Free Republic

Delays, leaks and high drama. The Stress Tests had Wall Street waiting with bated breath. But did the tests really deserve all the hoopla? Did the fact that the banks 'passed' mean that we can all breath a sigh of relief? In spite of the fact that the Bulls have taken the test results as an 'all clear' for another run up on the markets, I tend to be more skeptical. Why? Because a test isn't a test if you can negotiate your own results. To be honest, the fact that all the banks would pass was a foregone conclusion....

Chrysler is currently in bankruptcy court. Why? Well to hear the administration tell it, it was because some money-grubbing hedge fund put all the other investors as risk by refusing to go along with the solution the government proposed. And now that the whole mess has been forced into bankruptcy court, the terms may have to be changed, because unequal treatment of specific parties or investors is not permitted under bankruptcy law. So who was getting unequal treatment? Who was trying to skim the cream off of the top of the deal? Why the Obama Administration's major contributor the UAW,...

Blood & CircusesI know this is an economy-oriented blog, and believe me I will get there in just a moment. But there is something going on that's starting to feel (once again!) like the magician telling us to 'look over here' while the heart of the trick is going on somewhere else. Diversion tactics. That's how the magician awes and amazes us. That's how the military gains the element of surprise. And that's how governments, like ancient Rome, diverted the population from their misery (unemployment, hunger, homelessness, etc.) by providing them with such riveting entertainment that everything else just fades...

I cant' escape it. No matter where I turn I see news that makes no sense and has only a minimal attachment to reality - at least my reality. By that I mean the reality that I grew up with. The reality where America - the place I was born and raised - was a constitutional republic with a capitalist economic system. That's where I came from. That's my comfort zone. But now I'm not even sure we still have a constitution. If we do it must be in tatters. Today I read that my President is about to hand...

Like a magician who diverts our attention to his right hand while the trick is being performed with his left, the government continues to blow smoke about the AIG bonuses while the Federal Reserve produces money out of thin air. Yesterday the Fed moved to buy 300 billion dollars worth of longer-term Treasury securities in order to 'drive interest rates for home loans even lower'. This is the first time in 50 years that the Federal Reserve has purchased Treasury securities (although back then it was for different reasons). But since the credit markets still remain essentially frozen, driving down...

Last Week the banks were in fine form, driving the stock market rally. Suddenly, they're telling us they are doing much better and don't need any more government money - at least not right now. In fact, some of them are saying they wish they hadn't taken those TARP funds in the first place. Even CitiGroup is up 50% from its stock market low and says that now (after a 45 billion dollar infusion of cash from the government) it is one of the best capitalized banks in the world. Amazing! On Friday General Motors started telling us that they...

The stock market has been up for three days in a row (can anyone say Bear Market Bounce?). Apparently there is so much money sitting on the sidelines that investors will use any hint of good news to get back into the market. So What's the good news? Well, General Electric has had their AAA rating downgraded by Standard & Poors - Oh, wait! That's not good news. I know! CitiGroup and General Motors are about to be delisted from the Dow Jones Index (their price slide has been dragging down the average you see, so I guess that's good...

-Musings over my morning coffee - Looks like just another day in the alternate reality we are all participating in. I guess I should have bought Citi shares when they were still a buck a share (Dilemma - Buy stock or a candy bar? Hmmm?). They’re up about 40 cents a share today based on a statement from the bank CEO that Citi made a profit during the first two months of this year. Ironically enough, if you read deeper into the article you find out that the losses that would offset some (or all?) of the profit have not...

XXXXX DRUDGE REPORT XXXXX THURSDAY, OCTOBER 28, 1999 23:55:08 ET XXXXX IN LETTER, COMMISSIONER WARNS OF Y2K RISKS AT IRS "The quality of the IRS's inventory currently poses a high risk to the Y2K effort," IRS commissioner Charles Rossotti declared in a letter to House Ways and Means Committee chairman Bill Archer. The letter was obtained by INVESTOR'S BUSINESS DAILY. IBD's John Berlau reports in an exclusive set for Friday editions that the agency has not conducted a complete Y2K inventory in many of its centers and offices. And there are growing concerns over possible mistakes made at the IRS ...

The following is an excerpt from the Y2K white paper by Paula Gordon. You can read the full text HERE.         An Exchange Between Congressman Dennis Kucinich and Paula Gordon,         July 28th Panel on "Y2K and Emergency Preparedness",         George Washington University Conference on Y2K July 26 - 30, 1999 PAULA GORDON: I brought up in the last panel.... the hypothesis that         perhaps the reason the President and the Administration have not moved         forward on (Y2K) before (now is that they have made) a conscious decision         (not to do so). (They may have decided that) it ...

IEEE Year 2000 Technical Information Focus Group Open Letter to Congress on Year 2000 Liability Legislation The Institute of Electrical and Electronics Engineers, Inc. June 9, 1999 An Open Letter To: To:  Members, Senate Commerce, Science And Transportation Committee;       Members, Special Senate Committee On The Year 2000 Technology Problem       Members, House of Representatives, Com. on Science, Subcom. on Technology       Members, Committee on Government Reform, Subcommittee on Government          Management, Information, and Technology       Sponsors, "Year 2000 Readiness and Responsibility Act of 1999" (H.R. 775) CC: Mr. John Koskinen RE: Year 2000 Liability Legislation FROM: The Institute ...

The following is an excerpt from a y2k list I am subscribed to. It is probably one of the best expressions of questions I want ask of the Y2K pollies. Date: Tue, 14 Sep 1999 02:33:59 -0400 From: art welling Subject: WHY??? You know folks, I've about had it with this stupid "Three day storm" idiocy. Exactly what is stopping normal humans from asking the most obvious question possible when they hear this?? Are they (much cursing) morons? >>>>>>>>>>>>>> Him: "The Goobermint says I should have three days food on hand for Y2K just in case. That should be enough." ...