Category: Stupid

When You Are In a Hole, Stop Digging

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You would think that after Jon Stewart’s merciless beatdown of him, and of CNBC, Jim Cramer would have the sense to know that he’d been beaten, and not get into a pissing contest with a comedian and what may be the best, and smartest, writing staff on TV.

But, you’d be wrong, and Mr. Cramer continues to call out John Stewart.

So Stewart, and and His Minions™ on the Daily Show respond.

So Cramer dressed himself up as a fish…..And jumped in a barrel……And handed Jon Stewart a gun.

This is shooting fish in a barrel.

Any questions?

Do Not Reward the Incompetent

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While I’ve heard complaints about the people who campaigned against Proposition 8 in California, I’ve not followed it closely, but the following is unbelievable. Anyone who had anything to do with the “No on 8” campaign should never be hired as a political consultant ever again:

At the forum, Kors said turning the campaign over to the consultants was “a huge mistake.”

Smith also acknowledged that the campaign should have used then-presidential candidate Barack Obama’s stated opposition to Prop 8. Instead, little use was made of Obama’s opposition in a letter last June to the Alice B. Toklas LGBT Democratic Club, and right before Election Day the Yes on 8 campaign sent out a mailer featuring Obama’s image and quotes that he is opposed to same-sex marriage.

“That was a close call,” Smith said. “Maybe we should have.”

Maybe you should have? Maybe you should have?

This is so phenomenally stupid it beggars the imagination.

Smith said that people outside the Bay Area wouldn’t know what the Alice Club was, but club Co-Chair Susan Christian spoke up and said that in fact, Obama’s letter to the club been widely reported, including in the New York Times.

Win or lose at the California Supreme Court, and the indications are that it will be a lose, this will be on the ballot as an initiative petition in 2010, and job 1 is to ensure that the folks who ran “No on 8” don’t get into positions of authority on this.

See here, here, here, and here for better written outrage.

US Air Force Sacrificing ECM Capabilities to Push F-22 & F-35

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The Air Force has yet canceled the stand-off jammer EB-52.

If you look at electronic warfare assets for the USAF, they have been starved for some time, and the USAF’s argument is that AESA radars can fill the gap on their stealth platforms.

To my mind, what is going on here is that the Air Force is systematically defunding projects that might constitute a threat to the F-22, F-35, B-2, and NGB.

If you possess sufficient EW capabilities to negate the newer integrated air defense systems, then you don’t need stealth, so those EW capabilities have to be killed, even if they, as in the case of the EB-52, make stealth more effective and more survivable.

Because Timothy Geithner is a Loser

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So, Annette Nazareth and Caroline Atkinson, have withdrawn their names from consideration for positions working in the department of the Treasury, and we have blame placed on Senate delays, and the Obama Administration’s thoroughly anal retentive vetting process.

I have no doubt that both of these issues figure prominently in some of the difficulties in staffing, though Obama is actually well ahead of the pace of recent transitions, but I think that there is another factor.

I think that a number of people out there believe that Timothy Geithner, and be extension, Lawrence Summers, simply don’t get it with the banking crisis, and that they are wrong, and that they will continue to refuse to recognize the reality that a number of the gargantuan banks in the US are simply insolvent, and so they are refusing to do the sane thing, and put them in receivership. (or pre-privatization, nationalization, or whatever the frack you want to call it)

Simply put, they recognize that in the next 6-18 months, there is a real possibility that working with Timothy Geithner on their resume will look like working with Hank Paulson, and in any case, they want no part of a policy that they see as an train wreck.

Update on the Santelli Story

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So, Playboy pulled the posts, but it remains up at the Exiled, and Mssrs. Ames and Levine confirm pretty much every aspect of the story, though, to be fair, Rick Santelli has disavowed any involvement with any of the AstroTurf sites.

That being said, Santelli also canceled tomorrows appearance on The Daily Show, and is declining interviews, which is a polite way of saying, “That’s a fair cop, officer.”

I recommend that you read the whole article, if just for the delightful evisceration Megan McArdle’s attempted to refute a Freedomworks connection, despite the fact that she, you know, shares bodily fluids a man who was only recently running AstroTurf campaigns for Freedomworks, but finally even she is forced to admit that Freedomworks is hip deep in this:

Meanwhile, I’ve spoken with Brendan Steinhauser, the chap at FreedomWorks who has helped organize the tea parties. FreedomWorks has been, as far as I can tell, completely open about their interest in furthering the tea parties, which is not surprising because they’ve been completely open about opposing bailouts since before Obama took office. As Brendan describes it, he and FreedomWorks were calling for demonstrations against the stimulus even before it passed, but he got the teaparty idea from Michelle Malkin’s blog. FreedomWorks emailed its members and set up a website to encourage people to join in. This seems like pretty standard political organization tactics.

Ms. McArdle must thank her lucky stars every day for Amity Shlaes, because it’s only in comparison to Mrs. Lipsky that she does not come across as a complete tool.

Limbaugh blasts Steele, the GOP – Jonathan Martin – POLITICO.com

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Last night, I commented on efforts by the Democratic Party to tie Limbaugh to the Republican Party.

I thought that it was a good move, and now it appears that republicans are doing their level best to reinforce that meme.

Michael Steele makes some fairly innocuous comments about Limbaugh not being a leader of the Republican Party, just an entertainer (vid), and then goes on a rant against Michael Steele, suggesting that people should not give to the RNC, and a few hours later, we have a Steele giving yet another Stalin show trial Mea Culpa.

Tim Kaine was on it like white on rice

‘I was briefly encouraged by the courageous comments made my counterpart in the Republican Party over the weekend challenging Rush Limbaugh as the leader of the Republican Party and referring to his show as ‘incendiary’ and ‘ugly.’ However, Chairman Steele’s reversal this evening and his apology to Limbaugh proves the unfortunate point that Limbaugh is the leading force behind the Republican Party, its politics and its obstruction of President Obama’s agenda in Washington. Just this weekend, Rush Limbaugh repeated his claim that he is rooting for the President to fail. The last time Rush Limbaugh said he wanted the President to fail, virtually every single Republican in Congress followed his lead and voted against the President’s plan to create or save 3.5 million jobs.

….

Like shooting fish in a barrel.

Bailouts for Citi and Other Banks

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Let’s start with the numbers: City is currently trading at less than $1.50 a share, but the US government is converting its preferred shares to common stock at a price of $3.25/share, that’s around $12½ billion of taxpayer dollars down the hole.

Between the US Government, and various sovereign wealth funds, it means that existing shareholders have gone from 100% of the bank to 26% of the bank….Let’s be clear about it, they are insolvent, that’s the only reason that the management and the shareholders aren’t screaming bloody murder right now.

This is insane.

Looks Like We Will Have the Zombie Banks Around for a While

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Because when you look at the Treasury’s terms of their Capital Assistance Program, (Treasury link)it’s clear that they are propping up Citi, the weakest of the Zombie banks, because it’s purchasing preferred stock, and “These shares can convert at the firm’s discretion (with the approval of their regulator) into common equity if needed to preserve lending in worse-than-expected economic environment at a conversion price set at a 10% discount from the prevailing level of the institution’s stock price as of February 9, 2009.”

Why February 9, 2009? Because that’s the day before Citi’s common share price fell off a cliff.

If they go back any further, it makes it transparently clear that Citi is insolvent, and Timothy “Eddie Haskell” Geithner is trying to avoid placing it into receivership…So….More zombie banks.

If you want any confirmation that they won’t nationalize pre-privatize the big banks ever, you need only look at Bernanke lobbying for a weakening of the mark to market rules, so that they can call the valueless sh^% on their books a pony.

It appears that everyone is doing their level best to duplicate the mistakes of the Japanese in the early 1990s.

Citi is trading at less than $3/share. BoA ain’t doing much better. Their shareholders are already wiped out. This is about letting senior management keep their jobs, even after they mismanaged our finance system out of existence.

If There Is An Organization More Capable of Sabotaging Itself Than Fatah…

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It appears that there was a deal to open the borders to Gaza. It seems to have involved a prisoner release by Israel and the PA in exchange for the release of Gilad Shalit, but PA walked away from the deal, “because the Fatah officials believed it would weaken them.”

These guys really don’t have a clue. If Hamas releases Shalit, is ready to release Shalit, even with a significant release by the Israelis is going to be a net minus for Hamas, because it removes a bargaining chip from their hand, and because it means that they have negotiated a deal.

But the leadership of the PA is so damn timid, they snatch defeat from the jaws of victory.

Being Batsh%$ Insane is a Reason to Fire a CEO

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Case in point, Bank of America CEO Kenneth Lewis, who is now saying that Merrill-Lynch and Countrywide Financial are, or will be “stars” this year:

Bank of America Corp. Chief Executive Officer Kenneth Lewis said Merrill Lynch & Co. and Countrywide Financial Corp., the two acquisitions that some analysts say helped push down the bank’s share price, have been “stars” so far this year.

Lewis, speaking today in a Bloomberg Television interview from his Charlotte, North Carolina, headquarters, said Merrill will be “a thing of beauty” over the long term. Merrill, the New York-based securities firm, lost $15.8 billion in the fourth quarter.

Ummm….This guy is ready for the rubber room….Seriously.

Economics Update

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More brutal numbers on home sales, with sales of existing homes falling to a 12 year low.

Note also that existing home sales are becoming a bigger part of home sales in general, as foreclosures and other distressed sales make up a bigger part of the market.

Of course this can’t compare to the financial putrescence that is AIG, which just failed on an asset sale.

It wanted to use the proceeds to pay down some of its debt to the US government, but could not because of a lack of bidders. No one wants their crap.

BTW, Ken Lewis’s gift keeps on giving to Bank of America, because Merrill-Lynch lost $15.84 billion in Q4, about $500 million more than predicted.

There was an unexpected decline in gasoline stocks that drove oil higher today, while the poor housing news and the declines in the stock market have driven the dollar up as people look for safe havens.

The “Stress Testing” of the Big Banks is a Lie

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I’m shocked, shocked to find that gambling is going on here!

As Atrios notes, this is, “just overpaying for sh&%pile.“

Statement from the Treasury
Currently, the major U.S. banking institutions have capital in excess of the amounts required to be considered well capitalized.:

A strong, resilient financial system is necessary to facilitate a broad and sustainable economic recovery. The U.S. government stands firmly behind the banking system during this period of financial strain to ensure it will be able to perform its key function of providing credit to households and businesses. The government will ensure that banks have the capital and liquidity they need to provide the credit necessary to restore economic growth. Moreover, we reiterate our determination to preserve the viability of systemically important financial institutions so that they are able to meet their commitments. “We announced on February 10, 2009, a Capital Assistance Program to ensure that our banking institutions are appropriately capitalized, with high-quality capital. Under this program, which will be initiated on February 25, the capital needs of the major U.S. banking institutions will be evaluated under a more challenging economic environment. Should that assessment indicate that an additional capital buffer is warranted, institutions will have an opportunity to turn first to private sources of capital.

Otherwise, the temporary capital buffer will be made available from the government. This additional capital does not imply a new capital standard and it is not expected to be maintained on an ongoing basis. Instead, it is available to provide a cushion against larger than expected future losses, should they occur due to a more severe economic environment, and to support lending to creditworthy borrowers. Any government capital will be in the form of mandatory convertible preferred shares, which would be converted into common equity shares only as needed over time to keep banks in a well-capitalized position and can be retired under improved financial conditions before the conversion becomes mandatory. Previous capital injections under the Troubled Asset Relief Program will also be eligible to be exchanged for the mandatory convertible preferred shares.

The conversion feature will enable institutions to maintain or enhance the quality of their capital. “Currently, the major U.S. banking institutions have capital in excess of the amounts required to be considered well capitalized. This program is designed to ensure that these major banking institutions have sufficient capital to perform their critical role in our financial system on an ongoing basis and can support economic recovery, even under an economic environment that is more challenging than is currently anticipated. The customers and the providers of capital and funding can be assured that as a result of this program participating banks will be able to move forward to provide the credit necessary for the stabilization and recovery of the U.S. economy. Because our economy functions better when financial institutions are well managed in the private sector, the strong presumption of the Capital Assistance Program is that banks should remain in private hands.”

(Emphasis is from FT Alphaville, not the original)

I don’t know about you, but it appears to me that Timothy Geithner has absolutely no intention of applying the normal standards of solvency to any of the big banks.

We have this further reinforced by this lovely quote:

Said one high-level official, “I think the market is missing that the whole intent of this process is to show that the banks have enough capital for even worse outcomes than we currently envision and to show there’s a program in place to give banks access to that capital if they need it.”

So that’s Geithner’s and by extension Barack Obama’s official policy: privatize profits, and nationalize losses.

(H/T Naked Capitalism for finding the quote)

BTW, just when you thought that Geithner could not get his tongue any further up Wall Street’s anus, we have news that he wants to loan massive amounts of money to hedge funds, to encourage them to buy large pieces of the sh%$pile.

By Dagon’s doughnuts, if this is that bad, we need to nationalize preprivatize the banks tomorrow.

More F-22s Appear to Be Coming

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The reports appear to indicate that the USAF will get 60 More F-22s, at a price tag of around $800-900 billion, though it appears that it will remain firmly in the “not for export” category.

Won’t be much use for the military, and it’s really expensive, the the wild blue yonder types are ecstatic right now.

How about if instead of the planes, we just chip in and rent them a hooker?

That way the taxpayer won’t be quite so f%$#ed.

Not Enough Bullets: TARP Recipients

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So, after taking billions of dollars of money from the treasury, and trillions from the Federal Reserve’s sh%$pile for cash program, we now discover that they are overcharging for federally guaranteed loans:

Since the Federal Deposit Insurance Corp. started guaranteeing debt in November, banks have charged clients, including themselves, more than $375 million in fees on $154 billion of deals in the U.S., according to data compiled by Bloomberg. Pittsburgh-based PNC Financial Services Group Inc., which received $7.6 billion from the U.S. Treasury, paid Citigroup and JPMorgan Chase & Co. 30 basis points, or $6 million, in December to sell FDIC-backed notes due in three-and- a-half years. A month later, JPMorgan and two other banks charged Freddie Mac 7.5 basis points for a similar offering.

(emphasis mine)

Also, the bailed out banks continue to maintain lavish offices, complete with office staff, for their recently ousted CEOs:

Looking for Charles O. “Chuck” Prince, ousted 15 months ago as Citigroup Inc.’s chief executive officer? Just call his extension at the bank, which still pays for his office and secretary in Midtown Manhattan.

Former Citigroup investment-banking head Michael Klein also has a free office and secretary after receiving a $34.3 million exit package when he quit in July 2008. John Reed, 70, who hasn’t worked at the bank since he resigned as co-CEO in 2000 with a $5 million parting bonus, is entitled to an office and secretary for as long as he wants.

Sanford I. “Sandy” Weill, who retired as chairman in 2006, is ending a 10-year consulting contract with the bank in April after just three years. The agreement gave him millions of dollars in perks, including an office, car and driver and use of company aircraft, which he gave up in February.

Sure as hell beats working for a living, I guess.

It appears to me that we have our own oligarchs in the United States, and we need to deal with them appropriately.

Unfortunately, I can’t find Vladimir Putin on my speed dial.

Deployments Scrubbed from AF Promotions

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In 2007, I suggested that perhaps we needed to abolish the USAF as an independent service, quoting the then Air Combat Command chief Ronald Keys:

The hardest wars we fight are not on the battlefield, but the wars we fight in the halls of Congress. They are fought in the Pentagon, they are fought in these programs, to make sure the money is paid and eventually the program is operating.

Well, it appears that the USAF continues to see its most important role as a K Street lobbyist, because they are now scrubbing combat deployments from the records used to determine if an officer or senior NCO gets a promotion, so there is no credit for combat duty, because it’s more important to lobby for bloated weapons systems.

Nothing but REMF’s here sir.

The EU Gets a Major Case of the Stupids

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The European parliament’s legal affairs committee just voted to extend copyright on music performances to 95 years. It was 50 years.

It has to go to the full parliament, but it’s likely to pass next month.

Stupid.

This won’t create any more performances, people don’t perform in the expectation of revenues on year 51, so it won’t create any more music, but what it will do is ensure that obscure works will be lost over time, because the difficulties of preserving and reproducing them will be too great.

Under the rules that they are proposing….Hell under the rules that they have now, Shakespeare’s works would have been forever lost to decay.

They would be gone, but we have to protect the f^%$ing mouse for another 45 f^%$ing years.