Here Comes The Show - Congressional Hearings, Debt and Conjecture

Multiple Screens! 360 Panavision! Let the shouting begin! The Committee on Oversight and Government Reform will hold hearings the next two days. Committee Chair Representative Waxman:

Lax oversight and reckless investments on Wall Street are causing massive disruption throughout our economy. Our hearings will examine what went wrong and who should be held to account.

Up on the executive chopping block are:

DAY 1: Causes and Effects of the Lehman Brothers Bankruptcy

  • Dr. Luigi Zingales, Professor of Finance, University of Chicago
  • Dr. Robert F. Wescott, President, Keybridge Research LLC
  • Nell Minow, Chairman of the Board and Editor, The Corporate Library
  • Gregory W. Smith, General Counsel, Colorado Public Employees’ Retirement Association
  • Richard S. Fuld, Jr., Chairman and Chief Executive Officer, Lehman Brothers Holdings

DAY 2: Causes and Effects of the AIG Bailout

  • Eric R. Dinallo, Superintendent, New York State Insurance Department
  • Lynn E. Turner, former chief accountant, Securities and Exchange Commission
  • Robert B. Willumstad, former Chief Executive Officer, AIG
  • Martin J. Sullivan,former Chief Executive Officer, AIG
  • Maurice R. Greenberg, former Chief Executive Officer, AIG

Can we start with impeachments of Congress?

Meanwhile, back at the bail out, new reports are appearing on the massive deficit, the U.S. dollar and questioning the wisdom of the bail out already.

A UK Investor article:

The dollar is doomed but most people don't know it yet.

US bail out total

 

The Malaysian press writes Huge repercussions if bailout fails.

Economists are concerned that if the massive US bailout failed, the repercussions to the US economy and the rest of the world would be disastrous and far-reaching.

A local economist said a major concern was that the US economy might go into a tailspin, dragging along other countries that have financial dealings, past and present, if the financial credit crunch was not resolved quickly.

He said there was also a fear of the US dollar falling and its impact worldwide especially if the US economy also collapsed.

The economist said the US had been on a federal trade deficit for many years and this deficit had hit a record of US$311bil for the first half of fiscal year 2008, up from USS162bil the year before.

“As a nation, the US has been spending above its productivity, but still has the liberty to print more US currency so long as other nations are prepared to accept the dollar,” he said. However, the situation may be different if the US economy and dollar collapse

Yet the New York Times notes, the dollar is surging....for now.

The appeal of the United States reflects a lack of better options. Much has been made over the last few years about the rise of the euro as a rival to the dollar. But Europe hardly looks like a safe bet now, with its own crisis metastasizing

So, we wait and while waiting, start pointing blame. After all, a good plan couldn't be considered now could it?

Seeking Alpha sums it best:

Bailout Backfire and the Ticking Debt Time Bomb

Meta: 

Comments

Asia down futures down, down, down, down

bloomberg is showing a major stock market drop as it all sinks in the bail out isn't a cure all...or an at all.

Who knows if this will remain true tomorrow, time will tell but I'd say the early judgment on the bail out isn't looking too good.

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Well....

....looks like all that tax cutting has worked great.

For some...

Maybe Bush & his posse of wreckers really have destroyed the nation.

And Nancy Pelosi can kiss her Armani suited seat in Congress good-fukin-bye. Her apporoval rating yesterday was 32% and that's before folks really understand what she has NOT done to try and work out this crisis.

Lotta folks with no clothes on in Congress at this minute.

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'When you see a rattlesnake poised to strike, you do not wait until he has struck to crush him.'

Here Comes The Show -

The biggest emperor with no clothes is Obama. On the first vote 12 members of the Congressional Black Caucus voted NO, after intense pressure from Obama all 12 voted YES on round 2.

I created an ActBlue page called Economic Populists. They include the "good Dems" who voted against this unconstitutional, corporate money grab.

http://www.actblue.com/page/economicpopulists

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neato!

I hope you get an account on EP and keep us updated.

I'm thrilled someone is going to differentiate within the Democratic party on who are the real Progressives (Populists) versus who is simply borrowing the label.

That's a great idea to create a page on who is who.

I think Jeff Merkley is looking very good to be added to this list and I know Barry Welsh, running against Pence (IN-6th) is a Populist.

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Populists=Progressives?

I'm not so sure about you equating progressives and populists. Quite often, progress is NOT popular. Look at this whole free trade mess for instance: it's basically a fiscally liberal progressive bid to steal standard of living from the first world and give it to the third world. Not populism at all- but very progressive indeed.

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Maximum jobs, not maximum profits.

the term has been co-opted

Although there is clearly a right wing Populist movement going on and there is some overlap. I think trade is the biggest. I mean it's pretty damn obvious through the trade deficit this is not plain working for America so anyone paying attention to actual results wants modifications to those corporate written agreements.

Now, the libertarians want the term Populist too but my attitude is I don't think so....especially now that "free unregulated markets" and it's results are being seen. I don't think most people want that.

I take Populist to mean this is what the majority want.

But I have seen the term Progressive so abused, even corporate lobbyists try to use the term...

but there are/were a core group of true Progressives before all of this happened, Bernie Sanders was chair, Peter DeFazio is in that group....

and now that lobbyists couldn't redefine the term Populist...they are trying to smear it as Protectionist.

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Done

I did add Barry Welsh and Jeff Merkley.

What about the other Oregon Senator - Ron Wyden - he voted against the bailout.

The 3 core issues I am focusing in on are trade, immigration, corporate welfare (bail out).

http://proletariat.wordpress.com/

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Although a radical Leftist should support the liberal stance, one should never forget that it is the populist fundamentalist, not the liberal, who is, in the long term, our ally. In all their anger, they are not radical enough to perceive the link between

I would say Wyden no

He has quite a number of corporate votes, very surprised that he voted no actually, truly impressed.
Probably select a few key votes in addition, like the bankruptcy bill. Probably Byron Dorgan should be on the list, he's done a couple of things that are strange but for the most part is assuredly one of the best Senators there.
Bernie Sanders I'll assume is a given. It's tough because on one vote you may have a good record...on another...eek.

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I'm not surprised

Wyden is one of my senators, and while yes, he's often in the pocket of big business, you've got to remember he owes his seat to Portland Environmentalists- the people who would really like to see this money going to plant more trees rather than shore up Wall Street.

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Maximum jobs, not maximum profits.