I wanted to provide a few "snippets" for those who don't want to read the entire piece. Magnetar is the hedge fund in question: "Our studies indicate that Magnetar alone accounted for between 35% and 60% of demand for subprime mortgages in the year 2006:"
[T]he sponsors of this toxic trade did bother to make sure they had a powerful friend. The head of the firm in question gave substantial amounts of money by political contribution standards to Rahm Emanuel’s PACs, and only his PACs, over the period when these transactions were in play...
And the hedge fund’s cagey bet on Rahm? Litowitz and his wife had never before made significant political donations. In 2005, they started giving to Rahm and his PACs, and only PACs connected to Rahm, just before the Magnetar CDO program began, and continued through the first quarter of 2008, when the trade would have started to pay out handsomely. The Litowitzs gave a total of $8,000 to Emanuel and $10,000 to his Our Common Values PAC in May 2005. In 2006 and 2007, they contributed $51,700 to the Democratic Congressional Campaign Committee, while Emanuel was chairman. We have been advised by individuals involved in political fundraising that the amounts given would be considered significant, and the way the payments were distributed across the PACs is sophisticated. Put it another way: this money was not given impersonally...So Rahm - and Obama - have been huge beneficiaries of the very firms who helped propagate the subprime/financial crisis: "As the Magnetar-Rahm connection highlights, Obama raised more money from financial services players than any previous presidential candidate, so it can hardly be a surprise that he and his minions are happy to give the industry a free pass."
But this troubling connection should be no surprise. Rahm has long been a favorite of the hedge funds, having raised more money from them than any Senator not running for President. Not surprisingly, he has been a staunch supporter of the financial services industry, and is widely credited with playing a key role in securing passage of the TARP after its initial defeat.
What this article points to is that Rahm Emanuel should immediately be under the investigation of a Special Prosecutor appointed by someone other than the Attorney General (that same person who drafted the Marc Rich pardon letter that Clinton signed on his way to catch his final helicopter ride from the White House lawn). And forget about using Patrick Fitzgerald (the person who investigated Scooter Libby) because he is a Chicago Democrat.
What does all of this say about Obama? I'll leave it for the reader to decide.
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"And forget about using Patrick Fitzgerald (the person who investigated Scooter Libby) because he is a Chicago Democrat."
ReplyDeleteYep and he is a Sarah Palin fan as well
Dreadful article BTW who appointed Fitzi to Chicago?
And I would like to assert something that I expect you have already considered, Dave. There will be no investigation.
ReplyDeleteROFLMAO Edwardo. I bet no one in Vegas would put a betting line out on whether or not an investigation cocur.
ReplyDeleteDave,
ReplyDeleteBill H. had this to say in Midas last night. Is this increase due to additional printing press activity? Please elaborate. Thanks.
Joe M.
"The outstanding bank loans increased by some $400+ billion last week which is an insane amount. There has never ever been a change either up or down of this magnitude in a 4 week period much less in 1 week. Something is obviously going on behind the scenes which we are not privy to (business as usual), but the amount and timing is highly suspect."
Joe, Bill H. didn't do his homework. The oustanding loans number reflected a FASB rule change as of 3/31/10 which required banks to move SOME off-balance sheet "assets" (i.e. garbage loans) on to their reported balance sheet. It did not reflect an increase in loan activity or liquidity or money printing. There's plenty of the latter going on that the Fed can hide.
ReplyDeleteI don't have time to dig it up now, but in one of the comment sections below I linked the Fed link which described the rule change and its implentation. Jesse found the information.
Thanks Dave. "Some bad assets" that total 400 billion tells me they have multi-trillion in toxic debt and getting worse. We are so screwed.
ReplyDeleteJoe M.
Indeed we're screwed. $400 billion is NOTHING. That was just loans and leases. There's plenty of "level 3" shit that remains hidden from public view.
ReplyDeleteAfter being born and raised in "SOUTHERN" Illinois or the through way of Tornado alley we were spared these ravaging tornadoes due to the giant sucking wind that continually swirled towards the corrupt city of chicago (can't capitalize it)Is it any wonder these corrupt people were swayed and wooed by the words of Saul Alinsky, who as a young man rubbed shoulders with chicago mobster's and then fine tuned his diabolical thinking in college. The Allmighty in the final judgement will look upon these lying hypocrites with discust and vengence. Glad its them and not me.
ReplyDelete