Open Line Friday!

“We got the babe on our ticket.”

–Rush Limbaugh

159 Community Comments, Facebook Comments

  1. Laughing Boy says:

        Mr. President, this week Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.

       The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.

       The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.

       For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac-known as Government-sponsored entities or GSEs-and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay.

       I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.

       I urge my colleagues to support swift action on this GSE reform legislation.

      • Laughing Boy says:

        Senator Obama talks a tough game on the financial markets but the facts tell a different story.  He took more money from Fannie and Freddie than any Senator but the Democratic chairman of the committee that regulates them.  He put Fannie Mae’s CEO who helped create this disaster in charge of finding his Vice President. Fannie’s former General Counsel is a senior advisor to his campaign.  Whose side do you think he is on? When I pushed legislation to reform Fannie Mae and Freddie Mac, Senator Obama was silent.  He didn’t lift a hand to avert this crisis.  While the leaders of Fannie and Freddie were lining the pockets of his campaign, they were sowing the seeds of the financial crisis we see today and enriching themselves with millions of dollars in payments.  That’s not change, that’s what’s broken in Washington.

        • ClubTwitty says:

          Here’s some analysis from ABC News:

          Talk about words coming back to haunt you.

          gramm Phil Gramm’s comment about “nation of whiners” come back to haunt McCain campaign during current finance crisis.

          …Though Gramm, a former Texas senator, is no longer a member of McCain’s close-knit team, he still seems to be assisting the campaign.

          Last week, former Republican presidential candidate Ron Paul says Gramm, who is a vice chairman of the investment banking division at UBS, called to urge him to endorse McCain. Gramm also appeared in the audience at an Aspen Institute Forum featuring McCain last month.

          …Gramm’s comments seem all the more stark with the financial upheaval of the past few weeks, including the government takeover of mortgage giants Fannie Mae and Freddie Mac, as well as the de facto takeover of largest insurer AIG.

          “This is a mentality that doesn’t understand the nature of systemic risks in financial systems,” says Joseph Stiglitz, Nobel Prize-winning economist and former chairman of President Clinton’s Council of Economic Advisers. “It’s social Darwinism.”

          Economic experts say that Gramm and others are to blame for the current crisis that is shaking Wall Street.

          Gramm’s successful effort to pass banking reform laws in 1999, which reduced decades-old regulations separating banking, insurance and brokerage activities, helped to create the current economic crisis.

          “As a result, the culture of investment banks was conveyed to commercial banks and everyone got involved in the high-risk gambling mentality. That mentality was core to the problem that we’re facing now,” Stiglitz says.

          • Laughing Boy says:

            used facts in his speech, which I quoted verbatim.  You quoted “analysis” from some flack at ABC?

            I stopped reading here:

            Though Gramm, a former Texas senator, is no longer a member of McCain’s close-knit team,

            And he’s right about the ‘nation of whiners’.  In fact, that quote defines the netroots community.  

            BTW, where’s the Dow today?  Isn’t that (according to you) the panic meter for the economy?

            • ClubTwitty says:

              please cite a comment, any comment, where I indicate the daily fluctuation in the DJIA is the panic meter.  

              McSame’s ‘facts’ are a bit one-sided, as plenty of ‘analysis’ has shown.  But then again, I do not expect you to do much more than parrot McShameful talking points.  

              • Laughing Boy says:

                Where his facts as I quoted are less than accurate.

                I was lumping you in with the rest of the freaks around here grousing about the DJIA the last week.

                Sorry, that was unfair and I feel horrible about it.

                • ClubTwitty says:

                  not that anything that disagrees with what you already ‘know’ really matter.

                  • Laughing Boy says:

                    Senator Obama talks a tough game on the financial markets but the facts tell a different story.  He took more money from Fannie and Freddie than any Senator but the Democratic chairman of the committee that regulates them.

                    True.  Chris Dodd took more.

                    He put Fannie Mae’s CEO who helped create this disaster in charge of finding his Vice President. Fannie’s former General Counsel is a senior advisor to his campaign.

                    True.  Maybe their nicknames around the office are “Hope” and “Change”.

                    While the leaders of Fannie and Freddie were lining the pockets of his campaign, they were sowing the seeds of the financial crisis we see today and enriching themselves with millions of dollars in payments.

                    True.

                    The rest is editorial, but it’s solid.

                • Sir Robin says:

                  The stock market is coming back because the taxpayers are coming to save it. This you like?

                  • Laughing Boy says:

                    Never took you for a free marketer. What should have been done?

                    • Fidel's dirt nap says:

                      If we had some oversight this wouldn’t have happened in the first place.  That’s not a partisan statement either, and it would have been pennies on the dollar.

                      Yes, Wall Street is rebounding for sure.  It only cost us taxpayers $ 100 billion or so this week alone, but you know that’s the free market.

                    • Laughing Boy says:

                      The Federal Housing Enterprise Regulatory Reform Act of 2005?

                    • Fidel's dirt nap says:

                      That is the bill McCain had that died in committee, right ?

                    • Sir Robin says:

                      Find the individuals responsible, put all their faces on a deck of cards, and hang them in a public TV display!

                    • Laughing Boy says:

                      do about losing two of his top two advisors, then?

                    • Sir Robin says:

                      To The Editor:

                      Yesterday, Senator John McCain released a television commercial attacking Barack Obama for allegedly receiving advice on the economy from former Fannie Mae CEO Franklin Raines. From the stump, he has recently tried tying Senator Obama to Fannie Mae, as if there is some guilt in the association with Fannie Mae’s former executives.

                      It is an interesting card for Senator McCain to play, given that his campaign manager, Rick Davis, was paid by Fannie Mae and Freddie Mac several hundred thousand dollars early in this decade to head up an organization to lobby in their behalf called The Homeownership Alliance. …

                      I worked in government relations for Fannie Mae for more than 20 years, leading the group for most of those years. When I see photographs of Sen. McCain’s staff, it looks to me like the team of lobbyists who used to report to me. Senator McCain’s attack on Senator Obama is a cheap shot, and hypocritical.

                      Sincerely,

                      William Maloni

                      Fannie Mae Senior Vice President for Government and Industry Relations (1983-2004)

                    • BlueCat says:

                      massive bail outs, or massive failures as in the case of the Great Depression, always occur under Republican administrations?  If they’re so great on the fiscal stuff, why is that, LB? Coincidence?  I think not. I think trickle down and no regulation just keeps failing because it’s crappy economic theory for everyone but a few at the top.  

                      They know they can keep on building houses of cards and making a killing until it all falls apart and then we’ll have to rescue them or go down with them.  It’s about an elite grabbing all the benefit and  sticking the rest of us with all the risk.  And it works great if you are a member of that tiny elite.  For the rest of us, not so much.

              • Haners says:

                Just thought you should know since you keep referring to him as something other then his name…

                  • bob ewegen says:

                    “Sarah Palin’s lesser half.”

                  • Laughing Boy says:

                    Don’t you want people to take you seriously?

                  • Haners says:

                    I know this must be difficult for you, but let’s say it together…

                    McCain

                    McCain

                    McCain

                    Good job!

                    • ClubTwitty says:

                      as in shameful

                      and the same as Bush

                      Vote McCain/Palin 08 for 8 more years of the McSame old shit

                    • Laughing Boy says:

                      you’re mature and rational about your politics.

                    • ClubTwitty says:

                      I agree I am.

                    • parsingreality says:

                      For whatever that’s worth.

                    • Haners says:

                      Good to know how seriously your taking this and that I shouldn’t waste my time with your posts.

                      Oh, and you’ve lost all rights to bitch about people calling Obama a muslim.  If you’re content to be petty, be prepared for others to be petty.

                      And like it.  

                    • ClubTwitty says:

                      are legitimate critiques.  I think calling Obama a Muslim is not.  But go ahead.  

                      I think the stakes are terribly serious, and I think McCain/Palin would be a disaster.  

                    • Laughing Boy says:

                      Like it or not, and even if you disagree with his political positions, John McCain has more patriotism and maturity in the corn in his shit than you have ever displayed here.

                      Oppose him for President, work against his election – those are noble causes, but respect him for how he’s served his country.

                      Fool.

                    • ClubTwitty says:

                      and I do not see where his policies as president would differ significantly from Bush.  Until you can show me I am wrong on these points–and comparing me to McCain’s shit isn’t exactly sufficient nor does it bother me, as you label me immature to boot–I will continue to refer to John Sidney as McShameful and McSame.  

                      You have never seen me post here in a manner that is disrespectful of Mr. McCain’s military service, nor will you.

                      You also have no clue about what connections I have to the military.  

                      I understand that you recognize McCain’s vulnerability on the issue of his total abandonment of his integrity as he seeks the presidency, and the fact that McCain=Bush means Obama wins.  That sense of vulnerability is well-founded, as it is based on truth.  

                    • Haners says:

                      In that many of the other liberals here have decried referring to McCain as “McSame” or whatever because they view it as disrespectful.

                      You do not.

                      So yes, you are alone there buddy.

                    • AbUnoDisceOmnes says:

                      are a dime a dozen.  Haners has done his share of name calling, even of posters here, let alone political figures.

                    • Laughing Boy says:

                      Spanish-language ad?

                      Is that honorable?

                      You really want people to take you seriously when you charge that any Presidential candidate has ‘totally abandoned’ their integrity?

                      It’s over the top.

                    • ClubTwitty says:

                      I really do.  When you refer to Obama as The One ™ is that meant as a term of respect?

                    • Laughing Boy says:

                      But it’s a far cry from calling him shameful.  His campaign has brought that kind of criticism on himself with the salute thing, and the ‘lowering of the oceans and healing of the earth’ stuff.

                      I have a tremendous amount of respect for the man.  He’s not evil, he’s not shameful, he’s not a disgrace.

                      He’s just wrong, IMO, and a little full of himself.

                    • ClubTwitty says:

                      that I alone am being disrespectful by pointing out that McCain is running a shameful campaign and proposes policies tht differ little from Bush.  

                      But thanks.

                    • RedGreen says:

                      You’re hardly alone, Twitty.

                      McCain can’t define what “honor” is because he’s forgotten what it is. He used to be a hero, LB is right about that. But he’s bringing shame to the moderate Republicans who supported him in 2000 and to many of his fellow Republican senators and former aides, who claim they cannot even recognize McCain anymore.

                    • Laughing Boy says:

                      Deserved it.  He lied about atrocities that he’d said he witnessed (he didn’t), and caused undeserved disrespect back home for honorable soldiers.

                      Screw Bush and his dodging of the draft by being in the guard.  It doesn’t make Kerry’s behavior any better.

                    • RedGreen says:

                      disagreed with Rove’s candidate and asked for the treatment they gave him by actually running for re-election. I know it sounds like blaming the victim, but you have to admit Cleland really brought it on himself.

                    • Laughing Boy says:

                      I do with Kerry.

                      Also, show me the ad you think was so horrible and tell me who’s responsible.

                      I’m curious.

                    • Laughing Boy says:

                      In the words of Eric Cartman,

                      “What’s the big fuckin’ deal, bitch?”

                    • Haners says:

                      When did we disrespect Cleland?  I wasn’t even posting then.

                      Or are you trying to distract from the issue of the actions in which we have responsibility-our own?

                    • RedGreen says:

                      Bush’s desertion from the Guard to work on a Senate campaign.

                    • One Queer Dude says:

                         Much like Mitt Romney’s sons did their tour of duty last year!

                    • Go back and re-read your history.

                    • Haners says:

                      So if someone referred to Obama as “Osama” because they said that Obama’s views were as dangerous as Osama bin Landen’s, that would be ok with you as long as they felt is was based on “legitimate critiques”?

                      I’m sure you’ll find a way of side stepping the question, but I doubt you would like that.

                      Go on and continue to refer to Senator McCain as McSame or whatever dumbass thing you think makes you clever.  It’s your choice, I’m just trying to help you out here.

                    • ClubTwitty says:

                      unlike someone who wants to compare Obama with OBL.

                    • Haners says:

                      I thought you would side step the question.

                      Man, you’re predictable.

                      Go along and continue on a level of disrespect that other liberals here have found distasteful.

                      If they think it’s disrespectful…and the couple of Republicans here think it’s disrespectful…but you still think you’re right…

                      Kind of makes you think, huh?

                      Oh, wait.  Probably not.

                    • ThillyWabbit says:

                      I’m not a fan of name calling, but you really want think calling John McCain “McSame” is morally equivalent to comparing Barack Obama to the guy who murdered 3,000 Americans on 9/11?

                      Who cares about anyone’s “views.” We didn’t invade Afghanistan because of OBL’s views, we did it because he is a mass murderer and a terrorist.

                      Anyone who would cavalierly compare the Democratic nominee for President of the United States with Osama bin Laden is as anti-patriotic as those who claim 9/11 was an inside job perpetrated by the Bush administration.

                    • Haners says:

                      You missed the point.  It’s about respect.  I think it’s disrespectful to call Barack Obama Hussien, and I take my friends to task for it when they stupidly say “I’m not voting for him because his middle name is Hussien”.

                      Likewise, I find it highly disrespectful to refer to McCain as “McSame”.  To illustrate this point, I used a hypothetical situation.

                      If you think it’s fine to be disrespectful, that’s fine.

                      But don’t misrepresent what I was saying.

                    • parsingreality says:

                      “No

                      You missed the point.  It’s about respect.  I think it’s disrespectful to call Barack Obama Hussien, and I take my friends to task for it when they stupidly say “I’m not voting for him because his middle name is Hussien”.

                      Likewise, I find it highly disrespectful to refer to McCain as “McSame”.  To illustrate this point, I used a hypothetical situation.

                      If you think it’s fine to be disrespectful, that’s fine.

                      But don’t misrepresent what I was saying.”

                      I think the real issue here is that “Obama” is a name that is very difficult to alter and be humorous or ridiculing.

                      You are caught short and jealous.  

                    • Haners says:

                      After all of the comments I have made about respect over the last 2 1/2 years that I’ve posted here, you’ve nailed my real issue.

                      It’s that Obama’s name is hard to make fun of.

                      Yes, I now admit that back in 2006 when I started posting, through the congressional primaries and everything when I’ve talked about respect, really in the back of my mind, I was concerned about Obama’s name.

                      You want me to believe that I’m the one who’s changed when you bring this sort of shallow crap to the table?

                      Seriously?

                      This is getting pretty old, pretty fast.  

                      Thanks a lot Parsing.

                    • BlueCat says:

                      Get a grip. It’s been ages since anyone here said anything about  people calling Obama a Muslim.  And for the record, there is nothing inherently wrong with being a Muslim. Take a deep breath or something. Hissy fits don’t become you.

                    • Haners says:

                      You’re getting caught up in the example instead of the point.  I never said there was anything wrong with being a muslim-why don’t you take your own advice and take a deep breath?

                      The point is respect.  Is that not a good thing?  Yes or no?

  2. bobewegen says:

    that Sarah Palin can’t fix.

  3. DavidThi808 says:

    Today is the greatest holiday of the year – Talk like a Pirate day. In celebration, today we make all shills walk the plank.

  4. Gray in the mountains says:

    I have fixed Colorado Pols so that any posts by Nancy L Baldwin (without the period) will not be visible unless to new comers and a few other trolls like sjintheknow if they still exist. It took all night doing each of us individually. Post by her simply will not be seen on your monitor.

  5. redstateblues says:

    Especially off the coast of East Africa.

    http://www.bloomberg.com/apps/

  6. DavidThi808 says:

    from the AP

    Barack Obama turned to a team of advisers that shaped America’s economy in happier days to fashion fresh ideas for calming the stomach-churning financial crisis that has thundered from Wall Street to Main Street.

    Some of the most respected names in the business world were pitching in Friday, including billionaire investor Warren Buffett, former Federal Reserve Chairman Paul Volcker, former Treasury secretaries Robert Rubin, Lawrence Summers and Paul O’Neill and Laura Tyson, former head of the Council of Economic Advisers under President Clinton.

    He is pulling together the people who know this the best and using their knowledge and skills to craft a suggested response. This is how an effective leader operates.

    • Gecko says:

      I am trying my best to not be an asshole so don’t take this as a partisan attack.

      I have yet to meet more than ONE Obama supporter in person. And the only one that has told me he is for Obama is my boss who is 83 years old, in the early stages of his mind going south, and sends all his days playing golf.

      I rode out to Wisconsin a month ago with my wife and spent a week riding around bar hopping with my sister/brother-in-law. Every person back there that we met told us they were scared to death of Obama getting the nod. Most of the time we did not even bring the subject up as we were on vacation trying to relax, ride our scoots, and drink some beer.

      We were setting in one little bar next to Powers Lake in Wisconsin when a semi-distinguished couple on a Road King rode up and walked in. They looked like they should be riding in a BMW but whatever.

      They sat there for a couple minutes and then out loud the husband says “So, is this Obama country or what?”

      That got an instant arguement started with the bartender and my sister, until that is we found out he was just kidding and is himself scared of Obama getting in too.

      I was in a little joint in Florence the other day. On the wall is a sign saying “barack HUSSEIN obama”…….Not in a freindly way.

      So in all seriousness, where are all of his supposed supporters?

      I personally have seen one. And he is senile.

      • Fidel's dirt nap says:

        which includes my brother – they are all for McCain.  I was just joking about putting an Obama sticker on his bike and he said he’d kick my ass…

        I did ask him why he’d vote McCain and he said Obama would raise his taxes.  I told him he would pay less tax under Obama (he makes under 250 K as do most of us) and all I got was “really ?”.  At least the McCain campaign is apparently getting to the base with the misinformation…

      • parsingreality says:

        Seriously, you should know that your life and the people around it are not representative samplings.

        I’ve not met a McCain supporter….

        It’s as simple as that.  

      • colorado76 says:

        actual supporters and they all live in San Francisco and Luxembourg.  The rest of the millions of people who state their preference for him in the polls are all on George Soros’s payroll.

      • Gray in the mountains says:

        I had the same kind of experience that Gecko has had. I was unable to find anyone who supported Nixon. Imagine my surprise.

      • BlueCat says:

        I hardly ever meet a McCain supporter.  Guess we just tend to flock with birds of a feather.  

        • Gray in the mountains says:

          and not just this year.

          We tend to talk only with those who agree with us. Many of us are not civil and really open to discussion when faced with a differing opinion in a conversational place. We do need to find a way to discuss without cussing.

          The worst thing about this blog, and all others that I have found, is that they are either on (largely) one side or the other. They all accept well reasoned discussion from some on the other side but not very many of those will participate because (here) it is seen as a lib site. I don’t want to read the sites that are on the right because they are far too accepting of the far, far right.

          Just sayin’

      • Progressive Promoter says:

        My 83 year-old mother, a life-long Republican, is supporting Obama enthusiastically.  Married to my WWII veteran dad for 57 years until he died, she’s a big patriot and war hero fan.  She used to love Senator McCain back in the days of the “Straight Talk Express 2000” but has lost most of her respect for him as he has morphed into someone she no longer recognizes.

        She’s a fiscal conservative and while fairly conservative in her outlook, she is not at all interested in interfering in people’s personal lives. She’s pissed off that the GOP has left her and others like her behind.  And she’s been apoplectic over Bush’s conduct in Iraq and the skyrocketing U.S. deficit.

        So over nightly dinners together, she’s convincing her retirement community friends to vote for Obama/Biden, God love her.  

      • One Queer Dude says:

        Now that’s headline news!

      • Danny the Red (hair) says:

        but seriously I have an extremely wide circle and many people are in your situation: one way or the other.

        There is a book called “The Big Sort” which describes how we have been sorting ourselves into communities of interest for 30 years.  Your neighbors, coworkers, churchfellows, fellow bar goers and hobbiests, are likely to share your views.  Its seen as one of the reasons for the rise of the hard partisanship.

        BTW I still haven’t met any of the 30% of americans that approve of George Bush.  I guess my circle isn’t that wide.  

        • Laughing Boy says:

          Or are you just inferring that all black folks support Obama?

          • Danny the Red (hair) says:

            That in politics is pretty close to all.  That is not an inference it is a statistical polling fact.

            It is the most loyal demographic in all of american politics even without a black candidate.

            Its why the GOP works so hard to supress the back vote.

          • One Queer Dude says:

               McCain probably has Clarence Thomas and Alan Keyes in his camp.  

              I understand Colin Powell is waiting until after the debates to make an endorsement.  (The fact that he’s even considering supporting a Dem is significant.)  

              Condi Rice will only endorse the guy she wants to see lose since her endorsement would be toxic.

              Any word on who Joe Rogers is backing?  Doesn’t that pretty much cover the entire GOP African-American caucus?  (Oppps, sorry, your party doesn’t recognize such things as minority caucuses)

          • BlueCat says:

            When polls show 90+% of blacks are supporting Obama, lets not pretend that assuming most blacks are Obama supporters is somehow racist. You sound like Colbert’s Colbert Report persona. His “I don’t see color so you’ll have to tell me if you’re black” routine is satire, you know.  

  7. DavidThi808 says:

    from the AP

    Urgently moving on multiple fronts to stem the worst financial crisis in decades, the government moved Friday to protect money market mutual funds against losses and temporarily banned short-selling of financial company stocks. The Treasury Department has asked Congress to give it sweeping power to buy up toxic debt that has unhinged Wall Street.

    President Bush authorized Treasury to tap up to $50 billion from a Depression-era fund to insure the holdings of eligible money market mutual funds.

    The dramatic action comes as Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke are crafting a massive rescue plan to buy up dodgy assets held by troubled banks and other financial institutions at the heart of the nation’s financial crisis.

    Congressional leaders said they expected to get the plan Friday and act on it before Congress recesses for the election.

  8. DavidThi808 says:

    Avast Mateys – Lots of fun stuff today, because of the holiday I’m sure. From the New York Post

    HOCKEY mom Sarah Palin not only wore lipstick to the Republican National Convention, the vice-presidential candidate wore a shantung silk Valentino jacket worth $2,500.

    PHOTOS: A Look at Palin’s Style

    Insiders tell Page Six Palin has a secretive circle of stylists who dress her for events. For her big speech in St. Paul, where she accepted the GOP’s vice-presidential nod, this fashion-conscious team encouraged the Alaska governor to splurge on a $2,500 jacket from Saks Fifth Avenue designed by Valentino Garavani.



    But she’s springing for designer labels. One source familiar with Palin’s primping posse told us, “They do not want the American public to know that Palin is using stylists or that she is paying for expensive clothes this early on in the campaign.”

  9. DavidThi808 says:

    from BAGnews Notes

    Thanks to a BNN reader for identifying the article by Don Fotheringham (“Saving the Constitution: unbeknownst to most people, ten years ago the United States nearly had its Constitution rewritten under the guise of bringing the federal government to heel”) published in the September 19, 2005 issue of American Opinion Magazine.  American Opinion was the official publication of the John Birch Society.

    • RedGreen says:

      was sent to just about every city council member in the country (and all sorts of other local officials, state legislators) the week that photo was taken, it was probably just in a pile of material she had to sort through. Red herring.

  10. A-bob says:

    Powell didn’t want to run for President. We NEED him

  11. parsingreality says:

    But otherwise, yeah, a lot better than McCain.

    I heard that he was a POW or something.

  12. parsingreality says:

    I thought of asking this BC but then figured that others might benefit from having it here.

    If one were to buy a CD today, should said CD(s) be shorter or longer terms?  Will this crisis lead to higher or lower interest rates in the medium to one year term?  

    I know crystal balls are poor performers, but what are your thoughts?  

    My guess is that medium term interest rates will fall, but hey, what do I know?

    • RedGreen says:

      transforms into Danny the Red’s Money Line.

    • Danny the Red (hair) says:

      Long term rates have to go up, at some point inflation will be the dominant fear.

      Th Fed didn’t cut rates at the meeting this week because of it.  We are already in a liquidity trap (interest rates-inflation less than 0) which makes the monetary tools ineffective for stimulating the economy.  This is what happened in Japan in the 90’s.

      Either the government is going to address the long term structural problems of the economy and then rates will rise rapidly to try to cool off inflation as the economy reaccelerates or the government will fumble around with piecemeal solutions and we will wander through low interest rates for the next 10 years as the market clears the banking system and reignites demand for money.

      While betting this government will act decisively is a hard bet, the alternative is to dire.

      Read up on the “liquidity trap” and you’ll know what I’m talking about.  Concept that Keynes invented and Friedman agreed with–that doesn’t happen often.

      • parsingreality says:

        In hindsight I wasn’t too clear. I was wondering how to get the most interest over the next year or so in a CD.  Since you posted we went and did a 12 month for 4.15% annual.  I guess if the inflation dragon rears and all rates go up, we can just weigh out the 3 month interest penalty v. keeping it there.

        Thanks for your thoughts. Enlightening.

  13. Sir Robin says:

    Hou secure would you feel about your retirement years in todays stock market and financial markets?

    • parsingreality says:

      Dontcha love that BS?

      Imagine if you were socking away for your retirement with a target date of December, 1929?  Lots of consolation about the long term.

      It took until about 1955 for the Dow to get back to where it was before the crash.  

    • bob ewegen says:

      Social Security is deisgned to ensure you won’t starve, it does that well and NEVER should be exposed to the vicissitudes of the market. Personally, I want to live well, and I’m putting all I can into my 401k and some other investments. You bet I have them in the market, mostly the S&P 500 and other wide based funds. But I can afford to take that risk because if worse comes to worse, I still have Sopcial Security plus, in my casem, the “third leg of the stool,” a company pension.  The market is a great place, this year notwithstanding, but no substitute for the security that OASDI provides.

  14. parsingreality says:

    http://news.yahoo.com/s/ap/200

    Boy they sure learn fast, don’t they? Fucking Republicans.  “Subpoena, what subpoena?” sayeth Cheney and Palin.

    Claims that the investigative panel is “no longer legitimate” and is partisan. Yeah, like 8 pubs and 4 Dems.  

    Welcome to the Palin administration preview.  

  15. Danny the Red (hair) says:

    But the executives are big McCain supporters

    The New York Times has published a separate list looking at contributions from “directors, officers, and lobbyists for Fannie Mae and Freddie Mac” for the 2008 campaign cycle. That list – using figures from the Federal Election Commission – shows McCain receiving $169,000, while Obama received only $16,000.

    http://politicalticker.blogs.c

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