David Drake

Bank stocks are retreating amid fresh concerns that financial firms will need additional capital to weather the ongoing credit crisis and recession.

The KBW Bank Index, which tracks 24 of the nation's largest banks, fell more than 7 percent to 27.06.

The fall comes a day after Treasury Secretary Timothy Geithner said during television interviews that the struggling banking sector might need even more money to help it right itself and increase lending. The comments by Geithner affirmed that the ongoing credit crisis and recession is still weighing on banks.

"Putting that out there highlights the fact that we're not in the late stages of this," says Peter Jankovskis, co-chief investment officer at OakBrook Investments.

U.S. stocks fell as the specter of a bankruptcy for General Motors and fears that banks such as Citigroup and Bank of America may not pass their "stress tests" punctured the recent rally. The Dow Jones Industrial Average fell 254.16 points, or 3.27%, to 7522.02[.]

[...]

Standard & Poor's 500 index fell 28.41, or 3.48%, to 787.53[.]

[...]

The technology-oriented Nasdaq Composite fell 43.4, or 2.81%, to 1501.8.

38% of the nation's voters now Strongly Approve of the way that Barack Obama is performing his role as President.

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Thirty percent (30%) now Strongly Disapprove[.]

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58% of voters say they at least somewhat approve of the President's performance so far. Forty percent (40%) disapprove.

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46% of voters still have an unfavorable opinion of the President’s budget.

There's a story going around about Joe Biden's daugther [sic] allegedly being taped snorting cocaine.

This, of course, is a truly sad commentary on the state of politics. First, it is sad that a "friend" would video tape a friend -- and then seek to sell it. Second, this young lady is not running for office. Third, Joe Biden isn't even running for office (not that a campaign would make this fair game).

The only possible reason to reveal this tape would be 1). to make a buck, or 2). to humiliate Biden and his daughter. This young lady is neither a celebrity or a politician.

I disagree with Joe Biden's political philosophy, but this is a low blow. Regardless of whether or not this turns out to be legit, I hope this video never sees the light of day ...

Americans are split essentially down the middle when asked to assess the job Tim Geithner is doing as Treasury secretary: 42% say they approve, 40% disapprove, and 18% have no opinion.

[...]

Some critics have assailed the way in which Geithner has handled his responsibilities, especially relative to the AIG bonus controversy, and there have been calls for his resignation. Republican Rep. Connie Mack, one of those calling for his resignation, was quoted as saying "[Geithner] has lost the confidence of the American people." Nevertheless, Obama has continued to stand publicly behind his Treasury secretary.

Pelosi's popularity has fallen to a new low for the year, with 60 percent of likely voters now viewing her unfavorably according to a Rasmussen Reports poll released Friday.

Even worse news for the California Democrat: A whopping 42 percent characterize her job performance as "very unfavorable."

[...]

...other findings suggest voter's patience with Democrats' handling of the economy could be wearing thin:

* Sen. Majority Leader Harry Reid is also suffering from weak poll numbers. Of the 1,000 likely voters Rasmussen polled March 24 and 25, some 45 percent rated Reid unfavorably, compared to 23 percent who gave him a favorable assessment.

* Even among Democrats, the popularity of both Reid and Pelosi is sinking. A growing number of Democrats are now critical of their performance.

[...]

* One issue plaguing Democrats, Rasmussen says, is that two-thirds of Americans now believe Obama is likely to raise taxes on those earning less than $250,000 a year.

...Obama is facing challenges to U.S. power on multiple fronts as he prepares for his first presidential trip overseas, with the nation's economic woes emboldening allies and adversaries alike.

[...]

...Obama will confront resentment over U.S.-style capitalism and resistance to his economic prescriptions when he lands in London on Tuesday for the Group of 20 summit of industrial and emerging market nations. He will not even try to overcome NATO's unwillingness to provide more troops in Afghanistan when he goes on later in the week to meet with the military alliance.

He seems unlikely to return home with any more to show for his attempts to open a dialogue with Iran's leaders[.]

The blueprint for a new, unified and global assault on the financial crisis — spearheaded by a £1.4 trillion ($A2.9 trillion) fiscal stimulus package — was reportedly dismissed by German Chancellor Angela Merkel.

"I will not let anyone tell me that we must spend more money," she was quoted as saying.

[...]

The leak and clear rejection of the British blueprint by key European Union leaders can also be read as a blow for US President Barack Obama, who has worked forcefully to lead other major world economies into echoing his own $US800 billion ($A1.15 trillion) stimulus plan.

The president of the European Union on Wednesday ripped the Obama administration's economic policies, calling its deficit spending and bank bailouts "a road to hell."

The comments by Prime Minister Mirek Topolanek of the Czech Republic, which holds the E.U.'s rotating presidency, startled some U.S. and European officials, who are preparing for President Obama's visit next month to several European cities, including Prague, the Czech capital.

"[Zetuni's case] is unusual in American history because it's a relative of the president involved in immigration matters," said Mark Kirkorian, executive director of the Washington -based Center for Immigration Studies. "It really does present the White House with a opportunity of a minefield."

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[President] Obama has said he's had no involvement in the case and that is should run its ordinary course, White House spokesman Ben LaBolt said.

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[Zeituni] came to the United States in 2000 to find work and to seek a better life. Though she was ordered deported in 2004, she remained in the United States undetected until just before Election Day.

A "friend" of Vice President Joseph Biden's daughter, Ashley, is attempting to hawk a videotape that he claims shows her snorting cocaine at a house party this month in Delaware.

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Dunlap and a man claiming to be a lawyer showed The Post about 90 seconds of 43-minute tape, saying it was legally obtained and that Ashley was aware she was being filmed.

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The dialogue is difficult to discern, but the woman makes repeated references to the drugs, said the lawyers, who said they viewed the tape about 15 times.

"At one point she pretty much complains that the line isn't big enough," said the second lawyer, who declined to identify himself. "And she talks about her dad."

[Joe] Biden has been an outspoken crusader against drugs, coining the term "drug czar" in 1982 while campaigning for a more forceful "war on drugs."

[...]

The woman in the video acknowledges the camera in a way that makes it clear she knows she's being recorded, the lawyers said, waving at it during a part of the video not shown to The Post.

No one else in the video is seen using the drugs. The woman in the video acknowledges the camera in a way that makes it clear she knows she's being recorded, the lawyers said, waving at it during a part of the video not shown to The Post.

AP - by James MacPherson

BISMARK, N.D. Salty oil well water is being sprayed on North Dakota roads as a deicer and environmental groups want it stopped.

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[Ken Kussy, street maintenance manager] said tests on three wells where the water is obtained found it no more toxic than commercial road salt.

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But environmentalists question that practice.

"The long and short of it is that we don't think it's legal," said Cindy Klein, a spokeswoman for the Dickinson-based Dakota Resource Council, an environmental and landowner group.

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[Dave Glatt, director of the environmental health section of the state Health Department] said, "compared with commercial-grade products, what we saw didn't rise to a level of concern."

"What a way to run a railroad," said Wayde Schafer, a North Dakota spokesman for the Sierra Club. "It's a sad commentary that the perceived financial savings outweigh public health and the environment."

President Obama this hour unveiled details of a revised strategy for the battle against terrorists in Afghanistan and Pakistan. As has been widely reported, he was expected to say he's sending about 4,000 more troops -- on top of the additional 17,000 he's already added to the region.

"We could set up systems so that everybody in each house have their own smart meters that will tell you when to turn off the lights, when the peak hours are, can help you sell back energy that you've generated in your home through a solar panel or through other mechanisms."

I noted earlier that Tim Geithner had been surprisingly sanguine about a new world currency, and had to be pulled back onto his tightrope by former Clinton Treasury official Roger Altman.

Currency traders noticed too: The dollar fell on his initial remarks, though it recovered a bit after Altman steered him back on message.

“The stock market is a bit ahead of the real macroeconomic and financial news,” Roubini, a professor at NYU’s Stern School of Business and the chairman of consulting firm Roubini Global Economics, said in an interview with Bloomberg Television in London today. “We’ll have some major banks going belly up that will need to be taken over.”

[...]

Treasury Secretary Timothy Geithner’s new plan to remove toxic debt from financial companies won’t be enough for insolvent banks, he said.

ROUBINI, NOURIEL - NEW YORK UNIVERSITY - NEW YORK, NY 10013 12/23/04 - $500 Lieberman, Joe (D)

Jeff Getchell said...

Your argument is thought provoking but it is a tad bit mind boggling. You are making the assumption that Mr. "Inexperienced, Unqualified, Kenyan-born Illegal and Illegitimate Prednint Barack Crack Cocaine Hussein Pbama" will do not do anything right when it comes to the Iraq War. Also you repeat Obama's demand for "withdrawal now." Is this withdrawal NOW the reason why we will have troops in Iraq until the end of 2011? Dont believe me? Check the link: http://www.cnn.com/2009/POLITICS/02/27/iraq.dems/index.html

All your blog does is ramble on and on. There really is no evidence or backing. You are just assuming that Obama can not do anything right and you just insult him and call him childish nicknames.
J Getchell

8:54 AM, March 26, 2009

David Drake said...

Hi Jeff.

Yes, I am indeed making the presumption that The Kenyan will not do anything right. Exactly.

I know we're going to have troops in Iraq until 2011 and likely beyond that. That isn't exactly what The Kenyan said as a candidate, though, is it?

Why is it Liberals can diss and smear Republicans with impunity but when the same standard is applied to a Liberal, people like you recoil and whine?

I know you'll never return to answer these questions:

Did you vote for Obama in 2008?
Who did you vote for in 2004 and 2000?

Do you hold accountable all the Democrats who are on record from 1998-2000 - Bill Clinton, Pelosi, Hillary, Kerry et al - saying "Saddam Hussein is seeking WMDs and nuclear weapons." - Because they set the stage, Jeff. They set the intelligence standards.

Yes I do insult Pbama and call him names. The Left has never done anything like that, have they?

2:01 PM, March 26, 2009

Retention bonuses are to a great extent extortion, Frank argued. “I think there was an element, frankly, with some — not all of them — of almost extortion, where they said, 'We know what you need to know and we will quit if you don’t bribe us,'” Frank said.

He argued that there is a large pool of very talented people who have lost their jobs in the financial crisis and that AIG could replace the bonus recipients (some of whom are responsible for creating the firm's now-toxic assets) rather than bribe them with retention bonuses.

March 24, 2009 - New York Attorney General Andrew Cuomo told reporters on March 23 that nearly of half of the recipients of the largest AIG bonuses have already agreed to return the money. That is, nine of the top ten, and fifteen of the top twenty recipients are forfeiting the bonuses. So far that amounts to about $50 million. Others, many of whom live overseas outside of the New York State jurisdiction, have declined to return the money. Forty-seven percent of the bonuses were awarded to Americans.

[...]

March 23, 2009 - After days of bellowing and blaming, on Friday afternoon, March 20th, Treasury Secretary Timothy Geithner confirmed that his department pushed Senator Chris Dodd to write a loophole into the Economic Stimulus Plan that would pave the way for the AIG bonuses to be paid.

The Stimulus Bill included a cap on executive bonuses for companies that take federal bailout money. But tucked inside the bill – which was passed by a majority vote by Congress before anyone read it – was a provision that modified the cap so that it would only apply to future bonuses and would let slide the bonuses that had been contracted for already, including the AIG bonuses.

At first, the Obama administration declared that Geithner didn't learn of the bonuses until a week ago. After a timeline of events showing that in his previous position as president of the New York Federal Reserve, he knew of the bonuses last fall, the Treasury Secretary modified his statement in a CNN interview to say that he "learned of the full scale and scope of these specific" bonuses last week.

[...]

March 20, 2009 - [...] Late Wednesday Senator Chris Dodd acknowledged that, under pressure from the Treasury Department, he helped write a loophole into February's Economic Stimulus Plan – the plan that nobody read before signing – that allowed the bonuses to be paid. Now the apparent scramble is to determine, who in the administration knew about the pending AIG bonuses when the "loophole" was created, and of course, when did they know it?

Senate Charles Schumer (D-NY) told reporters, "If Mr. Liddy does nothing we will act and we will take this money back and return it to its rightful owners, the taxpayers," Schumer warned. "So for those of you who are getting these bonuses, be forewarned - you will not be getting to keep them."

Citizens Against Government Waste (CAGW) today named Sen. Charles Schumer (D-N.Y.) its May Porker of the Month for attempting to use the tax code to earmark a $2 billion subsidy for a commuter rail between Manhattan and the JFK airport. Sen. Schumer wants to take advantage of the New York Liberty Zone (NYLZ) tax credits, which were intended to stimulate the redevelopment of downtown Manhattan after 9/11, for a rail project that has been under consideration since well before 2001.

After a bit of counting, the Washington Examiner has found a suspected list of the top pork-getters in the Senate: Schumer (323), Murray (310) and Clinton (301) are the three senators whose names appear most frequently in the bill, followed by Specter, Cochran, Levin, Feinstein, Shelby, Lincoln, Stabenow and Menendez.

Clinton received 26 earmarks worth about $148.4 million total, most of which were also sought by Sen. Charles Schumer (D-N.Y.). Clinton and Schumer agreed several years ago to go after projects together, according to several sources.

What do failing banks and foreclosed houses have to do with race tracks? A lot, apparently, if you're Charles Schumer. The New York Senator added an earmark to the nation's $700 billion "rescue plan" that will extend current tax laws for race tracks that allow them to be considered the same as amusement parks in the eyes of the IRS.

[...]

The race track earmark wasn't in the House bill that got shot down last week, but was added by Senator Schumer to the 450-page bill[.]

Frank, the first openly gay member of Congress, recently gave an interview to a gay website, www.365gay.com, in which he took on a different foe. Asked about the Defense of Marriage Act -- which bans gay marriage -- Frank said he hopes the law is not appealed to the Supreme Court right now because Justice Antonin Scalia is a "homophobe" with too many allies on the court to risk a judicial challenge.

"I wouldn't want it to go to the United States Supreme Court now because that homophobe Antonin Scalia has too many votes on this current court," Frank said.

In a 2003 Texas case that overturned the nation's consensual sodomy laws, Scalia wrote a dissent, saying the majority's ruling represented "a massive disruption of the current social order."

Representative Barney Frank yesterday defended his use of the term "homophobe" to describe Antonin Scalia, the conservative Supreme Court justice who has ruled in favor of limiting legal protections for gays.

"What a 'homophobe' means is someone who has prejudice about gay people," Frank told WBZ radio, arguing that Scalia's judicial writing "makes it very clear that he's angry, frankly, about the existence of gay people."

The honeymoon is over, according to a national poll out today as President Obama’s job approval stumbles to about 50 percent over the lack of improvement with the crippled economy.

The sobering numbers come as the president backpedals from two prime-time gaffes - one comparing his bowling score to a Special Olympian and another awkwardly laughing about the economy, which prompted Steve Kroft of “60 Minutes” to ask “are you punch-drunk?”

Pollster John Zogby said his poll will show Americans split on the president’s performance. He said the score factors out to “about 50-50.”

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Some polls show Obama coasting with a 65 percent job approval, but not in Zogby’s tally.

“The numbers are going down,” Zogby told the Herald. “It’s not because of the gaffes, but a combination of high expectations and that things aren’t moving fast enough with the economy.”

Remember how all the news reporters jumped all over President Bush for his pronunciation of the word "nuclear?" They are just jumping all over Barry Obama for the inability to pronounce "Orion" right? What, you haven't heard about the New Moron President fumbling that one, REPEATEDLY? Hmmmm, wonder why?

You may read about President Obama's speech today on green energy, plugging a company called Orion Energy. Standing next to Orion's CEO, he praised the company for its groundbreaking work on consumer energy efficiency. Unfortunately, something went awry despite the teleprompter's best efforts:

All terrific press for Orion, except that Obama kept pronouncing the company’s name wrong, calling it OAR-ee-on.

From 2001-2004, Jackie Clegg Dodd served as an "outside" director of IPC Holdings, Ltd., a Bermuda-based company controlled by AIG. IPC, which provides property casualty catastrophe insurance coverage, was formed in 1993.

[...]

Clegg was compensated for her duties to the company, which was managed by a subsidiary of AIG. In 2003, according to a proxy statement, Clegg received $12,000 per year and an additional $1,000 for each Directors' and committee meeting she attended. Clegg served on the Audit and Investment committees during her final year on the board.

IPC paid millions each year to other AIG-related companies for administrative and other services. Clegg was a diligent director. In 2003, the proxy statement report, she attended more than 75% of board and committee meetings. This while she served as the managing partner of Clegg International Consultants, LLC, which she created in 2001, the year she joined the board of IPC. (See Dodd's public financial disclosure reports with the Senate from 2001-2004 here.)

Dodd is likely more familiar with the complicated workings of AIG than he was letting on last week. This week may provide him with another opportunity to refresh his recollections.

At the first AIG hearing March 18 here, a handful of CODEPINK women sat behind AIG CEO Edward Liddy, holding signs with messages including "Give Our Money Back," "Fire Geithner" and "AIG (arrow) JAIL."

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The six women, who arrived at 5 a.m. to get seats at the hearing, said they meant to send the message that Congress must hold the bankers accountable for bringing down the American financial system, that it must no longer bail them out with taxpayer money, and that it must stop swindling Americans by draining their pockets on two major wars. They also called for the firing of Treasury Secretary Geithner.

"Geithner is too close to Wall Street to look at this financial crisis through the eyes of Main Street," [said Medea Benjamin, CODEPINK co-founder].

President Barack Obama wagered significant political capital Sunday, signaling opposition to a highly popular congressional drive to slap a punitive 90 percent tax on bonuses to big earners at financial institutions already deeply in hock to taxpayers.

Obama defended his stance by saying the tax would be unconstitutional and that he would not "govern out of anger."

[ See, his Cultists are angry. Rabid-foaming-at-the-mouth, blood-dripping-out-of-their-ass Angry. They want "payback" and "governing out of anger." And Pbama doesn't appear willing to go that route for his Cultists. Bwa ha ha ha ha! - Drake ]

[...]

There was considerable political risk attached to Obama's implied rejection of the 90 percent tax measure. It raced through the House last week as lawmakers responded to a wave of anger over bonus payments to American International Group Inc. employees.

[...]

While questioning the legality and constitutionality of the House measure, Obama said he expected the Senate would produce a much different and more acceptable version of the bill — one he could sign.

The most memorable moment of the president's interview on "60 Minutes" Sunday night came when reporter Steve Kroft asked, "Are you punch drunk?"

[...]

Rich Masters of Qorvis Communications, who is a Democrat: "The interview was nearly 30 minutes long and the 'punch drunk' segment lasted about 30 seconds, I think it's ridiculous that 30 seconds would come to define an entire interview."

[...]

Marina Ein of Ein Communications, who leans right but has defended many a high-powered Democrat: "Humor is certain to make the laid-off workers, 401K reduced-retirees and Madoff-scammed feel much better! NOT! We don't need a comic-in-chief we need a commander-in-chief!"

United States-led coalition and Afghan troops killed five suspected militants during a raid in northern Afghanistan on Sunday, the coalition said in a statement. The local mayor offered a different version of the events, saying that his house had been targeted and that the dead included his cook and driver.

Two NATO-led soldiers were killed on Sunday in southern Afghanistan, NATO's International Security Assistance Force said.

ISAF said the deaths came during "a hostile incident." It didn't say what province the incident took place in and didn't disclose the troops' nationalities.

Four Canadian soldiers, only days away from returning home from Afghanistan, were killed and eight of their comrades were wounded shortly after dawn while participating in Canada's largest combat operation since the Korean War.