Without comment on his reliability, I present the following CNBC Video from Charles Gasparino. We all know his track record with breaking stories. Take a rip inside and see the CNBC Video. If true it is outstanding news.
Plus we have some analysis from Carney at Clusterstock inside.
Same problem as always: how much do we taxpayers bid for these assets. And if we bid too little then the whole plan never happens. Good.
I will offer my solution again:
Sieze the banks. Put them into government receivership. Then look at the assets honestly for the first time. Write them down dramatically. All of them. Force the BONHOLDERS to take the hit(not the taxpayers). Wipe theses bondholders out.
Then re-capitalize with taxpayer dollars. We will invest only after the existing BONDHOLDERS have been wiped out.
Read this piece by fund Manager Whitney Tilson for a much longer version of my summary above.
Also see this piece by University of Chicago professor Luigi Zingales for a slight variation of my plan. Including another alternative.
Fianlly, see this summary of Dr. Zingales piece here by Blodget at Clusterstock.
This is Sheila Bair and she is not shy about her ambitions. As the outspoken head of the FDIC, she has become the most powerful banking regulator in Washington, and she wants to be your bad bank ceo. Bloomberg and others are reporting that she is likely to emerge from the regulatory dungheap as the victor in the shit sweepstakes.
Burdening taxpayers and their children with $5 trillion of bad assets is both stupid and immoral. And perhaps illegal. But Obama and Geithner's determination means its inevitable. One request: be the buyer of last resort and do not bid above market for a single securitized slug.
Inside we'll do a round-up on Bair including some background pieces. Also we'll take a look at more reaction to the stimulus. Our intial knee jerk was right, it's a taxpayer boondoggle that does little but add to our children's debt. See the best analysis here.
An experiment this morning, I have 3 squirrels after the jump all on bailout news. These are link aggregators that combine multiple URLs into just one link. Here. Click it and it will do something very nifty.
The Oracle speaks. Star banking analyst, Meredith Whitney has finally broken her silence on the good bank/bad bank proposal that's currently being floated as the administration's response to the banking crisis. She is the most important banking analyst on the Street and deservedly so. It turns out that Ms. Whitney is none too amused with the idea of burdening taxpayers with this pile of toxicity, and she states bluntly that it will NOT work. Get her view in detail from 4 sources including the original Oppenheimer report pdf. after the jump.
There's also word this afternoon that New York AG Andrew Cuomo is looking into clawing back the $15 billion of your money that Merrill used for bonuses just last week. There are 22 afternoon links after the jump.
In this angry edition of bailout news, our attention turns to the Obama stimulus proposal as it grows it's way through Congress. Aside from being a waste of a trillion dollars of borrowed money, we have found some value here. There's talk of a new parking garage for the Orange Bowl and as much as $350 miilion earmarked for STD education. Despite our obvious excitement for these projects, how will any of this patronage actually help the economy recover?
Also missing from the debate is the concern for our children and the unconscionable debt burden we are leaving them. Keynesians, what value are you adding? Your insane belief in the power of government spending is painful entertainment for the rest of us who can smell the bull the minute you hit town. Where is the grand vision? Where is the vital infrastrucure? Why do these projects merit the borrowing of $1 trillion more from our children's increasingly dim futures? We're still waiting to hear how each project will further our national interest.
So stop wasting our time with your useless theory on how this giveaway will substantially boost the economy. We're not buying it. It didn't work in the 1930s and it's not going to work now. Are you listening, Krugman. The massive spending that accompanied our entrance into WWII brought us out of the depression. Not the keynesian claptrap you so proudly cite.
So call this stimulus what it really is, generational rape with a trillion-dollar shovel, and it's but one more painful wrong turn as we continue on the path to federal bankruptcy.
Take a late day ride through hell, as we look at the 20 best reads on what's going down. Xanax is included.
It's always the little things. In last week's row over the huge losses at Merrill Lynch, we learned that $15 billion of your kids' dough was flushed down the toilet in the form of year-end bonuses for Merrill staff. And this in a year that Merrill saw cumulative losses of greater than $40 billion. Though there was plenty of outrage, the story that really caught people's attention that day was the Gasparino piece in The Daily Beast about John Thain's $1.2 million dollar office redecoration.
Hmm. We have $15 billion in ridiculous bonuses versus $1 million in walking toilets. It was a commode with legs after all. Advantage: commode.
Yesterday we learned that Citi was preparing to take delivery on a luxury 12-seater that they ordered in 2006. The cost, $50 million. Meanwhile Citi has stolen $45 billion from your kids already (plus a $300 billion asset guarantee), all in the past 14 weeks. Advantage: luxury 12-seater.
It's not that surprising, really. Some outrages resonate more than others. So today, in the first symbolic win for the taxpayers since the auto execs were forced to hitch a ride to Washington, Citi announced that it will not take delivery of the new plane.
And you know what, we'll take it. Though mostly symbolic, a win is a win, and we sure as hell needed one. So come on inside where the taxpayer takes a victory lap as we examine how it all went down.
We have 4 unique takes on the story, each a great read. Plus, today was Citi's annual Investor Day and we've got the transcript of all the lies Pandit was telling.
This morning in our bailout news round-up, there are several stories to cover. Geithner got the job in an easy vote despite his tax issues. Phoney has made a formal request to Treasury for $16 billion in emergency funds (they'll need much, much more before it's over). Shittygroup took possession of their new custom, corporate jet that you paid for, and the 'Thain and Lewis Tour of Lies' blossoms into a 'she said-she said' cat fight. Good stuff.
These stories plus about 30 more await you on the other side, including word of stress-release squeezable, banker dolls resembling Paulson, Bernanke and others. You can't make this stuff up.
Don't be afraid to click, we promise there are no needles. Just lean back and relax while you take a leisurely stroll down bailout lane.
We haven't yet posted any of the bailout songs that most of you have seen. Now, we're glad we waited. Take a look at this video by stockbroker Gregg Somerville with music and production by Chris Conti. Gregg submitted it to us this morning and we're happy to showcase such excellent work. Great job with the lyrics. Enjoy as MC Bailoutgets a little crazy. Stockbroker Thuglife.
And Click here for the Song 'F*k the Fed'. A Gentle Little Song About The Federal Reserve. You will not be disappointed!
Wondering why he's so angry. Read any of the following stories and you will have a pretty good idea. The taxpayer is being fleeced and we are finally getting appropriately angry!
It's a new day, a new trading week, and the never-ending flow of bailout news continues this morning. Everyday is Groundhog's Day at DailyBail and we're stuck in the vortex.
Take a Monday morning stroll through the taxpayer mine field as you see where your money is headed today.
We're in a decidedly snarky mood this morning as you will see in our comments. So if you are Bill Miller of Legg Mason or Ken Fisher, you might want to skip this one. The remaining 6 billion of you, feel free to proceed. And hey, at least we gave you some great comedy this weekend.
Updated on Apr 4, 2009 at 3:41 AM by DailyBail
The original video he made was pulled from youtube recently for violation of terms. The only violation we can imagine is that it was too damn good. He has since re-posted the exact same video with a new 5 second introduction that was a surprise to us but certainly appreciated. That video is above. Our original description is below.
This is the possibly the funniest RANT ever made. It's the best we'ver ever come across. Watch the entire video to the end! It takes him about 30 seconds to get sufficiently warmed up. You will not be sorry. Warning: profane language throughout the rant.
See his newest video here. It's even better in my view. 'Walstreetpro2' is his name on youtube.
While watching, please read about what we're trying to accomplish: Taxpayer Iwo Jima
And search the right column for the latest bailout news, interviews, comedy videos, songs and other articles. We've loaded a ton of new stuff in the past few days.
Hilarious Comedy video on Paulson, Bernanke and Bush. Warning: very adult themes.
'F*ck the Fed'. a gentle song about the Federal Reserve!
Here are 2 SNL Bailout Comedy Sketches. Pelosi, Frank & Soros. And Dick Fuld of Lehman.
Here are the 2 Best Bailout Comedy Sketches from The Daily Show. Highly recommended!
Click here for a song/video from MC Bailout. This is by far the Best of all the Bailout Songs!
It's Saturday night and I have rounded up all the good stuff since yesterday plus a few surprises.
Take the Saturday evening click ride to check out all 45 Bailout stories and see where your children's future tax payments are headed. Yes, I said 45.
Bring on the pain. Enjoy!
I'm speechless. Here's a snip:
"Given that they have $4.5 trillion of risk out there, $100 BILLION is a drop in the bucket,” Miller said. “Given the fact that their risk profile on these loans is greater than they led everyone to believe, greater than $100 billion in losses on each institution would not surprise me.”
He's talking about both Phoney and Fraudie above. For now, only Fraudie is requesting additional funds. And again for the record: Fraudie already received $14 BILLION from your kids in november. So they are back to the trough quickly. Fannie's going to need at least $100 BILLION before this is over. Another snip:
“Their losses are going to be much higher than anyone anticipated,” said Paul Miller, an analyst with FBR Capital Markets in Arlington, Virginia. “The more and more that people are digging into these portfolios, they’re finding out the more and more these guys were doing subprime and Alt-A loans and classifying them as prime.”
"Much Higher than anyone anticipated." Are you kidding me. I am so tired of hearing that. Trust me, there are thousands of people who anticipated it. The online forums, from the basic at marketwatch and yahoo, to silicon investor and investor's hub, and finally to the blog forums at calculated risk, naked capitalism, the big picture and many others, are full of people who DID anticipate everything we saw last year. Once Bear Stearns failed in March, it became clear to us that no one else was any different than Bear and so they would all suffer the same fate eventually. After all, they all owned the same type of assets and at near the same levels of leverage. What was NOT anticipated, however, was the level of government intervention that would be utilized in an attempt to save them.
So, talk to your kids tonight and ask their permision to give another $35 BILLION of their money away to Fraudie. Oh, and start laying the groundwork for the big talk with them. No, not the one about sex and drugs. The one about Phoney needing perhaps $100 BILLION pretty soon. Let me know what they say, and then we'll let Obama and Geithner know whether they may have OUR CHILDREN'S FUTURE.
Inside, you will also find today's second set of bailout links.