Still Government MotorsIn short, GM is using government money to pay back government money to get more government money. And at a 2% lower interest rate at that. This is a nifty scheme to refinance GM's government debt--not pay it back!GM boasts that, because it is doing so well, it is paying the $6.7 billion… Continue reading Today’s word is "corporatist"
Though our example takes the concept to a whole new level."General Motors used bailout money to pay back the federal government."RTWT: Borrowing from Peter To Pay . . . uh, PeterGovernment Motors took lots of money from your left pocket. Then it took some more from your right pocket and put that into your left… Continue reading Today’s word is "fungible"
Joe Nocera, writing in the New York Times yesterday, explains why Wall Street is to blame for the financial crisis: A Wall Street Invention Let the Crisis MutateEvery time you pick up another rock along the winding path that led to the financial crisis, something else crawls out. Subprime mortgages were sold as a way… Continue reading Necessary, but hardly sufficient
Ally Bank is probably as well known for paying overmarket interest rates on CDs with no early withdrawal penalties as it is for its commercials featuring cute children who are cruelly deceived by a smarmy adult. The commercials are very good, here is one example."Even kids know it's wrong to hold out on somebody. Why… Continue reading Swindlers and looters and their allies
...or without representation period, if you think about it.Jeff Jacoby in the Boston Globe: Lawmakers, read the bills before you vote...Steny Hoyer thought it was hilarious.Hoyer, a Maryland Democrat, is the majority leader in the House of Representatives. At a news conference last week, he was talking about the healthcare overhaul being drafted on Capitol… Continue reading Taxation with corrupt representation
...and an apology from the State of New York, the State of Connecticut, Congress, the President and the Department of the Treasury.Letter to the New York Times.The following is a letter sent on Tuesday by Jake DeSantis, an executive vice president of the American International Group's financial products unit, to Edward M. Liddy, the chief… Continue reading Jake DeSantis deserves a standing ovation
Principle, ladies and gentlemen of the GOP, principle. Principle is what is needed from the Republicans in the House to stop the looting. Today the Democrats propose to loot a few fat-cats we've been told to depise. Their leader has proposed to loot all of us. Connect the dots! It's not complicated.The Democrats are about… Continue reading G. O. P. 6
There has been some question about the truth of the Obama Administration's charge that Senator Chris Dodd is responsible for a TARP provision specifically allowing the AIG bonuses. Obama's people are calling it the "Dodd Amendment," Dodd's people are implying it was the White House and the House of Representatives who let AIG get away… Continue reading The Administration Rejects Plunder ??
The AIG bonus structure was disclosed over a year ago, before the Bush TARP plan and long before Obama added $30 billion to AIG's portion last month. It didn't bother him then that AIG had retention bonuses coming up.It also didn't bother Senator Chris Dodd, who now wants to tax away 90% of the bonuses… Continue reading An Impotent Gesture
It's your money in the "government cash infusion," and it's your house value they artificially inflated and then artificially crashed. It's also your 401k that's in the tank because of these guys. From the WaPo. Emphasis mine.Fannie Mae, the District-based mortgage finance giant taken over by the government in September, yesterday reported a loss of… Continue reading Franklin, Tim, Jim and Barney the Purple Guarantor