Federal Reserve Rant

[ddmoit]

http://www.youtube.com/watch?v=4sZCNlPwG8o

No, this isn't me. :) I never even heard of this guy until today.

[Sponsored Links]

[PrecisionFlooring]

:goodpost:

[ceramictec]

Wall Street Is Mixed in Seesaw Trading As Markets Digest JPMorgan Chase Buyout of Bear Stearns

NEW YORK (AP) -- Wall Street ended a temperamental session widely mixed Monday after investors grappled with JPMorgan Chase & Co.'s government-backed buyout of the stricken investment bank Bear Stearns Cos.

The Dow Jones industrials recovered from an initial drop of nearly 200 points to finish up about 21 points. The broader Standard & Poor's 500 and Nasdaq composite indexes ended lower as investors bailed out of investment banks and small-cap stocks and fled instead to large companies apt to be reliable during a weak economy.

The buyout of Bear Stearns was certainly more appealing than the alternative: letting the investment bank collapse and causing huge losses for anyone linked to it. And some unprecedented moves by the Federal Reserve gave investors a bit of solace on what many predicted would be a day of precipitous losses in the stock market.

JPM JP MORGAN CHASE CO 40.31 +3.77 +10.32% 49.05%

BSC BEAR STEARNS COS THE 4.81 -25.19 -83.97%

MF MF GLOBAL 6.05 61,796,301 -11.30 -65.13%
MFGlobal, the largest futures brokerage in the world

Bear Stearns
http://chart.finance.yahoo.com/c/3m/b/bsc

Dow
http://chart.finance.yahoo.com/c/6m/_/_dji

[Hamilton]

I sure hope its not history repeating itself, sure appears that way though.

http://www.youtube.com/watch?v=_dmPchuXIXQ

[dl]

The preamble to the Declaration of Independence. If you express this opinion these days you'll be sent to Gitmo.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.

That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.


- DL

[dl]

One of the more complete and cogent articles (http://www.usatoday.com/money/industries/banking/2008-03-17-bear-stearns-bailout_N.htm) on the matter from of all places USA Today.

Also the other article on the sidebar "In FED we trust ..." (http://www.usatoday.com/money/economy/2008-03-17-federal-reserve-crisis_N.htm)

The rich bankers really control the economy, got too greedy and now someone's turning over the money-changers tables. Maybe Jeremiah Wright wasn't so far off when he said "Washington is run by rich white men"? :scratch:

- DL

[jvcstone]

"Washington is run by rich white men"?

Of course it is--has there been a time when it wasn't?? Problem is that for the last 30 years or so, those rich white men have been so much more greedy -- to the detriment of our society as a whole.

JVC

[Scooter]

My experience is that no amount of government intervention can stave off the free market. You can slow the result and even out some bumps, but at the end of the day, the free market will win.

I'd let Bear Stearns crash and burn. We'll end up at the same place, only quicker, without any government intervention.

This is just George Bush trying to salvage his legacy and prevent a recession and I don't believe it will work. Just let the market self correct.

[ddmoit]

I'd let Bear Stearns crash and burn. We'll end up at the same place, only quicker, without any government intervention.Scooter,

I like to celebrate the times that we agree (plus I know it spooks you a little ;) ).

If Bear Stearns was allowed to fail, the people most responsible would be the ones to suffer. Instead, the FED bailed them out, thus rewarding a few well-to-do folks for bad decisions at the expense of us all.

This issue is actually more important than the issue of who our next president will be. Save for Ron Paul, the positions of all the other candidates on this issue are indistinguishable from one another - basically one of ignorance.

[Scooter]

And I feel the same way about the economic bailout ($600 checks) and the proposed interference in the mortgage market. Let the market self correct.

I do think in hard times, the unemployment insurance might have to be tweeked, but I've never been for a "chicken in every pot."

I think the candidates will be different. On one side, they will favor corporate welfare, the other side will favor the other kind of welfare. Both are bad, although with respect to the latter, I do believe that some saftey net is needed for the poorest in our Nation. Donald Trump does not need a saftey net.

[dl]

"Who's the greediest primate on Wall Street 'Planet of the Apes'?" (http://www.marketwatch.com/news/story/whos-greediest-primate-wall-street/story.aspx?guid=%7BED51C441%2DB8D6%2D4901%2DAEBC%2D752E971703D5%7D&dist=TNMostRead)

- DL

[Scooter]

James Cayne. $28 million a year.

Boy, I feel better now that they got a bailout at the expense of the taxpayers. I hope Mr. Cayne can keep his job. I'd hate to see the guy suffer during these tough times.

[ceramictec]

JP MORGAN CHASE CO
(NYSE: JPM)
Last Trade: 42.66
Trade Time: 4:01PM ET
Change: Up 2.35 (5.83%)

I think this a.m. would have been a good time to buy Bear Stearns and get a good "dead cat bounce" after the big fall from yesterday.

BEAR STEARNS COS THE
(NYSE: BSC)
Last Trade: 5.94
Trade Time: 4:01PM ET
Change: Up 1.13 (23.49%)



Fed Cuts Interest.... Stocks Soar

The Federal Reserve slashed a key interest rate by three-quarters of a point Tuesday, capping its most aggressive two months of action in a quarter-century in a battle to halt a spreading credit crisis.

Dow 12,392.66 +420.41 +3.51%

[MudMaker]

Another vote for lettin the Freekin Market Self Correct :bow:

[Davestone]

Self correct, yeah, as long as your own 401k isn't tied to Bear Stearns.Yeah the rich get bailed out but they're holding our money. :bow: The fed is letting it work itself out,and they did announce policy changes to help out the mortgage payers, and future home buyers, but i think basically they don't know what to do and are stalling for time so it can right itself.I find myself tired of watching the money channels, it seems fruitless to keep score at this point.

[ceramictec]

I agree Dave,

If your not in the financial markets heavy, you might as well not watch and let it make it's way.

I have a good amount invested in Gold. I know Gold will always climb.
it was supposed to be $800 by 2008 and $1000 per ounce by 2010.

well with he bad economy,bad housing market people pull their money from stocks,
bonds, etc and put them in Gold. it has really took off in the last year.

http://www.kitco.com/LFgif/au1825nyb.gif

[cx]

I know Gold will always climb.
it was supposed to be $800 by 2008 and $1000 per ounce by 2010.Gold was $800 an ounce back about 1980, Brian. :)

[todd1313]

"Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well."

There are some real bargains out there RIGHT NOW. Well maybe they were better yesterday?

Opportunity is a knockin'.

[ceramictec]

yep CX,

Historical Gold charts show it hit $840 before taking a slow dive over the next few years back into the $300's. from then Gold just sat and fluctuated from 300 to 500 until again recently it has gained popularity as other metals, Silver, Platinum & Platinum.

[dl]

When the gold standard ended it was replaced with a de facto standard of oil when the US got the OPEC countries to agree to only sell oil for dollars. This was a major factor in maintaining the US dollar as the pre-eminent world currency. The danger now is that the oil countries, tired of a declining dollar, will switch to selling for euros rather than dollars further weakening the dollar which is still overvalued considering our current situation printing hundreds of billions to pay for the war. Iraq actually made this switch in 2000 and this was probably one of the reasons the US decided to invade. We switched them back to the dollar but now Iran has started selling some oil for euros and guess what? - we hear threatening talk about invading them.

So gold lost its connection to the currency and the market largely became industrial rather than investment. Because production equaled or exceeded industrial demand the price languished actually declining in real dollars - with the exception of that spike back in the 80's during the last oil/inflation crisis. If you want to make money in the gold market you've got to pay attention to timing - it hasn't been a good long term investment. Right now it looks good but if we somehow or other manage to muddle our way out of this mess it could decline again as fast as it went up.

- DL

[dgunnels]

If you don't want the restrictions of regulations shouldn't you be equally prepared to deal with the consequences?

[ddmoit]

If you don't want the restrictions of regulations shouldn't you be equally prepared to deal with the consequences?Yes. Please, please, please let me suffer the consequences of a truly free market - and reap the benefits!

I find it maddening that the public gets all worked up about business criminals like Kenneth Lay, but think nothing of a Federal Reserve that has stolen 96% of the value of a dollar since 1913. The most evil, diabolical business criminal could not hold a candle to crimes of the Federal Reserve (except those that actually pull the strings of the FED).

We've all heard the tale of the frog that won't jump out of boiling water to save its life if the temperature is brought up slowly. In reality, the frog will get out, which makes him smarter than people whose dollars have all but boiled away.

Nah, let's keep arguing about which political party is the lesser of two evils. It must have the effect of keeping us doped up and unaware of the sting of theft.

[ceramictec]

after that big 400 point jump on Tues. the Dow corrected itself for sure today with a 300 point loss.

http://ichart.finance.yahoo.com/instrument/1.0/%5EDJI/chart;range=1d/image;size=239x110


Stocks Plunge After Tues. Rally-

Stocks pulled back Wednesday as investors cashed in gains a day after the market's huge rally and digested better-than-expected results at Morgan Stanley that eased concerns about the investment banking sector.

[Eric Philson]

Scary. http://www.mcalvany.com/podcast/?p=15

[sandbagger]

please let me suffer the consequences of a truly free market - and reap the benefits! you mean like they did in 1929, Dan? I've prolly studied just about enough about the Big Crash to be dangerous, but one thing that jumped out was how the lack of oversight let all the snake oil salesmen put essentially worthless stocks on the market. :suspect:

mind you, I'm not a big-reg guy at all, but the reality is that there are crooks out there looking for the next quick buck. But a bigger problem is perhaps the big institutional computer traders. These guys - unchecked - can dictate the markets and drive the little guys out. I happened to catch Cramer a couple of nights ago and he mentioned something called the "uptick" rule. The SEC removed this a few months ago and he feels strongly that it is a major factor in the volatility we see today. I didn't really understand it (was multi-tasking at the time) but it sounded interesting.

Unfortunately, it appears that pure free markets - like pure democracies - trend toward chaos pretty quickly. The trick is finding a sensible balance. :scratch:

[HS345]

Art, I can't speak for Dan, but I don't think he'll be too impressed with anything Cramer has to say. The guy that delivered the "Federal Reserve Rant", that prompted this thread (Don Harrold), is about as anti Jim Cramer as you can get.

I get the feeling that Don Harrold guy is a little jealous of Cramer. :nod:

[dl]

> Yes. Please, please, please let me suffer the consequences of a truly free market - and reap the benefits!

You're doing that right now with the mortgage mess. The problem is that as housing prices rose so far as to be unaffordable using traditional funding with their associated underwriting requirements, new mortgage instruments (mortgage backed securities and derivatives) were invented to keep the bubble going and profits coming in for mortgage brokers, and creating a whole new market for investment banks like Bear Stearns.

The problem is that regulation didn't keep up with invention and these mechanisms were virtually unregulated as are investment banks themselves. Now if you're a libertarian (or not) it may be fine to let Bear Stearns go down in flames for their sins (and it essentially did afa the company, employees, and stock holders), but the problem is that they might well have taken down a number of commercial banks that had loaned B/S money in a domino effect. This could have been rather disastrous to many people (like us) who had nothing to do with the foolishness that went on in the mortgage market. It will be interesting to see how the other four big investment banks fare through this.

- DL

[sandbagger]

Greg - I learned the hard way not to get married to any particular analyst out there. I find Cramer entertaining for the most part, and the man does have some pretty good credentials as a real money manager. But I do wonder sometimes if he doesn't lean a bit much to the left as I listen to some of his comments. I will tell you I thought he was a little too generous at times of his praise for Elliot Spitzer - and that was before the scandal broke. :x:

All these guys get on rants at times over their pet peeves, and that's when you want to look closer. If it looks like it's getting personal, it's time to look closely for 2nd opinions. If you find ones you trust that correlate, great, but it you don't...... :shrug:

[HS345]

But I do wonder sometimes if he doesn't lean a bit much to the left as I listen to some of his comments. I will tell you I thought he was a little too generous at times of his praise for Elliot Spitzer - and that was before the scandal broke.
I used to listen to Cramer back when he had a radio program. He definitely leans to the left, and is an admitted demo-crat (I think there's treatment available for that :D) . Back during his radio days, he was an ardent supporter of Spitzer and his "corruption busting" antics. Turns out, Spitzer was nothing more than a hypocrite. I did hear Cramer say the other day that he is good friends with the Spitzer's, and will still be after this whole affair.

I haven't really watched Mad Money all that much since it has been on the air, so I don't really know if Cramer has changed his ways or not. But back when I used to listen to him on the radio, he was always quick to admit any and all bad calls he made, on the air. And, there is no question he has major money managing experience.

So, if it is true that he didn't admit fault after his bad B/S call, and he is going to stick by Spitzer's side, post prostitute scandal, maybe Cramer has sold out his integrity. That would be a shame, because even though he's a left leaner, I've always liked Cramer. :shake:

[muskymike]

I've always liked Cramer.
Me too, when he was on Seinfield! :lol1: :D

[ceramictec]

looking good so far after the Easter holiday and Friday off:

Dow 12,582.26 +220.94 +1.79%

BEAR STEARNS COS THE
(NYSE: BSC)
Last Trade: 11.57
Trade Time: 10:35AM ET
Change: Up 5.61 (94.12%)

[jvcstone]

you mean like they did in 1929, Dan? I've prolly studied just about enough about the Big Crash to be dangerous, but one thing that jumped out was how the lack of oversight let all the snake oil salesmen put essentially worthless stocks on the market.

I've probably studied the "crash" less than you Art, but it is my understanding that the Fed and it's money/ credit manipulations had every thing to do with that crash too. Just as is the case today, an extreme over abundance of monetary liquidity encouraged a market leveraged beyond sustainability.

I believe that when Dan, or any other observer with a libertarian bent mentions free market, they are not referring to any market condition we have had in the last century at least. (well maybe the underground and "black" markets). Central banking and government interference do not make for free market conditions. Ie: Nafta, Cafta, are free market jokes as well as all the "free market" banter being thrown about by any of our potential next rulers.

JVC

[HS345]

looking good so far after the Easter holiday and Friday off:

Dow 12,582.26 +220.94 +1.79%

BEAR STEARNS COS THE
(NYSE: BSC)
Last Trade: 11.57
Trade Time: 10:35AM ET
Change: Up 5.61 (94.12%)
That is good news, I know a couple of people holding some B/S.

[Scooter]

an extreme over abundance of monetary liquidity encouraged a market leveraged beyond sustainability. Correctomundo. Too much cash meant institutions wanted "safte" investments of 8%, and mortgages were deemed safe. Real Estate Broker packaged deal to Small Mortgage Broker, borrowed money to do it; Small Mortgage Broker packaged 5-10 of these to Large Mortgage Broker and borrowered money to do it; Large Mortgage Broker packaged 100 of these to sell to Countrywide and borrowed money to do it; Countrywide packaged 1,000 of these and sold them to Indymac and Bear Stearns and borrowed money to do it; Bear Stearns packaged 100,000 of these to institutional investors and borrowed money to do it.

Thousands of People walk away from their homes. Countrywide defaults in its loan payments to Bear Sterns, BofA etc; All the people downstream have to pony up to the current holder of the mortgages. Upstream, Bear Sterns crashes and burns and there is enough of Wall Street involved as creditors, that a full blown crater would bring down other Wall Street Companies.

Bush and Fed hand out corporate welfare.

[jvcstone]

Bush and Fed hand out corporate welfare.

Yep, the warfare/welfare state in full bloom. Don't recon that it will change much at all anytime soon--no matter which of the chosen ones is anointed next.

JVC

[Scooter]

Well, I do think the Democrats will want a pig to join the sows at the feeding trough, so if corporate America is getting $30b tab of welfare for one company, the Democrats would insist that the price tag to the guys that really need the welfare (poverty level and below) get $30b too. So we'd have two pigs at the trough instead of one.

[HS345]

In 2003 the Dept. of Health and Human Services, and, H.U.D. spent almost 700 billion dollars. That's just for federal spending, not state and local.

I realize that not all of that goes toward social welfare programs, but a sizable portion of it does. Not to mention, these figures are for 2003. I can guarantee the figure hasn't gone down.

From what I understand the combined, federal, state, and local government spending on social welfare programs is about 1.5 TRILLION DOLLORS. :drevil: MOOHOOHAHAHAHAHA!

So another 30 billion for social spending is just drop in the proverbial bucket. PTTTT.....DING! ;)

[Scooter]

Yep, to that I agree. 30b is nothing. It could pay for 4 months of health coverage for every man, woman and child in America without coverage. It could cover 3 years of cost of implementing the 9-11 recommendations. We could spend 5x the amount we do to find a cure for cancer.

Let's see here. What do we do? :scratch:

Find a cure for Cancer? Nope :shake:
Give Health Insurance for the Uninsured? Nope :shake:
Provide Security for Americans by Adopting the 9-11 Commission's Findings? Nope. :shake:

Instead, lets pay Wall Street $30b and keep the CEO with his $28m salary. That sounds better to me. :yipee:

[sandbagger]

well, it's pretty simple - spending for "war" is in the Constitution. Welfare entitlements are not. (and paleeeeeze don't give me that old "general welfare" BS :shake: )

[sandbagger]

but it is my understanding that the Fed and it's money/ credit manipulations had every thing to do with that crash too. well, not everything. I thought that too, but no one ever really explained how the situation got so out of hand in the first place - "overabundance of liquidity" doesn't tell me much. Why did the markets get so overheated? Two things really helped - an ignorant public that lost all sense of risk (many thought stocks were safer than banks) and unscrupulous scam artists selling worthless investments to these idiots. So while the Fed was trying to manage money on the banking side, nobody was minding the store on Wall Street. The Fed was created in 1913, but the SEC didn't appear until 1934. oops.

[HS345]

Attn. Scooter: My last post was a smart alecy tongue in cheek rant.

Besides, what kind of a good liberal are you? I would think you'd be all for another $30 billion spent on social welfare. What gives? :scratch:

You guys like to throw out these big numbers of "uninsured". It really amounts to so much baloney. Many of those "uninsured" are as such by choice. Those stats also count anyone who was uninsured for more than like, 30 seconds. It's a bunch of bull. Just check any emergency room across the country, there is plenty of "health insurance" for illegal aliens, and "the poor". ;)

[Scooter]

Why did the markets get so overheated? Institutional investors were attracked to seemingly "safe" investments secured by real estate (traditionally one of the safest investments, right). A weak dollar makes goods, including real estate, a real bargain for guys in Germany and China. They had lotsa money to provide for home loans, indeed and unlimited supply. No one would ever just walk away from their home loan, would they?

What drives me wild is that we get screwed both ways. I'm OK with the whole free market thing. And if we are signed up on that score, then let the free market make and lose money to their hearts content. The government doesn't come back and say, hey, in addition to those taxes, I want $30b extra from you because you've done so well.

But when the deal craters, here is King George and the Fed wanting to hand out welfare to these guys. The government gets none of the upside and all of the downside on this deal.

I would think you'd be all for another $30 billion spent on social welfare. What gives? Nope, not for corporate welfare. The CEO makes $28m a year, Dude.

Many of those "uninsured" are as such by choice. ...there is plenty of "health insurance" for illegal aliens, and "the poor". Even in jest, you are one cold hearted SOB. This is a huge crisis, and making light of it will not advance the ball. Mark my words. You will see 40% uninsured or underinsured citizens by end of McCain's term.

[HS345]

Scooter, I said I would think you'd be all for another $30 billion spent on SOCIAL WELFARE. What gives?

So I'm not sure why you responded with Nope, not for corporate welfare. The CEO makes $28m a year, Dude.


Even in jest, you are one cold hearted SOB. This is a huge crisis, and making light of it will not advance the ball. Mark my words. You will see 40% uninsured or underinsured citizens by end of McCain's term.
C'mon Scooter, I am one of the most compassionate people I know. The poorest of the poor are covered. Most of the rest choose not to have insurance. There are some very decent catastrophic plans out there. Do some people fall between the cracks? Of course they do. My heart goes out to them. But punishing everybody because of the poor judgment of a few is not the answer.

I don't think universal health care is the answer either, in spite of your propaganda from the WHO, we have some of the best health care in the world. I would be in favor of tax credits to people below a certain income level, to purchase insurance. And not a blanket policy that covers a runny nose, or a stubbed toe. But a catastrophic plan tied to a Health Savings Acct. And no restrictions as to what doctor you could see. If people had to actually shop around for the best price, the cost of health care would have to come down. It's called COMPETITION. And it has worked well for centuries.

Capitalism, and private property rights are the solution to the human condition. Not socialism/communism.

Hey, hold the phone! Am I to understand that you are predicting a McCain win for the presidency? Way to go Scoot. :yipee:

[sandbagger]

once again the big government folks want to that there are people out there who can't get basic medical care. wrong, of course. And Greg's point about the "uninsured by choice" - that number consistently measures about 20%. Mostly 20-somethings who opt out of the company plan so they can drive a new car every couple of years. And many of the "surveys" even try to include seniors on Medicare - after all that really isn't insurance.

I'll say it again - we need to turn back the clock on FDR. Think what would happen if we

- outlawed automatic withholding.
- eliminated fringe benefits and just give the money to employees and let them choose
- got the government out of the pension business

and that's just for starters... :yeah:

[ddmoit]

- outlawed automatic withholding.
- eliminated fringe benefits and just give the money to employees and let them choose
- got the government out of the pension business

Can you name a candidate for president that supports these three points?

Here's one hint: http://thomas.loc.gov/cgi-bin/query/D?c110:1:./temp/~c110NnWQ6A::

[sandbagger]

sorry, Dan, there are only 3 candidates with a chance of getting elected. That's all I care about. (I wish it was otherwise, but that's reality)

[Scooter]

That same logic caused hundreds of thousands, maybe millions of people to go without car insurance. Car insurance by choice, not necessity. The failure to be insured dangerous to them and you and I. Therefore, laws were enacted, presumably in your State too, requiring that people carry insurance, or stop driving. Its for the good the people.

The same rationale would require people to carry health insurance or stop living? Can't do that. So, Goverment must get involved in the health care issue. Otherwise, no emergency rooms will exist for you and I once uninsured reaches 40%, and it will in McCain's Presidency. Mark my words here, you will see a hospital crisis meltdown as corporations shed fringe benefits and people by choice decline to pay for health insurance.

I'm just not sure which McCain I would vote for. Is it the guy that abhores special interests, or who accepts telecom money? Is the guy that refuses to get in bed with the religious right, or who has a love fest with a Racist Reverend? Or is it the guy that wants fiscal responsibility and would vote down an irresponsible tax cut, or the guy that wants to make them permanent? Is it the guy that pledged not to take private money and use public financing, or the guy that is loading up with private money and refusing public financing?

Maybe the Bushies can tell me which John McCain I am voting for?

[HS345]

Here's the latest anti-Jim Cramer rant from this guy. http://www.youtube.com/watch?v=pu0pxcIg-08

BTW, I signed up for this guys "newsletter", and now I get hit with anywhere from 2 to 4 emails a day.

It seems to me this guy has it in for CNBC, and Jim Cramer, and anyone associated with the afore mentioned. If Don Harrold is so great, why doesn't he simply concentrate on his own skills as a trader? I'll tell you what I think. It is obvious to me that he is using the name recognition of Cramer, and CNBC, in an attempt to hit the big time. I don't blame the guy for trying, but this guy is a broken record. :blah: :blah: :blah: :blah:

[jvcstone]

Picked up from the Lew Rockwell blog:

http://www.lewrockwell.com/blog/lewrw/archives/020265.html

JVC

[HS345]

Oh yeah, that's just what we need. More layers of gummint. Yee freakin' ha! :yipee: .................... :cry:

[Scooter]

I'm all for more government control when the sector they propose to control affects the nation as a whole. The subprime sector is one example. They need to have a single federal license for mortgage brokers and appraisers, as well as tightened standards for government guarantied mortgage pools--no 90% LtoV without a credit score of 750. Something like that.

Of course, having a crooked HUD head (a buddy of Shrub) didn't help the whole process. He'll probably go to jail. Details Here (http://www.cnn.com/2008/POLITICS/03/31/hud.resignation/index.html)

May I also add that Richard Bove, a bank analyst with Punk, Ziegel & Co., told CNN Money that he thinks that while it was routine for the Federal Deposit Insurance Corp to step in and save failing banks, the FDIC usually fired the banks' top management teams, eliminate their boards of directors and even place the banks in bankruptcy before negotiating sales to more stable banks. That obviously didn't happen here. The CEO gets $28m a year, guys, and you are paying for it.

It is ironic in a Republican administration that the deficit is so high and spending is uncontrolled. Since 2001, we've seen:

1) Consumer confidence plummeting;
2) The cost of regular gasoline soaring
3) American households have seen $2.3 trillion in equity value evaporate
(stock and mutual fund losses);
4) Americans have seen their home equity drop by $1.2 trillion dollars;
5) 1% of American homes are in foreclosure.

What a disaster in the 1st order this has been.

[HS345]

It's easy to point fingers of blame Scooter. I did however notice that your finger only points one way.
Seems to me we were chugging along pretty good til the marxist socialist elites took over congress in 2006. How come they get no fingers of blame pointed their way from you? Hmmmmm?
I thought they were going to fix the high price of gas? Among other things.
What have they done?

[Scooter]

They've tried but with the scantest of a majority 51-49 if one counts Lieberman, you can't get past a fillibuster on the good issues.

Nice try though; I've always thought the President gets all the credit and all the blame for a good economy.

So yes, the fickle finger of fate points only one direction--the only Harvard Educated MBA businessman President we've ever had--George W. Bush. He's been a complete failure at everything he's ever tried, and the shape he will leave this country in will take decades to repair.

[HS345]

He's been a complete failure at everything he's ever tried
Just keep repeating the secret mantra, and you will surely reach nirvana.

[sandbagger]

They've tried but with the scantest of a majority 51-49 if one counts Lieberman, you can't get past a fillibuster on the good issues. you mean 'good issues' like when the GOP tried to

- drill in Anwar?
- build new refineries? (last one was 30 yrs ago),
- build nuke plants?
- drill in the Gulf? (instead of letting Castro and China drill)
- research in clean coal?

that's only a start, but somehow I suspect Scooter polly doesn't classify ANY GOP-sponsored idea as "good." :rolleyes:

[ddmoit]

I'm quite certain that the Federal Reserve (and the people who control it) is largely responsible for the current economic crisis. I don't pretend to know what their motivation is though. Here's a guy with a theory. The first 2 1/2 minutes is a bit of a rant. The meat of the matter comes after.

http://www.youtube.com/watch?v=eBqwtRubyJM

[ceramictec]

not good news. :tongue:

8:30am USD High Impact Expected Nonfarm Employment Change -62K
8:30am USD High Impact Expected Unemployment Rate 5.5%

Employers cut payrolls by 62,000 in June, the sixth straight month of nationwide job losses, underscoring the economy's fragile state. The unemployment rate held steady at 5.5 percent.

[jvcstone]

Not to worry, Brian. Once again, the feds have it all figured out.

http://www.military.com/Careers/Content1?file=careersArticlesHiringSpree.htm&area=Reference&ESRC=careers-b.nl

Wonder who pays the saleries when more than half the work force is on the governments payroll??

Dan--interesting video, and probably on target. However, I tend to think that they are driving the buck down towards zero so we will readily accept the new currency--the Amero --coming soon to a bank near you.

JVC

[ddmoit]

Brilliant stuff from Tom Woods at Ron Paul's rally...

http://www.youtube.com/watch?v=mp03n7EkTxo

[ceramictec]

not a good start to the week.
--------------------------------------------------------------------

Dow industrials fall more than 300 on Lehman Brothers' Chapter 11 filing

NEW YORK (AP) -- The Dow Jones industrials have fallen more than 300 points as the market reacts to changes in the Wall Street landscape. Treasury bond prices are soaring.
Markets are skidding across much of the globe as investors absorb the bankruptcy filing at Lehman Brothers Holdings Inc. and Merrill Lynch & Co's's forced sale to Bank of America Corp. for $50 billion in stock. And perhaps most ominously, American International Group Inc. is asking the Federal Reserve for emergency funding. The world's largest insurance company plans to announce a major restructuring Monday.

The swift developments are the biggest yet in the 14-month-old credit crises that stems from now toxic subprime mortgage debt.
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Bank of America agrees to buy Merrill for $50B-
AIG looking at "options" for businesses, capital-
Banks roll out $70 billion loan program-
China cuts lending rates, small banks' reserves-
UBS shares hit by speculation of new writedowns-
Industrial output drops worse-than-expected 1.1 percent-
Euro Central Banks Pump Cash Into Money Markets-
Fitch slashes Lehman Brothers' ratings-

:sick:

only good news is:

Oil drops 7 percent on financial turmoil

LONDON (Reuters) - Oil plunged $7 on Monday as investors fled to safer havens, due to turmoil in the U.S. financial system, and on early signs Hurricane Ike had spared key U.S. energy infrastructure.

and yes Gold is up big today from this:

GOLD
09/15/2008 10:00 +10.60

[SteveVB]

This Isnt Good !!

Why? Just cause the market went down? This is good news- the clean up process of the excess liquidity is in full swing, one or two more failiures- the big news here, and the cause for the sell off is that the treasury will not be backstopping any more financial institutions it appears. At least thats the messege paulson is trying to send. You could read this as bad news, but it tells you a little about where we are in the cycle, closer to the bottom than most probably think. BAC buys Merrill too, the problems are being dealt with, and slowly should be normalized. Lending and growth are a ways off though, and if Obama picks up in the polls watch the market fall further, as the prospects of a turn around get pushed back.

Oil is headed to 80, economy around the world slowing, but for how long?

Interesting that we havent had a major terror attack to pile on the troubles....be the perfect time.