Rep. Alan Grayson: "Have You Heard the Expression Heads I Win, Tails You Lose?"
By John Amato Thursday Feb 12, 2009 2:00pmCitigroup CEO Vikram Pandit came to the House Financial Services committee yesterday to talk about their use of TARP money. While people have their eye on the bailout money, what the Federal Reserve is doing is actually much larger and more scary. The Federal Reserve has guaranteed over $200 billion of Citigroup's toxic assets, in return for $7 billion in warrants that are probably worthless. Bulldog Congressman Alan Grayson spent about five minutes questioning Pandit and taking this farcical deal apart. He forced Pandit to admit that this arrangement gives taxpayers the downside and Citigroup all the profits.
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and this was one of the best congressmen to question the bankers.
Clearly Grayson was out of his league. Just a bunch of trite expressions and gotcha questions. I mean, occasionally you actually see a congressional hearings with some depth and nuance. But clearly Grayson was just pandering to the camera instead of actually working to try to get anything done.
He gets 5 minutes to make a point. He very eloquently made the point that the American taxpayer is getting screwed again. Where do you see "camera pandering" here? What else are you going to do in 5 minutes?
The whole hearing is pretty much a scam - but, the Congressman did help to make it very clear to any American citizen who took the time to watch, exactly how screwed up Citi is along with this whole stinkin' deal.
Unless and until more Americans really understand how bad this is going to get and begin to get a little more vociferous about it, we don't have much of a chance.
You are right about that. But the hearing is longer than 5 minutes, and there is no reason why members of Congress cannot work together to use their joint time in the hearing to have a real discussion. I say he was pandering to the camera because instead of doing the above (like you sometimes see in Senate confirmation hearings), using the time to dig into details of the deal that could only be answered face-to-face, or make any other type of real progress, I think he just went for the questions that will most likely land him on CNN. Yes, that does serve a purpose too and illustrates the point he wanted to make. I guess I just want more from Congress than superficial oversight.
and send me home on one of my Learjets. I'll be happy to give pathetic answers and take all the heat and have Congress angrily tell me what a detestable person I am.
Congress is as pathetic as the United Nations. Spineless worms!
HEY CONGRESS GROW SOME BALLS YOU F*******G LAPDOG PANSIES AND DO SOMETHING ABOUT IT!
This is how these investigations are run. You could ask these congressmen and women to cooperate, but you may as well ask them to do an interpretive dance as well. I think everyone knows that Congress abdicated its responsibilities to real oversight a long time ago.
Dear TexasDumb,
The whole American Taxpaying public is out of their league if responses like yours are any indication. Methinks you could be one of the paid CIA shills whose job it is to discredit people like Grayson who shine a light on the truth of this matter, which is that globalist financial interests are in the process of gutting the country and all wealth therein.
There really should be riots in the street and no doubt your ancestors are spinning in their graves at how completely docile their decendants have become. But, honestly, when Grayson pointed out that the taxpayer gets stuck with $250 billion in losses that clearly belong to the very people lining up for bailouts who caused all this mess -- and he's the best of the lot questioning these gangsters -- and your response is he is out of his league, it makes me wonder just how dumbed down this whole country has become.
-- insert ad hominem attack here--
Perfect response.
(Although I admit I lack your restraint).
Grayson was out of his league? Not so much. I thought he did a great job of keeping Pandit in line to answer the gist of his question. Pandit was just throwing factoids and numbers in the air to try to buffalo Grayson. Didn't work very well, did it? "Well Congressman, the only thing I'd say to you is... ." Yeah, it's the only thing Pandit would say because if Pandit told the truth about this enormous theft the little people might recognize him for the bankster he is. This whole bailout is being done for Wall Street, by Wall Street, against the American people. Of which I assume texasdem is one.
Grayson is not only NOT out of his depth, he's probably the only one at the hearing who has taken war profiteering corporations to court and won judgements against them.
Grayson is the real deal - and I'm proud to say I did some volunteering for his campaign.
Did Pandit just say that Citi Bank will make all the profit while the taxpayers take responsibility for the losses?
...though he's not under oath, so later he can say he misspoke.
namely calling it "insurance" when the contract was created AFTER the assets were determined to be bad! That's like getting your insurance company to ensure your home (at an inflated value no less) AFTER it nearly burns to the ground! What an egregious lie and Grayson let it go by.
Didn't Obama just appoint three more of these bums to his administration? So, if they are no good at helping Citi without taxdollars, I guess that qualifies them for government jobs!!! LOL. Man, what a world.
...maybe it is akin to security companies hiring the hackers that broke their systems? Obama bringing on people clever enough to be scott-free crooks and redirecting their skills from evil to good.
HAHAHAHA....
Wait, that's not really very funny....
The Citi bad asset backstop is $301 billion as I understand it and as is reiterated here. The number $306 billion was stately separately but apparently a product of another report but that was not cleared up.
What is worse than the number, which should be bad enough, is that there is no definition of what the assets are. They can push the worst into the $301 billion pile.
This started as a scam. The government is completing the scam.
...elements within our government have been running the scam for the past 4 to 5 decades.
moment.
taxpayers don't own the fed. In fact, if the fed loses a bunch of money....they'll just make more. The inflation will lower the value of the dollar which kinda helps most Americans since they are in debt.
We have a huge balance of trade deficit, things we import will go up according to the currency change.
Chief among these will petroleum. $20 a gallon will not be impossible.
The Fed whose mandate is to watch inflation will raise rates. Volker's response to double digit was rates that hit 14%. It could go a lot higher than that.
Wages do not keep pace. People with fixed income are hit hard. Savings are wiped out. Social Security rates adjust.
The administration starts price controls. Shortages develop, a black market develops.
Your debt may be easier to pay off unless it is an adjustable rate. Credit card rates will be astronomical.
There is lots of down side to inflation, very little upside.
is there an upside to deflation? a lot of people are saying that that is the "real" risk not being discussed.
and i am proud to say i voted of Alan Grayson!
Is there an upside, so to speak, to deflation?
If you have income and your wages don't go down but the price of things do, that is something of an upside.
However as general statement deflation is a dreaded situation. Demand spirals downwards because what cost you $100 today might well be less next week.
Why buy it now? Everyone sees demand fall, as it falls people lose their jobs furthering eroding demand.
If deflation is actually understood to be occurring, employers will start cutting salaries, where they can.
If you have debt you are in trouble. If you have debt and no income you have big trouble.
Deflation has traditionally been seen as a condition to be avoided most any cost.
But, with deflation if you have loads of cash, you wait for the bottom and buy stuff.
With inflation you get rid of your cash as fast as possible.
With hyper inflation you get rid of it as soon as you get it.
With the amount of money the Fed is printing the deflation will end maybe sooner rather than later.
Their thinking apparently is that they can unwind the thing before inflation takes off to the races.
I won't bet on it.
..cuff em and book em.
Just trying to imagine what is going on with all this makes my bruises my brain.
I was hoping the next post would be about Gregg taking his name out of the hat, but I'll just sit and politely wait for that one.
.
What's done?
Oh and I totally screwed up my first sentence in my comment, but my edit button was missing. It should have read: Just trying to imagine what is going on with all this makes me have bruises on my brain.
...I was afraid my brain was the bruised one.
it was the last post.
I have been studying this whole business intently. Basically I just wanted to understand if I should pack up everything in my little canoe and start paddling for points to be determined.
Or maybe just Niagra Falls.
The short of it is, the entire bailout is a payoff to the Fat Cats and we are being fleeced.
The arrogance of these people when they sit in front of congress. Between this guy telling Grayson he doesn't think the saying applies here, the Peanut Butter execs refusing to answer after murdering a handful of people and Madoff on house arrest after stealing billions. Money may not buy love but it does your freedom.
Just make sure you're not a 19 year old black kid busted for selling a quarter ounce of weed or your ass will be sitting in jail for six months.
It is capitalized by us like christians capitalize the word God.
Taxes and Laws are 'For the little people' my friend, that IS the reason Leona was put in jail, for saying that...
are getting it yet (not just you gump, but everyone)! These people OWN the US government - these arrogant creeps are all part of the international financial cabal, you know to bankers and corporatists (elitists) who control most of the money/wealth in the world and are now in the process of stealing the rest.
Those domesticated congress critters sure aren't going to bite the hand that feeds them now are they boys and girls. Remember a congress critter's job is to keep that job. It isn't truly giving a damn about you.
should be a reality show on Faux. No really, you cannot make this stuff up.
Dems in Congress, pretending to spank Mr. Fraud, while at the same time giving him bailout money, and hiring his employees to work in government. It is beyond believable. People would watch it and think..."man, 24 must be real"
Somehow the lyrics to "We don't get fooled again" fit so well into the last 30 years of elected politicians. Knowing this would continue to repeat I pointed it out to some Obama fans. They still won't admit it is accurate out loud but I can see it in their faces.
actually hoped all the hype was true. I really did. At the rate he's going, he will be more Republican than Ronnie Raygun before his first term is up. And to think, I feared they'd assassinate this man. Hell, he's giving them everything they want!
I have completely given up on the democratic party. Obama is turning out to be a complete phony. How in the world could he decide in favor of Geithner's Henry Paulson plan, over the objections of Axelrod and his other advisors - who wanted some real ownership for taxpayers, and stringent oversight? He's full of shit!
And teh democratic party has no intention of leading! Because real change we can believe in, isn't going to happen. Could you imagine if the tables were turned and the repukes won the majorities the democrats now enjoy? Do you think they wouldn't have sat Franken weeks ago, and with 59 seats, they would have pissed on the democrats heads in the Senate chamber just for fun. They certainly wouldn't have been worried about getting 60 votes!
Yeah. It's kind of like having the power to control and manipulate the currency. It's a real old trick. Kind of like Slight of Hand.
They talk about it here:
http://www.chrismartenson.com/crashcourse
Fed, FDIC, etc goes to CITI, gives them $7,000,000,000 in preferred to be able to in effect give $300,000,000,000 to shore up their assets and toxic products. Since you can't have less than zero dollars invested in todays financial math, CITI has an infinite return on investment from the US! Now that's leverage!
Yesterday is not today.
All of us are being screwed.
Oh, laugh about it. It's a joke. The smart people know what to do.
My suggestion: head for the exits. It's what the rich fucks are doing.
Good luck.
...heading for the exits could be a good strategy. As this "recession"
or "depression" or "global elitist financial scam" is affecting most other countries as well, where do you suggest we exit to?
I used to think it wold be nice to live on some island in the South Pacific, but you know, now with the global warming and rising oceans - that doesn't seem like such a good idea.....
before they close their borders to immigrants. Parts of Central and South America too, but that's always dicey.
climate for my elderliness - but I'm not to good with the Spanish or Portuguese..no habla.
n/c
That's the only possible outcome whengovernment is run by corporatist protstitutes.
Nothing will change.Corporate execs will still steal, politicians will still do their bidding.
Short of firing squads, only massive tax levies on obscene wealth counteracts the greed.
Bring back the Eisenhower tax rates.
That would do it! No need to make 300 million a year, if your in a 99% tax bracket after the first 10 million. I just wonder how much longer its going to take, before the dupes start demanding hefty marginal rates again?
did anyone hear/read elizabeth warren's report regarding the TARP.....whatever it's called now. i heard her on the rachel maddow show saying that henry paulson was less than truthful/clear(not a quote). she explained that there was NOT an equal exchange( 'on par') of funds for assests. not sure i have that correct.
thats true. the reason why the government overpaid for the assets was because if they gave the banks what the assets were really worth, it would be akin to admitting the bank is completely insolvent, and all major banks would collapse. the government had to overpay for these assets just to keep these jerkoff banks afloat. the banks said 'pay me the money or else the economy blows up." it was a veritable jihad on the american taxpayer.
i see thanks........in some respects i believe the major banks should be nationalized until they are in good shape then back to private. thanks clearing that up.
Everyone I know (myself included) are losing big time. So why should I give a rats ass if the banks go down. In fact, they caused everybody's misery now that I think about it. Man, this is soooooo f**ked-up.
I don't blame this piece of shit for swindling the american government out of money. that is his job as a worthless banker. I blame paulson / geithner for allowing these shiesters to rape the american taxpayer in the middle of the night while everyone was asleep. they are the ones that need to be answering some serious questions here. frankly, after watching over the past few days, giethner should have never been nominated. worthless tax cheat couldn't give away enough money to his banking buddies.
would have loved too hear more... F-in Franks. :-(
Alan Grayson > http://www.govtrack.us/congress/person.xpd?id... http://en.wikipedia.org/wiki/Alan_Grayson
Big fish ♥ little fish...
Conyers screams about a subpoena. Harry Reid issues yet another sternly worded letter. Obama promises to cap pay of those entities receiving bailout funds and to look forward. And Madame Pelosi has yet another facelift, and will leave politics for a job at a corporation that makes reverse fitting bras!
don't forget diane feinstein. instead of doing her job helping the american people, she's too busy making sure MPAA's balls are tickled in this bill by inserting language that would destroy the freedom of the internet.
And as they show the highlight reel for next week's show, EVERY member of CONgress is scooting around the capital in their brand new "energy efficient" golf carts at 8-10 grand a pop stimulating each other with hundred dollar bills!!
I don't think these arrogant bastards are ever going to get it. These little Nero's fiddle as the country burns down around them
Harry (No Balls) Reid, despite massive political mandates in every branch of government, allows a small regional party of complete wack jobs to derail the future of the country, over some bullshit 60 vote cloture "rule", which may actually be unconstitutional. "Yep, 2 million additoinal families may be homeless by the end of the year, but the senate has its own unique rules." WTF?
Call for a vote, and make the bastards stand up for days filibustering againstthe american people. After a week of that shit, maybe even some ofd the bigots and zombies down south and in the midwest will turn on their fascist heroes.
I really am sick of these democrats. They have no excuse now, other than they are phonies, and in on it with the repukes.
things on CONgress "plate" today was to congratulate the SuperBowl champions! Oh boy. Now THAT is an important matter that CONgress needs to address.
mark Twain had it right:
"There is no native criminal class...except Congress."
or are we all just watching the latest movie from Mel Brookes??
At least Mel Brooks was good for a laugh or two. I don't find any of this shit funny.
... Downturn means job losses for drummers:
http://www.youtube.com/watch?v=a1ThSi1wbqU
We are probably the only country in the world that isn't "throwing the bums out." Too many people with eyes closed that won't be opened until they lose their jobs.
http://www.thenation.com/doc/20090223/klein?r...
But there is still a LOT of smugness here in Canada (".. can't happen here") ...unbelievable.
The Argentines learned, this is what they said to their politicians: "¡Que se vayan todos!" ("All of them must go!")
I have a couple cabinets full of pots and pans !!!!
"One main stumbling block to the purchasing of troubled assets has been pricing, specifically how does the government price a diverse set of assets in a way that does not put the taxpayer on the hook. However, this should not be the standard by which we judge the efficacy of the plan, because a more prolonged deterioration in the
economy will result in a higher terminal unemployment rate and a greater deterioration of the tax base. As such, the decline in tax revenues will crimp many of the essential services provided by the government. Ultimately, the taxpayer will pay one way or another, either through greatly diminished job prospects and/or significantly higher taxes down the line to pay for the massive debt issuance required to fund current and prospective fiscal spending initiatives.
We think the government should do the following: estimate the highest price it can pay for the various toxic assets residing on financial institution balance sheets which would still return the principal to taxpayers.
One leading economist described the memo to TPMmuckraker as a "ransom note" to the US government"
http://tpmmuckraker.talkingpointsmemo.com/200...
Economic terrorists.
Asset A will make Asset B fail which in turn will make Asset C fail.
Remove Asset A and Asset B & C will not fail.
The taxpayers pick up the bill for Asset A.
The financial loss is spread out amongst millions of taxpayers.
We are a capitalist country so long as the rich get richer; but, the second the rich guy fucks up and losses his shirt suddenly we are a socialist state
It is Crony Capitalism.
The Government is owned by the Banksters who require service.
...and install Grayson as President immediately!!
I know this can't be done, given our line of succession, but Grayson is first member of Congress I've seen in years who, without histrionics, but only dogged, frank statement of the facts, confronts and exposes these "respected business leaders" as the criminal swine they are.
Rep. Grayson ran a campaign in Central Florida (Orlando) with a message of cleaning up the corruption in Iraq and putting the Iraq War money back in the USA where it belongs. Needless to say, he won the election handedly. He is a first term Representative with strong popular support. Grayson is driving the wingnuts down here crazy. With Demos like Grayson, I see Central Florida (Daytona Bch to Tampa) slowly moving Red to Blue.
Grayson does us proud!
Accidental Loss.
The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be ‘pure,’ in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable.
-------------------------------------
I think another principal is that the loss cannot already have happened --- how can this CEO say that what he got from the U.S. Gov't was "insurance"?
He didn't say he got insurance from the Gov't did he?
I thought he was talking of the Federal Reserve? Which is Quasi Gov't.
Show me a time when the Federal Reserve needs cash and the US Government isn't there willing to go further into debt to maintain the Fed's books. In THEORY, the Fed could ask for money and have the government refuse them. But in REALITY, the US Government will issue bonds as long as there are people willing to buy them...
The real issue here is fractional reserve lending -- the ability of these banksters to lend 9x what they have in their vaults. That's fraud, but legalized fraud. If I set up a scam where I did this, I'd be tossed into the pokey. But the Banksters are allowed. They are allowed to lend you money that doesn't really exist, and then charge you interest on it. And if you fail to pay the interest on that fake money, they will be more than happy to take your REAL property. At any given moment, there is more debt out there than there is real money to repay it. I'm not sure if that's a Ponzi scheme, or a Pyramid scheme, but it is one of them.
If any of you want to learn how this corrupt creature called the Fed came into existence, and the rather shady operations which lead up to it, have a listen to this:
http://video.google.com/googleplayer.swf?docI...
Ask yourself one question... How many of these banks are actually closing any of their brick and mortar shops? I can't go 2 blocks in any direction without hitting a bank. They pop up faster than Starbucks. Let me know when you see one close its doors -- I won't hold my breath.
So much tough talk and questioning !
So where is the investigations, prosecutions?
Where is the legislation that stops this corruption ?
Does anyone lose their job?
No, American tax ppayers give them bonus's?
I am again amazed at Rep. Grayson's ability to rattle these crooks with his fledgling yet astute questions. I think he may be one of the only Rep's who actually reads the bills before voting (other than Ron Paul). But as usual, the institutions stealing taxpayer dollars display their disgusting sense of entitlement. Insurance, my ass.
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