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September 9, 2008 at 05:02:02

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Promoted to Headline (H3) on 9/9/08:
This Election is Not a Soap Opera or a Football Game: It is About the Future of Our Country

by Bernie Sanders     Page 1 of 1 page(s)

www.opednews.com


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Sen. Bernie Sanders. September 8, 2008.

The corporate media would have us believe, based on their coverage, that the most important issues in this presidential campaign are political tactics and the "character" of the four candidates. But what is at stake right now is not primarily the life stories of Barack Obama, John McCain, Joe Biden or Sarah Palin. An election is not a soap opera which deals with the trials and tribulations of the candidates and their family members. Election coverage must not descend into becoming a pre-game football show, one which deals only with "who's going to win" polling data and never-ending tactical discussions of "what the candidate must do" to win this or that state.

In a democracy, elections are not beauty pageants or reality shows, or soap operas for political junkies. Elections are the real business of democracy, and they should be about real things. 

Without sounding too corny, what this election is about is the well-being of hundreds of millions of Americans and about what kind of country we will be leaving to our kids and grandchildren. And, at a time of global warming and severe environmental problems, this campaign is also about whether our planet survives in a condition that can sustain human life in the decades and centuries to come.


Given all that is at stake, as American citizens we must demand that the media not continue to trivialize our democratic process, dumb down coverage and, in the process, deflect attention away from the most important issues impacting our lives. This election must, first and foremost, be about the needs of the American people. As Vermont's senator and the longest-serving Independent in American congressional history, let me lay out what I believe some of those issues are:

In the United States today, the middle-class is shrinking, poverty is increasing and the gap between the very rich and everyone else is growing wider. There are many economists who believe that, if we do not reverse course, for the first time in modern history our children will have a lower standard of living than their parents. Our country also has the dubious distinctions of having both the highest rate of childhood poverty in the industrialized world and more people in jail than any other country. Question: What specific ideas do the candidates have as to how we can grow the middle class and create good paying jobs, while protecting our children and the most vulnerable members of our society?

In the United States today, 46 million Americans have no health insurance, even more are underinsured, and we are the only major country on earth without universal coverage. Health care costs are soaring despite the fact that we already spend twice as much per person as any other country. Many employers, large and small, are now cutting back on the coverage they provide their employees making a tough economy even tougher for millions of workers. Question: Do the candidates believe that all Americans are entitled to health care as a right of citizenship? What are their plans for assuring that quality health care is delivered in a cost-effective manner? 

Most of the leading scientists in the world believe that global warming, if not reversed, will lead to severe weather disturbances, flooding, drought, hunger, and mass human migration. These scientists also believe that global warming is a more threatening problem than previously perceived, and that bold action is needed to reverse greenhouse gas emissions. Question: Do the candidates believe that global warming is real and a man-made phenomenon? If so, what specific actions are they proposing to reverse global warming? On a related energy issue, what ideas do they have to make our country energy independent?

The United States is now in the sixth year of the war in Iraq, the Taliban is gaining military strength in Afghanistan, the political situation in Pakistan is becoming more unstable, Russia and Georgia have just completed a bloody war, and little progress has been made in easing tensions between Israel and her neighbors. Question: What are the principles that will guide the candidates' foreign policy? What specific steps will they take to combat international terrorism? How will they restore America's position in the international community and help create a more peaceful world?

These are just a few of the major issues facing our nation. I realize there are many more. It seems to me that no matter what our political views are, or what we may consider the most important issues to be, as a democratic society we must demand of the media and the candidates that this campaign focus on the great challenges facing our country and the world. Gossip, melodrama and political tactics just won't do. 

 

www.sanders.senate.gov/buzz

Bernie Sanders is the independent U.S. Senator from Vermont. He is the longest serving independent member of Congress in American history. He is a member of the Senate's Budget, Veterans, Environment, Energy, and H.E.L.P. (Health, Education, (more...)
 

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34 comments


In a democracy, Bernie,

the people would have control over government.

The United States of America is not a democracy.

Although some states do, our Constitution, according to the Supreme Court, when it denied us the right to vote for President and Vice-President, did not even grant us the right to vote for the Electors who can vote for them.

And that Supreme Court, by the way, is an appointed rather than elected body. Do you know what the qualifications are to be a Justice of the Supreme Court? There aren't any. In a democracy the highest law of the land from which there is no appeal couldn't be an unelected body unaccountable to the people.

Some claim that although we're not a democracy, we're a republic, which is still a democratic form of government where the people exercise their power through their elected representatives. Do you know Rep. John Olver (D-MA)?  When presented with petitions from 80% of his constituents asking that he support impeachment, he said, "Spare me! I'm fully aware that the overwhelming majority of my constituents support impeachment. I will not." Does that sound like a republic to you? 

The only way we can hold our representatives accountable (if they don't happen to be good guys like you, and most are not), is by waiting until the next rigged election to try to vote them out of office. During their terms in office we have no way to hold them accountable whatsoever. It is as if a thief stole your credit cards, ran up huge bills, and when you reported the theft you were told that not only could you not cancel the cards for the next two years, but the thief was, by law, allowed to continue to run up unauthorized debts on your cards during that time, for which you would be responsible. 

Republic? Democracy? 

You're a nice guy, Bernie, and Vermont is a great place, but the United States is not in any sense of the word a democracy.

And as for the elections, there's are many reasons why you're an Independent rather than a Democrat or a Republican.  Nobody needs to tell you what a farce the two major parties and their rigged elections are. 

What good would media coverage and candidate focus on the issues do in an oligarchy like ours where the people have no way to hold their "elected" officials accountable during their term in office? Candidates can promise anything during their campaigns, but once "elected" they have to do whatever their party leadership tells them to do, not what their constituents want.

You're in the middle of it, Bernie. You know that Congress is a con game, and that despite shills like Dennis Kucinich and Ron Paul drawing in the suckers so that the cons can take their money, the game is rigged. 

Congress is nothing but a bureaucracy set up to shield the oligarchs from our wrath. It's the public relations department of America, Inc. What's a nice guy like you doing in a place like that?  ;)

 

by Mark E. Smith (21 articles, 30 quicklinks, 100 diaries, 1325 comments) on Tuesday, Sep 9, 2008 at 6:20:32 AM

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Reply: I submit that Senator Sanders' presence in our government...

is evidence that Democracy yet lives. He certainly was not the Neo-conservative choice.

As most Americans do, you assign too much importance to the executive offices at the neglect of legislative offices. Assign priority to those offices as the framers of the Constitution did. The House of Representatives is first, the Senate is second, the Executive third and the Judiciary is fourth. Concentrate your effort on the legislative races. They can't steal them all. Vote for the best presidential candidate, but don't make it entire scope of the election season.

But vote! It is your right, and your duty! To refuse your duty in this regard is to throw away your future, to throw away your citizenship and to assist those who would destroy this country.

by John Sanchez Jr. (9 articles, 0 quicklinks, 25 diaries, 1791 comments [148 recommended, 3 rejected]) on Tuesday, Sep 9, 2008 at 8:51:22 AM

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Reply: Is it me, or is it the Democratic Party, John?

In a recent quick-link, Facing Veto, Democrats Drop Plan for Vote on Child Bill the New York Times said:

WASHINGTON — Congressional Democrats have scrapped plans for another vote on expansion of the Children’s Health Insurance Program, thus sparing Republicans from a politically difficult vote just weeks before elections this fall.

“We are not going to change any votes” on the health insurance bill, said Representative Rahm Emanuel, at right with Speaker Nancy Pelosi and Representative Steny H. Hoyer last fall.

Before the summer recess, Democrats had vowed repeatedly to force another vote on the popular program. But Democrats say they have shifted course, after concluding that President Bush would not sign their legislation and that they could not override his likely veto.

Are they wrong, John? Is the Democratic Party assigning "too much importance to the executive offices at the neglect of legislative offices"?

Or could at least part of the reason that Congress usually gives Bush-The-Decider everything that he wants and is protecting him from impeachment be that his branch is more important than their branch?

 

 

by Mark E. Smith (21 articles, 30 quicklinks, 100 diaries, 1325 comments) on Tuesday, Sep 9, 2008 at 3:06:43 PM

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Reply: What is the difference between Nancy Pelosi...

taking impeachment "off the table", and your efforts to throw the election to McCain, ensuring that the coverup continues?

by John Sanchez Jr. (9 articles, 0 quicklinks, 25 diaries, 1791 comments [148 recommended, 3 rejected]) on Tuesday, Sep 9, 2008 at 3:45:57 PM

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Reply: I believe that is a violation of OEN rules, John.

John Sanchez wrote:

What is the difference between Nancy Pelosi...

taking impeachment "off the table", and your efforts to throw the election to McCain, ensuring that the coverup continues?

Comparing me to the Democratic Speaker of the House, Nancy Pelosi, who is trying to throw the election to McCain by taking impeachment off the table, is a personal attack on me and a false one.

I have always supported impeachment and I advocate not voting. In particular I advocate not voting for any political party that does not wholeheartedly support impeachment, such as the Republicans and the Democrats.

I agree with you that Nancy Pelosi and the rest of the Congressional Democratic Party leadership have been deliberately protecting Bush from impeachment because they want to throw the election to McCain, but I am no longer a Democrat and I don't follow their party line, support their agenda to throw the election to McCain (the same way they threw the previous two presidential elections to Bush), or vote for their Bush-loving war criminal candidates.

Comparing me to Nancy Pelosi is a scurrilous personal attack and completely despicable on your part, John.

 

 

 

by Mark E. Smith (21 articles, 30 quicklinks, 100 diaries, 1325 comments) on Wednesday, Sep 10, 2008 at 2:20:40 AM

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Reply: Come off it.

I compared the result of your actions to the result of Nancy Pelosi's actions and the comment went no further. However, I'll interpret my comment if you have too much difficulty properly doing so.

My premise is that in a John McCain administration, there will be no investigatiion or prosecution of George W. Bush, Dich Cheney and all of their confederates for the high crimes and misdemeanors that they have so clearly committed. Your misguided efforts to convince Americans, and particularly progressives and Democrats to forsake their citizenship and be derelict in their duty to vote in this election threatens to ensure a McCain victory. That would have the effect of removing that investigation and  prosecution from the table.

Nancy Pelosi has announced a similarly misguided policy that impeachment and the congressional investigation that goes with it are off the table.

Is that clearer for you? I still have difficulty believing that this explanation on my part was necessary and that your protest is anything more than a Rovian inspired substitute for argument. Karl Rove is, after all another who shares your objective of reducing the progressive vote as much as possible.

by John Sanchez Jr. (9 articles, 0 quicklinks, 25 diaries, 1791 comments [148 recommended, 3 rejected]) on Wednesday, Sep 10, 2008 at 9:46:48 AM

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Reply: No, you come off it, John.

John wrote:

I compared the result of your actions to the result of Nancy Pelosi's actions and the comment went no further. However, I'll interpret my comment if you have too much difficulty properly doing so.

Yes, you did, and that is a scurrilous attack on me and your premise is completely false. Pelosi supports the two-party system that is carrying out wars of aggression, and I do not. 

My premise is that in a John McCain administration, there will be no investigatiion or prosecution of George W. Bush, Dich Cheney and all of their confederates for the high crimes and misdemeanors that they have so clearly committed.

That is true, but it is also true for an Obama administration. Since Obama is committed to continuing the war crimes, he is not going to investigate and punish himself and his Democratic and Republican collaborators in Congress. He will uphold the Democratic Party precedent, as Bill Clinton did before him, and pardon everyone in the outgoing Republican administration. Obama is not a man to break with precedents.

Your misguided efforts to convince Americans, and particularly progressives and Democrats to forsake their citizenship and be derelict in their duty to vote in this election threatens to ensure a McCain victory. That would have the effect of removing that investigation and  prosecution from the table.

Excuse me? You already admitted that it was Pelosi and the Democrats, not McCain and the Republicans who took investigation, prosecution, or even impeachment off the table. How can you accuse McCain of doing something that Pelosi has already done?

Nancy Pelosi has announced a similarly misguided policy that impeachment and the congressional investigation that goes with it are off the table.

So why are you encouraging people to vote for her political party, if not to reward them for having taken impeachment and investigation off the table?

Is that clearer for you? I still have difficulty believing that this explanation on my part was necessary and that your protest is anything more than a Rovian inspired substitute for argument. Karl Rove is, after all another who shares your objective of reducing the progressive vote as much as possible.

The progressive vote? People who vote for the political party of Bush and Rove, or for the political party of Nancy Pelosi, who took investigation and impeachment off the table and whose candidate is committed to continuing the same high crimes and misdemeanors as Bush, are progressives? 

I guess your dictionary must be different from mine.  It is people like you, John, who keep encouraging others to repeat the same mistakes over and over again, who are standing in the way of progress. 

You admit that it was the Democrats who took impeachment off the table, yet you are encouraging people to vote for the Democrats on the grounds that if they don't, the Republicans will do what the Democrats have already done? 

And you expect people to take you seriously?

 

 

by Mark E. Smith (21 articles, 30 quicklinks, 100 diaries, 1325 comments) on Wednesday, Sep 10, 2008 at 3:57:24 PM

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Reply: I stand by my statements...

and reiterate that it is people like you who are assissting the real enemies of the American people whether you realize it or not, whether you intend it or not.

by John Sanchez Jr. (9 articles, 0 quicklinks, 25 diaries, 1791 comments [148 recommended, 3 rejected]) on Wednesday, Sep 10, 2008 at 6:04:21 PM

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Reply: Stand right there, John.

I'd been hoping you would stand by your statements, John, which is why I didn't flag your first comment.

It is obviously people like you, whether you realize it or not, whether you intend it or not, who are assisting the real enemies of the American people, by urging people to vote for the political party that took impeachment off the table, on the grounds that if the political party that has already taken impeachment off the table isn't elected, the other party "might" take impeachment off the table. You are urging people to vote for the Democrats on the grounds that the Republicans might do what the Democrats have already done.

So stand right there by your statements, John, so that everyone can see the type of person you are and your totally illogical and ridiculous reasoning, along with your scurrilous name-calling and accusations, just in case anyone had mistakenly thought that the sort of person who votes for Democrats might be more intelligent or progressive than the people who vote for Republicans.

The last time I looked at Rob's demographics, 64% of opednews readers did not identify as Democrats. I want you to keep standing by your statements to ensure that those of us who, unlike the Democrats, actually oppose the Republicans,  those of us who, unlike the Democrats, will not defend or protect the Republicans, and those of us who will not collaborate with the Republicans the way that the Democrats do, have a clear illustration of how Democrats like yourself ape the Rovian tactic of accusing others of doing what you yourself are doing, and then accuse others of Rovian tactics.

It is the marvel of the internet that your words remain there in all their obvious hypocrisy, so that those of us who can think and reason logically can see you for what you are and your party for what it is. Keep standing by your statements, John, because I've been referring people from other topics and other websites to come see you discredit yourself and the Democratic Party in your own words.

This is priceless!  And he's serious, folks -- nobody could make this stuff up.

ROFLMAO!

 

 

 

by Mark E. Smith (21 articles, 30 quicklinks, 100 diaries, 1325 comments) on Thursday, Sep 11, 2008 at 1:45:59 AM

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Reply: As you giggle yourself into a corner...

upholstered with your snark, consider what standing you have to comment at all as you reject your own citizenship.

by John Sanchez Jr. (9 articles, 0 quicklinks, 25 diaries, 1791 comments [148 recommended, 3 rejected]) on Thursday, Sep 11, 2008 at 8:37:53 AM

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Reply: Rejecting a corrupt duopoly,

and rejecting rigged elections is not the same as rejecting citizenship, John.

It is nobody's civic duty to vote in rigged elections.

It is nobody's civic duty to vote for President -- particularly since the Constitution FORBIDS U.S. citizens from voting for President. In 2000 and 2004, Bush was installed without the votes even being counted.

You may consider it your civic duty to cast a vote that has no bearing on who becomes President, in an election where the only presidential candidates with a chance of winning are committed to war crimes, torture, job outsourcing, deregulation, the erosion of civil rights, and other Democratic/Republican bipartisan policies to wreck this country, but many of us don't think that it is our civic duty to vote in rigged elections for candidates committed to destroying America.

It is the Democrats, the Republicans, and people like you who are destroying this country, in part by fraudulently placing names on the ballot in presidential races when our Constitution FORBIDS U.S. citizens from voting for President or Vice-President, and by trying to make people think that their vote is a voice in government when it has no bearing whatsoever on who is installed in office and, by law, needn't even be counted.

Thinking that it is your civic duty to vote in rigged elections in a country whose Constitution doesn't even grant you the right to vote, and which specifically prohibits you from voting for President and Vice-President, is the sort of foolishness that is always going to get people giggling, John.

 

by Mark E. Smith (21 articles, 30 quicklinks, 100 diaries, 1325 comments) on Thursday, Sep 11, 2008 at 3:24:36 PM

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As a slave would demand of his master...

We have no political power to demand anything of the government or the media.  The same folks own both.  The elections ARE a soap opera and a sport, carefully managed to suck in as many willing participants as possible in order to legitimize the whole charade.  The only viable threat to the status quo is withdrawal of consent; non-participation. Boycott the elections.  Refuse to be an "extra" in their Hollywood production. 

by Jim Eldon (0 articles, 0 quicklinks, 0 diaries, 253 comments [15 recommended, 0 rejected]) on Tuesday, Sep 9, 2008 at 9:35:45 AM

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Reply: Jim you sound like a right-wing shill

That is exactly what the right-wing neocons are hoping for. They want people to be disenfranchised and not vote. The less people participate and vote the more power that the neocons can consolidate and grab.

No one here including Senator Sanders is suggesting that the current system is perfect but it is all we have. IF we "progressives" don't take back the country the "Evangelicals" and neo-nuts WILL. Plain and simple!! Boycotting the election is EXACTLY the same as giving the keys of your house, your planet, and all that you hold dear to a bunch of incompetent right-wing tools. 

by E. Nelson (40 articles, 8 quicklinks, 26 diaries, 511 comments [57 recommended, 2 rejected]) on Tuesday, Sep 9, 2008 at 10:55:30 AM

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Reply: If we don't vote, the bad guys will win?

If we DO vote, the bad guys will still win. There are no good guys, just lesser evil guys. And these days you need a micrometer to measure how much less evil they might actually be.

In democratic countries with honest elections, the bad guys would like it if the good guys didn't vote. Here in the United States where at least 80% of all votes cast are counted by computerized central tabulators that can undetectably flip the votes from one candidate to another, and where there is nothing that people can do to prevent a fraudulently elected candidate from being sworn into office or to remove them once they are installed, the bad guys WANT people to vote. The more votes cast, the more votes the computers can flip from lesser evil candidates to greater evil candidates.

The reason that undemocratic countries hold elections is so that they can pretend that they are democratic countries and that the puppets of the oligarchs that rule them are democratically elected and have the support of the people. Only by boycotting the election could the American people, 90% of whom disapprove of Congress, demonstrate that disapproval. If you vote for something you don't approve of, it looks to all the world as if you approve of it because you voted for it.

That's why it is so strange that while most Americans disapprove of the wars, almost half of us will vote for one of two candidates committed continuing the wars we claim to disapprove of. How can you show that you disapprove of something by voting for it?

 

by Mark E. Smith (21 articles, 30 quicklinks, 100 diaries, 1325 comments) on Tuesday, Sep 9, 2008 at 3:36:41 PM

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Thank you.

It is just a big game to big media. Instead of turning off the TV, the public has jumped in with both feet -- swaying day by day to the beat of the pundits. Wake up. America.

http://farm4.static.flickr.com/3104/2823111369_064d9c2c6f.jpg?v=0

by Kathlyn Stone (46 articles, 227 quicklinks, 27 diaries, 690 comments [1 recommended, 0 rejected]) on Tuesday, Sep 9, 2008 at 9:44:26 AM

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Thank you Senator Sanders

Thanks Senator Sanders for all your hard work on "progressive" issues. I listen to you as much as I can on the Thom Hartman show and I can't imagine how much better this country would be if we had 5 more Senators with your vision and intellect.

by E. Nelson (40 articles, 8 quicklinks, 26 diaries, 511 comments [57 recommended, 2 rejected]) on Tuesday, Sep 9, 2008 at 10:43:55 AM

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Anna Nicole Smith Would Be Proud

In the selection of Sarah Palin, we see how Karl Rove's RNC is merging personality driven sensationalism with presidential politics. As Fox-TV has proven for over a decade, Americans are more likely to gravitate to reality-show antics then substance.

What most people don't realize, is that Rove's RNC office controls not only McCain's campaign and the Fox Network, but the office of the President, half of Congress and a slate of conservative talk show personalities.

Gore's latest book made the point that we are deliberately being distracted. Most recently by small-town scandal and intentionally divisive ongoing debates (abortion, gun rights, etc.), but the bigger point is that we are NOT talking about the economy, the federal deficit, America's image abroad and the interests of future generations of Americans.

Palin's explosive "Q-rating" (demand for appearances in media) has led the RNC to grant access only to those networks who show her deferential treatment. In the meantime, video has surfaced of Palin standing next to her pastor while he predicted Americans will flee to Alaska during the rapture. Palin also stated that God wanted us to fight the Iraq war and wanted her personally-approved pipeline deal to go through.

Bernie Sanders cannot hope to get his message out when he's competing with Fox TV, Rush Limbaugh, Sean Hannity, George Bush, Dick Cheney, ABC, NBC, CBS and the military-industrial PR machine.

by Gustav Wynn (77 articles, 65 quicklinks, 5 diaries, 421 comments [34 recommended, 0 rejected]) on Tuesday, Sep 9, 2008 at 11:08:20 AM

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The media sees it all as a game

And the media is beholden to both those in power and advertisers/corporations who have a stake in how information is disseminated to the public. The main stream media, with few exceptions, (Olbermann, Maddow), has completely lost sight of their noble responsibilities as the Fourth Estate and instead is bent on entertainment, albeit entertainment that the Murdochs etc of the world can skew for their own ends.

The silence in the media over the RNC protests and arrests of journalists, Sarah Palin's background information, and the lies repeated by the McCain campaign, has made it glaringly plain that the information the media spews out is controlled, edited, and intentionally silenced.

It seems as if we the people need to form a vast and powerful corporation of our own: The People of the U.S. INC, and a PO Box in the Cayman Islands, and paid lobbyists to boot in order to make a difference in our own "democracy": in other words: our republic, of the people for the people is on its last gasping breath. 

And in this last gasp, yes, we must vote, we must use the system, because the only way to prevent another fake presidential election is to vote in numbers sufficient to overcome the coming attempt to steal this election by the Rovians roving our country.

If Obama wins in Nov. but continues the Bush agenda virtually unchanged the question I ask: will this dis-empower and demoralize all of us or will it challenge us? 

If McCain wins in Nov. will the upcoming Police State, (as evidenced by the actions at the RNC), cause us to cower in silence or anger us into action? 

We will soon see one way or the other.

 

by Cheryl Abraham (13 articles, 2 quicklinks, 0 diaries, 207 comments) on Tuesday, Sep 9, 2008 at 11:24:51 AM

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Re: It is all about derivatives

Excerpt from F.I.A.S.C.O.: Blood in the Water on Wall Street by Frank Partnoy. 1997.

[1/5] "The idea behind this special trade, presented in its most primitive form, is this: Suppose you pay $100 for a pot of gold. Half the pot is real gold worth $90 and the other half is fool's gold worth $10. If tomorrow the two halves still are worth $90 and $10, and you sell the real gold for $90, can you claim a profit? The answer must be no, right?"

"Wrong. At least if you're in Tokyo. Suppose you buy the pot of gold and claim that each half cost 'on average' $50. Tomorrow, you sell the real gold for $90. Presto, you have booked a $40 profit. How? The real gold didn't cost you $90; it cost you $50 - 'on average' - and you sold it the next day for $90, a gain of $40. Of course, you didn't really make a profit, but by Tokyo accounting standards, it was close enough, and such trading was quite common."

Obviously, if you recognized a $40 profit on the real gold, then eventually even under Tokyo accounting rules you would be required to recognize a $40 loss on the fool's gold. The key word is 'eventually.' If you could avoid telling anyone that the fool's gold was actually worth only $10 when you were claiming it still was worth it's 'average' cost of $50, you might not have to recognize that loss for a long time. In Japan that long time could be your entire career. In fact, if you could retain the fool's gold for long enough - say, until you retired from the company - who cared? At that point the loss would become somebody else's problem."

"I was amazed by this idea. It was financial alchemy at its best. The only problem with the pot of gold example is that it's too easy to distinguish fool's gold from real gold. The accounting and regulatory authorities, even in Japan, were sophisticated enough to catch an investor using this simple trick because they would be able to discover that the two halves were really worth $90 and $10, respectively, not $50 'average.' In other words, even they could tell what was fool's gold."

"Consequently, an investor needed to construct a more complicated way of doing the same thing, using 'halves' so complex that accountants and regulators couldn't easily discover their actual worth. For this higher level of sophistication, Japanese buyers turned to Morgan Stanley, and to derivatives."

"As with many derivatives deals, Morgan Stanley employees debate who gets credit for the complex idea that allowed Japanese institutions to recognize billions of dollars of false profits. I certainly don't claim any credit for it, nor do I want credit. The idea predated my arrival at the firm, anyway, so it can't be blamed on me. Whoever invented the trade, one thing is clear: They gave it a horrible acronym." [1/5]

[2/5] "Not many people at Morgan Stanley, even in DPG, know about the AMIT's (American Mortgage Investment Trust). The firm completed its first AMIT on February 14, 1992. That $100 million trade generated profits of $2 million, with minimal work. Numerous clients wanted similarly quick and easy profits, and by the end of the year the group had closed the 14th AMIT, although admittedly a few numbers had been skipped."

"It's also time to give you the inside scoop on the AMIT - which DPG (Derivatives Product Group) salesmen often called the 'Shamit' or 'Scamit' - described in the same way it was relayed to me. It's no different in principle from combining real and fool's gold. But I should say at the outset that these things are not easy to understand - one reason the AMIT succeeded was that its complexity masked its true nature. . . Whoever said one of the greatest frauds in the history of investment banking would be easy?"

"The MX trade was structured as a typical AMIT. Believe it or not, the recipe for an AMIT trade begins at home, with home mortgages. In fact, some of the billions of dollars actually paid to Japanese investors through Morgan Stanley's various AMIT trades, including MX, may originally have been from a check you wrote to make your mortgage payment."

"AMIT trades use mortgage derivatives, which split up the pieces of mortgage interest and principal payments. The ability to split mortgage payments into pieces was the spark that generated the idea for the AMIT trades. Remember, the goal of the AMIT trade is to create two "pieces" that appear to be the same size but actually aren't. In the example I described earlier, the real gold was worth $90, the fool's gold was worth $10, and each half was worth 'on average' $50. In that example, the $90 of real gold would be called the "premium" piece, and the $10 of fool's gold would be called the "discount" piece. The AMIT trade requires both a premium and a discount piece."

"For the MX trade, as well as for many AMIT trades, the more valuable premium piece, the one worth $90 in my example, is called an IOette. The less valuable discount piece, the one worth $10 in my example, is called a zero coupon bond, also known as a Zero or a Strip. The Zero is the same type of bond that Joseph Jett allegedly lost $350 million on at Kidder, Peabody, that the Strips traders at First Boston supposedly made $50 million trading one year, and that we used in FP Trust. The zero coupon bond is simple. It's just a single payment, made by the U.S. government, at some specified future date."[2/5]

[3/5] "In contrast, the IOette is much more complicated. An IOette is a type of collateralized mortgage obligation, or CMO. CMO's may sound complex, but they are actually very simple. When you make your home mortgage payment, your check typically is passed through to a federal agency, such as Fannie Mae or Freddie Mac, that, as part of its day-to-day business, receives mortgage payments from various homeowners and collects them in mortgage pools. These pools form the basis for various mortgage securities, including mortgage derivatives such as CMO's, and your mortgage payments may be pooled through these securities and passed throughout the world. CMO's are simply different kinds of strips of home mortgages. They come in various shapes and sizes, of which the IOette is one of the most unusual."

"The most common way to strip apart mortgages is by interest and principal: the "interest only" pieces (IO's) have a claim on the home owner's payments of interest, and the "principal only" pieces (PO's) have a claim on only the payments of principal. IO's and PO's are the two most basic types of CMO's, and every monthly mortgage payment you make is part interest and part principal, that can be thought of as part IO and part PO. There are many more complex CMO derivatives, with exotic names like PAC's, TAC's, inverse floaters, and Z bonds."

"The special difficulty with all mortgages, including CMO's, is deciding what portion of the mortgage pool's principal will be prepaid by a given date. If interest rates decline by several percent, you might decide to refinance your current mortgage by prepaying the principal, then taking out a new mortgage at a lower rate. However, if every owner in a pool prepaid their mortgages, certain CMO owners would be devastated. For example, an owner of IO's wouldn't receive any more interest payments once  the mortgages in a pool were prepaid, so his IO's would become worthless."

"What makes CMO's especially dangerous is that although they're extremely risky, they can appear quite safe. One deceiving and dangerous aspect of CMO's is their credit rating: AAA. Because payments on most CMO's are guaranteed by an agency of the federal government, the companies who rate bonds' credit quality, Standard and Poor's and Moody's, assign most CMO's their highest credit rating. But this AAA rating is misleading. Although an agency of the federal government is unlikely to default on its guarantee, default is only one of the risks  associated with CMO's. Investors in CMO's can and do lose money for other reasons, including the risk of repayment of principal. These additional risks are not captured by the credit rating." [3/5]

[4/5] "But the most important yield curve to derivatives salesmen is one you won't find in the financial pages - the forward yield curve, or "forward curve." Actually, there are many forward curves, but all are based on the same idea. A forward curve is like a time machine: it tells you what the market is "predicting" the current yield curve will look like at some point forward in time. Embedded in the current yield curve are forward curves for various time forward times. For example, the "one-year forward curve" tells you what the current yield curve is predicting the same curve will look like in one year. The "two-year forward curve" tells what the current yield curve is predicting the same curve will look like in two years."

"The yield curve isn't really predicting changes in the way an astrologer or palm reader might, and as a time machine, a forward curve is not very accurate. If it were, derivatives traders would be even richer than they already are. Instead, the yield curve's predictions arise, almost like magic but not quite, out of arbitrage - so-called riskless trades to capture price differences between bonds - in an active, liquid bond market."

"Forward curves are an incredibly powerful and important concept in derivatives trading. If you don't understand forward curves and you work at an investment bank, the derivatives salesmen and traders are probably laughing at you. If you don't understand forward curves and you're a normal person investing in anything other than stocks and bank CD's, you're probably being screwed by someone who does understand them."

"The downside risk made longer maturity PERLS (Principal Exchange Rate Linked Security) especially attractive to sell. Selling a five-year PERLS to a widow or orphan meant you didn't have to worry about the repayment of principal for five years - an entire career on Wall Street - and even then there was a decent chance the buyer would have bet correctly and made money. Not even a widow or orphan will complain about receiving $200 instead of $100 at maturity."

"The beauty of this structured note was that it effectively hid the derivatives trade from public view. If you were a fund manager and you bought the sterling structured note, you wouldn't have to tell your boss or a regulatory agency, "Hey guys, look what I just bought - a Three Year Currency Protected Sterling Inverse Floater." The packaging hid all that. The note, too, looked innocuous, this time like a three-year bond issued by the AAA-rated Federal Home Loan Mortgage Corporation, popularly known as Freddie Mac. A buyer was like an underage kid who pays the local bum to buy booze for him, then pours the booze in a Coke can so his parents won't notice. Except in this case the local bum, an investment bank, was receiving more than just a few dollars for the effort." [4/5]

[5/5] "Freddie Mac, headquartered in McLean, Virginia, was the perfect safety package. Freddie Mac is a U.S. government agency that guarantees residential mortgages and since early 1993 has issued complex derivatives, too. The agency simply uses the derivatives the investment bank creates to borrow at a slightly lower cost. The bank structures the note issuance and parcels out the risk; Freddie Mac provides the credit guarantee. So never mind that the coupon payment is 16.050% - [2 x Two (2) Year Pound Sterling Swap Rate], payable semi-annually for three years in U.S. dollars. It's Freddie Mac, for God's sake. It's AAA and implicitly backed by the U.S. Treasury. Anyone can buy this."

"Why might unsophisticated state and local governments want to bet that the British two-year swap rates would decline? It's hundreds of miles from most of these buyers to the Mississippi River, thousands to the Thames. Why might the leaders of a community college, or a city council on this side of the Atlantic think British swap rates would decline?"

"Well, for one thing the bank's researchers said they would. And guess which derivatives trade those unbiased researchers were recommending that you should buy to take advantage of anticipated lower rates? Research suggested inflation was declining in Britain and that such a decline would lead to lower interest rates. At the same time, the sterling yield curve was very steep, which meant the 'magnified' forward curve also was even higher, and steeper, predicting that rates would increase. This seemed to be a perfect opportunity to bet against the forward curve. Could you afford not to?"

"The researchers at an investment bank had an amazing capacity for generating predictions that contradicted those of the forward curve. And every time they did, the bank's derivatives group would create a derivatives trade supported by the research. Or maybe it was the other way around." [5/5]


 

Sept. 9 (Bloomberg) -- When the history is written on the collapse of Fannie Mae and Freddie Mac, it will go down in the annals of corporate scandals as one of the greatest accounting scams committed in broad daylight. 

 

All anyone had to do to know the government-guaranteed mortgage financiers were insolvent was read their financial statements. You didn't need a trained professional eye to discern this open secret, only a skeptical one. 

 

Just last month, Fannie and Freddie said their regulatory capital was $47 billion and $37.1 billion, respectively, as of June 30. The Treasury Department now says it may have to inject as much as $200 billion of capital into the two companies. Nothing much changed at the companies in that span. They just couldn't get the government to keep up the ruse any longer. 

 

To have believed those capital figures, you first needed to accept two key assertions by the companies. The first was that the mortgage-market meltdown was a temporary blip. The second was that Fannie and Freddie both would be wildly profitable for decades to come, once the blip was over. 

 

These weren't the only fairy tales Fannie and Freddie told. They're just the ones that had the biggest impact on their calculations of regulatory capital. Had Fannie and Freddie ever backed off these predictions, they would have been officially insolvent, even under the government's lax standards. 

 

Until late last week, though, nobody with any authority was willing to call them on it. That's why Fannie and Freddie were able to avoid a government takeover for so long.

 

By the time the government moved in, Freddie had accumulated $34.3 billion of paper losses on mortgage-related securities that it excluded from its calculations of regulatory capital. All Freddie had to do was say the losses were "temporary," and they could be kept out of the company's capital figure. It didn't seem to matter how ridiculous the claim was. 

 

Fannie played the same game. As of June 30, it had $11.2 billion of supposedly temporary losses on mortgage-related securities, which it excluded from its calculations of core capital, as the government calls it. (A better name would be "kore kapital," like the imitation krab sticks on a sushi bar menu.) 

 

The so-called temporary losses had the warped effect of inflating a line item on both companies' balance sheets called deferred-tax assets. The bigger the companies' losses got, the more these tax assets grew, based on the premise that someday the companies would be able to use the losses to offset future income-tax bills. 

 

The catch is that if a company doesn't expect to have enough profits to use these assets, it's supposed to record a valuation allowance on its balance sheet to reduce their size. Freddie and Fannie didn't let this requirement get in the way. They never set up any allowances.

So, as of June 30, when Freddie said it had deferred-tax assets of $18.4 billion, it supposedly envisioned about $50 billion of future taxable income that, in its judgment, would probably materialize in the face of the worst financial crisis since the Great Depression. 

 

Ditto for Fannie. It claimed to have $20.6 billion of deferred-tax assets as of June 30. 

 

The companies' delusions didn't stop there. In their financial disclosures, both companies represented that the fair- market value of their tax assets was billions of dollars more than what they were allowed to show under generally accepted accounting principles. 

 

All of this was malarkey, of course. And it was all disclosed, even if the companies' explanations weren't always clear.

 

There were lots of gatekeepers who could have stopped this sooner and chose not to. Freddie and Fannie had boards with outside directors and audit committees, though the evidence that they did their jobs is scant. 

 

Freddie's auditor, PricewaterhouseCoopers LLP, could have stopped it, and didn't. The same is true of Fannie's auditor, Deloitte & Touche LLP. 

 

The Securities and Exchange Commission's chairman, Christopher Cox, had other priorities. He was too busy this summer trying to prop up the companies' stock prices by chasing short sellers away from their shares. 

 

James Lockhart, the director of the Federal Housing Finance Agency, kept telling the public this summer that Fannie and Freddie were adequately capitalized. He must have known this was a joke, assuming he had bothered to read their quarterly reports. 

 

All the while, Ben Bernanke at the Federal Reserve and Hank Paulson at Treasury offered the same warm assurances about the companies' capital. They surely knew better, too. 

 

Don't cry for investors who lost money on the companies' stocks either. If they didn't do any research or didn't understand what they owned, the people they should blame are themselves. 

 

The reality is that investors should withhold their faith in the government officials who regulate our financial markets. That's not cynicism. In the parlance of securities law, it's a risk-factor disclosure. 

 

The moral of this story: You're on your own, folks, and there's more where this came from. 

 

(Jonathan Weil is a Bloomberg News columnist. The opinions expressed are his own.) 

 

Last Updated: September 9, 2008 03:52 EDT

by Drew Terry (3 articles, 0 quicklinks, 28 diaries, 125 comments [2 recommended, 0 rejected]) on Tuesday, Sep 9, 2008 at 11:35:23 AM

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Drew Terry - Uh, maybe you should have....

submitted this as an article. That is the longest comment I've ever seen on OEN!!!

Not sure how that info ties into Bernie's article and the subjects people were discussing here - though it does give one another insight into the Fannie/Freddie debacle.

by Cheryl Abraham (13 articles, 2 quicklinks, 0 diaries, 207 comments) on Tuesday, Sep 9, 2008 at 11:44:12 AM

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What about free speech?

First of all, thank you Bernie Sanders!! Thank you for your vocal bravery in calling for the overturning of the unconstitutional Patriot Act.

In light of the Tianenmen Square-like police violence at St Paul and the RNC, and police break-ins to homes prior to it and also during the floods in New Orleans, may I urgently appeal to you, Bernie Sanders, to get people involved in overturning the police-empowering Patriot Act.

America must be restored as The Land of the Free. Lacking that, we won't even be talking about saving the whales, global warming, healthcare or poverty.

Police are breaking in to homes and getting away with it where criminals would be jailed. Police are brutalizing people for free speech, a major crime. Major. THIS IS NOT FUNNY!

Bernie Sanders, please help us. You are wonderful. SAVE OUR FREE SPEECH! SAVE OUR DEMOCRACY! Thank you for all your wonderful work. You are a gem. We treasure you!

by Kathryn Smith (110 articles, 2 quicklinks, 43 diaries, 542 comments [23 recommended, 0 rejected]) on Tuesday, Sep 9, 2008 at 12:20:01 PM

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Reply: Bernie is a great man, Kathryn.

But he is not a Saviour or Messiah. He is only one of 435 votes. He happens to be a vote not under control of the major political party leaderships, but one vote cannot change the fact that the major parties control most of the votes in Congress.

Bernie represents his constituents rather than the major political parties and their corporate sponsors because he chooses to do so. Most Members of Congress represent their political parties and corporate sponsors rather than their constituents because they can and their constituents have no way to hold them accountable.

Did you ever read my little essay, The Fable of Lanova Messiah, about how Congress works, Kathryn? 

It is impossible to bring about change by working within an institution that is designed to prevent change. A good person in Congress is like a race horse in a tar pit. No matter how good that race horse is, don't bet on it to win.

 

 

by Mark E. Smith (21 articles, 30 quicklinks, 100 diaries, 1325 comments) on Tuesday, Sep 9, 2008 at 3:21:28 PM

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Reply: bernie is only partly independant

bernie does not represent all the interests of his consituents, and he is certainly partly controlled by the democratic party. 

I have been involved in the impeachment movement for almost 2 years in vermont, and the entire congressional delegation has opposed anything that would lead to impeachment. I have tolked to staff of each of them, and none can refute the factual arguments and constitutional abuses that have clearly been perpetrated, yet they all give political excuses.

Also the vermont legislature was voting on impeachment (one poll had soemthing like 64% of vermonters supporting impeachment) and the state senate voted overwhelmingly in faver, but the speaker of the house after being forced to allow a vote by public outcry arraneged one with no debate and no testimony so that she could make sure it did not pass.

I am sure the national democratic party was twisting her arm and our congressional delegation, including sanders did NOTHING to follow the will of the people of the state.

While i respect bernie and Leahy and Welch in a number of areas they are astonishingly unconcerned about the constitution, and this is because of political opportunism by the democrats who don;t want to look partisan by demanding accountability for the Bush administration 

by Tony Duncan (0 articles, 0 quicklinks, 0 diaries, 58 comments [1 recommended, 0 rejected]) on Tuesday, Sep 9, 2008 at 11:15:58 PM

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Reply: Interesting, Tony.

Thanks for the inside scoop from Vermont.

Tony Duncan wrote:

While i respect bernie and Leahy and Welch in a number of areas they are astonishingly unconcerned about the constitution, and this is because of political opportunism by the democrats who don;t want to look partisan by demanding accountability for the Bush administration 

Uh-oh. The Democrats don't want to look partisan?

Has anybody ever told them that by asking people to vote for them instead of voting for Republicans, they make themselves look VERY partisan?

Of course  they're not partisan, but if they really wanted to look nonpartisan the first thing they should do is stop asking people to vote for them. It gives a false impression of partisanship that, if they really don't want to appear partisan, they should discontinue immediately.  ;)

 

 

by Mark E. Smith (21 articles, 30 quicklinks, 100 diaries, 1325 comments) on Wednesday, Sep 10, 2008 at 2:09:03 AM

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REALLY???

This Election is Not a Soap Opera or a Football Game: It is About the Future of Our Country

 Actually it IS a soap opera...  We have some of the elements that make great drama..  We have Comedy, SEX, not much action, but it is there...

Is there ANYONE on these boards that truly thinks there is a dimes worth of difference between what McCain will do vs what Obama will do?

Corporate America has allowed us permission to vote for two candidates...  Not just any two candidates, but two of the worst candidates in the HISTORY of the United States, and THAT IS SAYING SOMETHING given recent times....

 Anyway, the future of this country has been decided, and the two clowns at the top of the ticket will have nothing to do other than play ball...

 Ciao, CZ

by steve scheetz (4 articles, 0 quicklinks, 3 diaries, 829 comments [52 recommended, 0 rejected]) on Tuesday, Sep 9, 2008 at 12:55:46 PM

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Reply: Really??

Steve I know you would like us to believe that but we both know it is not true. Name one corporate interest that Barack Obama is beholden to.

 I can give you at least three that McCain will be beholden to.

by E. Nelson (40 articles, 8 quicklinks, 26 diaries, 511 comments [57 recommended, 2 rejected]) on Tuesday, Sep 9, 2008 at 2:57:26 PM

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Reply: so Obama is NOT a Democrat?

He is beholden to GE

he is beholden to Big Pharmaceuticals

he is beholden to the Lawyer Lobby

he is beholden to every special interest the Democrat Party is beholden to.  

Casinos and gambling, Teachers unions...  He is beholden to them all...

If you want to see if there is any sort of bias in the media, just take a look behind which candidates they put their money....

So, if you don't believe me, just take a look at "opensecreds.org"  that is a site that keeps track of who is financing whom...

Ciao, CZ

by steve scheetz (4 articles, 0 quicklinks, 3 diaries, 829 comments [52 recommended, 0 rejected]) on Tuesday, Sep 9, 2008 at 5:01:15 PM

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Reply: E Nelson- Obama is beholden to

Far more than just three corporate interests

 Just for starters though

1. Big Pharma

2. Coal Industry

3. Nuclear Power Industry

Not to mention the corporations behing the 361 seperate corporate money bundlers that raised him $98 million LAST YEAR alone.

 

Wake up

by Michael Cavlan (15 articles, 0 quicklinks, 6 diaries, 538 comments [131 recommended, 2 rejected]) on Tuesday, Sep 9, 2008 at 5:36:04 PM

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Reply: One other Big Thing

You also might list who's running Him -- Zbigniew Brzinski (whatever the spelling, the relationship is telling).

by boomerang (0 articles, 7 quicklinks, 0 diaries, 556 comments [215 recommended, 1 rejected]) on Tuesday, Sep 9, 2008 at 6:44:45 PM

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"My good friend" the Senator from Vermont

(Excuse it.  I'm dreaming of running for the Senate and am practicing speaking out of both sides of my mouth.) Currently, Bernie Sanders and Russ Feingold are my favorite Senators and I hope they know it. 

After the calamitous 2004 election, I decided I would keep an eye on the Senate as the only government body which wasn't totally corrupted by Republican arrogance.  There were some successes, mostly in the evasion of total presidential bill writing.  Now that it's time for another presidential pick and we have a few more Democrats in the Senate, the upper chamber doesn't seem as relevant to me.  

For a president, I want a man or woman of any ethnicity who can see the history of the United States and connect that history to the events in today's world.  No one is going to get a cent from me for campaign buttons or T-shirts.  If I read something a candidate has written, I will take that into account.  

Since 1960, I have thought about Senators running for the presidency. Two young men, buddies in some collegial way, were beating each other over the heads about a couple of Pacific outposts, while I wanted a discussion of civil rights. I read both their books.

Curiously, things worked out pretty well during the Sixties.    As I think back on that time, I've often wondered what would have happened if the election had gone the other way.  (With a 22-year history of living in Chicago, I'll stop right there.)  The best books dealing with the  Kennedy/Johnson legacy are, for me, Taylor Branch's trilogy of the King Years.  Actions took place first, and then followed legislation.  Branch outlines how Jack sent Bobby out to do the real work.  Dr. King had a position on how change would come, but it took people like Myles Horton to help him understand how the people can forge a path.  When the Senators' Senator came in for the final wrapup, civil rights law codified what the people wanted.  However, Lyndon Johnson got sloppy, and as the third volume of the trilogy shows easily, leaders cannot stand on the horns of a dilemna.  

If our current contenders have learned anything about the history of war and peace in the United States, they should have learned that Americans are disenchanted with oppressive military spending, and maybe also with the destructive action.  It takes no think tanks to tell us that the United States is driving itself into subservience through imperial grandstanding.  What I wonder is: Who has the nerve to tell us Americans that changing to constructive commerce will take time and that we may lose an easy living while we change from a military economy? 


by Margaret Bassett (45 articles, 2909 quicklinks, 42 diaries, 1851 comments [99 recommended, 0 rejected]) on Tuesday, Sep 9, 2008 at 3:19:56 PM

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Thanks, Cheryl -

I submitted the post as a diary entry when I submitted the comment.

I know it is long. The length may defeat the purpose I had in mind, which is to get people to read it.

Especially those who would not otherwise read the post -

Fannie, Freddie & Derivatives http://www.opednews.com/maxwrite/diarypage.php?did=9178

All I can do is try and see what might work.

It is tough to find the sweet spot.

I perceive common reactions to informative posts as:

Too long = too little time to read
Too short = too little information
Too technical = too intimidating
Too conspiratorial = too drastic thoughts
Too many topics = too short attention span
Too many dots to connect = too 'painful re-alignment with reality' (*)

(*) credit: Hunter S. Thompson

The essential elements are:

On the $5 TRILLION Fannie/Freddie loan portfolios are built derivatives contracts worth at least $50 - $100 TRILLION (out of $600 TRILLION total derivatives trade worldwide).

The reason Fannie/Freddie must not be allowed to "fail" has nothing to do with the mortgage market for U.S citizens. It has everything to do with supporting the contracts and value for which is DERIVED from the Fannie/Freddie mortgages.

Who knows how many contracts out there are valued at "fools gold" prices?

The idea behind this special trade, presented in its most primitive form, is this: Suppose you pay $100 for a pot of gold. Half the pot is real gold worth $90 and the other half is fool's gold worth $10. If tomorrow the two halves still are worth $90 and $10, and you sell the real gold for $90, can you claim a profit? The answer must be no, right?
 
Suppose you buy the pot of gold and claim that each half cost 'on average' $50. Tomorrow, you sell the real gold for $90. Presto, you have booked a $40 profit. How? The real gold didn't cost you $90; it cost you $50 - 'on average' - and you sold it the next day for $90, a gain of $40. Of course, you didn't really make a profit, but by Tokyo accounting standards, it was close enough, and such trading was quite common."

Obviously, if you recognized a $40 profit on the real gold, then eventually even under Tokyo accounting rules you would be required to recognize a $40 loss on the fool's gold. The key word is 'eventually.' If you could avoid telling anyone that the fool's gold was actually worth only $10 when you were claiming it still was worth it's 'average' cost of $50, you might not have to recognize that loss for a long time.  

The "fools gold" profits would be discovered for the "fools gold" losses they actually are.

Does that explain the actual crisis of Fannie/Freddie?

Why the "news" coverage is a constant soap opera?

Why the elections are reported in war and sports metaphors?

To keep our eye off the ball (sports metaphor pun intended).

Thanks!

by Drew Terry (3 articles, 0 quicklinks, 28 diaries, 125 comments [2 recommended, 0 rejected]) on Tuesday, Sep 9, 2008 at 7:46:17 PM

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Physics...

...will "decide" the future of "our" country

by waldopaper (15 articles, 3 quicklinks, 34 diaries, 609 comments [84 recommended, 0 rejected]) on Tuesday, Sep 9, 2008 at 10:03:11 PM

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perfect pic, Kathlyn

elections and election coverage should be all that Bernie Sanders says... but I can't escape the knowledge that our electoral system itself is a joke. Latest report:  ‘Fatally Flawed’ Systems Await Voters: ‘Drastic Change Needed’

A new report, and video, has been issued by the Computer Security Group at the University of California, Santa Barbara, which shared in voting system reviews conducted by Ohio and California last year. "All voting systems recently analyzed by independent security testers have been found to contain fatal security flaws. There is need for drastic change. The very core of our democracy is in danger."

here's another fave cartoon of mine:

click here

by Rady Ananda (182 articles, 374 quicklinks, 49 diaries, 1718 comments [201 recommended, 2 rejected]) on Tuesday, Sep 9, 2008 at 11:45:10 PM

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Well, yes

American politics has been both a soap and a ball game ever since that guy from California, WHO USED TO SELL BORAXO!!!!!, and the DNC sold us such crap as trickle down economics. The commercials are the media pundits and they are worse than the show.

by Ivan Hentschel (12 articles, 0 quicklinks, 10 diaries, 302 comments [4 recommended, 0 rejected]) on Wednesday, Sep 10, 2008 at 1:27:36 PM

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