CNBC Congressional Bonus Debate: The Sherminator Kicks Some Wall Street Ass

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The debate with Mark Haynes and Erin banking apologista Burnett is focused on Capitol Hill efforts to impose special taxes on bonus payments made by firms who have received taxpayer bailout cash.

Guess who wins this contest of wit and intelligence. If you thought brunette bimbette, then you are asked to leave the site.

I have been trying to restrain myself in descriptions, but this video is terrific. You will enjoy it.

Some of the Sherminator's great lines: "I want all bailouts to stop. I want capitalism. Bailouts are not capitalism. Tarp is not capitalism. We should have AIG in receivership. It should have been in receivership for months now.  We don't have to hunt the witches, we know who they are. What do AIG executives know about running a financial services company?  They only know how to destroy one. We need some limitations on salary and bonus.  The goal is to get them off the TARP system entirely. Give back the money and run your companies.  This is about people who think they are really important but work at bailed out companies.  I'm against bailing out Wall Street period. If they want capitalism, let them have capitalism and give the money back.

Related Brad Sherman Video:

Sherman Plays 'Who's The Idiot' with Bank CEOs

Sherman Grills Bernanke

Must See Video Mike Capuano Torching Bank CEOs

See also:

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Financial Comedy

Comments

[Ain't Bullshittin']

Hey hows about some banking regulation. I have 25% of all banks on the watch list in my state ALONE...GA. How about putting SOME restraint on giving out those bank charters will ya! Did high school dropouts with a rich daddy get a bank for graduation?...GEEEZZZZ

[Ain't Bullshittin']

Here is how you run a bank or any other business. First step is to get capital and offer a useful, needed, and wanted beneficial product..next make wise decisions that lead to profitability paid out in hard CASH. Lend newly made profits of hard CASH to new wise investments or purchase of needed capital items required for growth. This is a slow but steady system that has worked for thousands of years. Our model of churn and burn flamed out in less than 10. Go too fast or make dumb decisions...FAILURE. This is NOT rocket science. Is Harvard Business teaching this? This is found in Proverbs.....little by little is how wealth is built. Unless...you are a well connected banker or financier in the USA...then it's PONZI-riffic!

[DailyBail]

Hey AB and Spidey Double

Since you 2 are the most dedicated commenters here I want to give both of you the opportunity to write a guest post for the site.

Contact me thru the email system and we can talk about it.

It's phenomenal. We've had 17,000 unique visitors since Monday and yet only about 50 comments. I will be posting some of our traffic logs soon in a post when we hit our 60 day anniversary.

Thanks again for always having a point of view.

[hardav55]

So the government caused the problem, so do we really think they can sove it?

[puzo]

it depends what you mean by caused the problem.

i personally think leverage caused the problem.

but you can always say the leverage was THE government problem since they are ones who allowed the big 5 to have their leverage exemption via the SEC.

[eye on the ball]

The only reason Mark and Erin are arguing the point of Wall Street imploding, is if it did, they would not have a job. What they dont seem to understand is if AIG did go belly up, the employees would not even get a paycheck let alone bonunses. Last, I hope this attack on bonunses will not take the focus off the fact that Goldman Sachs, and many other banks, received $105 billion in bailout funds from AIG to make them whole (and GS has no remorse).

[vividvew]

I don't really know anything about about the two hosts as I do not watch TV(I've seen more CNBC clips in the last few weeks of reading this blog than in the few years prior), but they both came off as the hacks that Jon Stewart recently made out CNBC to be full of. They went out of their way to not allow a distinction between compensation at a private entity operating under the rules of the free market, and ones that have been bailed out by the taxes payers due to gross incompetence.

[DailyBail]

NEW HAVEN, Conn. (AP) — Connecticut's attorney general says documents turned over to his office by American International Group Inc. shows the company paid out $218 million in bonuses, higher than the $165 million previously disclosed.

http://www.google.com/hostednews/ap/article/ALeqM5g4tUN7oGvfWYD1eN4daY7ZU01YCQD972F59O0

[DailyBail]

WASHINGTON (AP) - President Barack Obama's budget would produce $9.3 trillion in deficits over the next decade, more than four times the deficits of Republican George W. Bush's presidency, congressional auditors said Friday.

The new Congressional Budget Office figures offered a far more dire outlook for Obama's budget than the new administration predicted just last month - a deficit $2.3 trillion worse. It's a prospect even the president's own budget director called unsustainable.

In his White House run, Obama assailed the economic policies of his predecessor, but the eye-popping deficit numbers threaten to swamp his ambitious agenda of overhauling health care, exploring new energy sources and enacting scores of domestic programs.

The dismal deficit figures, if they prove to be accurate, inevitably raise the prospect that Obama and his Democratic allies controlling Congress would have to consider raising taxes after the recession ends or else pare back his agenda.

http://apnews.myway.com/article/20090320/D9721GMO0.html

[DailyBail]

FAIRFIELD, Conn. (AP) - Pillars of the community are now pariahs fearing for their safety in a ritzy area of Connecticut home to many executives at American International Group Inc. (AIG), hit with a backlash over bonuses it paid to top brass even as it accepted federal bailout money.

The payouts to executives appear to have helped put a face on the economic struggles the country faces, and the anger targeting AIG is palpable. Death threats have been pouring in since the brouhaha broke, the company said, and its workers are taking no chances.

"It's scary," one executive said, speaking on condition of anonymity because he feared retribution. "People are very, very nervous for their security."

The financial products division is in Wilton in Fairfield County, and many of the company's leaders live in large homes on the "Gold Coast," an area known more for golf courses and sweeping views of Long Island Sound than for the police cars that now regularly patrol the well-kept streets.

http://apnews.myway.com/article/20090320/D9720I901.html

[DailyBail]

WASHINGTON, March 20 (Reuters) - A key U.S. House of Representatives committee chairman said on Friday that employee bonus programs at Fannie Mae and Freddie Mac should be halted, while the regulator who oversees the two government-controlled housing finance companies defended the programs.

The move by Representative Barney Frank, who heads the House Financial Services Committee, was the latest salvo in a growing controversy over large bonuses paid out to executives of companies receiving billions of dollars in government bailout funds, sparked by outrage over bonuses paid to employees of insurer American International Group.

http://www.reuters.com/article/bondsNews/idUSN2049969120090320?pageNumber=1&virtualBrandChannel=0

[DailyBail]

WASHINGTON — The Treasury Department is expected to unveil early next week its long-delayed plan to buy as much as $1 trillion in troubled mortgages and related assets from financial institutions, according to people close to the talks.

The plan is likely to offer generous subsidies, in the form of low-interest loans, to coax investors to form partnerships with the government to buy toxic assets from banks.

http://www.nytimes.com/2009/03/21/business/21bank.html

[mark mchugh]

BRAD SHERMAN FOR PRESIDENT!!!!

Wow, I love this guy! "What do AIG executives know about running a financial system?"

Witch-huntery? These fuckers vaporized $11Trillion dollars last year.

It's so good to see a congressman who obviously can think and speak so clearly.

Thanks for the post DB!

[natoK]

"Do you believe EVERY SINGLE PERSON on Wall Street who made over $250,000 is a BAD person?"

WOW, WOW, WOW. Where can I begin to comment on the second most idiotic question asked in human history? I think the question says it all. WOW.

Nice to see a Democrat with some intelligence expressing himself. I think the Repub's hollowed out the country but the Dem's seem intent on doing the same with their unique flair; there's is more of a bumbling, idiotic way, than a greedy immoral method.

If I recall Brad Sherman was one of the few who went public on the secret evening meeting where they were told by all if the Paulson Immuniuity Bill didn't pass the world would explode (aka Goldman Sachs would really be in deep doodoo.). He was asked about this in a subsequent interview and he refused to comment. Hmmmm.

I just hope the people who caused this mess (R) and proceeded to act like hyper-socialists do not stymie Democrat attenmpts to solve this 'problem'. But I fear they would be willing to destroy the US if it meant more power for them in the end.

I am a Canadian FWIW, but I know whatever happens in the US trickles here.

[natoK]

To add, I love how mid level managers at AIG are left to twist in the wind and fear for their lives by being given bonuses. That 165 million is what caused the meltdown. I hope those criminals go to jail!

I doubt all the CEO's like Mozillo, Thain and Fuld had ANYTHING to do with where the US finds itself. They lost there jobs anyway, so they paid the ultimate price! HA HA! Ok, so they did take HUNDREDS of millions too, but that is a minor detail.

I really think y'all should set up a guillotine or vats of tar and feathers and have the CEO's and leadership of the ibanks that truly caused this mess to experience some medieval punishment. That all those a-holes got away scott free and with 100's of millions only to leave others in the wake to suffer for their transgressions in unconscionable.

PS add BArney Frank and Pelosi too. They are just idiots.

[DailyBail]

An important read:

Tim Geithner's banking fix is getting justifiably slammed by Paul Krugman, Calculated Risk, Yves Smith, et al. Why justifiably? Because the only way it will work is if hedge funds and banks get another huge gift at taxpayer expense.

http://www.businessinsider.com/henry-blodget-krugman-fumes-about-geithners-latest-giveaway-2009-3

[DailyBail]

Obama Wants Bonus Tax Bill "Softened"

http://www.businessinsider.com/obama-wants-bonus-tax-bill-softened-2009-3

[DailyBail]

David Shuster calls out Michelle Bachmann for her double talk on earmarks. After claiming that she requested zero earmarks for her state Bachmann now admits she requested millions of dollars in earmarks, but now says she took them but it's not a big deal:

http://videocafe.crooksandliars.com/heather/david-shusters-hypocrisy-watch-michelle-bachmann

[DailyBail]

And thanks to Susie Madrak at Crooks and Liars for linking to us.

http://crooksandliars.com/susie-madrak/sherminator-kicks-wall-street-butt

[SoCalWoodworker]

You have a really informative site here...It's going into my favs for daily viewing.
Rep. Sherman seamed to have left out a very important point..The only exec's that will be taxed at 90% are those who are exec's at any bank or corp. that receives tarp funds. If you are a exec at a corp or bank that does not receive tarp funds you will get whatever salary and bonus's are due to you. I mean who could argue against that...wait, oh ya....
peace

[DailyBail]

@So Cal

Thanks for the kind words.

You make a great point.

[DailyBail]

@ Spidey Double

I finally sent you a response via email. Sorry for the delay. It's all explained in the message.

[Torches and Pitchforks]

We've lent $170 billion to AIG and now he wants to put them in receivorship? Nice.

The AIG talent is already leaving by the busload after this week's Congressional grandstanding, so now let's ensure we forfeit the entire $170B by putting AIG in recievorship and watching the value of the good businesses dwindle to nothing under government stewardship. All because the American public is pissed about bonuses that equal about half of what the Yankees paid for A-rod, or about 50 cents per capita.

($165 million bonus divided by 330 million population = $0.50)

Insanity.

[SoCalWoodworker]

T & P ...your argument for rewarding incompitance(spelling?) and poss. criminal behavior is just...well, SAD.
As a blue collar construction worker if I cause the co. I work for to loose money I GET FIRED!! I DON'T GET A BONUS!!!!
"Leaving by the busload" i say... SO WHAT let them join my fellow tradesman in the unemployment line.
PEACE

[D. Combs]

Save some tar and feathers for all the people responsible. Congress, every President since who knows when, the Supremes, etc. The La Brea tar pit probably doesn't contain enough to cover it all. I won't even try to imagine how many chickens it would take. So far Obama is going to need it too. The bonus money doesn't matter, it's the trillions that have and will continue to be wasted bailing out the banks and financial firms responsible.

[DailyBail]

@ Torches and Pitchforks

Actually Sherman said they should have been in receivership from the beginning. He still wants to because we have about $100 billion more for AIG that will be needed.

Thanks for your post.

[DailyBail]

In today’s spin doctored media maelstrom can China be more truthful than the United States? The following will uncover some reasons why CBS, Bernanke, the Fed, and other members of the power Elite are lying to you. We will then explore the mechanics of how a total Fed collapse can happen. And we’ll end with a review of how a stronger police state is being formed.

http://www.gamingthemarket.com/2009/03/end-of-the-beginning.html

[DailyBail]

Was the Bailout Itself a Scam?

http://www.opednews.com/articles/Was-the-Bailout-Itself-a-S-by-Paul-Craig-Roberts-090319-674.html

[DailyBail]

Veterans should see this.

By Rick Maze - Staff writer
Posted : Thursday Mar 19, 2009 17:37:56 EDT

The Obama administration waved a white flag of surrender Wednesday, dropping a budget proposal that would have billed private insurance companies for treatment of service-connected medical problems at Veterans Affairs Department hospitals and clinics.

“It was total capitulation,” one participant said at a meeting Wednesday with White House Chief of Staff Rahm Emanuel in which 11 veterans groups vowed they would fight to the end to kill the proposal.

AmVets Executive Director Jim King said he was glad the White House promised to kill the idea, which was distracting from the good news of the Obama administration’s proposed $4.9 billion increase in the VA budget, and which would have hurt disabled veterans, their families and maybe even employees at the same companies.

Billing private insurance to pay for veterans’ health care would make disabled veterans less desirable employees for companies worried about holding down health care costs, and could have led to veterans and their families paying higher premiums — even raising premiums for everyone working for the same company, King said.


http://www.armytimes.com/news/2009/03/military_vetsinsurance_reversal_031809w/

[DED]

Great vid. Sherman really skewers them.

[spideydouble]

"What do AIG executives know about running a financial system [services company]? They only know how to destroy one."

Classic. This has been my argument all along. These financial geniuses should be lucky enough to be in the unemployment lines. If we had justice, many of them would already be in prison. I wish Brad Sherman was my representative. Great post. Yet again CNBC got owned!

@DailyBail

I would be happy to create a guest post for the site. I will email you when I have something good. I want it to be worthwhile for your readers. Congratulations on the unique visitor traffic. Keep up the great work.

[spideydouble]

@Torches and Pitchforks

"The AIG talent is already leaving by the busload after this week's Congressional grandstanding, so now let's ensure we forfeit the entire $170B by putting AIG in recievorship and watching the value of the good businesses dwindle to nothing under government stewardship."

To the AIG "talent" already leaving by the busload: good riddance and we'll see you on trial day as your jurors you leech-flesh-eating bacteria.

As to the $170B+, you speak as though any of that (or any other monies) will actually be paid back. GS and Co. already completed the heist and have long left the scene of the crime. It will never be recovered. Get over it! We must prevent any additional heists over our dead bodies. Send out a posse and round up the thieves for a firing squad. AIG has been paying out CDS AT PAR EVEN WHEN NO DEFAULTS HAVE OCCURRED! It is no different than if Bernie Madoff had created an unregulated offshore auto insurance agency and paid out the policies to all of his friends for property damage, medical, and rental even if no accidents had actually occurred.

"Two of your snot nosed jockeys did a flyby on my tower at over four hundred knots! I want somebodies butt! I want it now! I've had it God Damnit! That's Twice! I want some butts!"

Third times an AIG bailouts a charm. [sarcasm]

[DailyBail]

@ spidey

you will be especially interested in this article by Simon Johnson and JAmes Kwak.

They make the same point as you. Check it out.

http://www.nytimes.com/2009/03/20/opinion/20johnson.html?_r=1&ref=patrick.net

[Suziclue]

It looks like the more the government tries to help, the more delinquencies we are seeing. I just don't see any hope for most of my neighbors as three of them are entering the delinquency stages, they all lost their jobs 4 months ago, and their income is melting away. Soon they will add to the statitics above. It's suprising to see a bllip of uptick during the 7/7 months, unlike the prices of home going straight down. And according to Home Price Trends the <a href="http://www.homepricetrend.com">Home Trends</a> will continue to fall for atleast another two to three years. Horrible situation.

[Stop the bailouts]

Who are those two CNBC hacks?

Is the guy in the pink tie drunk?

Why do they keep interrupting the Congressman? His comments were all succinct, yet they had to show their aggression by cutting him off before he finished each sentence.

Why are they so rude?

Does anyone actually watch CNBC?

Great clip - Sherman is awesome.

[obman]

THANK YOU for the youtube version <--------- we really appreciate it!

[DailyBail]

@obman

Just curious what is the exact problem with CNBC videos for certain computers?

[Clapman333]

I like this guy. As a free market conservative I suspect the Sherminator is a little more pro-government than I'd like, but I'll happily take a Congressman who is a patriotic American, upholds the Constitution and Bill of Rights, does not sell out to special interests, and work out the economic fundamentals later.

[James H]

Preaching to the choir, Clapman333, preaching to the choir. I don't think I've ever voted for a Democrat in my life, but I sure would if I lived in the 27th district of California.

[Harry E. Roman]

Since when did our Washington Representatives have the right to vote their consious. We elect them to vote the way we the voters tell them to.This Country is going to the Dogs and they are all in Washington."GOD BLESS THE AMERICA THAT ONCE WAS"

[DailyBail]

but I sure would if I lived in the 27th district of California.

@James

Alan Grayson, Mike Capuano and the Sherminator are 3 outstanding Democrats when it comes to fighting for taxpayers. I would be happy to call any of them my Representative.

[john s]

anyone who thinks it's a good idea for the govenrment to limit private company compensation is a complete moron and the fallout would absolutely ruin the way of life for all Americans. The class envy stuff is disgusting...it serves absolutely no purpose except to get more idiot people to vote for the idiots who villify people that make money.

Now, the bailout garbage is a separate issue. If Barney Frank and Chris Dodd would have let those people that complained of pending fiscal doom in Fannie and Freddie have their way, we wouldn't be in this mess. If you want to take action against someone, then forget exec salaries (they were just following the new rules put forth by the CRA under Carter and strengthened under Clinton) and put Dodd and Frank in jail!

[As23Megan]

Different fields of life take a lot of time and efforts, thus why should you expend free time for literature term paper accomplishing? It will be better to use some experienced <a href="http://quality-papers.com">paper writing service</a> to purchase the term paper titles at, I think so.

[loans]

Every body knows that today's life seems to be expensive, but different people require cash for different stuff and not every person earns enough money. Hence to get some business loans or collateral loan will be a right way out.

[S. Gompers]

Anybody notice how these loan adds and stuff sound like Ken?

[S. Gompers]

Probably drum up more business if they start out with "COWARDS WITH NO BALLS!!!", LOL.