Merry Andrew
 
  5  
Reply Tue 30 Sep, 2008 03:51 am
Here's Michael Moore's take on it this morning:

Everyone said the bill would pass. The masters of the universe were already making celebratory dinner reservations at Manhattan's finest restaurants. Personal shoppers in Dallas and Atlanta were dispatched to do the early Christmas gifting. Mad Men of Chicago and Miami were popping corks and toasting each other long before the morning latte run.

But what they didn't know was that hundreds of thousands of Americans woke up yesterday morning and decided it was time for revolt. The politicians never saw it coming. Millions of phone calls and emails hit Congress so hard it was as if Marshall Dillon, Elliot Ness and Dog the Bounty Hunter had descended on D.C. to stop the looting and arrest the thieves.

The Corporate Crime of the Century was halted by a vote of 228 to 205. It was rare and historic; no one could remember a time when a bill supported by the president and the leadership of both parties went down in defeat. That just never happens.

A lot of people are wondering why the right wing of the Republican Party joined with the left wing of the Democratic Party in voting down the thievery. Forty percent of Democrats and two-thirds of Republicans voted against the bill.

Here's what happened:

The presidential race may still be close in the polls, but the Congressional races are pointing toward a landslide for the Democrats. Few dispute the prediction that the Republicans are in for a whoopin' on November 4th. Up to 30 Republican House seats could be lost in what would be a stunning repudiation of their agenda.

The Republican reps are so scared of losing their seats, when this "financial crisis" reared its head two weeks ago, they realized they had just been handed their one and only chance to separate themselves from Bush before the election, while doing something that would make them look like they were on the side of "the people."

Watching C-Span yesterday morning was one of the best comedy shows I'd seen in ages. There they were, one Republican after another who had backed the war and sunk the country into record debt, who had voted to kill every regulation that would have kept Wall Street in check -- there they were, now crying foul and standing up for the little guy! One after another, they stood at the microphone on the House floor and threw Bush under the bus, under the train (even though they had voted to kill off our nation's trains, too), heck, they would've thrown him under the rising waters of the Lower Ninth Ward if they could've conjured up another hurricane. You know how your dog acts when sprayed by a skunk? He howls and runs around trying to shake it off, rubbing and rolling himself on every piece of your carpet, trying to get rid of the stench. That's what it looked like on the Republican side of the aisle yesterday, and it was a sight to behold.

The 95 brave Dems who broke with Barney Frank and Chris Dodd were the real heroes, just like those few who stood up and voted against the war in October of 2002. Watch the remarks from yesterday of Reps. Marcy Kaptur, Sheila Jackson Lee, and Dennis Kucinich. They spoke the truth.

The Dems who voted for the giveaway did so mostly because they were scared by the threats of Wall Street, that if the rich didn't get their handout, the market would go nuts and then it's bye-bye stock-based pension and retirement funds.

And guess what? That's exactly what Wall Street did! The largest, single-day drop in the Dow in the history of the New York Stock exchange. The news anchors last night screamed it out: Americans just lost 1.2 trillion dollars in the stock market!! It's a financial Pearl Harbor! The sky is falling! Bird flu! Killer Bees!

Of course, sane people know that nobody "lost" anything yesterday, that stocks go up and down and this too shall pass because the rich will now buy low, hold, then sell off, then buy low again.

But for now, Wall Street and its propaganda arm (the networks and media it owns) will continue to try and scare the bejesus out of you. It will be harder to get a loan. Some people will lose their jobs. A weak nation of wimps won't last long under this torture. Or will we? Is this our line in the sand?

Here's my guess: The Democratic leadership in the House secretly hoped all along that this lousy bill would go down. With Bush's proposals shredded, the Dems knew they could then write their own bill that favors the average American, not the upper 10% who were hoping for another kegger of gold.

So the ball is in the Democrats' hands. The gun from Wall Street remains at their head. Before they make their next move, let me tell you what the media kept silent about while this bill was being debated:

1. The bailout bill had NO enforcement provisions for the so-called oversight group that was going to monitor Wall Street's spending of the $700 billion;

2. It had NO penalties, fines or imprisonment for any executive who might steal any of the people's money;

3. It did NOTHING to force banks and lenders to rewrite people's mortgages to avoid foreclosures -- this bill would not have stopped ONE foreclosure!;

4. It had NO teeth anywhere in the entire piece of legislation, using words like "suggested" when referring to the government being paid back for the bailout;

5. Over 200 economists wrote to Congress and said this bill might actually WORSEN the "financial crisis" and cause even MORE of a meltdown.

Put a fork in this slab of pork. It's over. Now it is time for our side to state very clearly the laws WE want passed. I will send you my proposals later today. We've bought ourselves less than 72 hours.

Yours,
Michael Moore
[email protected]
MichaelMoore.com
Steve 41oo
 
  1  
Reply Tue 30 Sep, 2008 05:27 am
@Merry Andrew,
well if the president doesnt know what to do, at least michael moore does.
0 Replies
 
DrewDad
 
  2  
Reply Tue 30 Sep, 2008 07:09 am
@Merry Andrew,
I like the remarks by Marcy Kaptur.


BumbleBeeBoogie
 
  1  
Reply Tue 30 Sep, 2008 08:27 am
@DrewDad,
She is one smart and gutsy woman.

My investments took a big hit so I hope she's right.

BBB
0 Replies
 
DrewDad
 
  2  
Reply Tue 30 Sep, 2008 08:52 am
Stopping a Financial Crisis, the Swedish Way

Quote:
A banking system in crisis after the collapse of a housing bubble. An economy hemorrhaging jobs. A market-oriented government struggling to stem the panic. Sound familiar?

...

Sweden did not just bail out its financial institutions by having the government take over the bad debts. It extracted pounds of flesh from bank shareholders before writing checks. Banks had to write down losses and issue warrants to the government.

That strategy held banks responsible and turned the government into an owner. When distressed assets were sold, the profits flowed to taxpayers, and the government was able to recoup more money later by selling its shares in the companies as well.

...

Then came the imperative to bleed shareholders first. Mr. Lundgren recalls a conversation with Peter Wallenberg, at the time chairman of SEB, Sweden’s largest bank. Mr. Wallenberg, the scion of the country’s most famous family and steward of large chunks of its economy, heard that there would be no sacred cows.

The Wallenbergs turned around and arranged a recapitalization on their own, obviating the need for a bailout. SEB turned a profit the following year, 1993.

BumbleBeeBoogie
 
  1  
Reply Tue 30 Sep, 2008 08:56 am
@DrewDad,
I've heard good reports about the Swedish solution.

BBB

BumbleBeeBoogie
 
  2  
Reply Tue 30 Sep, 2008 09:05 am
@BumbleBeeBoogie,
I found this 2006 smart article on a day trader's site that predicted what will happen.

It make me wonder why we should trust former day-trader Paulson?

BBB

Cara's Daytrader Bull Board, Thurs., Dec. 28, 2006, 9:29 AM | Main | Week #52 (2006-12-30) in Review (FINAL) »

December 29, 2006
Cara's Daytrader Bull Board, Fri., Dec. 29, 2006, 9:15 AM
On extremely low volume yesterday, the U.S. stock market drifted. The Apple charade continued, however. The latest story is that Steve Jobs has been "cleared" and the stock has rocketed north in Europe this morning.

Yesterday while watching various interviews with Talking Heads, I asked myself why the interviewer wasn't simply asking the TH to express their motive/agenda as opposed to their opinion. I heard one man say in earnest how he was so supportive of any new measure that would boost corporate governance, yada yada " coming across as an expert -- and then say he had studied the Apple situation in depth and was satisfied that the company was a model of good corporate governance. Then he went on to be a shill for the stock, setting an incredible $125 12-month Price Target. At a current price of $80.87, that would be a +55 pct move. Hmmm.

I strongly believe that significant changes in monetary policy in the U.S., ushered in during the past year after the hiring of Ben Bernanke and Henry Paulson, have set other nations on their heels. It seems that all countries have turned to the money printing press.

In particular, I noted how with the timing of the APEC meeting in Hanoi Vietnam on November 18-19, and Paulson's key role there, has played such a big role in what is happening today. Some of the banks " look at those of the Hong Kong banks " have literally blown the doors off their market cap.

I believe that, not money (in the form of equity), but credit instead is being thrown into this market. As prices increase, there are actors, including very large hedge funds, that have taken on huge debt positions to participate. The banks have been profiting. The rest of us are now at much greater risk.

As soon as central banks tighten, stock prices will fall.

But, and this is crucial to understand, the treadmill that supports this debt game only needs to slow a bit before stock prices fall a lot because the huge leverage of the fractional reserve banking system that is being used to pump share prices today will work in reverse.

It is our job to shift risk back to the banks before we get stuck holding debt that will burden us for years to come.

The smartest traders today are selling their profitable positions and paying off debt and putting the unallocated cash to work in the precious metals markets. The same thing happened in the 2Q06. Also, some who had written puts to earn income are now closing those short puts.

Incredible gains have been made this year by put writers. Traders who wrote puts on the 20 tech stocks that I pointed to as being in an Accumulation Zone in mid-July have literally cleaned up. For illustrative purposes, calculate the returns from writing a put at $1.00 and buying it back several months later at $0.05. Buying an option at 5 cents and selling it for $1.00 is a 20x gain.

So, as the song goes, "Don't Cry for Me Argentina".

I have, as you know, been otherwise occupied the past few weeks. Spending time away from the market has given me a chance to re-charge my batteries. Ecclesiastes 3: "There is a time;"

We all have to recognize that by keeping the foot on the accelerator isn't going to help us get around the corners, so I decided to back off. I have made a couple decisions re the website and blog that will become obvious in January " improvements, I think.
okie
 
  2  
Reply Tue 30 Sep, 2008 10:36 am
Roads lead back to Dodd and Frank, and the Democrats in Congress.

http://www.foxnews.com/video2/video08.html?maven_referralObject=3119758&maven_referralPlaylistId=&sRevUrl=http://www.foxnews.com/
parados
 
  2  
Reply Tue 30 Sep, 2008 11:30 am
@okie,
Wow.. hard hitting news from a weatherman and a sportscaster. Rolling Eyes

Hey, those 2 "newsmen" never asked the important question of which party was in charge of the Senate and how Dodd could stop legislation that never made it out of committee when the GOP controlled the committee. What evidence is there of Dodd stopping the vote? None. This is nothing more than a talking point that has no facts to support it.
okie
 
  4  
Reply Tue 30 Sep, 2008 12:42 pm
@parados,
So the fact that Dodd and Frank are on record at the time as saying these entities were fine and dandy doesn't matter, is that right, and the Democrats are never responsible for anything at all. The Dems had no influence at all over this legislation and never opposed it, right Parados? It is always the evil Bush people and the Republicans, and evil greedy loan companies that simply wanted to go broke. I get it, Parados. Have it your way. Yes, HUD, Fannie Mae and Freddie, and the congressional oversight were running things great, I am sure the people that ran Fannie Mae, cooking the books, and the legislation mandating political correctness and subprime loans and all of that are only a figment of everybody's imagination. I apologize, Parados for being so worried about what happened.

Funny how Enron was raked over the coals and people ended up in prison? How come something like that isn't happening here?
cicerone imposter
 
  2  
Reply Tue 30 Sep, 2008 12:43 pm
@okie,
As a matter of fact, bank CEOs are now being investigated for crimes as we speak.
okie
 
  1  
Reply Tue 30 Sep, 2008 12:44 pm
@cicerone imposter,
Good, I hope so. No doubt they were all evil republicans. If I have learned anything at all from you guys, a Democrat is never corrupt or wrong.
0 Replies
 
okie
 
  1  
Reply Tue 30 Sep, 2008 12:47 pm
@Merry Andrew,
Merry Andrew wrote:

Here's Michael Moore's take on it this morning:

Glad to see we hold such experts in such high esteem here. LOL.
0 Replies
 
dyslexia
 
  1  
Reply Tue 30 Sep, 2008 12:50 pm
@BumbleBeeBoogie,
H Paulson was a day-trader?
0 Replies
 
spendius
 
  1  
Reply Tue 30 Sep, 2008 01:45 pm
On the face of it it seems only right and proper that every American should be fined $3,000 apiece for failing to ring and e-mail their representitives during the period when they were greedily soaking up tales of the hedgers and shorters swanning it up with bimbos and whatnot and anticipating that it would soon be their turn. I suppose they thought that the new found wealth was coming out of the air rather from out of their sweat.

Everybody here in the street and the pub knew what was going on two years ago when the loan sharks, with all sorts of fancy names, started begging, for adverts are begging in case you don't know, in every ad break.

It was a standing joke. Which happy couple they depicted grinning complacently was the least likely prospect for lending a quid to was what we laughed at. There was a rumour that somebody's dog had been loaned £50 grand.

It's a mitigating circumstances job with Media as leading counsel.

As such quaintly religious in essence because no mitigation can affect the rolling factualities. You're all blaming each other.
spendius
 
  1  
Reply Tue 30 Sep, 2008 01:50 pm
@spendius,
In case that wasn't understood, what I meant was that the message in the ads was that if they would give them two gumps a loan to roll all their debts into one simple package, upgrade their car and with enough to spare for a sunshine holiday--cut to couple sunning on the beach-- then they will easily give me one.

"Where do I sign?" the hobo said.
spendius
 
  1  
Reply Tue 30 Sep, 2008 01:54 pm
@spendius,
Trying to pretend it's complicated is merely part of the snow. It's dead simple.

The idea is to weave the winds until your heads are so mesmerised that you will actually believe your innocence. Even a touch of victim syndrome will appear.

It must be a year since Dylan said--"Something's Outa Whack!"
0 Replies
 
Linkat
 
  2  
Reply Tue 30 Sep, 2008 02:04 pm
@okie,
It is 90% of the damn politicians - doesn't matter the party most are a bunch of blow hard idiots.
spendius
 
  2  
Reply Tue 30 Sep, 2008 03:22 pm
@Linkat,
How can they be idiots? That's idiotic. A politician has but one objective and it is to get elected. They are all elected. They acheived their objective. Who on here can say that?

If your statement is true who are you writing in on Nov 4? You can't vote for a blow hard idiot surely. Then you would be idiotic on two counts.

Our PM is saying he will "do what it takes". And his doing what it takes so far has given him very low approval ratings.

And such phrases don't rule out nationalisation of everything and declaring martial law.

Why has he agreed to up the bank deposit guarantee to £50,000 and refused to guarantee the lot as the Irish government has done?
Linkat
 
  2  
Reply Tue 30 Sep, 2008 03:28 pm
@spendius,
No they are not all idiots - only 90% of them.
 

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