The following top economists and financial experts believe that the economy cannot recover unless the big, insolvent banks are broken up in an orderly fashion:

  • Dean and professor of finance and economics at Columbia Business School, and chairman of the Council of Economic Advisers under President George W. Bush, R. Glenn Hubbard
  • The leading monetary economist and co-author with Milton Friedman of the leading treatise on the Great Depression, Anna Schwartz
  • Economics professor and senior regulator during the S & L crisis, William K. Black
  • Professor of entrepreneurship and finance at the Chicago Booth School of Business, Luigi Zingales

Pshhh what do a bunch of widely respective economists know about the economy? What they’re really saying is that we should cut taxes and environmental regulations! /sarcasm


Dean Baker should be on the top of this list.

(via reagan-was-a-horrible-president)



“HOLY BAILOUT - Federal Reserve Now Backstopping $75 Trillion Of Bank Of America’s Derivatives Trades

This story from Bloomberg just hit the wires this morning. Bank of America is shifting derivatives in its Merrill investment banking unit to its depository arm, which has access to the Fed discount window and is protected by the FDIC.

This means that the investment bank’s European derivatives exposure is now backstopped by U.S. taxpayers. Bank of America didn’t get regulatory approval to do this, they just did it at the request of frightened counterparties. Now the Fed and the FDIC are fighting as to whether this was sound. The Fed wants to “give relief” to the bank holding company, which is under heavy pressure.

This is a direct transfer of risk to the taxpayer done by the bank without approval by regulators and without public input. You will also read below that JP Morgan is apparently doing the same thing with $79 trillion of notional derivatives guaranteed by the FDIC and Federal Reserve.

What this means for you is that when Europe finally implodes and banks fail, U.S. taxpayers will hold the bag for trillions in CDS insurance contracts sold by Bank of America and JP Morgan. Even worse, the total exposure is unknown because Wall Street successfully lobbied during Dodd-Frank passage so that no central exchange would exist keeping track of net derivative exposure.

This is a recipe for Armageddon. Bernanke is absolutely insane. No wonder Geithner has been hopping all over Europe begging and cajoling leaders to put together a massive bailout of troubled banks. His worst nightmare is Eurozone bank defaults leading to the collapse of the large U.S. banks who have been happily selling default insurance on European banks since the crisis began.

— Bloomberg


@OperationLeakS is promising Bank of America leaks within the hour.

lights on. rats out.


Firefighters in Wisconsin marched to the M&I bank earlier today in Madison and withdrew their money. In total they took an estimated $192,000.

They asked others to follow their lead. Apparently others did. Just updated:

A call to M&I’s Capitol Square branch confirms the bank is closed for the…


(via gonzodave)

last week i cashed out of National City (NOW PNC) and put my money in a local Credit Union. el Union de Credito es de mi barrio y se llama los caballeros de san juan. over the 6 years i banked with National City (NOW PNC YOU FUCKER) i accumulated 60,000 of their little “points” which i exchanged for these gift cards. 

National City (PNC! PEE. EN. SEA. SAY IT! SAY IT BITCH!) i am a little disappointed. 6 years of my patronage, thousands of my dollars in fees and your undoubted leveraging of my hard earned money into much bigger piles of money and you repay me with $150. sigh. thanks a lot National City (I SWEAR TO GOD YOU LITTLE FUCK FACE PNC IS GONNA CUTCHU!).


$50 to Zappos


$100 to Amazon

i’m open to suggestions. especially regarding fashion purchases. any thoughts on what i should splurge on Tumblr?




William Black Tells The Truth On Lehman’s Failure: “A Story In Large Part Of Fraud”

Speaking truth to power with the usual likely outcome.

"We have known for a decade that these are frauds"

"All of the major regulatory agencies were complicit, we have a self-fulfilling policy of regulatory failure because of the leadership in this era."


So get this: the stress tests were a sham. Only one outcome was permissible: that Lehman pass. So after the Fed was unable to come up with an objective-looking stress test that Lehman could satisfy, they permitted Lehman to devise a test with low enough standards to give itself a clean bill of health.
So why should we trust ANY government designed stress test, particularly when the same permissive grader, Timothy Geithner, was the moving force behind the ones dreamed up last year, which have been widely decried by banking experts, including Bill Black, Chris Whalen, and Josh Rosner? We linked to a simple analysis by Mike Konczal that demonstrates that for the biggest four banks alone, merely on their second mortgage portfolios, the stress tests of 2009 were too permissive to the tune of at least $150 billion.
Lehman type accounting, in other words, is being institutionalized, with the active support from senior government officials.

It’s all a bit of a joke, isn’t it? The country’s leadership, I mean.




Huffington Post front page.

comrades in arms against the laboring classes.


Sept. 13 (Bloomberg) — Joseph Stiglitz, the Nobel Prize- winning economist, said the U.S. has failed to fix the underlying problems of its banking system after the credit crunch and the collapse of Lehman Brothers Holdings Inc.

- Banks ‘Too Big to Fail’ Have Grown Even Bigger -
I don’t see any bad coming from that…

this nation’s laboring class has a bad case of Stockholm Syndrome.


- Banks ‘Too Big to Fail’ Have Grown Even Bigger -

I don’t see any bad coming from that…

this nation’s laboring class has a bad case of Stockholm Syndrome.