as Chris explains

Looking forward, when every other industry comes to Washington for their latest installment of corporate welfare (such as Detroit and the airline industry) we also need to seriously review executive compensation. If the taxpayers are going to be on the hook for bailing them out, it is only fair that the Mr. $21 million in four weeks at Ford either refuses compensation for this period or is paid a very low salary. The Detroit CEOs and senior executives have all blown it, so come back to planet earth instead of living the high life. Live on the salary of a line worker without all of the side benefits and then talk to us about a bailout.

From Catherine Austin Fitts
http://solari.com/blog/?p=1586

It turns out that David Hisey, the Chief Financial Officer of Fannie Mae appointed on August 27, 2008 after the government takeover, once worked at KPMG. And who were they? They were the auditors for HUD and FHA under Andrew Cuomo when the housing bubble got going and $59 billion plus went missing from the agency. (See our Missing Money page for more.)

So here is the latest tidbit in from a network member. Hisey was an audit partner and worked on the HUD/FHA audit account at KPMG during all the shenanigans.

Remember, just because Fannie Mae is in conservatorship does not mean that more assets can not disappear.

Thanks, Solari network member. Good catch!

good for Barney Frank!

OMG…………..shiiite ……………it is beyond BLATANT THIEVERY

Teddy,
The term I’ve always used for the type of words Paulson is spouting in your graphic:

Babbling Bullshit

Digg it.

This is going to get extraordinarily ugly. Frank is right, and as Ian has repeatedly pointed out, the bill as is currently structured should ring every alarm bell for it’s granting of authority to the Secretary of the Treasury.

The withdrawal analogy is probably right on, Teddy. The boys and girls on Wall Street have hoover’d up money like it was blow. Any cokehead (or former cokehead) knows that the crash is a bitch. Well, they’ve been high for, let’s see, 25 years now. I’m not willing to let them keep partying on my dime. If they don’t like the reality of the world, tough: 95% of the world has never ridden around in a Town Car. Learn to take the subway like the rest of us.

I really wish Andrew Sullivan had been muzzled instead of talking over Naomi Klein on Real Time Fri night. I really wanted to hear what she had to say about all this. This IS the Shock Doctrine on steroids.

If they ruin the country,and that is what it looks like,will the IMF and World Bank step in and completely destroy what’s left? I am scared,shitless about all this.

I cannot imagine how the rational folks in Congress like Frank and Kucinich retain their sanity. They must be made of much stronger stuff than I.

The NY Times is reporting that “bipartisan support for Wall St. Rescue Plan is Emerging”. Despite near-universal condemnation for the blank cheque nature of the plan from anyone who knows what is going on, and the absolute discretion given to Hank Paulson, our new economic warlord, it appears that the Democrats are going to give in and not make trouble. I have this picture of the scare talk that Paulson gave to the Congressional leadership, with Paulson going full Alec Baldwin on the Democrats – “Put that fucking coffee down Schumer! Coffee’s for closers!” Welcome to Glengarry Highlands.

http://www.youtube.com/watch?v=TROhlThs9qY

The bill $450 trillion First installment $52 Trillion
Shut up and keep bailin
You are already behind so buy a sump pump just keep on bailin suckers

Thanks for the link.

Thanks Teddy.

If this crisis were really as bad as Paulson says, why aren’t we immediately pulling out of both Iraq and Afghanistan? That’s the easiest place to dramatically reduce the stress on the nation’s cash flow.

i traded stocks for 8 years ,i can NOT wrap my mind around this

that is a FABULONEY QUESTION…DAMN YOU are paying good attention

Ms Klein did a quite good job tap-dancing all over Sullivan’s gibberish. I especially liked her line “Hey, if you’re going to nationalize/socialize something, grab Exxon; at least its profitable.”

And Sullivan sputtered…

Iraq, Afghanistan, bailing out the Wall St. typhoons, all critical to our eternal war on terra.

Sorry, I’m not being nasty or punitive here..but if the rest of us are going to have to ‘feel the pain’ then everyone…all of those big people…all of them..every single one of them..Cheney with his 48% ownership of Halliburton…everyone…we all need to feel the pain together. All the same.

Cheney owns 48% of Hallibutt?

n response to BooRadley @ 12 (hide text)
Thanks for the link.

Thanks Teddy.

If this crisis were really as bad as Paulson says, why aren’t we immediately pulling out of both Iraq and Afghanistan? That’s the easiest place to dramatically reduce the stress on the nation’s cash flow.

that is a FABULONEY QUESTION…DAMN YOU are paying good attention

and get off of big oil…keep bailin were just startin

Great post, Teddy. And I would add to those who want to lower taxes: “Why don’t you support the United States government?”

Can’t Obama and his advisers get the dems into a room and SPEAK?

Are they going to completely finish us by bailing out Ford and GM? We need to be working to stop that now.

I think that’s what is called “hyperbole”

Just tax golden parachutes at 200 600 percent.

Trickle up, baby.

I heard the other day (author of new book on Cheney iirc) that Cheney put all his HAL stock & options in a trust which is used for charitable purposes, so he has no personal financial interest in the company whatsoever.

This is a close out sale “Going out of business”.
When noone has any money what’s the point?

Shut up and keep on bailin!

Looks like Obama has spoken up. Here are his remarks on the Paulson fiasco:

First, there must be no blank check when American taxpayers are on the hook for this much money.

Second, taxpayers shouldn’t be spending a dime to reward CEOs on Wall Street.

Third, taxpayers should be protected and should be able to recoup this investment.

Fourth, this plan has to help homeowners stay in their homes.

Fifth, this is a global crisis, and the United States must insist that other nations join us in helping secure the financial markets.

Sixth, we need to start putting in place the rules of the road I’ve been calling for for years to prevent this from ever happening again.

Fine. He’s said the words. Now he can go and do his day job for a week or so and make sure they happen. Otherwise, he will be ignored by all the cowards being bum-rushed by Paulson and company.

During the last five years of his tenure as CEO of Lehman Brothers, Richard Fuld’s total take was $354 million. The current chairman of Merrill Lynch, who’s been on the job just nine months, pocketed a $15 million signing bonus. His predecessor, Stan O’Neal, retired with a package valued at $161 million after the company reported an 8 billion dollar loss in a single quarter. And remember Bear Stearns chairman James Cayne? After the company collapsed and was up for sale at bargain prices, he sold his stake for more than $60 million. And the former heads of Fannie Mae and Freddie Mac, the gods who failed, are fighting to keep severance packages of close to $24 million combined on top of the millions in salary each earned last year while slaughtering the golden calf. As it is written in the gospel according to me first, when the going gets tough, the tough get going.

Moyers

Good for him!

Golden Parachutes?

I have a feeling more folk are thinking Cement Overshoes.

I prefer Latrine Duty at Minimum Wage.

Mike Allen at Politico has a great statement that came from Obama.

Will the Dems read it?

Will Obama insist that they refuse to vote on any bills that don’t meet his outlined plan?

Will pigs fly?

Will I get several hundred million of the bailout funds?

Help, I can’t stop.

Ian upstairs on Obama’s words

Were bailin in the mormin
Were bailin in the evenin
Wwere bailin all ovah this land
Were bailin out crook and liars
Were bailin out the Soveriegn funds
Gotta keep on bailin
cause the debt just keeeps on whalin
Bailin, Bailin proud Mary keep bailin

We got some bailin kids
We got some bailin grandkids
Bailin Bailin and a bailin
Keep the rich boat a floatin

Unfortunately, its going to be the usual cast of Democratic capitulators that are going to get the last word on this: Polisi, Hoyer & Reid. Reprising his Alito role, Shumer already appears to be in the tank. Obama came out with a nice set of principles that a bailout should have, which this one lacks completely. Lets see who the clowns follow: Uncle Hank (i.e. Bush) or Obama. It could be very much a leading indicator of what to expect if Obama gets elected president.

had enuf?

Sullivan, aka the Duchess of DuPont needs to be muzzled. How in the world he’s managed to get into the good graces of progressives everywhere by standing up to the 1600 Crew is beyond me. He was one of the first and loudest advocating our “unAmerican-ness” for not supporting the invasion of Iraq, for not being in love with Glorious Beloved Leader. Now that he has “seen the light” we’re supposed to forget his calls for us to be locked up as “fifth columnists”?

I think not.

And Naomi Klein was fantastic. As always.

2 words on his site

NO COMMENTS …speaks volumes about who he is

Heck, the auto workers are fairly smart folks. They could be retrained to build Hydrogen Fuel Cell cars. They are productive. I would be happy to help them keep their jobs.

But, what good is the Financial Industry? The investment bankers only serve the Investor Class. These “Masters of the World” actually are slow-witted and drag their knuckles when they walk. Perhaps they could be retrained to work in the Circus as Clowns.

In the immortal words of St. Ronny The GaGa You ain’t seen nothin’ yet! I don’t know if they’ve been covered yet in these pages but I suggest that people do a bit of googling on the Alt A. loans crisis and then pester someone like Ian to write about it. They are as the moderately conservative U.K Independent puts it Potentially more toxic than sub-prime

Lehman Brothers admitted that it had cut the value of its Alt-As by 71 per cent – a deeper writedown than it made on its sub-prime securities. The cut left Lehman less exposed to Alt-As than HBOS.

The securities are known as “liar loans” in America because borrowers give no proof of income. Many applicants exaggerated their earnings to obtain larger loans to buy bigger homes, but were unable to pay the interest – especially when the low initial “teaser” rates charged in the initial years jumped later to market levels.

Default rates have quadrupled in the past year and are five times greater than the arrears on prime loans. Although sub-prime defaults are worse, there are twice as many Alt-A loans outstanding, making them potentially more dangerous.

Emphasis added.

mfi

Just because his trust is disgorging profits to charity doesn’t mean he lacks any financial interest in it: charity donations are deductible from other income for tax purposes. He will also reclaim that trust as his own in January 2009, and likely expects it to be in good shape due to his actions, and those of his minions throughout the federal government.

Charities are a scam of the wealthy, bright shiny objects they can point to, in their white tie and tails and say, “See, all the good I am doing!” Usually, and formerly, the supported things were accomplished via taxation in a normal liberal welfare state not corrupted by neocon Randians.

If relinquishing golden parachutes and other extraordinary compensation is a
“poison pill” for the bailout, then there really is not an immediate crisis and we have plenty of time to work out a reasonable solution which includes sacking everyone involved in creating this problem and making them pay for their stupidity (no parachutes or stock options and refunding past bonuss and extra compensation), instituting regulatory reform to insure this does not happen again, and insuring that the American people and taxpayers are the primary beneficiaries.

Bernie Sanders had the only reasonable comment I’ve read–(paraphrasing)–any business too big to fail without ruining the economy is too big. He specifically mentioned Bank of America as one company that should be broken up. Though I bet the Federal anti-trust division has been on short rations for a while.

They probably don’t want to give up their Town Cars waiting at curbside or their houses in the Hamptons or their hookers and blow, either, but fellahs, the times are a-changin’. There are even more more poison pills available. The pissed-off American public, tired of bailing your sorry asses out at the end of every GOP administration, is your new pharmacist.

Right ON!!!