The Leftovers: Stuff You Can’t Make Up

13 Comments

1. 

   idredit on July 23, 2008 at 12:54 pm

   On the Economic front – Mugabe needs to make a deal

   Good News for Zimbabweans there’s real pressure to end the nightmare.

   The Guardian, UK

   The Zimbabwean government was today struggling to find enough cash to pay its workers, and more importantly the military, after it was forced to severely cut back on printing money because sanctions severed its supply of banknote paper from Europe.

   Paper money was already in desperately short supply because the state-run Fidelity Printers & Refiners in Harare was unable to keep up with the demand created by hyperinflation and rapid devaluation that had caused notes to lose almost their entire value within weeks of being issued.[.]

   On Monday, the central bank issued a $100bn note, the highest denomination to date but worth only about 7p, printed on what remains of stocks of the German-supplied paper.

   But can’t help but ask….

   Given all the money our Benny and Hank are printing and will continue to print to save the financial system, will we be immune to the Weimar Zimbabwe experience?

2. 

   Oui on July 23, 2008 at 1:26 pm

   .
   To reveal a secret, sometimes this takes a few years …

   ‘Netherlands Forced CIA Boss out in Spying Row’

   THE HAGUE, 13/06/08 – The head of the American CIA secret service in the Netherlands had to leave his job in 2005 in a dispute between The Hague and Washington on secret CIA operations, De Telegraaf reported yesterday. The espionage row has until now been carefully kept from the public in order not to put relations with the US under pressure, said the newspaper.

   De Telegraaf said the CIA ‘station chief’ involved left the Netherlands in 2005 after the heads of the Dutch security services lost confidence in him. The Dutch Intelligence and Security Services Supervisory Commission (CTIVD) was reportedly informed of the problems with the CIA behind closed doors.

   CTIVD chairman I.P. Michiels van Kessenich-Hoogendam confirmed that the problem was solved by the replacement of the CIA chief, De Telegraaf reports. Since the departure of the CIA official, relations have “substantially improved,” it added. The new American ‘station chief’ in The Hague apparently operates more diplomatically.

   The CIA carried out operations in the Netherlands that were not made known to the Dutch government. These included an investigation of the dissemination of nuclear technology to Pakistan. The AIVD secret service, the Dutch counterpart of the CIA, in this connection came across CIA activities that were not reported according to the rules applying.

   “This according to insiders led to a bizarre situation at a secret visit to the home of a Dutch businessman. Shortly after the AIVD had let itself in and installed microphones and cameras, a CIA team suddenly showed up that had entered the same property. The AIVD were therefore able to film their American colleagues,” wrote De Telegraaf. Thus the secret CIA activities emerged.

   "But I will not let myself be reduced to silence."

3. 

   dada on July 23, 2008 at 1:27 pm

   l wouldn’t bet on it. the benny and hank show now appears to have the peanut gallery behind it:

   Congress May Vote Today on Fannie-Freddie Rescue Plan

   Treasury Secretary Henry Paulson today said the bill will send a “very strong message” and is “key to helping us turn the corner” after a slide in confidence in the firms. The White House dropped a veto threat over a measure to buy up foreclosed properties, spurring Senate Majority Leader Harry Reid to predict both legislative houses may approve the legislation today.

   Paulson will get power to make unlimited equity purchases in and lend to Fannie Mae and Freddie Mac to prevent a collapse in the firms that account for 70 percent of new U.S. mortgages. The bill also provides for a federal agency to insure up to $300 billion of refinanced mortgages for struggling homeowners. Stocks rallied.

   :::

   It’s “really good news” that Bush removed his rejection warning, Reid, a Nevada Democrat, said today. He said the bill is “a very good piece of legislation,” and “I hope we can finish it today,” sending it to the president for signing into law.

   :::

   Lawmakers, intent on limiting potential losses to taxpayers, tied the potential aid to Fannie Mae and Freddie Mac to the federal debt limit. Still, they also raised that ceiling to $10.6 trillion from the current $9.815 trillion.

   via bloomberg

   “a very good piece of legislation”…if you’re a wall street banker or a 1%’er. conservatively, fannie and freddie are on the hook for about $6 trillion in home loans…a high percentage of them bad…the $25 billion estimate of the costs of this program is total BS.

   this is inside the beltway cya at a grand scale, with everybody and their left-handed dog praying to get past the election with their jobs and the economy, somewhat, intact.

   l wouldn’t take that bet with your money right now.

   • 

     idredit on July 23, 2008 at 2:26 pm

     Thanks Dada. what we have here is $25 billion to cover a $6 trillion exposure?

     They’ll print the trillions as we’re told it’s a short term loan …look to the due date for the roll forward…endless due dates behind and on top of our backs. (Roubini is the guy who called this debacle back in 2004, now he’s being chased for interviews)

     You have the ridiculous situation at the Fed discount window – opened wide for every animal – come and get it.

     Bank of America just announced a share buy back. With what funds? Have they repaid the Fed loan for the Countrywide deal?

     You have one guess.

     Hyper-inflation ahead.

     • 

       dada on July 23, 2008 at 3:01 pm

       yup, and it’s all smoke and mirrors.

       roubini, from yesterday:

       The housing bill, which earmarks $300 billion to backstop mortgages after lenders agree to lower mortgage payments, is “a step in the right direction” but “doesn’t do enough,” he says, predicting the government will ultimately need to spend more than $1 trillion.

       Roubini’s main concern stems from a view that the “housing recession is not bottoming by any standards,” in contrast to hopeful comments from Paulson on Fox News and Barron’s last weekend.

       The economist believes U.S. home prices will ultimately fall 30% from their peak — vs. 18% to date according to the S&P Case-Shiller Index — “before bottoming out some point in*2010*.”

       In the interim, the negative wealth effect of declining home values and increase in “underwater” mortgages will lead to more Americans walking away from their homes. Such “jingle mail” threatens to ultimately cost $1 trillion in credit losses, wiping out 75% of the capital of U.S. financial institutions, Roubini warns.

       It is that “disorderly” outcome Roubini says the government cannot afford to let happen. With “the charade” that Fannie and Freddie weren’t already government agencies over, he believes a nationalization of the 50% of mortgages not owned or guaranteed by Fannie and Freddie will be necessary, and the Frank-Dodd Bill is a small step down that road.

       From Roubini’s view, nationalizing housing avoids the government having to nationalization the entire banking system, making it the lesser of two evils.

       link w/ video

       [bolding mine]

       l don’t know about you, but nationalisation doesn’t sound like a good idea to me…maybe the energy infrastructure, but not housing. completely destroys any incentive for either party, the borrower, or the lender, to make it work.

4. 

   dada on July 23, 2008 at 1:54 pm

   so sayeth the 3rd circuit court of appeals with a stern rebuke aimed at kevin martin, chairman of the fcc:

   Super Bowl Fine Is Voided
   Court’s Indecency Ruling Trumps FCC

   A federal court…tossed out a $550,000 fine against CBS for the split-second television exposure of singer Janet Jackson’s breast during the 2004 Super Bowl halftime show.

   :::

   …a three-judge panel of the U.S. Court of Appeals for the 3rd Circuit in Philadelphia ruled that the FCC “acted arbitrarily and capriciously” in issuing the fine against CBS for the fleeting image of nudity. It said the FCC deviated from its nearly 30-year practice of fining indecent broadcast programming only when it was so “pervasive as to amount to ‘shock treatment’ for the audience.”

   “Like any agency, the FCC may change its policies without judicial second-guessing,” the court said. “But it cannot change a well-established course of action without supplying notice of and a reasoned explanation for its policy departure.”

   :::

   …the agency was considering appealing the ruling.

   via wapo

   score one for cbs and T&A.  damned activist judges…

   • 

     fbihop on July 23, 2008 at 4:37 pm

     Which brings us to Heather Wilson here in New Mexico and her “teary castigation” of Viacom:

     But that didn’t stop Heather Wilson. Her teary castigation of the president of Viacom, CBS’ parent company made headlines. Her statements at an FCC hearing were regarded by many as grandstanding. While she was lauded by some for standing up to indecency, critics said she turned in an overly dramatic performance, trying to court conservative voters in an election year.

     “I should not have to use an NFL halftime show as a negative example to teach my children,” Wilson said, sounding as though she were on the verge of tears. A sentence later, her voice went back to normal as she started in with “As a legislator…” Then she went back to teary as she took Viacom to task: “You wanted us all to be abuzz, here in this room, and on the playground of my kids’ school, because it improved your ratings. It improved your market share and it lined your pockets.”

     See the video here.

     • 

       dada on July 23, 2008 at 4:52 pm
       • 

         fbihop on July 23, 2008 at 5:21 pm

         I really recommend watching that video.  The local alt-weekly put it on their site and mocked her mercilessly for weeks. It was great.

5. 

   idredit on July 23, 2008 at 3:02 pm

   The Powers-that-Be are working hard to get oil pricing way down: High oil impacts the consumer-driven economy. Soooo we have these two headers – coincidence:

   Wealth of oil in Arctic, report says…

   the United States Geological Service has for the first time put some hard numbers behind the energy potential of the North and could add new urgency to the debate over control of those resources.

   [.]The survey suggests there is the equivalent of 412 billion barrels of oil throughout the Arctic, most of it off the coast of Russia.

   Hey, while we’re bogged down in Iraq and Afghanistan Russia planted its flag on the Artic’s ocean floor….

   and we could see this was coming….

   Congress Pursues $80 Oil With Trading Limits, Disclosure Rules

    “Speculators such as Goldman Sachs Group Inc. use the practices to bet on price swings, which may drive up prices, though they have no intention of taking delivery of underlying goods, lawmakers say.

   Any wonder why Goldman Sachs is objecting…they’re the  one company on Wall Street that manages to make huge profits no matter the market; up, down or flat. They also managed to avoid the sub-prime crisis. That’s some feat.

   Now just watch poor Golden Socks move their oil trades to London, Tokyo, Cayman, or Dubai.

   If we end the Iraq/Afghan wars, bring the troops home…oil will be back to $35/bbl.

   • 

     Oui on July 23, 2008 at 3:50 pm

     .
     While Bush and McSame were contemplating a surge in Baghdad and surroundings …

     Race for North Pole Oil Riches or Land Grab

     MOSCOW (AP) Aug. 1, 2007 – An ambitious Russian expedition intended to symbolically claim rich Arctic resources for Moscow was expected to reach the North Pole – part of the Kremlin’s efforts to strengthen the nation’s energy power and expand its global clout.
     Map North Pole Expedition

     Russia’s Putin (Gazprom) downsizing Shell and BP assets! Bush and his thieves reciprocated in Mesopotamia.

     "But I will not let myself be reduced to silence."

6. 

   idredit on July 23, 2008 at 5:01 pm

   Poor McCain. He regrets giving Obama that challenge to take a trip to Iraq and Afghanistan, not counting on an extended tour of Europe.

   So on Thursday to counter Obama in Berlin, desperate RNC  will air McCain ads in cities named Berlin: Berlin NH, Berlin, PA and Berlin, WI

   Hey guys, you missed a few others: for starters –

   Berlin, ND (North Dakota)

   Berlin, VT (Vermont)

   can we spell desperately stupid?

   Yes. we. can.

7. 

   idredit on July 23, 2008 at 5:56 pm

   Now don’t read too much into this;

   Quote of The Day

   Angela Merkel on Obama:

   “I would say that he is well-equipped — physically, mentally and politically.”

   Reuters

   German Chancellor Angela Merkel is an admirer of U.S. presidential candidate Barack Obama — even though she has not yet met him in person.

   Asked at a news conference on Wednesday what she thought of Obama, Merkel responded: “I would say that he is well-equipped — physically, mentally and politically.”

   [.]

   Bush was famously caught on camera at a G8 meeting in 2006 giving Merkel a quick backrub and the chancellor was asked on Wednesday whether she expected more massages from Bush’s successor — whether it’s McCain or Obama.

   “That’s not really up to me,” she joked. “But I wouldn’t resist.”

   (highlight added)

   now this stuff, you. can’t. make up.