Wall Street on target to beat 2007 bonus numbers

That year would be the last year of the credit bubble before it burst. Is there anyone in Washington who cares to step up and side with the American public here? This is a sham and everyone knows it. If Congress or the White House had any sense of fairness or decency they would shut this down immediately.

Fueling the gains were extraordinary profits from the firms’ own securities trading accounts as they borrowed at near-zero interest rates and put the money to work in the securities markets. Member firms on the New York Stock Exchange earned a record $35.7 billion for their broker-dealer operations in the first six months, $8.9 billion more that the previous high in 2000, the state comptroller said.

In turn, the profits are contributing to a resurgence of bonuses on Wall Street. Six of the top American bank holding companies set aside $112 billion for salaries and bonuses, including deferred payments, in the first nine months, Mr. DiNapoli reported. The six banks are Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo.

If the profits continue, bonuses at the six banks could exceed the $162 billion paid 2007 — the year before the financial crisis hit stock markets. Though compensation has rebounded at the four largest banks, Merrill Lynch, now part of Bank of America, and Morgan Stanley reported a decline in overall compensation.

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Senator Vitter doesn't even know what the Loving v. Virginia case is

More amazing video from the fearless Mike Stark.

Just a couple weeks ago, a Louisiana Justice of the Peace refused to marry an interracial couple. That was a huge news story. And, it evoked a lot of discussion about the 1967 United States Supreme Court ruling in Loving v. Virginia, which found that laws banning interracial marriages were unconstitutional. A couple weeks ago, Louisiana's Senator David Vitter, the hooker loving Republican, wouldn't comment on the Justice of the Peace scandal to Mike Stark.

Today, Vitter claimed he didn't even know the case -- or whether it was correctly decided:

This was a huge story in Louisiana and across the country. How could he not know? Read More......

Housing data suggests bumpy times ahead

Some are suggesting the housing data is pointing towards a double dip recession. As the tax credit disappears, so may the housing market.

Construction of homes unexpectedly plunged last month to its lowest point since April, the Commerce Department said Wednesday. The weak figures show that builders fear there aren't enough buyers to soak up the glut of unsold homes already on the market — a supply magnified by record-high foreclosures.

They also illustrate how much the fledgling recovery depends on government aid. Builders held back in part because of uncertainty in October about whether Congress would extend a tax credit for homebuyers. Earlier this month, lawmakers renewed the credit and extended it to more buyers.

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Inspector General Report: Yes, Goldman Sachs was highly exposed with AIG

For the millionth time, why does Goldman Sachs get a free pass from Congress and the White House? The American taxpayer saved them from ruin so there is no reason why Goldman Sachs should not be under the same TARP pay conditions as fellow losers Citi and Bank of America. Despite their best efforts to say otherwise, the company could have been in serious financial trouble last year without the government passing billions to Goldman via AIG.

If AIG had collapsed, it would have made it difficult for Goldman to liquidate its trading positions with AIG, even at discounts, the report said.

It also would have put pressure on other counterparties that "might have made it difficult for Goldman Sachs to collect on the credit protection it had purchased against an AIG default." Finally, the report said, an AIG default would have forced Goldman Sachs to bear the risk of declines in the value of billions of dollars in collateralized debt obligations.

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Reid's bill includes public option with opt-out and tax on "cadillac" plans

Senate Democrats are scheduled to hold a press conference at 6:30 PM to reveal details of their health insurance reform legislation. As noted below, the Democratic proposal will cost $849 billion, while reducing the deficit by $127 billion.

New details via Sam Stein, including the first indication that there is a public option:

Sen. Kent Conrad (D-N.D.) told reporters outside a caucus briefing that the bill includes a national public option with an opt-out provision for states, a tax on high-cost health insurance plans with an exemption for poor people and and those with high-risk jobs and language on abortion that does not go as far as Bart Stupak's amendment in the House.

The New York Times has more on the additional funding sources:

Though broadly similar to the House bill, Mr. Reid’s proposal is expected to differ in important ways. It is, for example, likely to increase the Medicare payroll tax on high-income people and to impose a new excise tax on high-cost “Cadillac” health plans offered by employers to their employees.

Labor opposes that excise tax as their members often negotiate for better benefits at the expense of higher salaries. Read More......

Reid presenting $849 billion health bill to Dem. caucus, cuts deficit by $127 billion over 10 years

The Senate Majority Leader, Harry Reid, is meeting with the Senate Democratic caucus to present the health insurance reform bill that should proceed to the Senate floor. Sam Stein has the very early report on the bill:

A preliminary analysis of the Senate health care legislation has the bill costing $849 billion over the next decade while covering 94 percent of eligible Americans, a senior Democratic aide told reporters on Wednesday afternoon.

In addition, Reid's office reports that his bill would "cut the budget deficit by $127 billion over the next 10 years."

Reid needs all 60 Democrats on board to move the bill forward -- a move that should happen within days. Ben Nelson (D-NE), one of the most conservative Democrats is sending signals that he's ready to vote for that. Then, the real work -- and the real games begin.

Once more details become available on Reid's bill, we'll post them. Read More......

Must see Rachel on the very real and growing threat from the right wingers

On the increasingly dangerous and "unhinged" rhetoric coming Republicans and their allies. It's ten minutes long, but watch if you haven't seen it. Frightening:

Visit msnbc.com for Breaking News, World News, and News about the Economy

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Working for the Moonie Times really did mean working for the Moonies

The Washington Times is THE paper of record for right-wingers and conservatives here in your nation's capitol. It's the print version of FOX News and constantly feeds the right wing noise machine. The editorials have been horrible and the paper is blatantly homophobic. And, it's owned by the Moonies.

There's trouble brewing over at the Moonie Times. Top executives have been fired or "resigned." But, this is the best story yet:

The former editorial page editor of the Washington Times has filed a discrimination complaint against the paper, saying he was "coerced" into attending a Unification Church religious ceremony that culminated in a mass wedding conducted by the church's leader, the Rev. Sun Myung Moon.

Richard Miniter, who was also vice president of opinion, made the claim in a filing Tuesday with the Equal Employment Opportunity Commission that also disclosed he was fired last month. He said in an interview that he "was made to feel there was no choice" but to attend the ceremony if he wanted to keep his job, and that executives "gave me examples of people whose careers at the Times had grown after they converted" to the Unification Church. A Times spokesman said the paper would not comment.

This could get really ugly. Can't wait. Read More......

'A fight between corporate megalomania and democratic capitalism'

The days of too big to fail better be numbered. It's hard to believe some on that list are increasing their salaries, as if they weren't compensated enough in recent years at the expense of everyone else. Why should regular, hard working Americans fund these bums? If they want to live an exclusive lifestyle, shouldn't they deliver something besides losses? CNBC.com:

"This really goes back to the concept that corporations now have been allowed to grow to such an extent that they actually are greater than any single government on Earth," Kanjorski said. "This is a fight between corporate megalomania and democratic capitalism."

Kanjorski subsequently told Reuters that the power to determine whether an institution is so big that it could endanger the system will reside with the Financial Services Oversight Council but require presidential consultation.

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Dems. now talking about short-cuts for final health bill. A "mini-conference" means a weaker final bill.

Over the course of the debate on health insurance reform, we've been told not to worry so much about what passes in the House and Senate, because it will all be fixed in the conference committee. Well, we're in the middle of November and have yet to see the Senate bill (although it's expected later today.) All the delays by Blue Dogs and conservative Democrats like Max Baucus and Kent Conrad taken a toll and have cost momentum. There's pressure to just get something done -- and when that kind of talk starts, it's never good. Now, there's talk that instead of a real conference committee, we might see a "mini-conference" of just leadership to get a bill done quickly. This news comes via Politico:

The most-talked-about shortcut is end-running the formal conference committee process in favor of some sort of mini-conference based out of the leadership offices. Hashing out differences between the House and Senate bills in conference could take weeks, but White House aides and congressional leaders doing the work behind the scenes could speed the process.

Democratic officials in the White House and Congress said they are envisioning an endgame similar to that of the $787 billion stimulus package. The House approved the stimulus on Jan. 28, and the Senate passed its version on Feb. 10. Three days later, despite dramatic differences, party leaders privately negotiated a compromise and passed it. The conference committee was largely a formality.

“The White House believes that this can still be done by the end of the year and that it is doable,” a senior White House official said Tuesday. “We think the looming challenges of a conference are mostly overplayed. We know what the big issues are.”

Yeah, they know what the big issues are. There's no indication that the White House will fight for key provisions like a strong public option. And, there will be enormous pressure to pass whatever bill emerges.

Another warning sign is the Senators who like the idea:

Senate Budget Committee Chairman Kent Conrad (D-N.D.) said a full-blown conference committee would take too long. The “preconference” model, which was used for the stimulus package and on other bills over the years, “is a way of shortening it,” Conrad said. “To me, it doesn’t get around the conference committee, but it does shorten it. I have no trouble with it.”

Indiana Sen. Evan Bayh, a Democratic moderate, said it’s one of the only ways to get a bill done by year’s end.

“If they have behind-the-scenes negotiations, go into the conference committee to keep up appearances, ... but it only lasted a day or two, and then it came back to both houses, you might be able to do that,” Bayh said, adding that a “full-blown conference” would be almost impossible to finish by Christmas.

This is worrisome on several levels. First, that Conrad and Bayh like the idea means it's dangerous for progressives. Also, the article keeps pointing to the stimulus bill. These same leaders used a similar process to jam through a weaker bill, closer to the Senate version. And, that didn't work so well. The stimulus package wasn't enough.

If there is a mini-conference, it means the much weaker Senate bill, which we'll see evolve over the next few weeks, will be not only the starting point, but the close to the final product, too. Read More......

Greedy Wall Street executive defends massive bonuses

Yeah, I know. Water is wet. Thain has to be one of the more repulsive slugs who slimed along on Wall Street. Even with the Merrill Lynch fiasco, he doesn't appear to have learned anything or changed at all. The sane world all disagrees with him but he still has wads of cash in his pockets from the high times. Somehow none of our modern robber-barrons took much of a financial hit after being sent packing. That sure was a lot of pay for absolutely no risk on their part.

Former Merrill Lynch Chief Executive John Thain, who was fired after a scandal over the payment of billions of bonuses to Merrill traders, argued on Tuesday that big payouts played no role in triggering the financial crisis.

Congress and various federal regulators have accused Bank of America of failing to adequately disclose various details about the Merrill merger to investors, including the payment of $3.6 billion of bonuses to Merrill staff in the fall of 2008.

"The focus on bonuses as the cause of risk-taking is just wrong," Thain told the Reuters Global Finance Summit in New York. "Bonuses did not cause excessive risk-taking and bonuses did not cause the financial crisis."

I wonder how his new office renovation plan is going now that it's on his dime. Read More......

Dump the sweetheart deal with drug makers, says NY Times

This summer, we learned that Billy Tauzin, the former Louisiana Congressman who knows is the chief lobbyist for the pharmaceutical industry, rolled the brain trust of Max Baucus, Rahm Emanuel and Jim Messina. Tauzin got a sweetheart deal for drug makers in the Senate's reform bill. Then, drug makers started raising prices anyway. Today's NY Times says enough already. The deal has to go:

Now come the price increases. As Duff Wilson reported in The Times on Monday, the industry has raised the wholesale prices of prescription drugs by about 9 percent in the past year. That appears to be the highest annual increase since 1992.

The industry contends that it must raise prices to finance research on new drugs, and that may hold some truth given the dearth of promising new drugs in the pipelines of major manufacturers. But the increases also look designed to establish a higher price base before reform bills, if passed, try to reduce drug spending.

The industry’s maneuver suggests that the Senate’s deal with the industry should be abandoned in favor of the much tougher demands in the reform bill passed by the House. The House bill requires rebates and discounts from drug makers that may save the government about $150 billion over 10 years, according to the chief actuary for the Center for Medicare and Medicaid Services. The House bill also authorizes the secretary of health and human services to negotiate with the companies to obtain lower prices for drugs sold to Medicare beneficiaries and to a new public plan if one is approved.

The government needs every penny it can get to help cover the uninsured. Given the industry’s last-minute price increases, it seems prudent to ignore the supposed deal and demand a greater contribution.

The deal never should have been cut in the first place. It has to go. Baucus, Emanuel and Messina should really put this mess behind them. Read More......

Wednesday Morning Open Thread

Good morning.

The President is heading to Seoul, South Korea today after wrapping up his visit to China. I'm sure Kim Jong-Il's ears will be burning as North Korea will be the primary topic of discussion.

And, as reported last night, the Senate Majority Leader is expected to present the health insurance reform bill to the Democratic caucus today. So, the games begin in earnest. Good thing Rahm Emanuel and Jim Messina gave so much leeway and control to Max Baucus in the first part of the year. That strategy has really worked so well. The Senate is beginning its debate in time for the Thanksgiving recess, not the August recess.

Let's get threading... Read More......

T-Mobile customer data stolen and sold

Stealing millions of customer details is bad enough but it's interesting to see that other vendors purchased the stolen data. Somehow the buyers of that data are being given a free pass. The stolen data was sent over to telemarketers who have been hammering away at clients since they have the full details on when their old contract expired. What could possibly go wrong there?

Personal details of thousands of mobile phone customers have been stolen and sold to rival firms in the biggest data breach of its kind, the government's privacy watchdog said today.

An employee of phone operator T-Mobile sold the customer records, including details of when contracts expired. The millions of items of information were sold on for "substantial sums", the Information Commissioner's Office (ICO) said. Rival networks and mobile phone retailers then tried to lure away T-Mobile customers by "cold calling".

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Global temperatures to rise dramatically by 2100

The numbers could easily get completely out of control, if they're not already on that path. An increase of almost 11 degrees Fahrenheit would make an enormous change but that would be the average. At the moment, the bloated numbers emissions numbers for US citizens are over two times the UK figure. During the recession the US numbers have fallen slightly though in China, the numbers are increasing quickly. China is still around a quarter of the US emissions. The problem is there but is the leadership ready?

Global temperatures are on a path to rise by an average of 6C by the end of the century as CO2 emissions increase and the Earth's natural ability to absorb the gas declines, according to a major new study.

Scientists said that CO2 emissions have risen by 29% in the past decade alone and called for urgent action by leaders at the UN climate talks in Copenhagen to agree drastic emissions cuts in order to avoid dangerous climate change.

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Does anyone really ever trust kebab shops?

A few years ago over here there were cats involved but thankfully not this. Since there's no comment yet on whether or not it was served, you have to wonder:

Russian police have arrested three homeless people suspected of eating a 25-year-old man they had butchered and selling other bits of the corpse to a local kebab house.

Suspicions were raised when dismembered parts of a human body were found near a bus stop in the outskirts of the Russian city of Perm, 1,150 km (720 miles) east of Moscow.

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