Author: Matthew G. Saroff

A Saint’s Bones, Ronald Reagan’s Blood, It’s All the Same

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It appears that someone has found an old vial of Reagan’s blood, and is selling it:

Ronald Reagan’s foundation expressed outrage on Monday at a British company’s auction of what it says is a vial of the late U.S. president’s blood taken at the hospital where he was treated after a 1981 assassination attempt.

PFC Auctions, a company based in Guernsey in the United Kingdom, announced on Sunday that it would sell the vial of blood in an online auction set to end on Thursday.

The vial was taken at George Washington University Hospital on March 30, 1981, after Reagan was wounded by John Hinckley Jr. in Washington, D.C., PFC Auctions said on its website. It is said to have come from a person whose late mother had worked at a medical lab.

“If indeed this story is true, it’s a craven act and we will use every legal means to stop its sale or purchase,” John Heubusch, executive director of the Ronald Reagan Presidential Foundation, said in a statement.

The website for PFC Auctions said the latest online bid for the vial stood at 6,270 British pounds ($9,910). A PFC Auctions representative could not be reached for comment.

I guess that this is the Republican equivalent of a piece of the true cross, or Jesus’ foreskin.  (Yes, Virginia, one of the medieval scams was his foreskin.)

BTW, here is the kicker:

The seller said he or she had contacted the California-based Ronald Reagan Library and Museum, which is run by the late president’s foundation, months ago and had been told that Reagan’s family would like to have the vial given to them.

“I told him that I didn’t think that was something that I was going to consider … and that I was a real fan of Reaganomics and felt that President Reagan himself would rather see me sell it rather than donating it,” the statement said.

H/t Ed Kilgore. BTW, read the comments on the his post, they are hysterical.

Two …… Three … Seven Billion

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It looks like their losses for JP Morgan’s bad day at the casino might increasing.

In any case, it’s bad enough that they are dropping a stock buyback,:

The crisis at JP Morgan escalated yesterday as it emerged its trading losses in London could rise to as much as $7bn (£4.5bn) and the US bank cancelled a share buyback. Fears were growing that the losses could spiral from an initial $2bn, which was declared on 10 May, as JP Morgan struggles to unwind the massive bets made by the so-called “London Whale” trader Bruno Iksil.

In a further blow, chairman and chief executive Jamie Dimon has suspended plans to use the US bank’s own funds to buy back $15bn worth of shares. Buybacks are a popular way for firms to use up cash sitting on the balance sheet and prop up the share price.

I’m inclined to believe that the losses are going to get a lot worse.

Stock buybacks are all about management making sure that shareholders won’t feel inclined to try to fire them.

They are bailing out the boat, and they decided that they needed to toss out the life-jackets to lighten the load.

Not good.

Just When You Thought that Grover Norquist Could Not Get Any More Absurd

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He is now comparing the Schumer-Casey bill to penalize people like Facebook co-founder Eduardo Saverin for renouncing US citizenship is like Nazi Germany:

The anti-tax activist Grover Norquist on Friday compared a new Democratic proposal to penalize Americans who renounce their citizenship to evade taxes to policies employed by the Nazis and communists.

Sens. Chuck Schumer (D-N.Y.) and Bob Casey (D-Pa.) introduced legislation this week — in response to a Facebook co-founder ditching his citizenship — that would force wealthy people who give up their U.S. citizenship to prove that they did not do so for tax reasons.

Norquist, the president of Americans for Tax Reform, said the targeting people that turn in their passports reminded him of regimes that had driven people out of the country, only to confiscate their wealth at the door.

“I think Schumer can probably find the legislation to do this. It existed in Germany in the 1930s and Rhodesia in the ’70s and in South Africa as well,” said Norquist. “He probably just plagiarized it and translated it from the original German.”

This guy has as his goal for the federal government is that he wants to, “shrink it down to the size where we can drown it in the bathtub.”

And people think he’s a “very serious person” in DC. He isn’t.

He’s a radical whose ultimate goals are closer to that of Timothy McVey than they are to David Brooks.

Yes, We Are at War With Pakistan

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At the NATO summit in Chicago, Obama refused to talk with Pakistani President Zardary:

The rift between the US and Pakistan deepened on Monday as the Nato summit in Chicago broke up without a deal on Afghanistan supply routes.

Barack Obama, at a press conference to wind up the summit, made no attempt to conceal his exasperation, issuing a pointed warning to Pakistan it was in its wider interest to work with the US to avoid being “consumed” by extremists.

Seldom in recent years have the tensions between Washington and Islamabad been on public show to the extent as at the Chicago, overshadowing the two-day Nato summit.

The main point of friction is Pakistan’s closure of Nato supply routes to Afghanistan in protest over drone attacks and a US air strike in November that killed two dozen Pakistani troops.

Obama refused to make time during the two-day summit to see the Pakistan president Asif Ali Zardari for a face-to-face bilateral meeting. In a press conference, Obama made a point of stressing that the only exchange he had with his Pakistani counterpart was short. “Very brief, as we were walking into the summit,” Obama said.

The US president said he “did not want to paper over the cracks” and that there has been tension between the US-led international force in Afghanistan and Pakistan over the last few months.

I’m not sure if this is a ramping up of tension, or a recognition by Obama that the military is running the show.

But the fact is that we are effectively at war with a significant portion of the Pakistani state security apparatus, which is actively destabilizing Afghanistan because they see Karzai as being to favorably disposed toward India.

Good.

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About a week and a half ago, I blogged about how the black hat orthodox community in Brooklyn has been engaging in a systematic program of intimidation and harassment against people who report allegations of the child abuse to the police.

I called them despicable and evil, and I said that I hoped that the Brooklyn DA would go after these instances of intimidation.

Well, my wish has been granted, Brooklyn DA Charles Hynes is opening up a criminal investigation into these allegations:

The Brooklyn district attorney, Charles J. Hynes, is setting up a panel of prosecutors and investigators to crack down on witness intimidation in child sexual abuse cases in the borough’s ultra-Orthodox Jewish community.

Speaking on NY1 on Thursday night, Mr. Hynes said he was asking the panel to “come up with some alternatives to break down this wall of intimidation.”

He criticized elements in the ultra-Orthodox Jewish community over their treatment of sexual abuse victims.

“The level of intimidation is not found nearly as much in organized crime,” he said. “It’s extraordinary just how relentless these people can be.”

“There is no concern for the victim in parts of these communities,” he added. “Everything is for the abuser, and that’s the horrible thing that we have to deal with.”

It was a shift in tone for Mr. Hynes, who in the past has praised ultra-Orthodox Jewish leaders for helping to fight crime in their neighborhoods.

Hopefully, this is real, and not a task force for appearances sake only.

Nothing will change though, until we start seeing the senior rabbis behind this behavior, those with big names and many disciples, are brought up on formal charges.

Trust Timothy “Eddie Haskell” Geithner to Do the Right Think…

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When there is absolutely no alternative to doing the right thing.

It looks like little Timmy is Treasury Secretary speak to tell Jamie Dimon to get the f%$# off the board of the New York Bank of the Federal Reserve following his little $2 billion (actually $3 billion) screw-up at JP Morgan Chase:

In an interview Thursday on PBS NewsHour, Jeffrey Brown and Treasury Secretary Tim Geithner had the following exchange:

“JEFFREY BROWN: Do you think Jamie Dimon should be off the board [of the New York Federal Reserve Board]?

TIMOTHY GEITHNER: Well, that’s a question he’ll have to make and the Fed will have to make. But again, on the basic point, which is it is very important, particularly given the damage caused by the crisis, that our system of oversight and safeguards and the enforcement authorities have not just the resources they need, but they are perceived to be above any political influence and have the independence and the ability to make sure these reforms are tough and effective so we protect the American people, again, from a crisis like this. And we’re going to, we’re going to do that.”

In the diplomatic language of Treasury communications, Mr. Geithner just told Jamie Dimon to resign from the New York Fed board (here is the current board composition).  It looks bad – and it is bad – to have him on the board of this key part of the Federal Reserve System at a time when his bank is under investigation with regard to its large trading losses and the apparent failure of its risk management system.  (Update: Mr. Dimon is on the Management and Budget Committee of the NY Fed board; here is the committee’s charter, which includes reviewing and endorsing “the framework for compensation of the Bank’s senior executives (Senior Vice President and above)”.)

Simon Johnson thinks that Dimon will ignore him, and I agree.

Geithner is the banksters bitch, and is not sincere in his request.  He just wants the appearance of getting tough on malfeasance in the financial sector, not the reality.

The National Review: America’s Source for Crappy Journalism

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They had a scoop that Elizabeth Warren, founder of the Consumer Financial Protection Bureau and Senate Candidate had plagiarized another book.

The problem was that they missed the fact that Warren’s book was published first:

The National Review says Elizabeth Warren is guilty of the gravest crime a writer can commit: Plagiarism. Katrina Trinko compares passages from “All Your Worth: The Ultimate Money Lifetime Plan,” Warren’s book with her daughter, Amelia Warren Tyagi, with passages from “Getting on the Money Track,” a book by Rob Black. The passages line up perfectly. The wording and even the punctuation are identical. It’s plagiarism all right. Except it looks very much like Warren is actually the victim.

The National Review headline says “Plagiarism in Elizabeth Warren’s 2006 book.” The body refers to Warren publishing the book “in 2006″ and Black’s book coming out in 2005. That’s true! Except that in 2006 the paperback of Warren’s book was published. The hardcover came out in March of 2005. Black’s book seems to have come out, if Amazon is correct, October 14 2005. (Or, according to Barnes and Noble, July 2005?) Months after Warren’s book. Unless there was an earlier published hardcover version that I can’t find on Amazon, it seems like Black most likely plagiarized Warren.

The National review has since retracted the story.

Another Shoe Drops for JP Morgan

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That $2 billion that they lost in obscure casino games? Well now it’s at least 3 billion:

The trading losses suffered by JPMorgan Chase have surged in recent days, surpassing the bank’s initial $2 billion estimate by at least $1 billion, according to people with knowledge of the losses.

When Jamie Dimon, JPMorgan’s chief executive, announced the losses last Thursday, he indicated they could double within the next few quarters. But that process has been compressed into four trading days as hedge funds and other investors take advantage of JPMorgan’s distress, fueling faster deterioration in the underlying credit market positions held by the bank.

A spokeswoman for the bank declined to comment, although Mr. Dimon has said the total paper trading losses will be volatile depending on day-to-day market fluctuations.

We’re going to end up bailing out these ratf%$#s in the next few years, mark my words.

It will either be directly, or indirectly through their counter-parties.

Well, What Do You Know, The DoJ Gets One Right

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The Justice Department has vigorously defending the right of the general public to videotape police officers on duty:

As police departments around the country are increasingly caught up in tussles with members of the public who record their activities, the U.S. Justice Department has come out with a strong statement supporting the First Amendment right of individuals to record police officers in the public discharge of their duties.

In a surprising letter (.pdf) sent on Monday to attorneys for the Baltimore Police Department, the Justice Department also strongly asserted that officers who seize and destroy such recordings without a warrant or without due process are in strict violation of the individual’s Fourth and Fourteenth Amendment rights.

The letter was sent to the police department as it prepares for meetings to discuss a settlement over a civil lawsuit brought by a citizen who sued the department after his camera was seized by police.

In the lawsuit, Christopher Sharp alleged that in May 2010, Baltimore City police officers seized, searched and deleted the contents of his mobile phone after he used it to record them as they were arresting a friend of his.

I am very surprised.

Pleased, but surprised.

I’d like to see some prosecutions of overzealous cops, but I would consider this highly unlikely.

The EU Bureaucracy Isn’t Completely Stupid

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The EU’s financial services regulator is proposing allowing for a binding shareholder vote on executive compensation:

Shareholders in Europe’s listed companies will be given a binding vote on pay while those who invest in banks will gain powers to set a cap on bonus levels, under plans being drawn up by senior EU officials.

The initiative from Michel Barnier, the EU’s top financial services regulator, would hand bank investors the voting power to curb “morally indefensible” pay and limit the gap between the lowest and highest paid. Banks would also be forced to disclose their top 20-30 earners.

The French commissioner outlined his plans in an interview with the Financial Times in which he laid out his response to pay rebellions that have rattled executives at Barclays , Citigroup and AstraZeneca .

“I like that expression – the shareholder spring – or even a regulation spring, a rule-making spring,” he said. “I’m very attentive to this movement which I see as very positive. It corresponds with what I’ve been doing for the last two years. We need to put responsibility and transparency everywhere.”

Your mouth to God’s ear, Mr. Barnier.

They Own Us

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Too hot for TED

When someone gives a TED talk suggesting that lower taxes on the very wealthy actually makes out economy worse off, because the middle class is the real engine of job growth.

The response of TED was to refuse to release the video of the talk:

TED, the nonprofit organization that organizes and promotes wonky web videos on varying issues known as “TED talks,” has reportedly decided not to publish a video on income inequality in which venture capitalist Nick Hanauer declares, “Rich businesspeople like me don’t create jobs.” TED organizers deemed the talk too “politically controversial,” and in an email obtained by the National Journal, TED curator Chris Anderson told Hanauer that “we couldn’t release it, because it would be unquestionably regarded as out and out political. We’re in the middle of an election year in the US. Your argument comes down firmly on the side of one party.

It’s the super-rich’s world, they just allow us to rent a space in their attic.

BTW, the “Curator” of TED posted his his response online. The phrase, “Whiner” comes to mind. (Be sure to read the comments, they realy cut him a new one)

Basically, this was cut because the thesis makes the moneybags who back TED feel bad. The “Masters of the Universe” really think that they are different and special.

Thus they cannot abide being described as an effect rather than a cause.

I Approve of this Act of Populist Pandering

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Mario Andrew Cuomo has proposed putting a cap on executive pay at non-profits that get state contracts:

New York proposed regulations Wednesday to limit spending by state contractors, including a $199,000 executive pay cap that can be exceeded only with a special waiver or using money other than state tax dollars.

The proposals by 13 agencies cover contractors — many of them nonprofits providing social services — that receive more than $500,000 in state support annually representing at least 30 percent of their total funding. A contractor could pay executives more than $199,000 from other funds as long as salaries are below the top 25 percent in the field.

“These regulations will allow the state government to identify and stop the few providers that pocket taxpayer dollars rather than use them to serve the public,” Gov. Andrew Cuomo said in a prepared statement. In January, he issued an executive order to limit reimbursable costs by service providers who account for roughly one-third of the state’s $132.5 billion budget, noting one downstate provider of early intervention special education drew a salary of $2.2 million and a $1 million shareholder distribution.

Now, start applying it to for profit’s as well.

How the ECB Will Destroy the Euro Zone

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It’s now beginning to look like Greece will end up leaving Euro Zone.

The problem is that the EU is a consensus body, so Greece would have to agree to leave.

The solution is therefore to create conditions that are so onerous that Greece will have to leave.

The problem is that the only way that they can really do this is by crashing their banking system so that the only alternative is to leave the currency union.

The problem is that everyone knows this, and so we are seeing a slow-motion bank run in Greece, and we’re likely to see one in the rest of the peripheral nations:

Clever, huh? The only hitch is that, now that the game plan is becoming clear, rational Greeks are not choosing to wait for an EZ attack before withdrawing their funds from Greek banks and transferring them somewhere, anywhere, else. There is a gradually accelerating bank run taking place which is likely to reach criticality before a Greek-EZ policy showdown can take place.

There is a broader lesson here. By threatening to choke the Greek banking system, the EZ implicitly threatens to do the same for Spain or even Italy. They can say otherwise, but why should depositors in shaky peripheral banks believe them? Withholding euros from peripheral banking systems is a gun that goes off before it is fired. Simply brandishing this weapon is causing havoc and speeding the demise of the entire zone.

Better to put the gun away and do what should have been done all along: have the ECB assume the lender of last resort function for all EZ banks, with centralized financing of deposit insurance in particular. Don’t use the threat of a financial panic as a policy tool.

Greece should never have been a part of the Euro Zone, and considering the fact that they have more in common with the 3rd (corruption, dynastic politics, tax evasion, huge underground economy, etc.) world than they do with Western Europe, it’s arguable that they should never have been brought into the EU.

But most of the problems here, and what will cause the collapse of the Euro if it is not corrected, is that the basic system is fundamentally flawed.

It is pro-cyclical, it seems to be structured primarily for the financial industry, and it has no mechanism to address imbalances between member states.

If they continue on this path, it won’t just end the Euro Zone, it could cause a breakup of the EU.

So Not Shocking

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Matt Taibbi is looking at documents from the Overstock.com case against the banksters, and discovers some remarkably informative unintentional release of information:

The lawyers for Goldman and Bank of America/Merrill Lynch have been involved in a legal battle for some time – primarily with the retail giant Overstock.com, but also with Rolling Stone, the Economist, Bloomberg, and the New York Times. The banks have been fighting us to keep sealed certain documents that surfaced in the discovery process of an ultimately unsuccessful lawsuit filed by Overstock against the banks.

Last week, in response to an Overstock.com motion to unseal certain documents, the banks’ lawyers, apparently accidentally, filed an unredacted version of Overstock’s motion as an exhibit in their declaration of opposition to that motion. In doing so, they inadvertently entered into the public record a sort of greatest-hits selection of the very material they’ve been fighting for years to keep sealed.+

………

The lawsuit between Overstock and the banks concerned a phenomenon called naked short-selling, a kind of high-finance counterfeiting that, especially prior to the introduction of new regulations in 2008, short-sellers could use to artificially depress the value of the stocks they’ve bet against. The subject of naked short-selling is a) highly technical, and b) very controversial on Wall Street, with many pundits in the financial press for years treating the phenomenon as the stuff of myths and conspiracy theories.

Now, however, through the magic of this unredacted document, the public will be able to see for itself what the banks’ attitudes are not just toward the “mythical” practice of naked short selling (hint: they volubly confess to the activity, in writing), but toward regulations and laws in general.

“F%$# the compliance area – procedures, schmecedures,” chirps Peter Melz, former president of Merrill Lynch Professional Clearing Corp. (a.k.a. Merrill Pro), when a subordinate worries about the company failing to comply with the rules governing short sales.

We also find out here how Wall Street professionals manipulated public opinion by buying off and/or intimidating experts in their respective fields. In one email made public in this document, a lobbyist for SIFMA, the Securities Industry and Financial Markets Association, tells a Goldman executive how to engage an expert who otherwise would go work for “our more powerful enemies,” i.e. would work with Overstock on the company’s lawsuit.

(%$# mine)

Here’s the nickel version.

Short selling works as follows:

  • Locate the requisite shares of stocks.
  • Borrow them (and pay a fee).
  • Sell the borrowed shares.
  • Wait.
  • Buy shares, and return to borrower.

If the share price falls in the interim, you make money.

If it rises, you lose money.

Fairly simple and straightforward, and legal.

What isn’t legal is naked shorting, where you sell the shares, but have never borrowed them.

At one point, because of naked shorts, 107% of all outstanding shares were for sale, with the obvious effect of depressing the stock price (supply and demand), which pretty much guarantees a profit by short sellers, and you do not have to pay fees to borrow the stock.

It’s a win-win for everyone, except of course, the poor dupes who think that they won’t get ripped off by the banksters when they try to invest.

Something We Can All Agree on Regarding Israel

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That Representative Joe Pitts (R-PA) should have nothing to do with any initiative involving Israel, nor, for that matter, should he be allowed to cut his own meat:

It seems that Congressman Joe Pitts (R-PA) is a tad out of the loop on matters of Middle East peace. If it were up to him, Israelis and Palestinians would restart peace talks under the guidance of their respective leaders, Ariel Sharon and Yasser Arafat.

His advice does not seem to take into account the fact that Arafat died in 2004 and Sharon has been in a coma since 2006.

“With the global war against terrorism, it is now incumbent on Prime Minister Ariel Sharon and Palestinian Authority (PA) Chairman Yasir Arafat to clamp down on Palestinian extremists that have perpetuated violence and to restart a peace process that has collapsed,” wrote Pitts in a recent, rather outdated response letter to a constituent.

Perhaps Pitts should try to address some other burning issues from the 1990s, like making Newt Gingrich shut the f%$# up.

Hmmmm …… Things haven’t changed as much over the past 15 years as I’ve thought.