Video: Roubini Says Stock Market Has Risen Too Much Too Soon

"Oct. 4 (Bloomberg) -- Nouriel Roubini, the New York University professor who accurately predicted the financial crisis, talks with Bloomberg's Francine Lacqua about the prospects for stock and commodity markets. Roubini, speaking yesterday in Istanbul, also discusses the outlook for the U.S. and global economies, financial regulation, and Ireland's decision to endorse the European Unions new governing treaty. (Source: Bloomberg) "

Watch

Click to read more ...

Zingales On Breaking The Mega-Banks: "Yes We Can, Mr. Geithner"

Bloomberg's Matt Miller and Carol Massar sat down with University of Chicago Entrepreneurship and Finance Professor Dr. Luigi Zingales on Monday to discuss the economy and the state of the banking system.  Dr. Zingales offers his views on financial regulatory reform, banks becoming "too bigger to fail", Congressional ignorance and capture, and the ramifications of breaking up our largest banking institutions.

• "I think that this is a very complicated issue, and no matter how hard Congress tries they don’t understand the details.  And the devil is in the details."

• "Many of the regulators are captured by the financial system. When they end their work they go and work for the very same banks they are regulating."

Zingales compares the proponents of the first stimulus to "physicians from the Middle-Ages practicing blood-letting" (take that Krugman!), and says that those who are calling for a second stimulus (actually it would be the 4th if you count Bush) are again mimicking the ancient physicians who would prescribe "more blood-letting" when the first round of useless treatment invariably failed.

Watch

Bloomberg is not allowing this clip to be embedded, so the above link goes directly to Youtube.

Also, please don't miss Zingales' outstanding essay Yes We Can, Mr. Geithner from this Spring.

Click to read more ...

Did Paulson & Bernanke Lie About Why Lehman Was Allowed To Fail

Before we even get started down this line of questioning, letting Lehman Brothers go into bankruptcy was one of the few intelligent decisions made last Fall.  Markets needed reminding that capitalism still existed and that bad balance-sheet decisions would not be rewarded.  

Tangentially, has anyone stopped to consider that Lehman said it was fine and just needed $30 billion to get through the crisis, yet when all was revealed in bankruptcy court, there was a $613 billion-dollar hole in its balance sheet? This should provide some indication of the level of insolvency that permeates our nation's banking system.  Most banks are massively insolvent if forced to value assets honestly. Nothing has changed except the accounting rules.

Click to read more ...

Guest Post From MSNBC's Dylan Ratigan: Corporate Communists Control (Own) The Economic & Political Structure Of America

Submitted to The Daily Bail by Dylan Ratigan

*****

The Cost Of Corporate Communism

Lately I have been using the phrase "Corporate Communism" on my television show. I think it is an especially fitting term when discussing the current landscape in both our banking and health care systems.

As Americans, I believe we reject communism because it historically has allowed a tiny group of people to consolidate complete control over national resources (including people), in the process stifling competition, freedom and choice. It leaves its citizens stagnating under the perpetual broken systems with no natural motivation to innovate, improve services or reduce costs.

Lack of choice, lazy, unresponsive customer service, a culture of exploitation and a small powerbase formed by cronyism and nepotism are the hallmarks of a communist system that steals from its citizenry and a major reason why America spent half a century fighting a Cold War with the U.S.S.R.

Click to read more ...

Video: Dylan Ratigan On Corporate Communism: "$24 Trillion Of National Capital Is Being Sucked Into A Broken Banking System At Our Expense"

Another home run from Ratigan.  We will complete the post later, but the clip is too important to wait until we had the time to do a write-up.  So just enjoy.  Runs 5 minutes.  First 30 seconds are health care, then it's banking and the bail outs.

• "The beneficiaries of an ongoing $24 trillion taxpayer-funded bailout...$24 trillion dollars."

• "That is national capital that is being sucked into a broken banking system at the expense of the rest of our country.  They continue to use "Too Big To Fail" as blackmail to the taxpayer in order to get us to provide capital to them."

• "It is a system that takes resources from the citizenry and redistributes it to a tiny elite."

• "A handful of weak, un-competitive, outdated companies and industries are purchasing control of the American political system in order to stay in business using their cronyism.

• "It is coming at the direct expense of the rest of us in this nation.  And it's a total betrayal of everything that represents America."

Watch

Click to read more ...

Lunatic Fringe: Bernanke & The Dissolution Of The American Ideal

Guest Post Submitted By Bob Rinear, Robert Foster, et al from Invest Yourself

(Editor's Note: This is a serious rant. Buckle up.)

Click to read more ...

Bloomberg Accuses The Fed Of Fear-Mongering & Hyperbolic Speculation In Fighting Transparency (Update On FOIA Appeal)

Bernanke, Donald Kohn, general counsel Scott Alvarez and ancillary legal minions at the Federal Reserve continue their fight to prevent you from finding out exactly what they're doing with that $2 trillion balance sheet and trillions more in shady and secret commitments.  It's safe to assume that the only thing they fear more than Ron Paul and Alan Grayson is collateral shock and an immediate destruction of the dollar.  They have a timetable for slow devaluation, lest the people actually notice and start complaining.

Bloomberg along with Fox News, (separate suit) are the only media organizations fighting for you and your kids.  Judge Preska ruled courageously a few weeks ago in favor of sunshine and the Fed promptly appealed, with the same arguments that lost the case to begin with.  No matter, the legal wheel spins and Bloomberg has responded to the Fed's appeal with the following:

Click to read more ...

Video: Michael Moore Admits Democrats Are Owned By Wall Street

To be fair he says the same for Republicans which though undoubtedly true, is not really news in the same way as Moore attacking his own party.  He is not alone in this sentiment; Bill Moyers made the exact same point to Bill Maher recently.  We and our commenters have also been grinding this particular axe since the day we launched the site. 

The banking oligarchy runs the show in Washington regardless of which side has the majority.  Geithner is but Paulson with hair and more active hands.  Even conservative darling Sarah Palin is a flaming bailout socialist.  Sadly, Wall Street and its powerful banking lobby own the majority of politicians from both sides.  It's merely a coin-flip for last place among the disgraced.  Just how the bankers planned it 120 years ago.  A pox on everyone but a resilient few.  An outstanding 2-minute clip.

Watch

Click to read more ...

Video: Leno Skewers Goldman & Chris Dodd (MSM Awareness Alert)

Mid-day joke about the record bonuses at Goldman Sachs and Senator Chris Dodd.  Either someone has cracked the heads of Jay's Leno's writers, or the news is getting out.  Side note, I met 2 college-educated women in their mid 20s last weekend and neither one had even heard of Bernanke, Paulson, Geithner, Goldman, TARP, or the $700 billion Wall Street bailout.  None of it rang a bell.  Not a clue.  Zip.  Nada.  Zilch.  True.

Watch 

Click to read more ...

Janet Tavakoli: China's Massive (And Unknown) Derivatives Default

October 6, 2009

Submitted to The Daily Bail by Janet Tavakoli

China Defaults, Currency Basket Threatens Dollar

Robert Fisk exposed revived discussions by the Gulf States, China, France, Japan, Brazil, and Russia to replace the dollar as the benchmark oil trading currency with a basket of currencies including gold within 10 years.  This proposal is not new and discussions have been ongoing for decades.  But other extraordinary moves in the capital markets suggest we should take this threat to the dollar’s position very seriously.  For example, China has $2.3 trillion in currency reserves (about 70% in dollars), and China knows how to get its way.

In November 2008, Chinese banks said they would no longer play by our rules.  Top tier banks (Bank of China and Industrial and Commercial Bank of China) reneged on derivatives contracts.  They failed to come up with billions in collateral on dollar/yen FX trades, which were out of the money after the yen’s October appreciation.  This should have been headline news in every financial newspaper, but it wasn’t.

Click to read more ...

Guest Post From Analyst Chris Whalen: Bank of America's Equity Is Not Worth The Paper Upon Which It Is Printed (Saved By Zero)

Click to read more ...

Video: TARP On Steroids: Brad Sherman Questions Tim Geithner

Brad Sherman on Too Big to Fail:

• "They've created this new religion that involves genuflecting in the direction of Wall St. and believing this idea that, Oh my God, if those institutions don't get what they want, we're all gonna be fighting for rat meat in the streets."

It's time for a return visit from the Sherminator, destroyer of Mark Haynes and Erin Burnett, righter of bailout wrongs, incredibly massive thorn in Geithner's side.  The clip is from September 23 when Timmmaaay sat in front of the House Financial Services Committee to talk financial regulatory reform.  If you know Sherman, you know that he always hates how Geithner avoids his questions and wastes his allotted 5 minutes.  This is but one more hilarious exchange between these two as the Treasury head evades and obfuscates while Sherman's blood boils. 

Don't let my introduction fool you however, this is no laughing matter and you're gonna be pretty pissed off when you hear what's up for discussion.  And for those of you who care about such things, Sherman is officially a Democrat from California, though he's 100% anti-bailout, street-fighter, with a little Dalai Lama built-in to impress the ladies back in the disctrict.

Watch

Click to read more ...

Video: Donald Trump: "The Banks Will Not Lend To Anyone"

I can't believe I am putting Donald Trump on the front page.  He's a crook, a liar, a huckster and a media creation.  But he does provide some anecdotal evidence of bank lending (or lack thereof), especially in commercial real estate.  No matter how you slice this one, it comes up resoundingly negative.  Trump says there is no money out there for anyone or anything, period.  Still the megastar wannabe, commercial real-estate punk, admits to having supported TARP and the criminal Wall Street give-away of $700 billion from you to them.  It's all in the short clip.

Watch

Click to read more ...

The Next Generation Speaks: It's NOT My Debt!!! (Video Collage)

(Editor's note: In the spirit of the story published below, we are bringing back some kids who aren't too happy about the debt that is being created without their permission.)

The next generation is learning what we've done with the national debt and is not pleased.  Inside we have a video menagerie of sorts from about 30 kids telling Washington that it's not their debt.  Generational war is coming, people.  Count on it. 

My favorite one...Sam says it's not his friggin' debt.   A future DailyBailer for sure. 

Watch

Click to read more ...