Happy Mother's Day!!

Ahhh yes. Mother's Day, 1961.

Republicans Are In Huge Trouble

Back in 2004, over 60% of the folks in this district voted for Bush. Republicans have held this seat since 1995. This year, a Democrat not only won, but won by 8%. AP (05.14.08):

"It's becoming a disturbing trend for Republicans: losing traditional GOP strongholds to Democrats in some hard-fought congressional races.

It happened again Tuesday, as Travis Childers beat Greg Davis in a special election to replace Republican Roger Wicker, who served in the House since 1994 and was appointed to the U.S. Senate to fill the seat vacated by Trent Lott.

Miss. Democrat wins House seat in special election

How much trouble? "Earlier this year, Democrats captured the Illinois district long represented by former Republican Speaker Dennis Hastert, who resigned from Congress. This month, Democrats claimed a seat in Louisiana that Republican Rep. Richard Baker vacated and that the GOP had held since 1974."

Big-assed trouble.

And Another

The Guardian (04.14.08):

"America's fourth largest bank, Wachovia, is raising $7bn (£3.52bn) through emergency fundraising as the subprime mortgage crisis in the US continues to reverberate through the banking sector.

Wachovia is raising the funds through public offerings of common and convertible preference stock after incurring a surprise $350m loss in the first quarter of 2008 compared with $2.3bn in profit a year earlier."

Fourth Largest US Bank Resorts To Emergency Fundraising

A surprise loss of a third of a billion dollars? Whoopsie!!

Not my fault. "Wachovia's chief executive, Ken Thompson, blamed the 'precipitous decline in housing market conditions and unprecedented changes in consumer behaviour' for the figures. The group bought Golden West Financial Corp, a specialist in these adjustable rate mortgages, just before the home loan market plunged."

Otherwise it wouldn't have been one of the worst deals in the history of banking. The Australian (04.14.08):

"Wachovia's current problems stem largely from its $25.5 billion purchase of Golden West nearly two years ago.

The bank’s executives initially trumpeted the deal as an ideal way to grab a foothold in California, where Golden West was based.

Wachovia To Get $8bn Capital Infusion

"While the heart of Golden West's business was non-traditional mortgages, Mr Thompson assured jittery investors that its tough underwriting standards and decades of experience meant that the company was well positioned to weather an anticipated slowdown in housing markets."

Then again.

Poor Alberto

Guess servile ass-kissing doesn't get you as far as it used to. NYTimes (04.13.08):

"Alberto R. Gonzales, like many others recently unemployed, has discovered how difficult it can be to find a new job. Mr. Gonzales, the former attorney general, who was forced to resign last year, has been unable to interest law firms in adding his name to their roster, Washington lawyers and his associates said in recent interviews.

He has, through friends, put out inquiries, they said, and has not found any takers."

In Job Search, Gonzales Sees No Takers

Ouch. This hurts. "'Maybe the passage of time will provide some opportunity for him,' said one Washington lawyer who was aware of an inquiry to his firm from a Gonzales associate."

According to that lawyer ("who asked his name not be used because the situation being described was uncomfortable for Mr. Gonzales"), Alberto's inquiry wasn't "rebuffed" it was just "not taken up". As in they ignored him.

In the meantime, Alberto is making a living on the lecture circuit, though not without some controversy. "His first speech at the University of Florida last November was interrupted by protesters dressed as detainees."

Another Loyal Bushie

An idiot wind. Blowing every time he moved his mouth. Washington Post (04.13.08), via Calculated Risk:

"In late 2006, as economists warned of an imminent housing market collapse, housing Secretary Alphonso Jackson repeatedly insisted that the mounting wave of mortgage failures was a short-term 'correction.'

He pushed for legislation that would make it easier for federally backed lenders to make mortgage loans to risky borrowers who put less money down. He issued a rule that was criticized by law enforcement authorities because it could increase the difficulty of detecting and proving mortgage fraud.

HUD Chief Inattentive To Crisis, Critics Say

"As Jackson leaves office this week, much of the attention on his tenure has been focused on investigations into whether his agency directed housing contracts to his friends and political allies."

Come now! Alphonso wasn't just an obsequiously venal ideologue. He was also a first-class moron. "(C)ritics say an equally significant legacy of his four years as the nation's top housing officer was gross inattention to the looming housing crisis."

During Alphonso's tenure, "foreclosures for loans insured by HUD's Federal Housing Administration (FHA) have risen and default rates have hit a record high."

"All the while, Jackson enjoyed a chef and a full-time security detail that trailed him to Washington social events. His office launched a new $7 million auditorium and cafeteria at HUD's headquarters, money that some within the agency believed should have been directed toward housing for the poor."

He also charged you taxpayers $100,000 "to obtain oil portraits of Jackson and four other HUD secretaries".

And You Thought They Were Smart

Our Jolly Bankers in action. How to be a moron and make millions. Bloomberg (04.13.08):

"Citigroup Inc. and Merrill Lynch & Co. will reveal at least $15 billion more of subprime mortgage writedowns this week, the Sunday Times of London reported, citing analysts it didn't identify.

Citigroup will have $10 billion of writedowns, taking its first-quarter loss to about $3 billion, the newspaper said."

Citigroup, Merrill May Post $15 Billion Writedowns, Times Says

"Some analysts say the Citigroup writedowns may stretch to $12 billion, it said. Merrill may have a $5 billion writedown, taking it to a $2.7 billion loss, the report said."

The solution? Stick it to your best customers. NYTimes (04.13.08), via BigPicture:

"It was the nation’s lending institutions and mortgage originators that got us into this credit mess, but it is consumers, taxpayers and those companies’ shareholders who will end up shouldering most of the costs.

The latest example of this is in the mass freezing of home equity lines of credit going on across the country."

You Thought You Had an Equity Line

"Reeling from losses on their wretched loan decisions of recent years, lenders are preventing borrowers with pristine credit and significant equity in their homes from tapping into credit lines that they paid dearly to secure."

How do these guys find their way home at night?

Try 'Em All

Each and every last one of these bastards. ABCNews (04.11.08):

"President Bush says he knew his top national security advisers discussed and approved specific details about how high-value al Qaeda suspects would be interrogated by the Central Intelligence Agency, according to an exclusive interview with ABC News Friday.

'Well, we started to connect the dots in order to protect the American people.' Bush told ABC News White House correspondent Martha Raddatz. 'And yes, I'm aware our national security team met on this issue. And I approved.'"

Bush Aware of Advisers' Interrogation Talks

Get A Job

There is a big difference between the two. NYTimes (04.12.08), via BigPicture:

"The unemployment rate is low. The jobless rate is high.

Those two seemingly contradictory statements are especially true for American men in what should be the prime of their working lives."

Many More Are Jobless Than Are Unemployed

"Those facts may help to explain the stark pessimism of Americans about the economy, and shed some light on the rise of illegal immigration as a political issue."

The unemployment rate measures "people without jobs who are actively looking for work". The jobless rate measures "the proportion of people without jobs."

Crabasses

The Bush Boom seems to have made folks a bit ornery. Bloomberg (04.11.08):

"Confidence among U.S. consumers fell to a 26-year low after employers fired workers and gasoline prices surged, threatening the spending that accounts for more than two thirds of the economy.

The Reuters/University of Michigan preliminary index of consumer sentiment decreased to 63.2 this month, the weakest level since 1982, when the jobless rate approached 11 percent, the worst since the Great Depression."

U.S. Economy: Consumer Sentiment Drops to 26-Year Low

Don't worry. It'll get better. Someday.

Bastards

War crimes. Try 'em all. ABCNews (04.09.08), via Eschaton:

"In dozens of top-secret talks and meetings in the White House, the most senior Bush administration officials discussed and approved specific details of how high-value al Qaeda suspects would be interrogated by the Central Intelligence Agency, sources tell ABC News.

The so-called Principals who participated in the meetings also approved the use of 'combined' interrogation techniques -- using different techniques during interrogations, instead of using one method at a time -- on terrorist suspects who proved difficult to break, sources said.

Sources: Top Bush Advisors Approved 'Enhanced Interrogation'

"Highly placed sources said a handful of top advisers signed off on how the CIA would interrogate top al Qaeda suspects -- whether they would be slapped, pushed, deprived of sleep or subjected to simulated drowning, called waterboarding."

"The high-level discussions about these 'enhanced interrogation techniques' were so detailed, these sources said, some of the interrogation sessions were almost choreographed -- down to the number of times CIA agents could use a specific tactic."

"The advisers were members of the National Security Council's Principals Committee, a select group of senior officials who met frequently to advise President Bush on issues of national security policy."

"At the time, the Principals Committee included Vice President Cheney, former National Security Advisor Condoleezza Rice, Defense Secretary Donald Rumsfeld and Secretary of State Colin Powell, as well as CIA Director George Tenet and Attorney General John Ashcroft."

"As the national security adviser, Rice chaired the meetings, which took place in the White House Situation Room and were typically attended by most of the principals or their deputies."

Long and short? These fucks were getting off on this. And our gal Condi chaired the meetings.

Bet she's a very stern disciplinarian.

All Your Bribes Are Belong To Us

Cut a check and walk away? Helluva deal, if you ask us. NYTimes (04.09.08):

"In a major shift of policy, the Justice Department, once known for taking down giant corporations, including the accounting firm Arthur Andersen, has put off prosecuting more than 50 companies suspected of wrongdoing over the last three years.

Instead, many companies, from boutique outfits to immense corporations like American Express, have avoided the cost and stigma of defending themselves against criminal charges with a so-called deferred prosecution agreement, which allows the government to collect fines and appoint an outside monitor to impose internal reforms without going through a trial."

In Justice Shift, Corporate Deals Replace Trials

Generally what happens is the company agrees to admit it was naughty and pay a fine, and the Feds agree to dismiss all charges in a couple, three years. The deal is secret so no one knows. You get a friend of a friend appointed as a monitor, and you're done.

Could there be a problem with this? "Some lawyers suggest that companies may be willing to take more risks because they know that, if they are caught, the chances of getting a deferred prosecution are good. 'Some companies may bear the risk' of legally questionable business practices if they believe they can cut a deal to defer their prosecution indefinitely, [said Vikramaditya S. Khanna, law prof at U Michigan]."

Really? Oh come now!

Mr. Bubble

Reality is catching up to old Alan. LATimes (04.09.08):

"Alan Greenspan retired in January 2006 as one of history's most lauded Federal Reserve Board chairmen, the subject of accolades that stopped just short of deification.

But just as markets have a way of overshooting both on the way up and on the way down, the needle on Greenspan's Fed tenure has swung from adulation to denunciation in a matter of months.

Fed maestro hearing sour notes

"With the economy now sputtering, Greenspan has increasingly been tagged as 'Mr. Bubble' -- the ideologue whose loose-money policies and lax regulation are blamed for the continuing real estate collapse, the near-meltdown of the mortgage industry and the toppling of some Wall Street giants."

Hello Kitty

Cat Found, via Eschaton.

We're In The Money

Well maybe not everyone. AP (04.03.08):

"The number of new people signing up for unemployment benefits last week shot up to the highest level in more than two years, fresh evidence of the damage to a national economy clobbered by housing, credit and financial crises.

The Labor Department reported Thursday that new applications filed for unemployment insurance jumped by a seasonally adjusted 38,000 to 407,000 for the week ending March 29."

Jobless Claims Hit 2-Year High

"The increase left claims at their highest point since Sept. 17, 2005."

For what it's worth, as of February, 2008, the average hourly earnings of production and nonsupervisory workers was (in constant 1982 dollars) $8.28. Which is exactly what it was in October, 2003.

Why does George Soros hate America? Bloomberg (04.03.08):

"Billionaire George Soros called the current financial crisis the worst since the Great Depression and said markets will fall more this year after a brief rebound."

Soros Sees Additional Market Declines After Temporary Reprieve

Why might George be worried? "Credit default swaps -- a way to bet on the creditworthiness of a company -- may be the next crisis area because the market is unregulated, and it's impossible to know whether counterparties can meet their obligations in the event of a bond default. The market has a notional value of about $45 trillion -- or about half the total wealth of U.S. households."

And if that shitpile slides South folks, we're all fucked.

Oh My

What the hell? Something like this can really mess a guy up. Fredericksburg.com (03.26.08):

"A man who claims that he was molested by Bigfoot as a child was ordered to serve 20 years in prison yesterday for his own molestation-related activities.

Gene R. Morrill, 57, of New Ipswich, N.H., had previously pleaded guilty in Stafford Circuit Court to 20 charges stemming from his efforts to solicit 13-year-old boys over the Internet."

Molester claims he was victim of Bigfoot

We Know Nothing

WSJ (03.20.08):

"The collapse of Bear Stearns Cos. dealt a severe blow to investors, from big names like billionaire Joseph Lewis to thousands of employees of the brokerage firm.

But there's one group trying to contain their joy amid all the gloom on Wall Street: Investors who placed big bets against Bear Stearns.

Some Traders Win Big

"Large hedge funds -- including Harbinger Capital Partners, Greenlight Capital, Tremblant Capital Group and Paulson & Co. -- made millions of dollars as Bear Stearns's shares tumbled and various bearish positions rose in value, according to securities filings and people close to the firms."

Reuters (03.20.08):

"The Securities and Exchange Commission is investigating the events leading up to the collapse of Bear Stearns, specifically a surge in options contracts betting that the investment bank's share price would fall sharply, according to the Wall Street Journal

Citing people familiar with the matter, the paper reported the SEC probe focuses on a surge last week in 'put' options that came days before the firm's proposed sale to J.P. Morgan Chase & Co. for stock now valued at about $278.5 million, or $2.32 a share."

SEC probing options activity in Bear Stearns

Merely a coincidence, no doubt.

Jobs, Jobs, Jobs

Man, if it wasn't for bad news. AP (03.20.08):

"The number of newly laid off workers filing for unemployment benefits rose last week to the highest level in nearly two months, providing more evidence that the weak economy is having an adverse impact on the labor market.

The Labor Department said Thursday that applications for jobless benefits totaled 378,000 last week.

Jobless Claims Jump by 22,000

"That was an increase of 22,000 from the previous week and was a far bigger jump than had been expected."

Bloomberg (03.20.08):

"The index of U.S. leading economic indicators fell for a fifth month in February, reflecting mounting signs that a recession has begun, economists said before a report today."

Leading Economic Indicators in U.S. Probably Fell

George Herbert Hoover Bush.

At The Bear Stearns' Building This Morning

Ha, ha. Via Calculated Risk.