MarksterBlog

By Simon Johnson and James Kwak

Sunday, April 5, 2009; Page B01

Timothy Geithner and his predecessor Henry Paulson have been the public faces of the U.S. government’s battle against the global economic crisis. But even as the secretaries of the Treasury have garnered the headlines — as well as popular anger surrounding bank bailouts and corporate bonuses — another official has quickly amassed great influence by committing trillions of dollars to keep markets afloat, radically redefining his institution and taking on serious risks as he seeks to rescue the American economy. Without a doubt, this crisis is now Ben Bernanke’s war.

Read full article at the Post…

by Cenk Uygur

Fri Mar 27, 2009 at 09:48:08 AM PDT

The size of our national economy this year is roughly $15 trillion. The size of the Credit Default Swaps (CDS) market is $64 trillion. The whole world GDP is about $56 trillion. How could the CDS market be larger than the world GDP combined? That doesn’t make any sense.

The minute I read that many months ago, I realized that there was something unreal going on in the CDS market. By “unreal” I mean something that is given value even though it is not attached to real assets. And the more I researched, the more I realized that was true.

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Check it out…

Check it out…

Especially look at the chart titled: “How this Bear Market Compares by The New York Times” This is a dynamic chart, so it is updated regularly

The Big Takeover
The global economic crisis isn’t about money – it’s about power. How Wall Street insiders are using the bailout to stage a revolution

MATT TAIBBIPosted Mar 19, 2009 12:49 PM

It’s over — we’re officially, royally fucked. no empire can survive being rendered a permanent laughingstock, which is what happened as of a few weeks ago, when the buffoons who have been running things in this country finally went one step too far. It happened when Treasury Secretary Timothy Geithner was forced to admit that he was once again going to have to stuff billions of taxpayer dollars into a dying insurance giant called AIG, itself a profound symbol of our national decline — a corporation that got rich insuring the concrete and steel of American industry in the country’s heyday, only to destroy itself chasing phantom fortunes at the Wall Street card tables, like a dissolute nobleman gambling away the family estate in the waning days of the British Empire.

The latest bailout came as AIG admitted to having just posted the largest quarterly loss in American corporate history — some $61.7 billion. In the final three months of last year, the company lost more than $27 million every hour. That’s $465,000 a minute, a yearly income for a median American household every six seconds, roughly $7,750 a second. And all this happened at the end of eight straight years that America devoted to frantically chasing the shadow of a terrorist threat to no avail, eight years spent stopping every citizen at every airport to search every purse, bag, crotch and briefcase for juice boxes and explosive tubes of toothpaste. Yet in the end, our government had no mechanism for searching the balance sheets of companies that held life-or-death power over our society and was unable to spot holes in the national economy the size of Libya (whose entire GDP last year was smaller than AIG’s 2008 losses).

So it’s time to admit it: We’re fools, protagonists in a kind of gruesome comedy about the marriage of greed and stupidity. And the worst part about it is that we’re still in denial

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U.N. panel says world should ditch dollar
Wed Mar 18, 2009 11:16am EDT By Jeremy Gaunt, European Investment Correspondent

LUXEMBOURG (Reuters) – A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar.

Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.

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Marijuana already plays a huge role in the California and national economies. It’s a revenue opportunity we literally can’t afford to ignore.

It looks like the pot debate just got real. As the nation faces its worst economic crisis in generations, California Assemblyman Tom Ammiano has introduced a trailblazing bill to tax and regulate marijuana like alcohol. Hard on the heels of Michael Phelps’ nationally-resonant bong demo, Ammiano’s gesture is a whole lot more intentional. One hopes it will stir the long-overdue national examination of the financial and human price that we pay for criminalizing pot.

The most widely used illicit drug in the western world, marijuana is a fact of life that’s been sampled by upwards of 100,000,000 Americans. Officially prohibited since 1937, we finally seem on the threshold of a promising moment in our nation’s tortured relationship to the drug. On November 4 alone, Massachusetts decriminalized personal pot use, Michigan became the thirteenth state to allow its medical use, and we elected a president who’s openly admitted to smoking it. National polls and the yawn that greeted the Phelps media frenzy indicate that Americans are reconciled to pot’s largely benign role in our culture.

Nevertheless, the mindless prohibition enforcement machine rolls on. In 2007, over 800,000 Americans were arrested for marijuana-related crimes (nearly 90 percent of them for possession), with upwards of 85,000 of them serving sentences in jail or prison. In the U.S., incredibly there are more arrests for marijuana possession each year than for all violent crimes combined. This astounding human toll from enforcing the ban on marijuana costs taxpayers roughly $8 billion each year. And those wasted resources are further compounded by the total capitulation of the massive pot market to an underground economy to gangsters who laugh all the way to the bank.

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The crash of 2008 continues to reverberate loudly nationwide—destroying jobs, bankrupting businesses, and displacing homeowners. But already, it has damaged some places much more severely than others. On the other side of the crisis, America’s economic landscape will look very different than it does today. What fate will the coming years hold for New York, Charlotte, Detroit, Las Vegas? Will the suburbs be ineffably changed? Which cities and regions can come back strong? And which will never come back at all?

by Richard Florida

Read..

Banker + Gangster = Bankster

A POINT OF VIEW

It seems timely to resurrect this Americanism from the 1930s – one of many evocative words the United States has contributed to the English language, says Harold Evans.
Americans are pretty good at adding words to the English language. We owe them pin-up girls, highbrows, killjoys, stooges, hobos, drop-outs, shills, bobby-soxers, hijackers, do-gooders and hitchhikers who thumb a ride.

The Americanisms are so much more concise and vivid. Instead of saying “sorry we’re late but drivers ahead of us slowed us down when they craned their necks to look at a crash” you can say “we were held up by rubberneckers”.
Words pop in and out of our language as social conditions change. The American gangster, which is still with us, has been around as a noun and a reality since 1896 according to my Shorter Oxford, but it seems to have dropped another Americanism from the 1930s and I think now is the time to revive it.

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Twenty-five people at the heart of the meltdown …
The worst economic turmoil since the Great Depression is not a natural phenomenon but a man-made disaster in which we all played a part. In the second part of a week-long series looking behind the slump, Guardian City editor Julia Finch picks out the individuals who have led us into the current crisis

Find out who here…