Thursday, September 11, 2008

Public Enemy Number One

Hello all once again! Hope all is well with the regulars. While the den/library is now finished up, I have moved on to the overhaul of the living room. Not as intensive, but still time consuming. It probably is better that was as the loss of Tom Brady for the Patriots was as sad an event as I have seen in some time. Also the stuff going on out there in the financial world is enough to push a man to his bullshit meter limits.

Lehman Getting Assistance it Does Not Want
There have been many sources being "quoted" today with some kind of so called information on what is to become of Lehman brothers (LEH). I saw one report that said JP Morgan took a look and said no thanks, then I saw one that said Goldman was a last resort buyer but that fell out as well. Tonight there is yet another report that Bank of America (BAC) is the next in line. All I can say, in the immortal words of Arnold on Different Strokes is, "What you talking about Willis!?"

BAC is already saddled with the Countryfried bad paper and now personal identification theft disclosure. How in the world is BAC going to take in all the issues with LEH? I have no idea, but I imagine there will be even more taxpayer cash involved. From tonight's story:

Lehman in sale talks as survival questioned: sources
Thursday September 11, 6:22 pm ET
By Patrick M. Fitzgibbons
NEW YORK (Reuters) - Lehman Brothers Holdings Inc was forced into talks about a possible sale after the Wall Street bank's shares plunged more than 40 percent and cast doubts on its survival.
The company and U.S. regulators were in intensive discussions about a number of options, including a complete sale, but Lehman has been resisting U.S. government intervention, a source with direct knowledge of the discussions said.

So LEH is resistant? Let em fail I say. Why is the US government AGAIN in on one of these deals? Just what in the hell is going on here? Not every single bank or brokerage can be a "systemic risk" can they? They must be a systemic risk to fat cat CEO pensions and stock plans, because that is the only group benefiting from this stuff. There is better analysis out there than I can give here quickly, so use the blogroll and comments section to discuss. I am about at wits end with this endless intervention.

Public Enemy Number One
Darth Sidious: "Every single jedi, including your friend Obi Wan Kenobi, is now an enemy of the Republic."
Darth Vader: " I understand my Master."

As if I needed another boiling point tonight, check out the boldness of this call to screw taxpayers as hard a possible without the benefit of dinner first:

Democrats call for foreclosure freeze
Thursday September 11, 5:39 pm ET
By Julie Hirschfeld Davis, Associated Press Writer
Democrats call on Fannie Mae and Freddie Mac, under government control, to halt foreclosures
WASHINGTON (AP) -- Four Democratic senators urged the mortgage companies Fannie Mae and Freddie Mac on Thursday to temporarily freeze foreclosures on loans they hold.
The troubled companies, seized by the government Sunday, should help struggling borrowers swap their mortgages for more affordable loans and stay in their homes, the lawmakers wrote the new chief executives and federal regulator now running Fannie Mae and Freddie Mac.
It was the latest sign of mounting congressional pressure on James Lockhart, the director of the Federal Housing Finance Agency, to ensure that the companies use their clout in the mortgage market to help homeowners caught in the housing crisis.
The senators -- Sherrod Brown of Ohio, Bob Casey of Pennsylvania, Bob Menendez of New Jersey and Charles Schumer of New York -- wrote that the companies should "take whatever actions are necessary" so more families "do not have to suffer the economic and personal disaster of foreclosure."

I would also add Barney Frank to this list as he is a hopeless fool on the whole thing. Now before anyone gets all "see what the democrats are doing" on me know this: this plan will (A)get put forward, and (B) get passed overwhelmingly by both democrats and republicans. So please save the partisan stuff, both sides are whores in an election year.

So now that FNM/FRE are backed by you and me, why the heck not just stop all foreclosures for 90 days? Why not 120? Why not forever? Taxes, carrying costs,etc will be covered by the taxpayer so why not give a bunch of voters a rent free 6-12 months? Sounds just wonder-fing-full to me.

There is nothing to do here. No letters to write, no calls to make, no protests to form. The only thing to do is to go to the polls this November and vote AGAINST every single incumbent in the house and senate and local government unless you are sure they will oppose any more intervention and any more costs being passed to the taxpayer. That's it, that's all. The screwballs on this list are now enemies of the good and right and I will contribute cash money to their opponents whenever they are up for election.

There is something very wrong going on right now and there is significant long term damage being done to the US citizen. Too focused on Sarah Palin's eyeglass style, too enamored with the new 90210 show, too distracted by the high cost of living, the average person is blindly being robbed with nobody to speak for them. We are supposed to have a representative government, but they only represent the banks and the foreign debt holders. Sad times indeed. If you have children I feel bad for you and for them going forward.

Have a good night.


watchtower said...

Hank "Sachwalker": "When I use my bazooka, I'M NOT AFRAID."

"Yoda"ofthefuture: "Oh you will be, you will be."

watchtower said...

My wife called and said to get some gas because she heard some people talking at the skating rink about gas going up because of Ike, so like a lemming I drove to town to top off my truck.
When I came to the station that sucker was full, plus the vehicles were lined up down the road like it was the '73 oil embargo.

Anybody else experiencing this?

How about you G down in FL?

watchtower said...

My brother just emailed me (he lives about 20 miles from me) and said he has seen an unconfirmed report that gas is now $4.80 a gal (was $3.62) and the stations that did have it for $3.75 were a "madhouse".
It's currently 9:11 CST where I live.

Anonymous said...


"I am about at wits end with this endless intervention."

You and me both. We are clearly headed down the road of Socialism which will also lead to a repudiation or monetization of our debt at some point maybe in a few years. Our financial markets at some point are going to collapse as the interventions are starting to become blatant and capital will flee as there is no way to determine risk and possibly the dollar becomes a carry trade currency much like the YEN.

Unfortunately I believe the general public doesn't have a clue.


Anonymous said...

Please ignore the man behind the curtain. There is nothing wrong with your TV set do not adjust it. Resistance is futile.


PS: Gas prices are problems here.

Anonymous said...

Sweet Jesus!

We all just bought AIG! Nice I feel better knowing we all took part in taking care of those guys!


watchtower said...

Hey G
Now we have houses and insurance, might as well get some autos while we are at it.

Remember when you said you where going to post less often and I said "OK, but if the SHTF maybe you could post then".
Well, what can I say besides "it might be time to post something".