Barry Ritholtz: This corruption is not an accident. It is the product of years of very patient work.

from economonitor, originally published in the big picture...

We live in an era of defective government.

This corruption is not an accident. It is the product of years of very patient work. It has been brought about through expensive lobbying, relentless propaganda, agnotology. You can see it in this election cycle, where 196 Americans — 0.000063% of the population — have given more than 80% of Super PAC dollars.

Is it democracy or plutocracy when less than 200 people drive election spending in a nation of 300 million?

Previously, we have pointed out how brazen the lobbying has been to actually cut the SEC enforcement budget. This has created an agency that is defective by design. Take a guess who loses in the battle between you, the individual taxpayer versus the corporation.

Wall Street has taken advantage of the crisis and morphed into a cartel. The tragedy is the only entity that is large and powerful enough to offset their wealth and power are national governments. Yet where ever we look, we see that government has been corrupted and rendered neutered by corporations:

-The Federal Reserve Zero Interest Rate policy is a balm to banks whose balance sheets still have so much bad real estate exposure that higher rates will cause corporate bankruptcy;

-The SEC brings minor insider trading cases while enormous financial crimes go unpunished;

-The Supreme Court has granted natural rights to corporations — rights previously reserved for living and breathing Human Beings;

-The CFTC no longer does the sort of daily audits that can prevent fraud like MF Global and PeregrineFG;-The US Attorney’s office has been captured by the Treasury department, which in turn was captured by large Banks long ago;

-Laws that used to be written by Congressional staffers and academics are now drafted by the regulated industry itself;

-The Attorneys General offices of the states are too timid to sue these same banks for obvious perjury;-Tax loopholes allow wealthy companies to pay very little taxes relative to profits;

-Copyrights that should be in the public domain are retained by companies who have changed intellectual property laws by corrupting legislators.

-The Minerals Management Service (MMS) gives away oil leases and mineral rights for pennies on the dollar.-Money has somehow been equated to speech, turning the idea of “One Person, One vote” on its head.

To function properly, all of these agencies need budgets, a career path for a motivated staff. Yet most of that has been gutted.

Take a look at Neil Barofsky’s book Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street. He describes a Federal prosecutorial system that has been systematically disassembled. There are few career lawyers with the know how, budget and balls to go after the big fish. There is little institutional memory.

We see  this throughout government, a product of even a debate that has been corrupted. The framework is not “How can me make government more effective, efficient responsive?“  Instead, the debate has degenerated into “How can we get government out of the way? How can we make taxes lower?”

Its not that I want big government, I want effective regulations. Its not that I want to pay higher taxes, I want efficient government that can accomplish things. I don’t want to live in a corporatocracy, I want to live in a nation where there is a Rule of Law.

The only way to make this happen is to change the campaign finance laws. Without that, we are a plutocracy governed by lobbyists.

Hence:  Its the bankers world, we just live in it . . .

so, what the fuck are we going to do about it...?

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Another Euro Zone country falls to its knees

from the ft...

Cyprus requests eurozone bailout

Cyprus has become the latest eurozone country to seek a bailout amid mounting economic problems and fresh challenges for its banks after a credit rating agency downgrade.

Bowing to eurozone pressure, the government of President Demetris Christofias said it had asked for help, just days before a deadline to recapitalise one of the country’s largest banks.

Cyprus is seeking financial help from the European Financial Stability Facility or its successor, the European Stability Mechanism, a government statement said on Monday. “The purpose of the required assistance is to contain the risks to the Cypriot economy, notably those arising from the negative spillover effects through its financial sector, due to its large exposure in the Greek economy,” the government said.

they're dropping like flies...

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Why bail out the banks? As my grandma used to say, it's like bringing coals to Newcastle*.

why not bail out the people who, through no fault of their own, have gotten screwed and are in the most pain...

Cenk Uygur: Iceland Shows Bailing out Middle Class Works, Not Bailing Out Banks

On The Young Turks yesterday, Cenk Uygur spoke about two different approaches to the economic bailout.

There's the US m.o., where we gave "everything to the banks, and nothing to the homeowners" and are, predictably, still struggling. Then there's the divergent example of Iceland, where initial efforts at complete deregulation failed and the government switched course by indicting those who had "caused the mess" and bailing out the middle class instead.

Take a look at what they did, and how it worked.

*Coals to Newcastle - Something brought or sent to a place where it is already plentiful; it is a reference to the English town of Newcastle upon Tyne, historically a major coal exporter.

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The 1% is a social darwinist force bent on destroying the essential social contract

i've said since i started posting on this blog back in 2005 that there is nothing our 1% desires more fervently than to drive a stake through the heart of any explicit or implied social contract... they are truly the champions of the "you're on your own" society, a dystopian, randian, survivalist nightmare that would turn a blind eye to any effort to support the common good...

robert scheer equates the 1% with the republicans, an equivalency i believe is less than accurate, particularly given the lack of any discernible daylight between the repubs and the dems...

It is with chilling certainty that one can predict that a single Romney appointee to the Supreme Court would seal the coup of the 1 percent that already is well on its way toward purchasing the nation’s political soul. Romney is the quintessential Citizens United super PAC candidate, a man who has turned avarice into virtue and comes to us now as a once-moderate politician transformed into the ultimate prophet of imperial hubris, blaming everyone from the Chinese to laid-off American workers for our problems. Everyone, that is, except the Wall Street-dominated GOP, which midwifed the Great Recession under George W. Bush and now seeks to blame Obama for the enormous deficit spawned by the party’s wanton behavior.

[...]

[T]he Republicans refuse to take ownership of the collapse resulting from their longstanding advocacy of radical financial deregulation that led to the derivatives bubble, hundreds of trillions of dollars of toxic junk, now a permanent, nightmarish feature of the world’s economy. Romney, who made his fortune through such financial finagling, even has the effrontery to call for more of the same and blame Obama’s tepid efforts at establishing some sane speed limits for the financial highway as a cause of our ongoing crisis.

scheer's conclusion is that we have no choice but to re-elect obama...

The Republicans are a sick joke, and their narrow ideological stupidity has left rational voters no choice in the coming presidential election but Barack Obama.

it was good to hear obama use the term "social darwinism" in his speech the other day... it's about damn time somebody in our national leadership dared to say it... unfortunately, however, even though i've used the term a million times myself, it's somewhat misapplied... darwinian theory claims that only the fittest survive, but in our current context, the 1% is massively underwritten by national policies designed to benefit them and their interests, the most egregious example being the massive bankster bailout...

predictably, obama's use of the term has spawned controversy...

the huffpo takes issue with obama's use of social darwinism...

For language expert Kathleen Hall Jamieson, social Darwinism seems like a risky term to use for political ammunition.

She says most people are familiar with Charles Darwin and his theory of evolution by natural selection – survival of the fittest.

But Jamieson, a political communication authority at the University of Pennsylvania's Annenberg Center, explains that social Darwinism is a concept, an extension of Darwinism, that essentially says that those who are innately superior, often biologically superior, are advantaged in the conflict among or between groups.

She doesn't think that is what Obama is suggesting when he uses the term. Instead, what he is probably trying to convey is that he thinks Republicans subscribe to a theory that each person is on his own – no help from others, no government help.

The term is loaded with all sorts of negative historical associations. It has ties in the past to the rationalization of inequality, says Jamieson, as well as to the eugenics movement and the idea that those who are unfit should not be allowed to propagate.

And that's probably not what the president intends to suggest.

jonathan chait has a different take...

I happen to think "social Darwinist" captures the prevailing Republican philosophy pretty well. The point of the label, created by historian Richard Hoftsadter, is that a species of laissez-faire economics treated the market the way Darwinians treat natural selection — as the sole natural and correct mechanism for distributing rewards. You do not have to venture into the Republican fever swamps to find evidence of this belief. Greg Mankiw, an economist, adviser to Mitt Romney, and relative moderate within the party, has written:

People should get what they deserve. A person who contributes more to society deserves a higher income that reflects those greater contributions. Society permits him that higher income not just to incentivize him, as it does according to utilitarian theory, but because that income is rightfully his.

Now, I suspect that right-wingers object to the term "social Darwinist" because it can be understood to imply a more literal application of Darwinism — that the poor should be killed off so they cannot reproduce. Almost none of them would take the theory quite so far. But the more symbolic application of Darwinism to the market, as a morally optimal tool for allocating rewards, seems appropriate. Republicans may prefer a more positive-sounding label, but in politics you don't always get to pick your label.

the biggest piece of work that needs to be done in this country is for all of us to wake up to the fact that we are ALL in this goddam boat together and that it takes ALL of us to make it work... and that realization will never come about as long as the 1% insists they are at the top of the economic ladder as a result of their own inherent self-worth... such a misbegotten notion is at the fetid, rotting core of what we so proudly extol as our "capitalist free market" while completely ignoring the dynamics of a system specifically built to empower the rich...

p.s. it's interesting to see both commentators eschew eugenics... believe me, even though - thankfully - it's not part of the national dialogue, for those who are convinced that they have achieved their lofty status in society as a result of their superior genetic attributes, the concept of eugenics is only a small step away...

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Another goddam $10B bailout - American Airlines wants to hand its pensions over to the PBGC

on december 1, i predicted this...

American Airlines will use its bankruptcy as a $10B bailout by kicking its pensions to taxpayers

based on this...

Taxpayers May Have To Pay AMR Pension Bill

based on the precedent set by united airlines in 2005 when i posted this...

United defaults on pension plans; CEO buys $4.5M condo

so now we have this...

AMR To Seek End To Worker Pensions - PBGC

The US Pension Benefit Guaranty Corporation, which has responsibility for insuring certain benefits under private defined benefit pension plans, said on Tuesday it believes American Airlines will seek to terminate employee pensions in bankruptcy.

The agency said it filed a USD$92 million lien against American parent AMR for the balance of unpaid pension plan contributions. It added that the lien was applied to AMR assets outside the United States, mainly in Latin America.

[...]

The US Pension Benefit Guaranty Corporation, which has responsibility for insuring certain benefits under private defined benefit pension plans, said on Tuesday it believes American Airlines will seek to terminate employee pensions in bankruptcy.

The agency said it filed a USD$92 million lien against American parent AMR for the balance of unpaid pension plan contributions. It added that the lien was applied to AMR assets outside the United States, mainly in Latin America.

make no mistake... what american airlines is asking for is a $10B bailout... bankruptcy is a very convenient way for companies to void their labor contracts, neuter their unions and hand off their pension liabilities to the government taxpayers hapless citizens us suckers to pick up the tab... privatizing profits, socializing losses... it's the american way...

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Whining U.S. banks make me physically ill

great gobs of steaming bullshit... the banks are one of the prime culprits in why the world economy is in the mess it is in right now and, despite the trillions of dollars that the u.s. and the eu have tossed their way, have continued to reward themselves without any regard for the general welfare of the people they were chartered to serve... now, they're saying if they don't get their way, it will only delay any recovery... they can all go directly to hell...

Banks warn rule change will hurt recovery

US banks fear that any recovery in the US housing market will be further delayed as a result of moves to remove credit ratings from American regulations, which will boost banks’ capital requirements by billions of dollars.

Bankers have until Friday to respond to a proposal by the Federal Reserve and other regulators that would increase the “risk weights” on securitised assets, driving up sharply the equity capital that banks are forced to set against them.

screw 'em... they haven't done anything for anybody but themselves...

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Betrayal by the “good guys” for whom I have ended up voting has become the norm

robert scheer...

I’ll admit it: Listening to Barack Obama, I am ready to enlist in his campaign against the feed-the-rich Republicans ... until I recall that I once responded in the same way to Bill Clinton’s faux populism. And then I get angry because betrayal by the “good guys” for whom I have ended up voting has become the norm.

Yes, betrayal, because if Obama meant what he said in Tuesday’s State of the Union address about holding the financial industry responsible for its scams, why did he appoint the old Clinton crowd that had legalized those scams to the top economic posts in his administration? Why did he hire Timothy Geithner, who has turned the Treasury Department into a concierge service for Wall Street tycoons?

Why hasn’t he pushed for a restoration of the Glass-Steagall Act, which Clinton’s deregulation reversed? Does the president really believe that the Dodd-Frank slap-on-the-wrist sellout represents “new rules to hold Wall Street accountable, so a crisis like this never happens again”? Can he name one single too-big-to-fail banking monstrosity that has been reduced in size on his watch instead of encouraged to grow ever larger by Treasury and Fed bailouts and interest-free money?

When Obama declared Tuesday evening “no American company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas,” wasn’t he aware that Jeffrey Immelt, the man he appointed to head his jobs council, is the most egregious offender? Immelt, the CEO of GE, heads a company with most of its workers employed in foreign countries, a corporation that makes 82 percent of its profit abroad and has paid no U.S. taxes in the past three years.

scheer goes on to list more grievances but, imho, is seriously remiss in not citing obama's disgraceful record in foreign policy and civil liberties...

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$29 TRILLION is the Federal Reserve bailout total...!

when we get into the trillions of dollars, we lose all comprehension of scale... one trillion is too vast a number to wrap our heads around, god only knows, but TWENTY-NINE...?

barry ritholtz...

There is a fascinating new study coming out of the Levy Economics Institute of Bard College. Its titled “$29,000,000,000,000: A Detailed Look at the Fed’s Bail-out by Funding Facility and Recipient” by James Felkerson. The study looks at the lending, guarantees, facilities and spending of the Federal Reserve.

The researchers took all of the individual transactions across all facilities created to deal with the crisis, to figure out how much the Fed committed as a response to the crisis. This includes direct lending, asset purchases and all other assistance. (It does not include indirect costs such as rising price of goods due to inflation, weak dollar, etc.)

The net total? As of November 10, 2011, it was $29,616.4 billion dollars — (or 29 and a half trillion, if you prefer that nomenclature). Three facilities—CBLS, PDCF, and TAF— are responsible for the lion’s share — 71.1% of all Federal Reserve assistance ($22,826.8 billion).

here's the breakdown...



here's a relatively understandable explanation for the method used to come up with the $29T total...

l. randall wray writing in economonitor...

Think about it this way. A half dozen drunken sailors are at the bar, and the bartender refills their shot glasses with whiskey each time a drink is taken. At any instant, the bar-keep has committed only six ounces of booze. That is a useful measure of whiskey outstanding. But it is not useful for telling us how much the drunks drank. Bernanke would like us to believe that if the Fed newly lent a trillion bucks every day for 3 years to all our drunken bankers that we should total that as only a trillion greenbacks committed. Yes, that provides some useful information but it does not really measure the necessary intervention by the Fed into financial markets to save Wall Street.

And that leads to the final way to measure the Fed’s commitments to propping up our drunks on Wall Street: add up every single damned loan, guarantee and asset purchase the Fed made to benefit banks, banksters, real Housewives on Wall Street, fraudsters, and their cousins, aunts and uncles. This gives us the cumulative Fed commitments.

The final important consideration is to separate “normal” Fed actions from the “extraordinary” or “emergency” interventions undertaken because of the crisis. That is easier than it sounds. After the crisis began, the Fed created a large alphabet soup of special facilities designed to deal with the crisis. We can thus take each facility and calculate the three measures of the Fed’s commitments for each, then sum up for all the special facilities.

And that is precisely what Nicola Matthews and James Felkerson have done. They are PhD students at the University of Missouri-Kansas City, working on a Ford Foundation grant under my direction, titled “A Research And Policy Dialogue Project On Improving Governance Of The Government Safety Net In Financial Crisis”. To my knowledge it is the most complete and accurate accounting of the Fed’s bail-out. Their results will be reported in a series of Working Papers at the Levy Economics Institute (www.levy.org). The first one will be posted soon, and is titled $29,000,000,000,000: A Detailed Look at the Fed’s Bail-out by Funding Facility and Recipient. Watch for it!

to say that i'm speechless would be a gross understatement...

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Wall Street has raked in more profits in just the last 30 months then they did in the entire eight years leading up to the 2008 financial crisis

thom hartmann...

Do you know who Elizabeth Duke is? How about Donald Kohn or Kevin Warsh? No? Well - you should. Because while Congress was debating back in 2008 whether or not to bailout banksters with a $700 billion blank check - these guys and girls were just doing it. They were funneling $7.7 trillion to Wall Street under the table - without one constituent phone call - without worrying about one election - without having to give one explanation.

They were able to do that because they're members of the Federal Reserve Board of Governors - a group of people who are not voted into office, but have the power to completely dictate monetary policy in America. They are not politicians - they're technocrats - they're bankers and financial experts. Technocrats aren't interested in democracy - it takes too long, and often the interests of the majority of voters don't quite line up with the interests of the minority of bankers and foreign investors. Or - to put it in today's terms - the interests of the 99 percent rarely line up with the interests of the 1 percent. That's why - back in 2008 - the technocrats at the Fed weren't interested in waiting for Congress - with all of its open debate and constituent services - to bail out the banks - they just went ahead and did it themselves. According to documents obtained by Bloomberg News - in 2009 - the Fed dished out $7.7 trillion in no-strings-attached, super-low interest loans to Wall Street's biggest players.

That's $7.7 trillion!

That's more than half of the total value of EVERYTHING - every single thing produced in America - that same year. $7.7 TRILLION out the door - with no one bothering to inform the electorate about it until now. And since they were super-low interest loans - banks made enormous profits off of them. Six of the nation's biggest banks - like Morgan Stanley and Bank of America - pocketed a not-too-shabby $13 billion in undisclosed profits, thanks to the deal with the technocrats at the Fed. So today - thanks to a decision made by technocrats, and not politicians - the too-big-to-fail banks are even bigger, and Wall Street has raked in more profits in just the last 30 months then they did in the entire eight years leading up to the 2008 financial crisis.

and guess what ol' thom advocates as the remedy...? gee... it's the same remedy called for by ron paul...!

Only when the Federal Reserve becomes an instrument of the people to calm the mood swings of the market - and not a piggy bank for transnational banking corporations - can we really protect ourselves from a technocratic takeover in the future. And the way to do it is pretty straightforward - it was Alexander Hamilton's idea back in the George Washington administration. Have the central bank owned by the US government and run by the Treasury Department, so all the profits from banking go directly into the Treasury and you and I pay less in taxes while the banksters on Wall Street can find a job at Wal-Mart.

The good people of North Dakota did just this, back in 1919, established something very much like this - the Bank of North Dakota - and it's kept the state in the black, and kept its farmers, manufacturers and students protected from the predations of New York banksters for nearly a century. It's time for every state to charter their own state bank, just like North Dakota did, and for the Treasury Department to either buy the Fed from the for-profit banks that own it, ohttp://www.blogger.com/img/blank.gifr simply nationalize it.

Only when we get control of our money out of the hands of sociopathic banksters will our democracy begin to function for the people instead of just for the banksters.

it's interesting to see thom turning up on rt... we can be reasonably sure we're not going to see him turning up on msnbc any time soon...

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American Airlines will use its bankruptcy as a $10B bailout by kicking its pensions to taxpayers

it looks like amr (parent company of american airlines) is going to use the leverage of bankruptcy to kick its pensions over to the pbgc taxpayers just like united airlines did in 2005...

Taxpayers May Have To Pay AMR Pension Bill

US firms or taxpayers could end up paying for the bankruptcy of American Airlines if the carrier abandons its pension plans as part of a restructuring drive, US pension insurers told the online edition of the Financial Times.

Taking on the airline's pension plans would widen the Pension Benefit Guaranty Corporation's (PBGC) financial deficit and could require the insurer to charge higher premiums, director Joshua Gotbaum, head of the federal agency that insures private pensions, told the newspaper.

Tom Horton, the new chief executive of American Airlines and its parent company AMR said the fact the company had filed for Chapter 11 bankruptcy protection did not mean its pension plans would definitely move to the PBGC, but he indicated it was a real possibility, according to the article.

"The pensions in particular are very expensive, it is a very big part of our cost disadvantage relative to the rest of the industry. And so, given our plans to reduce costs to a more sustainable level, we are going to have to look at those costs," he is quoted as saying.

The PBGC said on Tuesday that American's four traditional pension plans covering 130,000 workers and retirees collectively report USD$8.3 billion in assets to cover roughly USD$18.5 billion in promised benefits.

so far, i haven't seen any stories putting this in the context of a "bailout" although that's certainly what it would be...

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The size of the IMF resources are absolutely not sufficient to bailout Europe which is a slow-motion train wreck

nouriel roubini blog...

Roubini said that the IMF does not have enough resources to save Europe and that now the contagion is spreading to the rest of Europe , the size of the IMF resources are absolutely not sufficient to bailout Europe , Italy and Spain alone are in 3 trillion euro public debt problem equivalent to 4 trillion US Dollars .... money alone is not going to resolve the problems in Europe Roubini explains , Europe is a slow motion train wreck he added ... "The contagion has now gone viral, cross Atlantic and global." Roubini says.

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We're suckers for the lesser evil and choose to forget just how much Bill Clinton is responsible for our current mess

robert scheer delivers a teach-in at occupy la...



scheer doesn't shy away from putting a good share of the blame where it belongs, right at the feet of bill clinton...

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Disappointing - Greece cancels referendum

so much for democracy...

George Papandreou, Greek prime minister, has scrapped a controversial plan to hold a referendum on the heavily indebted country’s membership of the European Union and eurozone.

no doubt somebody put the metaphorical gun to his head...

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e.e. cummings: There is some shit I will not eat

a perfect quote for the greek situation...

robert kuttner...

Bravo Papandreou!

[...]

I am reminded of a poem by e.e. cummings about a conscientious objector named Olaf, which includes the epic lyric, “There is some shit I will not eat.”This, essentially, is what Prime Minister Papandreou is saying. If you want the Greeks to continue the belt-tightening, you cannot alter the terms of the deal by stealth.By involving his countrymen in the decision, Papandreou turns himself from agent of foreign austerity demands into a leader of the Greek people. The referendum will be sometime this winter, after the true terms of the deal are clear.Polls taken over the weekend show that some 59 percent of Greeks oppose what appear to be the terms of the latest deal, but over 72 percent want Greece to stay in the eurozone.If the International Monetary Fund, European Union, and European Central Bank are as good as their word and hold the bankers to the terms that were negotiated, we can expect Papandreou to urge Greek citizens to ratify the bargain. If, on the other hand, political and financial elites try to wriggle out, then the Greek people can draw their own conclusions—and we will all be in the uncharted waters of a likely default by a eurozone country.In the meantime, Papandreou is showing real leadership. It is about time someone stood up against the banker-led austerity consensus.

regardless of papandreou's past behavior, putting this critical decision in the hands of the greek people is the right thing to do... people in the u.s. certainly never got that opportunity with the bankster bailout in 2008...

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Nouriel Roubini: any financial engineering in Europe is just not sustainable, the economic data coming from Europe are just horrible

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The more social and economic distress a culture goes through, the greater the delusional thinking

james howard kunstler in an rt interview today...

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Another goddam bailout

worth posting in full...

david dayen posting at firedoglake...

Bank of America announced a way for them to make it look like they made a $6.2 billion profit in the last quarter. The “profit” came mostly from an accounting trick and the sale of their stake in a Chinese bank, part of their downsizing strategy. But they had lower revenue and income in their credit card, real estate and investment banking businesses, which is pretty much their entire business. If you add up the accounting gains totaling $6.2 billion and the net on the sale of the bank, you’d see that the bank lost $1.4 billion last quarter.

The market shrugged off the gimmicks, and at this point BofA is up 10% on the day. But I think that actually has a lot more to do with this:

Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation.

The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.

Three years after taxpayers rescued some of the biggest U.S. lenders, regulators are grappling with how to protect FDIC- insured bank accounts from risks generated by investment-banking operations. Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms.

“The concern is that there is always an enormous temptation to dump the losers on the insured institution,” said William Black, professor of economics and law at the University of Missouri-Kansas City and a former bank regulator. “We should have fairly tight restrictions on that.”

This has been described as another bailout, and it’s not hard to see why. The derivatives go into the insured institution, protecting the counter-parties, and they would be paid off in the event of a failure. Notice that the counter-parties themselves are managing the process, requesting that their bets get implicit government backing. The notional value on these derivatives trades is $75 trillion, with a T. This includes their European derivatives exposure. And according to Bloomberg, JPMorgan Chase has already done this.

When the FDIC is screaming bloody murder and the Federal Reserve reassures that an action is perfectly legitimate and should cause no concern, watch your wallet.

i am so utterly sick of money being thrown at goddam, worthless, too-big-to-fail banks... it's enough to gag a maggot... this is the shit the ows folks (and me) are pissed about...

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Who borrowed more from the Fed than anybody else...? Dexia... And it's ready to implode again...

c'mon, house of cards... collapse already...!

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When Obama looks in the mirror in the morning, I don't think he sees a reflection

there's no reflection because there's nobody there...

glenn in the guardian...

Barack Obama is gutting the core principles of the Democratic party

[...]

[I]t is now beyond dispute that President Obama not only favours, but is the leading force in Washington pushing for, serious benefit cuts to both social security and Medicare.

This week, even as GOP leaders offered schemes to raise the debt ceiling with no cuts, the White House expressed support for the Senate's so-called "gang of six" plan that includes substantial cuts in those programmes.

The same Democratic president who supported the transfer of $700bn to bail out Wall Street banks, who earlier this year signed an extension of Bush's massive tax cuts for the wealthy, and who has escalated America's bankruptcy-inducing posture of Endless War, is now trying to reduce the debt by cutting benefits for America's most vulnerable – at the exact time that economic insecurity and income inequality are at all-time highs.

Where is the "epic shitstorm" from the left which Black predicted? With a few exceptions – the liberal blog FiredogLake has assembled 50,000 Obama supporters vowing to withhold re-election support if he follows through, and a few other groups have begun organising as well – it's nowhere to be found.

Therein lies one of the most enduring attributes of Obama's legacy: in many crucial areas, he has done more to subvert and weaken the left's political agenda than a GOP president could have dreamed of achieving. So potent, so overarching, are tribal loyalties in American politics that partisans will support, or at least tolerate, any and all policies their party's leader endorses – even if those policies are ones they long claimed to loathe.

This dynamic has repeatedly emerged in numerous contexts. Obama has continued Bush/Cheney terrorism policies – once viciously denounced by Democrats – of indefinite detention, renditions, secret prisons by proxy, and sweeping secrecy doctrines.

He has gone further than his predecessor by waging an unprecedented war on whistleblowers, seizing the power to assassinate U.S. citizens without due process far from any battlefield, massively escalating drone attacks in multiple nations, and asserting the authority to unilaterally prosecute a war (in Libya) even in defiance of a Congressional vote against authorising the war.

And now he is devoting all of his presidential power to cutting the entitlement programmes that have been the defining hallmark of the Democratic party since Franklin Roosevelt's New Deal. The silence from progressive partisans is deafening – and depressing, though sadly predictable.

The nature of American politics is that once a policy is removed from the partisan wars – once it is adopted by the leadership of both parties – it is removed from mainstream debate and fortified as bipartisan consensus. That is why false claims in the run-up to the Iraq war, endorsed by both parties, received so little mainstream journalistic scrutiny. And it's why the former Bush lawyer and right-wing ideologue Jack Goldsmith – back in May 2009 – celebrated in The New Republic the fact that Obama was doing more to strengthen Bush/Cheney terrorism policies than his former bosses could have ever achieved: by embracing the very terrorism approach he once denounced, Obama was converting it from rightwing radicalism into into the official dogma of both parties, and forcing his supporters to defend what were, until 2009, the symbols of rightwing evil.

Identically, Obama is now on the verge of injecting what until recently was the politically toxic and unattainable dream of Wall Street and the American right – attacks on the nation's social safety net – into the heart and soul of the Democratic party's platform. Those progressives who are guided more by party loyalty than actual belief will seamlessly transform from virulent opponents of such cuts into their primary defenders.

And thus will Obama succeed – yet again – in gutting not only core Democratic policies, but also the identity and power of the American Left.

it's really astounding to me how this whole thing works...

watching this phenomenon called barack obama blatantly demonstrating that there is literally NO daylight between the two parties in our so-called two-party system, not only doggedly upholding but vigorously extending the worst excesses of the nightmarish years under dubya, determinedly selling out every principle i believe in, and then seeing almost NOBODY pushing back, is reducing me to abject despair...

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The wealthy continue to prosper while plundering the assets of the masses

in greece as in the u.s. as in the uk as in the rest of the world...

from spiegel...

Greece is tightening its belt -- and the number of people living in poverty is surging as a result. Thousands line up in front of food banks and resort to rifling through rubbish bins. The country's financial crisis is rapidly turning into a social one -- while wealthy tax evaders manage to get off scot-free.

[...]

In 2010, the number of jobless in Greece rose by 230,000, to reach 14.8 percent. Given Greece's weak social safety net, unemployment is more or less tantamount to social bankruptcy. For example, unemployment benefits are only available for a year at a monthly rate of less than €500. After that, the state offers practically no assistance. Officials estimate that only about 280,000 of the 800,000 peoplhttp://www.blogger.com/img/blank.gife without jobs are still eligible to claim unemployment benefits. This has resulted in a dramatic rise in the number of homeless people -- by up to 25 percent in Athens alone.

According to official data, unemployment is expected to climb to between 17 percent and 18 percent by the end of 2011, but the true figure could be as high as 23 percent. "That would be 1.2 million jobless people," Robolis says [professor of economics and social policy at Athens' Panteion University and director of the Labor Institute of the General Confederation of Greek Workers]. The last time Greece saw something like this was in 1961, when the introduction of modern farming technology put thousands of agricultural laborers out of work.

what isn't mentioned in the article is the massive privatization scheme that accompanies the greek eu bailout... basically, greece is being forced to divest of all of its principal assets in order to satisfy the terms of the eu loans, effectively resulting in wiping out greek sovereignty and putting the ownership of the country in the hands of our already super-rich elites...

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