Breaking. Credit crisis hurts the blameless

Schools and local governments in Florida who routinely deposited excess money in a state run investment fund were stunned today when the state suspended withdrawals.

This is because the nimrods who ran the fund were “investing” in extremely risky SIVs. Word got out, there was a run on the fund, now the state has slammed the door shut.

It is a certainty they did this because the fund is taking huge losses and not only do they not want to liquidate at a loss, they can’t, because there are no buyers for the garbage they own. That’s right, this stuff is so toxic that no one wants it.

Bloomberg TV just had an interview with a school official in a Florida town who said, I’ve got a $850,000 payroll for 230 employees to make tomorrow and no money to do it with because the state froze the money. He sounded practically in tears.

We are talking billions of dollars here that will evaporate. And there will be many more stories like this in the coming months.

  • Before Bush is through, every public and government agency will be completely destroyed with lack of funds.

  • Mark

    Larry, isn’t that what the people want? Smaller government?

    Government so small you can drown it in a bathtub. (Google that phrase and see where it leads you.)

  • Anti-Zionist

    All additional funds, weren’t theirs, did not belong to them, and should have been refunded to the people.

    But that’s the way South Florida runs, full of ‘Chosenites’ ‘Chosen people’, who believe that all the goyim gold belongs to them and they have their Shabbos Goy president in the whitehouse. Times couldn’t be better!

    Those low-income goyish burger flippers, laundry maids, and walmart clerks, the living dead, who kowtow to these B-Movie-Stars and TV experts in the paracitic zionist hellhole of South-Florida, better rethink who they are serving. Get new neighbors.

  • Things Come Undone

    Who is running this fund. Do the fund managers have any connections to Jeb? What else did these fund mangers invest in hedge funds, Florida real estate?

  • There will be much of this coming from funds all over the country. The toxic sludge formerly known as investments has seeped into everything.

  • linda

    The senior citizens of Florida are not “chosenites”. Most of them voted democrat and are simple retirees who aren’t out to destroy anyone, including bigots who don’t know what they’re talking about when they call anyone that isn’t exactly like themselves a zionist. but criminality and ponzi schemes exists among all groups just like greed and bigotry.

  • The debt instruments the fund bought were investment-grade rated. The security gets the rating of the reinsurer who insures it. Madness, isn’t it?

    The alarms on CDOs and SIVs have been ringing for a while for those of us who have been tracking this.

    Considering that pension funds own this stuff and just today $62 billion of SIVs were downgraded, that means pension funds must sell it because they are not allowed to own less than investment grade. Yet SIVs currently are so toxic they don’t have a bid. That’s right, no bid. No one wants them. So the funds can’t sell because there are no buyers.

    Monday should be interesting.

  • Pete

    Anti zionist needs to check his facts ( something Rethuglicans never do). The funds are run by the nimrods in Tallahassee, not south Fl. Blaming the blameless always seems to be the tactics of right-wingers,while they never offer any constructive ideas to help resolve the crisis at hand

  • @Mark (2):

    “Larry, isn’t that what the people want? Smaller government? Government so small you can drown it in a bathtub. (Google that phrase and see where it leads you.)”

    Speaking strictly as a passing stranger hereabouts (clicked in on a link), I’ll gladly settle for a straight-up, foursquare, fair-sized, utterly accountable and non-impeachable one. One that keeps the authorhood of Creator (Kind Holy Creator) and the consequent brotherhood of all humankind at its core. One that CARES WHAT IS TRUE and keeps to THAT. Let it but be based entirely on NON-FAULTY intelligence from the ground up and we’d all be just fine, I think, except for maybe the Russels and the Harrimans, the Kissingers and the Bushes, oh yes and (at least) one Cheney of this reeling world.

    Genuine HUMAN-CENTERED intelligence. Not lizard-brained “Oh OK well whatever, now we can just go bomb ’em all” schlockola.

    One that (here my point connects to the thread’s topic) does not rob the US Social Security pension fund with both hands like Big Jimmy Hoffa (Google {“Jimmy Hoffa” teamster “pension fund”} or wiki him!), while shrieking “Social Security is GOING BROKE! GOING BROKE!” as loud and often as can be, with the bigmouth mass media-catapult just loyally repeat-repeat-repeating the poopaganda.

    One that does not, in the name of “Corruption Control”, occasionally just take one hand out of the till long enough to wave wildly and and point Over There at the scapegoat of the day while continuing ill-abated to rob the widowed, orphaned, and all-worked-out retiree blind with utter high-handed sneering impunity.

    Um, remember when that Roving mob was out to push all us SocSec retirees just slap-bam like that into the stock market? And had they succeeded, THEN what would have been our fate /en/ /masse/ today?

    By now, I for one do think, many of us would now be looking for places under major highway bridges to plug our computer gear back in and catch up with the blogging while winter closes in like Old Night. Why do I think that? Because Karl Rove’s retrospective take (per YouTube media clip circa a couple of primetimes back) was that “we just did not move on Social Security soon enough”.

    Hohhh-. Leeeih-. Sheeeyit.

    The really troubling aspect of all this is that to all evident appearances, the “electable” “front-runners” of both the Dumocrat and the Repuglican partiesall do just seem to uniformly and essentially promise to grab them ankles and hold ’em high for just as long as it takes before vanishing into the dead of Old Night with ol’ Salty Sam and the Deed to the Ranch.

    Next move is endgame, Good People: We the People as one nation all get to be liquidated PDQ not long after the Great Abscondment. See the glory of the Royal Scam?

    In fact, even the Repug dark-horse, iffen ya’ got the key to decoding his old-line Libertarian phrasings, parsings and overall pronouncements, pretty much tells us the same thing, only kinder and gentler. (After all, he’s an MD.) But I have learned to decode a whole lot of tangled-up, crossed-up BS on the way to here. Others of a somewhat easier walk on the Great Road may not have necessarily done quite all that much streetwise “homework”. But “How Liars Lie and What they Sound Like When They Are Lying To YOU” is the title of the Winning Thesis.

    And I, for one, smell everything from bombastic feckall-on-A-rabz (RoodEEE! A message for YOU, RoodEEE!) on down through subtly kind-and-gentle-sounding weezil-wordud feckall-on-Us ALL speech coming from that NICE avuncular Ron Paul MD.

    Um, lies propagated in the name of public safety have swiftly become DESPOTIC TYRANNY imposed in the name of (yup) public safety. Sad to say: By my own decodings, they ALL do it. Therefore, from THAT crowd, I see only Endgame and Old Night on us all from any and all of them. So help me, all the front-runnig=ng Dems are up to their ears in complicity in this unspeakably vile mess.

    Except for one.

    In fact, the ONLY candidate I have heard out thus far who actually PROMISES to set things to rights is the dark-horse candidate from Ohio, Representative Dennis Kucinbich. Y’know, anyone who proposes to undo the Unitary Presidency by both virtue of Constitution AND by dint of the post–BushCo-precedented Presidential “powers” themselves, and thus to restore the NORMAL TRICAMERAL BALANCE, strikes me as a Superior Choice.

    So in the face of all that embedded malfeasant cooptation of all that ever was worth keeping of our America, it’s pretty much gotta’ be Kucinich for me. I’ll write him in if he ain’t on my ballot.

    I think that Kucinich
    Knows bullshit from spinach-
    Kucinich the truthful man! (Toot! toot!)*

    * has many, many Old Animated ‘Toons. Very retro! Check out Betty Boop – she is not censored there.

    But hit the December 1 iteration of the site for a hardcore review of “Takeover: The Return of the Imperial Presidency and the Subversion of American Democracy” by one Charlie Savage. The C&L “Holiday Thank You” list is just priceless. Also spot-on, iffen we can only keep this riddled hulk afloat long enuf to make drydock…

    If not Kucinich, then why not and who instead and why THEM? If not the Constitution, then WHAT? If not right now, then WHEN???

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