The Wall Street Journal’s much-anticipated New York section arrived today, but your humble Seattle Audit bureau didn’t get it in his paper and hasn’t lived in New York for two years. So I’ll pass on a comprehensive review for now.
But one thing jumped out at me on the Web: The august Wall Street Journal is now running a police blotter. I kid you not. Here are the two items’s subheadlines:
Three-Year-Old Unharmed After Wandering Streets
and
Unidentified Body Found In Water Under Bridge
Can a horoscope be far behind?
— Teri Buhl and John Carney write for The Atlantic on how Deutsche Bank, a firm that you’ll be seeing scrutinized much more in the months ahead, did an Abacus-style deal with John Paulson.
This is presented as a scoop, which it’s not: The Wall Street Journal reported this stuff last Monday. Here’s the Atlantic’s lede:
Goldman Sachs was not the only investment bank selling the complex securities that ultimately resulted in staggering losses for the German bank IKB Deutsche Industriebank. Traders at Deutsche Bank sold similar collateralized debt obligations (CDOs) — built from credit protection on a portfolio of mortgage-backed securities selected in consultation with hedge fund manager John Paulson — to the German bank. And like Goldman, Deutsche Bank didn’t reveal Paulson’s role in the construction of the CDOs. So far, the SEC has not charged Deutsche with fraud relating to these transactions.
None of that is new, and the real news—which if true, seems like a good defense for Deutsche Bank—is buried in the ninth and tenth paragraphs:
Deutsche Bank’s head of communications Ted Meyer said he wouldn’t comment on specific client transactions. But he did say that the absence of a third party collateral manager distinguished the Deutsche Bank deals from Goldman’s Abacus 2007 deal.
“What distinguishes Deutsche Bank’s CDO transactions is that both long and short investors were given the opportunity to select the specific collateral to which they were seeking exposure and mutually agreed on the CDO portfolio. No third-party collateral manager was utilized for these deals, which eliminated the potential for deception with respect to the role of such a manager,” Meyer said.
Nevertheless, Buhl and Carney have the right idea here, and in chasing it they advance the story.
— Author John Steele Gordon has a knee-slapper in Forbes. Pretty much all you need to know is in the headline and subhed:
Wall Street Can Regulate Itself: History shows that the financial industry doesn’t need the government to help with reform.
Sure!
And he pushes the discredited line that Fannie Mae and Freddie Mac were “the political piggy banks at the heart of the crisis of 2008.” Uh, no, as McClatchy showed in 2008. Those guys need reformed, believe me, and they contributed somewhat to the crisis, but they weren’t at the heart of it.
A MONUMENTAL FRAUD EXPOSED
THE BIGGEST FRAUD EVER PERPETRATED ON THE AMERICAN PEOPLE BY THE REPUBLICAN PARTY, THE TEA PARTY AND OTHER CONSERVATIVES IS TELLING THE AMERICAN PEOPLE THAT THE NATIONAL DEBT IS THEIR DEBT, THEIR CHILDREN’S DEBT AND THEIR GRANDCHILDREN’S DEBT. THIS IS ABSOULTELY FALSE. THE GOVERNMENT’S DEBT IS THE GOVERNMENT’S DEBT AND NOT THE PEOPLE’S DEBT AND THE GOVERNMENT IS WELL POSITION TO EASILY MANAGE IT.
CONSIDER THESE FACTS: TOTAL ASSETS OF THE U.S. ECONOMY IS $188 TRILLION, THE NATIONAL DEBT IS $12.7 TRILLION WHICH IS ONLY 6.8% OF THE TOTAL ASSETS, ARTICLE 1, SECTION 8, OF THE CONSTITUTION GIVES THE FEDERAL GOVERNMENT THE POWER TO BORROW MONEY ON ITS ASSETS, THE POWER TO TAX, AND THE POWER TO CREATE MONEY.
HOW WOULD YOU LIKE TO OWE ONLY 6.8% OF YOUR NET WORTH AND YOUR ANNUAL INCOME, BE ABLE TO COLLECT TAXES FROM EVERYONE IN AMERICA AND BE ABLE TO CREATE MONEY? THAT’S THE STATUS OF THE FEDERAL GOVERNMENT, WHICH HAS THE MEANS TO COPE WITH ANY FINANCIAL SITUATION.
THESE CONSERVATIVES STAND IN THE WAY OF PROGESSIVE IDEAS, RAILING AGAINST BIG GOVERNMENT, TALKING ENDLESSLY ABOUT OPPOSING, ELIMINATING, AND MODIFYING ESSENTIAL PROGRAMS.
THE NEWS MEDIA SHOULD BE ASKING THESE PEOPLE WHICH OF THE FOLLOWING BIG GOVERNMENT PROGRAMS THEY WOULD DROP: THE ARMY, THE NAVY, THE AIR FORCE, THE MARINES CORP, THE COAST GUARD, THE CIA, THE SERCRET SERVICE, THE FBI, HOMELAND SECURITY, THE FDA, THE FAA, OTHER DEPARTMENTS OF THE FEDERAL GOVERNMENT, THE SUPREME COURT, ALL OF THE FEDERAL COURTS, THE INTERSTATE AND U.S. HIGHWAY SYSTEMS, THE POST OFFICE, MEDICARE AND MEDICAID, SOCIAL SECURITY, IRS, PUBLIC EDUCATION, AND THE HUNDREDS OF OTHER BIG GOVERNMENT INSTITUTIONS THAT HELP MAKE AMERICA GREAT AND WHICH WE CANNOT DO WITHOUT. AS YOU CAN SEE, BIG GOVERNMENT IS GOOD FOR THE COUNTRY NOT THE EVIL PORTAYED BY IGNORANT PEOPLE. REMEMBER, REPUBLICANS AND THEIR CRONIES OPPOSED SOCIAL SECURITY, CIVIL RIGHT, MEDICARE, AND ABOUT ALL THE PROGRESSIVE IDEAS OF THE PAST CENTURY.
IF YOU ARE LOSING SLEEP OVER THE NATIONAL DEBT, AND THINKING THAT SOCIAL SECURITY AND MEDICARE ARE GOING BROKE. GO BACK TO SLEEP. THAT WILL NEVER HAPPEN. IF YOU WANT TO WORRY ABOUT THESE THINGS, DON’T WORRY ABOUT THE MONEY PART. ANY DEFICET CAN BE MADE UP OUT OF GENERAL FUNDS.
THIS FRAUD ABOUT THE NATIONAL DEBT STANDS IN THE WAY OF THE GOVERNMENT SPENDING AS MUCH MONEY AS IT SHOULD TO EDUCATE, TO PROVIDE EMPLOYMENT, TO HAVE UNIVERSAL HEALTH CARE, TO KEEP A BALANCED MONEY SUPPLY AT ALL TIMES, AND TO PROVIDE GOOD HOUSING FOR ALL THE PEOPLE.
IT IS A SHAME AND DISGRACE THAT THE ONLY THINGS THE REPUBLICAN PARTY AND OTHER CONSERVATIVES HAVE TO TALK ABOUT ARE TAXES, THE MYTH ABOUT THE NATIONAL DEBT AND THE DEFICIT; AND SOCIAL SECURITY AND MEDICARE GOING BROKE. THEY SEEM TO NOT KNOW OR NOT CARE THEIR VIEWPOINTS CAUSE UNNECESSARY PANIC.
IN SUMMARY, YOU DON’T OWE A CENT ON THE NATIONAL DEBT AND THE GOVERNMENT IS NOT BROKE. BUT RATHER IS IN EXCELLENT SHAPE. YOU CAN BE ASSURED THAT WHAT ARE BROKE ARE THE REPUBLICAN PARTY, THE TEA PARTY, RON PAUL, CNBC NEWS, SARAH PALIN, RUSH LIMBAUGH, GLEN BECK, AND FOX NEWS.
READ MORE AT INTERNETFREEPRESS.COM
#1 Posted by JIM CARROLL, CJR on Tue 27 Apr 2010 at 10:02 PM
PLEASE GO TO THE INTERNETFREEPRES.COM AND READ WHAT I HAVE THERE AND CALL ME AT 865-470-2610 JIM CARROLL.
I HAVE BEEN ON THE FEDERAL RESERVE'S BACK FOR 40 YEARS.
READ ARTICLE 1, SECTION 8, OF THE CONSTITUTION. IT GIVES CONGRESS POWER OVER MONEY : TO TAX, BORROW AND CREATE MONEY. WE NEED TO TAX LESS, BORROW LESS, AND CREATE MORE. WITH THE FREE MARKET CAPITALIST RUNNING WILD, WE NEED GOVERNMENT TO BE BIG ENOUGH TO PUT THE TRAIN WRECK BACK ON TRACK WHEN IT RUNS OFF THE TRACK; AND IT SURE WILL. I HATE TO SAY THIS , BUT THE NEWS MEDIA HAS A MISCONCEPTION OF MONEY.
#2 Posted by JIM CARROLL, CJR on Wed 12 May 2010 at 09:34 PM
AN IDEA FOR BP: WHY NOT USE A DEVICE DESIGNED LIKE A TOGGLE BOLT THAT CAN BE PUSHED
DOWN TO THE BOTTOM OF THE HOLE AND THEN UNFOLD SO THE OIL PRESSURE WILL CLOSE
OFF THE HOLE? YOU CAN CHECK THE IDEA OUT WITH A WATER HOSE. YOU WILL NOT
NEEDED MUD OR PRESSURE OF ANY DEGREE TO INSERT IT INTO THE HOLE AND PUSH
IT THROUGH THE BOTTOM. YOU WILL NOT HAVE TO WORRY ABOUT RUPTURING
THE PIPE. PUT THE DEVICE ON A CABLE SO YOU CAN PULL IT BACK WHEN IT GOES
THROUGH THE HOLE AT THE BOTTOM OF THE WELL. YOU CAN MAKE THE DIAMETER
UP TO 25 % OF THE HOLE SIZE AND AS LONG AS NEEDED TO COVER THE HOLE AFTER
IT UNFOLDS. SAW THE PIPE OFF AND DROP IT IN THE HOLE AND PULL IT BACK
WHEN IT UNFOLDS. IF YOU DON'T THINK IT WILL WORK, YOU CAN TRY IT OUT
.ON A LAND WELL. SIMPLE IS BETTER SOMETIMES. IF YOU DO NOT KNOW WHAT A
TOGGLE BOLT IS, TRY AN UMBRELLA DESIGN. 5/10/10 READ MORE
INTERNETFREEPRESS.COM
#3 Posted by Jim Carroll internetfreepress, CJR on Sat 12 Jun 2010 at 02:37 PM
THE FEDERAL GOVERNMENT NEEDS TO CREATE SOME NEW MONEY, AND GIVE IT TO THE STATES SO THEY CAN BALANCE THEIR BUDGETS.
The states gave up their right to create money when they joined the Union. Article 1, Section 8, of the Constitution gives the right to create money. Why is the News Media so dumb? read more internetfreepress.com
#4 Posted by JIM CARROLL, CJR on Fri 9 Jul 2010 at 09:50 PM
You found the caps lock key! Congratulations!
#5 Posted by Thimbles, CJR on Sat 10 Jul 2010 at 02:25 AM