Health Care opponents dont speak for YOU, FOLLOW THE MONEY SHEEPLE!

•August 15, 2009 • 5 Comments

Im sure everyone has heard by now about how “town hall” meetings have been disrupted by irate folks angry at what they see as unnecessary government intrusion into their most personal of choices, namely health care decisions…

I am truly amazed that folks arent more discerning here….come ON!  Big Pharma, and Big name Medical Insurance companies have had their cake and eaten it too for far too long now, and who really stands to lose the most if Health Care is centralized?  YOU GUESSED IT, Insurance companies, and other middle-men who have skimmed the cream of the monetary crop now for decades!  Why do you think they pulled out all the stops when the Clintons tried to overhaul the medical care industry?  Because they knew they all stood to lose BILLIONS!  HUNDREDS OF BILLIONS!  Its just incomprehensible to me how any reasonable thinking American wouldnt embrace Health Care reform.  All I can say is:  FOLLOW THE MONEY PEOPLE!!  SEE WHO WOULD HURT THE MOST IF THIS PASSED! Not you or I, thats for DAMN sure!!!!!

LINK

WASHINGTON — The stubborn yet false rumor that President Obama’s health care proposals would create government-sponsored “death panels” to decide which patients were worthy of living seemed to arise from nowhere in recent weeks.

Advanced even this week by Republican stalwarts including the party’s last vice-presidential nominee, Sarah Palin, and Charles E. Grassley, the veteran Iowa senator, the nature of the assertion nonetheless seemed reminiscent of the modern-day viral Internet campaigns that dogged Mr. Obama last year, falsely calling him a Muslim and questioning his nationality.

But the rumor — which has come up at Congressional town-hall-style meetings this week in spite of an avalanche of reports laying out why it was false — was not born of anonymous e-mailers, partisan bloggers or stealthy cyberconspiracy theorists.

Rather, it has a far more mainstream provenance, openly emanating months ago from many of the same pundits and conservative media outlets that were central in defeating President Bill Clinton’s health care proposals 16 years ago, including the editorial board of The Washington Times, the American Spectator magazine and Betsy McCaughey, whose 1994 health care critique made her a star of the conservative movement (and ultimately, New York’s lieutenant governor).

There is nothing in any of the legislative proposals that would call for the creation of death panels or any other governmental body that would cut off care for the critically ill as a cost-cutting measure. But over the course of the past few months, early, stated fears from anti-abortion conservatives that Mr. Obama would pursue a pro-abortion, pro-euthanasia agenda, combined with twisted accounts of actual legislative proposals that would provide financing for optional consultations with doctors about hospice care and other “end of life” services, fed the rumor to the point where it overcame the debate.

On Thursday, Mr. Grassley said in a statement that he and others in the small group of senators that was trying to negotiate a health care plan had dropped any “end of life” proposals from consideration.

A pending House bill has language authorizing Medicare to finance beneficiaries’ consultations with professionals on whether to authorize aggressive and potentially life-saving interventions later in life. Though the consultations would be voluntary, and a similar provision passed in Congress last year without such a furor, Mr. Grassley said it was being dropped in the Senate “because of the way they could be misinterpreted and implemented incorrectly.”

The extent to which it and other provisions have been misinterpreted in recent days, notably by angry speakers at recent town hall meetings but also by Ms. Palin — who popularized the “death panel” phrase — has surprised longtime advocates of changes to the health care system.

“I guess what surprised me is the ferocity, it’s much stronger than I expected,” said John Rother, the executive vice president of AARP, which is supportive of the health care proposals and has repeatedly declared the “death panel” rumors false. “It’s people who are ideologically opposed to Mr. Obama, and this is the opportunity to weaken the president.”

The specter of government-sponsored, forced euthanasia was raised as early as Nov. 23, just weeks after the election and long before any legislation had been drafted, in an outlet with opinion pages decidedly opposed to Mr. Obama, The Washington Times.

In an editorial, the newspaper reminded its readers of the Aktion T4 program of Nazi Germany in which “children and adults with disabilities, and anyone anywhere in the Third Reich was subject to execution who was blind, deaf, senile, retarded, or had any significant neurological condition.”

Noting the “administrative predilections” of the new team at the White House, it urged “anyone who sees the current climate as a budding T4 program to win the hearts and minds of deniers.”

The editorial captured broader concerns about Mr. Obama’s abortion rights philosophy held among socially conservative Americans who did not vote for him. But it did not directly tie forced euthanasia to health care plans of Mr. Obama and his Democratic allies in Congress.

When the Democrats included money for family planning in a proposed version of the stimulus bill in January, the socially conservative George Neumayr wrote for the American Spectator: “Euthanasia is another shovel ready job for Pelosi to assign to the states. Reducing health care costs under Obama’s plan, after all, counts as economic stimulus, too — controlling life, controlling death, controlling costs.”

Ms. McCaughey, whose 1994 critique of Mr. Clinton’s plan was hotly disputed after its publication in The New Republic, weighed in around the same time.

She warned that a provision in the stimulus bill would create a bureaucracy to “monitor treatments to make sure your doctor is doing what the federal government deems appropriate and cost-effective,” was carried in a commentary she wrote for Bloomberg News that gained resonance throughout the conservative media, most notably with Rush Limbaugh and the Fox News Channel host Glenn Beck.

The legislation did not direct the coordinator to dictate doctors’ treatments. A separate part of the law — regarding a council set up to coordinate research comparing the effectiveness of treatments — states that the council’s recommendations cannot “be construed as mandates or clinical guidelines for payment, coverage or treatment.”

But Ms. McCaughey’s article provided another opportunity for others to raise the specter of forced euthanasia. “Sometimes for the common good, you just have to say, ‘Hey, Grandpa, you’ve had a good life,’ ” Mr. Beck said.

The syndicated conservative columnist Cal Thomas wrote, “No one should be surprised at the coming embrace of euthanasia.” The Washington Times editorial page reprised its reference to the Nazis, quoting the Aktion T4 program: “It must be made clear to anyone suffering from an incurable disease that the useless dissipation of costly medications drawn from the public store cannot be justified.”

The notion was picked up by various conservative groups, but still, as Mr. Obama and Congress remained focused on other matters, it did not gain wide attention. Former Senator Tom Daschle of South Dakota, an advocate for the health care proposals, said he was occasionally confronted with the “forced euthanasia” accusation at forums on the plans, but came to see it as an advantage. “Almost automatically you have most of the audience on your side,” Mr. Daschle said. “Any rational normal person isn’t going to believe that assertion.”

But as Congress developed its legislation this summer, critics seized on provisions requiring Medicare financing for “end of life” consultations, bringing the debate to a peak. To David Brock, a former conservative journalist who once impugned the Clintons but now runs a group that monitors and defends against attacks on liberals, the uproar is a reminder of what has changed — the creation of groups like his — and what has not.

“In the 90s, every misrepresentation under the sun was made about the Clinton plan and there was no real capacity to push back,” he said. “Now, there is that capacity.”

Still, one proponent of the euthanasia theory, Mr. Neumayr, said he saw no reason to stop making the claim.

“I think a government-run plan that is administered by politicians and bureaucrats who support euthanasia is inevitably going to reflect that view,” he said, “and I don’t think that’s a crazy leap.”

ANOTHER ARTICLE:

Who’s behind the attacks on a health care overhaul?

By Margaret Talev | McClatchy Newspapers

WASHINGTON — Much of the money and strategy behind the so-called grassroots groups organizing opposition to the Democrats’ health care plans comes from conservative political consultants, professional organizers and millionaires, some of whom hold financial stakes in the outcome.

If President Barack Obama and Congress extend health insurance coverage to millions of uninsured Americans, raise taxes on the wealthy to pay for it, and limit insurers’ discretion on who they cover and what they charge, that could pinch these opponents.

Most of them say they oppose big government in principle. Despite Obama’s assurances to the contrary, many of them insist that the Democrats’ legislation is but the first step toward creation of a single-payer system, where the federal government hires the doctors, approves treatments, sets the rules and imperils profit.

These opposition groups appear to have spent at least $10 million so far on ads attacking the Democrats’ plans. Still, supporters of a health care overhaul have outspent opponents by more than 2-to-1 so far, according to Evan Tracey of the Campaign Media Analysis Group, which tracks ad spending. Supporters include drug makers angling for their own protections, unions, the American Medical Association and AARP, the seniors’ lobby. Supporters announced this week that they intend to spend $150 million promoting an overhaul.

The opposition groups’ names sound catchy and populist: Patients First. Patients United. Americans for Prosperity. Conservatives for Patients’ Rights. FreedomWorks. 60 Plus. Club for Growth.

Here’s who’s behind them:

Conservatives for Patients’ Rights is led by health care entrepreneur Rick Scott, the co-founder of Solantic urgent care walk-in centers, which he’s spread across Florida and is looking to expand. While 80 percent of its patients have at least some insurance, Solantic also bills itself as an alternative to emergency-room care and a resource for patients with no insurance.

Scott left his job as CEO of the Columbia/HCA hospitals during a federal Medicare fraud probe in 1997 that led to a historic $1.7 billion settlement. He wasn’t prosecuted and got a golden parachute.

Solantic’s growth, Scott said in a telephone interview, is due in part to the trend in which “deductibles and co-payments are going up. As that happens, more people want us.”

Scott said he wasn’t concerned that the Democrats’ proposed revisions would undercut his business: “It’s irrelevant to us.” Instead, he said he opposes the Democrats’ plans because he doesn’t believe that government involvement will contain health care costs. He sees it killing off the best private insurance plans and ultimately leading to a single-payer system, which he predicted would lead to waiting lists and denial of treatments.

Scott said he supports some government intervention — such as preventing insurers from dumping sick patients. Those who can’t afford coverage on their own should get vouchers or tax credits, he said.

FreedomWorks, which has been advocating against the overhaul but has not launched TV ads, is chaired by Dick Armey, the former Republican majority leader of the House of Representatives from Texas.

But also noteworthy are the group’s other backers and board members. They include billionaire flat-tax proponent and former GOP presidential candidate Steve Forbes; Richard J. Stephenson, who founded Cancer Treatment Centers of America, which offers alternative as well as standard therapies, sometimes not covered by insurance; and Frank M. Sands, Sr., chief executive officer of an investment management firm whose offerings include a Healthcare Leaders portfolio.

“They’re on our board because they support lower taxes, less government and more freedom,” said FreedomWorks spokesman Adam Brandon.

Matt Kibbe, the chief executive officer of FreedomWorks, said its members believe that “the government is already way too involved in the nation’s health care system” and that government is to blame for health-cost inflation.

Kibbe acknowledged that private insurance is out of reach for many small businesses and individuals, but he contended that can be dealt with without creating a government-managed exchange. Like Scott, he expressed concern that more government interference would lead to a single-payer system, which would “inevitably” impose rationing of treatments to contain costs.

Patients First and Patients United are creations of a larger group called Americans for Prosperity. AFP’s Web site describes a grassroots organization with more than 700,000 members that advocates “for public policies that champion the principles of entrepreneurship and fiscal and regulatory restraint.”

It was started by billionaire David Koch, of the Koch Industries oil family, one of the country’s top donors to conservative, free-market causes. The foundation’s board includes Art Pope, a former North Carolina legislator also involved in conservative causes, whose family owns hundreds of discount stores.

Tim Phillips, AFP’s president, is a former Republican congressional staffer who helped former Christian Coalition executive director Ralph Reed start up the consulting firm Century Strategies in the 1990s. Clients paid the firm to build Christian grassroots support for various business causes. That included work for since-convicted lobbyist Jack Abramoff.

The group, along with FreedomWorks, was involved in promoting the anti-tax “tea parties” earlier this year. AFP also is organizing a campaign “exposing the ballooning costs of global warming hysteria.”

In an interview, AFP’s Phillips said that he couldn’t think of anyone on his board with a direct financial stake in the health care industry. “It’s more freedom-based,” he said. “They have a deep interest in protecting economic freedoms.” He also said that no one in his organization believes that more government involvement in health care will lead to reduced costs for taxpayers.

By Labor Day, he said, his group will have organized 600 rallies on health care.

“Americans are looking at these rallies that are happening and the town-hall turnouts, and they say, ‘No one group out of thin air could do that,'” Phillips said. “The American people can see through the attacks on the other side, where they try to vilify these groups as being corporate groups or front groups. They’re believing it is in fact a broad groundswell.

“We’re out here saying the truth, which is costs are going to go up and quality is going to go down. And what’s the other side saying? ‘Oh, these are front groups, these are all rich people.’ The attack route’s not going to work. It’s not so far.”

Two other grassroots groups have financed ads targeting peoples’ fears that more government involvement would hurt seniors and hasten end-of-life decisions.

One of them, Club for Growth, which advocates lower taxes, is led by president Chris Chocola, a former Republican congressman from Indiana who lost his re-election bid in 2006. Club for Growth this week announced a $1.2 million ad campaign against a health care overhaul, to run in North Dakota, Colorado, Arkansas and Nevada.

The other, 60 Plus Association, is a conservative senior advocacy group that wants to abolish the estate tax. Singer Pat Boone is the group’s national spokesman. Chairman Jim Martin started the group in 1992 with fund-raising help from conservative direct mail guru Richard Viguerie. It spent $1.5 million on TV ads opposing a healthcare overhaul in the last week.

Martin declined to identify his major donors. In 2006, he acknowledged that his group was getting funding from the pharmaceutical industry. But this year, pharmaceutical companies lead the spending spree on behalf of a health care overhaul.

“The shoe’s on the other foot,” Martin said. “They’ve gotten in bed with the White House.”

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Why Reagonomics and other Voodoo Economics programs FAIL

•August 3, 2009 • 2 Comments

Anyone who has seen firsthand the smoke and mirrors that came about during the Reagan years must now be screaming daily “I TOLD YOU SO!!!”  Why?  because it is patently OBVIOUS what happens when you pander to the Corporations and neglect the middle class, or the working classes.  In a nuthsell, Reagan said, you give tax breaks to the rich, it will “trickle down” to the poor. Then Vice President Bush termed this “voodoo economics,” and history is proving him right…..

VoodooDoll-2

So, Reagan (even though you’re dead) pay attention because YOU WERE FRIGGING WRONG!  The rich dont give a damn about the less fortunate, noblesse oblige is a relic, and giving the multinationals free reign and allowing them to offshore and downsize and outsource and close factories in towns all across America brought us to this:  FOLKS WHO CANT PAY THEIR BILLS BECAUSE THE JOBS WENT AWAY….Then, you have the greedy lenders/bankers/mortgage industry….all to willing to throw caution to the winds and ignore the principles of sound lending….getting “creative” with interest rates and suckering in folks who foolishly forget to be prudent when they figure the cost of a home.  One income or two?  doesnt matter, let tomorrow take care of itself.  We’ll delay the inevitable with a balloon payment and an ARM.

On top of the bailout (which was the SINGLE WORST ECONOMIC CATASTROPHE to befall this country, is it any wonder that:

AP ENTERPRISE: Federal tax revenues plummeting

By STEPHEN OHLEMACHER, Associated Press Writer Stephen Ohlemacher, Associated Press Writer 2 hrs 47 mins ago

WASHINGTON – The recession is starving the government of tax revenue, just as the president and Congress are piling a major expansion of health care and other programs on the nation’s plate and struggling to find money to pay the tab.

The numbers could hardly be more stark: Tax receipts are on pace to drop 18 percent this year, the biggest single-year decline since the Great Depression, while the federal deficit balloons to a record $1.8 trillion.

Other figures in an Associated Press analysis underscore the recession’s impact: Individual income tax receipts are down 22 percent from a year ago. Corporate income taxes are down 57 percent. Social Security tax receipts could drop for only the second time since 1940, and Medicare taxes are on pace to drop for only the third time ever.

The last time the government’s revenues were this bleak, the year was 1932 in the midst of the Depression.

“Our tax system is already inadequate to support the promises our government has made,” said Eugene Steuerle, a former Treasury Department official in the Reagan administration who is now vice president of the Peter G. Peterson Foundation.

“This just adds to the problem.”

While much of Washington is focused on how to pay for new programs such as overhauling health care — at a cost of $1 trillion over the next decade — existing programs are feeling the pinch, too.

Social Security is in danger of running out of money earlier than the government projected just a few month ago. Highway, mass transit and airport projects are at risk because fuel and industry taxes are declining.

The national debt already exceeds $11 trillion. And bills just completed by the House would boost domestic agencies’ spending by 11 percent in 2010 and military spending by 4 percent.

For this report, the AP analyzed annual tax receipts dating back to the inception of the federal income tax in 1913. Tax receipts for the 2009 budget year were available through June. They were compared to the same period last year. The budget year runs from October to September, meaning there will be three more months of receipts this year.

Is there a way out of the financial mess?

A key factor is the economy’s health. The future of current programs — not to mention the new ones Obama is proposing — will depend largely on how fast the economy recovers from the recession, said William Gale, co-director of the Tax Policy Center.

“The numbers for 2009 are striking, head-snapping. But what really matters is what happens next,” said Gale, who previously taught economics at UCLA and was an adviser to President George H. W. Bush’s Council of Economic Advisers.

“If it’s just one year, then it’s a remarkable thing, but it’s totally manageable. If the economy doesn’t recover soon, it doesn’t matter what your social, economic and political agenda is. There’s not going to be any revenue to pay for it.”

A small part of the drop in tax receipts can be attributed to new tax credits for individuals and corporations enacted in February as part of the $787 billion economic stimulus package. The sheer magnitude of the tax decline, however, points to the deep recession that is reducing incomes, wiping out corporate profits and straining government programs.

Social Security tax receipts are down less than a percentage point from last year, but in May the government had been projecting a slight increase. At the time, the government’s best estimate was that Social Security would start to pay out more money than it receives in taxes in 2016, and that the fund would be depleted in 2037 unless changes are enacted.

Some experts think the sour economy has made those numbers outdated.

“You could easily move that number up three or four years, then you’re talking about 2013, and that’s not very far off,” said Kent Smetters, associate professor of insurance and risk management at the University of Pennsylvania.

The government’s projections included best- and worst-case scenarios. Under the worst, Social Security would start to pay out more money than it received in taxes in 2013, and the fund would be depleted in 2029.

The fund’s trustees are still confident the solvency dates are within the range of the worst-case scenario, said Jason Fichtner, the Social Security Administration‘s acting deputy commissioner.

“We’re not outside our boundaries yet,” Fichtner said. “As the recovery comes, we’ll see how that plays out.”

The recession’s toll on Social Security makes it even more urgent for Congress to address the fund’s long-term solvency, said Sen. Herb Kohl, D-Wis., chairman of the Senate Aging Committee.

“Over the past year, millions of older Americans have watched their retirement savings crumble, making the guaranteed income of Social Security more important than ever,” Kohl said.

President Barack Obama has said he wants to tackle Social Security next year, after he clears an already crowded agenda that includes overhauling health care, addressing climate change and imposing new regulations on financial companies.

Medicare tax receipts are also down less than a percentage point for the year, pretty close to government projections. Medicare started paying out more money than it received last year.

Meanwhile, the recession is taking a toll on fuel and industry excise taxes that pay for highway, mass transit and airport projects. Fuel taxes that support road construction and mass transit projects are on pace to fall for the second straight year. Receipts from taxes on jet fuel and airline tickets are also dropping, meaning Congress will have to borrow more money to fund airport projects and the Federal Aviation Administration.

Last week, Congress voted to spend $7 billion to replenish the highway fund, which would otherwise run out of money in August. Congress spent $8 billion to replenish the fund last year.

Rep. Richard Neal, D-Mass., chairman of the House subcommittee that oversees fuel taxes, is working on a package to make the fund more self-sufficient. The U.S. Chamber of Commerce, which doesn’t back many tax increases, supports increasing the federal gasoline tax, currently 18.4 cents per gallon.

Well DUH boys and girls!!  It doesnt take a rocket scientist to figure this out!!  you take away the jobs, (or allow them to go away) you lose tax revenue.  Someone get a frigging taser, we need to wake up our so-called elected officials and get them to play HARDBALL with those happy-go-lucky corporations who have been sliding thanks to dumbass loopholes they acquired by lobbying and campaign financing and other nefarious means.

I hope and pray there is at least ONE legislator out there who is paying attention.  At the end of the day, he/she may be the only one left standing….

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Why I love Karl Denninger…

•August 2, 2009 • Leave a Comment

Is the FDIC broke?

http://market-ticker.org/

First, we have Corus, which reported a negative Tier 1 Ratio.  That is, they are formally “in the hole” in terms of assets .vs. liabilities.  This is never supposed to happen – but it did, “Prompt Corrective Action” be damned.

Next, we have Guaranty Bank, which also has a negative core capital ratio.  They have been trying to sell themselves (gee, I wonder why?) for a while without success.  Here’s the relevant quote from their 8-K:

Based on these adjustments, the Bank’s core capital ratio stood at negative 5.78% as of March 31, 2009. The Bank’s total risk based capital ratio as of March 31, 2009 stood at negative 5.52%. Both of these ratios result in the Bank being considered critically under-capitalized under regulatory prompt corrective action standards.

Yet Prompt Corrective Action (PCA) – a law, by the way, not a suggestion – has once again not been followed.

Finally, we have Colonial. I made a nice chunk of coin shorting and PUTting that turkey last year, when their CEO (and a lot of other people) said they were “very conservative.”  Uh huh.  My read of their balance sheet said they were (like many other regional banks) massively over-exposed to condo construction loans in….. you guessed it…. Florida (which incidentally is what killed Corus.)  Oops.  But here’s the money quote on Colonial:

If the FDIC were to seize Colonial, it would be the sixth-largest seizure, by assets, in American history. Such a large failure could strain the bank safety net. Colonial has $20 billion in deposits, while the FDIC insurance fund has dropped below $15 billion. The FDIC wouldn’t have to cover every dime, but when Florida’s BankUnited, with $12.8 billion in assets, failed earlier this year, it cost regulators nearly $5 billion.

Add all three of these up and tell me what you think is going on?

These three are not small banks.  They are significant regional institutions, unlike the tiny little banks that we hear about every Friday after the close of business.

Here’s the nut to the story above: When BankUnited was seized note that the total loss on assets was some 40%.  They were not in the hole by anywhere near that much according to their so-called “accounting.”  Neither was IndyMac, but they also created an enormous loss.

So what’s going on here?

Simple: An enormous number of banks are holding loans at or close to “par” that really aren’t.  They’re holding mortgages at massively-inflated values, even on defaulted properties, and this is why you are not seeing more foreclosure sales – that is, why inventory is being held back.  If they sell it the accountants will force recognition of the loss, which will render them instantly insolvent, but so long as they “extend and pretend” they are marking these loans way, way above recovery value.  The upshot of this is that these firms’ balance sheet claims on asset values are massively inflated, regulators know it, and they’re intentionally ignoring it.

I have been sounding the alarm on this for more than a year; it has in fact been the focus of multiple petitions to Congress and the cause of thousands of dollars of personal expense faxing letters and Tickers to members warning them of the danger of letting this sort of accounting misdirection continue.

The claim of banking sector health and “successful rescue by Treasury and The Fed” is in fact false.  No such thing has occurred.  What’s going on here is nothing more or less than intentional false claims of asset “valuation”, which is repeatedly exposed when the FDIC is finally forced to seize institutions, exposing the lies.  Then, suddenly, 20, 30, even 40% losses on alleged “asset books” come out into the light and the taxpayer eats them.

The bank executives and accountants that played this game with the books should have been arrested and the bank thrown into receivership over a year ago.

Oh by the way, just as with all such “extend and pretend” games (otherwise known as fraud when practiced by anyone without a “government can cheat all it wants and nobody goes to jail” card) the longer you play this game, the longer you wait to do the right thing, the more money it costs you (in this case the Taxpayer gets the inevitable bill.)

For those of you who say that the FDIC is “not the responsible party”, that’s nonsense.  OTS/OCC are the agencies that perform primary regulation for any federally-chartered bank but the FDIC is the agency that is responsible for resolution, and they are always working together in this regard.

Yes, the FDIC has a “backup credit line” (a big one at that!) from Treasury, but the fact remains that about 75% of the FDIC’s “insurance fund” has been depleted over the last year due to massive and intentional failures to enforce Prompt Corrective Action, with the most-expensive and most-outrageous (thus far) being IndyMac, where OTS was found (by the government’s own auditors!) to be complicit in backdating deposits to “cook” capital ratios!

Riddle me this folks: What possible positive purpose can come from the FDIC refusing to seize these institutions when their capital ratios are either negative or clearly going to become negative?  These banks have all been train wrecks that I and others have written about for more than a year; Colonial was referenced in a Ticker on the 14th of July of 2008, with my first warning on them more than two years ago in April of 2007.

What do I think?

I believe the FDIC is broke and knows it; that under the law they should have seized these three banks (and many dozens more, including some really big ones) some time ago, but doing so will force them to tap the Treasury “emergency” credit line. They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!); as such they, along with OTS and OCC are conspiring to (once again) hide the truth and pray for an economic recovery before they are forced to act as the law demanded months or even years ago!

This is nothing more than an attempt to keep this graph from looking dramatically worse than it already does and keep the “green shoot” lie alive to pump the stock market so that Americans “feel better.” Big banking and other executives are taking advantage of this lie by selling shares into an overheated market (which they have been doing, by the way: Insider sales are at levels last seen just before the top in October of 2007!)

Hint to Sheila Bair, Tim Geithner, Dugan and Ben Bernanke: It won’t work and you’re going to precipitate a credit and stock market meltdown worse than last fall’s.  You may have already passed the point where you are unable to avoid that sort of damage, but if you don’t act now the outcome is virtually assured.

Do your damn job and do it now; we must stop the fraud and force the insolvent into the open – all of them – if we are to have a durable economic recovery!

Disclosure: No position in any of these turkeys; I called all of them but Guaranty, which I didn’t follow, zeros a long time ago.


Karl Denninger has always been on top of every fiscal crisis, I hope and pray this one can be mitigated before its too late…

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Pope calls for “global authority” for economy–conspiracy theorists may be right!

•July 12, 2009 • 4 Comments

This is pretty scary because it plays right into the theories you see on conspiracy websites…how the New World Order proponents are slowly but surely guiding this world toward a single overarching government, probably the UN, and now this from the Pope????   Im sure he’s hinting at the Catholic Church being appointed that “global authority” he’s calling for……perhaps those folks over at the conspiracy sites are right???

Pope calls for a “global authority” on economy

Tue Jul 7, 2009 3:25pm EDT

By Philip Pullella

VATICAN CITY (Reuters) – Pope Benedict called on Tuesday for a “world political authority” to manage the global economy and for more government regulation of national economies to pull the world out of the current crisis and avoid a repeat.

The pope made his call for a re-think of the way the world economy was run in a new encyclical which touched on a number of social issues but whose main connecting thread was how the current crisis has affected both rich and poor nations.

Parts of the encyclical, titled “Charity in Truth,” seemed bound to upset free marketers because of its underlying rejection of unbridled capitalism and unregulated market forces, which he said had led to “thoroughly destructive” abuse of the system and “grave deviations and failures.”

An encyclical is the highest form of papal writing and gives the clearest indication to the world’s 1.1 billion Catholics — and to non-Catholics — of what the pope and the Vatican think about specific social and moral issues.

The pope said every economic decision had a moral consequence and called for “forms of redistribution” of wealth overseen by governments to help those most affected by crises.

Benedict said “there is an urgent need of a true world political authority” whose task would be “to manage the global economy; to revive economies hit by the crisis; to avoid any deterioration of the present crisis and the greater imbalances that would result.”

Such an authority would have to be “regulated by law” and “would need to be universally recognized and to be vested with the effective power to ensure security for all, regard for justice, and respect for rights.”

“Obviously it would have to have the authority to ensure compliance with its decisions from all parties, and also with the coordinated measures adopted in various international forums,” he said.

The United Nations, economic institutions and international finance all had to be reformed “even in the midst of a global recession,” he said in the encyclical, a booklet of 141 pages.

The pope’s call for a supranational body to tackle global economic woes disturbed some Catholic capitalists.

“There is a difference between coordination and mandate … a reckless loan in the United States can and did impoverish people in Latvia. So obviously coordination is important as long as it is not mandates,” said Frank Keating, CEO of the American Council of Life Insurers and former Governor of Oklahoma.

LOFTY MESSAGE

The encyclical was addressed to all Catholics and “all people of good will” and was released on the eve of the start of the G8 summit in Italy and three days before the pope is due to discuss the global downturn with U.S. President Barack Obama.

In several sections of the encyclical, Benedict made it clear he had great reservations about a totally free market.

“The conviction that the economy must be autonomous, that it must be shielded from ‘influences’ of a moral character, has led man to abuse the economic process in a thoroughly destructive way,” he said.

“In the long term, these convictions have led to economic, social and political systems that trample upon personal and social freedom and are therefore unable to deliver the justice that they promise,” he added.

Profit was useful only if it served as a means to a brighter future for all humanity.

“Once profit becomes the exclusive goal, if it is produced by improper means and without the common good as its ultimate end, it risks destroying wealth and creating poverty,” he said.

He said the current economic crisis was “clear proof” of “pernicious effects of sin” in the economy.

“Financiers must rediscover the genuinely ethical foundation of their activity …,” he said.

German Chancellor Angela Merkel, who had rebuked the pope earlier this year at the height of the row over a Holocaust-denying bishop, welcomed the encyclical as important encouragement for world leaders ahead of a G8 meeting in Italy.

“Pope Benedict has encouraged the state leaders to create rules so that this sort of worldwide economic crisis isn’t repeated,” Merkel told reporters. “I also saw this as an order to work toward a social market economy in the world.”

The pope appeared to back government intervention “in correcting errors and malfunctions” in the economy, saying “one could foresee an increase in the new forms of political participation, nationally and internationally.”

(Additional reporting by Daniel Bases in New York and Sabine Siebold in Berlin; Editing by Matthew Jones)

When I went to my favorite conspiracy theory site (Above Top Secret) I fully expected to see outrage and verbal spewage on this topic, but I found nary an article.  I must admit, I was very surprised, this is right up their alley, and they said nada…..

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Infomercial King Billy Mays dead at 50 :(

•June 28, 2009 • Leave a Comment

I saw the news right after I got done watching Pitchmen. This felt like a kick to the gut for me….I found this great prank video with Billy as a recent hire at an office. I love this because it shows Billy’s prankster side, which I can relate to…..RIP Billy….

Vodpod videos no longer available.

Requiem

•June 26, 2009 • 2 Comments

Yesterday was a strange day, bracketed by deaths (one in the morning and one in the late afternoon) of two iconic celebrities, Farrah Fawcett and Michael Jackson.

Farrah Fawcett almost single handedly defined the ultimate in feminine beauty in the 70’s with her famous feathered hair and her golden girl beauty.  Her famous poster could be found in just about every teenage boy’s room during the latter part of the 70’s (and into the 80’s as well!) and it adorned the walls of many a girl’s room as well:

farrahfawcettposter

Her life was a strange roller coaster of highs and lows….but there was one constant in her life, and that was Ryan O’Neal.  I am sure that poor man is just devastated right now, to lose Farrah knowing they were so close to realizing their dream of marrying.  I cant even begin to imagine the sense of loss he must be feeling right now….

When I did a search for Farrah pictures, one thing stood out immediately:  her SMILE.  Its usually always there, even when her health started declining, she put on the brave face, and smiled that beautiful smile.

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And then the death of Michael Jackson in the afternoon…first the reports of the cardiac arrest, the revival, and then BOOM, just that suddenly, he’s gone.  Even though I had mixed feelings about him on the whole (loved his musical genius, loved his dancing talent, hated the whiff of pedophilia, hated the nose jobs and the eccentricities, and loathed the way he muscled Debbie Rowe out of any rights to their children) I was just as stunned as the next person…certain folks seem to be a part of the cultural landscape, always there, dependable (even in their oddness) and well, sort of comforting.  For him to suddenly be gone made me realize that his passing left a hole in the cultural fabric, the way the deaths of Elvis Pressley and John Lennon (and Janis Joplin and Jimi Hendrix) did…..he was unique, a (tortured) genius whose musical contributions  became a sort of demarcation point for the current evolution in music.

I know there are some who will remember the notorious Michael Jackson, “wacko Jacko”, but Im hoping that folks will instead choose to see the good he did, the innovations he trailblazed, and focus on his positive cultural legacy.

Farrah, Michael, Rest in Peace.

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Best all-time guitar solos…(IMO)

•June 24, 2009 • Leave a Comment

Ive posted here before regarding best BASS riffs, and I thot I’d give equal time to the best Guitar Solos.  Thus, In no particular order, my choices for primo guitar solos:

Maggot Brain, by Funkadelic  (truly AWESOME)

Do You Feel Like We Do by Peter Frampton

Free Bird by Lynyrd Skynyrd

In A Gadda Da Vida by Iron Butterfly

Bridge of Sighs by Robin Trower

Stairway to Heaven by Led Zepplin

All along the Watchtower by Jimmy Hendrix

Tin Pan Alley by Stevie Ray Vaughan

Voodoo Child by Jimmy Hendrix

Brother can you spare me a dime (on the Boz Scaggs Box set, guitarist  Duane Allman did a turn as a studio musician!)

Couldnt stand the Weather by Stevie Ray Vaughan

Im So Afraid by Lindsey Buckingham

Cliffs of Dover by Eric Johnson

Town without pity by  Joe Satriani

Samba Pa Ti by Carlos Santana

Sultans of Swing by Mark Knopfler

Stranglehold by Ted Nugent

Im sure I’ll think of more later…

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ARRRGH! Damn Bankers!!

•June 12, 2009 • 8 Comments

I am so pissed!  For many years now, banks have been slowly trying to eliminate paper transactions.  Theyve tried not to return my checks with my statements, they process my payments electronically and wont return my checks (and my bank doesnt even get a picture of them) and, according to a manager at my local bank, there’s nothing I can do because the Government supposedly mandates this policy!  My bank manager talked about something called “Check 21” and said that there was nothing I could do…I looked it up and found this LINK .  Personally, I think it stinks.  My checks are my receipts.  How else do I prove my payments?  Im not keen on having to copy whole statements just to prove one payment.

I found a LINK by the Consumers Union which at one time had another link for consumers to take action against Check 21, but it expired.  Dang.  Im not going to let this go however, Im going to see to it that I either get my checks or a substitute (as recommended by Consumers Union) as proof of payment.

Check 21 is just one more way the Bankers make things easy for themselves but not necessarily the consumer.  For example, Check 21 allows banks to process payments electronically, so folks would be well advised to not write checks for funds they dont have in the bank.  WATCH OUT though, the Banks may be processing PAYMENTS faster but they are not under the same obligation to process DEPOSITS faster.  Thats right.  You may put your money in the bank on Wednesday, and think its safe to write a check on Friday, but you may get a nasty surprise.  Consumers Union predicts that the amount of fees and penalties from insufficient funds charges will go up drastically as this method becomes widespread.  Already it is estimated 70% of merchants have the ability to instantly process your payment/debit your account via the electronic payment processing method.

Maybe I’ll go to money orders or get cashiers checks from the bank.  Maybe I’ll go to electronic bill pay (I highly doubt THAT!).  I think in the meantime, I will demand substitute check copies, and if the bank charges too much I’ll switch. Damn bankers anyway.

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Goodbye to Analog TV

•June 12, 2009 • 2 Comments

I dont know why but this event bothers me.  I just cant get onboard and be thrilled about this changeover from analog broadcasting to digital broadcasting of TV signal.  When I visit the *gasp* conspiracy sites, I see articles about Government infiltration/spying capabilities that this changeover would represent, and my suspicious side flares up.  I also have this fear that we could have a technology meltdown which would leave us all without any means to gather info in case of an emergency, similar to cyber terrorism.  I dunno, my feelings on it arent even particularly defined, its just a general unease.  nuffsaidbutton4

The demise of Capitalism?

•June 2, 2009 • 1 Comment

Everywhere we look lately, the news is full of articles about this corporation (or that State!) coming under economic hard times.  The Federal Government bailed out the greedy banking industry to the tune of OVER $780 BILLION dollars, Chrysler has filed for bankruptcy (and now doesnt own itself any more), The state of California is in a major fiscal free fall, and mom and pop businesses everywhere are struggling just to break even.

Ive watched the antics of big business now for over 30 years (not counting my high school years when I wasnt paying attention LOL!) and Ive seen them get all the breaks, primarily from the Republican party, at the expense of the basic needs of the average Joe on the street.  Its sickening really.  And does Big Business return the favor?  Does it offer Joe Schmoe a job so he can pay his bills or feed his family?  Thats a big fat NO boys and girls.  Big business cares not a whit about the little guy whose blood sweat and tears made them successful.  No sir.  Big Business completely abandons Joe Schmoe by setting up operations in another country altogether!  China, India, any third world country will do, as long as they can keep padding their profit margin.

It isnt confined to manufacturing either.  Agribusiness giants have plowed under the mom and pop farms the same way.  The tactics vary from overwhelming the small farmer with competing crops to glutting the market to suing farmers whose fields lie adjacent to theirs and whose crops may have been cross-fertilized by GMO (genetically modified organism) seeds!  Court decisions have come down forcing those unlucky farmers to destroy their crops merely because their crops may have been cross pollinated from GMO crops–all in the name of patent protection!!

Credit card companies got a huge assist from the corrupt administration of G.W. Bush (in my opinion, the single worst President this country has ever ever ever been saddled with) almost immediately lobbying the Republican Congress for draconian penalties to be visited upon consumers who are struggling financially.  Nevermind that these same credit companies dangled juicy credit offers under the noses of these consumers, they completely abdicate their own complicity and asked for AND GOT the green light to begin a vicious cycle of penalties assessment, accelerated billing cycles, increased interest rates, and to top it all off, the ability to ruin a prospective employee’s chance for employment (new hires’ credit history could also be considered as a condition of employment).

The mortgage lending industry is especially corrupt, offering unrealistic loans while disregarding the very real issue of the borrower’s ability to repay!  These slimy jerks knew exactly what they were doing, with their adjustable rate mortgages, balloon payments, interest only loans etc.  The fine print was somehow overlooked or unexplained and the hopeful homeowner had no real idea what they were in for.  Worse, the downsizing and outsourcing of the business environment virtually guaranteed that people wouldnt make their house payments because oops, your job just went overseas, sorry!

Big Business seems to be given every tax break, every loophole, every possible allowance at the expense of the little guy.  They take their industries offshore and remove the ability of the working man to pay his bills.  They ask for and receive permission to penalize the little guy for not paying his bills, and bankruptcies and foreclosures are the news of the day.   Yet when they are left with their so-called “toxic” assets, they go crying to that same corrupt administration who actually assisted them in creating their own armegeddon and have the GALL to ask for a government bailout!!  What happens to the little guy when his job goes away and his bills are snowballing?  Can he seek the same relief???  NO!!  Not only that, but the government, in its shortsightedness, and its rush to balance its books, sees fit to cut the safety net programs that would help families hang on!

Why not penalize the true culprits?  Penalize Big Business and the Credit and the Mortgage lending, and the Insurance companies (auto, health, life, home), etc.  Tax them according to their profits, with no loopholes.  Penalize them if they choose to set up shop in another country.  Tax their goods if they choose to sell back in this country.  Repeal every single concession given to credit card giants at the start of the GW Bush administration.  Create oversight bodies to strictly enforce transparent accounting.  Force insurance companies to pay their claims.  No more fine print that allows them to keep monies paid in good faith for insurance coverage that is disallowed through exclusions.   In short, bring back honest dealing.  The kind that fosters trust.  Capitalism was meant to be market driven, not greed driven.  What Big Business seems to have forgotten is that  a market needs a consumer as well as a producer.  Tampering with the market  by removing the ability to put capital back in (either through job loss or financially hampering the consumer) will, in my opinion, ultimately sound the death knell of the capitalistic system. Who knows?  Maybe thats a good thing.

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