Wall Street, DC

For the past coupla a few years I have been writing and thinking a lot about money and economics. Before then I used to always write about foreign policy, I don’t know why, for my professional expertise, or any of my Undergraduate, master of doctorate degrees are in the area of either foreign policy or economics. Moreover, nor am I a conspiracy theorist. I guess you can say I just like puzzles and problem solving and more importantly freely thinking for myself.

I have been consistent and even accurate in my analysis and evaluation with respect to the US government and the so-called representation of an economy it fosters. I have also been consistent in pointing out that there is no difference really between the political beasts we call Washington, DC and the financial varmints we label Wall Street. And for me there is no better example than the Crooks who operate at the top levels of Goldman Sachs. The way I have figured since the 1960, the folks who run and formulate Washington’s economic policy are the same folk who make fist full of loot for their own personal interest. Starting with the chief Thief in charge – Robert Rubin. Now Rubin was forced to resign from CitiGroup as its Chairman earlier this year for his messed performance. It was profitable for him seeing he left with more than 100 million in his pocket. However, he got his start with Goldman Sachs in the mid 1960s where he eventually became co-chairman in 1990. He was only around for a few years for afterwards he became Assistant to the President for economic policy and eventually US Treasury secretary in 1995.

Then there was Stephen Friedman who served as Chairman from 90 to 94 and as the director from 2005 to date. However in between he was the Chairman of the New York Federal Reserve from 2008-2009. Also there is Adam Storch (VP from 2004-2009 for GS) who now serves as the managing executive of the Security and exchange – as if we expect folks to police themselves. Henry Paulson was Chairman CEO of Goldman Sachs until he resigned to become US Treasury secretary in 2006 until 2009.

It also works the other way around. Michael Paese was deputy staff director on the House Financial services committee from 2007-2008 before becoming Director for Government Affairs for GS which he serves as today. Robert Zoellick was US trade representative from 2001-2005 as well as deputy secretary of state from 2005-06 before putting in work as a managing director at GS from 2006-2007.

This is just an example for I can say the same about Citigroup and others. In fact Geithner was VERY close to executives of Citigroup, ( Robert E. Rubin). Now all I am saying is that it is difficult for me to see how folks who created this problem while working both on Wall Street and In the Halls of Washington Politics can solve the problem. Moreover, I think it really show what the problem is. One of importance is revealed incessant incompetence. If most of us messed up dollars on our jobs at scales way less than what Rubin did at Citigroup – we would be fir4d and likely not be employed again. But not these folks. They are head of the game. And we Americans don’t get it, nor does Obama or any of them other politicians regardless of political affiliation. I don’t know about yawl, but I don’t trust nor love them Wall Street, DC hoes. I mean I do not see a difference between the two: Wall Street or DC, do or can you?

public jones

Point of order: cant wait to chris cox bich azz out of the SEC

Dear Mr. Paulson and Mr. Bernake:

It is both with great pain and pleasure I pen this letter to you. I am extremely disappointed in the manner in which you have brazenly attempted to deal with the economic consternation that confronts us all. It is not as if you two are ill-informed over the subject matter that you attend to on a daily basis, on the contrary, you both are learned men of letters in the disciplines of both finance and economics. With that said, I must advance the premise that your intellectual prowess with respect to problem solving is severely lacking.

As laymen, I have come to the conclusion that all of this is the result of marketing and selling materials/papers that have no value, or if it does, it maintains a negative value – debt. The support you have purported towards the collateralization of debt, mainly as accrued in the financial services section is what seems to be the root of this recessive evil folks such as I are confronted with. In addition, it appears that your math does not take into consideration that this could be obviated when home devaluation stops. Which could be instantly dealt with if the money was given to home owners and mandated fixed rated advocated across the board for all mortgage compaines, holding companies and banks would adopt or be forced to close their door. It says in the constitution we the people and not we the corporation.

Instead, your approach has been abstruse – difficult to understand. First you basically block the short paper exchanges, which from my limited understanding of economics, is how most money markets function, not to mention if you would have injected capital into Lehman Brothers, which you did not, the DOW would still be in double figures. It is bazaar that you said you had no authority to save this financial behemoth, yet when your folk from Bear Stearns and AIG called – you were quick to stick out your necks and my loot without hesitation.

Moreover, your approach never includes a serious evaluation of dealing with fractional banking systems as we have in America, or else you would consider a reduction in the reserve requirements for banks. This may or may not free up credit but it would be an approach that would not require any of my loot. But still, it is housing valuation that is the concern via the mortgage backed securities you seem to so dearly love. Not to mention from my purview, the issue is not going to be solved by massive injections into banks (for which you have no way to tell where the money has been spent) from my louction, but morso with respect to conforming loans. Yet I recant again, I am not an economist.

The aforementioned are intellectual deficiencies that I can understand. What I cannot tolerate is the disdain for the general public for you speak to me as if I am rich and I have money and you don’t. I wonder if you really ever had to struggle a day in your life, or live with friends, or even ever loss a job. In your tone there is no empathy nor compassion for what the average person experiences and lives.

So sirs, I recant, I am very disappointed and even offended by the lack of professionalism, and understanding you evince with respect to economics, the understanding of the problem, problem solving skills and lack of comprehension towards the general public. For slaves would have been lynched for lessor offenses. Yet I bid you a good day.

Respectfully,

Public Jones


Addendum: shouts to Lovebabz for giving me the Uber Amazing Blog Award and Ivory for the post she did on her daughter and mine.

Bich do your job

The bottle of Partida blanco is empty and no more hot sauce, but the effervescence remains. Been thinking lately (not like that is nothing new), and I really would like to know where is the Attorney General and where that mutha fuca been for the last 8 months to start? I would not be surprised if a lot of folk don’t know who the current Attorney General is or even what Department of the government they work out of.

The Judiciary Act of 1789 created the Office of the Attorney General. They are supposed to be the chief law enforcement officer of the Federal Government. Michael Mukasey is the acting US Attorney since 2007 I think. But I have yet to hear his named mentioned at all this year. That is strange to me given the massive amounts of fraud and manipulation that has reared its head in this age of collateralizing debt and massive financial fraud. Yep I said it fraud,

A lot, not all, but a significant segment of what had happened to our financial services sector has been the result of negligence, incompetence and greed – and for lack of a better phrase – criminal behavior. From the very bottom of accepting mortgages with no money down to the manner in which securities and commodities have been traded in unregulated and a seemingly black market fashion, there is enough criminal behavior to go around. Even Henry Paulson, who said we would use the bail out loot for capital injection to supposedly buying troubled and toxic assets (which now he is doing neither) borders on criminal behavior to me.

I think instead of making a fat salary, Mr. Mukasey needs to re-read the constitution and start seeking out all these crooks from Wall Street to the Capital Hill, and start prosecuting folks. He can start if he scared, with the hedge fund industry and work his way left and right. The hedge fund industry is estimated to control about $US2.5 trillion of assets, most which are beyond regulatory supervision. This is one sector of the financial sector that can be blamed for volatility in stock markets as well as destabilizing our banking sector. The main or one what they have done such is by the short selling of stocks of companies that has resulted in reducing the values and even bankrupting said companies.

George Soros, who testified before the House Oversight and Government Reform Committee last week suggested that hedge funds will be hit hard and maybe even destroyed by the global financial crisis to such an extent that possibly 75 percent of the money they manage may be lost.

I know some of the folks in Fannie Mae, Freddie Mac, UBS and Bear Stearns have some foul folks doing some foul things, and I would suggest that the AG start to investigate, if not, I hope the President Elect will hold the folks responsible and send these folks to jail, so what the contributed to your campaign, fair is fair and such will go a long way to restoring confidence in the market and responsible financial behavior in such institutions. So as me and my folk sang in 1996, Bich do yo’ job.

Pay check away from a pink slip

If you dint know, my store for dogs is about three minutes from the Martin Luther King Jr. birth home, and 3 blocks from his grave and the eternal flame that lights his heart and passion. The day after Obama won, I walked around there and just stared, just a few moments. It was like his crypt was talking to me. Nope I aint crazy, but it felt that way. I was reassured and went back to my shop.

I guess yawl know how much King means to me. He was one of many that informed me of the importance of intellect and thinking for yourself and not accepting what people tell you and/or following blindly. I went to the tomb to respect my elder. It made me feel good, and reinforced that I still was challenged to the task such elders engendered in me.

I have said that I did not Vote for Obama or any of them other same ole lame okie dokes. My logic which many of you said was foolish, and self righteous, was neither to me. As I pointed out I voted for not the man, nor the party, but the policy. And if I must accept blame for seeing no difference in word on paper between the two – then so be it. Likewise, If I decided to study in an applied manner what they say they will do in concert with the problem that needs to be addressed, with the economy for example, and it is my conclusion such is far fetched, I will say such.

I particular felt this way about several things. Both he and McCain said the basic: I will lower taxes, I will reduce the deficit, and I will grow the economy. I want jones to be a success, but I will not reduce my penchant to evaluate his suggestions just as rigorously as I did the recent candidates, or past presidents regardless of party affiliation, nor will I give him a past. Unlike many I don’t see jones as the first black president, I see him as a president, who happens to be black.

Now some may say I need to get a life, for over the past day I have mulled over his economic position papers as well as his speeches on the economy and his latest transcript from his first press conference as the President elect. But it is my life to make certain I am in a stable milieu in which my kids and I can prosper economically.

I still feel that my note selecting either he nor McCain was based on logic. Re-reading I feel vindicated. What Obama has said and has [proposed on paper is just as bad as what Paulson and Bernake suggested with the bailout which he and McCain supported. All he proposes, either the break for 85% of Americans or raising taxes on the rich wont work and is just a tweak on a system that will not have any long term effect on a problem that has been building via debt collaterilization since the 1980s. The system needs to be gutted, not tweaked for our economy is riddled with structural problems – namely that we have a closed economy in a global world. This means he wont be able to raise taxes on the rich or cut taxes for poor folks like me.

Couple this with the fact that the bailout has had the opposite impact that Paulson has desired, the deficit is at about another trillion dollars and we still do not know how the money is being spent with respect to the Troubled Asset Relief Program (TARP), Obama as we have – are sitting on a ticking time bomb. None of his solutions even include the aforementioned.

In two days since his historic victory, the Dow dropped as much as it did in September 1987 although 200 plus points were gained on Friday. For me it is a policy as opposed to an individual issue. He needs to address the volatility (which is a sign of investor confidence (so folk like me put loot back in the market), the housing crisis (which is getting worse) and stabilizing consumption (creating jobs, cause black folks are the only ones spending in a depression for we don’t know how to save anymore). As well as the structural concerns I have sited previously. For if he attempts to raise taxes on the rich – I just have two words - Sarbanes-Oxley, which means folks will move over seas to start new businesses than stay home in the states. Then he has not even addressed or considered revamping value-asset accounting principles nor obviating the Commodity Futures Modernization Act – which are two things that got us in this mess. Let alone accept the premise that folk like me don’t believe we should give banks money to buy other banks – especially when you talk about main street.

True he does mention job creation, but all I have read is the mantra of “new Green Jobs” without any relationship to reformulating the economic conundrum we are in and confronting currently. True, I am no economist, but I read and I try to use reason, but there is a lot more needed. It kills me when I read and hear folks say “freedom”, or “we aint got 40 acres and a mule but we got Obama”, or “Abolition” to describe his historic win, but go out and party and don’t feel as if they have a roll in this, and can see he is just one man, makes me feel that many think things have changed, without asking has America changed? I say no. It will be on us all for there is no such thing as magic. Something must be said with reason over feeling and emotion because although he won, most folks a pay check away from a pink slip.

Jones mane u the real socialist

I keep reading the suggestion that some folks, in particularly when they wanna spread the wealth are socialist. For the record, taxes would be socialism, for they spread the wealth – but im thanking and don’t want to for as any yawl who read jones here on the regular, I write what comes out my brain as most idiot savants do. Socialism from my modicum of reading on the subject is an economic doctrine that calls for public as opposed to private ownership or control of property and natural resources. These mutha fucas say that folk in general live in cooperation and as such, don’t require no LLC. Moreover, all folk who contribute to the production of a got a right to share in all attributes and share in such. What am I saying, well in essence that the control property for the benefit of all mutha fucas.

Now where did I gather this adumbrated view of socialism? Well strangely, I guess the first jones was Nietzsche, who commented on the inhumanity of Aquinas' view suggesting that the privileged will not have pity on the damned. Thomas Aquinas (fuc boy azz ni double G a) asserted that compassion only comes about when folk desire or want the suffering of others to stop, I mean I suggest that is what he meant when he wrote/said "The blessed in the kingdom of heaven will see the punishments of the damned, in order that their bliss be more delightful for them". Now true, I done read most of all the shit Marx done wrote, but I concluded he was a reverse socialist – meaning he just wanted to get paid on his views of capitalism. Now I am writing this because the impetus was via a comment left by the scholar supreme and Mr. well-read himself – Kelso, to one of the post over the last few weeks in which he astutely outlined why Obama was not a socialist. Made me think, well you know if folks would complain about the house and senate bail out bills without reading them, so too would they be likely not to have a general, if any understanding of socialism as opposed to what Sara Palin would tell you. LMBAO.

I just wanna say the only creeping socialism is proffered by Paulson and Bernake and McCain and all the bich azz folk who see Wall street as their idol. Yep, even Bush, Paulson Bich azz couldn’t even tell the folk on Capital Hill how much a dollar figure would be needed for another stimulus plan, but he could jump from make believe to 700 billion for his folk.And why, cause we regular people aint his folk.

He don’t cut his grass, or change his oil, believe that.Obama aint no socialist and it shows me more than ever that McCain isn’t well read and got PTSD - Bush, and yawl folk who got the dicks of Wall street and big business in your mouth, Jones mane u the real socialist. Using federal loot to buy banks, and bank stock – not to mention..., well let me stop, will talk about fed rserve bank later.

The Baroque period

Point of Order: 1] Wanna thank Dusty for reposting my essay: deposits and despots & my post next stop - martial law, also Shine girl for putting hher reading one of my books on her blog & Chicklit girl for the review she did on me.

2] PC charger dead so will chk my blog roll when i get another. Until then?

Now I know it is about two weeks left before the general election and that folk all geeked up about this. As well as all stoked on Obama. Now I’m trying to pay attention, but I cannot really because all of my attention is still focused on my loot and getting my small business off the ground.

To me, it is all just a form of trickery and deceit, or as they say in football, a misdirection. I cannot believe the hype, especially in projections and pools related to voting penchant or the electoral map when I don’t collect the data or can read about the statistical methodology. So for me such is neither here nor there, for it would not surprise if he (Obama) won or loss; for no matter whom wins - the next ten years, if no more, will be reflective of a dead economy regardless.

In Georgia for example, there is a jobless rate of 6.5%, which lets me know that for every five folks looking for full-time employment, there is only one available job. Not to mention what we have seen over the past few weeks regarding the vertiginous ups and downs of the US Stock market and the ad hoc manner in which the Feds pick and select who to and who not to help, its no wonder the financial sector has been devastated. I still say Paulson is a fuc boy. He rejected the suggestion of Martin Feldstein for the Feds to offer low-interest loans to replace 20% of mortgages for any US home-owners.

Used to be Baroque referred to music, and ironically music created during the period in which the French Revolution was in (some aspects). The music of the Baroque period was extremely complicated and the word was taken from the architecture of the period and means highly decorated. It was composed between the time of 1600 to 1750 and included greats like Frescobaldi, Corelli, Vivaldi, Bach and Handel. Nowadays, we again have entered the Baroque period (Ba-roke), cause mutha fucas is broke mane. Who would have ever thought that Chrysler and General Motors would ever link up? Or that IHOP would be selling all the pancakes you can eat for $4.99. Or that The restaurant group that Owns Bennigans and Steak and Ale would file chapter 7 and closes all of its doors; or that Ruby Tuesday would report a 97% decline in first quarter income and as a result reduces its prices for dranks and burgers by $1.00?

Folks so broke that we seeing foreigners salivating at the mouth to eat us up. Spain’s BancoSantander is bout to, if they already aint, take full control of Pennsylvania based Sovereign Bankcorp. Aint no more profit to earnings ratios anywhere, not to mention I always wondered how one could post profits without any earnings. And ii won’t even go in to all the job lay-offs. So yea jones, America is Ba-roke (broke). Welcome to the reinvented Baroque period.

Addendum: RIP Rudy Ray Moore aka Dolemite

take it on the chin

I am a firm believer that Ignorance and freedom is incompatible. Likewise I accept that my folk, including the members of the House and Senate are just as ignorant as well. Last night in a unique move the Senate grandstanded and passed their version of a financial market stabilization act – this time, 450 pages of feces. Fuck bailing out banks, although I do feel that Paulson messed up when he did not attempt to save Lehman, the truth is that market fundamentalism – the idea that the market can do no wrong, will exist no more jones.

I don’t want to scare nobody nor second guess (to steal a phrase from Sarah Palin - can’t name a single Supreme Court case she disagrees with other than Roe v. Wade LMBAO) nobody on this, but I would like to provide a terse commentary on saying that something is better than nothing, when no one has really thought about this from a pragmatic perspective and just seems to me giving Paulson what ever he needs with out review and thorough examination, is some of the dumbest shit I done ever heard. I figure 200 billion invested in schools, bridges, and even securing our ports will go a lot father than dumping loot in the hands of folks who have a history of looting that has placed us in the mess in the first place. By doing the aforementioned, albeit common sense, I think it would proffer job creation at the grass root level for we know politicians will never be or desire to do any real labor like us common folk. Not to mention it would not take 700 billion if one spent the money on helping folks who own homes like me to keep them, and the steady stream of mortgage payments going to said banks.

Too much credit got us into this problem but now we trying to make folks get more credit. It is nothing more than the banks controlling the government. I mean the standard is obvious is that its cool for folk to make millions while those that don’t, it is cool for them to suffer.

Maybe I am wrong, but I say let them mutha fucas fail, let them take it on the chin. I mean, if I mess up, for bad business judgment, are they gone help me? Where my bail out papers? I don’t even know where the 700 billion dollars went in the first place, I aint get none of that loot did you? When I do my books I do the regular old school accounting, you know traditional accounting methods that match cost and revenues. But Paulson, and HIS bill want me to bail out, excuse me rescue folks that employ the Enron” economically satisfying” approach of accounting for valuing assets and liabilities. Robert G. Haldeman, Jr. wrote: “Fair value derives from “a hypothetical transaction at the measurement date … A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The principal market is the market in which the reporting entity would sell the asset or transfer the liability with the greatest volume and level of activity for the asset or liability.”

I wouldn’t be surprised if Paulson folks from the house he used to run Goldman Sachs laced his pockets to get this shit passed. All I am saying is that I want some to. Bail me out jones, I mean this shit, I aint even no crook.

And yawl talk about Obama, tonight was his first vote since June (i think) in the Senate, and McCain’s, first vote since April. They say this is needed, and all we can do at the moment, but it may or may not be a quick fix and what we need is a well thought out and permanent solution. I just think that this talk of something is better than nothing is feculent, and makes me think they are saying if I had the choice to think something well out versus panicking, I would do the latter. That’s all these two pieces of legislation show me, that these folks would rather panic than think on solving the problem. Shoot, I think DeFazio’s plan is better thought-out than Paulson’s and really like is suggestion regarding banning short selling of stocks - selling'' stock at a lower price before actually taking ownership.

But this is just me, and as I said it ticks me off when the average citizen complains or approves of something, like these bills when they don’t take the time to read them. Ignorance and freedom is incompatible folks; and I will never side with panic over thinking something out thoroughly, why should you? I say let them folk on Wall street take it on the chin, cause it don't impact Main street as they say - newspeak is all it is. vote

Fk the VP, who gone be your Treasury Secretary

Ok back on the grind but first two things I have noticed: 1] I have noticed how Obama is saying all that I wrote in my post called slacking on your macking now. 2] My Titans 3 – 0; 3] Aint no gas in GA – there is a shortage in most places except where I live. LMBAO.

Back to the task at hand. I was trying to stay away from the economy. Seems that folks don’t have worries no more. Well I don’t wanna scare anyone, but I do desire for folks to have a semi objective and non biased opinion of things the way this single distorted, sordid and diabolic mind perceives such. I mean Wall Street over the past three Sundays, that’s right Sundays has gone over a dramatic facial. Now Goldman Sachs (as I said) and Morgan Stanley (as I said) are no longer investment houses but rather regular old banks now thanks to you guessed it, basically unilateral decisions of the Feds. Yep regular banks – which have stiffer regulations when compared to investment houses.

I don’t know about you, but I would hope that I am not the only one kind of leery of having basically one man in control of making financial decisions with my tax loot. Secretary of Treasury Henry Paulson. And add to that Ben Bernanke, it makes me a bit more concerned. If it was like it was back in the day I wouldn’t be so worried. The old fed maintained T-Bills as most of its asset base. The typically matured in increments of 90, 180 or 360 days and sold at a minimum value of 10 stacks.

I know Paulson think he is doing the right thing and maybe he is, but to compare the value of a MBS to a T-Bill from the historical vantage point I maintain is feculent. Add to that, doing all of this decision making in essence to hand over a black check to these folk with out consulting congress before hand borders on treason to me. Shit, today the Dow dropped almost 400 points and Oil prices posted a record one-day gain today, going over $25 per barrel. I aint buy no oil futures, but Gold, just as the aforementioned is a commodity also [note to self last week u could get 68.78 oz of gold for 50K, today 50K gets you 58.8 oz] . Add to that the knowledge that P. Morgan Chase and American Express fell 13 and 8 percent alone today respectively.

I just say, I feel that we are bailing out folks for stupidity or even worse for making poorly thought out investment decisions. And the plan as I have just finished reviewing, I mean the planned bailout, still leaves it wide open for these institutions to load even hedge funds to dump these distressed assets on the tax payer, I mean the government.

I think we need to dig in for the last 7 weeks before the election and ask these folks some serious questions. Dang man, we know who the VP is, but on the really real, fk the VP, I wanna know who they gone pick as the next secretary of the Treasury. We got it all wrong up in this camp.

the fat lady aint started singin' yet

For the record, tonight I am writing this without the assistance of Tequila and hot sauce – I know a shame. So If I make too much sense or not enough forgive me, for I left my wallet at the shop and I am eating black olives, brie cheese and drinking blueberry/pomegranate juice (dick hard food as I like to say). But for me it is a state of Emergency, especially since folk like Treasury Secretary Henry Paulson seems to always act ex post facto and put shit in place to deal with problems but not prevent them.

Now I will be the first to say I aint no investment banker nor am I an economist, but I read and don’t consider myself to be a stupid mother fucker. There are several things about the economy I want to point out. First, all of this shit has happened under the watch of republicans and all these chump bitch ass folk wanna do is put a band-aid on an amputated leg. And hate to say it, But Bear Stearns, Lehman Brothers and AIG is only the beginning of what is to come. I remember recently how Paulson said that the problem that we have is because “We have an archaic financial regulatory structure that came in place a long time ago, after the Depression. It really needs to be rebuilt."

From my understanding of history, the problem during the depression was stocks. Yep stocks, for back then they were not regulated as they are today. In the current economic picture, we got to deal with some other thangs, namely hedge funds and derivatives, which are a lot more complex and no where close in resemblance to the classic stock or bond. But like in the depression era when stocks went unregulated, today derivatives and hedge funds and what they call credit default swaps, can be bought and sold and packaged without ANY federal or state regulation (yawl economist and investment genius correct this layman if I am wrong).

No regulation, nada. And we came to this like I have said in many post before, due to many folks, but one I have yet to mention is Former Senator Phil Gramm. Yea, yawl know Jones, he said that Americans were whinning over the economy. He currently is McCain’s economic advisor and I must say with him at the helm, I can only see the economy getting worse. A few post ago I wrote about how he led efforts to pass the Gramm-Leach-Bliley Act in 1999, which served to reduce government regulations in that separated banking, insurance and brokerage activities that had been in place since the Great Depression. But more importantly to jones here was his role in getting the Commodity Futures Modernization Act of 2000 passed.

Now let me tell yawl about this. True, he is the VP of USB, a Swiss bank and one should expect such, but this was some sneaky and scandalous shit folk pulled mane because it made specific provisions that products offered by banking institutions would not be regulated as futures contracts – no regulations by feds or state governments, like stocks before great depression.

That’s another reason I say McCain is stupid, for picking a man who is the VP of a bank with 12 billion in losses last year as his top economic advisor and because McCain himself say he is learning economics by reading Alan Greenspan’s book – LMBAO. Not to mention Gramm aint write it but rather it was drafted by Wall Street lawyers. They do this shit via what are called structured investment vehicles and this shit aint even on the balanced sheets.

With the aforementioned and they way they keep they books, via Gramm’s help, we will never know what the actual losses are or will be. Add to that the way they cover this stuff is through another shady side bet called credit default swaps which are “expressly” deregulated via the Act mentioned above. Credit default swaps are the most widely traded form of credit derivative. They aint nothing but bets between folk on whether or not a company will default on its bonds. This is easy to do cause all the banks been doing is giving out mortgages for homes, bundling them up as securities and selling them to others

All I am saying is what we are seeing with Lehman Brothers, Bear Stearns, and AIG is only the beginning because these are based on faulty MBS. Next its gonna be credit cards, student loans and all loans – even private equity loans (corporations). Yep the fat lady aint even started to sing yet and we the tax payer got to pay for this and get the shaft with no Vaseline because the feds will bail these folk out and let the CEOs leaves with 100 millions and even pay for big company but not folk who loose their homes.

All I am saying is handle yours because it WILL get worse. But yawl don’t hear me though, but I bet you getting your toes done, smelling the microwave pop corn and talking about what you eating and dranking at some fancy retro chic Bar. Not me mane. Not me. Like I said, the fat lady aint even started singing, so I would advise you to stuff your mattress, at least a little at a time. vote

the midas touch

Extra extra, read all about it, these mutha fuckas want to pass a 150$ billion economic emergency rescue bill with the quickness. At least, this is what I have been able to ascertain thus far based on what Mr. President, Mrs. Speaker of the House and Treasury Secretary Henry Paulson (yes Virginia, the Treasury Secretary has a name) have stated on the record.

This loot is supposed to serve as an economic stimulus to jump started the already stagnant economy (which I wrote about a few weeks ago) with roughly 66% allocated for tax breaks for individuals ($880 for individuals and $1600 for families) and a significant proportion of the remanding one-third to businesses given it also includes some additional but narrow support for unemployment benefits and food stamps for the poor.

I just wonder why they could not see all this shit approaching? A perspicacious person would have seen the possibility of such. Ronald Reagan started all this mess some 30 years ago. The California cowboy Actor as President Jones put in place policies that reduced the Feds typical role of providing government safe guards for the general public. Namely, protective acts that dealt wit such public concerns like water and food quality/safety and the safety of pharmaceutical drugs.

But it wasn’t all on him. Let us not overlook former (getting some head) President Bill Clinton made what Regan did even worse. It was Clinton who repealed the Glass-Steagall Act (which historically kept banking and Investment houses separate). By this act alone, he made the financial industry like Wal-Mart – one stop shopping. The act was put into lace after the Crash of 1929 (Black Tuesday) and the great depression since both were mostly caused by "improper banking activity or what was considered overzealous commercial bank involvement in stock market investment."

Under his watch, Congress passed the Private Security Litigation Reform Act (H.R. 1058). This is why it is difficult to prosecute, prove and to convict K-Street supporting crooks of security Fraud anymore. It also led to a new dawn in American business by creating an environment ripe for the Tyco’s, Enron’s, and Ken Lay’s to doctor books, profits and stuff their pockets while companies folded, went bankrupt and millions of investors taking all of the losses. I could continue and link this with the present environment of sub prime mortgage lending but such is self-explanatory.

I do not know what they are trying to do. To me what is being proposed and implemented inclusive of the Federal Reserve Bank dropping the over night lending rate to 3.5% don’t do anything. Sure in the short term, it’s like holding pressure on an open ax wound. But like an ax wound, the bleeding may stop, but the person still requires major surgery and may even still get gangrene.

For the general public, the 3.5% cut means that the prime rate will drop to an equal amount to 6.5%. So one may see this if they have credit cards since most folks have variable interest rate credit cards.

So again, this is nothing new. We have set ourselves up for this with Lame leadership including the Bush’s, Bill Clinton and Reagan. I mean am I stupid? Why would going into debt an additional $150 billion help the economy while we are approaching spending 500 billion on Iraq alone? Then we really don’t know the true impact of the sub prime mortgage hustle because there is no way to determine what banks portfolio’s are really worth, or how much lot they have really lost – at least the way I figure. Add to that this past week, interest rates of short-term treasury bonds (6-month) dropped to their lowest rate since 2004 and companies like Delta and United (although the are airlines) reported last quarter losses of 50 and 53 million dollars accordingly. So please tell me if I am wrong, before I transfer 12-15% of my portfolio into gold ingots.