"The American media has a script to which they loyally adhere. The U.S. can make mistakes and government leaders can be criticized for incompetence, but we can never do anything that is actually destructive or evil or which justifiably provokes hatred towards us by people in other countries -- not even bombing them and occupying them for years and imprisoning tens of thousands of them with no charges and replicating the behavior of their hated dictator. Any views that suggest such a thing are simply not heard." (thanks Laleh)
Wednesday, March 26, 2008
Subscribe to:
Post Comments (Atom)
21 comments:
and yet...
as'ad lives in america and makes no attempt to live in an arab country, a place he could apply all of his wisdom to...
denial, denial, denial...all the way into HELLL
i hope an iraqi hit charlie in the eye.
"Free Market", what a sham! Bailout for the rich goes on while common people in the US sik to the bottom.
Moyhabin
-------------------------
Welfare on Wall Street
Greed Pays
By SHARON SMITH
On March 19, JPMorgan Chase chief executive Jamie Dimon joined Bear Stearns chief executive Alan Schwartz to face a group of 400 stunned Bear executives. Five days earlier, Bear Stearns, one of Wall Street's five largest investment banks, had lost $17 billion of wealth, triggering the biggest financial panic since the Great Depression.
Bear approached complete collapse before the U.S. Federal Reserve stepped in to rescue it by engineering the emergency funding that allowed commercial giant JPMorgan to take over Bear, the first time the Fed has engineered such a rescue since the 1930s.
Dimon and Schwartz somberly explained to the assembled executives, "we here are a collective victim of violence," as if the investment firm had been beaten and robbed by a gang of creditors instead of aiding and abetting its own rapid demise.
It is impossible to feel sympathy for the situation now facing Bear's high-flying management team. Schwartz continued to issue public assurances of Bear's solvency until the day the firm collapsed. Current non-executive chairman and former CEO Jimmy Cayne, who achieved billionaire status a year ago, has spent the better part of the last year attending to his hobby of card playing and was indeed at a bridge tournament in Detroit while the value of Bear stocks was evaporating last week.
Even now, Cayne will walk away with more than $16 million while JPMorgan has already reportedly made lucrative offers to hire top Bear bankers and brokers. Under pressure from Bear's board of directors, Morgan sweetened the pot, raising its initial offer of $2 per share to $10 on March 24-again winning praise from Schwartz.
Bear's 14,000 employees, in contrast, have fared poorly. They own an estimated one-third of its total shares, which only last year peaked at $171.50 per share. As Bear sheds half of its workforce, many will face financial ruin. The cost to workers whose pension funds have been invested in Bear Stearns is unknown.
"Wall Street is really predicated on greed"
The Bear Stearns debacle is just the latest phase of the financial distress triggered by the subprime mortgage crisis last July, and it is unlikely to be the last. In a moment of candor, former Bear board member Stephen Raphael summarized the unfolding crisis facing the U.S. financial system, telling the Wall Street Journal, "Wall Street is really predicated on greed. This could happen to any firm."
The current financial panic is based on the knowledge that since the 1990s, Wall Street investment firms have orchestrated get-rich-quick schemes predicated on a model of betting using the odds of Russian Roulette, in which managers offer investors opportunities to make fast money in high risk transactions-through hedge funds, structured Investment Vehicles (SIVs) and other "innovative" derivative instruments such as Collateralized Debt Obligations (CDOs).
These investment schemes, which operate free of government regulation or oversight, have been described as a "shadow banking system," which operates in virtual secrecy, accountable to no one, based on mathematical models investors could not possibly understand and leveraged by borrowed money many times the actual money invested-at terms always skewed in favor of the short-term gains for managers.
The wheels for the current financial perfect storm were set in motion many years before the subprime mortgage crisis hit, and the Bush administration deserves no credit.
As one of his last acts as president in December 2000 Bill Clinton signed into law the Commodity Futures Modernization Act, which formally deregulated companies sponsoring derivatives schemes, sponsored by Texas Republican Phil Gramm, now the vice chairman of the Swiss investment firm UBS.
As Financial Times columnist Martin Wolf noted, "With the 'right' fee structure mediocre investment managers may become rich as they ensure that their investors cease to remain so."
On March 13, the Carlyle Capital Corporation hedge fund collapsed with debts amounting to 32 times its capital. The significance of Carlyle's demise was overshadowed by the Bear Stearns debacle. Yet, as Wolf argued, such vehicles are "bound to attract the unscrupulous and unskilled, just as such people are attracted to dealing in used cars
"It is in the interests of insiders to game the system by exploiting the returns from high probability events. This means that businesses will suddenly blow up when the low probability disaster occurs, as happened spectacularly at [the U.K. bank] Northern Rock and Bear Stearns."
Two of Bear Stearns hedge funds went under in the last six months due to disintegrating subprime mortgage holdings. But as the recent string of Wall Street crises exposed, the shadow banking system has increasingly intersected with commercial banks. It is difficult to know where one ends and the other begins, since banks have been allowed to keep such investment vehicles off their balance sheets--legally.
As the New York Times reported on March 23, "derivatives are buried in the accounts of just about every Wall Street firm, as well as major commercial banks like Citigroup and JPMorgan Chase."
In recent years, mortgages have been carved up and bundled into investments that changed hands before the ink was dry, as investment banks and other vehicles bundled the debt and passed it on in a global game of "hot potato" that passed on risks to the entire international banking system.
No bailout for distressed homeowners
Using up to $30 billion of taxpayer money-and without congressional approval-the Federal Reserve instantly mustered a bailout plan for Bear Stearns. But no relief is in sight for the more than 20 million homeowners whose mortgages are expected to exceed the value of their houses by the end of the year-roughly one-quarter of U.S. homes, according to economist Paul Krugman-or the more than 2 million facing foreclosure within the next two years.
While house prices have already have dropped 5-10 percent, most economists predict they will drop by another 20 percent or more over the next two years. But as Krugman notes, regional disparities will be devastating: "In places like Miami or Los Angeles, you could be looking at 40 percent or 50 percent declines."_
Yet, as the Financial Times recently observed, working-class homeowners are the most vulnerable to market trepidations: "remarkably, bankruptcy laws currently provide that almost every form of property (including business property, vacation homes and those owned for rental) except an individual's principal residence cannot be repossessed if an individual has a suitable court-approved bankruptcy plan."
Thus far, the Bush administration's response has promoted a "tough love" approach toward delinquent homeowners, lured into obtaining mortgages by predatory lenders during the heyday of the housing boom. Preventing housing prices from falling will prolong the agony, claims to Treasury Secretary Henry Paulson: "We need the correction."
Even the Wall Street Journal observed this glaring discrepancy, commenting, "Why a 'bailout' for Wall Street, and none for homeowners? Treasury Secretary Paulson is trying [to defend] what the government just did: 'Given the turbulence we've had in our markets and the way that sentiment has swung so hard toward 'risk adversity,' our top priority is the stability of our financial system, because orderly, stable financial markets are essential to the overall health of our economy.'"__
Those expecting a Democratic Party victory in November to reverse Wall Street forces must reconsider. "Hillary Rodham Clinton and Barack Obama, who are running for president as economic populists, are benefiting handsomely from Wall Street donations, easily surpassing Republican John McCain in campaign contributions from the troubled financial services sector," noted the Los Angeles Times.
By the end of 2007, 36 percent of the U.S. population's disposable income went to food, energy and medical care, more than at any time since 1960, when records began. And that doesn't count, crucially, housing costs. Meanwhile, the other shoe has yet to drop.
Sharon Smith is the author of Women and Socialism and Subterranean Fire: a History of Working-Class Radicalism in the United States. She can be reached at: sharon@internationalsocialist.org
BTW: Consumer Confidence Index in the US is lower now than in all the last four recessions since 1978. Kondratieff is proven once more absolutelly right. His model is accurate to a level of almost total pefection. The 70 year cycle is coming to an end. Declining Phase B which began circa 1937, is now almost complete. The US economy is at the threshold of a devastating economic crisis.
MOYHABIN
Well, those views were heard, from Obama's pastor. But of course Obama had to quickly decry them.
What's the difference between the US media and any of the other worlds' media in that regard?
Anonymous said...
BTW: Consumer Confidence Index in the US is lower now than in all the last four recessions since 1978. Kondratieff is proven once more absolutelly right. His model is accurate to a level of almost total pefection. The 70 year cycle is coming to an end. Declining Phase B which began circa 1937, is now almost complete. The US economy is at the threshold of a devastating economic crisis.
MOYHABIN
---------------------------
All hail Moyhabin, economic prognisticator extraordinaire! HAHA
Go ahead, yelp it from the roof tops in the hopes for a self fullfilling prophecy.
I wont even argue, because what is the point? NO ONE CAN PREDICT THE FUTURE! NOT YOU, NOT ME, AND DAMN SURE NOT THAT DEAD ASS OBSCURE SO CALLED ECONOMIST "KONDRACKSDFKLASODFOAISJF" HAHAHHA The future, especially on a macro basis, is utterly and completely unknowable, and I challenge you to prove otherwise.
fleming, "The future, especially on a macro basis, is utterly and completely unknowable.."
Even if it WERE possible to predict the future Moyhabin cannot because he is so emotionally involved, he feel so humiliated, he is so vehemently envious of US and indeed so jealous, resentful, and greedy of all "white man’s” possessions that he split in the middle.
Perhaps his parents didn’t believe in toys when he was a little boy?
" simply not heard" ?? Got Radio ?
Prime morning,and evening drivetime
Amy Goodman ( Radio Queen of the Bush Haters) @ Pacifica Radio
does Blame America First with the best of them.She's championed the Palis for years.She also features lots of Lefty Heart Throbs.Enjoy !
mit
the resident pedophile what is shlomo speaks after administrating his mother with her erotic enema.
How was the 26th of March experience what is shlomo?
Please tell us.
Amazing that there's no American media market for people who want to scold Americans.
Muslims hate everyone and have an oh-poor-me story to go with every hatred. Very little "justification" though, which is in the eye of the beholder.
The only county which we have been "occupying for years" is Puerto Rico. We keep offering to let them go, but they won't have it. We did recently give up the Panama Canal Zone.
The present situations in both Iran and Iraq, put the lie to the "America forces dictators upon us boo hoo" story. They've fought like dogs to have bloodthirsty dictatorships, contrary to the wishes and interests of America, in both countries.
How can the US wage a war on terror, when the US is the world’s biggest perpetrator of state terrorism? Since 1945 the US has launched 72 interventions into other countries. When the US attacks developing countries, to exploit their resources, it is always referred to by the US media as "humanitarian intervention" or "liberation" when in fact its nothing but bloody terrorism.
Right on target Revolution. Besides, US imperialism officially harbors some of the worse terrorists (besides the ones at the White House -whose more appropriate color would be in fact Red- of course)who are being demanded by the government of other nations.
Moyhabin
The future, especially on a macro basis, is utterly and completely unknowable,
--------------
Who is talking about the future? I'm referring to the PRESENT. However, you are wrong about the predicting the future, even at a macro level. I don't have time to explain it to you, so please read Priggogine and Penrose on the subject (the arrow of time)...authors whom, am sure, will be considered also quite "obscure" by you....Hahahahahaha
Only someone whose own mind is clouded by shameful ignorance, can consider Kondratieff "obscure".
Just google is name and check how many pages he has on the internet: hundreds of thousands, if I recall correctly.
Moyhabin
he is so vehemently envious of US and indeed so jealous, resentful, and greedy of all "white man’s” possessions that he split in the middle.
----------------------
Aren't you embarrased of writing such crap? I mean, if my 5 year old boy was writing such pathetic bullshit, I would be disappointed. My 11 year old daughter read some of your stuff -which I handed printed to her as a joke- and after rolling on the floor with laughter when finishing reading your childish characterizations of my persona, she threw the print out into the garbage, and resumed reading Macbeth. Now she fools around with me and pulls my leg calling me "the humorless Comrade"...and I call her back "the cotton head woman" -using your own bigoted terms. I thank you for all the light comedy and parody that can be derived from your drivel!!
Moyhabin
Moyhabin
We must never forget September 11, when thousands were tortured, jailed, and killed during the US-supported coup that overthrew Chile's elected civilian president. As tanks rattled through Santiago streets and people were herded into stadiums by the thousands, on September 11, 1973, Salvador Allende committed suicide in the presidential palace, having refused to renounce his democratic socialist principles.
We must never forget September 11, when thousands were tortured, jailed, and killed during the US-supported coup that overthrew Chile's elected civilian president
---------------------
How could I my dear friend? Relatives and friends of mine died under torture during the first two years of the US sponsored fascist regime in Chile. My country was destroyed and a dark and long period of 17 years of fascist terror ensued. Forgeting is simply not an option.
Moyhabin
Anonymous said...
The future, especially on a macro basis, is utterly and completely unknowable,
--------------
Who is talking about the future? I'm referring to the PRESENT. However, you are wrong about the predicting the future, even at a macro level. I don't have time to explain it to you, so please read Priggogine and Penrose on the subject (the arrow of time)...authors whom, am sure, will be considered also quite "obscure" by you....Hahahahahaha
Only someone whose own mind is clouded by shameful ignorance, can consider Kondratieff "obscure".
Just google is name and check how many pages he has on the internet: hundreds of thousands, if I recall correctly.
Moyhabin
---------------------------
Oh good lord. Is googling now the definitive way to determine obscurity or not? I hadnt realized that american "imperialism" of the internet had now determined whether someone is "obscure or not?" HAHAH
Obscure is actually a compliment for the dude(s). I live eat and breath the financial markets every day. I am well familiar with anyone from Adam Smith and the invisible hand to Markowitz and MPT. Your kondjdnfasdf et al are well known only in internet backwaters and among other fringe groups. They have no presence among mainstream academic or industry groups. Boohhoooo for you Moy.
I will admit the term "clouded by shameful ignorance" is beyond me. It seems you have inserted one two many descriptors. How can one be clouded and shameful of their ignorance at the same time? You have taken things to another dimension moy, congrats! HAHAHAH
Oh indeed Moy, predicting the future on a macro basis is easy? REally???? REALLY?????? If so, isnt it apparent that a greedy capitalist will soon use such ability to their advantage for gaining outsize profts????
Beyond the plain (the sun will come up), accurately predicting the future is a matter mostly of luck, certainly not skill. Give it up Moy.
PS: What happened to those kidnapped soldiers? Did we kidnap their US families so they couldnt tell the truth?? Geez, sometimes this site is just too out there!
Post a Comment