Obama throws the Tall Man under the bus…

As any Gen X-er can tell you, you gotta be really careful with the Tall Man…he comes back….

Volcker is back under the bus (for now). As we  noted here last November, Jamie Dimon among others killed the return of Glass Steagall once already (and I am in no position to challenge Jamie’s call on this, the CDS issue is much more problematic IMO, THAT is where they take the proprietary info and make bets against their clients IMO)…

After the EPIC FAIL in Massachusetts, Obama dragged Volcker out of the closet they were keeping him in and tried to look ‘tough’ on bankstas….that is of course short lived since Jamie and Blankfein funded Obama’s campaign….now the WH has rolled over and showed its belly to the bankstas for some more scratches….hard to have sympathy for Volcker, he is one of the fools who backed Obama early and made him look moderate as a result.

Charlie Gasparino has it at DailyBeast:

Barack Obama owes Paul Volcker a lot, but he apparently owes the fat cats on Wall Street even more. That’s the only reasonable conclusion that can be made from the president’s timely and, in some ways, bizarre about-face on the former Fed chairman’s plans to reform the financial industry and prevent another meltdown.

As first reported by the New York Post, Volcker’s bank-reform idea—the one trotted out by the president with Volcker standing at his side just hours after Republican Scott Brown won Teddy Kennedy’s seat and vowed to help crush Obama’s economic agenda—has been nixed in favor of a watered-down version that bank chiefs like J.P. Morgan CEO Jamie Dimon and other Obama supporters on Wall Street are advocating.

…Sources tell me a coalition of Wall Street heavyweights from Dimon to people like Larry Fink, the head of money-management powerhouse BlackRock—Obama supporters all—made their opposition to the plan well-known to the administration. The message was clear: Wall Street, which helped elect Barack Obama with an unprecedented support for a Democratic presidential candidate (Goldman Sachs was the second largest contributor to the president’s campaign), was ready to start backing the opposition of the so-called Volcker Rule….

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February 26, 2010. Tags: , , , , , , , , , , , . Finance, Obama Administration, Politics, Popular Culture, Wall St. 5 comments.

The bizarre Paul Volcker ‘interview’ with CNBC

Everybody knows (as Leonard Cohen would say), that Team TOTUS is using Volcker for his name and persona and not listening to him at all. Volcker cant handle the truth! Watch the BIZARRE tete a tete with Maria Bartiromo and the analysis from Kudlow and Co…

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November 3, 2009. Tags: , , , , , , , , , , , . Economy, Finance, Obama Administration, Politics, Taxes. 2 comments.

Brace for Impact: Team TOTUS comes out for extension of homebuyer tax credit

Update: Marty Feldstein agrees with MiM on the GDP and double dip  (too bad he endorsed Obama and later let himself be used as a tool like Volcker)

Third-quarter growth “was boosted by the various fiscal stimulus policies,” Harvard University professor Martin Feldstein said in an e-mail. “The danger remains of a serious slowdown after this and a possible double dip” of the economy in 2010, he said.

*Montage by Delta1111111

In an apparent  reversal of  sentiment from that expressed by HUD chief Shaun Donovan in his testimony to Congress just weeks ago when he said it was very expensive, the WH is endorsing the extension of the homebuyer tax credit (details at end of post).

IMO this policy reversal, combined with TOTUS’ failure to laud the GDP data today (he merely commented that he is not satisfied as Americans need work) can mean only one thing.

The internal economic projections of the WH team led by Romer rolling stimulus expectations waaaay back last week, are WAY WAY WORSE than expected. They see the double dip coming and are trying to get in front of it with more stimulus spending in an extended homebuyer tax credit which will do what clunkers did,  cannibalize future sales and leave a wider gap in the future with additional deficits.

So MiM’s forecast for artificial GDP bumps in 3Q and 4Q  ’09 may need to be extended into 1Q 2Q 2010 if they are going to keep throwing money at anything that will give a temporary boost to GDP. Of course the coming tax hikes they are building into the system with the deficit they are growing will CRUSH our economy for years to come but that seems to be beyond their timeline, and thus not their concern.

Clearly the goal is political with everything they do, I guess that comes from Rahm. But that being said, I would expect they are playing dice hoping to keep GDP artificially high going into 2010 Congressional mid terms.

Of course since it is not organic GDP growth jobs are not coming with it so I don’t see the payoff in this policy unless they think Americans will look at stock markets and GDP and feel happy despite being unemployed and foreclosed upon? DOW right now, 3:14 pm up 200. It is high on sugar and our economy is a diabetic on dialysis over here! Today is the anniversary of the 29 collapse btw…there was a HUGE rally after that followed by the utter collapse of the economy as a CNBC guest notes now…HA he said sugar high! I said that! I will add this video when CNBC posts it 🙂

Question is, can they pull off this GDP stimulus spending for that long while simultaneously driving down the dollar without a total collapse of our economy from the CRUSHING deficit? We shouldn’t have to even pose that question. This is like giving the car keys to a raging alcoholic after an open bar at their ex’s wedding.

Doubling down on bad medicine.  I am past girding, I am bracing for impact (sadly no Sully at the wheel, we have Pelosi and Reid)..

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Original Post: In an apparent  reversal of  sentiment from that expressed by HUD chief Shaun Donovan in his testimony to Congress just weeks ago when he said it was very expensive, the WH is endorsing the extension of the homebuyer tax credit:

The nation’s top housing official expressed doubt over the need to extend the $8,000 tax credit for first-time home buyers, and said that the Obama administration was reviewing whether the additional cost of extending the credit was worth any benefit in home sales.

Shaun Donovan, the secretary of the Department of Housing and Urban Development, told a Senate hearing on Tuesday that there was “clear evidence” that the tax credit had benefited the housing market. But he said that the “real issue” in considering an extension was whether an extension was worth the cost to the government in lost tax revenue.

The actual cost of the credit won’t be known “until Americans have filed their tax returns,” he said. “And so, we feel it’s very important within the administration that we gather as much data as we possible can in advance of that before we make a final decision.”

This was just 2 weeks ago folks!

Mr. Donovan said that he understood that the impending expiration of the tax credit meant that the administration needed to make a decision soon so that the market could plan accordingly. Mr. Donovan said he didn’t believe a “catastrophic decline” in home sales would result if the tax credit were allowed to expire on Nov. 30, though he said that an expiration could have some “negative implications” for the market….

And today they send out Geithner to say EXTEND THE TAX CREDIT!

Bloomberg:

The Obama administration endorsed plans to extend an $8,000 tax credit for first-time homebuyers, saying it is helping stabilize the nation’s housing market.

The tax break, enacted earlier this year as part of an economic stimulus package, has “brought new families into the housing market and contributed to three consecutive months of rising home prices,” Treasury Secretary Timothy Geithner said today in a statement. The tax break will expire Nov. 30 unless Congress intervenes.

Senate Democrats have announced plans to extend the credit until April 30 while expanding it to include higher-income Americans and some who already own homes.

Senate Finance Committee Chairman Max Baucus said today the new plan would offer a $6,500 credit for homebuyers who have lived in their prior residence for at least five years. Couples earning up to $225,000 and individuals up to $125,000 would qualify for the break, Baucus said. That’s up from the current $75,000 limit for individuals and $150,000 for couples.

“The success of the American economy is closely tied to the success of the housing market – by helping to stabilize the housing market, the homebuyer tax credit has helped to shore up the economy as it begins to recover,” said Baucus. “This would enable an even greater number of potential homebuyers to take the credit.” Millions of renters earn more than $75,000, he said.

Here’s a question for good ole Max who initially balked at this spending: What will happen to all those rental property owners whose tenants you claim will buy houses? What about the people who work for those property owners? Unintended consequences. All the government can do is steal one man’s profit and give it to someone else. They do not CREATE anything. Only private capital CREATES JOBS. My God I sound like Larry Kudlow. My dad is smiling in heaven.

Democrats have been pushing to include the provisions in an unemployment benefits bill, which has been held up by a disagreement with Republicans over other proposed amendments….( read the whole thing).

October 29, 2009. Tags: , , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. 4 comments.

Making Their Move against the Fed: Bernanke under fire on BofA/Merrill: Email trail…

Okay Ben is under attack, and like it or not, with him the independence of the Federal Reserve. These emails were  leaked to CNBC by Congressional Investigators.

Our previous posts on Thain/Lewis here and here and here

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Insight on the emails leading up to the Bank of America-Merrill deal, with CNBC’s Scott Cohn; Joe diGenova, diGenova & Toensing; and CNBC’s Rick Santelli, Charlie Gasparino & Larry Kudlow.

Team TOTUS would like nothing better than to get Larry Summers in there in 2010, and Congress is lending a helping hand, issuing subpoenas and scheduling hearings, taking testimony from Ken Lewis. AG Cuomo was all over this commensurate with his role as NY AG in training to be Governor…this is going nowhere good…

Happier Days

Happier Days

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June 10, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , , . Economy, Finance, Obama Administration, Politics, TARP, Wall St. Comments off.

Paul Volcker says capitalism will survive ‘in most respects’….

Paul, please stop talking now..between you and Greenspan having ‘epiphanies’ we are all wishing you guys would RETIRE TO A MONASTERY AND TAKE A VOW OF SILENCE..

Every word gives Team Obama more room to dismantle all we know….

February 20, 2009
Paul Volcker
Columbia University

February 21, 2009. Tags: , , , , , , , , , , , , . Economy, FDIC, Finance, Obama Administration, Politics, Popular Culture, TARP, Unemployment Statistics, Wall St. 2 comments.

Breaking Update:Treasury says nationalization rumours false….3: WH says private banking in US will continue…markets climb back…Markets: slip sliding away….Dow down 200…

UPDATE 4: 3:55 PM EST: WOW! Geithner got Cramer’s and market’s message alright: Treasury just released a statement: “should not regard rumors as indication of Administration’s policy…we will preserve financial system owned and managed by private sector”. Hey is Senator Dodd a rumormonger then or what?? BWAAAHAA frakkin maroons! Uh oh, Liesman and Dylan Ratigan discussing whether Administration is playing semantics with us and they may still take partial control..great….

DOW bouncing all over, all day, closes down 100 to 7365 S&P us down 8 to 770

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February 20, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , , , , , . Economy, Entertainment, Fantasy, Film, Finance, Foreclosures, Housing, Labor Department, Politics, Popular Culture, Sci Fi, TARP, Uncategorized, Unemployment Statistics, Wall St, Warner Bros.. 3 comments.

Dow Futures Down on Durable Goods..Home for the Holidays

UPDATE: 4:40 pm EST: Dow closed up 247, NAS up 67 to close over 1500 WOOHOO and S&P up 30.

Have a Happy Holiday!

DOW futures down sharply on the biggest drop in Durable Goods Orders in two years, down 6.2%.

A surprise pop in Personal Income up 0.3% is offset by the drop in Consumer Spending, down 1% in October

The first time Jobless Claims fell 14,000 to a moving avg of 529,000 last week…

The incoming Administration announces Paul Volcker will head up a new economic advisory panel and Austan ‘NAFTA’ Goolsbee will be the policy director of the panel…

Enjoy the Holiday!!

November 26, 2008. Tags: , , , , , . Cabinet, Economy, Finance, Obama Administration, Wall St. Comments off.

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