Home > Jay Bookman > Archives > 2008 > October > 06 > Entry

Wall Street excess: Symptom or cause?

By Jay Bookman | Monday, October 6, 2008, 03:10 PM

The Atlanta Journal-Constitution

I’ve usually thought of excessive corporate compensation as merely a symptom of larger problems in the corporate world. Among other things, it revealed a lack of proportion, an arrogance and an irresponsibility toward the shareholder, who is the supposed owner of the company. But the compensation numbers, while large in terms of pay, weren’t so large as to do serious damage to the company.

However, in hearings today before the House Oversight and Reform Committee, you heard a case that at Lehman Brothers, executive compensation may have been more than a mere symptom of excess; it may have contributed to the firm’s demise.

According to the New York Times coverage:

“Even as the investment bank Lehman Brothers pleaded for a federal bailout to save it from bankruptcy protection, it approved millions of dollars in bonuses for departing executives, a congressional committee was told Monday….

“One Lehman document among thousands reviewed by the House committee showed that four days before the bank filed for bankruptcy protection, Lehman’s compensation committee was asked to grant $20 million in ‘special payments’ for three executives who were leaving.”

That’s the excess-as-symptom argument: Twenty million in bonuses for people leaving the company? The sum was insignificant in terms of the company’s overall financial health, but it illustrates just how free and easy Lehman execs became with other people’s money. The fact that the bonuses were approved even as the company prepared to beg for a federal buyout from taxpayers only makes it more outrageous.

Now here’s the excess-as-cause argument:

“Another document showed that executives were warned in a January 2008 meeting that the company was facing liquidity problems. Yet the firm moved forward with capital outlays, including $5 billion in bonuses, $4 billion in shares (buybacks) and $750,000 in dividend payments between 2007 and the firm’s bankruptcy filing on Sept. 15.”

They knew they had liquidity issues, yet they paid out $5 billion in bonuses and another $4 billion in stock buybacks anyway? The truth is, those huge bonuses had become so engrained in the Wall Street culture that employees felt entitled to them regardless of how the company itself performed.

The Times made another important point when it reported that committee Republicans used the hearing to call for an investigation into Congress’ role in the scandal involving Fannie Mae and Freddie Mac.

“’The reason we haven’t scheduled hearings on these two institutions, and haven’t requested documents from either, is because their demise isn’t someone else’s fault, it’s ours, and we don’t want to own up to it,’ Rep. Christopher H. Shays, Republican of Connecticut, said.”

Shays is exactly right. There’s a lot of blame to go around in this mess, and nobody, including Congress, should be exempt from exposure. Congress absolutely should hold hearings into the problems at Fannie Mae and Freddie Mac, and if the finger points back at them, so be it. It won’t, but it should.

The Associated Press coverage of the hearing got a little more specific about the discussion of bonuses at Lehman, including the details of a suggestion from inside Lehman that maybe employees should forego the lucrative payouts.

The AP writes:

“That suggestion came from Lehman’s money management subsidiary, Neuberger Berman. (House Committee Chair Henry) Waxman quoted George H. Walker, President Bush’s cousin and a Lehman executive who oversaw some Neuberger Berman employees, as responding with a dismissive tone to the idea of going without bonuses.

‘Sorry team,” he wrote to the executive committee, according to Waxman. ‘I’m not sure what’s in the water at 605 Third Avenue today…. I’m embarrassed and I apologize.’”

You read that right: The idea of foregoing bonuses when the company was in bit of trouble was so clearly foolish and outlandish that it drove an embarrassed Walker to the point of having to apologize.

And you thought they had no shame.

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Comments

By AJC/DNC Management

October 6, 2008 4:30 PM | Link to this

“’The reason we haven’t scheduled hearings on these two institutions, and haven’t requested documents from either, is because their demise isn’t someone else’s fault, it’s ours, and we don’t want to own up to it,’ Rep. Christopher H. Shays, Republican of Connecticut, said.”

Shays ain’t referring to Republicans.

He’s being snide and sarcastic, anyone who saw him warn of the impending collapse before a panel of screaming democrat denialists knows full well who he’s talking about.

We’ll see the obstruction of justice come full play in the next few weeks and it won’t be Bushie doing it.

By Paul

October 6, 2008 4:34 PM | Link to this

Some might consider this good news:

Link: Lehman Bros CEO punched in face and knocked out cold

Maybe one of the first reforms should be regarding this entire corporate board structure. Regarding Congress not being innocent: I still call for any Congressman or Senator who received any contribution from any of these organizations, or their employees, to forward the money to the Treasury and have it go into a fund for victims of this travesty.

Can you imagine what a line like that would do at this week’s debate? Care to guess which candidate would deliver it? Let’s see, who got the contributions…

By TN Gelding

October 6, 2008 4:36 PM | Link to this

It’s been like that since I’ve been following the markets. I’ve never understood how they could get away with outlandish stock otions as well that dilute the value of the company. Also the way a small number of the in-crowd serving on multiple boards has always struck me as being wrong. They’d be better off picking people off the street, at least they wouldn’t have to be compensated so excessively.

The key here is not to panic. If we do it will only make matters worse. It’s too late to sell, have to ride it out now. The afternoon rally could indicate the bottom was reached. Let’s hope so.

Why in the world would anyone flee to the safety of U.S. treasuries? Don’t they realize the dire staits the fed is in?

Are you better off than you were 7 years, 8 months and 16 days ago?

By citizen

October 6, 2008 4:36 PM | Link to this

Mr. Bookman, do an expose’ on the unregulated financial vehicle that Lehmen Bros., AIG and Bear Sterns was hawing to unsuspecting victims called ‘credit default swaps’. This is the criminality issue that has caused this global financial meltdown.

By Joey

October 6, 2008 4:37 PM | Link to this

Damn Jay, you are such a Toady for the Democrats.

Where oh where did that “fair-minded” Jay of last week go? He did not go anywhere. He never existed. It was just a ploy.

By Mrs. Godzilla

October 6, 2008 4:40 PM | Link to this

Oh, so that’s where the difference between the 111 bllion value of the mortgages in default and the 840 billion bail out package is going…..

By getalife

October 6, 2008 4:40 PM | Link to this

Paul,

Nice link .

“CBS:

Days from becoming the largest bankruptcy in U.S. history, Lehman Brothers steered millions to departing executives even while pleading for a federal rescue, Congress was told Monday.

“Congress” was told Monday?

“Congress” is freaking gone, dude.

“Congress” handed out the $700 billion and skipped town on Friday, leaving a skeleton crew in place to find this s** out on Monday.”

Geez.

By Dusty

October 6, 2008 4:42 PM | Link to this

OK OK..WE DO NOT LIKE BIG MONEY FOR EXECS IN BIG COMPANIES.

Are we going to beat this mule to death?

Will the pay at WalMart be the next subject in ten minutes?

Like I said: No bonus for the big boss!!! There. Got it!

By RealityKing

October 6, 2008 4:43 PM | Link to this

Who would have thought that cheap affordable housing would cause such a big financial problem?? Oh yeah…, John McCain.

Below is part of McCain’s speech in 2005 on the Senate floor. Too bad, they did not listen to him.

“For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac—known as Government-sponsored entities or GSEs—and the sheer magnitude of these companies and the role they play in the housing market.”

“I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.”

Of course, in return for “looking the other way,” roughly 340 members of Congress accepted monetary contributions from Fannie/Freddie employees over a nine-year period. And although Obama was in the Senate for only a fraction of those nine years, He ranks No. 3 in such contributions.

In other words, Obama has politically profited off our current economic crisis.

By Bud Wiser

October 6, 2008 4:43 PM | Link to this

So Jay, Rep. Shays may have hit the nail squarely on the head when he said “The reason we haven’t scheduled hearings on these two institutions(Fannie Mae and Freddie Mac),* and haven’t requested documents from either, is because their demise isn’t someone else’s fault, it’s ours, and we don’t want to own up to it,’

We’ve already seen Barney Franks’ reaction last week when Bill O’Reilly drilled him a new one (no pun intended). Frank resorted to the usual liberal reaction by calling O’Reilly “stupid”, among other things, became extremely agitated when confronted with factual participation by him that he refused to be held accountable for, and just became louder and more insulting.

Is this the kind of reaction one expects from our officials when they are allowed to conduct their own self investigation? In the case of Lispering Barney, if this is indicative of congressional reaction, then it will serve no point. On the other hand, get the Justice Department involved, look for payoffs from Fannie and Freddie to congressional members, malfeasance of duty in office, and get legal indictments. Sick the lawyers on them, and I’ll wager you’ll see committee resignations en masse, but I’d rather see prosecutions of those responsible.

Did I forget to mention that next to none other than Chris Dodd D-Conn, chair of the Senate Banking Committee and leading beneficiary of ‘donations’ from Fannie and Freddie, that The Token One, Barack Obama is second in that category?

Since the highly publicized ‘character doesn’t matter’ stance the Democrats took to try to save Bill Clinton from himself, things have pretty much spiraled downhill in not only our expectations of performance in duty by our elected representatives, but in their own actions as well.

Character does matter, and we see it yet again, in the total lack of it from Barney Frank, and in the outright refusal of Obama to acknowledge any of his private connections such as Ayers, Wright, Resko, etc etc, as if they don’t matter.

“Never heard any inflammatory rhetoric from Wright” - don’t buy it.

Ayers was “just a guy who lived down the street and he was a teacher” - bull s—-, bull——, and more bull——.

Resko was ‘a neighbor who was just being friendly” - yeah, I buy that one too….NOT.

Franklin Raines ‘is not an economic advisor for me’, but no denial in July when that fact was first released, but only a loud denial when McCain put it up in a political ad.

No, just spin, spin, and more spin, sprinkled heavily with more Democratic BS, trying to turn the subject away from the man himself and his associations.

Character DOES matter, and Obama comes up far, far short. There is little doubt about the character of John McCain, and that is why he will ultimately win this election. If anyone caught any of his campaign rally speech today in Albuquerque, indeed the October Surprise is just now beginning to descend upon The Token One, and it ain’t Halloween Candy, my friends.

Obama/Biden - ‘08 making it easy to be stupid, and to keep your head in the sand. Of course, sand isn’t where most of you Obama supporters have your head stuck up in.

By Mr Snarky

October 6, 2008 4:46 PM | Link to this

The only thing that would have made this a more complete disaster is if we had privatized Social Security like the GOP wanted to do.

By Taxpayer

October 6, 2008 4:51 PM | Link to this

I’m not surprised, Jay. The mentality of these people is indescribable within the confines of socially acceptable or even currently existing descriptors. These are the very people that make the Chavezes of the world possible and McCain has struggled his entire life to be one of them.

By Class of '98

October 6, 2008 4:56 PM | Link to this

Jay, maybe the Dow is plummeting because investors see that Karl Marx, uhh… I mean Barack Obama is leading in the polls.

Obama is not a friend of capitalism, if you haven’t noticed.

By AJC/DNC Management

October 6, 2008 4:58 PM | Link to this

O.K. so the democrats position now, after stating their position that there was nothing wrong with Fannie Mac 4 years ago, is to blame all of this on “executive pay.”

That’s nice but what happen to the other 950 billion dollars, hahaha?

Are these democrats the people we want fixing the problem?

They were wrong then, they are wrong now.

By getalife

October 6, 2008 5:03 PM | Link to this

Funny watching the gop trying to distract away from the economy.

These hearings show how broken and corrupt our government really is.

Pitiful.

By N-GA

October 6, 2008 5:04 PM | Link to this

Class of ‘98,

Your comment at 4:56 was either snarky, or intended to show everyone how clueless you are about the markets. I would guess both.

By Class of '98

October 6, 2008 5:16 PM | Link to this

We’ll see who is clueless.

Humanity spent the last 80 years learning that socialism doesn’t work.

It’s the clueless lefties in the United States that are determined to learn that lesson the hard way.

By AmVet

October 6, 2008 5:19 PM | Link to this

The Texas scumbag (NO, not that one!) posits what all the good little Rovebots and “real” “conservatives” fear:

Former House Majority Leader Tom DeLay believes that conservative Republicans will face a difficult challenge if John McCain is elected president.

“His stance on global warming, immigration, campaign finance, affirmative action — it’s just a whole list of things that is not going to appeal to conservative Republicans,” the Texas Republican told PolitickerCA.com.

Thank (your favorite deity here)!

“Mr. Sleazeball Politics” Delay, that is EXACTLY why, unlike your other neo-con toadies would be now, he is not 25 points behind Obama…

TW’s right.

Where are the real Republicans?

By Greg Mendel

October 6, 2008 5:20 PM | Link to this

By golly, we’ve had a Republican president since 2000, and, gosh darn it, a solid hold on congress, too. Those gosh darn Democrats got a majority in 2006, but us mavericks still have enough votes to block the Dems and keep our president’s veto intact, also.

So, in other doggone words, anybody who thinks Republicans had anything to do with this super-duper mess we’re in, just can’t tell responsibility from a moose. It’s all the Democrats’ fault, darn tootin’!

A big shout-out to ya —

— The Thrilla from Wasilla

By getalife

October 6, 2008 5:21 PM | Link to this

McCain does nothing as supporter calls Obama a “terrorist”

Time for the Secret Service to arrest these lunatics.

By AmVet

October 6, 2008 5:25 PM | Link to this

Class, do you know why capitalism will never fail?

Because socialism will always rescue it.

Look at these faux conservatives and spineless Democrats giving up all pretenses of the corporate welfare state they helped create.

They all caved into this “bailout” because Bush/McCain/Obama/Pelosi/reid said the world would come to an end if they didn’t railroad it through immediately.

Instead of bailing out prudent institutions who are credit worthy, they bailed out the very opposite - the speculators and crooks.

And guess who gets to pick up the tab. Again.

By N-GA

October 6, 2008 5:27 PM | Link to this

(H.S.) Class of ‘98,

We don’t need to wait. You’ve already proven yourself clueless by not having a clue about socialism. Obama is not a socialist.

I don’t think you really understand leftist views from rightist views.

For example, did you know there are conservative Democrats? I didn’t think you did. But you didn’t come here to learn, did you?

By AJC/DNC Management

October 6, 2008 5:29 PM | Link to this

al-Gitmo: That’s better than what some democrats call him.

By TN Gelding

October 6, 2008 5:33 PM | Link to this

Class of ‘98

October 6, 2008 4:56 PM

Indoctrinate yourself

And more

By Dawggy Style

October 6, 2008 5:34 PM | Link to this

Bud Wiser, RealityKing & AJC/DNC Management - Please keep up the educational process for Jay’s flunkies! I know it is extremely frustrating trying to keep these liberals on point, but you all are doing yeoman work! Obama and our Congressional “leaders” (Pelosi, Reid, Frank, et al.) can spin and duck all they want, but the American public sees what’s going on. As for the often quoted, mind-controlling polls leading up to November 4th, I recall that Al Gore and John Kerry both were President at one time in the not too distant past, ha! (Educational note for liberals: Gore and Kerry both lost to W).

By AmVet

October 6, 2008 5:34 PM | Link to this

In his essay Faith-Based Economy, Tom Piatak takes on the revolting hypocrisy of “federal efforts to prop up a financial sector in trouble as a result of its own avarice.”

“It is fitting that one of the signal events of what will likely become the second Bush recession has been the Federal Reserve’s propping up of the Wall Street firm Bear Stearns.

For years, Wall Street has opposed any such bailouts of old-line manufacturing firms being swept away by the tsunami of free trade, and has applauded as employers have cut back their workforces, the benefits they provide, and even their presence in the United States. The Wall Street mantra has been, layoffs good, outsourcing better.

But when the time comes for Wall Street speculators to experience the “magic of the marketplace,” the tune has been different, with Treasury Secretary Henry Paulson saying Sunday that “I really support the Fed’s work here.” Of course, the Federal Reserve’s bailout of Bear Stearns, followed quickly by JP Morgan’s acquisition of the firm, comes hard on the heels of many other federal efforts to prop up a financial sector in trouble as a result of its own avarice, including the federal bailouts for foolish subprime mortgages contained in Bush’s stimulus package.”

By AmVet

October 6, 2008 5:50 PM | Link to this

Dawggy, ‘tis true polls can be fickle.

What aren’t, are facts.

As in the latest election.

You remember it, I’m sure.

The one where the GOP made history by LOSING EVERY SINGLE CONTESTED SEAT AND TAKING NARY A ONE in the Congressional elections.

36 to ZERO.

OUCH!!!

A history making, EPIC slaughter never seen in American politics before.

I predict things wont be as bad this time for the fake conservatives. Although make no mistake about it, with McCain as the nominee, the neo-cons have already lost.

The best case scenario is if they lose a dozen or so seats in Congress and several governorships.

And that’s IF the RINO wins.

By sunshine and thunder

October 6, 2008 5:50 PM | Link to this

And after we take on the EEEEVIL, greedy Wall Streeters will someone please shake down all those baseball players so I won’t have to pay 6 bucks for a beer at the Ted?

Cap their salaries and make ‘em PAY!

By getalife

October 6, 2008 5:54 PM | Link to this

Paulson recruited his 35 year old protege VP from Goldman and gave him 700 billion to hand out.

The conflict of interest is astounding. You will never see a penny of that money back like the S&L bailout.

By RW-(the original)

October 6, 2008 5:56 PM | Link to this

It won’t, but it should

When you say that is it because you think Congress is truly blameless or is because you’re asking Congress to investigate itself?

I believe Congress and especially Democrats in Congress are deeply entangled in causing this, so maybe this is a hearing that needs to be farmed out. The Democrats have time and again been found figuratively in bed with executives at Fannie and Freddie and in Barney Frank’s case literally.

By TN Gelding

October 6, 2008 6:12 PM | Link to this

Dawggy Style

October 6, 2008 5:34 PM

Yes, it’s early, but this time we’ve got a fighter willing to stand up to the attacks. Remember “Gorism” and then think about the lies we’ve heard since 09/11. And Kerry was attacked for killig VC while the Swift Boat Veterans for Truth, by their own admission, were trying to avoid contact with the enemy.

By Class of '98

October 6, 2008 6:13 PM | Link to this

N-GA,

If you want to have faith in income redistribution and government-controlled economies, that is your right. This is, at least for now, a free country.

I would recommend you read “Atlas Shrugged”. It might change your viewpoint on a few things.

By N-GA

October 6, 2008 6:25 PM | Link to this

Class of ‘98,

I read Atlas Shrugged (and The Fountainhead) before you were born.

So far your totally free market economy is a joke. It needs oversight.

Obama doesn’t have any plans to put the government in control of business. But our government should control the economy to the extent that it doesn’t succeed at the expense of Americans (you know, like moving HQ offshore to avoid taxes).

By @@

October 6, 2008 6:37 PM | Link to this

It’s a symptom of human failings jay.

From the bottom up…..from the top down……

does it really matter in the end?

Interesting poll with a little added flavor:

Congress was front and center in the national news last week and the American people were far from impressed. If they could vote to keep or replace the entire Congress, 59% of voters would like to throw them all out and start over again.

When the Constitution was written, the nation’s founders expected that there would be a 50% turnover in the House of Representatives every election cycle. That was the experience they witnessed in state legislatures at the time (and most of the state legislatures offered just one-year terms). For well over 100 years after the Constitution was adopted, the turnover averaged in the 50% range as expected.

In the twentieth century, turnover began to decline. As power and prestige flowed to Washington during the New Deal era, fewer and fewer Members of Congress wanted to leave. In 1968, Congressional turnover fell to single digits for the first time ever and it has remained very low ever since.

The New Deal Roosevelt had promised the American people began to take shape immediately after his inauguration in March 1933. Based on the assumption that the power of the federal government was needed to get the country out of the depression, the first days of Roosevelt’s administration saw the passage of banking reform laws, emergency relief programs, work relief programs, and agricultural programs.

By 1939, the New Deal had run its course. In the short term, New Deal programs helped improve the lives of people suffering from the events of the depression. In the long run, New Deal programs set a precedent for the federal government to play a key role in the economic and social affairs of the nation.

While unhappiness with Congress cuts across partisan and demographic lines, Democrats are a bit less unhappy than other voters. Seventy-four percent (74%) of Republicans would vote to throw out the entire Congress as would 62% of unaffiliated voters. Only 43% of Democrats go along.

The majority of democrats like The Raw Deal. They’re too stoopid to know better.

OBlahMa awaits them with open arms.

By Paul

October 6, 2008 6:38 PM | Link to this

[[I read Atlas Shrugged (and The Fountainhead) before you were born. So far your totally free market economy is a joke. It needs oversight.]]

Doesn’t get any better than that.

Pleasant evening, all -

By Class of '98

October 6, 2008 6:51 PM | Link to this

I disagree. There should be child labor laws, and that’s it. The free market can solve anything.

This mortgage crises was caused by liberals putting pressure on lending institutions to give loans to those that couldn’t afford to pay them back.

Ex-Sallie Mae chief Raines is a good friend of Obama, and Obama has received more contributions from Sallie Mae than any other Senator except Barney Frank, in only 2 years, no less.

Yet brain-dead liberals are still convinced this mess is caused by Republicans.

If true laissez-faire capitalism was in place, these loans would never have been made because they were too risky.

As always, the answer is LESS government regulation, not more.

By RW-(the original)

October 6, 2008 6:56 PM | Link to this

This is too rich.

“You don’t get introduced by John Glenn every day,” Bruce Springsteen said, breaking into an impromptu version of Mr. Spaceman.

The Ohio State University campus was in a festive mood yesterday as the rock legend performed a seven-song, solo acoustic set on behalf of Democratic presidential candidate Barack Obama. The free event, one of several Springsteen is doing for the Illinois senator, highlighted Ohio’s early-voting law.

There were four Democrats and one Republican amongst the “Keating 5” Two of them were found to have done nothing wrong other than showing bad judgment. Those two were Jojn McCain and John Glenn. Yesterday Obama’s people were saying that McCain’s involvement in Keating was the crime of the century and at the very same time had John Glenn acting as an Obama campaign surrogate.

Here’s what HotAir had to say.

Obama, on the other hand, has never fought anyone for reform, and the use of John Glenn as a surrogate makes Team Obama especially hypocritical in raising the Keating scandal. If Glenn is clean, then so is McCain. If McCain is tarnished, then so is Glenn. Obviously, Glenn helps Obama in Ohio, so Obama has no real complaint over the Keating 5 scandal that outweighs his desire to win the election. Like so much of Obama’s reform rhetoric, his faux outrage over the Keating 5 scandal shows him as nothing more than a poseur

By Taxpayer

October 6, 2008 6:57 PM | Link to this

We don’t have a free market, we never have and we never will.

By Taxpayer

October 6, 2008 7:05 PM | Link to this

Look at that. Class of 98 is imposing constraints on his most valued of all possessions — the Free Market — before he even finishes stating his belief. The next thing you know, he’ll be proclaiming that no humans can be traded or that a single base currency shall be used to establish the value of all currencies and that base currency shall be pegged to the free market value of 99.999% pure gold as defined per ASTM specifications. Heck, what’s so free market about that.

By getalife

October 6, 2008 7:08 PM | Link to this

Your free market will cost us trillions junior.

Geez.

By G

October 6, 2008 7:15 PM | Link to this

Debt binges like the one the Republicans have foisted on the U.S. always end badly.

At least the good news this time is that most Americans realize precisely who is to blame.

Maybe they’ll remember it in the future when the next amiable dunce like Reagan or Bush comes along.

Obama/Biden ‘08

By AmVet

October 6, 2008 7:20 PM | Link to this

@@, good stuff.

Some years ago, I thought it was the Republicans who marched more lockstep with their party, but to my surprise, I learned it was actually the Democrats.

One of numerous reasons I left them.

And yet another instance where I, unlike the hyper-partisans here, am VERY different as they simply cannot admit making any mistakes or errors in judgment.

Hey wait! That includes our imperious president!

But as for the ridiculous penchant of sending these same clowns back to DC over and over and over again, a big part of the reason is that due to gerrymandering by the party in power, most Congressional districts are essentially locked up by one party or the other.

Look at what has happened here in Georgia over the past ten years as evidence.

There may be forty or so that are actually in play…

BTW, ANYONE who tries with a straight face to say that the “free market” ENORMOUSLY culpable for this clusterf@ck is simply and totally out of touch with reality.

And the sad joke is that they are going to get to pay for it. Literally and figuratively.

As will their children. And grandchildren.

By G

October 6, 2008 7:29 PM | Link to this

McCain sold out to Big Oil for the same reason he sold out the Veterans.

McCain loves to brag about his support of the troops, but McCain has a 26 year history of voting against some of the most important pieces of legislation that supports our troops.

Veteran’s organizations have never ranked McCain higher than a “C” on his voting record for veterans issues, and over the past 7 years McCain has ranked a “D”.

McCain has been a hypocrite on a host of issues, while claiming to be a maverick, and the main stream media allows McCain to get away with the lies because they are cowed by McCain’s status as a former POW.

Obama/Biden ‘08

By Mike

October 6, 2008 8:05 PM | Link to this

Can anyone with any intellectual honesty challenge the fact the the absolute root cause of the current financial crisis is people who took on mortgages and didn’t pay them.

The “cause” of the crisis is driving down the road with you every day.

If the mortgages were paid, there would be no capital crisis requiring a government “bailout”.

By AJC/DNC Management

October 6, 2008 8:10 PM | Link to this

Ex-generals cry foul over pro-Obama video- “It’s not only misleading, it was an interview about what the next president was going to have to deal with,” Dayan told The Jerusalem Post, “and to know that they used this interview and took [only] five seconds [of it], and put me in a list of people praising Barack Obama…Jpost

I’m Barry Oblahma and I faked that message, bwa.

By HIllbilly Deluxe

October 6, 2008 8:17 PM | Link to this

We’re in a hell of a mess but this is just round one. As soon as the election is over there will be more people hat in hand looking to get bailed out, regardless of which candidate is elected. This is one time it would be nice to have a parlimentary system where we could abolish these clowns and start over.

By AJC/DNC Management

October 6, 2008 8:19 PM | Link to this

Making her first appearance in the Bay area, Palin hosted a “Road to Victory” rally. A crowd of as many as 10,000 greeted the Alaska governor. “The phoniest claim in a campaign that has been full of them is that Barack Obama is going to cut your taxes,” Palin told the crowd. “He’s voted 94 times to raise taxes, even on middle class Americans.”-13News

I’m Barry Oblahma and I approve this message, uh, no I don’t!

Or do I?

By AJC/DNC Management

October 6, 2008 8:24 PM | Link to this

Barack Obama whined that he is refusing to let the “usual political shenanigans and scare tactics” distract from the issues — even as his campaign is making a major push to publicize John McCain’s link to the savings and loan scandal two decades ago.-WSJ.

I know, I know, that was racist.

By AmVet

October 6, 2008 8:30 PM | Link to this

Wow.

Chicago baseball.

A combined one and six.

And out.

Pathetic. Like the GOP in the 2006 elections.

In the last combined190 years, Chicago teams have won one World Series.

By Just Nasty and Mean

October 6, 2008 8:42 PM | Link to this

We can just forget about Lehman since no taxpayer money went to them.

However, we should NOT forget about the genesis of ALL of this crap—Barney Frank, the toothless flamer whose lover was a chief exec.and a key post to influence bad loans @ Fannie Mae. Every single attempt—by Congress AND CLINTON to bring attention to Fannie and this looming disaster was met with squeals from Barney Frank and the Democrats sycophants—including the black caucus who called it a “lynching” of the CEO that made cooked the books to make $90m in 6 years—and left under pressure. He was the “lead” on Obama’s VP selection committee and remains a financial adviser and friend to Obama.

*If you like the Fannie Mae mess, then you are going to LOVE Obla-bla-ma for president. *

*Will SOMEONE ask Bookman why he or the mainstream media hasn’t had the cohunes—or even the sheer honesty— to come clean with the American people that Barney Frank and a daisy chain of Democrats F’ed-up Fannie Mae and caused this whole avalanche. *

Come on Bookman. Grow a pair!!

By TN Gelding

October 6, 2008 8:48 PM | Link to this

AJC/DNC Management

October 6, 2008 8:19 PM

He will, but he shouldn’t.

He’s not going to take the abuse that Gore and Kerry did.

By Frederick Douglass

October 6, 2008 8:50 PM | Link to this

Todd Palin finally spoke a few days ago, now I can see why he’s been so silent, to call him inarticulate would be kind. Imagine the high level of discussions around their dinner table, a lot of ughs, and ums. McCain and Sarah really need to start a dialogue on literacy, and drop the attack ads.

By AJC/DNC Management

October 6, 2008 8:54 PM | Link to this

Gosh, I wonder what team DimWet is cheering for this year, will we have to wait until after the World Series to find out?

And the proper way to look at this, Chicago put two teams into the post season this year, one of them even after losing two All Star players, while Atlanta, well, whatever.

Wanna talk football?

By BT fanh

October 6, 2008 8:55 PM | Link to this

The Clinton Administration(loans to unqualified minorities), Barney Franks and his boyfriend at Freddie Mae, plus Congress down vote of Bush`s Regulatory of Wall Street in 2003 caused this massive sell down. I made a BAD vote for Clinton, he seek the minority vote and was successful until they realized he used them. Bush should have fought stronger for regulatory of Fannie Mae and Freddie Mac. Congress lived off their desires including Barrack O Bama.($126,000).We are a country in threshold of “Fall of Roman Empire”, read the book, you will be amazed at the similarity.

By TN Gelding

October 6, 2008 8:55 PM | Link to this

Frederick Douglass

October 6, 2008 8:50 PM

Maybe he’s just being uncooperative too, but I doubt it. The dittoheads are lapping it up, tho.

By AmVet

October 6, 2008 9:09 PM | Link to this

Anduhng, is there employment to be had in this country as a professional crybaby?

I don’t know of any, but you would be perfect!!

But the closest thing I can think of is that you see if you can get paid to dress in a Burqa and be one of those professional criers at one of the terrorist funerals.

Ah lal lal lal lal ial al lal lal!

Again, you’d be perfect!

By Dawggy Style

October 6, 2008 9:24 PM | Link to this

AmVet,

Good point about the 2006 election … definitely not the best of times for the GOP! Frankly (not Barney), I’d give up 50 more Congressional seats to keep Obama out of the White House - Congress keeps proving over and over again that they have no clue, no guts, no credibility, and certainly no glory! At least George W. appointed 2 justices to the Supreme Court during his “Kerry” term.

As for the quick demise of the Chicago baseball teams, perhaps the Cubs and White Sox are just setting the stage for Obama’s fall from grace over the next four weeks? It truly would be a long, cold winter in Illinois (and Hollywood, NYC and the Middle East for that matter, but I digress)!

By AJC/DNC Management

October 6, 2008 9:30 PM | Link to this

Ah lal lal lal lal ial al lal lal!

Yeesh.

~~~~~

Rep. Barney Frank said Monday that Republican criticism of Democrats over the nation’s housing crisis is a veiled attack on the poor that’s racially motivated.

House Minority Leader John Boehner of Ohio called Frank’s remarks “a lame, desperate attempt to divert Americans’ attention away from the Democratic party’s obstruction of reforms that would have reined in Fannie Mae and Freddie Mac and helped our nation avoid this economic crisis.”

“Congressman Frank should retract his ridiculous statements and start taking responsibility for the role he and other top Democrats played in putting Main Street Americans in this mess,” Boehner said. - Breitbart

The way I see it, when a pinkkko has no facts or other defense, they trot out racism, i.e. Cynthia Tucker.

Which means that the more Americans learn of this mortgage crisis, the more that the libs will cry racism.

By laidback and lucky

October 6, 2008 9:39 PM | Link to this

You know it just goes to show you!

By @@

October 6, 2008 9:52 PM | Link to this

Dick Morris just mentioned this on H&C.

$100,000,000 dollars misdirected?

CAC translated Mr. Ayers’s radicalism into practice. Instead of funding schools directly, it required schools to affiliate with “external partners,” which actually got the money. Proposals from groups focused on math/science achievement were turned down. Instead CAC disbursed money through various far-left community organizers, such as the Association of Community Organizations for Reform Now (or Acorn).

Mr. Obama once conducted “leadership training” seminars with Acorn, and Acorn members also served as volunteers in Mr. Obama’s early campaigns. External partners like the South Shore African Village Collaborative and the Dual Language Exchange focused more on political consciousness, Afrocentricity and bilingualism than traditional education. CAC’s in-house evaluators comprehensively studied the effects of its grants on the test scores of Chicago public-school students. They found no evidence of educational improvement.

Let me understand this…..Morris said Ayers put OBlahMa in charge of distributing the grant money.

So much for OBlahMa’s improving education.

What about the kids dumazz?

And you dems want this guy for president????

Unbelievably irresponsible! Disgusting! Unforgivable!

By Frederick Douglass

October 6, 2008 10:00 PM | Link to this

Maybe Michelle will start stealing and using drugs from a charity, or maybe Barack will desert her for a mobbed up beer tycoon’s daughter before the election. Hey maybe she could somehow become an invalid, and Obama could kick her to the curb for Beyonce’, or Halle Berry——-I wonder if they have a 100 mil though? Maybe the Keating 5 will do a reunion tour, and ask Obama to sing lead. Maybe Sarah Palin will stop being Jeffrette Bodine, and get a brain inserted into that empty cavity between her ears. Lawdy, lawdy, the maybes are many.

By laidback and lucky

October 6, 2008 10:12 PM | Link to this

Honestly I think Sarah has more brains than you think. I honestly think she could lead us much better than the out of touch oil barons that we have in office now. As for Oblahma if he did kick the old lady to the curb, he would probably go after Madonna or Paris which ever is available to help his career. After he loses the election, he will probably open a chain of Muslim all you can eat buffets.

By Frederick Douglass

October 6, 2008 10:24 PM | Link to this

Laidback and lucky, tell me what and where you’re drinking, sounds like you could use a designated driver, and a shrink dude.

By TN Gelding

October 6, 2008 10:28 PM | Link to this

Frederick Douglass

October 6, 2008 10:00 PM

Great stuff! But a publicity-seeking senator and celebrity ex-POW wouldn’t do any of those things would he? Nah, it would be against his family values. The Reagans kicked him to the curb when he dumped his first wife, how was he resurrected?

By pointed

October 6, 2008 11:29 PM | Link to this

Greg Mendel @ 5:20, that was hilarious!

To the knuckle dragging wingnuts posting tonight, I know you’ll come back to reality eventually. Probably once President Obama has made this a great country to live in once again.

Obama/Biden 08!

By joe patin

October 7, 2008 12:31 AM | Link to this

Want to talk about terrorism and treason? There isn’t a more clear picture of what these words mean than the actions of what these greedy b@stards have done, and continue to do under the guise of pseudo-recompense and world-saving economic bailout.

They have the audacity to plunder the corporations they are hired to oversee, along with the life-savings of millions of common people who actually toil for a living, and then they whine and grovel - as if they had no idea what was going on - so that we can pay their way out of their nightmarish situation.

Absurd! There is no way I would ever condone such an action.

What they really deserve is to be drawn and quartered, or in the very least a life sentence in an extremely dangerous and dismal prison. With no hope for parole.

They knew exactly what they were doing - from the White House down to Wall Street - and should pay dearly for it. With blood, misery and gnashing of teeth.

America has been run by silk-laden criminals for too long, and we are tired of it!

By Analchord

October 7, 2008 5:28 AM | Link to this

With the credit crisis, the bailout, the market correction, and a possible severe recession, there is more than a little pathos to watch Palin’s dog-and-pony show about Obama’s terrorism connections. I’m trying to imagine the Nixon/Kennedy debate dissolving into finger pointing and accusations of communist connections. America wouldn’t have stood for it.

You’re a commie pinko liberal. You’re a fascist tyrant! Oh Yeah? You’re an assassin. You’re a traitor. You’re a terrorist. You are. YOU ARE. YOU. YOU. YOU YOU

Pathos is not pretty. (but Paladin 08 is).

Paladin 08: Have bun (in oven). Will shovel.

By Williebkind

October 7, 2008 8:23 AM | Link to this

Character does matter! However, the media will go after a candidate because of religion, party affiliation, incidents that happen in their youth, or anything that will kill the messenger. Thats why we have the same “o” same “o”. Special interests does not care about Amercia but only their special interest. The criteria for a candidate is so narrow that the average American can not run (nor do they want to) for President or congress. We keep getting the same carbon copies selected by the only two parties. Is so refresing to see Sara Palin—even though the wackos are sending dozens of so called reporters to dig up her past. They are just like JAY. Party before anything, lies acceptable as truths, and absolutes are only if it fits the agenda. I say elect someone who does not have all this association and maybe a high school graduate. Hey the worst could happen is we be at war and go broke.

By gadem

October 7, 2008 9:04 AM | Link to this

Shawny, do you even know what the CRA is? Stop regurgitating talking points from talk radio and investigate and read for yourself…stop being a sheep! Stop being like Drunken Andy..

By Scott

October 7, 2008 9:45 AM | Link to this

The whole subprime mess that started this can be traced back to “red lining” policies that were struck down by Democrats seeking to put unqualified buyers into homes that they could not afford, because it was FAIR…Gimme a break, and Barney Frank’s in the middle of the Fannie Mae mess (his “boyfriend” ran Fannie Mae)…

By gadem

October 7, 2008 10:00 AM | Link to this

Scott, banks did not change their lending requirements because of the CRA…no matter how many times you repeat it, it does not become fact….wait. Say it one more time…nope it is still false. The CRA basically states that banks can not not loan money to those in the community. They still have to qualify based on income and credit. Now when people started doing loans based on stated income vs verified income…that was a problem.

By Jack

October 7, 2008 10:43 AM | Link to this

No more welfare for the rich!! No more socialism for executives! A vote for a republican is WORSE than a vote for Osama bin Laden!!! They have destroyed our nation FAR WORSE than any terrorist could!!!

By Jack

October 7, 2008 10:46 AM | Link to this

Democrats were not in power the last 8 years! Keep blaming democrats for everything that happened on republicans watch, you LIARS!!! No one believes your lying a*******e$ anymore! Republicans will be thrown on the scrap heap of history in this election for good reason! Their lies don’t work any more. They are morally bankrupt and have bankrupted our nation! God dam- republicans to hell!!!

By Skeptic Tank

October 7, 2008 11:31 AM | Link to this

I will be crying 3 foreclosure sales today on the courthouse steps in a rural Georgia county. This week, there were 28 pages of foreclosure notices in the local county newspaper. Many are builders or developers who ended up with the short end of the stick in a declining market. MOST are middle-income families who overbought, thinking that times would always be improving, and never considering that the opposite may ring true.

Loan defaults of the impoverished caused this mess? Are you kidding? Are you even paying attention?

By SaveOurRepublic

October 7, 2008 11:41 AM | Link to this

AmVet, good insight on the hypocrisy of the slimeballs of Wall $treet & their demanding taxpayer bailout/Corporate Welfare for their ponzi scheme, but pushing for the destruction of the U.S. manufacturing base via NAFTA, CAFTA, GATT, mass outsourcing & insourcing (of H-1B workers). The Neocons & phoney “populist” Demoncrats continue their collective middle finger to the American working class. “Juan McAmnasty” & “Bacrock Obumma” are two sides of the same exact Globalist Elite controlled coin!

By norman ravitch

October 7, 2008 11:56 AM | Link to this

Capitalism is a system which assumes that individual greed will somehow lead to collective welfare. How could this be true? — unless we believe that any planning would be worse.

Historically capitalism seemed better than government sponsored economic measures because those economic measures were not based on real knowledge of the economy. But now I think it would be ridiculous to hold that non-planning is better than planning.

By norman ravitch

October 7, 2008 11:56 AM | Link to this

Capitalism is a system which assumes that individual greed will somehow lead to collective welfare. How could this be true? — unless we believe that any planning would be worse.

Historically capitalism seemed better than government sponsored economic measures because those economic measures were not based on real knowledge of the economy. But now I think it would be ridiculous to hold that non-planning is better than planning.

By yankee

October 7, 2008 12:03 PM | Link to this

Looks like the Dems forced the banks in Iceland to loan to “those people” too.

By BS Aplenty

October 7, 2008 12:46 PM | Link to this

Why Barack Obama Should Not be President

Barack Obama attended the Trinity United Church of Christ, Chicago, Illinois, for almost twenty years. Attended, taught, learned, worshipped and sang along with his wife and children until his abrupt resignation in May 2008. That resignation was brought about due to heightened national awareness of the “nature” of Obama’s congregation. A nature that was further brought into focus by unsavory sermon tapes of former TUCC minister, Jeremiah Wright. But for all the bluster and ignorance reflected in his sermons, Wright’s ranting from the pulpit only hinted at a deeper, more troubling truth about TUCC and Obama.

What is it that made TUCC such a political liability to the first African-American nominated by a major political party? The answer to that question lies in the doctrine and teachings of TUCC. In short, this congregation, unlike ANY other United Church of Christ church in the United States, adopted, endorsed and promotes the doctrine and teachings of one James H. Cone. Cone systematized what has been called black liberation theology as outlined in his two books, the first entitled, Black Theology and Black Power and a follow-on, A Black Theology of Liberation. These are the only two books sold by the Trinity United Church of Christ on its website. TUCC doesn’t sell or give away the BIBLE on its website – a circumstance I find very telling.

The two books mentioned are, to say the least, “interesting” reads. Black Theology and Black Power is the seminal work on black liberation theology and A Black Theology of Liberation is a follow-on. Cone viewed his theology as, “…complete emancipation of black people from white oppression by whatever means black people deem necessary. So-called (white) Christianity, as commonly practiced in the United States, is actually the racist Antichrist.” “Theologically,” Cone affirms, “Malcolm X was not far wrong when he called the white man ‘the devil’.” And, there’s more – much more - but you get the picture.

So there you have it, the principal doctrine endorsed and promoted by the Trinity United Church of Christ teaches the overtly racist sentiments of James H. Cone. The preaching and “ignorance”, as some say, of Wright is shown to be symptomatic of that larger racism and neglects to see that the entire TUCC congregation accepts the doctrine of Cone under the guise of a Christian church. Wright was just a mouthpiece, it’s the congregation, including Obama, which endorsed and promotes this racist doctrine.

ANY person or group that attempts to systematically demonize another group because of race is, by definition, RACIST.

Needless to say for Obama and his presidential campaign by May 2008 the ‘cat was out of the bag’. And, after twenty years of commitment to TUCC, Barack Obama finally, cynically made a decision to leave. A decision his avid campaign supporter, Oprah Winfrey, made several years earlier as she cynically managed a business agenda of her own. One would have to be patently naïve not to understand the motivation behind both departures. Nor is it much of a political stretch to acknowledge the release of these sermon tapes focused attention on the fall-guy, Wright, while diverting a direct, and potentially, campaign-ending blow to Obama.

What one is left after all the media lights have dimmed is this unsettling fact. For twenty years Barack Obama accepted the racist doctrine of his church – twenty years. And, only when this inconvenient truth was brought to national light did he decide that maybe that doctrine was no longer acceptable.

I give you the Democratic presidential candidate, Barack Obama.

By Frederick Douglass

October 7, 2008 6:10 PM | Link to this

Please, people, especially southerners need to get off of this tangent about Obama’s church. I was reared in a town where the white churches posted what amounted to strong armed thugs at the doors of their sanctuaries to keep blacks out. Many of you know of Klansmen among your flocks, and politicos who seethed at the sight of a minority, yet sang in the choir on Sunday morning. Whatever became of the notion that Obama’s a virulent Muslim, do rabid Muslims worship in places other than mosques? What’s being experienced is a fear of relinquishing a long held caucasian position, POTUS. What’s with all of the ado, Obama will undoubtedly be SWIFT BOATED by Nov. 4th.

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