While You Were Watching Costa Concordia MSM Coverage, TurboTax Timmie Was Moving Money

While You Were Watching Costa Concordia MSM Coverage, TurboTax Timmie Was Moving Money

Anybody surprised that on Tuesday past, the main stream media was shoveling footage of the capsized Costa Concordia while Treasury Secretary and former chairman of the NY Federal Reserve Bank is raiding federal pension funds in order to give Obama some financial wiggle room? Anybody? Nah, didn’t think so. Also, if you think SOPA is only about online piracy, maybe it might be time to check into Bitcoin and see how former Chairman of the Senate Banking Committee, Chris Dodd, is now the head of the Motion Picture Association of America; the prime mover and shaker behind SOPA and PIPA and how it might benefit his global elite banking buddies if they aren’t cut out of financial transactions between little people via the peer-to-peer digital currency of the future. (more…)

Nomi Prins On Geithner’s Move To Tap Pension Funds & The $4 Trillion Sitting At The Fed

Nomi Prins On Geithner’s Move To Tap Pension Funds & The $4 Trillion Sitting At The Fed

(Editor’s Note:  I’m still traversing the labyrinth on a whopper of a story, but felt this news item was definitely worthy of more than just a mention considering it is a possible preamble to a news story that broke last October, and a glimmer into just how bad the moos are being screwed yet again.  See y’all soon…)


What happens when no one is buying your debt anymore, you can’t keep buying your own debt, and you need cash and collateral?

Last October, I picked up the news story about the feds holding hearings on confiscating private 401(k)s in order to more fairly redistribute the wealth. The next day, I posted an in-depth article about the people behind the plan to seize your 401(k) leading back to a progressive university and George Soros.

Enter TurboTax Tim Geithner with a proposal to ‘borrow’ from ‘federal retiree programs’ to keep the government running.  Just how bad is it when the Treasury is yet again using a special measure to keep the bloated federal government afloat?  How badly is the average corporate owned moo going to be raped on this go round? Just keeping the F.I.R.E. economy from completely crashing in 2008 cost us trillions.  There can only be two explanations for what is happening all around us.  Either the folks running our government are incredibly stupid or they are collapsing America on purpose; either way – they gotta go.

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Mentally Bankrupt TurboTax Timmie Geithner Convinced Debt Ceiling Will Be Raised

Mentally Bankrupt TurboTax Timmie Geithner Convinced Debt Ceiling Will Be Raised

One has to love Matt’s captions for his images and links, and I guess the tea party folks weren’t explicit enough for somebody as mentally bankrupt as an international public servant that blames TurboTax for his inability to pay his taxes.

Allow me to spell it out.

STOP SPENDING MONEY MEANS STOP BORROWING!

Our debt is now the second greatest threat to the security of the nation after Barack Obama’s hidden past (can you say blackmail?)

We have been telling these ass-clowns since before Bush bailed out his buddies in the financial sector in September 2008…

STOP DIGGING!!!!

Drudge Report, 4.13.2011

UPDATE 1-Geithner says Congress will pass debt limit increase

Wed Apr 13, 2011 6:55pm EDT

(Reuters) – Treasury Secretary Timothy Geithner said on Wednesday that Congress will allow the country to borrow more by agreeing to increase the $14.3 trillion debt limit.

“Congress will pass an increase in the debt limit,” Geithner told PBS Newshour.

Republicans have said they are unwilling to raise the debt ceiling without some reforms to the government spending.

Geithner said there were some lawmakers who want to take debt ceiling negotiations “to the brink” and warned that the United States could not take that risk.

“So you want Congress to move as quickly as possible to raise that, and of course, they recognize that they have to do that,” he said.

Treasury has forecast that the limit will be reached by May 16. After that point, Treasury can take emergency measures to avoid hitting the debt ceiling. But those actions will only give the United States about a two-month window before Treasury is unable to issue debt to fund government operations. (Reporting by Glenn Somerville and Rachelle Younglai; Editing by Jan Paschal)

Goldman Sachs; More Distraction

Goldman Sachs; More Distraction

I woke up this morning to the news that the SEC is charging Goldman Sachs with fraud.  Whoopeedoodle.  In October of 2008, I wrote a piece based on a WSJ article about the FBI opening preliminary investigations into 26 banks.  Anybody heard a peep about it since? The last article I saw was the investigation of BofA over Merrill Lynch in September, 2009.

The average American may think this is great news if they were really paying attention and had all the facts.  An SEC charge against Goldman Sachs is more deflect and distract.

TurboTax Timmie (and some say Hank Paulson) was in China begging for cash.  Reports of Bill Clinton secretly heading over to Japan for cash, Barack Obama bowing to the chinese a couple weeks after a secret trip to Afghanistan(and God knows where else), and then this little story from MarketTicker that you may have missed in the all the tea party bashing going on the last two weeks.

Did The Fed Just (Surreptitiously) Bail Out Europe? (Monday, April 12th, 2010)

No, not just Greece – all of Europe.  Without Congressional authorization or notice, of course.

Hattip to a nice emailer….

Or if you prefer it on a one-year time scale…

That nice little vertical line is a gain of $421.8 billion dollars of outstanding loans and leases in one week’s time.

WHERE THE HELL DID THAT MONEY GO AND WHAT COLLATERAL WAS TAKEN AGAINST A FOUR HUNDRED BILLION DOLLAR INCREASE IN OUTSTANDING LOANS?

You won’t find anything like that in the records – because it’s never happened before.  That’s beyond unprecedented, it’s ridiculous, and assuming it’s also accurate, someone has some ‘splaining to do on what clearly appears to be some sort of back-door game being run.

Update: It has been suggested that this may be related to the FASB changes and securitized loans coming back on the balance sheet.  If so, where’s the alleged memorandum items on the other side and the footnote on FRED?  The latter is missing, but the necessary data on FRED to confirm that is not yet updated.

Nonetheless, if this is the case, it’s still bad (just not catastrophic) as this will directly hit capital ratios.  Or, put another way, where’s the additional capital that “should” be there to support what is now on balance sheet and was previously off (never mind that it was crooked as hell to have it off in the first place!)

So next time you see something incredibly out of the ordinary (Goldman Sachs charged? AYFKM?), ask yourself, “what are they trying to hide?”

April 16, 2010
Goldman Didn’t See SEC Coming
FBN’s Charlie Gasparino says sources inside Goldman Sachs say they didn’t see the SEC probe coming.

AYFKM? Now Bernanke Wants To Put The Brakes On?

AYFKM? Now Bernanke Wants To Put The Brakes On?

Time's Person of The Year

Ben Bernanke is so deserving of this next AYFKM? Award for his warning today about the US debt, and how The Fed won’t “monetize” the debt, all the while not taking responsibility for his part in the financial fiasco.

Bernanke delivers warning on U.S. debt
Stage is set in U.S. for a Greek tragedy

With uncharacteristic bluntness, Federal Reserve Chairman Ben S. Bernanke warned Congress on Wednesday that the United States could soon face a debt crisis like the one in Greece, and declared that the central bank will not help legislators by printing money to pay for the ballooning federal debt.

Recent events in Europe, where Greece and other nations with large, unsustainable deficits like the United States are having increasing trouble selling their debt to investors, show that the U.S. is vulnerable to a sudden reversal of fortunes that would force taxpayers to pay higher interest rates on the debt, Mr. Bernanke said.

“It’s not something that is 10 years away. It affects the markets currently,” he told the House Financial Services Committee. “It is possible that bond markets will become worried about the sustainability [of yearly deficits over $1 trillion], and we may find ourselves facing higher interest rates even today.”

Mr. Bernanke for the first time addressed concerns that the impasse in Congress over tough spending cuts and tax increases needed to bring down deficits will eventually force the Fed to accommodate deficits by printing money and buying Treasury bonds — effectively financing the deficit on behalf of Congress and spurring inflation in the process.

Some economists at the International Monetary Fund and elsewhere have advocated this approach, suggesting running moderate inflation rates of 4 percent to 6 percent as a partial solution to the U.S. debt problem. But the move runs the risk of damaging the dollar’s reputation and spawning much higher inflation that would be debilitating to the U.S. economy and living standards.

Rep. Brad Sherman, California Democrat, asked Mr. Bernanke directly whether the Fed would consider such a strategy, especially since IMF officials endorsed it.

“We’re not going to monetize the debt,” Mr. Bernanke declared flatly, stressing that Congress needs to start making plans to bring down the deficit to avoid such a dangerous dilemma for the Fed.

“It is very, very important for Congress and administration to come to some kind of program, some kind of plan that will credibly show how the United States government is going to bring itself back to a sustainable position.”

Separately, Mr. Bernanke’s predecessor, Alan Greenspan, told Bloomberg News that “fiscal affairs are threatening the outlook” for recovery from recession as Congress and the White House have been unable for years to make tough decisions to raise taxes or cut spending.

And here’s the kicker; $5 Trillion in mortgage-backed and assorted other debt connected to Fannie and Freddie that is not being included in Obama’s budget.

Separately, the debate continued over whether Fannie Mae and Freddie Mac, the two mortgage financing giants, should be included in the federal budget books now that the Obama administration has taken the limits off aid the Treasury Department is prepared to give the companies to keep them solvent.

Republicans, including Rep. Spencer Bachus of Alabama, the top Republican on the banking committee, have argued that the government is now effectively guaranteeing Fannie and Freddie’s nearly $5 trillion of mortgage-backed securities and other debt, so their revenues and liabilities should be included in the federal budget as obligations of the government. Taking this step would greatly bloat the federal balance sheet.

Mr. Bachus said he worries that keeping Fannie and Freddie’s status off the federal books is “the same sort of financial shell game that has brought governments like Greece to a crisis point.”

But Treasury Secretary Timothy F. Geithner, who also testified on Capitol Hill on Wednesday, said the administration opposes including the quasi-government entities in the budget, although it lifted the limits on aid to Fannie and Freddie with the intent of assuring financial markets that the U.S. government stands behind their obligations.

“We do not think it is necessary to consolidate the full obligations of Fannie and Freddie onto the nation’s budget. But we do think it’s very important … that we make it clear to investors around the world that we will make sure that we will take the actions necessary” to keep the two entities stable, he told the House Budget Committee.

Want a little more good news to go with that fiscal celebration?

New home sales drop 11 percent in January, new low

Live Streaming: The Geithner, Paulson, AIG Show On Wed. 1.27.2010

Want to watch a couple of former Goldman Sachs executives squirm while they try to explain a cover-up? At 10am eastern, 1.27.2010, on C-Span 3, Timothy Geithner and Hank Paulson are going to be in House hearings about The NY Fed, AIG, Goldman Sachs, the SEC and ‘national security’.  Click the C-Span 3 link to watch it streaming live on Wed.

For those that need a bit more information, Judge Napolitano speaks with Lew Rockwell about the ever growing mess that Geithner is finding himself in with thousands of emails that cover up just how Goldman Sachs was paid 100 cents on the dollar for AIG debt. (Among other items.)

Geithner’s Fed Told AIG to Limit Swaps Disclosure (Update3)

Jan. 7 (Bloomberg) — The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show.

AIG said in a draft of a regulatory filing that the insurer paid banks, which included Goldman Sachs Group Inc. and Societe Generale SA, 100 cents on the dollar for credit-default swaps they bought from the firm. The New York Fed crossed out the reference, according to the e-mails, and AIG excluded the language when the filing was made public on Dec. 24, 2008. The e-mails were obtained by Representative Darrell Issa, ranking member of the House Oversight and Government Reform Committee.

The New York Fed took over negotiations between AIG and the banks in November 2008 as losses on the swaps, which were contracts tied to subprime home loans, threatened to swamp the insurer weeks after its taxpayer-funded rescue. The regulator decided that Goldman Sachs and more than a dozen banks would be fully repaid for $62.1 billion of the swaps, prompting lawmakers to call the AIG rescue a “backdoor bailout” of financial firms.

“It appears that the New York Fed deliberately pressured AIG to restrict and delay the disclosure of important information,” said Issa, a California Republican. Taxpayers “deserve full and complete disclosure under our nation’s securities laws, not the withholding of politically inconvenient information.”

The Executive Compensation Double Standard

The Executive Compensation Double Standard

How is it that the Obama administration can go after executive bonuses from Wall Street banks yet continue to give millions of dollars of our hard earned money to the executives of the two giants now currently on taxpayer funded life support? Hmmm?

Ah, the double standard of Chicago politics…

Geithner’s Gift to America—Unlimited Liabilities for Taxpayers and $42 Million in Wall Street-Style Compensation for 12 Government Employees

“The economic miracle that has been the United States was not produced by socialized enterprises…It was produced by private enterprises in a profit-and-loss system.” –Milton Friedman

BACKGROUND:

On Christmas Eve, the Department of Treasury said that it would remove the $400 billion cap on Treasury’s funding of Fannie Mae and Freddie Mac, the two bankrupt government sponsored enterprises that Secretary Tim Geithner said were at the “epicenter” of the financial crisis. The move gives the failed GSEs unlimited taxpayer funded bailouts to cover losses incurred as a result of their managements’ recklessness and their boards of directors’ oversight failures. Geithner’s Treasury essentially turned the two failed GSEs into full government agencies and further exposes taxpayers to losses that the GSEs may incur in the future. The two GSEs are expected to report losses in the billions for 2009. Also on Christmas Eve, Fannie and Freddie disclosed that they received approval to pay $42 million in compensation packages to 12 top executives (all federal government employees and payable in cash) for 2009. Interestingly, the Democrats, led by Geithner and Rep. Barney Frank (D-MA), have launched an all out attack on capitalism by attempting to restrict the compensation of Wall Street firms they deem to be too profitable.

Fannie Mae and Freddie Mac are government created duopolies charged with providing liquidity to the mortgage market by purchasing mortgages from lenders and either holding those mortgages in their portfolios or packaging the loans into mortgage-backed securities that are sold to investors. Fannie and Freddie were privately held companies that generated big profits for their managements, boards of directors, and shareholders by being beneficiaries of advantages not shared by their competitors, including an implicit federal guarantee (i.e., a taxpayer bailout if the companies failed). Their managements and boards of directors, including former Freddie board member and current White House chief of staff Rahm Emanuel, are textbook examples of recklessness having put Fannie and Freddie in a position to cost taxpayers by chasing compensation targets and carrying out Democrat housing policies without concern for market risks. The taxpayers were left with two failed companies and potential liability of up to $400 billion as a result of the GSEs being put into conservatorship, but due to Geithner’s Christmas Eve spectacular, the taxpayers are now liable for all of Fannie’s and Freddie’s losses.

ISSUES OF CONCERN:

Arbitrarily Rewards Failure: Many would argue that failed firms that receive a taxpayer funded bailout and have not repaid the taxpayers should have their pay packages reviewed and, if necessary, limited until the firm makes a profit and the taxpayers are made whole. For example, the CEOs of failed firms, Citigroup, AIG, GM and Chrysler, should not and will not receive lavish compensation packages. However, the Democrats implemented an unlimited taxpayer funded bailout plan to indefinitely prop up Fannie and Freddie, and the CEOs of the government owned companies will receive millions of dollars in compensation even though the bankrupt companies are expected to report a loss for 2009. Geithner and acting-director of the Federal Housing Finance Agency, Edward DeMarco, should provide taxpayers the rationale for such decisions at Congressional oversight hearings immediately.

Wall Street-Style Compensation: As wards of the state with essentially no stock price, Fannie and Freddie have become government agencies. In fact, Rep. Barney Frank, one of main proponents of the policies that destroyed the housing market recently stated, “They’re not what they used to be-that inappropriately hybrid, private stock company, public policy instrument…They have become the public utility that finances housing in America to a great extent.” As government agencies, Fannie’s and Freddie’s employees are government employees. The president of the United States makes $400,000, but the CEOs of Fannie and Freddie are eligible to receive $6,000,000 each.

Creates Conditions for Another Financial Meltdown: The current financial turmoil was largely caused by the two GSEs. Peter Wallison, writing in the Wall Street Journal stated, “By the end of 2008, Fannie and Freddie held or guaranteed approximately 10 million subprime and Alt-A mortgages and mortgage-backed securities-risky loans with a total principal balance of $1.6 trillion. These are now defaulting at unprecedented rates, accounting for both their 2008 insolvency and their growing losses today. Since 2008, under government control, the two agencies have continued to buy dicey mortgages in order to stabilize housing prices.”

The pubs are correct. From the LATimes, and under the cover of the Xmas Eve health care vote.  Now why would we, as the people footing the bill, be giving bonuses to the men at the helm of failing government enterprises that control $5 Trillion in residential mortgage debt?  And one last note, remember Barney wants to abolish both these giants and start over with some sort of housing system.  Do you trust Barney Frank to come up with a capitalist, free-market based enterprise that isn’t going to collapse the system a few decades from now?

Fannie Mae, Freddie Mac CEOs could each earn $6 million a year

Michael Williams at Fannie and Charles E. Haldeman Jr. at Freddie will each receive a base salary of $900,000 in 2009 and 2010. They could get $5.1 million more if certain targets are met.

BAILOUTS

Reporting from Washington — The chief executives of Fannie Mae and Freddie Mac each could earn as much as $6 million this year and next, despite huge continued losses at the seized mortgage giants and a government bailout tab of more than $100 billion that the Obama administration said could rise even higher.

Fannie Mae Chief Executive Michael Williams will earn a base salary of $900,000 in 2009 and 2010, with a deferred base salary of $3.1 million each year to be paid “only if the enterprise meets performance metrics” set by its board and subject to government review, according to filings Thursday with the Securities and Exchange Commission. An additional $2 million is possible annually, identified as “target incentive opportunity.” Freddie Mac Chief Executive Charles E. Haldeman Jr. will get the same compensation package.

Four additional Fannie Mae executives will earn base salaries above $500,000 and have compensation packages for 2009 and 2010 that could pay each of them at least $2.7 million annually. One other Freddie Mac executive will receive a base salary over $500,000 and could earn as much as $1.15 million a year.

Also on Thursday, the administration said it was prepared to increase the maximum amount it would pay to bail out the troubled institutions

The announcements are likely to provoke outrage in Congress, particularly among Republicans, who have charged that Fannie Mae and Freddie Mac caused the housing boom and financial crisis with lax mortgage standards. Senators headed home for the holidays Thursday, and House members were already out of town, limiting the initial reaction.

“The Obama administration’s decision to write a blank check with taxpayer dollars for the continued bailout of Fannie Mae and Freddie Mac is appalling,” Rep. Scott Garrett (R-N.J.) said. “Not only is this a continued bailout of failed entities that need to be privatized to protect the taxpayer, the timing of the announcement is clearly designed to try and sneak the bailout by the taxpayers.”

The Treasury Department has pumped $60 billion into Fannie Mae and $51 billion into Freddie Mac in exchange for stock since federal officials seized them in September 2008 in one of the largest and most complex federal bailouts. Each company has a lifeline of as much as $200 billion, which administration officials said Thursday they would “increase as necessary” over the next three years as the companies continue to struggle.

The smell of corruption continues to get stronger.

Can We Impeach Him Yet?

Government Growth: IRS Hires Hundreds To Chase Wealthy

The only sector during the recession that is growing is the public sector.  How many caught this story yesterday in USA Today?

Average pay $30,000 over private sector

By Dennis Cauchon

USA TODAY

The number of federal workers earning six-figure salaries has exploded during the recession, according to a USA TODAY analysis of federal salary data.

Federal employees making salaries of $100,000 or more jumped from 14% to 19% of civil servants during the recession’s first 18 months — and that’s before overtime pay and bonuses are counted.

Federal workers are enjoying an extraordinary boom time — in pay and hiring — during a recession that has cost 7.3 million jobs in the private sector.

The highest-paid federal employees are doing best of all on salary increases. Defense Department civilian employees earning $150,000 or more increased from 1,868 in December 2007 to 10,100 in June 2009, the most recent figure available.

When the recession started, the Transportation Department had only one person earning a salary of $170,000 or more. Eighteen months later, 1,690 employees had salaries above $170,000.

Well it isn’t going to stop anytime soon, and now the IRS is getting into the groove since TurboTax Timmie, Barney and Company have made a priority of chasing down tax evaders who use offshore accounts.  The insanity of giving the IRS $387 million to chase down $13 Trillion in hidden offshore accounts instead of changing the tax code so that the wealthy would actually invest it in our economy is dazzling.  Add to that the brazen audacity of a tax cheat implementing this plan, and one has a recipe for expatriation.

IRS Hires Hundreds For New Wealth Unit

WASHINGTON (Reuters) – A new Internal Revenue Service unit set up to catch rich tax cheats hiding their wealth in complex business entities is rapidly taking shape with the hiring of hundreds of employees.

The IRS high wealth unit, part of a broader effort to combat international tax evasion, is focusing on “the entire web of business entities controlled by a high wealth individual,” IRS Commissioner Doug Shulman told a tax conference this week.

Another IRS official told Reuters “hundreds” of people have already been hired to staff the new unit, including some from within the agency.

“We have drawn top talent within the IRS that have expertise involving wealthy individuals as well as examination of their related entities,” said Mae Lew, an IRS special counsel.

The high-wealth unit is focusing on trusts, real estate investments, privately held companies and other business entities controlled by rich individuals.

While use of sophisticated legal structures can be legal, in other instances they “mask aggressive tax strategies,” Shulman said.

Tax authorities in Japan, Germany and the UK have also created similar units.

The U.S. House of Representatives on Thursday approved a $387 million boost for the IRS for the fiscal year that started October 1, in part to fund the high-wealth unit. The Senate is expected to vote on the measure on Sunday. (emphasis mine)

I think I may have mentioned the fact that these Sunday votes were going to become regular occurrences since the Democrats have to push through as much legislation as possible before we start firing them in 2010.

NEW GLOBAL FOCUS, JOINT CORPORATE AUDITS

The IRS is also opening new criminal offices in Beijing, Panama City and Sydney to focus on funds flowing out of Europe and into Asia, in part because of a heightened focus on international enforcement in Europe.

The goal is to get those up and running during this fiscal year, which ends September 30, according to Barry Shott, IRS deputy commissioner for international issues for large and midsized business.

At the center of the agency’s offshore effort is its legal cases against Swiss banking giant UBS AG. UBS agreed to turn over nearly 5,000 names of individual American clients and paid $780 million to settle a criminal case for aiding tax evasion.

H.R. 4172: The Liberals Do Not Get To Have Their Cake And Eat It Too!

H.R. 4172: The Liberals Do Not Get To Have Their Cake And Eat It Too!

Yes, It’s Real!  Zero Penalty Rate for Offshore Voluntary Disclosure Program ala Timmie Geithner’s IRS penalty.

When I first read this bill, I laughed so hard I cried, and my son was concerned that I had just completely gone around the bend. Then, I thought, they are spending our money to put forth legislation like H.R. 4172. I cannot decide whether this is a good investment or a bad one considering it will never get out of committee, but I am all for not giving the IRS any more money or power, anything that shows TurboTax Timmie to be the imbecilic fraud that he is, and a bill that would bring back trillions of dollars into our economy.  I can just see Romulan Geithner stomping around and ranting over martinis about how he is going to be portrayed by history.

God Bless these Texas Gentlemen!

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Rep. Kevin Brady (R-TX) Asks TurboTax Timmie Geithner To Step Down

Come on down Timmie! Come on down to the Price Will Be Right!

Have I ever mentioned how much I DETEST TurboTax Timmie? He ain’t stupid bubba; it’s all part of the plan.

Rep. Brady:

Poll after poll shows the public has lost confidence in this president’s ability to handle the economy.  For the sake of our jobs, will you step down from your post?

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