The Calculated Risk ...
-
Artist:
-
Album:
-
Track:
700 billion. Defense is the only thing this country will spend more money on in 2008 and that's by a measly 28 billion.
Today's news from Washington should be an eye opening experience for many of us.
This is what Bernanke said today:
In the case of Lehman Brothers, a major investment bank, the Federal Reserve and the Treasury declined to commit public funds to support the institution. The failure of Lehman posed risks. But the troubles at Lehman had been well known for some time, and investors clearly recognized--as evidenced, for example, by the high cost of insuring Lehman's debt in the market for credit default swaps--that the failure of the firm was a significant possibility. Thus, we judged that investors and counter parties had had time to take precautionary measures.
It's easy to find the stock quote for Lehman Bros. If you look 10 years back LEH had some troubled times prior to hitting a high last year.
What bothers me is the call for immunity from court investigations or judicial review.
My question is why.
Giving the Treasury such power is unheard of. At the same time it is stealing some of the power away from the Federal Reserve.
Right now Paulson is in danger of become the most powerful man on the planet. Is he up to the job?
My guess is the Treasury wants to cut out the time spent in litigation. That and other things. I predict we will see more very large corporations and more monopoly suits in our future. 'Free Market' is going to get worse before it gets better.
Come to think of it, with bills like the one Paulson/Bernanke are proposing our country is becoming more Socialist. The effect is far worse than any 'Universal Health Care' bill.
Please wake up. As citizens of the United States we don't even have limited control over our government. Paulson/Bernanke are appointees. We didn't vote for them. Most likely they got the jobs on a word and a hand shake.
Regardless, this is on their watch. LEH was trading at $18.13 in Feb. of 2000. LEH's high was $82.24 January of last year. Today its at $0. In fact it isn't trading at all. I know somebody got out in the nick of time.
I mad as hell that our lawmakers would even think this is okay.
Thank god for an issue Pubs and Crats could agree on. I just hope those on both sides of the aisle stick to their guns.
Call your Congressman or Senator and tell them you don't like this idea. Please exercise the power you have left.
If your interested this is what I came across:
http://www.npr.org/templates/story/story.php?storyId=94929047&;ft=1&f=3
http://www.usgovernmentspending.com/
http://calculatedrisk.blogspot.com/2008/09/bernankes-senate-testimony.html
I got the title of the post from that one.
http://www.federalreserve.gov/newsevents/testimony/bernanke20080923a1.htm
And for you graphic folks.
http://moneycentral.msn.com/investor/charts/chartdl.aspx?3=0&;ComparisonsForm=1&D4=1&ViewType=0&D5=0&ShowChtBt=Refresh+Chart&DateRangeForm=1&CE=0&Symbol=LEH&C9=0&DisplayForm=1&CP=0&PT=3
The Slits - Ping Pong Affair (1979)
Tune:
Lyrics:
I knew you were sitting in your room all alone
I knew I was the only girl for you
You have told me so
But somehow it slipped my mind
Whilst walking home
Whilst you were sulking I could have been raped
In Ladbroke Grove
Well you can take your records back
And take your comics too
I'm going to have some fun tonight
Life with or without you
So I spend an evening
Without getting my face cut
And another evening
Without getting run over
Again another evening without falling in love
So I listen to the radio
Smoke a cigarette
Same old thing, yeah I know
Everybody does it
Six months
Have passed, now try become between us
I never missed you, only sometimes
Dreaming on a bus
There is absolutley no doubt in my mind
That you and I have grown apart
For the first time
Seeing you with other girls
Sometimes bothers me
But I don't want to play those games
They're just not interesting
So I spend an evening
Without getting my face cut
And another evening
Without getting run over
Again another evening without falling in love
So I listen to the radio
Smoke a cigarette
Same old thing, yeah I know
Everybody does it
Since yesterday, like I heard your voice behind me
I froze on the spot, did not turn around
In case you'd find me
I think you lied or you can't tell
Tell the truth
You didn't want me, you wanted someone else
Who'd give you proof
But I can't trust the feelings rushing through my head
I'd wait for you to call me nights
And come to me instead
So I spend an evening
Without getting my face cut
And another evening
Without getting run over
Again another evening without falling in love
So listen to the radio
Smoke a cigeratte
Same old thing, yeah you know
Eveybody does it
Comments (20)
it is a truly stunning amount of money.
The past 10-15 years have been, I think, a bit of a repeat of the late 19th century's economic robber baron/gilded age era, with loosened regulatory controls helping fuel spectacular economic growth and wealth. Back then it was fueled by that communication device the telegraph and the train, now it was the internet and globalization. Then, as now, the solution was for the government to step in to stop the collapse.
Not sure how any elected representative can be against capping the payout to Wall Street execs, but that's what I heard on the radio today. What's up with that?
I agree Chris, but not these terms.
Give me more than a week and accept a watchdog.
This is a difficult issue for most to wrap their minds around. We've been used and abused once again. There's no easy exit.
All scary.
Will an extra week break (what's left of) the bank?
Incredible how fast this is all unfolding. or unraveling
The exits are all locked, everybody grab a fire extinguisher...
Though the timing, high political season, is not good, this crisis is actually starting a conversation on the economy. Which, for better or worse, is a good thing.
To say that the Treasury Secretary was less than articulate during the hearing in Congress yesterday would be a major understatement. He definitely did nothing to sell the administration's plan in Congress's eyes or mine.
I've no idea myself how to fix this problem, but I sure don't need another condescending pol patting me on the head and saying, "Don't you fret, little one. Here' have a cookie, let the big people fix this."
I think it's time for both parties to start working together for the good of our country. This is why Minnesotans voted for run off voting!
Isn't Bernake only the temporary apointee until congress agrees on a permanent Head of the Fed? That's an even scarier thought. That's like a sub derailing graduation for an entire class when the teachers sick.
Here's an interesting take on money from Douglas Rushkoff over at Boing Boing:
http://www.boingboing.net/2008/09/23/what-went-wrong.html
Makes you think that stuff hasn't really changed in 400+ years.
There is also an "Open Source Democracy" movement, which you might want to look into. It's an interesting propostion.
Let's see, they want $70 billion...at 300 million head count, that's about $2,500 from each and every citizen, throw at least half of those out for underage/overage/underachievers and that leaves my bill at 5 g's. For that I get the curtains closed on the great Oz so I don't have to watch whatever revolting acts are performed to keep "the American dream" alive...worth it??
1/2 is being generous. Lets not forget Boomers are the biggest slice of the population - and their all retiring!
I'll say it - thank god for imigrants, the only people paying into the system without expecting returns. FUBAR, definite FUBAR.
FUBAR SNAFU even.
You mentioned the Open source Demo. before didn't you Tyler?
Chances of Bernanke staying are looking up. Regardless of the Pres. winner in Nov.
Scott, you left off a zero..but the 2,500 per is correct! Why doesn't the Fed just become a bank and make whatever credit advances the banks won't make..might be a lot of work, but it might cost less.
See Cody, I tried one of the republican financing techniques and you caught me red-handed.
What?? With a paper trail of accountability?? Are you crazy man???Under your administration, who will you appoint as Treasury chief??
My first choice is Bloomberg,my second is Chris (I am), when he gets finished with his naval duties, my third is the first pimp I run into (rock n roll or otherwise).
Oh man, I hope Mike B. is busy for the next 4 years. I would love to print me some money.
Oh God Chris I just saw the "presidential address" We are going to get screwed into paying into this BULLSHIT! What the hell is going on!
I got 2 words.
Buy Gold!
That's just it, all those who can't afford to buy anything are left out in the cold to starve again while another wave of private investors swoop in like the predators they are to suck it all up and leave us standing at the table with the bill! Why can't we be more like Finland?
Truth is G, we will be in due time.
We are soon to have 2 bills to pay.
One is this buyout. The other will be Social Security for the 50+ crowd.
By conservative estimates our kids are looking to foot the bill on more than 2 Trillion.
Buy gold and leave it for your children.
Right now I think your in a good spot. Your skills in the housing market are going to be bankable when sellers are looking to beat out the next guy.
What adds value to a home? You know it, WORK. That's where you come in.
You know what I think. I think were screwed to the wall with all this bailout and government take over. My question is this... what's next?