What We Learned in the Last Two Weeks

Okay, I have to make a couple of observations about this whole economic meltdown thing. Before they vote to bail out the system – and they will – just not on Paulson’s terms.

First, despite the desperation that brought Paulson to beg for money right now or the sky will fall tomorrow, the sky didn’t fall tomorrow. Or the next day. Or the next week. Sure the markets are “adjusting” with big swings up and down (obviously someone still has money), banks are continuing to fail, and now the credit market is frozen. But the world is still turning, the billionaires are buying up bargains on their own (infusing ready cash here and there), and the dollar still remains stronger than it will be after we print another trillion of them.

Second, it’s beginning to look like it really was an end game scam, one last big robbery before their power runs out. Paulson isn’t going to get the absolute power he tried to grab, nor is he going to get any waivers on oversight or blanket immunity from judicial review. Which means he can’t just pass out billions to his cronies and benefactors. The robbery didn’t go off as planned.

The “assets” we have already bought – Fannie Mae and Freddie Mac – are riddled with evidence of felonious behavior and the FBI is hot on the case. AIG’s books don’t look to be any less felonious, they’re being investigated as well. People will likely go to jail.

Now, don’t get me wrong. There will be a bailout because the economy must keep going. The rich will get way more than they deserve, the rest of us get stiffed as usual. So don’t believe any of them when they claim to care about We the People. They don’t. One of these days wwe might decide to inform them in no uncertain terms that we don’t care about them either. Until then, best of luck to us!

Filed under Class War, Corruption, Economics, Federal Reserve, Market Crash | Comment (0)

Moses Meets the Burning Bush

What happened today on Capitol Hill:

Secretary of the Treasury and ex-CEO of Goldman-Sachs Henry Paulson called Congressional leadership for a get-together. He tells them something – no doubt using charts and graphs – so horrifying, so absolutely terrifying that they all come out looking like Moses (er… Charlton Heston) after meeting the burning bush. Hair’s grown a foot and is stark white, their beards fall to their bellies, they’ve all got that far-away look in their red-rimmed eyes, and their hands are shaking. None dare breathe the edict: Set My People Free!

So. What was it, exactly, that Paulson told them? Gee, we dunno. Nor are we allowed to know. Just as if this were top secret intelligence pinpointing WMDs that don’t exist right in Saddam’s palace, we don’t get to find out. Even though it’s supposedly OUR trillion or three or four they MUST have right now to bail themselves out. With a laughable “emergency” plan that, Deputy Admin press secretary Tony Fratto said just today, was drawn up over the course of months.

Months. Not days or even weeks. They sure as shit knew it was coming, and simply waited for just the right moment of panic to spring it on us as if the end of the world is mere hours away. Ah, the lively tune reverberates in my mind…

“It’s the end of the world as we know it, and I feel fine!”

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Filed under Analysis, Appointees, Class War, Corruption, Economics, Federal Reserve, Humor, Market Crash, Outrage | Comment (0)

As the Cookie Crumbles…

Financial news of Wall Street meltdowns, Fed takeovers of big insurers and mortgage giants, and some serious death and destruction on the Texas coast from Hurricane Ike (which we’re finding out about piecemeal after 6 days of “Heckuva Job, Skeletor”), it has become more and more obvious that the country is in such terrible trouble that this will be one of the most important Presidential elections of our lifetimes.

So perhaps it’s not so surprising that both friends and enemies of Republican candidate John McCain are beginning to become alarmed at what appears to be some sort of serious mental decline that has taken hold and accelerating rapidly. What’s going on?

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Filed under Campaigns, Diplomacy, Federal Reserve, Foreign Policy, John McCain, Market Crash, Presidential Candidates | Comment (0)

4,000 And Counting…

The Associated Press reported on Easter Sunday that the American Death Toll in Iraq Reaches 4,000 after a roadside bomb killed four soldiers in Baghdad.

At least 61 other people died across Iraq on Sunday, but the U.S. is not keeping any official records of how many Iraqis pay the ultimate price for the ‘freedom’ we have brought them. …and bought them, at a price so far to American taxpayers of ~$600 billion.

Meanwhile, back in Manhattan, J.P. Morgan upped its bid for the bankrupt Bear-Stearns investment bank to $10 a share, 5 times the negotiated price agreed upon last weekend just in time for the Tokyo stock market opening on St. Patrick’s Day. The unprecedented bailout of an investment bank that is not a member of the Federal Reserve system was seen as necessary to prevent a worldwide financial market meltdown. The Fed is guaranteeing Bear-Stearns’ worthless investments up to $30 billion (of American taxpayers’ money).

Speaking of American taxpayers’ money, the Bush administration assures us that the $200 – $600 in tax rebates set aside earlier this year in hopes of stimulating the economy (perhaps we’ll all go out and purchase shares of J.P. Morgan?) will be mailed in May. Perhaps this will come just in time for millions of soon-to-be homeless Americans to buy a nice three-room tent to live in during the warm summer months. If they’re very careful with their budget, some of those families might save enough to buy kerosene space heaters for their tents before winter!

Filed under Anti-War, Class War, Depression, Economics, Federal Reserve, Memorials, Military, War | Comment (0)

The Sky is Falling! …Oops

Bear-Stearns Bailout: Billionaires 1, Taxpayers 0

Hat Tip to The Bonddad Blog

This video consists of clips of Treasury Secretary Henry Paulson lying his ass off on George Stephanopolis’ Sunday talk-fest (you can tell he’s lying because his lips are moving, but pay attention to his “tell” – how he blinks, stutters and shakes his head when he tells lies, negating what he’s saying. The man just cannot defend bailing out a speculative investment bank – the fifth largest in the country – while doing precisely zip to help the citizens who are losing their homes to this mess.

Which, unfortunately, is only going to get worse as more greedy billionaires who haven’t paid any taxes since Bush exempted them get the people they’ve screwed (US citizens) to bail them out of their bad decisions. If the US taxpayers have to bail out the billionaires, shouldn’t we also make them pay some taxes? How about refinancing their homes at a flat 4% for 30 years, as if they’d gotten those loans from a fed-guaranteed lender (since that’s now who owns the paper)? How about wiping out THEIR debts?

I like this “Hillbilly Report,” thought readers would find it refreshingly truthful too. Enjoy!

Filed under Analysis, Appointees, Class War, Corruption, Depression, Economics, Federal Reserve, Market Crash, Policy, Recession | Comment (0)

AP: Economy Skids to Near Halt

Bread line, New York City

Associated Press article

Filed under Economics, Federal Reserve, Market Crash | Comment (0)

I’ll Gladly Pay You Tuesday…

They called it “Trickle-Down” economics. It was a magical time of new capitalistic ideas and new collaboration between legislators, executive agencies and the Federal Reserve, a new way of managing the flow of money and the creation of wealth in a new and expanding ‘world order’.

It was brave, it was foresighted, it was designed to take America into uncharted territories as undisputed leader of an increasingly designed and aligned world… and it was doomed to fail.

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Filed under Economics, Federal Reserve, Market Crash | Comment (1)