Christopher Dodd is the worst kind of leader we could possibly have. What kind of chump takes a “sweetheart deal” from Countryside when he oversees that industry’s regulation (or lack thereof)? I know, I know, that’s the whole POINT of getting elected to Congress, to feed at the trough of graft. I get that. But, jeesh, Chris. Be a little more shamed, would you?
Now, he’s calling for the resignation of the head of GM as a condition of bailout.
Okay. Dodd and Obama say things like Obama did on TV today:
“The big three U.S. automakers have made repeated strategic mistakes,†Obama said. “They have not managed that industry the way they should have.†Any financial aid must be “conditioned on them making significant adjustments.â€
Is he kidding? What business has he or Dodd ever run that he can make statements like that? Where did these geniuses, almost all of them in Congress there because they couldn’t make the kind of living they can get stealing from the taxpayers, relying on their business acumen or hard work in the private sector, get their business savvy?
What business do they have telling anybody anything? Wasn’t Dodd part of the oversight of the financial industry (hence, the kickbacks and sweetheart mortgages he got) that is melting down? Wasn’t he talking about how healthy it was when there were those ringing alarms about Fannie and Freddie, only to be beaten down and called idiots for their opinions that we were heading for disaster?
Christopher Dodd is a failed regulator, and should be given no oversight of anything more important than a mop, but I’m sure he’d screw that up as well.
The Cutting Edge lays out the promises made, none of which have been kept. Treasury Secretary Henry Paulson, who should be held accountable for the fiasco he has needlessly piled onto the fiasco that this government’s economic policy has helped create, is apparently, as the site says “winging it.”
By any reasonable assessment, the Troubled Asset Relief Program has been a miserable failure and a complete waste of taxpayer money. The basis used to ram the bill through Congress was the purchase of the toxic assets off of bank’s books. Not one dollar has been used for this purpose. The main purpose for passing the $700 billion bailout was to restore confidence in the markets.
On October 3 when the TARP was signed into law, the S&P 500 was at 1,114. Today, it is 887. The 20 percent decline in the markets in six weeks doesn’t show much confidence in Paulson’s acts. Paulson changing course every few days has shown the world that he is “winging it.†He has floundered from buying toxic assets to jamming capital down the throats of banks to his current plan to support consumer debt. Did Paulson lie to Congress about buying toxic assets?
Paulson has handed out a grand total of $310 billion of the initial $350 billion tranche. He would have to go back to Congress for the 2nd $350 billion tranche. Congress was supposed to create a five-member congressional oversight panel, but hasn’t. The White House was supposed to nominate, and the Senate was supposed to confirm a special inspector general to audit and investigate where the funds are going. After six weeks, President Bush hasn’t proffered a nomination.
Poorly run automakers (GM, Ford, Chrysler), poorly run cities (Atlanta, Philadelphia, Detroit, and Phoenix), and poorly run states (California) are begging for a piece of the pie. The banks that received the first $179 billion have not made any loans with the special money. Indeed, some are using the money to buy other banks. It appears their goal is to become “too big to fail.†Others, like Citigroup, are using the money to buy back bad assets from off the balance sheet SIVs they created. SIVs are the “structured investment vehicle†instruments that Citibank invented in 1988 to become part of its so-called “shadow banking†system. The solvency of the SIV world is now in question.
Hence, TARP has failed.
But then again, maybe not. The TARP has obviously failed to do what we were told it would do, but were we told the truth about its purpose?
I don’t think so.
I believe the TARP may have been intended to provide a huge pile of cash to do two things:
1. Rescue the Wall Street gamblers who created this mess and who are in bed with the regulators. Remember, Paulson worked on Wall Street, so his buddies are his “skin in the game.” Also, remember the corruption that runs rampant through Washington, DC, like Christopher Dodd’s sweetheart loans from Countryside – he’s the head regulator of that industry in Congress now.
2. Keep the stock market bouncing around, and up occasionally, while the Bush Administration is still in the White House. Many think a group funded by Paulson’s TARP money is the entity creating these end of day rallies that in the last half hour of trading, prop up the DOW. Once the money (and the Bush Administration) is gone, these “economic commandos” will disburse, and a massive crash could occur.
U.S. Congressman Ron Paul told Russia Today recently that the G20 Economic meetings were just talk about more of the same, and that behind the scenes, the leaders of the world’s biggest countries were discussing one-world central banking, and managing a single fiat currency.
What would this mean? Disaster.
Keep these things in mind:
Every fiat currency in the history of the world has failed, as the dollar is set to do.
A “reversion to the mean” will not protect the United States’ wealth and the standard of living anywhere near what we have now. This whole thing means that the 20th Century was “The American Century.”
The 21st won’t be.
Editor’s note: Ron Paul was America’s best hope in the 2008 election, but the mainstream media decided to marginalize Dr. Paul, a long-time Congressman from Texas, because though he’s a Republican, Dr. Paul doesn’t seem interested in putting the needs of current one-party system rule (despite the farce the “Republicans” and “Democrats” want you to believe in) above the needs of the American People.
I’ve noticed recently the same phenomenon, that though all indicators say we’re in a severe economic meltdown, and entering a “greater depression,” life still goes on as before. The lights still work, the trucks still roll and in some cases, Black Friday was a success.
But, as we noticed last night, restaurants are empty, the airports aren’t madhouses, and there’s the palpable sense from those in the know that winter is coming.
First of all, it disgusts me that our culture (yes, even the early morning “Black Friday shopping at Wal-Mart” culture is our culture) has fallen into consumerism so deeply that we become animals for a sale on plastic imported-from-China crap. It’s disgusting. There was a crush of people who were so out of individual control that they killed another person to gain first access to what they wanted. If they were hungry people, it would be a tragedy, but somewhat understandable. But they weren’t hungry. In fact based on my limited experience shopping at Wal-Mart, I would assume they were very well, and probably over-fed. This was a riot. Not a food riot, but a plastic, disposable, consumer-good riot.
Even though the first point is sufficient for this post, the more sinister second point is that because we’re (mostly) raional-acting beings, and because Wal-Mart is known for the lowest price-point on plastic crap from China, these people were rioting because they saw getting to that store’s supply of plastic crap from China as the only way to sustain their expectation of Christmas in a crashing economy. In other words, rather than attack the root of the problem by being disciplined this year and not spending money on crap, they’re doing whatever they can to maintain the very behaviors that got us in this mess – excessive consumerism.
This is exactly the same as burning food and ruining topsoil to maintain what Kunstler calls our “happy motoring society.” We grow corn (food) to make ethanol, in an effort to extend the life of the unsustainable auto-centric society, instead of banking the food and taking better care of the topsoil.
This is going to sound strange, but apart from any security responsibilities they may have dropped the ball on, I don’t blame Wal-Mart. They’re simply participating in the market and doing what they should do. I blame the culture we’ve created, the culture that will be our undoing. If we are to survive as a nation, we have to stop making shopping our national pastime, and start making things worth repairing, saving and working harder. We’re past the point of preserving our way of life, that’s a societal evolutionary dead-end.
In these terribly troubled times, as I write this on Thanksgiving Day, 2008, at 3:35am (I’m an early riser), I am a little puzzled, but feeling some hope creep into my thoughts about the leader we elected earlier this month.
Since Ronald Reagan, the first Presidential candidate I voted for, casting that first vote when I was 21, the politics of who the Chief Executive surrounded himself with was at least as important as his own. Though I stress it’s still early, it looks like the far left, who thought they were electing an almost socialist radical got duped. President-Elect Obama is surrounding himself with a moderate to (shockingly) conservative cabinet and panel of advisors.
I have to admit, I’m intrigued and…OK…a little Impressed.
The left is…Well, pissed.
The appointment of Paul Volker to a panel of experts hoping to stabilize the economy is, though hopeless, a great choice. He should be the Chairman of the Fed again, but then any one of the cast of the television show Laverne and Shirley would be better than Ben Bernanke.
Retaining Robert Gates as Secretary of Defense is on the one hand an example of promise-keeping, as Obama said he’d have Republicans in his administration, but on a darker note, probably a reflection of what the President-Elect has learned since getting a big upgrade in the quality of his intelligence briefings. My gut tells me he’s heard things that rule out his changing horses at the Pentagon right now, and thought it could be as simple as the fact that we’re currently in two wars, it’s probably much more than that.
Making Hillary Clinton Secretary of State is, in my opinion, one of the boldest, most Machiavellian moves ever. Many wondered exactly why Obama would appoint such a bitter rival for the nomination that led to his election. What better way to eliminate Hillary from the game than to make her Secretary of State? To accept the job, which takes much, much more tact and finesse than Hillary possesses, she must give up her Senate seat. Hillary Clinton will fail at State. No one likes her, and that’s a problem. She’ll run, like a bull through a china shop, over allies and adversaries alike. To be Secretary of State, I would think you would need a huge reservoir of humility and empathy, traits that Hillary Clinton has famous shortages of. Once she’s gone from the State Department, she’s gone for good. Her Senate seat will have been filled. She’ll be out, unless the Governor of New York, David Paterson, replaces her with Bill. Nice.
The title of this post says it all. If you’ve paid any attention to the media coverage at all, you’re familiar with Euro Pacific Capital President Peter Schiff. He was the main punching bag for those who liked to scoff at analysts and money experts calling for recession or worse the past couple years. Schiff took punch after punch from fools like Ben Stein, Art Laffer and Mike Norman when put up against him on arguing-head shows on cable.
Here’s a compilation of some of those appearances. Note the amount of scorn heaped on Schiff as he accurately called what was coming. The laughing at Schiff’s on-target message is a sad commentary on the skills of the pundits that populate the mediasphere.
If you go to blogs written by some of these nay-sayers, you’ll be entertained by their responses to readers calling them out on being completely wrong. They get very technical and petty (“keep drinking Schiff’s Koolaid” as Norman tells one reader).
I think I will. It may not be the tastiest, but it’s sure a lot more nutritious than whatever you’re pouring, Mike. My suggestion is make sure you’ve read everything Peter Schiff has written, and lose the bookmarks for the sites written by those who laughed at him.
As expected, Barack Hussein Obama was elected the 44th President of the United States on Tuesday. His supporters are jubilant, his opponents bitter. I understand both emotions, but both are pointless.
To those who voted against Obama:
Get over it. I’m one of you, as once again, I had to hold my nose and cast my ballot. Four years ago, it was for John Kerry, who I didn’t agree with politically, but knew we needed to change course for both geopolitical and economic reasons. I was right. It’s all the more frustrating for me and those who believe as I do, because this year, we had Ron Paul, until the Media and Republican Party marginalized Dr. Paul, the only candidate who showed he knew “his fanny from first base” as my father would say.
I understand if you want to bolt for the exits, I’m considering how best to do the same thing, but it has nothing to do with our pick for President. It’s economic, and there’s very little that President Obama will be able to do about it, except make it worse, and create for us a longer period of suffering. That, I fully expect. To those rabid opponents, you definitely need to get over it.
By all means, do what you can to get his birth certificate and make sure he hasn’t knowingly misrepresented his constitutional qualifications to be President, but I do not believe he is Muslim, a foreign agent or the Anti-Christ. At the worst, I believe he is an aggressive, ambitious politician, and I don’t mean that as a compliment. When he talks, assume what he says about “service” is more “acquistion of power.” I believe his lack of a track record (all those “present” votes) were more about his using his office not to serve his constituents, but instead his political ambitions, than it was about his being a mysterious servant of Islamic terrorists, a new Socialist/Communist/Fascist “strongman” or anything else the breathless conspiracy theorists hint at. Again, Republicans, get over it and start rebuilding the Party.
To those who voted for Obama:
Calm down.
Smoke a cigarette (even if you’re a non-smoker). He’s not the messiah. The world is not going to magically change on January 19th, and the higher and more you euphorically embellish just how awesome life will be when the Bush family moves out of the White House, the quicker and more massive the backlash will be when you realize you will still have to get up in the morning, go to work, do what your boss says, pay your bills and worry about pretty much the same things you had to worry about before. I especially pity the person, and there will be many of them, who focused their life over the past year, on getting Obama elected, but will find themself getting laid off next week, next month, or early in January. That story will be told many, many times.
George W. Bush didn’t, by any stretch of the imagination, help the economic situation we’re in. But he didn’t create it, either. No one person did. The biggest share of the blame goes to a Congress who, not understanding the economics of what was happening, did nothing to rein in those who were playing fast and loose with the rules to take incredibly dangerous long-term risks (to all of our financial futures) in the hopes of fabulous short-term profits. I have to admit a little pity for Obama, too. Why he and McCain wanted this job is beyond me.
For the President-Elect, life is going to be difficult when his supporters, no longer united by a common enemy (the Republican Party), will look at each other and realize that what they all had in common was the desire for change. But, they will soon find out that they all have very different ideas about what that change should look like. At that point, they won’t be united anymore.
Where we go from here.
I agree with Obama when he says we need to come together to fix the problems our nation faces. But, I must admit, when he talks about us always being the “United States of America,” I had to wonder, really?. The developing economic problems we’re facing here will do more separating than bringing together. I hope our Republic can survive it.
First of all, let me state my opinion.
Predictably, the bailout has failed.
U.S. Congressman Ron Paul told 
First of all, it disgusts me that our culture (yes, even the early morning “Black Friday shopping at Wal-Mart” culture is our culture) has fallen into consumerism so deeply that we become animals for a sale on plastic imported-from-China crap. It’s disgusting. There was a crush of people who were so out of individual control that they killed another person to gain first access to what they wanted. If they were hungry people, it would be a tragedy, but somewhat understandable. But they weren’t hungry. In fact based on my limited experience shopping at Wal-Mart, I would assume they were very well, and probably over-fed. This was a riot. Not a food riot, but a plastic, disposable, consumer-good riot.
In these terribly troubled times, as I write this on Thanksgiving Day, 2008, at 3:35am (I’m an early riser), I am a little puzzled, but feeling some hope creep into my thoughts about the leader we elected earlier this month.
As expected, Barack Hussein Obama was elected the 44th President of the United States on Tuesday. His supporters are jubilant, his opponents bitter. I understand both emotions, but both are pointless.