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WAG THE BANKS

Does Dodd-Frank's requirement that TBTF banks submit "funeral plans" open the door to dismantling the banks?

This morning I listened to the interview on Bloomberg of Jason Cave, head of the FDIC's new Office of Complex Financial Institutions. The jist of it was that the Fed and FDIC now have authority to delve into the complex structures of TBTF banks (others like Insurance,etc., to be named) and that the institutions must provide "Resolution Plans" to show how they would be broken up in the event they were judged to be in default or in imminent danger of defaulting.

WHISTLEBLOWN TO EXPOSE BANK OF AMERICA

In what is possibly a hoax, HuffPost, a sensationalist internet based rag sheet is reporting that WhistleBlownData intends to expose executives at the Bank of America early next year.  WhistleBlown has a cache of secret documents which will most likely reveal embarrassing comments and/or quasi-illegal actions on the part of executives--the name of CEO Ken Lewis comes to mind, although he has not been accused of anything seedy at the moment.

OBAMA STARS IN THE MUSICAL GYPSY

"Make em beg for more, and then don't give it to them": Mama Rose's advice to Louise.

You can uh, you can uh, you can uh...uh...uh

I have been uh uh uh frustrated with the messaging from Obama, let alone what he is actually doing as President. While the Republicans have the single message of "cut taxes" Obama seems to be all over the lot in his effort to be bipartisan. Progressives are baffled and/or angry. What does the President stand for?

AMERICAN DISSIDENT JAILED IN VERMONT

Sandy P. Woodchuck was taken into custody in Montpelier, Vermont late Friday night.

The Chief of Police, Sam Facteau, told reporters."He's being held under a Federal Sedition Statute" but mostly it's for his own safety. Since his You Tube post last week we got rednecks coming in here from all over the effing country. Not even in leaf peeping season have I seen this many out of state licenses--we're out of fuel, country store shelves are empty, people are sleeping in their pick-up trucks.

TUTORIAL IN A PACKAGE

Democrats and Progressives may have the best platform in a generation.

I accept the President's jobs compromise deal. The main reason is that it is, with old GOP support, an end run on the Tea Party whose aim is a continuation of the poor economy which spawned it. The package on the other hand gives assurances the economy will grow and gives Democrats a good shot in 2012. Bob Greenstein of CBPP estimated the package would take a full percentage point off unemployment--and without the package the uncertainty of getting any stimulus or unemployment benefits out of the new Congress could tip the economy back into a "double dip". By my calculations, 1% off unemployment is about 1.5 million people.I think of them as particularly vulnerable hostages.

The big question in my mind is what's next. Much depends on Obama's committment to regulate the financial industry and fend off Republican budget attacks which will be designed to undo every piece of progressive legislation since the New Deal. But leave Obama out of the picture and look at the package as a tutorial. Not in the sense of what Obama might have done right or wrong but in the sense of how the package demonstrates the essential guts of how the system works.

THE SHORT GAME AND THE LONG GAME

Obama took office in the midst of an economic crisis. I leave it to others to explain how in two years he might have impacted the high unemployment numbers and poor economy enough to stave off reversal in the midterm election. The fact is he is now facing a recalcitrant HR which will be levered by the Tea Party who want to see the economy fail. Chaos and high unemployment are fertile fields for the Tea Party. It is the purpose of the Tea Party to prevent stimulus and to enact contractionary policies where possible.

OTHER WORLDS IN MONO LAKE

When my knees were younger and the VW camper hadn't yet blown its engine for the 3rd time I made an annual trip up Rt. 395 from the bowels of L.A. to the Mammoth Mtn. area of California. The purpose was to back pack and hike in the Eastern Sierras, but the first stop was at Mono Lake. The lake is, well, other worldly. Alien features like the spikey "tufas" give it a lunar quality. T

THE FBI AND OTHER RAYS OF HOPE

Today was a significant day in the fight against the financial oligarchy. I'll summarize it the best I can, not being a lawyer or an insider. I have a keen interest in today's events not only as an Obama supporter but in terms of my own investment objectives and strategy.

LOVE SANDWICH FOR OBAMA

Mr. President, you are the most intelligent and classy political figure I've seen in my lifetime.

Mr. President, if you squander this opportunity to reform the banks and Wall St. I will join in a primary challenge to your re-election.

Mr. President, you can seize an historic moment.

The populace is feeling two emotions which are related but separate. One is a sense of unfairness. The other is the gut knowledge that the system is rigged. The sense of fairness is relative: a moderately well off person thinks his taxes are unfair, but so do the poor and the wealthy.

FINANCIAL REFORM--THE SPECTACLE

Watching Elizabeth Warren on Maddow last night I was uplifted by the power of her demeanor and her spectacular delivery--"they lost". She showed more backbone in those two words than the whole Obama team did in two years of pontificating.

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