McCain, Obama Deserve Credit for Rescue, Advisers Say

Posted on September 28th, 2008 by bile
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U.S. presidential candidates John McCain and Barack Obama each deserve credit for a breakthrough in talks on a $700 billion plan to revive the credit markets, their advisers said today.

Republican McCain worked with party members in the House to achieve plan changes such as government insurance of mortgage- backed securities and a phase-in of federal aid, Senator Lindsey Graham said on the “Fox News Sunday” television program.

“The fact is the House Republicans were not in the mix at all” until McCain arrived at the talks, said Graham, a South Carolina Republican. McCain “was decisive in regards to the House being involved.”

Senator John Kerry, an Obama adviser, disagreed. McCain said “he was going to interrupt his campaign to come down and save the negotiations,” according to the Massachusetts Democrat. “What he did was interrupt the negotiations to come down and save his campaign.”

Senate Banking Committee Chairman Christopher Dodd said in a CNN interview today that McCain’s trip was “a political stunt” that “delayed and slowed down this process.”

Obama was supportive of negotiations in a “mild” and constructive” way by calling in over eight or nine days of talks, said Dodd, a Connecticut Democrat.

If they want to take credit I’m happy to give it to them. When the depression comes I just hope whichever clown is in office will take the blaim.

Senator Jim Bunning Calls on Paulson and Bernanke to Resign

Posted on September 9th, 2008 by bile
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Sept. 9 (Bloomberg) — Senator Jim Bunning said Treasury Secretary Henry Paulson, by rescuing Fannie Mae and Freddie Mac, is acting like China’s finance minister and both Paulson and Federal Reserve Chairman Ben S. Bernanke should step down.“I sincerely believe that Henry Paulson and Ben Bernanke should resign,” said Bunning, a Republican from Kentucky on the Senate Banking Committee. “They have taken the free market out of the free market.”

Paulson and the federal regulator for Fannie and Freddie placed the two largest U.S. mortgage-finance companies in a government-operated conservatorship on Sept. 7, ousting their chief executives and eliminating their dividends. Treasury also may purchase up to $200 billion of stock in the firms to keep them solvent.

“We no longer have a free market in the United States, we have a government controlled free market,” Bunning said in an interview. Paulson, a former chief executive officer of Goldman Sachs Group Inc., “is acting like the minister of finance in China.”

Bunning, 76, criticized Paulson’s successful effort in July to obtain congressional authority to pump unlimited amounts of money into Fannie and Freddie to keep them afloat.

“When I picked up my newspaper yesterday, I thought I woke up in France. But no, it turned out it was socialism here in the United States,” he told Paulson at a July 15 Senate Banking Committee hearing.

Back in July, Bunning called for the Fed’s “monetary policy responsibility” to be “taken away”.

Bunning is a little late to the party and a little off but it sounds a lot better than a lot of those criminals in DC are saying.

For fucks sake Bernanke!

Posted on July 15th, 2008 by bile
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Federal Reserve Chairman Ben S. Bernanke said risks to both U.S. growth and inflation have increased, abandoning officials’ June assessment that threats to the expansion had “diminished somewhat.”

There are “significant downside risks to the outlook for growth,” and “upside risks to the inflation outlook have intensified,” Bernanke said in semiannual testimony on the economy to the Senate Banking Committee in Washington.

Bernanke cited higher energy prices, reduced access to credit and a further deepening in the housing recession as dangers to growth. At the same time, he said: “We must be particularly alert to any indications, such as an erosion of longer-term inflation expectations, that the inflationary impulses from commodity prices are becoming embedded” in wages and prices.

ARGH. Way to pass the fucking buck. I’ll let Lew Rockwell speak for me:

It’s hard to be shocked at a lying federal official, but to see the head inflator, Ben Bernanke, warning the senate about inflation as if it were some extraneous force of nature is laughable. [Quoting above]

In other words, the Fed – the government agency created to inflate, and the only source of inflation – is keeping an eye on the wayward private sector, in case foolish people wake up to the Fed’s schemes, and realize they have engineered very high inflation indeed, at the same time as they have engineered a global depression, and prices zoom as the economy falls of the edge. In that case, it will be essential – from DC’s standpoint – to blame business people and consumers, so as to divert attention from their criminal selves. It is our job not to let them get away with it.

The Bloomberg article continues:

Retail sales rose 0.1 percent from the previous month, the Commerce Department reported today, less than economists forecast. Producer prices jumped 1.8 percent, the most since November, the Labor Department said. From a year ago, prices climbed 9.2 percent, a surge unseen since 1981.

Fed governors and district bank presidents now see the economy expanding 1 percent to 1.6 percent this year, up from 0.3 percent to 1.2 percent in their April outlook. Consumer prices will rise 3.8 percent to 4.2 percent this year compared with a projected range of 3.1 percent to 3.4 percent in April. The economy should expand at a 2 percent to 2.8 percent rate in 2009, identical to the April forecasts.


Anyone reading this expecting to get a >= 9.2% raise this year?

Not all this turmoil is lost on the public thankfully. I’ve gotten a chance to rant about the Federal Reserve and this economic setup, with an actual attentive audience, more often then I’ve in the past. In fact my boss was talking about picking up something to better understand the Federal Reserve System. I’m going to bring in a copy of The Case Against the Fed by Murray Rothbard. Maybe I’ll be able to get it passed around the office. It’s a pretty quick read and given the urgency which people likely feel concerning this situation it may not be a difficult sell.