Sitting here waiting for George Bush, who will be speaking momentarily. Peggy Noonan is hoping he’ll inspire us. Um…yeah.
Bush walks out to face the clicking cameras, and looks rumpled and peevish. Will transcribe as quickly as I can:
Yesterday, the House of Representatives voted on a financial rescue plan that had been negotiated by Congressional leaders of both parties and by my Administration. Unfortunately, the legislation was defeated by a narrow margin.
I’m disappointed by the outcome. But I assure our citizens and citizens around the world, that this is not the end of the legislative process. Producing legislation is complicated and it can be contentious. It matters little what path a bill takes to become law. What matters is that we get a law.
We’re at a critical moment for our economy. And we need legislation that decisively addresses the troubled assets now clogging the financial system, helps lenders resume the flow of credit to consumers and businesses, and allows the American economy to get movin’ again.
I recognize this is a difficult vote for members of Congress. Many of them don’t like the fact that our economy has reached this point — and I understand that. But the reality is that we’re in an urgent situation, and the consequences will grow worse each day if we do not act.
The dramatic drop in the stock market that we saw yesterday will have a direct impact on the retirement accounts, pensions funds, and personal savings of millions of our citizens. And if our nation continues on this course, the economic damage will be painful and lasting.
I know many Americans are especially worried about the cost of the legislation. The bill the House considered yesterday commits up to $700 billion taxpayer dollars to purchase troubled assets from banks and other financial institutions. That, no question, is a large amount of money. We are also dealing with a large problem.
But, to put that in perspective, the drop in the stock market yesterday represented more than a trillion dollars in losses. Furthermore, the non-partisan Congressional Budget Office and the Office of Management and Budget expect that the legislation considered would ultimately cost the taxpayer far less than the $700 billion, because the government would be purchasing troubled assets and selling them once the market recovers. It is likely that many of the assets would go up in value over time.
Ultimately, we expect that much if not all the tax dollars we invest will be paid back.
As much as we might wish that the situations were different, our country is not facing a choice between government action and the smooth functioning of the free market. We’re facing the choice between action and the real prospect of economic hardship for millions of Americans.
And for the financial security of every American, Congress must act.
My administration will continue to work closely with both parties on Capitol Hill. I appreciate their determined efforts. While Congress is out today for the Jewish holiday, my administration will be talking with Congressional leaders today about how we can move legislation forward when members begin returning to the capitol tomorrow.
Our economy is depending on decisive action from the government. The sooner we address the problem, the sooner we can get back on the path of growth and job creation. This is what elected leaders owe the American people. And I’m confident we’ll deliver.
John Heilman on MSNBC: "I say this with due respect and even some sympathy for the man. That to me was the picture of a beaten dog. That was a picture of presidential impotence there."
Well, I don’t think that was a winner for anyone…yeeeeesh. Not feeling so confident after that, I have to say.
Related posts:
- Earth to CBO, Senate Finance and WaPo: “It’s the Economy, Stupid”
- Government Grows the Economy
- Memo to the White House: You Can’t Win an Unpopular War (And Stop Quoting George W. Bush)
- Noonan Blasts Palin as a Talented Lightweight, Praised Same Qualities in George W. Bush
- Mazie Hirono Speaks the Truth About Health Care





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Decided to call him poutus instead of potus.
me likey
he is the poster boy for a completely ill equipped doofus
Boy, do I hate the sound of that man’s voice.
I’ll just have to read the transcript.
Republicans continue to try to blame ACORN for the crisis and the failure of the bill. This is totally unacceptable on so many levels.
If Bush wants to get a dozen congressfolk to vote for this bill, he should threaten to campaign for them if they don’t.
707!
Did anyone see Marcy Kaptur on CSPAN just now? She was excellent.
the goopers are so disengenuous….they embarass me
I want the bill to fail, I want something interim till we have a new adminsitration, we are voting for someone in a month and while he won’t be taking office he will be preparing to take charge
this adminstration cannot be a party to any binding legislation regarding this crash, he owns it and the criminals in his party are the problem not the solution, paulson cannot be the administrator with more of our assets, he can possibly handle the token we give him for the few months this president remains in office but he cannot be in charge of any more then the bare necessity, he is a theif and theives will steal, we cannot allow more loss of our assets from the same criminals
now, if mccain is elected, fine, then he will own the bailout, I don’t want anyone blaming the failure of a bialout on bush, not obama and not mccain
if the next president owns the bailout they will have to make certain it works, if bush owns it they can turn their back and say “it was bush” if it fails, “it was me” if it works
I don’t want that happening, I also do not want this administration to claim, “we might have broke it but we fixed it”
they broke it, someone else has to fix it and this administration’s legacy has to remain one of inept failure
any bailout also has to include at least financail and professional punative repercussions for those agencies that opt into the bialout
their decision makers have to take the blame and put a pox on their reputation, they cannot claim they counted on the bailout and were therefore genious
Forget Inspire and Happy Thoughts and Feelings
We need a man with a plan! A plan that will work! What did FDR do during the Depression would be a good place to start.
Classic Snark!
machio has a great piece over at oxydown enumerating some punative action against the decision makers, I left my comment but he is right on the money, we need to see some people punished for this failure
Flogged a dead horse.
Democracynow this morning was all about curing the problem by stopping the foreclosures. Duh. Why should the guys who purveyed the bad loans instead of those who accepted them? One might think, at a minimum, if govt were going to intervene, both sides should be helped.
But only helping borrowers will act as stimulus to overall eonomy, which means that should be given priority, not the financial institutions. Unclogging financial toobz won’t help strapped consumers. But helping strapped consumers will both unclog toobz and be an economic stimulus.
The smirk is gone, and I don’t expect it back soon.
there’s the thing the democrats (listen UP obama!) have to understand
we do NOT create “austerity” to get out of this mess, we INVEST in ourselves, in our infrastructure, in new industry, we do NOT cut services and create new jobless.
amazing…. repugs say its nancy’s fault!! shorter bush speak…. i am outa here!! its to laugh
SPEW.
I think All Economic Bail-out Plans are currently Dead in the Water.
After Bush’s Incredible Shrinking President Speech, it should be clear to everyone that the Root of the Crisis of Confidence in the Markets IS the Crisis in Confidence in Bush.
He’s never been a Leader, only a Boss with a Bullhorn.
Instead of the Curtain being pulled back to ‘reveal’ Oz – it’s collapsed on top of the shilouette of a Small and Shaking man.
Either Remove Bush and Cheney, or Adopt Ian’s Economic Bail-out Architecture to limp US through to the next President.
Bush is AWOL.
me agrees, howz this for a plan?
the lenders have to eat the loss, those that have their homes need them re-assessed and remorgaged at the market rate and lowest interest the loan was originally sold
if the person is still over their heads they should be forced to sell of face forclosure, whichever is more beneficial to that ownser
Ah the lobbyists for TrashCash are telling me who to blame. I should have guessed. It is the Black Congressional Caucus! I bet they will be checking those mortgages. Also ACORN and poor people may be blamed.
but that makes too much sense
ah, I just started seeing that the republikkkans are finally blaiming clinton (bill)
I am surprised it took them this long
The economics experts like Krugman say that the best move is for the government to purchase preferred shares of institutions that are too important to fail. That’s what the Swedes did in 1992 and it worked well. The Finns did the same thing, but went the Swedes one better, no common-stock dividends and no bonuses until the government got its money back. Sounds good to me.
yup…shore up the middle class.and they will AGAIN COMMENCE SHOPPING …guaranteeeeeeeeeeeeeeeeeeeed
haahahahahahahahaha
they are shamless,and UNINSULTABLE period
Whew — thanks to TIVO, I think I got a fairly accurate transcript on that.
Agreed!
word!
It only took me a couple of weeks to figure it out. It was a situation where my Wall St. experience interfered with clear thinking. Past credit crunches were always handled the way they are trying to do this one: bail out the financial institutions one way or another (FRB involvement) which cures the short run problem. That always worked. But this one is much more serious and needs another approach.
Unless we raise interest rates and make saving rather than speculating on stocks the more profitable route.
There is no reason that this can’t wait for a few months. The sky will not fall. The gov should offer bridge loans to all qualified small businesses for payroll etc.
All foreclosures and seizures should be suspended until the new administration puts forth it’s economic proposal.
Time out.. let’s do the election and DISCUSS what the real problem is. Take the curtain from Oz Street and expose all that they have done to the economy here and abroad.
Don’t panic… FREEZE IT ALL for a few and come up with real solutions.
… thereby screwing the pension funds. It’s not that simple.
See my Oxdown diary from this morning for the chart of Chimpy’s approval ratings. Still headed straight down!
Sounds like a diary topic I would love to read more!
Exactly. To shore up the realestate market, improve the credit worthiness of those who want to buy real estate, i.e., their wages and job security.
The economic problems in america are not in finance, but in wages and salaries for workers, health care costs which should not be killing people, affordable housing.
Trickle down does not work.
Let’s do trickle up and watch things run smoothly.
It seems to me — and granted, I’m a layperson on the outside looking in — but pouring money into a system which is malfunctioning seems like propping things up for an even worse nightmare down the road. Wouldn’t a smaller nudge for now, with a longer-term change plan that is more comprehensive going forward make more sense legislatively and financially?
That just seems like a more logical way to approach this. Anyone seeing it that way, too — or am I wrong?
If the underlying problem is the mortgage crisis why doesn’t the gov just level the mortgage rates at 5.5% and let this thing settle down. I don’t really care who didn’t know what they were doing, who was speculating and who just got caught up in the problem.
That won’t solve everything but maybe it would help calm things down until we can figure how to ‘unwind’ all these credit issues.
A MarketWatch Financial Reporter David Weidner is on Cspan now blaming the American Consumer for the problem. “They should have watched their pocket books. They’re at the root of the problem…”
I think that funds investing in the market is ill advised. Too volitile and as is shown too risky and too complex because of the way Wall Street works.
We need a much simpler credit model and a pensions should be in government backed bonds end of story.
Investing in the market is going into a casino and if you lose your future you did it knowing the risks.
Yes! I want to see real regulation being brought back into the market. Instead, we’ve gotten the opposite, with the surviving large investment banks now operating under regular bank charters. This will only lead to more problems.
Nope. Stopping foreclosures means constructing a workout for households to pay what they can. That will, of course, cause some decline in the value of the mortgage and all the financial assets derived from them. But that adjustment is likely to be less severe than continuing the foreclosures and letting home prices drop to market clearing levels right away. (Sometimes it is better to make negative adjustments over time rather than all at once.) And right now, many of the mortgage derivatives are unpriceable. That’s what has seized up the financial system. Workouts instead of foreclosures would establish a price for those assets and allow credit system to resume functioning.
Thanks. It’ll have to wait until the weekend, and until I get some clarity about what I think about this mess. But I’m kicking stuff around in hopes of working it into a diary.
Ding ding ding.
You are correct, but the fix is a radical make over of the financial market, a change in banking rules and a severe does of control and regulation of banking and commerce.
The pukes don’t buy that. They are for unfettered free markets and the wisdom of the market.
Why not set ALL mortgages as a fixed rate 30 years and shut down the mortgage speculation biz.
How about a picture of North Street in Greenwich with all the trophy houses? There is systemic failure here with incompetence and thievery rampant through the elites of the US. Not so in FDR’s day when the US elites at least on the Democratic side were more responsible. But today we suffer the incompetence of the Clintons and the Bushes and their crony style of government.
Flogged a dead horse.
Ha…that old water cooler sign at work:
The floggings will continue until moral improves.
I not only think we have to kick it down the road, I think we are doing nothing but “asking for it” if we let the wolves guard the henhouse.
paulson and this administration are the very people that caused the problem, they did it on purpose, paulson knew it was happening too.
and the commision this bill sets up are the very same people who caused this problem
we cannot allow these people any part of the fix, they are part of the problem and they will continue their greed whenever we give them the chance
we give them this bailout it might bring the economy down and we will be the cuase of it ourselves
The problem is in derivative products. These simply must be made unlawful.
Yes. As one of the dn guests said, if you do bailout, then reform, reform will not happen.
Problem is, this is the way credit crunches have always been resolved in the past. That is why it took me a couple of weeks to figure out to look at it a different way. In the NYC-DC corridor they are locked into doing what they always did. No signs that they are reassessing.
Feel strongly you are right Christy. The “system” is inherently broken.
Yes, there need to be some short term palliative fixes, but comprehensive overhaul of our banking/insurance system (and monitoring) is the only answer.
The mechanisms for oversight worry me a bit. It’s telling that the NSA for example apparently has state of the art computer equipment/programs but the FBI’s efforts in that realm are still lacking.
Insuring transparency and enabling enforcement are going to be the real stumbling blocks to a safer US financial system.
Thought that was exclusive to the Marines.
Per this Dkos diary by devilstower, there are only about $111B of mortgages in default. That’s relatively small compared to the $700B requested, and only ten months of occupation of Iraq.
Here you go again being logical! You are, of course, absolutely correct. The “emergency bail out” was/is nothing but a “Golden Parachute” for bushco. According to the first demand for 700$billion the world would come to an end last Friday as it did not the lies and pure BS from bushco were once again exposed.
they are for ungettered free market but they know with no doubt there is no wisdom in the market, they also know they can make believe there is wisdom and their republican sheep will believe them
but they no with no doubt, there is no wisdom in the market, it is ripe for them to steal from the unwise and that is what they market
Dow opens up 100+ but is “technical.”
well!…lookey here!
if that is true then this ENTIRE episode is gamed, a deliberate shock to begin their shock therapy!
Amen! They are simply “unknowable” in many respects, particularly where regulation is concerned.
Allowing them has been like giving a teenage driver a prototype Masrerati and expecting him/her to maintain it properly and drive it safely. Not gonna happen.
Reaganomics rules the Republicans.
Here’s something I never thought I’d say–President Bush has made me feel a little bit better this morning.
if that’s true, then the “fix” is going to be incredibly cheap, paulson was counting on the rest if the money for himself and company, he was going to “fix” the economy, look like he saved the frigging world, and pocket 600 billion dollars
not bad stuff right there
I missed the president’s big speech. By the time I read Christy’s play by play, it was over. Only by minutes, so I turned the tube to cable news, you know they always replay his what? 2 to 3 minute verbal stumblings, but, no. If I wasn’t reading it here, I’d never know that he even spoke.
Has the media turned their back on Georgie B?
Oh happy day.
Trying to find something to smile about this am.
I repeat what I said yesterday.:
There is no “mortgage crisis” to “bail out” that said there is definitely a credit crisis. People will always need somewhere to live so the housing will never get to (the theoretical) zero, property will find the level at which people, with their meager earnings, will be able to pay. Credit card debt, on the other hand, can get to zero. If people cannot pay their cc debt and if they cannot declare bankruptcy under the Biden Law they can just say fuck it and walk away from the debt. No amount of cajolling by the banks or rulings by the courts can get blood out of a stone or money out of people who are broke ergo cc debt can go to zero and this what the banks and “financial institutions” are worried about. The mortgage thing is a red herring.
This is a debt run society, with no debt to earn money on interest there is no society. We have little or no manufacturing, the service industry does not pay anywhere a living wage there are few natural assets, little oil and dirty coal is about it. The farming industry has been so chemicalized as to make it a useless industry without applying tons and tons of toxic chemicals into the atmosphere. There is, to coin and expression, “no there there”.
Only the financial industry is left in this country and that exists on creditors borrowing money to lend money, money that has to have interest rates ever increasing or there will be no “profit”. Of course the problem is the rich do not need credit and the poor cannot pay for credit as their wages have been reduced to subsistence level. According to the Biden Law we need to allow usurious interest rates and no bankruptcy protection to keep the scheme alive and kicking. And now we have reached the limit of the peoples ability to borrow…the scheme has to crash.
The way to solve the problem is to pay people a living wage, cap interest rates and write down the present cc debt by forcing the banks to re-write existing loans. Of course the best way would be to reduce all debt but that would surely collapse America as, I said before, there is bugger all else that this country has to offer, no manufacturing, ever degrading farming practices, few natural resources. There is no there there.
on morning joe today rep clyburn said the inclusion of bankruptcy protection for main street and not just for wall street may sweeten the pot for passage…. is this a good idea? the middle class is in terrible shape just now and where’s the help for them??
What, you would deny the Democrat elites, their fortunes?
I see it exactly like you, Christy!
This is the best example, so far, of the Need to take the reins away from the Believers in Failed Policies – and put them in the hands of Rational and Sensible People.
The rational and sensible approach, as you say, is to stabilize the traumatized patient, formulate an accurate diagnosis and then craft a treatment plan.
The whole “Paulson as Economic Czar” reeks of an Abdication of Responsibility by Bush.
He ran away.
Now, We need the Adults to keep their heads cool in a crisis and demonstrating a clear understanding of ‘What we need to do going forward’ – and a rational and sensible approach will get buy-in from those who are ready for Action to Do the Right Thing.
The problem with the True Believers is that they lack a mechanism for self-correcting when their Dogma separates from Reality.
That’s where, imvho, Our rational sensibility comes in.
Speaking of “beatings” here’s a headline from thinkprogress:
http://thinkprogress.org/2008/…..eaten-dog/
now you’re talking!
I don’t think so. No military here.
But, please pass that salve. :)
“They should have watched their pocket books. They’re at the root of the problem…”
Then why go a bank for a loan if they are not there to provide their expertise and are not regulated by the government so that they are safe/act in consumers best interests.
Would I go to a hospital if I had to watch the Doctor to make sure that they were doing their job right?
I do not have that expertise but if the law won’t give me redress other options are open and that is when a society fails.
Speaking of bubbles, gold is in one right now.
Paulson is a lame duck who’ll be out of a job in four months and have to return to the banking industry. He intended to pave the way with a few hundred billion of our borrowed money. But, as William Proxmire used to say, a billion here, a billion there, and pretty soon you’re talking about some real money.
Also, I’m told that the U.S. has pretty much maxed out its credit card and will now have to operate on a tax-as-you-go basis. Horrors!
That slogan is popular on Marine T-shirts.
Time to reinstate debtors prisons.
Bush = beaten dog, McCain/Boehner = suckers, & Gingrich = Wily Coyote
Here is what my WingNut friends are sending me. Keep in mind you have to suspend critical thought and reasoning ability to get through this:
“Pinning The Tail On The Donkey
By Michael Reagan
September 19, 2008
When I was a little boy we used to play a game where we wore a blindfold and tried to put a slip of paper on a drawing of a donkey we couldn’t see. I thought of that as I watched the chattering class, blindfolded and frantically trying to pin the blame for the Wall Street debacle on everything but the real donkey, the Democrats, whose symbol is… guess what? Right, a donkey, and that’s where the blame lies, on Barack Obama’s Democratic Party. To find the donkey you need to go back to the Clinton administration, which decided that everybody and his kid brother was entitled to a mortgage even when they didn’t begin to qualify for a home loan. In saner days, banks designated certain areas as no-loan zones –depressed neighborhoods where lending money to potential home buyers was not just a risky investment, but a certain future foreclosure. Critics of the practice called it “redlining” and President Clinton and his chums on Capitol Hill decided that banks should no longer act like banks and lend money only to home buyers who could afford to handle the monthly payments. Now all bets would be off and people not the least bit creditworthy — and speculators — would be entitled by law to obtain mortgages even when it was obvious they couldn’t afford to handle them. Enter those now infamous quasi-government banking instruments known as Fannie Mae and Freddie Mac, which poured fresh money into the banking system by buying mortgages from banks. Over the long haul they managed to load up their portfolios with billions upon billions of dollars of risky mortgage paper that banks had been forced to offer and then dumped on them. The scandal of Fannie Mae and Freddie Mac dwarfs the Enron debacle. In Enron, people went to jail. With the Fannies, some just walked away with millions. The collapse of Lehman Brothers can be blamed on Fannie Mae and Freddie Mac, the two big mortgage banks that the Feds recently bailed out with big bucks. As Fox News has pointed out, they used huge lobbying budgets and political contributions to keep regulators off their backs. According to the Center for Responsive Politics, the top three U.S. Senators getting big Fannie and Freddie political bucks were Democrats, and No. 2 was Sen. Barack Obama, who as Fox noted had only been in the Senate four years but still managed to grab that No. 2 spot ahead of longtime colleagues John Kerry and Chris Dodd, the chairman of the Senate Banking Committee. According to Fox, Fannie and Freddie were where big-time Washington Democrats went to work and pocketed millions. Franklin Raines, Clinton’s White House Budget Director, ran Fannie and collected $50 million. Jamie Gorelick, an official in Clinton ’s Justice Department — the woman who built the “wall” that prevented the FBI from targeting terrorists before 9/11 — worked for Fannie Mae and took home $26 million. Big-time Democrat Jim Johnson, who headed Obama’s VP search committee, also hauled in millions from running Fannie Mae. Obama brazenly blames John McCain and the GOP for the current Wall Street mess when it’s clear none of it was due to Republican policies. The truth of the matter is that it was McCain and three GOP colleagues who sought to reform the government’s lending policies three long years ago after the Bush administration had failed two years earlier. On May 25, 2006, McCain spoke on behalf of the Federal Housing Enterprise Regulatory Reform Act of 2005, and warned against the debacle we are now facing if it failed to pass.
He told the Senate that a report by the Office of Federal Housing Enterprise Oversight charged that “Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives.”McCain warned, “If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.”McCain predicted the entire collapse we now are suffering through. He stressed the falsification of financial records to benefit executives,including Obama advisers Franklin Raines and Jim Johnson.Now Obama has the nerve to try to pin the blame on McCain and the GOP when the facts show that the blame must be pinned on the Democratic donkey.”
I guess poor Michael forgot who has been running the country the last 8 years….
Seems like an item that should go main stre
etam. With a small cash output, we could make some money on this? I’m just trying to come out with a baildemi plan.insert normal disclaimers of ignorance here.
imo it’s not, at first, an issue of how much money, it’s an issue of what the money is used to do.
paulson’s plan fails that test because:
1. he wasn’t going to tell us what he was going to do (blank check).
2. no visibility required.
3. no accountibilty mechanisms provided
4. no explanation (that made any sense) of how we got to this point (or even how to find out how), and plans to prevent a reoccurrence.
i don’t need to be an economist to judge the paulson/dodd/frank plans on these points.
The interest rate resets on the mortgages will continue, at least on Alt-A, through 2011. The real estate markets, especially in LA, LV, etc., still have a ways to fall – probably eventually losing close to 50% (using comparison to rentals). There is still a long way to go, that’s just the tip of the iceberg.
Time to restore going after the bastards that are ripping us off.
Here’s the thing about Georgie boy and the crisis. He hasn’t got the faintest understanding of what is going on. Among other reasons, that’s why he isn’t persuasive. He’s not in bullhorn on top of rubble territory, which even Sarah Palin could pull off; he’s in a place where talking points and sound bites don’t work. His so-called leadership has always been all PR and no substance. People are now looking for substance.
On the matter of that substance. I was chatting with a colleague yesterday when the vote went down, and he told me his son, who is gifted and earned his Ph.D. in mathematics from Harvard in two years, is working for a wealth-management group. I hadn’t known this, and was surprised, as I assumed that a person of his ability would have gone into academic life as a research mathematician. Of course, at ten times less the pay, which I suspect is why he is where he is. But you can ask this question: why does it take a strong Ph.D. in math to think this stuff through? It’s damned impossible. Nobody understands this stuff. It’s witchcraft.
thank you!
imo, this is really key because almost all the proposals i see floating around the blogosphere involve putting off reform. and imo, that is equivalent to saying it will never happen.
This is Bush playing the market meltdown fear card.
How will this get played for the coming election with fore knowledge or an event which changes the narrative painting the Democrats as being on the wrong side of the issue w/ no time to refute the manipulation.
Look at the vote count and something stinks. When has bush been right about anything . The Democrats are following him over an election cliff. Some how this will be used against the democrats.
I completely agree.
Folks, we need to stop talking about the horse race and start talking about this:
http://www.nakedcapitalism.com…..ction.html
Evidently, last night in a closed conference call, Paulson breezily assured 800 bankers that the concessions sought by the Dems were easily circumvented!
Last week I urged my congressman to support a bill ONLY if it contained these measures. Now it’s clear the Administration is once again bargaining in bad faith, and has no intention of allowing real oversight or accountability. In fact, the plan is to shovel money at HEALTHY institutions!
This is not a rescue plan, it’s a massive fraud. In fact, I think it borders on treason. I’m calling my congressman back and telling him the Dems must utterly reject the White House plan come up with a fresh approach on their own. And initiate impeachment proceedings against Sec. Paulson.
with so many mortgages upside down and with prices still falling, i disagree. it’s a symptom of the downside of the housing bubble.
eCHAN, hope you can answer a question – after my mom’s death I left the insurance (Prud & Met Life) in the money market accts (I was just too emotional to deal with it). Since the Fed has insured money market accts in existence prior to 9/19 – can I consider this money “safe”?
Plus Paulson wanted protection from future review of his actions which sounds like he wanted a get out of jail free card and that right there is a nonstarter for me.
Never trust anyone who wants your cash and a get out of jail free card.
Think someone’s already cornered that market.
During my 5 years as a physics professor, every single one of the undergraduates who did research with me over the summers ended up going to Wall Street. And I don’t think it’s because I was a monster who chased them out of academia–my colleagues report much of the same.
I have a whole long rant about what part the physicists on Wall Street played, but I’ll save it for another day :)
Paulson did say to Congress that the economy was sound several times that gives us a perjury charge!
It’s a game that, like many games, is amenable to mathematical analysis. There are many PhD mathematicians and physicists working on wall street, and the firms with the best teams of mathematical modelers, e.g., Goldman Sachs and Morgan Stanley, are the ones that backed off early and fared the best through this debacle.
After seeing Suze Ormon briefly yesterday on CNN, I’d be more inclined to trust her to navigate out of this mess than all the high-falutin’ Wall Street wunderpirates pontificating about this situation right now.
Her lecturing about don’t go out to dinners at the restaurants every night and put it on your card and then just pay the minimum payment….USA in microcosm.
yes. sigh.
why is it that the Democrats are wrapping themselves so closely to the Bush economic policy? even more closely than even the Republicans?
stupid and wrong.
I think you’ll be OK in the money market accounts. Of the 2 boards I’m on, one transferred the money market balances in the endowment into treasuries and the other did nothing. I thought the former was being excessively cautious, but these are extraordinary times. So you could always consider doing that. Short term treasuries, owing to flight to quality (that makes me laugh), are paying almost no interest, though.
Caveat: Never take financial advice you get online from someone you don’t know. Check with someone you know & trust.
I heard that meme on Lou Dobbs last night. Don’t laugh at it. If it gets traction, the rethugs get a new lease on life. They are incredibly good at rising from the grave.
Okay, fine. Back to the drawing board. Er, writing board. I don’t have a job. I don’t have a 401k, guess I better finish this screenplay. Putting all of my eggs in one basket. Call me a gambler. A maverick.
I’ll join you in that rant. Give me advance warning. On the Street, we called them rocket scientists, not an entirely flattering nickname. Seems like the rocket scientists have blown up the system.
Thanks for the response. I’ve got 15 years before I can consider retirement, rather have the money safe & not take chances at this stage of the game.
that phone call was sunday night. yesterday morning hugh described in here in the threads. see for example, this thread..
the audio was posted via bittorrent, which i reposted as a flash stream (so even folks on dial up can listen to it). the quality is not good, but it is clear enough to hear.
We will have a very conservative congress after the fall elections — perhaps a bit less conservative but still very conservative. Right now, liberals have leverage on them because their Reaganomics has failed, and they need a way out. That leverage will be gone as soon as the spotlight is off their failure. Recall, this is exactly what Grover Norquist has been hoping for, drowning/bankrupting the government’s ability to afford social services.
Before wall street, they went into economics. I have a similar rant about what they did to my field.
On that topic, I had the honour last Friday of sitting next to Nobel laureat Kenneth Arrow, who put high math into economics. We were talking about this mess, and he averred that the gains from ‘high’ theory, which he pretty much introduced in the mid 1940s, were exhausted by the mid ’60s. What came after was just bragging rights.
that one i’m looking forward to. *g*
why not make it into an Oxdown diary?
make sure you forward your very small response, to all that was forwarded too
begin with;
CAN THE PERSON WHO WROTE THIS BE A BIGGER MORON?
OMG – you are so right on target. Round Hill Road, North Street, etc. This is where the Wall Street honchos have been buying million dollar homes, tearing them down and building even bigger more ostentatious palaces of greed. Voters really should take a field trip in Greenwich to understand what has happened to this economy and where all the money (multi-million dollar salaries and bonuses) has gone.
thanks for reposting it selise!
You can fix that by indexing the mortgage to a real estate index… when the real estate index drops (as it is now… the mortghage amount resets to match and the payments are adjusted. All mortgages are based on a percentage of the underlying real estate and that remains fixed.
No I agree…I refute with articles from Froomkin pointing out how in 2004 Bush was touring the country claiming the housing bubble was a great thing and how his program to expand the ownership society with no money down loans was the greatest thing evah.
“‘We want more people owning their own home. There’s nothing like saying this home is my home,’ Bush said, adding: ‘I’ve called on private-sector mortgage banks and banks to be more aggressive about lending money to first-time home buyers. And the response has been really good.’
We must push back on this…The Republicans own it.
What?! No smirk?!
exactly.
LOL…se my previous post…It helps when I can use a direct Bush quote to shut them up.
I think you’re right, Christy, that we must be sure that we are not putting huge amounts of money into a pocket that has a big hole in it. I would, however, like to see us start talking about major fraud and recklessness rather than a failed/failing system. The system didn’t fail, people lied, cheated defrauded and stole, mostly Republicans and they must be held accountable. They should not be allowed to continue to profit from their criminal behavior.
If we need to provide some money to keep things moving until we can get the criminals out of the process, fine, let’s do it, but by no means should we hand them more money. Perhaps, in mid-January we will begin to have an Administration we can trust.
Arbusto el Busto has spoken. I gather he’s not yet in jail.
Very true re Goldman, Morgan and their risk models. But Morgan’s continued exposure to some of their bad debt was avoidable.
There was internal dissension within the highest ranks and an order to “get out” of certain postions was ignored. When it was discovered, it was too late.
The expertise/resources to manage this are available. It’s all about the people…and the decisions they make.
Jane’s got a fresh post, up and running…
Like they did on the FISA bill, once again the democrats fell for declarations of good intentions, a lot of trust-me bullshit. They were throwing bones to barking dogs. Paulson: “Never give a sucker an even break.” Why do our representative keep falling for this shit. Or, maybe they don’t. Maybe they simply take their bribes and pass the shit along to the press, who pretend to believe it and take their bribes as well.
Last night on Charlie Rose, Rose and Al Hunt of Bloomberg and also husband of Judy Woodruff were so full of gas that we could have solved the country’s energy for a 100 years if we could have harnessed. Conservative Republicans had been scared into voting against it by the overwhelming rejection of the Paulson plan by their constituents. But the focus of these two was on how to get the plan passed anyway. The fears of ordinary Americans were dismissed as irrational. Just a few tweaks were necessary and then all these Reps would come back on board and vote for it. There was only one reporter from the NYT who raised a few contrary points. But in general there was no examination of why constituents might have real and substantive reasons to be against the Paulson plan, what the alternatives were to the plan, and just how discredited Wall Street is in all this. They were the ones who created this mess and now they want the rest of the country to butt out, shut up, and give them the money. It was a truly amazing performance, and showed that denial is not just a river in Egypt.
Something similar happened on the NewsHour where a panel of financial experts more or less demanded that Congress back the Paulson plan. Margaret Warner the moderator was the only one who kept asking about whether the defeat in Congress of it might not indicate a complete rethink was in order. The panelists pretty blew that idea off.
What this tells me is that both the Beltway and Wall Street simply refuse to deal with what happened on any terms but their own, even realizing it probably won’t work, and equally refuse to accept any other ideas or any responsibility for creating this disaster.
Good thought. I should larn me them newfangled diary-thingies!
it’s their war on reality.
EPU’ed but I remember at the time of the Russian invasion, no not that one, but the influx into American academia of large numbers of really topnotch Russian physicists and mathematicians who had no opportunities back home, there was one particularly brilliant young physicist. American grad students I knew couldn’t understand why he would give up a sure thing in academia wandering shabby hallways for not bad pay for Wall Street where he would be living in New York and making millions. Still smile over that one.
POUTUS = President Of Undermining The United Status
correct me if I’m wrong but is there an actual recording of paulson doing that?
remember I said this is paulson stealing more of our money?
there it is, the democrats have to make a new bill with that recording in hand, they have to write it from the ground up, they will hopefully get ian welsh, ecahnomics and tom hartman on their advisory comittee
don’t think i look at hallways when i’m lucky enough to be doing work that i love.
Back in my mercenary days I was interested to learn that several of our signal processing algoritms were used by the financial world. We applieed them in Radar and Sonar receiver processing.
There is and it is available through the link at Naked Capitalism as a Bit Torrent.
perris @124 and nonplussed @127 – if you don’t know bittorrent or if you are on dialup see my comment @101.
I caught maybe fifteen seconds of him blathering, as I walked over to the train station and passed a car with the door open while the driver was unlocking a gate.
I doubt that I missed much.
Thank you, Selise. I was so busy reading the notes of the call that I missed a bunch of this thread. Then the good Professor got me reminiscing with the tale of him forcing those poor Physicists to go Wall Street and labor for slave wages! He had to treat them cruelly, to cause them to abandon the the high paying positions afforded to those lucky enough to populate the Ivory Tower!
I was thinking back to those filtering algorithms and the application to the market. I have always been very curious about that and would love to talk to one of those guys for an hour (more like an afternoon). My old pocket protector days. For real, our project’s pocket protectors were highly coveted by our clients.
It’s tough being on West Coast time and the threads start on east coast time; anyway, enuf whining. The shrub just can’t stop lying; “Furthermore, the non-partisan Congressional Budget Office and the Office of Management and Budget expect that the legislation considered would ultimately cost the taxpayer far less than the $700 billion” ; the head of the CBO is already on record as saying this legislation could make things worse.
And still the media doesn’t call him on his lies.
POUTUS!!!!
BRILLIANT
Thanks Christy.
digg