Sinfest is on a roll
Bob Morris @ 22:06 Category: Credit crisis;
View the cartoon full-sized on Sinfest.net. It uses the movie “Titanic” as a metaphor for the financial crisis, with “well-to-do and CEOs only” in the lifeboats, among other things.
September 21, 2008
Class war?
Bob Morris @ 18:40 Category: Credit crisis;
Futurejacked on a purported email from a member of Congress who, after saying the financial industry needs to be deliberately insulted says, “I’m open to other ideas, and I am looking for volunteers who want to hold the sons of bitches so I can beat the crap out of them.”
If it is “real” and not agit-prop, then the socionomically predicted anger may actually be swelling from unfocused irritation to a “heads will roll” focused hate. Show trials and witch hunts to follow and the financial elites will have built the bonfire for their own immolation.
The rage is real and growing. Even the Drudge Report and many conservative blogs don’t like the Paulson plan.
From a WaPo op-ed
When a financial journalist friend of mine asked a prominent executive how this would all end, he replied, “With riots in the streets.”
Either a riot or a bloodbath.
As a trader said when asked to sum up the current situation on Wall Street: “Pigs get fat. Hogs get slaughtered.”
Like FutureJacked, I do not endorse violence in the streets. Should the coming investigations show that some Wall Streeters broke any number of laws, then fine, toss them in prison, invoke RICO, and take their money as forfeit. But inchoate violence in the streets solves nothing. Rather we need organized, disciplined, and focused protest. The object is to affect real change, not get vengeance.
Convention of the Left
Bob Morris @ 15:48 Category: Socialism;
Today is the first day of the Convention of the Left in Manchester, England. It runs for five days as a counterpoint to the Labour Party meeting there, and has attracted the support of virtually all the Left in the UK. The primary theme is unity, how can the Left best work together, even with differences about tactics and beliefs. This is an encouraging and inspiring idea. The US Left needs and would greatly benefit from a conference like this. After all, our antiwar movement fractured and splintered because of sectarian differences that were pointless and didn’t need to happen.
Themes of the Convention of The Left
If Unity is Strength, then the Left is very weak, not only has it suffered from three decades of defeat, but since the late 1990s has systematically failed to take advantage of the many opportunities for it to substantially extend its influence.
Most notably out of the enormous stop the war movement it failed to build a mass alternative to New Labour, rather the opposite, the anti-war movement, in spite of its many awe inspiring achievements, consolidated the Left’s fragmentation, its general retreat from class politics and overall decline.
We do resolve to find ways that the Left as a whole can co-ordinate action both nationally and locally wherever we can. We are not aiming to displace existing united campaigns, but to strengthen these and to encourage working together across the widest range of organisations and individuals.
From the Red Pepper blog about the conference
It was Derek Wall who best summed up the Convention of the Left’s opening session, and he did it by quoting Chumbawamba. “Even though we disagree,” they sang, “we share a common enemy”.
It was a call for non-sectarianism that echoed through almost every contribution, whether from the speakers or from the floor.
“The convention is a brilliant idea because sectarianism gets you nowhere,” was how Tony Benn put it. “Socialism should be a mosaic, not a monolith.”
Precisely.
Obama on what the bailout plan needs to be
Bob Morris @ 14:53 Category: Credit crisis Tags: Paulson plan;
Let’s hope he and other Democrats strongly oppose the current plan and that this isn’t just words.
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.
And finally, this plan can’t just be a plan for Wall Street, it has to be a plan for Main Street. We have to come together, as Democrats and Republicans, to pass a stimulus plan that will put money in the pockets of working families, save jobs, and prevent painful budget cuts and tax hikes in our states.
You’ve heard of TGIF? Now it’s FDICF
Bob Morris @ 10:52 Category: Credit crisis;
Sue says:
TGIF - thank God’s it’s Friday
Now it becomes FDIC Friday or perhaps it should be called ONIFDICF (Oh no! It’s FDIC Friday!)
12th bank closed this year by FDIC (who always closes banks on Fridays)
Oppose the Treasury’s bailout plan
Bob Morris @ 05:44 Category: Credit crisis;
David Merkel details why the proposed Treasury bailout plan needs to be opposed. He asks all of us to contact our Congressmembers and tell them to oppose the plan and for bloggers to spread the word.
Here’s why:
The owners of bad assets should risk their equity before taxpayers put up one red cent. The government should not try to prevent financial failure, but prevent financial failure from spreading as a contagion. Common and preferred stockholders of failed institutions should be wiped out. Subordinated debtholders should take a haircut.
Second, the proposed bill is vague, and offers the Treasury a “blank check” to do pretty much what it wants. Section 8 states: “Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.” Who are we kidding here? I don’t care how great the emergency may be, the other branches of government should be able to act as needed.
Third, there is nothing to assure that fair market value will be paid for assets. If an investment manager is hired, who could tell if he plays favorites or not? Clever investment firms will take advantage of the government and its agents, and only sell overpriced assets to the government.
Fourth, there is no easily identifiable upside for taxpayers here. If we bail out a firm, it should be painful, as it was for the GSEs and AIG, where most of the equity gets handed over to the government in exchange for a senior loan guarantee.
Fifth, though the name of the Resolution Trust Corporation has been invoked here, this is nothing like the RTC. The RTC only dealt with insolvent S&Ls. It did not try to keep existing S&Ls afloat.
This proposal is an expensive boondoggle and should be opposed by all. As one bit of evidence here, how many noticed that mortgage rates went up on the day the deal was announced?
That’s right, mortgage rates went up, when they should have gone down. Read Merkel’s entire post for his well-thought-out plan of what should be done.
Then oppose the current plan.
Further proof our government hates the small businessman
Bob Morris @ 01:32 Category: Unfiled;
From IRS Tax Court. (Sue found this while researching one of her tax classes.)
Docket No. 26641-81, 50 TCM 538
The gross income of a convicted hashish importer was properly determined by the IRS without any reduction for amounts that were allegedly shared with unidentified co-conspirators. His contention that he received only $185,000, and not a full $1,510,576, was not credible because (1) he paid over $400,000 to others who played a lesser role in the criminal activity and (2) his living expenses incurred after the importation of the hashish exceeded the amount that he willingly admitted receiving. Evidence of failure to file tax returns and report substantial income from criminal activities supported the IRS’s imposition of a fraud penalty.
