Pelosi: BushCo Barred Officials From Briefing Congress Pre-'08 Financial Crisis

By GottaLaff

So far, when it comes to legal repercussions for their thuggery, BushCo has skated. Worms like John Yoo, Dick Cheney, Donald Rumsfeld, and Bush himself are free to write books and spew their toxic venom all over the Tee Vee Machine while America (and what's left of its Constitution) has suffered immensely.

There have been no consequences for holding and torturing hostages at Gitmo and elsewhere, for spying on Americans, for outing a CIA agent, etc., ad nauseam.

Will there be any for this?

Nearly two years after the Wall Street meltdown drove the U.S. economy to the brink of collapse, and forced the U.S. government to prop up major financial institutions with hundreds of billions of dollars, House Speaker Nancy Pelosi now claims that the Bush Administration prohibited its own top officials who were handling the emerging crisis from briefing Congress until a complete financial collapse was only hours away.

In little-noticed statements to reporters over the last few weeks, Pelosi has alleged that the Bush administration knew well in advance of its intervention that the financial crisis would hit, and that Congress would need to authorize a historic and unpopular bailout - but that top officials, including then-Treasury Secretary Henry Paulson, told her that they had been barred from briefing Congress about true extent of the crisis.

If accurate, the allegation could constitute a major indictment of the Bush administration, which may have worsened the crisis and resulting economic fallout by delaying the call for congressional action.

IMHO, with the economy still slogging through a sluggish recovery, the national state of mind could very well default to blame mode and demand a full investigation. One can only hope. And of course, that's only if this story gets media attention.

Will BushCo be excused because it's difficult to prove intent, or because there is no appetite to go after them?

Nor is it clear if the Administration's alleged decision not to brief Congress earlier was a calculated strategy to avoid spooking the already shaky financial markets thus hastening the crisis or, as Pelosi suggests, a political calculation in advance of the 2008 presidential elections, or a combination of the two.

There's much more here. TPM did a great job reporting this.

UPDATE: Bush and Paulson spokesperson fire back.

H/t: hapkidogal

Frank Luntz’s New Talking Point: “Checkbook Tax”

By GottaLaff

I have a talking point for Frank Luntz: Shut up. I doubt he'll include that one in his memos, though. He's too busy making up new misleading catch phrases that will be picked up by candidates which will then be picked up by punditiots which will then be picked up by news dee jays.

And that's how Frank's shiny new talking points become part of the political lexicon:

Since when have corporations ever paid taxes, fees or penalties? Employees end up paying in the form of lower salaries and benefits. Customers end up paying in the form of higher costs.

And in this case, every account holder will be forced to pay higher fees on their checking account and savings account. That’s you, my friendly reader. Can you say “checkbook tax”? I can, and I think lots of candidates will be saying it come November.

What was once the ever-popular “taxpayer-funded bailouts,” which is dead wrong, will now be "checkbook tax":

[H]e’s replaced it with the new claim that taxpayers will still pick up the tab when big institutions pass on costs in the form of a “checkbook tax.”

Watch for it on a Tee Vee Machine near you!

Republicans Poised to Allow Senate Debate on Financial Overhaul Bill

By GottaLaff

All I've gotten so far is a news alert from Fox:

Republicans Poised to Allow Senate Debate on Financial Overhaul Bill

So forcing the Party of No to actually stand up and filibuster in front of the whole wide world worked. Remember this day, Dems.

UPDATE, via another e-mail:

	WASHINGTON (AP) Republicans say they are ready to allow financial overhaul bill to be debated in Senate.

UPDATE:

Sen. Richard Shelby, the top Republican on the Senate Banking committee, said he has assurances that Democrats will adjust his banking regulation bill to address concerns that it perpetuates bailouts. [...]

But McConnell and other Republican critics are now focusing their objections on Dodd's proposal to create a Consumer Financial Protection Bureau within the Federal Reserve.

GOP +1 block financial reform bill for third time

By GottaLaff

Here's all you really need to know:


The Party of No, plus Nelson.

Third Senate Test Vote on Financial Overhaul Bill Fails 56-42

Between meeting in back rooms with the Big Bankers, and showing America who their real BFF are by refusing to allow financial reform, all the Rushpublics are doing is exposing themselves to be the obstructionists they are... all while reminding everyone who pays them to be that way.

Keep those votes coming, Dems.

UPDATE: Claire McCaskill makes a good point. She just said on MSNBC that the GOP pretends they don't want to block the bill, while they block the bill.

ENTIRE VIDEO: President Obama calls for Wall St. reform

By GottaLaff

Visit msnbc.com for breaking news, world news, and news about the economy

Voila.

President Obama: "We also need reform in Washington."

By GottaLaff

Here are a few excerpts from President Obama's financial regulation speech:

Now, there is a legitimate debate taking place about how best to ensure taxpayers are held harmless in this process. But what is not legitimate is to suggest that we’re enabling or encouraging future taxpayer bailouts, as some have claimed. That may make for a good sound bite, but it’s not factually accurate. In fact, the system as it stands is what led to a series of massive, costly taxpayer bailouts. Only with reform can we avoid a similar outcome in the future. A vote for reform is a vote to put a stop to taxpayer-funded bailouts. That’s the truth.[...]

I’ll close by saying this. I have laid out a set of Wall Street reforms. These are reforms that would put an end to taxpayer bailouts; that would bring complex financial dealings out of the shadows; that would protect consumers; and that would give shareholders more power in the financial system. But we also need reform in Washington. And the debate over these changes is a perfect example. [...]

But I believe we can and must put this kind of cynical politics aside. That’s why I am here today. We will not always see eye to eye. We will not always agree. But that does not mean we have to choose between two extremes. [...]

I read a report recently that I think fairly illustrates this point. It’s from Time Magazine. And I quote: “Through the great banking houses of Manhattan last week ran wild-eyed alarm. Big bankers stared at one another in anger and astonishment. A bill just passed … would rivet upon their institutions what they considered a monstrous system… Such a system, they felt, would not only rob them of their pride of profession but would reduce all U.S. banking to its lowest level.” That appeared in Time Magazine – in June of 1933. [applause, laughter] The system that caused so much concern and consternation? The Federal Deposit Insurance Corporation – the FDIC – an institution that has successfully secured the deposits of generations of Americans. [...]

Ultimately, there is no dividing line between Main Street and Wall Street. We rise or we fall together as one nation.

I'll post the video when it becomes available.

Dow closes above 11,000 for first time since ’08

By GottaLaff

You realize what this means, don't you? President Obama is a socialist!

A loan agreement for Greece and a handful of corporate takeover announcements nudged the stock market higher. The Dow Jones Industrial Average closed about 11,000. [...]

Meanwhile, the latest round of corporate dealmaking signaled that business leaders are more confident about a recovery. [...]

The Dow is coming off its sixth straight weekly gain.

The Nasdaq composite index rose 3.82, or 0.16 percent, to 2,457.87.

What a shame big corporations are suffering under this president. And that Recovery Act, what a bomb!

Follow the link for details.

CBS: No Criminal Charges Likely in AIG Collapse

By GottaLaff

The the criminal case against the so-called "the Man who Crashed the World" has apparently "hit a brick wall." They can't prove that he lied about AIG's financial problems.

I've heard many a lawyer say that proving a lie is not easy. This proves that proving is not always prove-able.

Well, you know what I mean.

Why must brick walls so often get between us and the (alleged) thugs?

CBS NEWS has learned that former AIG executive Joseph Cassano - the prime focus of the investigation into its collapse - will meet with Department of Justice attorneys next week in what will likely be an end to the two year criminal investigation into the company.

Now back to the Tiger Woods coverage already in progress.

Quickie: Dodd calls for Lehman Bros. investigation

By GottaLaff

Today's Quickie:

Senate Banking Committee Chairman Chris Dodd, D-Conn., is calling for a federal investigation into the "Lehman situation" and other companies that may have fudged their balance sheets, contributing to the financial crisis.

About time. I can't wait to see which Congress members defend Lehman.

That was today's Quickie. Was it good for you?

"Goldman Sachs is responsible"

By GottaLaff

I was listening to the Thom Hartmann Show today, and he had Dr. Ravi Batra on. Batra blamed Goldman Sachs for the economic crisis. As I recall, Matt Taibbi wrote a substantial article expressing similar sentiments. Batra's prediction for the economy? Long term: Very optimistic. Short term: After about a month of better news, we'll go into a Depression. Unemployment, unemployment, unemployment, plus same ol', same ol' seemed to be Batra's message, from the tiny bit I heard.

Now this:

Newsweek: "Goldman Sachs and JPMorgan Chase have reported huge profits, the Dow has made it past 9000, and Barack Obama has moved on to health care. The horror show seems to be over. But as in one of those clichéd Hollywood endings, the monster in this story isn't really dead, even if most people think he is. Lost amid all the premature self-congratulation is the fact that the deepest underlying problem that caused the financial disaster is not being solved."

I smell a consensus.

Jon Stewart rips financial networks

This was from Thursday I believe, but I forgot to put it up. Enjoy!

Geithner's Top Deputy Pick Withdraws From Consideration

By GottaLaff

Time to pull things together at Treasury, Team Obama:

Treasury Secretary Timothy Geithner's top pick to be his deputy withdrew from consideration Thursday, a setback for the agency as it confronts the worst financial crisis in decades.

Annette Nazareth, a former senior staffer and commissioner with the Securities and Exchange Commission, withdrew after several interviews and vetting of her financial history, a person familiar with Nazareth's decision said.

But this person, who spoke on condition of anonymity because Geithner never publicly named Nazareth as his choice, said no problems with her taxes or other issues arose. [...]

Nazareth's withdrawal from consideration comes as critics say Geithner's lacks the senior staff he needs to make critical decisions about the financial crisis. Not one of his top 17 deputies has been named, let alone confirmed.

Without senior leadership, lower-level Treasury employees can't make decisions or represent the government in crucial conversations with banks and others.

At a Senate hearing Thursday about failed insurance giant American International Group Inc. -- which has received four separate bailouts totaling more than $170 billion -- Sen. Chris Dodd said he had asked Treasury for someone to appear, but that no one was available.

UPDATE:

In addition, Mr. Geithner's pick for undersecretary for international affairs, Caroline Atkinson, has also withdrawn her name from consideration.

Bush SEC Holdovers Cite Exec Privilege In Stonewalling Congress About Madoff Scandal

Seems some fun stuff happened today in the Congressional hearings (skip to about 5:15). Another little tidbit from the whistleblower testmony-

A bombshell is buried in Harry Markopolos' prepared testimony to a House panel today: he contacted the Wall Street Journal on the Bernie Madoff fraud three years ago, and the newspaper did nothing.

I feel for the WSJ, it's never easy to admit your buddies are crooks.

Hey, financial institutions, give it back!

By GottaLaff

A few months ago, I was having a conversation in which I wondered aloud why the government couldn't cut outlandish bonuses, and/or temporarily and/or partially limit incomes of those greedy Big Biz types, given the dire state of the economy. I was sternly admonished, including being told that such a thing would be impossible.

I hung my head in shame and shuffled off to my room without supper. After all, as I've mentioned here previously, I admit to being woefully inept when it comes to discussing most things economic. So off I went, feeling like a fool.... until:

A day after President Barack Obama bashed bailed-out banks for giving huge bonuses, Sen. Claire McCaskill, (D-Mo.) proposed capping salaries for employees at companies accepting government funds.

“We must have our financial institutions survive but not with a culture that thinks it’s all right to kick the taxpayer in the shins,” she said in a Senate floor speech.

McCaskill introduced legislation that would forbid employees at firms collecting government funds from collecting more than the $400,000 salary made by the president of the United States, until the company no longer relies on money from the $700 billion government rescue fund. The cap would include not only salary but also bonuses and stock options.

“If any of them think it is a hardship to take the salary of the president of the United States, I dare them to say it out loud right now,” McCaskill said. [...]

Senate Banking Committee Chairman Chris Dodd (D-Conn.) said he plans to “get back” billions of dollars worth of bonuses being paid out by financial services companies.

"I'm going to be urging — in fact, not urging but demanding — that the Treasury Department figure out some way to get this back," Dodd told reporters Thursday. "This is unacceptable.”

Thank you, Chris and Claire. I have been vindicated.

The best financial jokes of 2008

Excellent stuff. More here, but these are my favs. h/t Kathy.

"Get my broker, Miss Jones."
"Yes sir. Stock, or Pawn?"

The market may be bad, but I slept like a baby last night. I woke up every hour and cried.

The problem with investment bank balance sheets is that on the left side nothing is right and on the right side nothing is left.

How do you find a good small-cap fund manager?
Find a good large-cap fund manager, and wait

The credit crunch has helped me get back on my feet. The car's been repossessed.

There's a surgeon, an architect and an economist. The surgeon said, 'Look, we're the most important. God's a surgeon because the very first thing God did was to extract Eve from Adam's rib.' The architect said, 'No, wait a minute, God is an architect. God made the world in seven days out of chaos.' The economist smiled, 'And who made the chaos?'

(snip)

The United States has developed a new weapon that destroys people but it leaves buildings standing. It's called the stock market.

President Bush said clients shouldn’t be concerned by all the bank closings. If the bank is closed, you just use the ATM, he said.

Cartoon via the delectable Luckovich.

Victory for Republic Windows Workers: Bank of America to Extend Credit

One for the good guys.

CHICAGO – The creditor of a Chicago plant where laid-off employees are conducting a sit-in to demand severance pay said Tuesday it would extend limited loans to the factory so it could resolve the dispute, but the workers declared their protest unfinished.

The Republic Windows and Doors factory closed last week after Bank of America canceled its financing. About 200 laid-off workers responded by staging a sit-in at the plant, vowing to stay until getting assurances they would receive severance and accrued vacation pay.

Jon Stewart On The Detroit Bailout

The Daily Show With Jon StewartM - Th 11p / 10c

Autoerotic Explanation

Barack Obama Interview
John McCain Interview

Sarah Palin Video
Funny Election Video

Amen.

Obama On Bailout- Americans Need Assurances

CNN Poll: GOP takes brunt of blame for economy, Obama gains

Obama, his surrogates and we need to pound this home. Every damn day. Worst case scenario? Digby tells us.

WASHINGTON (CNN) – A new CNN/Opinion Research Corporation Poll suggests that by a 2-to-1 margin, Americans blame Republicans over Democrats for the financial crisis that has swept across the country the past few weeks — one factor that may have contributed to an apparent increase in Barack Obama’s edge over John McCain in the race for the White House.

In the new survey, released Monday afternoon, 47 percent of registered voters questioned say Republicans are more responsible for the problems currently facing financial institutions and the stock market, with 24 percent saying Democrats are more responsible. One in five of those polled blame both parties equally, and 8 percent say neither party is to blame.

The poll also indicates that more Americans think Obama, the Democratic presidential nominee, would do a better job handling an economic crisis than McCain, the Republican presidential nominee. Forty-nine percent of those questioned say Obama would display good judgment in an economic crisis, 6 points higher than the number who said the same about McCain. And Obama has a 10 point lead over McCain on the question of who would better handle the economy overall.

Senator McCain, We Thank You

Could you keep repeating this until November 4th please?

Q: In 1999, you were one of the senators who helped pass deregulation of Wall Street. Do you regret that now?

McCAIN: No. I think the deregulation was probably helpful to the growth of our economy.