12 Republicans would disregard the imminent peril to our country, to ordinary Americans, because they got their feelings hurt. He then offered, if the R leadership would give him the names of the people, to go to talk to them 'uncharacteristically nicely' if it would help. The press corps died laughing.
Now it's Rahm Emmanuel. And he SUCKS BALLS as a speaker at a press conference. He looks and sounds twerpy.
As of right now, the US Equity Markets alone have lost more than ONE TRILLION DOLLARS since this failed. Thanks a bunch, R's.
Posted by mcblogger at 12:58 PM | Comments (1) | TrackBack
Ben Wear and his Stupid Sunshine Sh*t
I've actually noticed recently that the Statesman has improved a bit now that it's clear it can't depend on the Cox money teat for sustenance anymore. However, that improvement hasn't included Ben Wear who has to be one of the least curious people in Central Texas if his writing is any measure of the man.
Today, Wear presents a nice little article about TXDOT selling debt. To build toll roads (
which we'll pay for with our gas taxes AND tolls! The most expensive solution of all!). That we authorized almost five and two years ago. That they've sat on until THE WORST CREDIT CRISIS SINCE THE GREAT DEPRESSION.
Which is totally an ideal time to sell debt into the market. It's the time when you are SURE to get the more advantageous rates. But Wear doesn't mention that (other than some not-at-all witty suicide quip). He doesn't ask anyone about it.
Good to see everyone from the executive to the legislative to the media taking our need for infrastructure so seriously. It's a damn good thing you all have jobs either working for a failing enterprise (the Statesman) or one you are trying to drive into failure through your massive incompetence (State Government).
Posted by mcblogger at 11:38 AM | Comments (0) | TrackBack
You may have missed this...
With the passage of FISA, we were expecting the Government to file to dismiss the many lawsuits floating out there against the companies that aided and abetted the Government's illegal wiretapping program. And now, it's happened.
Eventually it'll hit the Supreme Court where I'm SURE CJ Roberts will make sure and uphold the constitutionality of an unconstitutional law.
Posted by mcblogger at 09:35 AM | Comments (0) | TrackBack
September 28, 2008
Sometimes Democrats do bad things
With all the dumb effluent filling our ears and heads this past week, we missed that Congress had passed a bill strengthening copyright laws in the US. The first version was interesting because it actually allowed the Justice Dept. to go after infringement ON BEHALF OF private interests, basically turning the DoJ into the MPAA's rottweiler (because pittbull's are shit).
The DEMOCRATIC Congress wanted this provision. It was the Bush DoJ that demanded it be stripped out. How's that for a little irony? And while we're on the subject of copyright and patent enforcement, these laws were meant to protect the creators and inventors from abuse and allow them to enjoy the fruits of their labor. They were not meant for a corporation (I'm looking at you, Disney) to enjoy in perpetuity.
Posted by mcblogger at 12:57 PM | Comments (0) | TrackBack
September 27, 2008
Just a little something to make you laugh...
I love jerky nature of animated GIF's.
Posted by mcblogger at 11:59 AM | Comments (0) | TrackBack
September 26, 2008
All I'll Say About This Debate
McCain's tie is more animated than he is.
Posted by mayor mcsleaze at 08:37 PM | Comments (1) | TrackBack
Gas pains
As part of the 'Ike Tours Texas' fallout, refiners on the Gulf are still shut down which is causing spot shortages in Atlanta (which sucks anyway) and in Tennessee. And, apparently, Dallas. Here's what caught my eye (and keep in mind the effected refiners account for 20% of US capacity)
U.S. crude oil refinery inputs averaged 11.5 million barrels per day during the week ending September 19, down more than 1.7 million barrels per day from the previous week's average. Refineries operated at 66.7 percent of their operable capacity last week. Gasoline production fell last week, averaging about 8.0 million barrels per day. Distillate fuel production decreased last week, averaging nearly 3.3 million barrels per day. (EIA)
So, refineries effected by Ike account for 20% of US refining capacity and we're down to 66%??!?! That seems strange at a time where wholesale gasoline recently spiked to $5/gal.
Then I saw this and start to think maybe there is something going on.
SO, we have a massive crude and gasoline supply disruption as a result of a hurricane. Combine that with newfound regulatory zeal from governments around the world, all of whom are looking to strangle speculation and suddenly refiners have decided to artificially (for 'repairs') reduce the gasoline available in the market?
Methinks this is a pretty clear cut case of supply manipulation. They can't play with the price since the speculators (those still left in the business now that LEH is gone and MS and GS are under scrutiny) have had to cut back. So they energy companies themselves have decided to create an artificial supply constraint by shutting in capacity unaffected by Ike.
Ain't it nice that the oil companies care so much about their customers?
Posted by mcblogger at 04:13 PM | Comments (0) | TrackBack
McCain hearts the House Republicans
And makes himself just as dumb as they are.
I'm not going to even bother attacking Roy Blunt. The man is so far beneath me when I shit he thinks it's raining mud.
Posted by mcblogger at 02:00 PM | Comments (0) | TrackBack
C'mon Democrats... let the whole thing fall apart.
A quick glance over at The Crypt reveals a couple of things:
1) EVERYONE thinks McCain is playing politics.
2) Blunt and Boehner are too stupid to know what they're doing. They're children playing with nukes and we'll be lucky to survive their stupidity.
3) The Democrats have the power to pass this package. The Republicans in the House will of course use it as an election issue and some voters are just dumb enough to believe them.
The reality is that the House Republicans are simply too stupid to know what they they are proposing and the effect it will have. This will open up the US taxpayer to literally TRILLIONS in exposure. Paulson's plan, just the mechanics of a recap program, will likely cost nothing (remember, I do this for a living. I'M still in business and doing well. You could say I'm somebody worth listening to). The Republican's plan will cost us $1 TRILLION. At a minimum.
The stakes are so unbelievably high and the sad thing is that the people who get it best aren't even in the US.
The US will lose its role as a global financial “superpower” in the wake of the financial crisis, Peer Steinbrück, the German finance minister, said on Thursday, blaming Washington for failing to take the regulatory steps that might have averted the crisis.“The US will lose its status as the superpower of the world financial system.
More than a year ago, I wrote that if the commercial paper market collapses, we would be staring into the abyss. WE'RE THERE. All that being said, the only way people are going to get just how bad things are is to let them get a bit worse.
I hate the idea of letting a problem get worse than I know it has to. But I'm so goddamn sick of these stupid people and their stupid ideas that I'm ready to let them and their supporters find out exactly how wrong they are.
UPDATE 1 - Bloomberg just had on John Allison from Branch Banking and Trust. John's proposal is a tax credit to clear out the housing market. The success of such a proposal is predicated on people being able to obtain financing. WHICH IS THE PROBLEM WE'RE TRYING TO FIX.
I see that the stupid people aren't limited to House Republicans.
Posted by mcblogger at 12:53 PM | Comments (0) | TrackBack
The House Republicans and their STUPID plan
You know, House Republicans are half-wits at the best of times. These AREN'T the best of times. Below is a summary of their principles and my comments. I can't tell you how mindnumbingly stupid this little plan is. This is so poorly thought out and it's so obvious that the players involved are completely out of their depth that here's no way to sufficiently ridicule this.
HR : Rather than providing taxpayer funded purchases of frozen mortgage assets, we should adopt a mortgage insurance approach to solve the problem.
McB : Well, that's a bit like fixing the barn door after the horses are already out. Further, all the private insurance has failed and now you want to activate a government insurance plan that doesn't give taxpayers an asset but instead an open ended liability? At least with Paulson's plan, we weren't on the hook for anything more than what we paid for the asset. And those assets are, at their base, mortgages and behind them is real property.
HR : Currently the federal government insures approximately half of all mortgage backed securities. (MBS) We can insure the rest of current outstanding MBS; however, rather than taxpayers funding insurance, the holders of these assets should pay for it. Treasury Department can design a system to charge premiums to the holders of MBS to fully finance this insurance.
McB : Only Freddie and Fannie insure MBS. So you want to now EXPAND the Agencies? As for the people in financial services paying for this, there isn't any equity left, you idiots. DO YOU GET THAT?! THIS IS A BREAK DOWN IN THE MARKET.
All this does is put us on the hook for another $5 TRILLION. As we step in to 'insure' loans that weren't written to the Agencies tough guidelines. It's a bit like insuring someone who drives a car. Without looking at their driving record or claim history. Which is a prescription for open ended risk.
HR : Have Private Capital Injection to the Financial Markets, Not Tax Dollars. Instead of injecting taxpayer capital into the market to produce liquidity, private capital can be drawn into the market by removing regulatory and tax barriers that are currently blocking private capital formation. Too much private capital is sitting on the sidelines during this crisis.
McB : Well, first off you have $2.5-3 trillion in private capital that has simply ceased to exist. There isn't enough out there. The market is functionally UNREGULATED as is and the tax barriers are, for the most part, non-existent. You guys took care of that in 2001 and 2003. There's nothing more you can do to juice and cutting the tax rates that remain won't do anything to achieve your goals in even a marginal way (the taxes are minimal now as is). Just look at a goddamn Laffer Curve, you morons, and plot it out. You're on the left hand side. You can't achieve marginal gains from here by cutting taxes. They're so low that it doesn't change the risk/reward ratio substantively.
HR : Temporary tax relief provisions can help companies free up capital to maintain operations, create jobs, and lend to one another. In addition, we should allow for a temporary suspension of dividend payments by financial institutions and other regulatory measures to address the problems surrounding private capital liquidity.
McB : Uhm. Most companies are running at a loss. We discussed this. As for the dividends, keep in mind that those dividends go mostly to people who are retired. Are you really so nasty, House Republicans, that you'd force a little old lady to eat cat food just to make a goddamn point?
Quit with the taxes. You've already functionally bankrupted us and we can't handle more of your fiscal irresponsibility. Which is why Republicans are now the MINORITY.
HR : Immediate Transparency, Oversight, and Market Reform. Require participating firms to disclose to Treasury the value of their mortgage assets on their books, the value of any private bids within the last year for such assets, and their last audit report.
McB : Smells like the beginning of REGULATION. Well, even a broken clock is right twice a day so it's no surprise you'd stumble across something. HOWEVER, there's not enough here to make a decision on the cost of insuring. Even here you folks are miserable failures. I'd love it if one of you could be given the reins of a public insurance company. So I could short the hell out of the stock. I LOVE profiting from other's stupidity.
HR : Wall Street Executives should not benefit from taxpayer funding. Call on the SEC to review the performance of the Credit Rating Agencies and their ability to accurately reflect the risks of these failed investment securities.
McB : Sounds like you too have a problem with CEO pay but the meat's not there. So this really IS nothing more than a political ploy?
HR : Create a blue ribbon panel with representatives of Treasury, SEC, and the Fed to make recommendations to Congress for reforms of the financial sector by January 1, 2009.
McB : Really? Hey, morons. The panel already exists. It's been meeting with Congress all week. And it thinks your plan sucks balls.
This 'PACKAGE' was put together by people who are intellectually inadequate. WOEFULLY inadequate.
(thanks to Politico)
Posted by mcblogger at 10:20 AM | Comments (0) | TrackBack
Oh, Jeb. You moronic fool...
It'll come as little surprise to those of us in Texas that our own Rep. Jeb Hensarling is leading the little rebellion of House Republicans against what was, until they stepped into the fray and began playing politics, a bipartisan plan.
Hensarling has always been an advocate of ideology over reality. Now, he's taking that to it's ultimate extreme by supporting a market solution to the financial crisis we now face. What's terrifying is that even at this late date he has not realized that the crisis itself was brought on by a complete breakdown of the market. Which he now proposes to legislate back into operation. With loan guarantees and insurance.
Here's the problem... the market has consistently, by not working, activated every form of insurance placed on it to offset declines in value. That's what brought down AIG. Which means that should his plan go forward, it'll be taxpayers that take it on the chin because he proposes to have the government backstop LOSSES, not hold and service ASSETS for eventual sale.
The plan, which has not been transformed into legislation, seeks to insure mortgage-backed assets at prices and premiums set by the government, creating a virtual backstop for all the debt. This would not require an initial outlay of taxpayers’ funds in the neighborhood of Paulson's $700 billion.But the Treasury Department has expressed concerns about whether an insurance model would provide the economy with the immediate stimulus it needs. And taxpayers would have to foot the cost for a major financial slide because the government would be required to make up those losses.
Jeb, just like Fannie and Freddie, how long do you think it will take the market to push through the stops and activate the insurance. What will you do then? Cry that you were wrong?
I don't know what more I should expect from someone who's business experience includes working for his Daddy's little company and some kind of insurance company that you can't find out anything about. Oh, and Green Mountain Energy which is anything but green.
Jeb, you're a tiny, underpowered mind operating among giants this week. Instead of trying to throw your stupid, irresponsible and irrational bull into the mix, why not let those smarter than you take the lead?
You know, Jeb, it's better to keep ones mouth shut and be thought a fool than open it and remove all doubt.
Posted by mcblogger at 01:15 AM | Comments (1) | TrackBack
Goodbye, WaMu
The government takes over WaMu and sells most of it to JPM Chase.
The real funny? McCain and the House Republicans decide to poop all over the recapitalization plan that they had, earlier TODAY, agreed to. Well, some of them. The ones who are not batshit crazy.
Things grew so heated within the caucus, the Politico reported, that "some House Republicans are saying privately that they'd rather 'let the markets crash' than sign on to a massive bailout."One GOP lawmaker, referring to his defiant colleagues, asked rhetorically: "For the sake of the altar of the free market system, do you accept a Great Depression?"
Even Excreable Ed Rollins thinks the R's are putting themselves first...
"At the end of the day, there's a lot of people thinking about how to rebuild this party," said GOP strategist Ed Rollins on CNN, "and do we want to rebuild it with John McCain, who's always kind of questionable on the basic facts of fiscal control, all the rest of it, immigration. And I think to a certain extent this 110, 115 members of this study group are saying, here's the time to draw the line in the sand.""That's pretty scary stuff that they're thinking about party right now and not country, is that what you're saying?" responded host Anderson Cooper.
"I think they're, yes, they're thinking about themselves," said Rollins.
I'd like to take a moment to thank Rep. Frank and Sen. Dodd, as well as all the congressional D's for their hard work. And thank you, Mr. Chairman for yet again giving us THE quote...
Following the meeting, Frank and Dodd implored President Bush to persuade House Republicans that the situation is urgent. “The president has got to go to work here,” said Frank. As for McCain’s offer of assistance, Frank said, “God save us from such help.”
As for Speaker Pelosi... shove. this. bill. down. their. throats.
BTW - Thanks, Campbell Brown.
Posted by mcblogger at 12:05 AM | Comments (0) | TrackBack
September 25, 2008
Suspend, Sushpend.
First, a wee introduction. I'm Uncle O'Grimacy, an infrequent guest writer here at McBlogger. Like all good Irishmen, I love booze and a dram o'profanity every once in a while. And, chances are I'm a bloggin' drunk. For added affect, you can read this post in a voice that is a cross between Fat Bastard in the Austin Powers movies and Sean Connery. You'll be on the right track then, laddies. Now, on to business.
What the hell is wrong with John McCain? Is he stupid or just plain dumb? He wants to suspend his campaign so he can focus on the financial crisis on Wall Street. Bullshit. Like he's smart enough to solve it!
Everybody knows McCain is suspending so he can get out of Friday's debate with Barack Obama, right? If you don't, you're on fucking mushrooms. The corn in my shite figured that out, for god's sakes.
Now that we've got that out of the way, let's talk about just how stupid suspending a presidential campaign over this actually is.http://www.motherjones.com/news/feature/2008/07/foreclosure-phil.htmlhttp://www.motherjones.com/news/feature/2008/07/foreclosure-phil.html
John McCain and Barack Obama briefly suspended their campaigns because a hurricane stuck the Gulf Coast. Fine and dandy. Granted, even someone as full of Everclear as me might think it might be tacky to campaign in the midst of a disaster that will destroy homes and cause massive loss of life.
Now, he wants to suspend his campaign because of the crisis on Wall Street. Is anybody fucking dying? Are the folks o'er at Goldman Sachs jumping out of windows and splattering down on the pavement? Is there any loss of life? Granted, there is a massive-ass loss of homes and jobs, but that's never stopped John McCain before. He campaigned throughout the whole damned foreclosure crisis, and has sat as idle as an ass wart on a pig while millions of American jobs were lost throughout this administration.
The other reason it is pretty stupid that McCain is suspending his campaign is because one of his own dumb-assed advisers helped cause the current crisis--that giant sack of shit-filled haggis called Phil Gramm who we in Texas had the unfortunate distinction of having as our Senator for longer than even God cares to remember.
Who in the Christ is advising John McCain to suspend his campaign? Did he get Bristol Palin to ask her Magic 8-Ball and make his decision based upon that?
If I were McCain, and thank Lord Jesus and Saint Patrick I am not although I'd like to have 13 cars and a wife who can get her hands on large stashes of Vicodin any time she wants, I'd be out on the damned campaign tail milking this shit for all it is worth.
Oh, wait. Damn it! McCain can't really milk it for all its worth, can he? Because he sat on his ass in the Senate for years sopping up the sweat off W's ballsack and voting for whatever the Republican Party wanted.
Now, for Barack Obama. If I were him, I'd tell John McCain and his suspension to go straight to Hell without the benefit of a Rosary or the Last Rites. I'd be on the campaign trail and blaming every economic problem our country has on Bush and John McCain.
Yes, go to the Senate, debate, cast your votes, attend your committee hearings, but keep your ass on the campaign trail, boyo. Shit, steal the spotlight from the bastard GOP administration and come up with your own economic plan to fix this hellish mess.
Posted by uncle at 01:04 PM | Comments (0) | TrackBack
I know this isn't real, but it's...
... but it's hella funny.
Posted by mcblogger at 12:01 PM | Comments (0) | TrackBack
Doubling down (craving crow with seconds)
So this morning I wake up to this story.
Really? Why, I never. How dare the Bush administration demand concessions it can probably get from this Congress...for reasons COMPLETELY INEXFUCKINGPLICABLE considering the mood of the electorate.
Go ahead, bitches. I dare you. Sack up and take on the 19% bogeyman or else go suck on Karl Rove's subpoena and stop sending me fundraising letters.
Crow is best served as a two-course meal. Damn I'm craving some.
Posted by hbalczak at 01:30 AM | Comments (0) | TrackBack
September 24, 2008
Notes while drinking (or, In Which I'm Correct)
1) Everyone talks about the 'worthless' and 'toxic' securities being spun to the government. Once more, the overall picture is FAR from grim. Here's how this works...
2.75% of mortgages in the US are now in foreclosure. Even if that goes to 6%, it's still within past historical peaks and completely manageable. A good price for a CDO that represented this pool at face would be 94 cents on the dollar. Treasury should be able to pick up these assets for 30-60 cents on the dollar which will keep banks stable.
Merrill Lynch recently sold $30 bn in face value subprime CDO's to Lone Star Funds of Dallas. For around $6 bn. Even if 50% of the portfolio is not paying, they've just made an instant profit of 28 cents on the dollar.
And then there is loss mitigation. By the time they sell off the houses representing the other 50%, they will recoup half again. Bringing the final total to 75%. Why the hell shouldn't the government get a deal like that, especially when the free market is too stupid to get the value proposition. Of course, that's just recovery of principle. They'll still be earning interest on the 50% that pays. Now you know why debt collectors make so much money.
2) Even Barron's, not known as a bastion of intelligent thought, thinks this is a good idea. Stirling Newberry does not. That's because Stirling thinks this is all about the oil economy and oil for paper and it's all a house of cards and we should all start rationing now and wait patiently for the world to become like the nightmare depicted in Mad Max. Needless to say, I'm not going to worry about this.
3) Consumers need some help. This is a good start but you guys, once we rid of you some more Republicans, have got to do more. And you CAN do it.
4) McCain suspends his campaign in some kind of ridiculous publicity stunt. Barney Frank and Chris Dodd can't figure out why since over the last five days they have pretty much got the details ironed out and are ready to roll on a plan that will succeed. And they did it all without McCain. Meanwhile, now they have to put up with the stupid old man who doesn't get the economy and Bush. Tomorrow morning when they could be working.
5) Thankfully, Obama is pressing ahead. And this poll shows him way ahead of McCain.
Maybe the assholes deserve a Depression. This one certainly does. Don't get me wrong, I know you all want to lash out and just let the whole thing go down the drain. What you don't realize is that the third world AIN'T a real comfortable place to live.
Posted by mcblogger at 11:49 PM | Comments (2) | TrackBack
Channeling My Inner Bolshevik
I am so freaking sick and tired of hearing this gift basket for the Wall Street plutocrats referred to as "socialism".
Get back to me when the plan includes Peoples Tribunals and firing squads.
Posted by mayor mcsleaze at 07:15 PM | Comments (0) | TrackBack
May you live in interesting times...
This financial crisis is finally waning. They always end when buyers finally realize that the firesale won't last forever and they dip back into the market to buy deeply discounted assets. We got a big boost of this yesterday.
Until now, Mr. Buffett, who has navigated the stock market with legendary prowess, has largely refrained from investing in the stricken financial industry, saying repeatedly that things could get worse.Thousands of people on and off Wall Street follow Mr. Buffett’s moves, so his decision to invest in Goldman immediately heartened investors. After falling nearly 1.5 percent during the day, the Standard & Poor’s 500-stock index erased half its loss in after-hours trading Tuesday evening on news of the investment.
“Buffett is saying he’s confident,” said Brad Hintz, an analyst at Sanford C. Bernstein & Company.
Mr. Buffett’s conglomerate, Berkshire Hathaway, unveiled the move only days after Goldman, long the premier investment house on Wall Street, embarked on a radical plan to transform itself into a traditional bank to ensure its survival. Goldman, which examined various options over the last week as its shares tumbled and some clients abandoned the firm, also said Tuesday it would sell at least $2.5 billion of common stock to the public.
The difference between Buffett and others is that HE can afford to hold something for decades until BRK makes a profit on it. Even if he dies, there is management at BRK that thinks exactly like him. And his success has not been the result of luck, it's research and thorough analysis. It's making the right decision.
Be fearful when others are greedy. Be greedy when others are fearful.
Last night and this morning I posted a couple of emails to Carl Whitmarsh in Houston regarding something he'd sent out on his massive email list. The first article was this from George Will. Now, George has never been a big fan of McCain. However, that's not the meat of the article. It's the craptastic analysis of the US falling into socialism. Here's what I sent to Carl:
It's funny to me that McCain would attack Cox for not regulating the very securities that McCain voted to keep unregulated.I LOVE the way conservatives have decided that this is socialism, as if the entire
capital market is now under the absolute control of the Treasury and Fed. Their
plan, buying assets that the free market has assigned zero value to, is absolutely
sound. Why? Because occasionally the market goes crazy and won't buy something
that's worth a dollar even if it's discounted to 10 cents. The market, in short, is
not always right.The Fed was CREATED to avoid panic and provide liquidity in times of market
dislocations. Which is exactly what we have now.That being said, Paulson's plan, as presented on Sunday, is a thoroughgoing mess.
There will have to be oversight. There will have to be caps on CEO compensation.
However, the basic idea to add liquidity to our deflated economy is a good one.
The second comment was related to a piece Harvey Kronberg ran from Royal Masset
I love Royal but he's wrong on what's happening in the financial industry. This is a panic, pure and simple, and it should wake people up to the reality that markets are far from perfect.Markets are nothing more than buyers and sellers. Period. They are dependent on
humans and their imperfect decision making. The idea that markets self regulate with
minimal impacts is ALWAYS wrong. They do self regulate and in the process create
what can charitably be called distress.Regulation and enforcement, while imperfect and sometimes overreaching, is a hell of
a lot better than mass unemployment and starvation.That's the lesson most of the 'free market' Republican's have never learned.
Of course, there are number of others who have problems with buying assets. They see another solution, lend directly to the banks.
Here's why you can't just lend money to banks, allow them to take the losses in selling these assets, and then repay the debt over time. For one thing, these losses are going to (in many cases) wipe out all the equity in banks, rendering many insolvent. You can't replace that equity with debt owed to the government. Debt is Debt. For another, the market is so freaked out and dislocated (not to mention fearful) that no one wants these securities at any price. It's not that these securities aren't worth something. After all, the vast majority are A paper mortgage credits. It's that investors can't see the value and won't take ANY risk.
What is needed is a prime mover to get these assets moving, worked out and restore the market. That prime mover is the only entity capable of operating for the long haul, the Federal Government.
The issue is that these assets, when marked to market, have no value because the market is buying and selling NOTHING. However, the loans underneath are STILL performing. On a cashflow basis, many are performing exactly as predicted. We may now need to look at discounted cash flow as a value model to fall back on when MtoM fails. Which it is prone to do when the market seizes up. Which it, of course, does from time to time despite what the Republicans say.
We have to stabilize home prices which means we need people with jobs who can buy homes with mortgages. Unfortunately, as this crisis deepens, it begins to effect employment AND the ability of people to secure financing for homes. Without a market, the value of homes continues to drop. In the end, we fall into a Depression. THAT'S the end result of doing nothing.
Finally, there are some lesson we all need to take from this experience...
1) Regulation and enforcement are not obstacles to the success of the market. They are ESSENTIAL to the success of the market.
2) Capitalism has not failed. What failed was our obligation to oversee it and make it work for the majority.
3) Just because something is valued at nothing right now, it doesn't mean it's worthless.
One last point... one that everyone needs to understand unequivocally, if we don't do this the whole damn country fails. THAT'S the reality and all the whining about taxpayers footing the bill (which is a load of crap) isn't going to change it.
Posted by mcblogger at 03:10 PM | Comments (0) | TrackBack
Methinks they doth protest well enough (and that's what has me worried)
So if we're to believe our eyes and ears, the Administration's bailout proposal sure has everyone on the Hill all frothing at the mouth.
I don't know about you folks, but it makes me real nervous-like when the Democratic congressional leadership rails this loudly about a Bush proposal this feculent. Because all too often, the squallin' and wall-eyed fits give way to The Big Cave-In [see, e.g., FISA, reauthorization of Iraq War funding, domestic spending levels, etc.].
At times, it seems as if this sort of rending of garments and gnashing of teeth is almost a kind of obligatory theatrical foreshadowing of a preordained tragic climax wherein vile douchebaggery and bitchassedness prevail over courage and righteousness. For you English majors out there not yet done with the metaphor, I suppose the denoument would be the part where said players engage in post hoc bitching about how the executive branch has usurped all the power and singlehandedly ruined the country and that's why only our side can provide the bold, gallant leadership the nation needs, bleh bleh bleh.
(And I type this while aiming Ye Olde Stinkeye in your direction, Nancy, Steny and Harry.)
Hopefully, things will be different this time. Maybe Democrats on the Hill will say, in one, big, loud unified voice, "I'm Rick James, bitch!" and imprint the Will of the People upon the forehead of Connecticut-native George W. Bush with the almighty knucklebling of Article One power. Maybe instead of handing a blank government check to the Gamma Beta House and hoping they'll notice the phrase "public service project" written on the memo line, Congress will pass some completely pinstriped-ass-whuppin' legislation and rock the nation with a new number one hit single, "Smells Like CEO Comeuppance."
Lord, I hope that happens. But I know better than to emotionally invest in that prospect. Kind of like how I learned, as a kid, to tense up any time I saw Charlie Brown on television hauling ass toward Lucy holding a football.
You know, a big heaping plate of pungent raw crow sure would taste good right about now.
Posted by hbalczak at 01:26 PM | Comments (0) | TrackBack
Now I know who my Grandfather would have voted for
My Grandfather, for those of you who were unaware, was a HOOGE fan of Barry Goldwater. So is this guy.
And he's voting for Obama. Just kinda made me feel, in a way, that I'm exactly where I belong.
Posted by hbalczak at 12:40 PM | Comments (0) | TrackBack
Still loving Sarah
Neocon pinup Sarah Palin continues to pay dividends for Democrats because her stances, which clearly define the difference between the two parties that hasn’t been this pronounced in years, are driving swing voters to Obama.
The outcome of this election will be a defining moment in United States history, not so much for the historical milestone of race and gender in the campaign itself, but of a paradigm shift of this country’s social and political philosophy of security versus liberty, the role of capitalism, and authoritarianism.
Make no mistake, this Republican campaign started well before 9/11, when the blueprint was designed in the 1960’s, field tested in the ‘70’s, introduced to the masses by Ronald Reagan, and turbocharged by George W. Bush. This has always been an orchestrated effort to squash citizens of their rights, and this election illustrates the difference between those who think people need to be told what to belief and those who believe that we can make up are own minds. The stakes are very high
The 2000 election, more an abomination of justice and one which will always be in doubt, and 2004, which saw a resurgence of Democratic grassroots trying to protect what many considered the last firewall against the political and social forces that want to transform this country into something quite different from what has guided our beliefs for over 200 years, were pre-season games to this Super Bowl.
After eight years of a Republican presidency, six of which was part of a twelve year control of Congress by the GOP, and a right-wing shift in the Supreme Court, this election is a referendum on conservatism. Even after all this country has endured since 1980, many conservative voters still consider the Republicans as guardians of their beliefs. That’s not going to change, and no amount of “showing them the light” is going to overcome their cultural insecurities and their refusal to face their own hypocrisy. Issues and personalities are only parts of the equation explaining why someone votes for a particular person. Just as important is a person’s world-view. Republicans call it ownership society, Democrats use the term common good.
That’s why independents are trending Obama. These voters have found that looking out for number one has caused hardships and divisiveness, but more importantly, they have realized that we are all in this together, and that by unity of purpose, this country’s better days are ahead.
Posted by Captain Kroc at 09:33 AM | Comments (0) | TrackBack
I KNEW IT! Clay Aiken Trips Gaydar
As if this post was not foretelling. American Idol pop-singer Clay Aiken has finally come out as gay.
Will Young could beat his ass any day. Actually, I take that back. Forget Clay's ass, really, forget it. Young can beat mine instead.
In the meantime, please enjoy this picture, yet again.
THAT IS ALL.
Posted by spamburgler at 02:26 AM | Comments (3) | TrackBack
September 23, 2008
Rewriting history, with Kevin Hassett
Bloomberg is carrying some rather odious commentary from Kevin Hassett of the American Enterprise Institute, the right wing institute which provides little in the way of real information and research but is LONG on commentary.
According to Kevin, this is all the fault of the Democrats because they wouldn't reform Fannie and Freddie. What Kevin doesn't point out is that the bill in question would have so severely curtailed Fannie and Freddie that it would have eliminated them as real competitors and an effective counterbalance to the banks. Kevin claims, stupidly, that the failure of Bear Stearns was caused by... Fannie Mae.
30 to 1 leverage in a CDO of CDO's had NOTHING to do with it, right Kev? Neither did Bear's never ending hunger for riskier and riskier sub-prime garbage that was priced inadequately for the inherent risk, I'm sure. Of course, I understand how you can make mistakes, Kev. After all, it's easy when you ignore reality.
Kevin also points out that FNMA is holding $388 bn in sub-prime and Alt A credits. That's true. Considering that at the height Wall Street was issuing $600-700 bn PER YEAR in sub-prime issues, it kinda dwarfs Fannie Mae's holdings. I'd also like to know just who issued those sub-prime credits on Fannie's books. I'd be willing to bet some of them show Lehman Brothers, Bear Stearns and Credit Suisse as the vintners.
Of course, Kevin leaves all that out and points out his own ignorance of structured finance and the house cards by alluding that AIG was also collapsed (as if by magic) by Fannie Mae. AIG is even easier than Bear... they wrote too much insurance, too cheaply and when the call came for more collateral from counterparties, they couldn't sell assets fast enough... because they were carrying some the same assets they were insuring against default.
Brill business strategy, especially for an insurer.
Of course, Kevin can be excused for not knowing any of this. He is, after all, a political moron and (again) completely ignorant of finance. His only real work experience in business is at the AEI and as a McSame campaign adviser. Which puts him right up there with other economic luminaries like Carly Fiorina and the crew of lobbyists that McSame calls his close friends and advisers.
Posted by mcblogger at 10:26 AM | Comments (0) | TrackBack
September 22, 2008
Another reason to hate Republicans
Nothing like kicking someone when they’re down.
To the undecideds - You still don't get it?
Posted by Captain Kroc at 10:32 PM | Comments (0) | TrackBack
Good to see the US media is still up to the task
Why in the hell do I have to go to the Guardian for the lowdown?
Posted by Captain Kroc at 06:33 PM | Comments (0) | TrackBack
The fallout...
First off, for a moment, take a look at this again. Specifically point one. Think about that every time you read something from one of the chicken little's on the right (or left) who are bleating on about toxic securities.
One more time, there is no such thing as a toxic security. There is only a toxic price. In other words, be rational about the prices you pay for assets and you'll be happy. The market for credits got very frothy and people overpaid either because they were dumb or they didn't really understand the securities they were buying. Now people have gone the opposite way and are unwilling to buy these assets at any price.
As the old saying goes, be greedy when others are fearful. Be fearful when others are greedy.
Unfortunately, it looks like many investors are going to take a pass on these assets. Which leaves the Fed's and the few willing and smart enough to jump into the fray (like JPM). First off, I'm pleased as punch about the government getting involved since the 'free' market has completely gone off the rails. However, Paulson's plan is still the wrong way to go.
We're also mostly on the same page (though I, unlike Stirling, don't subscribe to conspiracy theory) except for a few highlights...
1) Cramdowns - Basically, this is a modification for mortgages in markets with declining values. It's also useless. What about the homeowner who is making their payments EVEN though their home is worth less than they paid? There's really no need for this unless you're talking about doing a workout on someone who really can't afford the mortgage and the value has declined dramatically. However, I don't like the government getting a piece of the inevitable increase in value down the road through some kind of hitherto unknown lien position. If you're going to help people, help people.
My advice : Don't do this with anyone who has had a greater than 50% decline in value. That's what you'll get on a foreclosure. Anyone more underwater needs to just walk away with a wipeout on the mortgage history so they don't have an adverse hit on the credit report.
Last thing... change the tax laws to benefit workouts rather than foreclosures. It's easy... if a company does a workout that results in the loss of loan balance (say, from $200k to $150k) then they can take that as a loss against ordinary income immediately. If they foreclose, they have to take the loss on that against income over THREE years. Either way, you have to alter the law to keep these companies from 1099ing the people effected for the difference.
2) Not so much with a national emergency and rationing. Let's look at changing tax policy to increase wages for ordinary people. That'll take care of commodities inflation and our negative savings rate. And that whole petroleum thing can be easily fixed with biofuels. Actually, it WILL be fixed fast as long as oil is over $50/bbl.
I'm fine with expanding FDIC and LOVE what Obama is hitting on. Plus, as many of you know, I've always hated excessive levels of executive compensation. I say go for it, Congressional Democrats! Take this time to make this a real solution, instead of another Paulson bandaid.
Now, onto what's happening today. Obvs, the market loved the Paulson/Bush/McCain plan as much as we did. The Dow is down around 3% and oil has shot back up to $120/bbl as investors pull out of equities and dump speculative money into oil.
Needless to say, we ALL apparently want something other than another silly gimmick. Except for Michelle Malkin who has turned this into yet another attempt to divorce herself and her Party from responsibility for this problem.
Robert Novak called attention to Paulson’s Democrat DNA last October. It’s worth reminding you of Paulson’s instincts and the liberal allies he has installed at the Treasury Department
No, no, Bitch. Paulson's one of yours. And quit quoting that sad, old alcoholic. As for him bringing in 'libruls', the problem is that all your financial guys suck balls. They all end up going broke.
Posted by mcblogger at 03:16 PM | Comments (0) | TrackBack
Everyone starts to get it...
It's becoming painfully obvious that even our friends on the right are beginning to realize that Sarah Palin's not ready for prime time. It's also becoming pretty clear that McCain's ads have been over the top which we've all been saying. But now, even Karl Rove is saying it which prompted this from the Obama campaign...
"In case anyone was still wondering whether John McCain is running the sleaziest, most dishonest campaign in history, today Karl Rove - the man who held the previous record - said McCain's ads have gone too far," said Obama campaign spokesman Tommy Vietor.
On the topic of what the Dems in Congress could be doing, it's also abundantly clear that THEY are getting it. First up is our old buddy Nancy P who finally decided to take the gloves off and hit the glib, ridiculous and more than little incompetent Palin in the mouth.
Pelosi compared Palin's resume to that of President Bush's before he assumed the mantle of commander in chief. "I have a very high standard for president of the United States," the Speaker said. "I guess George Bush has proven that anybody can do it, but can they do it well? I think he has not. I think he has done great harm and damage to our country. I don't think this is something that you'd take a chance on. I think I've yet to see the credentials and the depth that the most powerful position in the world, the president of the United States, that somebody with her resume is able to take over that job."
Yeah, I know it's not much but at least Pelosi is finally off dead center and saying SOMETHING. Honestly, her mealy mouthed bullshit irritates the hell out of me, too. However, this is at least a sign of life and a hit. Luckily, we're getting much better stuff out of the Senate.
"One Senator -- John McCain -- woke up yesterday morning, surveyed the state of the U.S. economy, summoned the ghost of his fellow Republican, Herbert Hoover, and declared, 'The fundamentals of our economy are strong,'" said Senate Majority Leader Harry Reid, before laying responsibility for the current woes in part on McCain's economic adviser Phil Gramm.
Goddamn, Harry! Where the fuck have you been??!?! Welcome to the party and keep on chatting up the band. We're sick of their usual tune and we want them singing yours.
Finally, I leave you with ... well... this.
Posted by mcblogger at 12:06 PM | Comments (0) | TrackBack
September 21, 2008
A special invitation to the Secretary of the Treasury
Seriously, THIS is what you came up with? A massive expansion of the Executive Branch, no help for homeowners and absolute power with a blank check?
It's clear to me now that Paulson has got to go and we need Bob Rubin back at Treasury. Larry Summers is wrong for the job (honestly, he's a dumbass anyway) and Rubin is the only one with the kind influence in financial and political circles to get something done. He's also far smarter than Paulson which should help.
We need to re-regulate commodities and derivative trading (fuck you, Phil Gramm, you dirt leg moron) and begin requiring a lot more capital be held by companies wishing to operate in the securities industry. No more of this 30 to 1 leverage bullshit. But I don't see that it this little 'plan'. I also don't see anything to help expand efforts already proceeding to pull borrowers out of bad mortgages. No, I'm not talking about a cram down and share the wealth plan (seriously, why even bother, Ian? You gonna give everyone who's upside down on a car note a bail out, too? Just get them outta the bad loan and regular appreciation will work out the gap), just a reworking of underwriting guidelines and insuring to allow people to get into affordable mortgages.
We needed real solutions and an indication of some sort of contrition. Instead, we get a brazen attempt to steal still more power for an out of control President.
Congress should act. The Democrats should write one hell of a bill and tell the President to sign it or we'll let everything go down the tubes.
Enough bullshit and politics. And Chairman Frank should immediately demand Paulson's resignation.
Posted by mcblogger at 04:37 PM | Comments (0) | TrackBack
No, REALLY, Senator. We know where you REALLY stand
Y'all know I'd rather walk on my own tongue than say something nasty about someone...
BUT...
John McCain as REFORMER and REGULATOR?!?! Didn't we go over this already?
YEAH, we did. Which makes me wonder why this old, stupid bastard is trying to keep this shit up? It makes me so goddamn mad I just want to strike someone. How else can you DEAL with someone who lies just to lie, completely irrationally and has no sense of remorse about it. You don't reason with that person and debating with them is like arguing with a television.
Seriously am I the only one just sick of it? And the fact that media is covering it as if it were something other than categorical bullshit?
Posted by mcblogger at 01:01 PM | Comments (0) | TrackBack
September 20, 2008
Thanks, but I'm really busy that day...
Last night while having drinks with Barfly, she asked a very interesting question regarding AK First Dude Todd Palin's refusal to heed a subpoena.
Since when do you have the choice? I mean, Karl Rove was subpoenaed and he just said THA SHITS to all that. Now this Palin asshat has decided he'll not show up to answer TrooooooperGate (HATE THAT NAME) questions.
So can we all start ignoring subpoenas? Tell Congress to go fuck itself because it's just one giant bitch?
Posted by mcblogger at 01:11 PM | Comments (0) | TrackBack
Top Ten Differences Between Sarah Palin And A Pit Bull
10. The Pit Bull has never tried to get any books banned.
9. The Pit Bull doesn't use its family as political props.
8. No Pit Bull has ever slashed funding for the Special Olympics
7. Pit Bulls are a darn sight smarter
6. The Pit Bull was never associated with a secessionist political movement.
5. Pit Bulls don't hunt from helicopters
4. Pit Bulls lay, Sarah lies
3. If you subpoena a Pit Bull, it shows up to testify
2. The Pit Bull doesn't think sleeping in the garage makes it an expert on transportation.
And the Number One difference between Sarah Palen and a Pit Bull:
One is a bloodthirsty, pitiless killing machine... the other is just a dog.
Posted by mayor mcsleaze at 11:22 AM | Comments (0) | TrackBack
September 19, 2008
While you're all whining...
I'm endlessly amazed by the amount of bullshit floating on the right and left of the blogosphere when it comes to economic policy and financial markets.
Frankly, none of you seem to GET IT. I'm talking about those of you with advanced degrees. The rest of you mooks come across as little more than fucktards.
Here's the reality...
1) This BAD DEBT is not really BAD. BAD indicates complete non-performance and absolutely worthless collateral. Neither is the case, even in deep subprime portfolios overweighted with CA, specifically Inland Empire, mortgages. PERIOD. HOWEVER, it's all being priced as if none of the loans are paying and the collateral is all worthless. Which is entirely irrational. What's going to happen now is a cashflow analysis. And it's going to show I'm right. And people will finally start thinking again and acting from a position of confidence, not fear.
I LOVE mark to market accounting but in this case, people are using it as a rationale to drive stable, but wounded, companies over the edge. The reality is these loans aren't worthless. They're producing cashflow and the collateral has a lot more value than the market indicates.
2) Short selling ban is a FANTASTIC thing. Fuck your ideology, Darwinian sensibilities or other bent. Naked short selling, especially in an extraordinary market like this, is nothing more than an invitation for vultures to come in and start eating the living. This isn't a typical market... it's completely irrational and short selling is driving a lot of it. For those of you that don't know (which is the overwhelming majority in the sphere), here's how this works.
Company A has a decent but weakened balance sheet due to mark to market asset write-downs (the assets aren't necessarily worthless, they are still providing cash. But, because of accounting rules, because there is no liquid market for the securities, they have to be marked to zero). Still it has enough capital to meet it's covenants and counterparty commitments. Short B comes in and starts shorting the equity. Heavily. In one day it drags down the stock 5-10%. The next day when A goes to raise money in the capital markets (called funding, this money is the lifeblood of investment banks), the people lending are charging higher interest rates and requiring A up capital reserves because they are nervous due to the stock price. A coughs it up, artificially weakens their cash cushion and goes on with business. One of it's counterparties catches wind of the more expensive funding, puts that info together with the stock decline and decides it doesn't want to accept A's business anymore which means A can't put through trades for it's own book (a major profit center) or for it's customers (an even bigger profit center). Other counterparties catch wind of this and stop trading with A as well. Pretty soon, it can't conduct business because no one will take the other side of the trades. Then the funding dries up and suddenly A can't meet short term, revolving obligations. It's cash cushion declines precipitously, activating debt covenants and freezing still more capital. The shorts continue to pile on and soon the cash cushion is wiped out and the firm is forced to seek a buyer, help from the Feds or the sweet embrace of the US Bankruptcy Court in Manhattan.
Was it stupid for A to be levered so highly? Yes. However, none of the panic would have occurred if the shorts hadn't been allowed to pile on. In an ordinary environment, I love short selling. I've used it many times, not to mention selling calls into a rally I knew was unsustainable. However, what is going on now (and people are bemoaning the loss of) is the financial markets equivalent of yelling fire in a crowded theater. When people aren't acting rationally to begin with, it's stupid to allow people in the audience to start a panic.
That's just one aspect... what about the weak investment bank with a massive long position in one company that a short seller sees on their disclosures and decides to start shorting? As the short piles into the stock of the company, the investment bank's forced to liquidate it's holdings in the company, thereby driving the price lower, accelerating the selling by the shorts. At the end, the weak investment bank has lost millions and the ordinary shareholders who got trapped in the middle are just screwed. But the short sellers have made a killing.
Tell you what... I want to SEE what shorts are shorting. Specific companies, and specific positions. Let's level the playing field.
3) When does it stop? Why, when housing prices stop falling. When will housing prices stop falling? When there is financial liquidity back in the market and people can get loans to buy houses more easily. When will THAT happen?
WHEN THE MARKET STOPS TREATING ALL MORTGAGES LIKE RADWASTE.
That, in a nutshell, is THE deal. And that's what the Fed's are doing. And the people screaming about it are either delusional or stupid.
4) We shouldn't bail out people who make bad decisions. It introduces moral hazard.
Fuckall... I'm going to physically assault the next person who says this within earshot. Then I'm going to bend you over and assrape you. Seriously, THAT'S how motherfucking sick to death I am of hearing this. What, did you all wake up and think you were Bill Poole?!?!?
YES, some stupid people who took too much risk are going to bailed out in all this. However, it's not the ultra rich shareholders who will profit... it'll ultimately be the Government. The shareholder's equity has been wiped out in the case of Bear. And AIG. And Fannie. And Freddie. And Lehman (I got a ringside seat to this one!). SOME of the bondholders may end up with something, but even that's questionable. The only thing certain is that taxpayers are going to make off like bandits.
Company 1 has $300bn in assets and $200bn in debt. Suddenly, the market seizes up for some of the securities 1 holds in assets. The value, according to mark to market, drops to zero even though the assets are still performing and have cashflow. Still, they follow accounting rules and write down the assets, taking a $120 bn hit to assets. Which means they now have $180 bn in assets floating $200bn in debt. Which means equity is negative $20 bn and 1 is insolvent. The Feds step in, wipe out the shareholders, agree to cover the debt service with the income earned by the assets and hold the assets to term, if needed. The market, eventually, stabilizes, becomes rational and realizes "Hey. That shit really IS worth something" and the market returns. The Feds sell the assets for $250bn and settles the debts for $190 bn, realizing $60bn in the process.
Simplistic? You betcha. The mechanisms and actual workings are far more complex. However, that's HOW it will look. And the taxpayers will be better for it... not to mention the fact that they won't have to live through an economic depression.
5) But McBlogger, our debt (and the dollar) will be worthless. Bullshit. We're all so interdependent that the central banks around the world will be thrilled to death that we're getting a handle on the problem so the market can stabilize. THAT'S reality... MOST central banks, especially those not under the control of UoC Friedmanite ideologues, crave stability. And they'll pay a hefty premium for it.
6) Now we're a banana republic. Fuck. This one came from Sean-Paul at the Agonist. We've had our differences before but for the most part I tend to agree with him. Still, on this, he's retarded. Banana Republics lever up far over GDP. We haven't. We're not even close. We're also not turning into a socialist system. This is an asset work through. Don't try to glamorize it.
7) Oh, the government will just deval the dollar and pay the debt wit