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Wednesday, September 17, 2008

The Morning News

posted by on September 17 at 7:00 AM

As the market turns: The U.S. loans itself into control of an 80-percent stake in AIG, in order to keep it from collapsing.

Introducing the Resolution Trust Plan: People are floating it, and Thomas Friedman likes it.

Against market regulation before he was for it: John McCain.

Obama’s challenge: 48 days to make it all about the economy.

Sebelius says Obama’s race may be a factor in the election: Ya think?

Lady Lynn Forrester de Rothschild: Still mad about Clinton, and therefore endorsing the Republican.

Not the sleaziest ever: A helpful corrective re: McCain.

Washington jobless rate: At 6 percent, the highest in four years.

And a campaign ad flashback that started floating around the web shortly after Obama began hitting back at McCain’s lies:

RSS icon Comments

1

Race a factor.... I hope you realize that you need to take 7 to 10 points off of any poll with Obama to account for racism in this country.

God, we are so totally fucked if McCain wins...soooooooo fucked.

Posted by Cato the Younger Younger | September 17, 2008 7:20 AM
2

If Dukakis had won ... we'd never have had GWB. I blame it all on Dukakis.

Posted by superyeadon | September 17, 2008 7:20 AM
3

Nice teeth.

Posted by drudgery | September 17, 2008 7:23 AM
4

Recall that McCain also was for privatization of social security. Just think where we'd all be now.

Speaking of now, now that we own the largest insurer in the world, can we please get universal health care?

Posted by B.D. | September 17, 2008 7:36 AM
5

Well one thing's for sure: We now have the developed world's worst, unsustainable economic model. Socialized bailouts for the wealthy who refuse to pay taxes on their plundered millions, and crushing public debt and taxes with none of the benefits.

Posted by Original Andrew | September 17, 2008 7:43 AM
6

Car bomb at US Embassy in Yemen kills 16.

Posted by PopTart | September 17, 2008 7:43 AM
7

I am so excited that we get to go into another Great Depression!! I think I am going to stand in front of a Washington Mutual branch today and yell "insolvent! insolvent!!"

Posted by Andrew | September 17, 2008 7:45 AM
8

Let me here one candidate come out and scream:

I'm Mad As Hell About the AIG Bailout, And I'm Not Gonna Take It Any More

I might vote for that person...even a Democrat (well, no not really).

Posted by John Bailo | September 17, 2008 7:55 AM
9

Ooh! Ooh! Bailo, I have your candidate:

Bob Barr on the AIG bailout.

Posted by annie | September 17, 2008 8:07 AM
10

I wish EVERY headline regarding AIG would substitute "the taxpayers" for the "U.S. Gov't". We, the taxpayers, now own 80% of AIG & we're gonna pay for it no matter what.

Posted by Angry Leftist | September 17, 2008 8:21 AM
11


A Son of Immigrants.
Son of Immigrants.
of Immigrants.
Son...
Son...
Son of Immigrants.

Sorry, that was me doing a late 80's style "scratch" mix of Dukakis.

Posted by John Bailo | September 17, 2008 8:26 AM
12

Actually that bridge loan to AIG is at 11.5%. Depending on how long it takes AIG to sell some of their assets (were are talking about a $1 trillion company), we the taxpayers, will likely make a tidy little profit...just like what is being done with the Bear Sterns backstop. Don't start whining yet, boys and girls.

Posted by Cranky Old Man | September 17, 2008 9:07 AM
13

@10

This is a leftist dream come true! The government owning companies! Why so mad?

Posted by Bellevue Ave | September 17, 2008 9:13 AM
14

Slog should post the two TV ads on the economic meltdown. One is tough and short and blames greed and corruption. The candidate says wall street needs reform and it will be tough, but he's "faced tougher guys." The other ad is two long minutes, gives a hodepodge of ideas, blames nit picking campaigns, and "outworn ideas of the left and the right"

Comment: what the fuck? lack of regulation of capitalism is not any failure of left wing ideas. What a confusing adn mistaken view.

Then the big finale:

he vows to use a "new spirit of unity and shared responsibility" to solve our economic woes!

I can just imagine those Wall Mart Moms and Archie Bunkers out in Lorraine Ohio going home and telling their spouses, "Honey, I like that Obama guy! He's going to bring a new spirit of unity and shared responsibility! You see, this economic meltdown on Wall Street is PARTIALLY OUR FAULT. What an honest and refreshing non partisan non ideological approach."

We are melting down economically and you can choose between Mr. Tough Guy who blames greed and corruption or Mr. Kumbaya who blames outworn ideas of the left and right.

Yes, no. 1, we are fucked, but take consolation a white guy who ran a campaign like Mr. Kumbaya's would lose, too.

Unity y'all,

Posted by PC | September 17, 2008 9:15 AM
15


Ha ha, some jackhole on teevee just said something like "we've nationalized the mortgage industry, we've nationalized the investment business, and now we've nationalized the insurance industry.

We're all Communists now!"

Ha ha, heckuva job, "free-market Republicans!" If Adam Smith were alive today his face would melt ala Raiders of the Lost Ark.

Posted by Original Andrew | September 17, 2008 9:22 AM
16

"Lady Lynn Forrester de Rothschild switches support to McCain" kinda says it all. Yep, McCain has that Baroness vote locked up.

"Nine out of ten East-coast old money aristocrats prefer the candidate who'll be cutting their taxes even more. He may even take their tax burden down into negative numbers, that's how much he believes in stimulating the economy."

On a completely unrelated note, hardworking American voters will be happy to note that no rich people will lose their assets as a result of their own shady business practices or the uncertainties of an unregulated market which they lobbied for. You're bailing them out, taxpayer!

With the tide of foreclosures and layoffs, it's comforting to know that nobody will be losing their summer home in the Hamptons, their trust funds or their luxurious, idle lifestyle.

Posted by flamingbanjo | September 17, 2008 9:41 AM
17

PC - I'm confused. From what philosophical ground do you operate? Deregulation has caused yet another calamitous collapse of American institutions. And like the S&L crisis before it, those responsible are walking away and leaving the debts to be absorbed by the tax-payer.

And yet people like yourself insist, despite all evidence, that this is a failure of liberal ideology.

The only conclusion I can reach is that these "conservatives", the supposed party of patriots, intend to bankrupt the Federal government and leave the country to be run by Corporation, free from all regulation

That's really the only conclusion I can come up with. "Greed" is the very engine of capitalism, and a basic facet of human nature. "Corruption" is simply greed characterized; the only way to remove "Corruption" would be either perfectly enforce regulation, or remove regulation all together.

Blaming "Greed" and "Corruption" is the intellectual equivalent of blaming gravity for the Challenger disaster. It is a non-answer, and McCain's suggestion that we need to "study" what went wrong, as Graham stands behind mouthing "fuck you whiners", is insulting.

Oh, and those people "going home" to talk shit about liberals? What home would that be? You think that people will be overlooking a record foreclosure rate? Or are you counting on keeping the newly homeless from voting?

Posted by John Galt | September 17, 2008 9:55 AM
18

and where does greed and corruption not exist?

Posted by Bellevue Ave | September 17, 2008 10:03 AM
19

@18 - Nowhere, you dumb fuck. That's why we need regulation.

Posted by fucking conservatives | September 17, 2008 10:38 AM
20

I think everyone who is outraged that the taxpayers have bailed out AIG should consider how outraged they would be if we just let AIG go ahead and fail.

Word of warning: thinking ahead to what kind of disastrous effect this would have on our economy (i.e. your daily life) does require a little bit of thought process and a very cursory knowledge of economics. But just sit and concentrate in a quiet room and you should be able work out the following: a company with $1.0 trillion in assets (not an exageration) and $972 billion in liabilities suddenly disappearing would blow the fucking lid off everything that we hold dear.

So quit the kneejerk "but it's my money!" reactionism and actually consider the reality of the situation.

Yes, Bailo, you nitwit, I'm talking to you.

Posted by manbaby | September 17, 2008 11:09 AM
21

"$972 billion in liabilities"

That seems a "tad" high, however I agree with the $1 trillion figure. Did you pull the $972 Billion liability figure off their last 10-Q?

Posted by Cranky Old Man | September 17, 2008 11:24 AM
22

Here is some classic SusanUnPC distributing Republican talking points in order to ratfuck the Democrats. It's like when Karl Rove gives his "friendly advice."

The Democrats don't want you, "PC". Nobody does.

Posted by elenchos | September 17, 2008 11:28 AM
23

@21

Yep, that's from the latest 10-Q.(http://www.sec.gov/Archives/edgar/data/5272/000095012308008949/y59464e10vq.htm)

Posted by manbaby | September 17, 2008 12:11 PM
24

I just took a quick look at the 10-Q, and I now have some comprehension why none of the investment banks were very eager to lend AIG money. The problem going forward is that AIG will have to sell off performing assets (insurance, aircraft leasing, etc., etc.)to repay the bridge loan. This in turn will affect their downstream profitability and ability to pay other debt. I don't necessarily see this as a short term "liquidity" issue. It appears systemic.

Posted by Cranky Old Man | September 17, 2008 12:32 PM

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