Liberalscum Buster

January 22, 2009

THE US ECONOMY IS GOING INTO SHOCK… HERE IS WHY

Filed under: BARACK OBAMA, ECONOMY, life, medicine, news — gasdocpol @ 12:33 am

THE MEDICAL CONDITION KNOWN AS SHOCK IS THE CONDITION WHEREBY THE CARDIOVASCULAR SYSTEM IS NOT PERFUSING THE ORGANS OF THE BODY AT A SUFFICIENT PRESSURE WITH THE RESULT THAT THE ORGANS ARE NO LONGER FUNCTIONING PROPERLY.

There are several kinds of shock(Cardiogenic, septic, anaphylactic, hypovolemic, etc)The treatment is different for each of them.

Economics is analogous to animal physiology. The cardiovascular system furnishes blood to muscles (analogous to our manufacturing sector which produces goods) and our brain (analogous to our service sector) Our financial institutions furnish money in the same way the cardiovascular system furnishes blood.

Basically the bailout package is trying to treat cardiogenic shock with the treatment for hypovolemic shock. Instead of attending to cardiac function, they are assuming the patient lost blood and are transfusing the patient.

When you do that , you get congestive heart failure.

November 14, 2008

HOW THE US GOVERNMENT CAUSED PROBLEMS IN THE CAPITAL AND MONEY MARKETS

Filed under: BARACK OBAMA, Bush, ECONOMY, hillary clinton, John McCain, life, news, politics — gasdocpol @ 6:18 pm

THE LENDER SHOULD KNOW THE BORROWER. THE LENDER SHOULD DETERMINE IF A PROSPECTIVE BORROWER WILL BE ABLE TO PAY BACK THE LOAN. (EVERYONE WITH ME SO FAR?)

Risk is involved. The lender is entitled to charge interest in proportion to that risk. Some of those loans will default. If the lender has done his job properly, he (she) will have the principle repaid with interest. If the lender has been astute, relatively few loans will default and he has set the interst rate optimally, he will make a fine profit.

Now that lender is in competition with other lenders. Whichever lender has more skillfully lent money, that lender would be rewarded proportionally. CAPITALISM AND FREE ENTERPRISE AT ITS FINEST!

In 1938, Fannie Mae (FNMA) was established to create a secondary market for mortgages so that banks could sell those morgages to other financial institutions.

The good news was the risk could be spread around. The bad news is that the lender would no longer know the borrower.

Bankers are no different from a barber who is aked “Do I need a haircut?”. If banks can lend money for a mortgage and then sell that mortgage to some other financial institution, that bank can start “selling pigs in a poke” and no longer is kept from making bad loans.

Therefore goverment oversight became necessary to compensate for the effect of the creation of that secondary market.

Under banners of :”The government is the problem”, “Let the market work”, “Get the government off our backs” , “Free Enterpise”, etc, lobbyists descended upon Congress. Most Congressmen and Senators are not PhDs in economics and some of those who are, like Phil Gramm have their own agenda.

If banks that set up mortgages had to assume the risk of that morgage, goverment oversight would not have been necessary.

Imagine if you could lend money to people around town collecting I.O.U.s and then then split them up, rebundling them and selling them to others who in turn would resell them, you would be less concientious of risk assessment.

Does any of this make sense?

October 26, 2008

SOME COMPUTERS NEED TO BE REBOOTED, SOME HEARTS NEED DEFIBRILLATION, SOME BRAINS NEED ELECTROSHOCK THERAPY

Filed under: BARACK OBAMA, Bush, ECONOMY, hillary clinton, John McCain, life, medicine, mideast, news, politics, war — gasdocpol @ 4:06 pm

THE GOP NEEDS TO BE RESET TOO
McCAIN’S CAMPAIGN THREATENS TO BRING DOWN THE WHOLE GOP WITH HIM. MAYBE THAT IS WHAT IT WILL TAKE TO RID THE GOP OF THE NEOCONSERVATIVES.

The Democrats need a truly conservative GOP to keep them honest. The Democrats are just as capable of screwing things up as Republicans.

The GOP has given us Lincoln, Teddy Roosevelt, Eisenhauer and Reagan .
In 2000 , they gave us alfred E. Newman and now they are trying to give us Yosemite Sam.

October 2, 2008

McCain, The Deregulation Hawk

Filed under: BARACK OBAMA, Bush, ECONOMY, hillary clinton, John McCain, life, mideast, news, politics, war — Tags: , — gasdocpol @ 5:39 pm

John McCain was instumental in our present financial crisis ? Deregulation reduces oversight.

Everyone seems to agree that the current financial crisis was caused by lack of oversight in financial markets.

Google McCain deregulation
Tuesday, September 16, 2008

One could argue, quite accurately, that John McCain is responsible for the Nation’s economic crisis. McCain has worked his entire career to deregulate the financial industry – with disastrous results.

In the 1980’s McCain was a key figure in deregulating the savings and loan industry. McCain parlayed it into highly profitable graft for himself. That led to wholesale theft and the collaspe of many S&Ls. McCain got caught in the the ensuing scandal but successfully used his POW line to wiggle free.
McCain’s economic guru, Phil Gramm, slipped the “Enron Loophole” into legislation in the year 2000. This deregulatory loophole was used by that infamous company to game the electricity markets so egregiously that it led to Enron’s own collapse. Since then, McCain has blocked every effort to close the loophole which is now being used by energy traders to game gasoline prices.
The current banking crisis traces back to the repeal of the Glass-Steagall Act in 1999. Again Phil Gramm get direct blame for deregulating banks. Again, John McCain followed Gramm like an servile puppy in the effort. The effect is an economic crisis the world has not seen in 75 years.

McCain has said he will make Phil Gramm Treasury Secretary.
McCain’s son, Andrew, ran an Arizona bank into bankruptcy earlier this year under curious, at least, circumstances.

Not content with fucking the nation’s economy, McCain is campaigning on a platform of deregulating health care.
It is true that, as of today, John McCain is urging reregulating the financial markets. Of course that would mean undoing his life’s work. But, John McCain wouldn’t lie, would he? He wouldn’t say one thing now to get elected and do another thing after he gets in office, would he?

August 20, 2008

THE ENRON LOOPHOLE & AND OIL FUTURES TRADING AND PHIL GRAMM

The Commodity Futures Modernization Act of 2000 deregulated the market for energy futures. This is what is commonly referred to as “the Enron loophole.” It has led to malpractice and manipulation of these unregulated dark markets resulting in price spikes far beyond what the normal law of supply and demand would dictate.

Excerpt From The Star-Telegram:

The late, infamous Enron head, Ken Lay, realized in the eighties that he could make more money bidding up energy in the futures market than by actually creating and selling energy. But, under then-current rules, how much you could make swapping paper was limited. Fortuitously, Lay had excellent Texas political connections; and in November of 1992, the head of the Commodities Futures Trading Commission moved to exempt energy-derivative contracts and related swaps from any government oversight.

A vote was hurriedly put together before the Clinton White House would take over, and so Lay could finally start “dark” – unregulated – futures trading. The head of the CFTC was Wendy Gramm, wife of Texas Senator Phil Gramm; five weeks after she left, she became a board member of Enron in Houston.

Fast-forward to late 2000 and H.R. 5660, the Commodity Futures Modernization Act of 2000, sponsored by Republican Congressman Thomas Ewing of Illinois. That bill went nowhere, even though Tom Delay’s wife Christine was then working for a Washington lobbying firm, Alexander Strategies – which Enron had paid $200,000 to push through legislation for permanent energy deregulation in these “dark” markets.

Six months later came Senate Bill 3283, also named the Commodity Futures Modernization Act of 2000. This time around the sponsor was Republican Sen. Richard Lugar of Indiana, and now Phil Gramm was listed as one of the bill’s co-sponsors. Like it had in the House, this bill was destined to go nowhere until, late one night, it was attached as a rider to an 11,000-page appropriations bill – which was signed into law by President Clinton.

Now traders had an officially deregulated market for energy futures. Worse, that bill also deregulated many financial instruments – including the collateralized debt obligations that are at the center of today’s mortgage crisis, which may well cost us more than $1 trillion before it’s over.

Everybody Was Warned!

As USA Today wrote of this fiasco in January of 2002, “But, as a power marketer, [Enron] could buy enough energy-futures contracts in a region to create a virtual monopoly.” That’s right: As early as the winter of 2002, it was widely known that the 2000 Commodities Futures Modernization Act had created a monster, capable of running up energy prices outside of the normal law of supply and demand. Worse, our government had been warned this was going to happen. Representatives of the Federal Reserve, the Securities and Exchange Commission and the CFTC had already told Congress not to deregulate energy because “the market was ripe for manipulation.” Everybody was warned; that’s why this deregulation bill was stealthily inserted into that appropriations bill without a floor debate.

Phil Gramm’s office denied that he had anything to do with writing the section of that bill that actually deregulated energy. And yet Prof. Michael Greenberger, formerly a CFTC board member himself, said that Gramm’s wife Wendy, along with a few lobbyists and Wall Street attorneys, had rewritten it. When Robert Manor of the Chicago Times wrote about this situation on January 18, 2002, neither Gramm could be reached for comment.

Kill It Before It Multiplies

When Enron failed and took its private, unregulated energy exchange to the grave, another rose to take its place. The Intercontinental Exchange (ICE) was the brainchild of Morgan Stanley, Goldman Sachs, British Petroleum, Deutsche Bank, Dean Witter, Royal Dutch Shell, SG Investment Bank and Totalfina. In 2001 ICE purchased the International Petroleum Exchange in London; renamed ICE Futures, it now operates as an “exempt commercial market” under section 2(H)(3) of the Commodity Exchange Act. As the Senate hearings pointed out in the summer of 2006, “Both markets operate outside of any CFTC oversight.”

If you reread the quotes at the start of this story again, you find that many officials in the government warned against what would happen in a deregulated energy market, because it was so easy to manipulate. We already know this to be true thanks to Enron’s California misdeeds. And, as we pointed out last week, British Petroleum was busted for manipulating the propane market and fined over $300 million; and Amaranth Partners was caught manipulating the natural gas market, unconscionably causing the futures price for natural gas to raise every Texan’s electric bills. (It took two years for Amaranth to be exposed.) And yes, the manipulation happened in the new “dark” and unregulated exchanges, making it almost impossible to uncover. So it’s not a question of “if” some “theoretically possible” manipulation and distortion of the market will result from this bill, championed by Phil Gramm, his wife Wendy and Christine Delay’s employer, Alexander Strategies. The reason it is not theoretical is because we keep catching well-known companies doing it on a regular basis.

No Conscience in Congress?

All you hear daily is that the world has a severe shortage of oil, or you can buy only 200 pounds of rice at one time, or we will have a gasoline crisis this summer, etc. But it takes only a minute to find hundreds of quotes from highly respected oil and economic analysts, (not to mention CEOs of the major oil companies), that completely dismiss the claim of oil, gas or food shortages that have been headlining the news.

Even more troubling is that within months of the CFMA’s going into effect, we knew it had enabled easy manipulation of any energy market, but nothing was done to fix it. Nor was anything done when the Senate held its hearings on this matter in 2006, or in the House hearings last December.

Today we call this situation the “Enron Loophole,” but that’s untrue. It’s not a loophole: it was a new law passed in 2000 – and far more individuals than Ken Lay have used that law to line their pockets with hundreds of billions of American consumers’ hard-earned dollars. That’s not my opinion, that’s direct testimony by numerous experts before both the House and Senate.

Professor Greenberger warned about our “New American Economy” far better than I could:

“Should we have an economy that’s based on whether people make good or bad bets? Or should we have an economy where people build companies, create manufacturing, do inventions, advance the American society and make it more productive? We are rewarding people for sitting at their computers and punching in bets. That’s not the way our economy is going to be built, and India and China, with their focus on science and industry and building real businesses, are going to eat our lunch, unless the American public wakes up and puts an end to an economy that praises and makes heroes out of speculators.”

Greenberger’s statement explains why Detroit and other American manufacturers suffer while Wall Street speculators make a fortune — and your rapidly shrinking checkbook pays for it, every time you buy food, fuel or feed.

All because there is no shortage of these goods, you’re just being told there is because it’s more profitable – for a few – that way.

© 2008 Ed Wallace

Everybody was warned; that’s probably why this deregulation bill was stealthily inserted into that appropriations bill without a floor debate.

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