Cramer stands by his call on Obama Policy hurting markets…

Airtime: Mon. Mar. 9 2009 | 11:50 AM ET

Mad Money host Jim Cramer  CNBC’s Erin Burnett.

Cramer stands by his call on Obama Bear Market

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March 9, 2009. Tags: , , , , , , , , , , , , , , , , , . Economy, Finance, Obama Administration, Politics, Popular Culture, TARP, Taxes, Uncategorized, Wall St. 1 comment.

Market Update: Another Manic Monday…

We have changed direction 20 times so far today, seesawing on all the averages..

the uncertainty, fear (and loathing toward the markets from Team Obama) are palpable…

DOW down 72 now to 6555, S & P down 6 to  677 NAS down 21 to 1272..

Team Obama needs to get out out of the way of the free markets, particularly if Summers wants demand to rise….

March 9, 2009. Tags: , , , , , , . Economy, Music, Obama Administration, Popular Culture, Taxes, Uncategorized, Wall St. Comments off.

Saturday Night Live: Geithner Cold Open

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March 9, 2009. Tags: , , , , , , , , , , , , , , , , , , . Cabinet, Economy, Finance, Obama Administration, Politics, Popular Culture, TARP, Taxes, Uncategorized, Wall St. 1 comment.

Summers and Brown Push for Coordinated Global Stimulus Plan…

Airtime: Mon. Mar. 9 2009 | 8:34 AM ET The answer to the world’s economic woes is a coordinated stimulus plan.(says UK PM Brown and Larry Summers)  Debating whether it is time for one, with CNBC’s Steve Liesman & Dennis Kneale.Vodpod videos no longer available.

From the interview with Summers in the FT:

Barack Obama’s top economic adviser has urged world leaders to pump more public money into the economy in a co-ordinated effort to boost demand and lift the world out of recession.

In an interview with the Financial Times, Lawrence Summers said the urgent need for a short-term increase in spending by governments temporarily overrode the longer-term goal of tackling the global imbalances many economists believe caused the financial crisis.

Spend says Summers, spend like the wind!!! print more money, issue more buy buy….Good Grief….prepare for the Fed to monetize our debt…which will of course sooner or later lead to..hyperinflation! oh good, something to look forward to…WOTS is Summers gigantic EGO keeps Volcker out of any meaningful role…and Tiny Tim is totally overshadowed, but it doesn’t really matter since Timmeh spends all his time at Health care summits and other crxp doing anything but rolling out the damn financial plan for the banks….

His comments, ahead of next month’s crunch G20 summit in London, make it clear that the US administration wants industrialised nations to share responsibility for engineering a global demand-led recovery and does not believe this burden should fall on China alone.

“The old global imbalances agenda was more demand in China, less demand in America. Nobody thinks that is the right agenda now,” said Mr Summers.

“There’s no place that should be reducing its contribution to global demand right now. It is really the universal demand agenda.”

While the US and other western nations should return to living within their means in the medium term, everyone should raise spending sharply now.

The right macro-economic focus for the G20 is on global demand and the world needs more global demand,” said Mr Summers

Here’s a question, if Team Obama is raising taxes on everyone either directly with cap gains or indirectly with cap and trade, where the FRAK do they think the American demand will come from??  UNFRAKKINBELIEVABLE.

Sounds like an FT reporter asked Summers just that but unsurprisingly didn’t get a coherent response, because of course, there is none, the tax policy is counterproductive:

He put up a robust defence of the administration’s focus on tackling historically high rates of inequality in the US. But he insisted the underlying aim should be to restore the capitalist market system to health.

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March 9, 2009. Tags: , , , , , , , , , , , . Cabinet, Economy, Finance, Obama Administration, Politics, Taxes, Uncategorized, Wall St. 2 comments.

Bank of America – Merrill Bonus Smackdown Continues….

Cuomo and Frank send letter of demand to Ken Lewis..

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March 9, 2009. Tags: , , , , , , , , . Economy, Finance, Obama Administration, Politics, Popular Culture, TARP, Taxes, Uncategorized, Wall St. 1 comment.

Deputy Treasury Secretary Nominee Rodgin Cohen, AIG, Goldman Sachs and “What’s Really Scaring Wall St.”

Airtime: Fri. Mar. 6 2009 | 5:04 PM ET The inside scoop of what’s happening at the Treasury, with CNBC’s Charlie Gasparino.

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Kudlow and Gasparino are pretty excited here about WOTS that Rodgin Cohen is being vetted for Deputy Treasury Secretary. WSJ is also excited about it. But several noted voices on the street have a totally different view and note connections to the counterparty risk on AIG ie Golden Slacks, and really can’t we all agree until AIG counterparties are released to the public no more GS employees running Treasury, please?

A MUST READ is Barry Ridholtz’ piece in the Big Picture:

My recent tirade against bailing out the hedge fund half of AIG makes much more sense when you consider who is actually getting all of the taxpayer largesse: Counter-parties of AIG, especially one Goldman Sachs. Some estimates have been in excess of $25 billion to GS.

As AIG ran into the arms of the Fed for the first of 4 bailouts, Bloomberg reported:

“As much as $37 billion from federal bailout loans to American International Group Inc. has gone to investment banks including Goldman Sachs Group Inc., the firm Treasury Secretary Henry Paulson used to run.


Could Goldman Sachs dig in any deeper at Treasury?

Yes they can. Over at naked capitalism, Yves has the story of yet another highly conflicted Treasury nominee, Sullivan & Cromwell chairman H. Rodgin Cohen:

Sullivan & Cromwell has long been the outside counsel for Goldman, and outside counsel is a vastly more important role for a securities firm than just about any other type of business. In the stone ages, when I worked for a few years at Goldman, certain S&C partners had so much clout at Goldman that they could get a mid-level banker fired. And even then, “Rodg”, head of the banking practice, was a very influential figure at Goldman.

All for the greater glory of Goldman . . .

From Naked Capitalism:

So Cohen is not only deeply tied to entrenched interests, but he plays a ruthless game, with a mild manner that would lead you not to suspect him of that sort of behavior.

In case you think this reaction is extreme, some e-mail comments from reader Marshall:

We should operate from the assumption that Geithner will always surround himself with the most awful Wall Street cronies imaginable. He’s totally captive to that ideology. This Administration is going to make Warren Harding’s Administration seem like a convention of nuns by comparison.

WSJ has another view entirely:

The news shook us like a thunderclap: banking-lawyer-extraordinaire H. Rodgin Cohen is being considered for a high-ranking role in the Treasury Department. A move would likely mean a departure — at least for now — from Sullivan & Cromwell, where the legendary Cohen has hung his hat for nearly 40 years.

Reports WSJ: “Treasury has identified and is vetting other people for top slots, including H. Rodgin Cohen, chairman of Sullivan & Cromwell LLP and advisor to virtually every firm on Wall Street, for the deputy secretary position, two people familiar with the matter said.”

We placed a call to Cohen, but have yet to hear back.

As noted in this WSJ profile of Cohen last year, he spent one stretch of the fall —“five weeks in hell,” as he put it — advising Fannie Mae, Lehman Brothers., Wachovia, Barclays, AIG, J.P. Morgan and Goldman in a “blitz of mergers, rescues and cash infusions.” Largely for this, he was awarded a, um, highly-coveted slot as one of the LB’s newsmakers of the year.

IOW Cohen knows where the bodies are buried because he helped bury them all.

There was a point at TARP One when it first failed the House when I wanted someone like that.  Not any more, not after the shxtstorm of plans coming down the pike in the Obama Budget, please no more raids.

We do feel under attack, because the middle class is taking it from both sides;  the top clutching their hands around the last vestiges of wealth, while the social engineers in the Capitol plan to take the secret ballot and unionize the country,  will we or nil we, leaving the middle class gasping for oxygen and space in the shrinking economy. Where the hell is the non government GROWTH in the 10 yr Obama Budget?

If they would leave us alone we would buckle down and cut back and get through it like Americans always do, at this point I don’t want any more of their ‘help’, it mostly seems to involve injecting tons of liquidity into institutions that refuse to sell toxic assets for what vultures capital will pay, while the government shovels cash straight from the Federal Reserve with no taxpayer input via Congress, directly into the gaping maw that is the black hole known as AIG.

All to cover the counterparty losses to the very firms who wrote the stupid toxic instruments, ie Goldman Sachs.

Why don’t we call the bluff and try to go it alone now? After throwing 11 trillion in and seeing no end in sight the government needs to force the banks to sell the assets at whatever the vultures will pay, take the losses so we can get past this.

Clearly Team Obama, in their zeal for socialized medicine and welfare programs is afraid to look TOO socialistic upfront on the banks.

They like a more backdoor socialization model which they are working on the stimulus and budget levels, so they won’t do the ONE aspect of socialism that needs doing, taking the banks like the RTC did with Bill Seidman in the 80s selling off the bad paper and putting it back out healthy and whole…

Ironic no?

March 9, 2009. Tags: , , , , , , , , , , , , , . Politics. 1 comment.

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