naked capitalism

doc holiday says:

This is the look of bewilderment that most people have as they read about Fannie and Freddie and yet another stunning and strategically timed weekend rescue of two components connected to the mechanism of commerce which pushes the mortgage chain linked to the Fraudulent Ownership Society which has now exploded into fragments in a burst of triumphant entropy which McCain & Friends Of Mozilla are saluting, as the band plays:

This land is your land, this land is my land
From California, to the New York Island
From the redwood forest, to the gulf stream waters
This land was made for you and me

As I was walking a ribbon of highway
I saw above me an endless skyway
I saw below me a golden valley
This land was made for you and me…

Sarah Pas Malin says:

Mr. Smith, I’m part of God’s design for this great country. I’ll have you fired from your own blog if you don’t like me.

dh says:

The unfunded liabilities of the state's Public Employees' Retirement System and Teachers' Retirement System exceed $8 billion. The bill creates a new Alaska Pension Obligation Bond Corp. to issue the debt, though it also authorizes the Alaska Municipal Bond Bank Authority, Alaska Housing Finance Corp., and the state bond committee to issue POBs. It is the new Pension Obligation Bond Corp that will be used to conduct the transaction, according to Andrews, who played a key role in drafting the legislation. "We still have to go out for a procurement for bond counsel, financial advisers, and investment bankers," he said. "There's a lot of work that needs to be done."

Last week, Palin signed a supplemental bill that placed $3.6 billion into Alaska's Constitutional Budget Reserve and Statutory Budget Reserve funds. By comparison, the governor's entire general fund operating and capital proposal for fiscal 2009 called for $4.4 billion in spending, though lawmakers are expected to load the capital up massively before their scheduled adjournment Sunday. Alaska uses its full authorization, it would be the second-largest POB deal on record, according to Thomson Financial data.

Risky Business? Evaluating the Use of Pension Obligation Bonds
http://www.gfoa.org/services/gfr/archives/2003/06/gfr0603.pdf

As attractive as this plan may appear from a budgetary perspective, the issuance of pension bonds generally carries significant risks that are often downplayed in light of immediate fiscal pressures and the concerns of pensioners. Using two pension bond issues by a previous adopter ofthis strategy, this article evaluates the conditions under which pen-sion bond issuance may or may not be appropriate

Like any financial debt instrument, pension bonds are two-edged swords. In the hands of the right borrower, a well-designedpension bond issue may play a useful if limited role in managing pension fund obligations. However, a poorly designed issue forthe account of an inappropriate borrower may simply reflect adesperate effort to avoid coming to terms with fiscal reality, withunpleasant ultimate consequences for all concerned..

>> San Diego Mayor Race Is Exposing The Pension Obligation Bond Nightmare
Submitted by pdxnag on Mon, 10/11/2004 – 4:20am.
The recipe begins with government folks writing pre-dated checks called pension benefits. It comes in many forms. It is like you writing a check from your checkbook, with a future date on it, hoping that you can get the money into the account before someone tries to cash it. Simple enough.

The pension bond is used to flush up the account, as needed, and however many times as is needed over and over and over again, until all the gift checks are covered. There is no release obtained by the government when they flush up the account to cover the gifts that they never could afford to pay in the first place.

Are the pension obligation bond peddlers the evil folks starting, or at least encouraging, the runaway gift giving? Are the gift givers doing nothing more than throwing money away to buy political loyalty? Are they a tag team of thieves? RICO RICO RICO. The gift giving by the government folks could not continue, and expand, without the pension obligation bond peddlers enabling, and leveraging, the gift giving ability of the present set of gift givers. Wall Street casino gamers must be laughing all the way to the bank because the borrowed money is often tossed into the casino. The legal advisor folks seem to think that the more money a pension losses the better because they say that just means more borrowing. The cycle of wacko-ness just gets worse over time. It is a gambling addict phenomenon.
http://pdxnag.com/drupal/node/500

SEE ALSO: Under Alaska Constitution, “debt” must be for capital improvements and approved by voters.

Restrictions do not apply to “Certificates of Participation” or other obligations subject to appropriation.

Subject-to-appropriation debt is somewhat more expensive than full faith and credit debt.
Although some home rule municipalities may be able to issue obligations under their own charter provisions, there is no general statutory authority for the issuance of pension obligation bonds.

Anonymous says:

http://www.andrys.com/palin-kilkenny.html

Ms. Smith: You’d be interested, I think, in this description of Palin’s early career.

Best regards,

C. Neil

Richmond Rambler says:

Hi Yves,

I too loathe Palin. Is this what my mother and other women fought for in the workplace during the 70s? I don’t think so. And yet I fear we are looking at a Palin/McCain White House. My husband and I moved to Richmond, VA from Paris last year, and we have been shocked by the redness of this state. Our neighborhood is liberal (lots of Obama posters) but still uncomfortably segregated. Though the other day I witnessed a very touching scene — a group of five or six grey-haired elderly African-Americans (three with canes) going door to door on behalf of O’s campaign. I kid you not, it took one of the women five minutes to climb as many stairs. And then to see Palin that night; well, I was just beside myself with fear and anger.

Lincoln kept a volume of Shakespeare on his nightstand. Jefferson, despite his hypocrisies, was brilliant and incredibly erudite. Who are these people who want lackluster brains in our most powerful offices? People with lackluster brains.

You’ve probably read Judith Warner’s Mirrored Ceiling article in the NYT. Very well-written. But have you read through the comments? Doing so made me feel normal for the first time in days. Elizabeth Fuller’s (#5) comment is perfect.

etc says:

You people expressing some vague cultural hostility to either Obama or Palin are lowering the quality of this blog. If you’re going to comment on them, please try to say something interesting, entertaining, or useful.

Anonymous says:

I can understand the confusion on that cat’s face.

Where’s the freakin’ meat?

Richmond Rambler says:

Yves,

For your delectation:

http://www.factcheck.org/

bg says:

Yves,

I know you are human, and so have legitimate biases. But I had you on a pedestal for your clear writing, wide knowledge and macroeconomic wisdom.

Sarah Palin is an impressive person, with her conviction and accomplishments. I say that with real disagreements with her politics. You lessen yourself by flashing your biases.

donna says:

Aw, c’mon, I want my $3000 a year from the oil companies too! I mean if Alaska is entitled to it, aren’t we all?

Then again, she left her city with $20 million in debt, even after asking for $30 million from the Feds. And Alaska gets more federal pork per capita than any other state. But I guess she could just go lobby China and the sovereign wealth funds to put us on their dole.

“Reformer” my ass.

Cash Mundy says:

Alaskans Speak (In A Frightened Whisper): Palin Is “Racist, Sexist, Vindictive And Mean.”


“So Sambo beat the bitch!”

This is how Republican Vice Presidential nominee Sarah Palin described Barack Obama’s win over Hillary Clinton to political colleagues in a restaurant a few days after Obama locked up the Democratic Party presidential nomination.
…..

doc holiday says:

Re: "I know you are human, and so have legitimate biases"

>> Go away, this is my animal section and I need my space; it's crap like this that prevents me from focusing on the cat picture at hand, so your bullshit is off topic, go on, get!

Anonymous says:

Yves, I disagree with the first poster. I don’t think most Americans are political enough. I believe it’s important that people see the political opinions of others they respect. It’s important that the issues are discussed by real people. The media coverage is all for show.

If you haven’t already been reading this, it’s good writing by a an Alaskan on Palin.

jest says:

in defense of yves (not that she needs it) this is her blog, and she can say whatever she likes about palin here.

if you don’t like it ignore the comments, or go to another blog, but the complaining is unnecessary.

doc holiday says:

The worst outcome of this election is the polarization that will divide people even further into smaller fragmented groups that grow further apart. Palin represents the good ol’ boy of Bush and the young zesty leadership potential that McCain lacks, and as unbelievable as those qualities may be, this is what a lot of Americans think they want. This downhome image that plays upon the couch potato alcoholic that has less than a high school education, may be a perfect fit for unlocking fence-sitter Palin votes — but will these several hundred votes be enough to fire up the rusted and tarnished Republican engine that is stalled in the roundhouse? I don’t know BillyBob, why don’t we drink about it and surf for porn?

Cash Mundy says:

Juan, Corporatism indeed. The Republican Base of today closely matches in spirit another Base from the last century: a passionate conviction of national and/or racial and/or religious supremacy, narcissistic outrage at contradiction and prompt resort to violence, a continual state of righteous indignation, and a sense of national decline caused by enemies within and without.

Dean, I think you have found the key to understanding this whole situation. We have already been informed by reliable sources (ziocon hatchetmen and their plentiful useful idiots) that Obama is none other than the Anti-Christ! If Palin is in fact the Anti-Obama, then she is the Anti-Anti-Christ! Could somebody please do the math on that? My brain hurts!

Richmond Rambler says:

Juan, Although what you say is likely true, the choice NOT to point out Palin’s considerable short-comings reeks of the kind of appeasement that’s been pecking away the Democratic guts for too long. It’s offensive how quickly people (namely many Dems) will let the other side define and delimit them.

One scary thing about Palin and McCain is that people seem willing to adopt them as family members — with all the irrational loyalty and defending/shrugging away of foibles that implies.

doc holiday says:

Re: “One scary thing about Palin and McCain is that people seem willing to adopt them as family members”

I think you refer to the potential of Palin to be the alcoholic failure and drugged out sister that could be almost any of us at almost any time of the day, as we run low on blood sugar and then spring back to the person we really is…LOL!

Children growing up in a dysfunctional family have been known to adopt one or more of six basic roles:[citation needed]
“The Good Child” – a child who assumes the parental role.
“The Problem Child” – the child who is blamed for most problems, in spite of often being the only emotionally stable one in the family.
“The Caretaker” – the one who takes responsibility for the emotional well-being of the family.
“The Lost Child” – the inconspicuous, quiet one, whose needs are often ignored or hidden.
“The Mascot” – uses comedy to divert attention away from the increasingly dysfunctional family system.
“The Mastermind” – the opportunist who capitalizes on the other family members’ faults in order to get whatever he/she wants.

Cash Mundy says:

Yes, another high-school beauty-contest indeed, or equivalently like professional wrestling: Sweet Saint Sarah defeats (for the outcome must be known in advance: the electorate is upset by uncertainty) Osama the Anti-Christ and Keeps the World Safe for White Christian Womanhood.

Churchill (one of my favorites despite his politics):

Many forms of Government have been tried and will be tried in this world of sin and woe. No one pretends that democracy is perfect or all-wise. Indeed, it has been said that democracy is the worst form of government except all those other forms that have been tried from time to time.

Cash:

…What were those other forms again?…