Year: 2008

Maliki Says that Bush Wanted Changes in Withdrawal for Electoral Advantage

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So Nouri al Maliki said in an interview with al-Iraqiya:

MALIKI: Actually, the final date was really the end of 2010 and the period between the end of 2010 and the end of 2011 was for withdrawing the remaining troops from all of Iraq, but they [the Bush administration] asked for a change [in date] due to political circumstances related to the domestic situation [in the US] so it will not be said to the end of 2010 followed by one year for withdrawal but the end of 2011 as a final date. Agreement has been reached on this issue. They are willing to respond positively because they, too, are facing a critical situation.

Impeach Cheney today.

Impeach Bush tomorrow.

Received Via Email

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Heh

Dear [your name goes here]:

I need to ask you to support an urgent secret business relationship with a transfer of funds of great magnitude.

I am Ministry of the Treasury of the Republic of America. My country has had crisis that has caused the need for large transfer of funds of 800 billion USD. If you would assist me in this transfer, it would be most profitable to you.

I am working with Mr. Phil Gramm, lobbyist for UBS, who (God willing) will be my replacement as Ministry of the Treasury in January. As a former U.S. congressional leader and the architect of the PALIN / McCain Financial Doctrine, you may know him as the leader of the American banking deregulation movement in the 1990s. As such, you can be assured that this transaction is 100% safe.

This is a matter of great urgency. We need a blank check. We need the funds as quickly as possible. We cannot directly transfer these funds in the names of our close friends because we are constantly under surveillance. My family lawyer advised me that I should look for a reliable and trustworthy person who will act as a next of kin so the funds can be transferred.

Please reply with all of your bank account, IRA and college fund account numbers and those of your children and grandchildren to wallstreetbailout@treasury.gov so that we may transfer your commission for this transaction. After I receive that information, I will respond with detailed information about safeguards that will be used to protect the funds.

Yours Faithfully,

Minister of Treasury Paulson

McCain “Suspends” Campaign

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It appears that he believes that his campaign the country needs him to go down to Washington so that he can inject politics into the matter.

He is also calling for a delay in the first debate, doubtless because with the financial crisis, there will have to be some questions asked on the economy, though Obama is having none of this, noting that multi-tasking and delegation are crucial skills for a president.

My theory is that he knows that no one is concerned about foreign policy right now, so he wants the foreign policy debate delayed until people will pay attention.

It’s also certain that the economy would come up in the debate, even with the ostensible focus on foreign policy, so he’s looking to cut and run.

Of course, it may just all be a ploy to distract people from Sarah Palin’s disasterous interview with Katie Couric……How the hell do you get owned in an interview by the mistress of softball questions anyway?

H/T This Modern World for the pic

Economics Update

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While I am not a strict monetarist by any means, I’m an engineer, not an economist, dammit,*, I think that the fact that central banks are continuing to shovel money out of helicopters upon the financial markets will eventually create some very real, and potentially severe inflation.

In any case, if the spreads between two year interest rate swaps and treasuries hitting a record, 166.38 basis points, is any indication, all this money is not doing much anyway, except possibly pushing the dollar lower.

It’s not not doing much with real estate either, with US existing home sales falling 2.2% in August, and mortgage applications falling 10.6% last week.

This may be why S&P just cut WaMu’s credit rating again.

In energy, oil was down a bit on report of decreased demand, and retail gasoline fell for the 7th straight day.

*I LOVE IT when I get to go all Doctor McCoy!!!

More Whining from the Rich Pig Crowd

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It appears that the Wall Street bankers, writing the SEC as the American Bankers Association, are objecting to an accounting rule that requires that assets be priced on their balance sheets at a realistic market value.

They find it inconvenient that assets that they won’t even try to sell, because they might get 15¢ on the dollar, which would make them technically insolvent.

Dudes, you are broke. You are not broke because of an accounting rule, you are broke because your so called assets on your so called balance sheets are about as popular as the idea of giving Dick Cheney a rim job.

The American Bankers Association, today’s wankers of the day.

Credit Default Swaps, Barn Doors, and Cows

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Well it appears that the state of New York is moving toward regulating some credit default swaps as insurance.

This is actually important, since it has been known for 300 years that insurance is not just any sort of financial instrument.

Basically, when insurance policies are traded as securities, you get fraud. This was learned in bubbles in the British markets in the 1700s, and so insurance is allowed only for those who have the actual loss.

About a decade ago, New York State said that CDS were not insurance, and so they were not subject to insurance regulation, leading to the current orgy of fraud, speculation, and abuse.

That being said, this is too late, and we know this because SEC Chari Christopher Cox is calling for regulation too, and Cox is a Randroid free-marketeer, and as such, never calls for regulation until it is too late.

Because Palin is a Lazy, Uninformed, Idiot

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Well it appears that the final details of the debate have been negotiated, and after much whining, I’m sure, the McCain campaign got a bubble for Palin:

At the insistence of the McCain campaign, the Oct. 2 debate between the Republican nominee for vice president, Gov. Sarah Palin, and her Democratic rival, Senator Joseph R. Biden Jr., will have shorter question-and-answer segments than those for the presidential nominees, the advisers said. There will also be much less opportunity for free-wheeling, direct exchanges between the running mates.

Biden will still destroy her, the only question is whether she loses it on stage, and if she does, whether Sarah “Barracuda” Palin goes after him with a knife or a gun.

I mean, after, this woman got completely Pwn3d by Charlie Gibson, which is like being gored by Bambi.

Economics Update

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Again, the elephant in the room, the Paulson, “Let’s give it to the American Taxpayer without lube,” plan is not included here.

First, let’s start with the continued deflation of the housing bubble, with home prices down 5.3% in July as compared to the previous year.

This one reason that retailers are forecasting an absolutely dismal holiday season.

It also appears that the Paulson plan, or at least whatever is making its way through Congress is not getting a vote of support from the bond market, with money still fleeing to treasuries, and the spreads between them and short term “safe” private debt remaining historically high.

It’s the same with the dollar, which is up a bit vs. yesterday’s bloodbath, but still weak.

Of more concern are indications that we are seeing a run on hedge funds.

In any case, oil prices are down a bit from yesterday’s hysteria, settling at $106.61/bbl, and retail gasoline is down again.

Comedic Genius

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This guy owes me a whole box of screen cleaners

Obama to Nation: “F$#@ this sh#@, I’m outta here”

September 19, 2008 at 12:21 am · Filed under political humor

In the wake of an epic financial meltdown that threatens to derail the U.S. economy for years, Barack Obama announced he was ending his run for President of the United States, declaring to a stunned nation, “Man, this is bullsh#@.”

In a boisterous and hastily-called press conference, Obama detailed his reasons for the decision. “I was prepared to fight global warming, reform the health care system, repair our crumbling roads, create a 21st century electric grid, find Bin Laden, end the war in Iraq, and bring peace to Israel and the Palestinians. But now you tell me I have to clean up the worst financial mess since the Great Depression too? One that’s going to plunge our economy into a recession for most of my administration while I take the blame? F$#@ that. That’s f$#@ing ridiculous. You guys clean up your own sh#@. I’m outta here.”

….

Read the rest, in all its profane glory, at the link.

Update: Dodd Bill Does Have Bankruptcy Changes

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According to Politico.com:

Among the major provisions Dodd is adding:

  • Authority for bankruptcy judges to restructure mortgages for homeowners facing foreclosure. This was considered a poison pill in a housing bill that passed Congress earlier this summer, but it has gained much more currency now that Washington wants to bail out Wall Street.

Two snaps up to the distinguished gentleman from Connecticut.

Lawmaker Pushback on Paulson’s Plan

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I think that it’s clear that Paulson’s plan will be subject to sagnificant modifications in the legislative process with the Democrats seeing a need for new and stronger regulations, an equity stake in exchange for the bailout, and seeing serious questions raised by the portions of the proposed law that prohibit judicial review.

Of course, if I were them, I’d also be flipping out over the idea of Treasury hiring the Wall Street firms who f%$#ed up in the first place to manage the assets once they are purchased.

I would also note that some Congressmen want some sort of mortgage aid to distressed homeowners to be a part of the plan. (IMNSHO, allowing bankruptcy judges to handle this is the best, cheapest, and most efficient way to handle this).

I should note that the the Wall Street boys hate the idea of restrictions or equity stakes, but they have always wanted, to quote Dire Straits, their , “Money for Nothing”.

It does appear, however that the White House and the Congress are narrowing their differences.