He’s melting. He needs to do something decisive, and fast. He’s overwhelmed and angry. Will he keep his cool under the pressure we’d put on him as President? If he ever spoke to a foreign leader the way he’s been talking this week... well, let’s hope that never happens.
It’s pathetic that McCain was running around last week declaring the economy to be "fundamentally strong" and now suspends his campaign because it’s so important to fix. He should let Ms. Palin run the ticket while he’s pretending to care about the 99% who hold 10% of the wealth.
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The Fed has claimed that this is a "liquidity crisis."
Really Ben? Then perhaps you can explain this?
Note that this is an intentional drain of "slosh", or liquidity, from the banking system. $125 billion in the last four days drained?
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"We do not support government bailouts of private institutions. Government interference in the markets exacerbates problems in the marketplace and causes the free market to take longer to correct itself."
Some skeptics are calling Henry Paulson’s $700 billion rescue plan for the U.S. financial system "cash for trash." Others are calling the proposed legislation the Authorization for Use of Financial Force, after the Authorization for Use of Military Force, the infamous bill that gave the Bush administration the green light to invade Iraq.
There’s justice in the gibes. Everyone agrees that something major must be done. But Mr. Paulson is demanding extraordinary power for himself - and for his successor - to deploy taxpayers’ money on behalf of a plan that, as far as I can see, doesn’t make sense.
Some are saying that we should simply trust Mr. Paulson, because he’s a smart guy who knows what he’s doing. But that’s only half true: he is a smart guy, but what, exactly, in the experience of the past year and a half - a period during which Mr. Paulson repeatedly declared the financial crisis "contained," and then offered a series of unsuccessful fixes - justifies the belief that he knows what he’s doing? He’s making it up as he goes along, just like the rest of us.
So let’s try to think this through for ourselves. I have a four-step view of the financial crisis:
1. The bursting of the housing bubble has led to a surge in defaults and foreclosures, which in turn has led to a plunge in the prices of mortgage-backed securities - assets whose value ultimately comes from mortgage payments.
2. These financial losses have left many financial institutions with too little capital - too few assets compared with their debt. This problem is especially severe because everyone took on so much debt during the bubble years.
3. Because financial institutions have too little capital relative to their debt, they haven’t been able or willing to provide the credit the economy needs.
4. Financial institutions have been trying to pay down their debt by selling assets, including those mortgage-backed securities, but this drives asset prices down and makes their financial position even worse. This vicious circle is what some call the "paradox of deleveraging."
The Paulson plan calls for the federal government to buy up $700 billion worth of troubled assets, mainly mortgage-backed securities. How does this resolve the crisis?
Well, it might - might - break the vicious circle of deleveraging, step 4 in my capsule description. Even that isn’t clear: the prices of many assets, not just those the Treasury proposes to buy, are under pressure. And even if the vicious circle is limited, the financial system will still be crippled by inadequate capital.
Or rather, it will be crippled by inadequate capital unless the federal government hugely overpays for the assets it buys, giving financial firms - and their stockholders and executives - a giant windfall at taxpayer expense. Did I mention that I’m not happy with this plan?
The logic of the crisis seems to call for an intervention, not at step 4, but at step 2: the financial system needs more capital. And if the government is going to provide capital to financial firms, it should get what people who provide capital are entitled to - a share in ownership, so that all the gains if the rescue plan works don’t go to the people who made the mess in the first place.
That’s what happened in the savings and loan crisis: the feds took over ownership of the bad banks, not just their bad assets. It’s also what happened with Fannie and Freddie. (And by the way, that rescue has done what it was supposed to. Mortgage interest rates have come down sharply since the federal takeover.)
But Mr. Paulson insists that he wants a "clean" plan. "Clean," in this context, means a taxpayer-financed bailout with no strings attached - no quid pro quo on the part of those being bailed out. Why is that a good thing? Add to this the fact that Mr. Paulson is also demanding dictatorial authority, plus immunity from review "by any court of law or any administrative agency," and this adds up to an unacceptable proposal.
I’m aware that Congress is under enormous pressure to agree to the Paulson plan in the next few days, with at most a few modifications that make it slightly less bad. Basically, after having spent a year and a half telling everyone that things were under control, the Bush administration says that the sky is falling, and that to save the world we have to do exactly what it says now now now.
But I’d urge Congress to pause for a minute, take a deep breath, and try to seriously rework the structure of the plan, making it a plan that addresses the real problem. Don’t let yourself be railroaded - if this plan goes through in anything like its current form, we’ll all be very sorry in the not-too-distant future.
I am soooooo glad I don’t live in Florida. Imagine going to the polls and finding out that you can’t vote, despite having done so your entire life. It happened to 100,000 people back in 2000, and this year it could happen to a lot more people. Gotta love a state where the government doesn’t trust anyone.
Here’s an interesting Wall Street Journal article. It’s pretty amazing -- and remember the WSJ is owned by the Australian Rupurt Murdock, the owner of FOX news and a hyper-Bush supporter.
Florida Could Again Muddle Race for White House
New Voting Laws, Untested Machines Might Be Factors
by CHRISTOPHER COOPER
for the Wall Street Journal
September 20, 2008
TAMPA, Fla. -- Just as in 2000, both political parties are battling for Florida, where Republican Sen. John McCain holds a single-digit lead over Democratic Sen. Barack Obama.
And eight years after Florida’s recount drama, a new election debacle in Palm Beach County, home of the infamous "butterfly ballot," as well as new voting laws and untested voting machines, suggest the Sunshine State could again muddle the White House contest.
Keeping the state’s 27 electoral votes in the Republican column are key to Sen. McCain’s national election strategy. In a campaign that has stinted on ground staff elsewhere, he has commandeered 60 Republican Party offices around the state and has about 70 paid employees on the ground. Though registered Democrats outnumber Republicans by about 500,000 voters statewide, both sides say the Republicans have proven better over the years at turning out their voters. In 2004, President George W. Bush won the state by five percentage points.
"We’re taking the Bush 2004 turnout model and tweaking it a bit," said Buzz Jacobs, director of Sen. McCain’s operations in the state. "We have a lot of experienced people on the ground who know how to run elections in Florida."
For Sen. Obama, Florida could lead him to the White House. "It’s the motivating factor we give our staff every day: You win Florida, Barack is the new president," said Steve Schale, the Obama campaign’s state director.
The Obama campaign has said it will spend $40 million in the state. Sen. Obama is fielding a staff more than four times larger here than Sen. McCain’s. Sen. Obama has 50 field offices, in addition to those operated by the Democratic Party. Sen. John Kerry, the 2004 Democratic nominee, had 14.
The Obama campaign also says it has registered about 100,000 new voters this year, part of 250,000 new registrants in the state overall, and the majority of them are Democrats.
Now comes the bigger task: making sure inexperienced voters can navigate two new state laws. The first is the so-called "No match, no vote" law, which requires a match between a voter’s driver’s license or Social Security number and a government database. Critics say database records are riddled with errors.
A second law allows citizens to challenge the legitimacy of fellow voters. Challengers need not prove their accusations. Instead, the challenged voter has two days to justify his right to cast a ballot.
State Republican lawmakers who pushed the law say it will help combat fraud. Democrats call it a vote-suppression measure. "Now why would the legislature make it easier to challenge, instead of, say spending more money on voter education?" said Chuck Lichtman, a Fort Lauderdale attorney. He heads a Democratic effort to put volunteer lawyers in every Florida precinct. Mr. Lichtman says 5,000 lawyers have signed up for the task, up from 3,500 in 2004.
Other battleground states have recently tightened voter-identification laws, but Florida was named "the most hostile state in the nation to new voters" by three national voting-rights groups.
At a recent training seminar in Tampa for about 300 Obama campaign staffers, an election lawyer went over election-law changes that could lead to mass voter challenges. The staff monitors elections across the state. "We’re going to be very aggressive this time," said Mr. Schale, who worked in the 2000 recount. "While I’m sitting in some office in Tampa, the staff will be my eyes and ears."
Republicans aren’t giving details about their preparations. "If there’s something that looks suspicious, we want it investigated by the appropriate authorities," said Mr. Jacobs.
Other potential problems loom, including equipment snafus. In a 2006 congressional election in Sarasota County, machines failed to log some 3,000 votes. As a result, Florida Gov. Charlie Crist ordered all 67 Florida counties to use optical scanning machines, which read hand-marked ballots and provide a complete audit record.
But a recent Palm Beach County election showed that better machines don’t solve all problems.
For the last month, county residents have been awaiting the result of the Aug. 26 election for a circuit judgeship. William Abramson appeared to have toppled longtime incumbent Richard Wennet by a margin of 17 votes out of 100,000 cast. But in a subsequent recount, Mr. Wennet won by 60 votes, and elections officials reported that 3,500 ballots had gone missing.
Mr. Abramson has filed a lawsuit. Further counts offered varying results, including 190 ballots that were overlooked on election night. A state judge ordered county officials to try again Friday. If the numbers don’t balance, he said, he would order a new election. "It seems like Groundhog Day," said Glenn Burhans Jr., a lawyer for Mr. Wennet. "Let’s hope this doesn’t happen in November because things could get really ugly."
Oops. My bad. I thought Bonz had uploaded it twice so I deleted it from the "post park photos" section, thinking it was more appropriate under "parkies today". Sorry Bonz, try uploading it again.
I see I’ve missed quite a few lively discussions. Ops Tempo out here is nutz so I’ve been out of the loop a bit. Hey Bonz....what happend to the pic of you and your wife? I saw the post, went to post a few of my own and when I went back yours had disappeared....Anyway, good to see you again if only for a brief moment....Skydiving sex while tripping....Marty, I think I’ll have to go for the eclipse, I’d wind up as a stain on the grass. I hope all of you and your families are healthy and doing well. I’ll be headed back stateside as of 10/6 to spend some much needed R&R with the wife and kiddies....Although Chris has a huge Honey-do list for me....to include installing a woodburning stove...I can see the local headlines now....Idiot installs stove & goes to Iraq, wife burns down house! If anybody is in the VA area 10/6 - 10/24 look me up. Adios
Ummm.... I’m not sure I’d agree that watching a total eclipse happen is more intense than having free-fall sex on acid. I’m pretty sure those are two separate experiences, and that the free-fall acid sex would be a little more exciting.
BTW, my advice: don’t forget the talcum powder. Those straps chaff pretty badly once the chute opens.
Where are you guys some Icebreaking cruise in Alaska? Great to see the long hair again Bones. Hey if anyone has any interest and a few grand to spare the longest total eclipse of our liftime (6 1/2 min.) is happening on July 22 next year. We are going to Shanghai to see it , if anyone else is into it let me know. We paid about 1400 a ticket. Ive seen 2 total eclipses already and I cant explain how awesome and surreal it. Picture having sex while skydiving on acid, except more intense!
OK, nobody responded so here’s the answer to the riddle. The ADHD drug Mentioned by Marty is called Concerta, which is a contraction of the phrase "Concert A", a.k.a. "perfect pitch."
Hey , by the way how come Rove, Cheney and Bush and Palin’s husband dont need to answer their Subpoenas but if I dont answer one they haul my ass off to jail?
Did I say 700 billion ? Whoops I meant 11 Trillion 315 billion (sec 10, b) Im buying a gun and with whatevers left I’ll buy gold and 4 airline tickets out of here. Just in case.
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
Another example of corporations usurping public interests is Home Owner’s Associations. They are completely un-democratic and unnecessary. They put forth the promise of keeping home values up, but at the cost of your freedom and access to judiciary avenues of dispute resolution. They move the scope of your legal protections from that of public law to that of contract law.
There was a huge rift between my wife and me over this. When we moved to WA, I flat out refused to sign any purchase agreement on a house with a HOA or CCNR in effect. This eliminated from the field at least one home that Rhonda absolutely loved, and she had to settle for an older home that isn’t as fancy. She hasn’t fully forgiven me yet.
When I read the HOA contract, I saw clauses like one that would have made us solely responsible for the lighted brick & mortar sign that graced the entry to the plat from the main road. So if some drunk smashed it up we would have to fix it, within a very short time, or risk having our house seized by the HOA board! Sure, we could fix it and sue the drunk for restitution, but fuck that shit.
That’s generally how they work. You sign a contract that gives the HOA broad powers to seize your ’property’, even if you can’t afford to comply.
Then, I noticed another clause that granted to the board powers to amend and interpret the HOA contract, and final dispute resolution authority. One of the board members was the President of the HOA. Another clause allowed the two other board members to proxy their vote to the President, so he in effect had a mini-monarchy. Guess who the President turned out to be? A nephew of the owner of the development firm that built the neighborhood! It was obvious to me that the developer didn’t want to fully relinquish control of the land and structures even after they were sold on the market.
It gets even more scary when you realize that there are ASSOCIATIONS of Home Owner’s Associations! They want to form fiefdoms across neighborhoods, governed by homogeneous rules that are imposed outside the due process of public law. Avoid!
Doctors, lawyers and drug companies were not allowed to advertise on TV when we were kids. The idea was that some institutions are so important that they should not put marketing and profit above their role in contributing to the public good. That turning health care and legal representation into commodities would ultimately be bad for society. I think the prophecy came true.
"Deregulation" is just another way of saying "taking from the public and giving it to corporations." That and "privatized" are scummy bullshit words designed to fool people into thinking that the action is good for them. What really happens is that new regulations are imposed which put a fence around the industry and declare it private property. The public is then told to trust the special interests who usurped it. Don’t worry, they’ll look out for you. It’s Capitalism! Democracy!
Pitooey.
The water wars have already begun. In my recent trip to Alaska, I learned that most of the cities and towns in the temperate rain forest of the pan handle do not have water infrastructures. It rains so much there that people collect it right off their rooftops.
This struck me as pretty cool. But then I remembered -- when Cochabamba, Bolivia decided to improve it’s pubic water infrastructure, the World Bank made as a term of the funding package that the utility be privatized. San Francisco based Bechtel Corp. was hired to do it, and successfully lobbied regulations that included making it ILLEGAL FOR PEOPLE TO COLLECT RAINWATER. Rates went up. People couldn’t afford WATER. They resisted. After a huge standoff with the corporate/government military that cost 2 lives and hundreds of injuries (including maimings and permanent brain damage), they successfully drove Bechtel and the very government out and took back control of the infrastructure.
Bechtel then SUED them for the profits they had projected. I think the case is still in the courts.
Sickening. How the hell do they sleep at night pulling crap like that, which they KNOW would be be outright rejected on the most basic moral grounds in the U.S., just because they have the might? That’s bullying where I come from.
But there is one ray of hope in Cochabamba’s story. If a bunch of poor peasants in Bolivia can defeat a multi-national corporation, then so can Americans, if we can achieve solidarity. Just another reason to stop all the partisan bickering. While we throw stones, the multi-nationals pick the meat off of our bones.
Show of hands... how many out there know that the National Guard was formed to protect corporations from workers and union organizers in the late 1800’s?
Health insurance? I had health insurance and Im still paying for my first kid hospital bills and hes almost in first grade. I think it was like 2000 a night JUST FOR THE ROOM its a total rip off, criminal. Imagine what the bill would be if we had complications. Have you guys see a parenting magazine lately? They are loaded with ads targeting parents to feed this "medicine"( basically speed) to their kids so they will do their homework. http://www.concerta.net/concerta/pages/children-school.jsp
Its truly fucking criminal. Heres an example of the bullshit "symptoms" of ADHD:
Your child may fidget, talk excessively, run around at inappropriate times and frequently disrupt class. Perhaps school personnel or other adults-even peers-notice that your child "blurts out answers in class," "takes action before thinking" or makes rash decisions. These ADHD symptoms characterize a child who has difficulty with hyperactivity/impulsivity.
OK so Im going to get my 8 year old hooked on speed because he blurts out answers in class? I am ashamed to live in a country which allows this. Now if my kids wants to sniff black beauties at lunch break when hes 16 at least its his own decision.
Yup that rumor has been around for a few months. My guess is that if any Americans had died in the bombing of the embassy in Yemen, we’d already be under martial law.
In other news, John McCain wrote in the Sept./Oct. issue of Contingencies, the magazine of the American Academy of Actuaries, "Opening up the health insurance market to more vigorous nationwide competition, as we have done over the last decade in banking, would provide..." ***OK I’VE HEARD ENOUGH.***
Yea, Thanks for reminding me to put some McBush signs up. Ive also read of ( with no supporting evidence YET) that the election wont happen because the Bush folks are going to stage a huge terrorist incident so that they can declare Martial Law and stay in power. Doubt its true but it would’nt be a shock either.
Oh, just wanted to mention that this is just financial "shock and awe". A tried and true method used across Latin America for decades to throw the population into a state of confusion in order to push through more destructive policy.
FORT LAUDERDALE, FLA. -- If you need proof that this is the most important election in a generation, get this: Jewish grandkids are flying to Florida to visit their grandparents -- without being guilted into it -- to talk their elders out of voting for John McCain.
I agree. I have a PDF that was published by the province of Alberta that describes the plan of action as far as "homogenizing" trucking regulations across Canada, Mexico and the USA. The page on the official Alberta government site that I got it from is no longer there. I think I mentioned this here before.