SEC approve Suspending Money Markets in a Panic

Zero Hedge discussed a month ago the disastrous prospects of what would happen if the new proposal contemplated by the SEC, which would allow the suspension of redemptions from Money Market Funds, were to pass. Well, in a nearly unanimous vote, Money Market Funds now have the ability to suspend redemptions, courtesy of the SEC’s just passed 4-1 vote. This explains the negative rate on bills: at this point, should there be another meltdown, money market investors will not, repeat not, be able to withdraw their money purely on the whim of Mary Schapiro. As the SEC noted: “We understand that suspending redemptions may impose hardships on investors who rely on their ability to redeem shares.” Too bad investors’ hardships considerations ended up being completely irrelevant.

Click HERE to read the documents

Published in: on January 27, 2010 at 10:24 am  Leave a Comment  
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Senate likely to reject new deficit cutting task force

The Senate on Tuesday rejected a plan backed by President Barack Obama to create a bipartisan task force to tackle the federal deficit this year, despite glaring new figures showing the enormity of the red-ink threat.

The special deficit panel would have attempted to produce a plan combining tax increases and spending curbs to be voted on after the November elections. The measure went down because anti-tax Republicans joined in opposition with Democrats wary of being railroaded into cutting Social Security and Medicare.

With Congress unwilling to go along, Obama will announce during Wednesday’s State of the Union address that he is establishing a similar panel by executive order, The New York Times reported late Tuesday on its Web site.

They need to start somewhere. This one, albeit too little too late, I’m on O-mans side.

Published in: on January 27, 2010 at 9:56 am  Leave a Comment  
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Obama critizied McCain about freeze on govt spending, now he says ‘Thanks for the idea!’

The freeze would take effect in October and limit the overall budget for agencies other than the military, veterans affairs, homeland security and certain international programs to $447 billion a year for the remainder of Obama’s first term, senior administration officials said Monday, imposing sharp limits on his ability to begin initiatives in education, the environment and other areas of domestic policy.

Although the freeze would shave no more than $15 billion off next year’s budget — barely denting a deficit projected to exceed $1 trillion for the third year in a row — White House officials said it could save significantly more during the next decade. They described the freeze as a critical component of a broader deficit-reduction campaign intended to restore confidence in Obama’s ability to control the excesses of Washington and the most lavish aspirations of his own administration

It is also unlikely to affect the approximately $900 billion health-care bill, which has been on life-support since the Massachusetts vote. In an interview with ABC News on Monday, Obama vowed to press ahead with health care and other first-year agenda items, even it means jeopardizing his reelection chances in 2012.

Late Monday, Republicans mocked the idea of a Democratic spending freeze. “Given Washington Democrats’ unprecedented spending binge, this is like announcing you’re going on a diet after winning a pie-eating contest,” said Michael Steel, spokesman for House Minority Leader John A. Boehner (R-Ohio).

Democrats, meanwhile, are likely to give the freeze a mixed response. Conservatives, including Sen. Evan Bayh (Ind.) and members of the House Blue Dog Coalition, have been calling for a freeze backed by the threat of a presidential veto. But liberals have resisted freezing spending, particularly on social programs, and are likely to call on Obama to extend any freeze to military programs, aides said.

As a candidate, Obama criticized a spending freeze proposed by his GOP opponent, Sen. John McCain of Arizona, comparing it to “using a hatchet to cut the fed budget. I want to use a scalpel.”

I guess that scapel got buried in Wall Street.

Published in: on January 26, 2010 at 2:23 pm  Comments (1)  
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So how much exactly do we owe? $12,245,872,000,000

And here I was worried about my mortgage and cc debt

WASHINGTON (AP) —

Figures on government spending and debt (last six digits are eliminated). The
government’s fiscal year runs Oct. 1 through Sept. 30.
Total public debt subject to limit Jan. 22 12,245,872
Statutory debt limit 12,394,000
Total public debt outstanding Jan. 22 12,302,465
Operating balance Jan. 22 142,454
Interest fiscal year 2009 383,365
Interest fiscal year 2008 451,154
Deficit fiscal year 2009 1,417,121
Deficit fiscal year 2008 454,798
Receipts fiscal year 2009 2,104,613
Receipts fiscal year 2008 2,523,642
Outlays fiscal year 2009 3,521,734
Outlays fiscal year 2008 2,978,440
Gold assets in September 11,041

Published in: on January 26, 2010 at 8:37 am  Leave a Comment  
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Obama has no business sense?

U.S. investors overwhelmingly see President Barack Obama as anti-business and question his ability to manage a financial crisis, according to a Bloomberg survey.

The global quarterly poll of investors and analysts who are Bloomberg subscribers finds that 77 percent of U.S. respondents believe Obama is too anti-business and four-out-of-five are only somewhat confident or not confident of his ability to handle a financial emergency.

The poll also finds a decline in Obama’s overall favorability rating one year after taking office. He is viewed favorably by 27 percent of U.S. investors. In an October poll, 32 percent in the U.S. held a positive impression.

Well, Im here to tell you, that perhaps you all have no business sense either, if you could not see what was spewing out of his mouth during the election plus what was on his resume, then you are as mush as a bunch of business idiots as he is.

Carlos Vadillo, a fixed-income analyst at Wells Fargo Securities LLC in San Francisco, said Obama has been in a “constant war” with the banking system, using “fat-cat bankers and other misnomers to describe a business model which supports a large portion of America

Published in: on January 22, 2010 at 11:28 am  Leave a Comment  
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Great Scott! What’s in his pants? Welcome to the Senate Mr.Centerfold

Unless you have had your head under a rock, you know Scott Brown is the winning candidate for the senate seat of Massachusetts, and in case you really are one of those people that have had their head under a rock, the seat was previously held by Ted Kennedy for 30something yrs who was a Democrat and Scott Brown is a Republican.

Which brings me to my point…

Did the Dems wake up this morning and say “Oh its all Coakley’s fault, lets still move ahead” as one of Obama’s top aides suggested yesterday by saying “Campaigns and candidates matter.” or did they wake up and say “Perhaps we should take a good long hard look at ourselves in the mirror and “change” the way we have been running things?”

Or as White House senior adviser David Axelrod told POLITICO: “I think that it would a terrible mistake to walk away now. If we don’t pass the bill, all we have is the stigma of a caricature that was put on it. That would be the worst result for everybody who has supported this bill.” He said the administration will work with Capitol Hill to figure out how and even Obama’s former campaign manger, David Plouffe, added on ABC’s “Good Morning America”: “I’m very confident we can pass health-care reform.”

But on the flip side of all of this, why the Republicans are basking in the glory (Holy crap we have someone on our side that has charisma, is young and can make jokes), do they understand that perhaps Scott Brown was elected because he is not a true Republican, in fact he began the race as an independent and then switched to a republican ticket and that most Republicans don’t want someone who is ‘conservative’, but someone who is fiscally conservative and socially liberal….as I’m sure most Democrats do as well. I think the election results considering Obama took the state by 26 points shows that people care really more about the Libertarian, not the Republican or the Democrat.

But the question is: Will either side see it or continue to run the same way as they both have been for years?

Why you ponder this question, Ladies enjoy the pic below.

Welcome to the Senate Mr Centerfold

Ali Hassan al-Majid a.k.a Chemical Ali sentenced to death

One of Saddam Hussein’s most loathed henchman, Ali Hassan al-Majid, otherwise known as Chemical Ali, will be hanged within days, a senior official said tonight.

Good.

The former spy chief and first cousin of Saddam was today sentenced to death for ordering the slaughter of more than 5,000 Kurds in the northern Iraqi town of Halabja with chemical weapons in 1988.

“We will receive Chemical Ali from the Americans in the next few days and he will be executed very soon afterwards,” said Ibrahim. Majid was sentenced by Iraq’s high criminal court. All remaining prosecutions he faces are now expected to be set aside

Published in: on January 18, 2010 at 9:44 am  Leave a Comment  
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