Anonymous writes:
Boom
Anonymous | 03.28.08 - 8:19 pm | #

Misean writes:
Monolines blowing up?! Can this be?!

Will this effect the Stock Market?! The Bond Market?!

Will the Caped Crusaders be able to stop the Plunge?!

Tune in Monday, Same Bat Time, Same Bat Channel!

hoocoodanode?!

Cheers,
Misean | 03.28.08 - 8:22 pm | #

4822 writes:
Monday? Won't they be working over the weekend now?
4822 | 03.28.08 - 8:26 pm | #

Troy writes:
1,2,3,4,5 . . . .senses working over~time
Troy | 03.28.08 - 8:26 pm | #

dr.dan writes:
first , no 14th
dr.dan | 03.28.08 - 8:28 pm | #

Misean writes:
4822,

Well of course. But we don't get to see the episode until after it's filmed.

Cheers,
Misean | 03.28.08 - 8:28 pm | #

Neal writes:
Look for another congratulations on Monday from Bush for Paulsen actually working on a weekend...

Chuckles all around...
Neal | 03.28.08 - 8:30 pm | #

Lee Gill MD writes:
MBIA and AMBAC are next....

High flying tightrope act by Fed, Tsy Dept., Administration, Wall Street and ratings agencies about to unravel for good...

Working Group Won't Work (WGWW).

Main Street awakening and pulling the (sheep's) wool from their eyes....

IMO.
Lee Gill MD | 03.28.08 - 8:32 pm | #

scotty on patrol writes:
Morgan Stanley Seeks Reduced Commercial-Paper Credit Line
Dow Jones

March 28, 2008: 06:25 PM EST
http://money.cnn.com/news/ newsfe...34_FORTUNE5.htm



Morgan Stanley (MS) is seeking a reduced credit line to back up its commercial paper but is finding it tougher to negotiate the deal.

The investment bank deliberately cut its reliance on commercial paper - short- term debt used to finance its daily businesses - because jittery investors in today's unstable markets want investment banks to have cash or longer-term sources of funding.

Morgan Stanley's available liquidity - cash and cash equivalents - increased to an average of $123 billion during its first quarter that ended last month, from $85 billion in 2007, said Mark Lake, a company spokesman. As a result, it cut the amount of commercial paper it issues, as well as the so-called " backstop" bank line required to ensure investors in commercial paper that it can pay them back.
scotty on patrol | 03.28.08 - 8:34 pm | #

scotty on patrol writes:
BS AG has cut the value of the auction-rate securities its customers have in their accounts by about 5 percent following more than a month of market upheaval.

``This is the right thing to do,'' said Michelle Creeden, a UBS spokeswoman, in a prepared statement. ``It is in the best interest of our clients to provide them full transparency regarding their account. Given current market dislocations, this is the next logical step for any committed wealth manager.''

http://www.bloomberg.com/apps/ne...f1O4& refer=home


UBS will inform clients of the reduced value of their holdings via their online statements, Briefing.com said, citing a Dow Jones report. UBS customers had maintained full value without any discount that could reflect bondholders' inability to sell their holdings.
scotty on patrol | 03.28.08 - 8:35 pm | #

Nemo writes:
Heck of a job, S&P
Nemo | Homepage | 03.28.08 - 8:37 pm | #

Misean writes:
MBIA and Ambak are like Wile E. Coyote standing on a piece of dynamite, yank out ever more lengths of lit fuse. The fuse finally pulls out of the dynamite. Wile E. wipes his forhead *whew*...the fuse continues to burn into his hand, the smoke puffs out of his clenched fist. He points at it with his other hand and laughs. Then the dyamite explodes.

Cheers,
Misean | 03.28.08 - 8:37 pm | #

scotty on patrol writes:
The Senate Banking Committee has scheduled for next week a hearing about the collapse of Bear, and likely will grill the agency.

http://www.financialnews-us.com/ ...ntid=2450197851

In assuring investors that Bear Stearns was stable, "the commission appears to have been caught badly off-guard by the seriousness of the situation," said Senator Jack Reed, a member of the Senate Banking Committee.

In an interview, Cox defended his agency by saying Bear's problems stemmed not from its capital structure but from the unwillingness of other financial institutions to lend to the company.

The Fed, for its part, is focused on maintaining the soundness of the financial system. Unlike the Fed, the SEC has no funding powers. During the Bear meltdown, the SEC's staff was on site, reviewing the firm's funding levels. It granted technical exceptions to rules to remove potential blocks to the deal with JP Morgan. And Cox said customer accounts at Bear were protected.

According to data released by the SEC last week, Bear had cash and cash equivalents of $18.1bn (€11.5bn) on March 10, which fell to $11.5bn on March 11—the day of Cox's statement.
scotty on patrol | 03.28.08 - 8:40 pm | #

nunya writes:
`This is the right thing to do,'' said Michelle Creeden, a UBS spokeswoman, in a prepared statement. ``It is in the best interest of our clients to provide them full transparency regarding their account. Given current market dislocations, this is the next logical step for any committed wealth manager.''

well...it's hardly "wealth management" when the principle that one puts up to make said wealth is itself in peril...
nunya | 03.28.08 - 8:40 pm | #

scotty on patrol writes:
http://www.accountingobserver.co...18/ Default.aspx

Just noticing a couple of non-reliance 8-K's the past couple days and they have to do with simple reclassifications of securities on past balance sheets and some investing cash flow statement geography. That doesn't mean they don't matter.

For instance, Primedia put the recall on its 2007 10-Qs because it had included auction rate securities in its cash and equivalents all year long. When classified as "available for sale securities," the amount of restated first quarter cash and equivalents was less than half the original amount: from $145 million to $67 million.



Re: To: Board Members
From: Auction Rate Securities Team
(Duke, ext. 297 and Trench, ext.
455)
Subject: Minutes of the October 5, 2005
Board Meeting--ARS Date: October 14, 2005


Mr. Young asked about Variable Rate Demand Obligations (VRDOs). He
asked if accounting firms issued guidance on VRDOs that is similar to the
guidance issued for ARS, and if the Board would consider that issue.
10. Mr. Smith stated that the issue concerning VRDOs has not been brought to
light by the major accounting firms at this time.
11. Mr. Young stated that he did not want to see a market shut down by an
obsolete accounting rule, but that is effectively what happened to the ARS
market.
scotty on patrol | 03.28.08 - 8:47 pm | #

Billy Hill writes:
MBIA and Ambak are like Wile E. Coyote standing on a piece of dynamite, yank out ever more lengths of lit fuse. The fuse finally pulls out of the dynamite. Wile E. wipes his forhead *whew*...the fuse continues to burn into his hand, the smoke puffs out of his clenched fist. He points at it with his other hand and laughs. Then the dyamite explodes.

If this is an actual Coyote episode, could some brave copyright infringer post it on youtube?

Maybe they could have the fuse exploding instead of the dynamite.
Billy Hill | 03.28.08 - 8:50 pm | #

scotty on patrol writes:
I need some wine again:

Investment Securities. At December 31, 2007, investment securities consist of U.S. Government, mortgage-backed, corporate debt and equity securities. We classify our fixed maturities in one of three categories: trading, available-for-sale or held-to-maturity. Our equity securities are classified as trading or available-for-sale. Trading securities are bought and held principally for the purpose of selling them in the near term. Held-to-maturity debt securities are those securities in which we have the ability, and intent, to hold the security until maturity. All securities not included in trading or held-to-maturity are classified as available-for-sale.

Trading and available-for-sale securities are recorded at fair value. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts. Unrealized holding gains and losses on trading securities are included in earnings. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of other comprehensive income until realized. Realized gains and losses from the sale of trading and available-for-sale securities are determined on a specific-identification basis.

We regularly review our investment securities to assess whether the amortized cost is impaired and if impairment is other than temporary. A decline in the market value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in a reduction in carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether impairment is other-than-temporary, NLASCO considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year-end, and forecasted performance of the investee.
scotty on patrol | 03.28.08 - 8:52 pm | #

FFDIC writes:
Telegrpah UK
When the going gets tough, banks yelp for nanny (with bloody boffo reader comments that rival CR on a good full moon night)
http://www.telegraph.co.uk/money...6/ ccjeff126.xml
FFDIC | 03.28.08 - 8:57 pm | #

Joe Six Pack writes:
Will the lifeboats be seated according to class? I hope they aren't too crowded.
Joe Six Pack | 03.28.08 - 9:04 pm | #

DaveJ writes:
Reminds me one of the line from "Oh Brother, Where art Thou?"

Wash Hogwallop, explaining what happened to his wife: "She R-U-N-O-F-T".
DaveJ | 03.28.08 - 9:05 pm | #

Misean writes:
billy hill,

I will look after my walk. It's terribly difficult to get good youtube results on WB cartoons, as Wb constantly has lawyers pulling them.

I remeber the ep though. I'm a rabid fan.

Cheers,
Misean | 03.28.08 - 9:06 pm | #

scotty on patrol writes:
Term loan agreements:

On November 6, 2007, NorthStar modified an existing credit agreement and entered into a new term loan agreement with a major financial institution, which provides for approximately $600 million of term loan capacity. The term facility eliminates mark-to-market valuation adjustments based on market credit spread movements and interest rate fluctuations. The proceeds under the term facility were partially used to repay approximately $450 million outstanding under existing facilities with the same financial institution. The term loan agreement also provides for up to $300 million of revolving term loan capacity as portions of the outstanding balance under the term loan agreement are repaid. The term facility initially bears interest at LIBOR plus 2.00% and has an initial two-year term which the Company has the option to extend for an additional one-year period, subject to certain conditions.
scotty on patrol | 03.28.08 - 9:07 pm | #

barely writes:
I am just hoping the market opens flat on Monday so I can reload my short position. Expecting 1000 visitors on Monday AM.
barely | 03.28.08 - 9:08 pm | #

Rob Dawg writes:
I wonder if S&P sees anything else in the rearview mirror? What's the investment outlook for US Celluloid Collar Stays Inc.?
Rob Dawg | Homepage | 03.28.08 - 9:08 pm | #

Justin writes:
FGIC is the "heads we win, tails we rescind" company. They'll be in run-off, doing nothing put paying lawyers to find ways to avoid paying obligations on their insurance.
Justin | 03.28.08 - 9:20 pm | #

scotty off patrol writes:
OT??

Federal National Mortgage Association

February 27, 2008

FORM 8-K

Mortgage loans:

Mortgage loans held for sale
7,008 75 7,083 (3) 4,868 9 4,877 (3)
Mortgage loans held for investment, net of allowance for loan losses
396,516 70 396,586 (3) 378,687 (2,918 ) 375,769 (3)
Guaranty assets of mortgage loans held in portfolio
— 3,983 3,983 (3)(4) — 3,669 3,669 (3)(4)
Guaranty obligations of mortgage loans held in portfolio
— (4,747 ) (4,747 ) (3)(4) — (2,831 ) (2,831 ) (3)(4)

Total mortgage loans
403,524 (619 ) 402,905 (2)(3) 383,555 (2,071 ) 381,484 (2)(3)



(3) We have separately presented the estimated fair value of “Mortgage loans held for sale,” “Mortgage loans held for investment, net of allowance for loan losses,” “Guaranty assets of mortgage loans held in portfolio” and “Guaranty obligations of mortgage loans held in portfolio,” which, taken together, represent total mortgage loans reported in our GAAP consolidated balance sheets. In order to present the fair value of our guaranties in these non-GAAP consolidated fair value balance sheets, we have separated (i) the embedded fair value of the guaranty assets, based on the terms of our intra-company guaranty fee allocation arrangement, and the embedded fair value of the obligation from (ii) the fair value of the mortgage loans held for sale and the mortgage loans held for investment.
scotty off patrol | 03.28.08 - 9:23 pm | #

AllenM writes:
http://www.nytimes.com/2008/03/2...int& oref=slogin

WOWOWOOOW

Someday this war's gonna end....
AllenM | 03.28.08 - 9:27 pm | #

scotty off patrol writes:
Goldman, Lehman Brothers, Merrill Lynch and other banks have been telling investors the market for these securities is frozen — and so is their cash.

The banks typically pitch these securities to corporations and wealthy individuals as safe alternatives to cash, investors said. The bonds are, in fact, long-term securities. But the banks hold weekly or monthly auctions to set the interest rates and give holders the option of selling the securities.

Only this week almost 1,000 of these auctions failed. The banks also refused to support the auctions, leaving many investors wondering when they will get their money back.

“Investors have lost confidence in the liquidity of these instruments,” said G. David MacEwen, the chief investment officer for fixed income at American Century Investments, a mutual fund company. “These types of instruments depend on new investors showing up to own the securities.”

The $330 billion auction-rate market is dominated by municipalities and other tax-exempt institutions like the Port Authority of New York and New Jersey, which had issued some auction securities and had its interest rate soar to 20 percent on Wednesday. Closed-end mutual funds, student loan companies and corporations also issue such securities.
scotty off patrol | 03.28.08 - 9:29 pm | #

FT Woods writes:
Allen M, that should make for one heckuva bar room brawl.
FT Woods | 03.28.08 - 9:34 pm | #

Shnapster writes:
reader comments that rival CR on a good full moon night

Whoa. You can say that again, FFDIC! I guess I missed the memo that the Telegraph is the new Daily Mail.
Shnapster | Homepage | 03.28.08 - 9:35 pm | #

barely writes:
"AllenM While the plan could expose Wall Street investment banks and hedge funds to greater scrutiny, it avoids a call for tighter regulation"

Pauson just trying to get out in front of Congress before they start really forcing regulation - Protecting his IB buddies.
barely | 03.28.08 - 9:37 pm | #

Anonymous writes:
WOWOWOOOW

Fox guarding the hen house, change a few titles, move a couple of desk and the same old gang will be in charge. A lot easier to bribe them when they are all under on roof though.
Anonymous | 03.28.08 - 9:44 pm | #

scotty on patrol writes:
Some funds planning to redeem auction-rate stock

http://www.latimes.com/business/ ...1,3740077.story


The moves could help investors frozen in the securities because of the credit crunch.
By Tom Petruno, Los Angeles Times Staff Writer
March 13, 2008

A growing number of investment funds say they're stepping up plans to return cash to investors who have been stranded in so-called auction-rate preferred stock -- one of the recent casualties of the credit crunch.

But the process may be slower than some investors might like.

On Wednesday, the Securities and Exchange Commission said it was drawing up guidelines to allow municipalities to buy back the securities without running afoul of rules against market manipulation.

Congress has been pressing the SEC on the issue because the failure to attract new investors to municipalities' auction-rate securities in recent weeks has triggered high "penalty" rates on the debt, driving up costs to the issuers.




http://www.girardgibbs.com/ aucti...uctionrate.html

Girard Gibbs LLP is investigating alleged securities fraud in connection with the sale of auction rate securities by a number of major broker-dealers, including UBS, Citigroup/Smith Barney, Wachovia, Merrill Lynch, Wells Fargo, Morgan Stanley, J.P. Morgan Chase and TD Ameritrade, among others. The issuers of the auction rate securities include Blackrock, Eaton Vance, Nuveen and ING.

According to recent news articles, the broker-dealers and issuers materially misrepresented the liquidity and risks of the auction rate securities to individual investors and corporations by labeling these securities as “cash equivalents,” in press releases, monthly account statements, individual communications with investors, and other investment guidance material. In fact, the promised liquidity of the auction rate securities was created through artificial intervention in the auctions by the broker-dealers.

In the past month, the market for auction rate securities has collapsed, as all of the major broker-dealers have announced that they will no longer purchase auction rate securities for their own accounts to ensure that the auctions do not fail and that the securities remain liquid. In the past month, thousands of auctions run by the broker-dealers failed. As a result, over $350 billion in auction rate securities that were once offered as “cash equivalents” are now illiquid, resulting in economic losses and severe hardships for investors.
scotty on patrol | 03.28.08 - 9:45 pm | #

Misean writes:
barely,

"Pauson just trying to get out in front of Congress before they start really forcing regulation - Protecting his IB buddies."

Gosh, you mean they had no rules to enforce during to the last two popped bubbles?

This thing AllenM quotes is just typical beurcratic power grabbing. Paulson, representing Goldman, an owner of USFRB stock wants that power in the Fed; who knows what the compromised Dodd and Frank want.

If you think that "regulators" are gonna do poopoo during a bubble to the bubble makers making bank, you're not thinking straight man.

Cheers,
Misean | 03.28.08 - 9:48 pm | #

ac writes:

WASHINGTON — The Treasury Department will propose on Monday that Congress give the Federal Reserve broad authority to oversee financial market stability, in effect allowing it to send SWAT teams into any corner of the industry or any institution that might pose a risk to the overall system.

The proposal is part of a sweeping blueprint to overhaul the country’s hodge-podge of regulatory agencies, which many specialists say failed to recognize rampant excesses in mortgage lending until after they triggered what is now the worst financial calamity in decades.

According to a summary provided by the administration, the plan would consolidate what is now an alphabet soup of banking and securities regulators into a trio of overseers responsible for everything from banks and brokerage firms to hedge funds and private equity firms.

While the plan could expose Wall Street investment banks and hedge funds to greater scrutiny, it avoids a call for tighter regulation. The plan would not rein in practices that have been implicated in the housing and mortgage meltdown, like packaging risky subprime loans into securities carrying AAA ratings.

The Fed would also be given some authority over Wall Street firms but only when an investment bank’s practices posed a threat to the financial system over all.

Hahaha... you couldn't make this stuff up.

The Federal Reserve almost single-handedly architects the most epic financial meltdown in history, and the proposed solution to this disaster?

(Drum roll please)

MORE POWER FOR THE FEDERAL RESERVE

I guess responsible monetary policy isn't an option?

SWAT teams that raid errant financial institutions directed by the folks that ignored every lesson learned during the Great Depression and served up US consumers on a silver platter to institutional speculators engorged with easy money is the superior alternative?

Or is one alternative simply superior for the Federal Reserve, maybe a few career politicians, and nobody else?

Hmmmm...

ac | 03.28.08 - 9:49 pm | #

Misean writes:
ac,

"SWAT teams that raid errant financial institutions"

Yes, those that don't play ball. Those that do play ball, will be wining and dining, and buying $4000/night whores for the regulators.

Cheers,
Misean | 03.28.08 - 9:51 pm | #

scotty on patrol writes:
Re: “I am not suggesting that more regulation is the answer, or even that more effective regulation can prevent the periods of financial market stress that seem to occur every 5 to 10 years,” Mr. Paulson will say in a speech on Monday,

Re: After the boy scout movement was banned through German-controlled countries, the HJ appropriated many of its activities, though changed in content and intention. For example, many HJ activities closely resembled military training, with weapons training, assault course circuits and basic strategy. Some cruelty by the older boys toward the younger ones was tolerated and even encouraged, since it was believed this would weed out the unfit and harden the rest.
scotty on patrol | Homepage | 03.28.08 - 9:52 pm | #

Anonymous writes:
Misean

I fail to see the humor ....ROTFFLMAO
Anonymous | 03.28.08 - 9:55 pm | #

Anonymous writes:
OT

South Korea's National Pension Service plans to no longer purchase U.S. Treasurys, citing falling yields and an urge to pursue a broader range of foreign investments, news reports said.
"It is difficult to buy more U.S. Treasurys because the portion of our Treasury investment is already too big and Treasury yields have fallen a lot," said Kwag Dae-hwan, head of global investments at the National Pension Service, according to a Financial Times report.
The National Pension Service is the world's fifth-largest pension fund, with about $220 billion in assets. It holds some $14 billion of U.S. government debt, a tiny portion of the overall $4.5 trillion U.S. Treasury market, the newspaper said.

An unidentified manager on the National Pension Service's overseas investment team told the Financial Times that the fund continues to make profits on past Treasury purchases but that it might be wise to "dispose of them" while buying higher-yielding European government debt

http://www.marketwatch.com/news/...8506ADA3A763% 7d

Sniff*sniff
Anonymous | 03.28.08 - 9:56 pm | #

lama writes:
They might need those swat teams in a year or so to disperse demonstrations...which I guess would be another bailout.
lama | 03.28.08 - 9:58 pm | #

Tom Stone writes:
AllenM,Thanks for the link.IF they made the BATFE the lead agency I might go for it.
Tom Stone | 03.28.08 - 10:01 pm | #

scotty on knees praying for he writes:
As I'm sure no one will recall from a few nights ago:

The United States Senate Committee on Banking, Housing, and Urban Affairs has jurisdiction over matters related to: banks and banking, price controls, deposit insurance, export promotion and controls, federal monetary policy, financial aid to commerce and industry, issuance of redemption of notes, currency and coinage, public and private housing, urban development and mass transit, and government contracts.

The Senate Banking Subcommittee on Securities, Insurance, and Investment is one of five subcommittees within the Senate Committee on Banking, Housing, and Urban Affairs.

The Senate Banking Subcommittee on Financial Institutions is one of five subcommittees within the Senate Committee on Banking, Housing, and Urban Affairs.

The Subcommittee on Economic Policy oversees economic growth, employment and price stability, federal monetary policy, including the policy functions of the Federal Reserve System; the Council of Economic Advisers; money and credit, including currency, coinage, and notes; control of prices of commodities, rents and services; economic stabilization and defense production; the Defense Production Act; financial aid to commerce and industry; loan guarantees; flood insurance; and disaster assistance carried out by the Federal Emergency Management Agency within the Department of Homeland Security.

I'm hoping, praying that Paulson resigns in the morning abd backs off from this coup talk...
scotty on knees praying for he | Homepage | 03.28.08 - 10:02 pm | #

LJ writes:
Well if S&p says I'll damn well believe it. Their track record is phenomenal!!!!
LJ | Homepage | 03.28.08 - 10:08 pm | #

scotty on knees praying for he writes:
Old news, but somehow timely:

"Where's the president?" asked the Connecticut Democrat, speaking from Iowa, where he is spending the week campaigning for the Democratic presidential nomination. "This is an economic crisis that demands the leadership of the president and the treasury secretary."

He noted that it's been government regulators who have tried to take steps to calm the volatile markets. "That you have regulators determining economic policy while the president is up on his boat in Kennebunkport is a little troubling to me," said Dodd. Congress left Washington August 4 and is not due to return until after Labor Day.
scotty on knees praying for he | Homepage | 03.28.08 - 10:09 pm | #

scotty in civics class writes:
Committees may be established on an ad hoc basis for specific purposes; for instance, the Senate Watergate Committee was a special committee created to investigate the Watergate scandal. Such temporary committees cease to exist after fulfilling their tasks.

Bills may be introduced in either House of Congress. However, the Constitution provides that "All bills for raising Revenue shall originate in the House of Representatives." As a result, the Senate does not have the power to initiate bills imposing taxes. Furthermore, the House of Representatives holds that the Senate does not have the power to originate appropriation bills, or bills authorizing the expenditure of federal funds. Historically, the Senate has disputed the interpretation advocated by the House. However, whenever the Senate originates an appropriations bill, the House simply refuses to consider it, thereby settling the dispute in practice. The constitutional provision barring the Senate from introducing revenue bills is based on the practice of the British Parliament, in which only the House of Commons may originate such measures.

Although the Constitution gave the House the power to initiate revenue bills, in practice the Senate is equal to the House in the respects of taxation and spending. As Woodrow Wilson wrote:[15]

[T]he Senate's right to amend [general appropriation bills] has been allowed the widest possible scope. The upper house may add to them what it pleases; may go altogether outside of their original provisions and tack to them entirely new features of legislation, altering not only the amounts but even the objects of expenditure, and making out of the materials sent them by the popular chamber measures of an almost totally new character.

The approval of both the Senate and the House of Representatives is required for any bill, including a revenue bill, to become law. Both Houses must pass the exact same version of the bill; if there are differences, they may be resolved by a conference committee, which includes members of both bodies.

The Constitution empowers the House of Representatives to impeach federal officials for "Treason, Bribery, or other high Crimes and Misdemeanors" and empowers the Senate to try such impeachments.
scotty in civics class | Homepage | 03.28.08 - 10:18 pm | #

scotty in civics class writes:
Maybe Byrd will get off his fat old ass?

On March 19, 2003, when Bush ordered the invasion after receiving U.S. Congress approval, Byrd stated:

"Today I weep for my country. I have watched the events of recent months with a heavy, heavy heart. No more is the image of America one of strong, yet benevolent peacekeeper. The image of America has changed. Around the globe, our friends mistrust us, our word is disputed, our intentions are questioned. Instead of reasoning with those with whom we disagree, we demand obedience or threaten recrimination."[47]

Byrd also criticized Bush for his speech declaring the "end of major combat operations" in Iraq, which Bush made on the U.S.S. Abraham Lincoln. Byrd stated on the Senate floor:

"I do question the motives of a deskbound president who assumes the garb of a warrior for the purposes of a speech."[48]

On October 17, 2003, Byrd delivered a speech expressing his concerns about the future of the nation and his unequivocal antipathy to Bush's policies. Referencing the Hans Christian Andersen children's tale The Emperor's New Clothes, Byrd said of the president: "the emperor has no clothes." Byrd further lamented the "sheep-like" behavior of the "cowed Members of this Senate" and called on them to oppose the continuation of a "war based on falsehoods."

Byrd criticized what he saw as the stifling of dissent: "The right to ask questions, debate, and dissent is under attack. The drums of war are beaten ever louder in an attempt to drown out those who speak of our predicament in stark terms. Even in the Senate, our history and tradition of being the world's greatest deliberative body is being snubbed. This huge spending bill — $87 billion — has been rushed through this chamber in just one month. There were just three open hearings by the Senate Appropriations Committee on $87 billion — $87 for every minute since Jesus Christ was born — $87 billion without a single outside witness called to challenge the administration's line." Finally, Byrd quoted Nazi leader Hermann Göring who stated that rushing to war is easy if the proponent of war portrays opponents as unpatriotic.[49]
scotty in civics class | Homepage | 03.28.08 - 10:23 pm | #

Scoppy on Paste writes:
Please stop, I am getting nauseus.
Scoppy on Paste | Homepage | 03.28.08 - 10:33 pm | #

Zdogz writes:
I've been reading this blog almost daily since I felt the ground shift a bit last August. But I must have missed a day or two. Wasn't there some urgency about the monolines 40-60 days ago? Didn't we need resolution by end-of-week at some time (over a week ago)? I guess they raised some capital, but wasn't it a small fraction of the expected losses if there were downgrades? How did that pencil out?
Zdogz | 03.28.08 - 10:35 pm | #

scotty in civics class writes:
SEN. ROBERT BYRD: Wait! Slow down! Don’t rush this through.



PHIL DONAHUE: I did a whole hour with Robert Byrd from a hotel in Washington. And I said, “You’re alone out there. Why are they doing this? Why are they doing this?” And he looked at me, and he said, “Power. They want power.” And this Congress took their—just closed their eyes and handed him permission, which is not constitutional. The Congress didn’t vote up or down. The Congress said, “Here, if you have to, Mr. President,” and then if he has—if he thinks he has to and he goes and something goes wrong, they’re covered. It’s amazing and largely unreported upon.


America needs help!
scotty in civics class | Homepage | 03.28.08 - 10:41 pm | #

Sivaram Velauthapillai writes:
Ambac bailout rumour Monday at 3:45 PM...
Sivaram Velauthapillai | Homepage | 03.28.08 - 10:42 pm | #

4822 writes:
"This is an economic crisis that demands the leadership of the president and the treasury secretary."

they have spoken: get out and spend your stimulus money is what they've said.
4822 | 03.28.08 - 10:42 pm | #

mw writes:
We are hearing the term "shoes dropping" alot. I think much larger and weighted objects should be used in this crisis.. "Anvils dropping" or "Pianos dropping" might be more applicable.
mw | 03.28.08 - 10:46 pm | #

Sivaram Velauthapillai writes:
MISEAN: "MBIA and Ambak are like Wile E. Coyote standing on a piece of dynamite, yank out ever more lengths of lit fuse. The fuse finally pulls out of the dynamite. Wile E. wipes his forhead *whew*...the fuse continues to burn into his hand, the smoke puffs out of his clenched fist. He points at it with his other hand and laughs. Then the dyamite explodes."



Isn't that what the bears, shorts, doomsayers, and gold-to-da-moon types been saying for months now? May you guys have the wrong cartoon characters! How can you be sure that that MBIA isn't Bugs Bunny and Ambac is Donald Duck?
Sivaram Velauthapillai | Homepage | 03.28.08 - 10:46 pm | #

Misean writes:
Zdogz,

"Wasn't there some urgency about the monolines 40-60 days ago?"

Yes, and the problem has not gone away. BSC just took the info overload headlines.
Misean | 03.28.08 - 10:47 pm | #

Misean writes:
Sivaram Velauthapillai,

"May you guys have the wrong cartoon characters! How can you be sure that that MBIA isn't Bugs Bunny and Ambac is Donald Duck?"

Can't. However, if only Donald Duck blew up would it make any difference?

Cheers,
Misean | 03.28.08 - 10:49 pm | #

Sivaram Velauthapillai writes:
MISEAN: "Can't. However, if only Donald Duck blew up would it make any difference?"


Yes it would make a big difference. Bugs and Donald never die! They are never outsmarted either.

Speaking as an Ambac shareholder, we don't want Ambac dying now, do we? ;)
Sivaram Velauthapillai | Homepage | 03.28.08 - 10:54 pm | #

Misean writes:
Billy Hill,

Can't find, but this is another way to look at it:

http://www.youtube.com/watch?v=2...h? v=2kZEicde8Wo

Cheers,
Misean | 03.28.08 - 10:54 pm | #

Misean writes:
Sivaram Velauthapillai,

"Bugs and Donald never die! They are never outsmarted either."

I beg to differ:

http://www.youtube.com/watch?v=e...h? v=ehqaRvlo5pg

I want Ambak on a BBQ medium rare, with BBQ sauce.

Cheers,
Misean | 03.28.08 - 11:01 pm | #

El Cliffo writes:
"And we will all go together when we go.
What a comforting fact that is to know.
Universal bereavement,
An inspiring achievement,
Yes, we will all go together when we go."
--Tom Lehrer
El Cliffo | 03.28.08 - 11:17 pm | #

zackattack writes:
These fretful days, I am coming to appreciate the diversification value of good red wine as an asset class.
zackattack | 03.29.08 - 8:08 am | #

energyecon writes:
zack,

Good red wine, fine single malt scotch and Macanudos... :-)
energyecon | Homepage | 03.29.08 - 9:00 am | #

weepstah writes:
mw,

Interesting that you should mention pianos dropping. I've thought of the whole leverage thing in more mechanical terms. For example, through a system of ropes and pulleys (I'm no expert), one person would be able to lift a very heavy object by spreading the effort across subsections of the system.

Of course, if there are failures of key components in the leveraged system, then a piano falls on your head.

IMO, at the moment it's raining pianos.

weepstah
weepstah | 03.29.08 - 9:40 am | #

Bob_in_MA writes:
If anyone is interested in Muni bonds, some of the issues FGIC (and AMBAC and MBIA) have underlying (before insurance) ratings of as high as AA. So even if you discount the insurance to nothing, they are still high-grade bonds. Yet the market is still pricing some of these as if they were suspect. You can go to Moody's site and find the underlying rating.
Bob_in_MA | 03.29.08 - 9:57 am | #

Anonymous writes:
Great, now that JJ is in his manic phase again we'll be forced to tolerate his broken-record hysterics.

What gives CR?
Anonymous | 03.29.08 - 11:01 am | #

curmudgeonly troll writes:
Runoff?

don't they have to post bond now that they're below investment grade?

presumably unable, aren't they in default like ACA?
curmudgeonly troll | 03.29.08 - 11:08 am | #

black dog writes:
Speaking of coyotes and dynamite.

Brings back a Paul Harvey story from years ago. A coyote was wreaking havoc on a rancher's livestock. When he finally trapped the animal he was so incensed that he strapped dynamite to the critter and let him loose and proceeded to watch him run(and after that great well timed pause of his)...under his brand new pickup.

"And now you know…the rest of the story."
black dog | 03.29.08 - 11:56 am | #

zackattack writes:
One generic thing that disturbs me about this is that these announcements are always made after the close, on a Friday night, preferably before a long weekend.

If, however, there was *good* news, you can be sure it'd be used to target shorts by being announced before the open, on a triple-witch day, in coordination with some other Fed or Treasury policy statement.

You catch this sometimes in the attitude of someone like a Sheila Bahr - it's as though TPTB actually believe shorts are the problem, not the actual fundamentals.
zackattack | 03.29.08 - 12:34 pm | #