Mike Morgan is Not Pleased with Obama and Biden So Far

Mike is a little shrill.

Mike Morgan: Behind Enemy Lines:

Where Did The Bailout Money Go? - The first installment of $350B went directly to the economic royalists. We gave $250B to banks in exchange for stock worth less than $200B. And we gave $40B to AIG for what will become a total zero. And there is $60B is some kind of limbo fund. By the way, even the media keeps talking about the lack of transparency for the money we have spent . . . that is hogwash. If Obama wanted to “do the right thing” he could re-write the terms of the first installment of TARP money and demand the recipients either return the money or give us full transparency. In fact, Obama can re-write ALL of the terms of the first installment. He can demand more stock. He can limit bonuses, compensation, perks and anything else he wants.

Why? How? Well there is one thing King Henry did right. The terms of the TARP provide that the next administration can re-write anything and everything.

So what is Obama waiting for?

Why is Obama ranting about the first installment, but not doing anything?

And why doesn’t the media bring this to light?

Easy answer. The economic royalists would not like that. The media is also owned and run by the economic royalists. So once again, here is a fact that support my position that Obama is either a hypocrite or a pathological liar. There is a third option.

“If stupidity got us into this mess, then why can’t it get us out?” - Will Rogers

In all due respect to Will, I want to put a spin on this one . . .

“If stupid, lying, cheating bankers got us into this mess then why can’t stupid, lying cheating bankers get us out of this mess?” - Mike Morgan

Bailout II - I can’t simply leave it at that, because we have Tim “the tax cheat” Geithner getting ready for Bailout II, the sequel. Before he puts his tax cheating feet in his mouth, maybe he should unravel Bailout I. He could start with the missing $78B representing the disparity the Congressional Oversight Panel came up with between what we got for what we gave. Hey, that $78B represents more than 20% of what he’s going to spend this week. Why not clean up Bailout I before screwing up Bailout II?

Where Is the Bailout and StimUseless Money Coming From? - I’m glad you asked that question. It’s a complicated answer. You see the Tooth Fairy (hereinafter TF) hooked up with the Easter Bunny (hereinafter EB). TF and EB came up with a plan to monetize the faith millions of kids have in them. To do this they created nothing out of thin air and sold it to Goldman Sachs. Goldman Sachs then went to the pension fund managers, that wanted to make new, creative, innovative and hard to understand deals, so they could continue to suck up their bonuses. Voila, so now you know the secret.

Hypocrites or Pathological Liars - Obama has referred to Wall Street bonuses as “shameful” and “the height of irresponsibility.” Biden joins the fray with “I’d like to throw these guys in the brig..” Go ahead. But start with Chris Dodd and Tim Geithner . . . and half the US Senate and Congress.

If these two hypocrites wanted to really do something, they can. As I noted above, they can re-write the rules governing the money they handed out. That would be a good start. If they don’t, they have nothing to complain about when more bonuses are handed out. But if either one of these pathological liars wants to demonstrate that I am wrong . . . do something about it, or shut your lying trap.

[. . .]

Anyway, back to the Treasury Avalanche. Plugging the budget deficit is not going to be easy. This fact has not gone unnoticed. How could it? The Treasury is bringing back the seven-year note after a 16 year hiatus. Not only that, but they are going to sell them every month. Not only that, but they are going to start selling the 30-year bond every month. And not only that, but China and Japan are not going to be buying like it’s 1999, because we’re not buying their chatchkas anymore.

So what? Well . . . I’m no economist, but this can’t be good. If we can’t borrow the money we are spending, are we really spending it? Yes, but that means we just have to print it. And isn’t that what happened in the Weimar Republic and what is going on in Zimbabwe?

Rates will go up to attract more money into Treasuries. That sucks more money out of the economy and private capital and liquidity. Why would people buy stocks or invest in unproven businesses, when they can buy US Government guaranteed debt? So until we accept the consequences of what we’ve done, there is no hope that continuing to borrow will get us out of this mess. As you can see, the folks we borrow from are not happy with us, and we’ve kinda, sorta destroyed our credit rating as a country by acting like an Orange County Housewife with a stash of credit cards in Saks.

[. . .]

Waiting for the Messiah - That is not my headline. It was a headline in The Economist last week. I wasn’t going to use it, but it is very fitting. 92% of French citizens polled think Obama will have a positive impact on international events. European governments are operating in an environment of fear. They don’t want to do anything remotely possible that would upset the Messiah, for fear of enraging their own citizens who are waiting for Obama’s every word. In fact, the lowest rating Obama received was 77% in Britain. I want to point out one thing. Can you imagine the displeasure these people will feel when Obama either lets the down outwardly or lets the world down . . . as he continues to push money to the economic royalists?