« Infomercial Master Billy Mays on Health Care | Saladin's Blog | Damn cool solutions to serious problems - Cement that consumes Carbon Dioxide »
Updated- Toxic assets have not gone away & Why not have Elliot Spitzer head new Pecora commision.
I just read TPM's utterly depressing take on the new pecora commission nominees and the republican plans to neuter it and I wanted to repost my call for Elliot Spitzer to head the commission. I wrote this post originally in April and I find it particularly apt as this week Goldman Sachs, the very bastards who made a fortune both shelling toxic assets and then a fortune selling them short and crippling our economy and JP Morgan Chase, the institution that invented the derivatives and securties which infected our entire system, both reported record profits!
WTF? They are making billions, you lose your job and watch corrupt senators water down health care reform and whine about racist latinas. TARP was 750 billion dollars and lets not even talk about the trillions quietly pumped out by the FED.
Make no mistake toxic assets have not gone away. Banks, flush with your tax dollars (both directly and indirectly through AIG) are sitting on them. The suspension of mark to market (see Destor's smart take here) means that they do not have any incentive to move the millions of foreclosed properties off the books. That would mean accepting that the face value 600k condo is really only worth 200k, which would lead to insolvency for thousands of our banks (in case anyone forgot here is a great video explaining the finacial crisis that lead to the 800 billion TARP).
I had had some hope that the new Pecora Commission would confront some of these facts head on. Ron Chenow, author of the excellent House of Morgan, wrote a New York Times Op Ed that was one of the earliest calls for such a commission. In it he wrote eloquently of the 'electrifying' hearings.
The riveting confrontation between Pecora and the Wall Street grandees was so theatrically apt it might have been concocted by Hollywood. The combative Pecora was the perfect foil to the posh bankers who paraded before the microphones. Born in Sicily, the son of an immigrant cobbler, Pecora had campaigned for Teddy Roosevelt and been imbued with the crusading fervor of the Progressive Era. As a prosecutor in the 1920s, he had shut down more than 100 "bucket shops" -- seamy, fly-by-night brokerage houses -- and this had tutored him in the shady side of Wall Street. ... Bankers had been demigods in the 1920s, their doings followed avidly, their market commentary quoted with reverence. They had inhabited a clubby world of chauffeured limousines and wood-paneled rooms, insulated from ordinary Americans. Now Pecora defrocked these high priests, making them seem small and shabby.I want Elliot Spitzer to head the new commission. I know I am not the first to think of it, and I too initially dismissed the idea out of hand. But I now think that the pros strongly outweigh the cons.
The Pros
1. He was the NY State attorney general and then Governor when most of this went down. He knows NY, Wall Street, all the players, and most importantly how they all play the game.
2. He has repeatedly gone to battle with and defeated All the major investment banks. Most notably with a 1.4 billion dollar settlement over investment bank stock price manipulation- even Goldman was caught with their hand in the cookie jar and had to pay up.
3. He has already KO'd AIG and ran former CEO Hank Greenberg out of town. They fear him. In the Current Crisis he has been one of the earlist and most vociferous in keeping our eye on The Real AIG Scandal, the 100% payouts and funneling of cash to Goldman and partners (180 Billion and counting...)
4. He has caught mutual funds and their hedge fund buddies red handed in numerous late trading and market timing scandals. He doesn't have any insane Chicago School free market ideology. He knows these people game the system because its their job to make money anyway they can, and it was his job to catch them. He understands the structural flaws endemic to our system.
5. He has taken on mortgage lenders, their predatory practices, and Bush admin protectors.
6. Until his self immolation by Dupre, he was largely undefeated. Not a bad track record.
7. He thinks his current job sucks and badly wants historic redemption. He will stay up late, do the homework, and fight for it.
.
8. His name is Elliot, I always think of the Elliot Ness whenever I hear about him. I can't help but think that that's a good omen and its the same era as Pecora so that must count for something
9. He was never very likeable as attorney general with his snarl and righteous tirades against evil doers. Now he is human and people can relate to him. Like Mr. Ness he is now untouchable.- I mean he survived stupid shit like this:
10. He wants revenge. 'Suspicious wire transfers' reported to the FBI-My ass. Somebody was gunning for him and he was stupid enough to get caught. (I know, ...'eight years of W has whacked me out', whatever, but I'm not alone check out this great Alternet conspiracy theory).
11. Entertainment & Civic literacy. Lets face it, most of the country gets its news from comedians these days. Nominating Elliot guarantees a ton of press from the commission. Everybody will hear about it and if he plays it right he can use his celebrity as a bullhorn for some perspective. "Sure I got laid, but Casano and his buddies Edward Liddy and Hank Paulson each have 100 million of your taxes" Think about it.
The Cons
1. He had relations with a prostitute. Does this really destroy his credibility? I mean Bill redeemed himself, Diapers Dave is probably going to win reelection on the strength of conservative voters. Would this really prevent him from effectiveness? Do we need our prosecutors to be without sin in order to take them seriously? I don't know.
2. He is too political. Which leads to number 3.
3. The Democrats don't have the balls. I mean seriously do we really think that Harry Reid and our Holier-than-thou President will stand for a six months of Jay Leno making Emperor's club jokes. I don't think so. Hell, Nancy seems to have the biggest sack of the lot of em but she is still so enamored with the taste of actual real power that she won't rock the boat. The truth is that it seems our fearless leader doesn't have the stomach to get his hands dirty.
I suspect what we will end up with will be a mild mannered mouse who will make the very occasional roar and then file a quiet report that will say "mistakes were made, shame on AIG and over-leveraging, but really we all participated so its really all of us that are all to blame..."
Did anyone see Elisabeth Warren on the Daily Show, I like her alot but she is utterly ineffectual and thats probably the best we are getting.
In the meantime the depression will continue to worsen. Populist rage will be fomented by Fox's teabaggin and other anti-government lunacy, and the O-team lead by Timmy and Larry will rightly come to be seen as protectors of those doing the looting.
So thats my list, please add your own pros/cons or alternative nominations in the comments.
And for Dickday a fun video:
Iterum posteri procul prex of meus amicus pullus
Advertisement
I'm just going to get this over with, in case Jay Leno hasn't said it yet.
It's a good thing Spitzer will lead the new Pecora commission. His last Pecora got him into a lot of trouble.
April 18, 2009 12:38 AM | Reply | Permalink
Ha!
That is awesome! Can you copyright that?
April 18, 2009 1:20 AM | Reply | Permalink
copyright that
I think she just did--Google never sleeps.
April 18, 2009 1:51 AM | Reply | Permalink
I'll be the first to admit Spitzer wasn't the best governor. He's a better prosecutor than politician. As an investigator exposing malfeasance of those in power and moneyed interests, who has a better track record? And now that the Ted Seven's prosecutors are being investigated by the DOJ, maybe they can also investigate how Spitzer's case was a political hatchet job. Bring. back. Spitzer.
April 18, 2009 1:17 AM | Reply | Permalink
He *had relations with a prostitute
This is a "con"?
Was there some problem about the check he gave her? No? Did he give her a loathesome disease? Not that either, huh.
Well then, did they do it somewhere inappropriate, maybe in the road? Oh, ok.
Well then, what the fuck is the problem?
*shit, I married one (#3--yes, we met "professionally..." I guess that's the end of my run for President...
April 18, 2009 1:20 AM | Reply | Permalink
I had it in the pro list, but the numbers were too unbalanced-I had to move something.
I wouldn't give up hope yet, I mean we just elected a black guy. Who'd take those odds a decade ago? Don't sell yourself short.
For what its worth, you'll always have my vote.
April 18, 2009 1:33 AM | Reply | Permalink
Well then, did they do it somewhere inappropriate, maybe in the road?
------------------------------------------
Inappropriate? Don't be so uptight.
http://www.youtube.com/watch?v=yae3P1qoOa4&feature=related
http://www.youtube.com/watch?v=6HIzlO4H00k
July 18, 2009 3:42 AM | Reply | Permalink
Somebody was gunning for him
Lindsay B. points to Roger Stone.
April 18, 2009 1:33 AM | Reply | Permalink
How long is the list of politicians caught with their pants down? Why are some forgiven and others not?
April 18, 2009 8:46 AM | Reply | Permalink
I think John Edwards would be a better choice, he's photogenic and knows hair styling.
My problem with Spitzer is not Alexandra Dupre - it's the fact that he was busting prostitution rings in NY and building his public reputation as a fighter against something he was engaging in himself.
Spitzer is an lying liar without any idea of right and wrong. The fact that he would even be considered is astonishing hypocrisy.
April 18, 2009 9:10 AM | Reply | Permalink
It's probably a first, by I do agree with Lalo.
Spitzer has a dishonest core, why would we trust him and give him again any powers that will affect the public well being?
April 18, 2009 10:01 AM | Reply | Permalink
Spitzer may be a liar, but he knows right from wrong. That's why he lied! :-)
July 17, 2009 1:04 PM | Reply | Permalink
Yes Hypocrisy is the most venal sin of all.
lying liar without any idea of right and wrong
Well of course that logically follows from such licentious behavior. Slippery slope
Give me a break. Prostitution shouldn't be a crime, if his wife forgives him who the hell are we to care. He built his reputation doing a lot of good at a time when no one else in this country was (see pro list; bush admin, term 1).
I find your example of hypocrisy (busting a ring or two) personally distasteful but hardly any idea of right and wrong. Spare me the hyperbole.
April 18, 2009 12:04 PM | Reply | Permalink
Hypocrisy more venal than prostitution?
April 18, 2009 12:42 PM | Reply | Permalink
more venal than prostitution
Yes, of course.
How is the exchange of (insincere) sexual affection (sex worker( more venal than the exchange of insincere personal affection (therapist)?
Is it the insincerity you object to? Or do you find it more venal if the sex worker has an orgasm along with the client?
April 18, 2009 6:21 PM | Reply | Permalink
just asking not preaching
April 20, 2009 11:18 AM | Reply | Permalink
Spitzer's seen somewhat as a hypocritical jerk, and maybe could pull a Hugh Grant. Except Spitzer isn't in the entertainment business. As you say, to break the very laws that you claim to be enforcing seems to me to fragment his credibility into a thousand shards. Fail.
Edwards, on the other hand, is absolutely hated by a lot of people (except, as you hint, his stylist). Not only because of cheating on his terminal wife. But because he hid it as he tried to run for president--which would have absolutely guaranteed a McCain/Palin win. Can you imagine Palin at the helm of the 4th branch of government that Cheney would have given her?
"Gosh! Assassin squads? Neat! With this the baddies are going to give up and wave a white flag of surrender against some of the political shots that we've taken, that ... that would ... bring this whole ... I'm not doing this for naught."
(italics are part of a real quote. the rest, I made up.)
July 17, 2009 9:14 PM | Reply | Permalink
touche, poor choice on my part
April 18, 2009 12:56 PM | Reply | Permalink
Can't believe I missed this.
Bravo
April 18, 2009 7:47 PM | Reply | Permalink
Thanks Chicken!
Not quite timely but I wanted to finish one of draft posts yesterday.
April 18, 2009 8:41 PM | Reply | Permalink
Do me a favor. Re-post it.
April 18, 2009 9:11 PM | Reply | Permalink
Okay...done
April 18, 2009 9:33 PM | Reply | Permalink
I do not see it.
hmmm
April 18, 2009 11:41 PM | Reply | Permalink
Thanks for this blog. Well written! Very convincing.
April 18, 2009 7:57 PM | Reply | Permalink
Okay, how about putting Ralph Nadar on it too:) or more seriously my friend Richard Wagner.
July 17, 2009 1:57 PM | Reply | Permalink
Nader is an interesting suggestion. I am unfamiliar with Richard Wagner, the only one I can think of is the dead composer (possibly a very appropriate sound track though).
July 17, 2009 7:53 PM | Reply | Permalink
Now Saladin (I really like this new avatar by the by, but I liked the other ones also) there are others who are fighting for truth justice and the American way.
I mean Cuomo is raising holy hell and the AG for NY, a wonderful lady. Gathering hundreds of millions of dollars in court settlements. But this line really struck me:
10. He wants revenge. 'Suspicious wire transfers' reported to the FBI-My ass. Somebody was gunning for him and he was stupid enough to get caught. (I know, ...'eight years of W has whacked me out', whatever, but I'm not alone check out this"
Now I do not care if he is shoving ferrets up his arse....we NEED SOMEONE WHO IS PISSED, WHO FEELS BETRAYED AND WHO IS FEELING HIS OATS AGAIN.
Great post.
July 17, 2009 7:28 PM | Reply | Permalink
Damn straight DD. I want someone fighting for us that sees things how they are and is pissed at how rigged the game is.
Last night I had beer with a friend of mine, a PHD physicist who works for a company researching advanced materials. He has a stack of patents to his name and the messages you and I type go through some of his work. He told me that when he graduated his first interview was with Citibank and he turned it down to actully work on real materials, and that is why he is now only middle class.
He is contributing to the world and inventing advanced materials that will be with us for eons. Hank Paulson is worth 700 million.
Our system is fucked it rewards bs con artists who gamble with our passive money (your 401k)and we lose no matter what they do. I am pissed and I want the truth to come out.
July 17, 2009 8:19 PM | Reply | Permalink
Yes, yes, yes. A little depressing for me I am afraid.
Hey, by the way as usual, really great blog and look at the comments.
I come away I guess with my wish for Eliot Ness. ha
July 17, 2009 8:36 PM | Reply | Permalink
Gotta say I agree with most everything you say here. These banks/investment houses have made billions in profits as a result of the US treasury sinking trillions of dollars into them, and that is cause for optimism by Geithner? Its insane. As you point out, the toxic shit hasn't gone anywhere; its still there on the books. We've only made the collapse that is coming worse by merely delaying the day of reckoning. We haven't addressed the fundamental causes of the crisis or its solution. The one thing I would beg to differ with you is you seem to wholly blame the GOP for neutering the commission. I can see Pelosi and Reid as being just as bad. They too are water carriers for the financial oligarchy. A Pecora Commission is precisely what is needed; this one will be just your average blue-ribbon panel that covers up the misdeeds and exonerates the real criminals.
July 17, 2009 11:02 PM | Reply | Permalink
To receive more information about this topic the following internet sites can follow.
Dizi İzle
Güncel haber
August 24, 2010 11:07 AM | Reply | Permalink
This beautiful and informative article, thank you very much.
toner kartus dolumu
plastik kart
August 24, 2010 11:08 AM | Reply | Permalink
I am constantly followed.
Mynet sohbet
August 24, 2010 11:10 AM | Reply | Permalink
Use this page to your friend told you. I am constantly followed. To receive more information about this topic the following internet sites can follow.
Bedava film izle
video tube
August 26, 2010 7:31 AM | Reply | Permalink
Nice great for magic ..Thanks...
yedek parca
portal
August 27, 2010 7:32 AM | Reply | Permalink
Nice great for magic ..Thanks...
yedek parca
portal
August 27, 2010 7:34 AM | Reply | Permalink
porno
August 28, 2010 8:08 AM | Reply | Permalink
kula haber
August 29, 2010 9:00 AM | Reply | Permalink
Use this page to your friend told you. I am constantly followed. To receive more information about this topic the following internet sites can follow.
mp3 indir
Arkadaş Arıyorum
August 30, 2010 7:40 AM | Reply | Permalink
ForexmaLi
sex
August 30, 2010 7:49 AM | Reply | Permalink