Financial crisis a democratic scandal....sm

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(CNN) � The global economy may be undergoing a significant downturn, but the White House's dinner budget still appears flush with cash.

After all, world leaders who are in town to discuss the economic crisis are set to dine in style Friday night while sipping wine listed at nearly $500 a bottle.

According to the White House, tonight's dinner to kick off the G-20 summit includes such dishes as "Fruitwood-smoked Quail," "Thyme-roasted Rack of Lamb," and "Tomato, Fennel and Eggplant Fondue Chanterelle Jus."

To wash it all down, world leaders will be served Shafer Cabernet �Hillside Select� 2003, a wine that sells at $499 on Wine.com.

The exceedingly pricey wine may seem a bit peculiar given leaders are in Washington to discuss a possible world financial meltdown, but Sally McDonough, a spokeswoman for Laura Bush, said it "was the most appropriate wine that we had in the White House wine cellar for such a gathering.

McDonough also said the White House purchased the wine at a "significantly lower price" than what it is listed at.

"Of course the White House gets its wine at wholesale prices," she said. "Given the intimate size of the group, it was an appropriate time for The White House to use this stock."

The leaders of the U.K., France, Russia, China, India, Brazil, Saudi Arabia, South Africa, Turkey and 11 developing economies have all come to Washington at the behest of President Bush in an effort to express confidence in the fundamental underpinnings of the world's economy.

Part of article on AIG and what they are really doing - pretty interesting.....for full excerpt goto: http://www.truthout.org/031809R

Former US Treasury Secretary Henry Paulson (pictured), then-New York Fed official Timothy Geithner, Goldman Sachs CEO Lloyd Blankfein and Fed Chairman Ben Bernanke made the initial decision to bail out AIG. (Photo: Elizabeth Dalziel / AP)

It's not the bonuses. It's that AIG's counterparties are getting paid back in full.

Everybody is rushing to condemn AIG's bonuses, but this simple scandal is obscuring the real disgrace at the insurance giant: Why are AIG's counterparties getting paid back in full, to the tune of tens of billions of taxpayer dollars?

For the answer to this question, we need to go back to the very first decision to bail out AIG, made, we are told, by then-Treasury Secretary Henry Paulson, then-New York Fed official Timothy Geithner, Goldman Sachs CEO Lloyd Blankfein, and Fed Chairman Ben Bernanke last fall. Post-Lehman's collapse, they feared a systemic failure could be triggered by AIG's inability to pay the counterparties to all the sophisticated instruments AIG had sold. And who were AIG's trading partners? No shock here: Goldman, Bank of America, Merrill Lynch, UBS, JPMorgan Chase, Morgan Stanley, Deutsche Bank, Barclays, and on it goes. So now we know for sure what we already surmised: The AIG bailout has been a way to hide an enormous second round of cash to the same group that had received TARP money already.

SURPRISE! huh? http://www.truthout.org/031809R

Over the weekend, John McCain's top adviser announced their plan to stop engaging in a debate over the economy and "turn the page" to more direct, personal attacks on Barack Obama.

In the middle of the worst economic crisis since the Great Depression, they want to change the subject from the central question of this election. Perhaps because the policies McCain supported these past eight years and wants to continue are pretty hard to defend.

But it's not just McCain's role in the current crisis that they're avoiding. The backward economic philosophy and culture of corruption that helped create the current crisis are looking more and more like the other major financial crisis of our time.

During the savings and loan crisis of the late ྌs and early ྖs, McCain's political favors and aggressive support for deregulation put him at the center of the fall of Lincoln Savings and Loan, one of the largest in the country. More than 23,000 investors lost their savings. Overall, the savings and loan crisis required the federal government to bail out the savings of hundreds of thousands of families and ultimately cost American taxpayers $124 billion.

Sound familiar?

In that crisis, John McCain and his political patron, Charles Keating, played central roles that ultimately landed Keating in jail for fraud and McCain in front of the Senate Ethics Committee. The McCain campaign has tried to avoid talking about the scandal, but with so many parallels to the current crisis, McCain's Keating history is relevant and voters deserve to know the facts -- and see for themselves the pattern of poor judgment by John McCain.

The point of the film and the web site is that John McCain still hasn't learned his lesson.

And this time, McCain's bankrupt economic philosophy has put our economy at the brink of collapse and put millions of Americans at risk of losing their homes.

Watch the video to see why John McCain's failed philosophy and poor judgment is a recipe for deepening the crisis:

http://my.barackobama.com/keatingvideo

It's no wonder John McCain would rather spend the last month of this election smearing Barack's character instead of talking about the top priority issue for voters.

It's long (13 minutes) but information every voter should know.

Dyncorp and Halliburton Sex Slave Scandal Won't Go Away
Halliburton, Dyncorp lobbyists stall law banning human trafficking and sex slavery

Almost a year after Representative Cynthia McKinney was told by Donald Rumsfeld that it was not the policy of the Bush administration to reward companies that engage in human trafficking with government contracts, the scandal continues to sweep up innocent children who are sold into a life of slavery at the behest of Halliburton subsidiaries , Dyncorp and other transnational corporations with close ties to the establishment elite.

On March 11th 2005, McKinney grilled Secretary Rumsfeld and General Myers on the Dyncorp scandal.

Mr. Secretary, I watched President Bush deliver a moving speech at the United Nations in September 2003, in which he mentioned the crisis of the sex trade. The President called for the punishment of those involved in this horrible business. But at the very moment of that speech, DynCorp was exposed for having been involved in the buying and selling of young women and children. While all of this was going on, DynCorp kept the Pentagon contract to administer the smallpox and anthrax vaccines, and is now working on a plague vaccine through the Joint Vaccine Acquisition Program. Mr. Secretary, is it [the] policy of the U.S. Government to reward companies that traffic in women and little girls?

Rumsfeld: Thank you, Representative. First, the answer to your first question is, is, no, absolutely not, the policy of the United States Government is clear, unambiguous, and opposed to the activities that you described. The second question.

McKinney: Well how do you explain the fact that DynCorp and its successor companies have received and continue to receive government contracts?

Rumsfeld: I would have to go and find the facts, but there are laws and rules and regulations with respect to government contracts, and there are times that corporations do things they should not do, in which case they tend to be suspended for some period; there are times then that the - under the laws and the rules and regulations for the - passed by the Congress and implemented by the Executive branch - that corporations can get off of - out of the penalty box if you will, and be permitted to engage in contracts with the government. They're generally not barred in perpetuity.

Rumsfeld: I'm advised by DR. Chu that it was not the corporation that was engaged in the activities you characterized but I'm told it was an employee of the corporation, and it was some years ago in the Balkans that that took place.

Rumsfeld's effort to shift the blame away from the hierarchy at Dyncorp and onto the Dyncorp employees was a blatant attempt to hide the fact that human trafficking and sex slavery is a practice condoned by companies like Dyncorp and Halliburton subsidiaries like KBR.

What else are we to assume in light of recent revelations cited in the Chicago Tribune that Halliburton subsidiary KBR and Dyncorp lobbyists are working in tandem with the Pentagon to stall legislation that would specifically ban trafficking in humans for forced labor and prostitution by U.S. contractors?

Three years has now elapsed since President Bush's promise to bring an end to this disgrace and the Pentagon is still yet to actually bar the practice.

And the employees themselves that are burned for blowing the whistle, like Kathryn Bolkovac who was sacked for reporting on Dyncorp officials who were involved in the Bosnian sex trade.

Illinois Governor Rod Blagojevich is one of very few representatives in high office aside from Cynthia McKinney to demand answers on this issue.

We applaud Blagojevich's eforts. The iron curtain of official denial and soft-peddling is falling down.

What has happened to the children who were sold into slavery and forced to satisfy the demands of sick pedophiles working on behalf of the US government?

Where were the investigations and convictions in other cases of establishment orchestrated child slavery and prostitution? Like the NATO officials responsible for the mushrooming of child prostitution in Kosovo?

In addition, we received an E mail from a person claiming to be a Dyncorp employee stating that a high level Dyncorp official is breaking the law by accepting payment from the US government and in turn the American taxpayer by falsifying timesheets and claiming pay for hours not worked.

The contact states that this was repeatedly brought to the attention of DynCorp program managers by Dyncorp employees but they were told it was none of their business.

It is important to stress that at the moment these are allegations and we have no proof of this other than the validity of the e mail.

The e mail is a reminder that we should always consider the fact that the vast majority of Dyncorp employees are just doing their jobs and have nothing to do with this scandal. It is a small faction at the head of the hydra that have authorized and engaged in these horrors.

We have a government that says it doesn't advocate torture and yet tries to block a law that would end torture. We have a government that repeatedly burns lower level minions to wash its hands of every major scandal that encompasses policies directly administered by the government itself, as in the case of Abu Ghraib and the Dyncorp sex scandal.

A government that covers-up for those who force children into prostitution and slavery is a clear danger to our very way of life.

We must demand answers and finally put an end to a process that exploits and wreaks terror on the lives of the most innocent and vulnerable members of society, whether they be in the Balkans, East Timor or here at home.

November 7, 2008

President-elect Barack Obama's newly appointed chief of staff, Rahm Emanuel, served on the board of directors of the federal mortgage firm Freddie Mac at a time when scandal was brewing at the troubled agency and the board failed to spot "red flags," according to government reports reviewed by ABCNews.com.

According to a complaint later filed by the Securities and Exchange Commission, Freddie Mac, known formally as the Federal Home Loan Mortgage Corporation, misreported profits by billions of dollars in order to deceive investors between the years 2000 and 2002.

Emanuel was not named in the SEC complaint (click here to read) but the entire board was later accused by the Office of Federal Housing Enterprise Oversight (OFHEO) (click here to read) of having "failed in its duty to follow up on matters brought to its attention."

In a statement to ABCNews.com, a spokesperson said Emanuel served on the board for "13 months-a relatively short period of time."

The spokesperson said that while on the board, Emanuel "believed that Freddie Mac needed to address concerns raised by Congressional critics."

Freddie Mac agreed to pay a $50 million penalty in 2007 to settle the SEC complaint and four top executives of the Federal Home Loan Mortgage Corporation were charged with negligent conduct and, like the company, agreed to settle the case without admitting or denying the allegations.

The actions by Freddie Mac are cited by some economists as the beginning of the country's economic meltdown.

The federal government this year was forced to take over Freddie Mac and a sister federal mortgage agency, Fannie Mae, pledging at least $200 billion in public funds.

Freddie Mac records have been subpoenaed by the Justice Department as part of its investigation of the suspect accounting procedures.

Emanuel was named to the Freddie Mac board by President Bill Clinton in 2000 and resigned his position when he ran for Congress in May, 2001.

Freddie Mac Misrepresented Income, Says SEC

During the years 2000, 2001 and 2002, according to the SEC, Freddie Mac substantially misrepresented its income to "present investors with the image of a company that would continue to generate predictable and growing earnings."

The role of the 18-member board of directors, including Emanuel, was not addressed in the SEC's public action but was heavily criticized by the oversight group (OFHEO) in 2003.

The oversight report said the board had been apprised of the suspect accounting tactics but "failed to make reasonable inquiries of management."

The report also said board members appointed by the President, such as Emanuel, serve terms that are far too short "for them to play a meaningful role on the Board."

As a Congressman, Emanuel recused himself from any votes dealing with Freddie Mac until just this year.

In dealing with the nation's economic crisis, the new White House chief of staff will almost certainly be involved in discussions about the house and mortgage markets.

Emanuel's spokesperson said, "As White House chief of staff he will work with President-elect Obama and his economic advisers to help ensure we protect taxpayers and homeowners."

Two days ago on C-Span they seemed to congratulate the bigwigs of the financial companies who got BILLIONS in BONUSES. They ran down the list of those that were being questioned and how much they received. It's absolutely sickening. I had to turn it off.

for quite some time for just such a thing. We haven't spent foolishly or lived above our means. New toys and technology don't impress us much. We have been fortunate and blessed.

SUGGESTED SOLUTION TO CARMAKER'S CRISIS, AS WELL AS SOME ENVIRONMENTAL ISSUES

Maybe I've gone off the deep end - but I'm so sick of hearing about the big 3 bailout requests I've come up with a serious suggestion to help them.

I think its environmentally, morally, and financially irresponsible for the government to give tax breaks to those who buy NEW cars (much less bail out the manufacturers). The majority can't afford them anyway (or can't guarantee they'll have a job to make payments on them tomorrow), and we already have enough cars! Backyards and junk yards are full of cars because we can't get parts for them! How many economy cars that were good on gas are sitting in junkyards - because we don't have the parts to keep 'em on the road?

Why can't we get parts? The greedy corporate suits in Detroit figured if we couldn't get them, we'd be forced to buy new cars whether we wanted to or not! So they won't make them. I guess their plan didn't work, because when we bought new cars, we bought them from someone else.

I believe replacement parts manufacturing can be profitable - as the few little companies that make replacement parts for classic cars can prove. It might not restore the bonus of every deprived CEO in Detroit, but it could save quite a few line jobs. There is no longer a big market for new cars - but there's a constantly growing market for replacement parts. Its better than continuing the denial that Detroit has been in for the last decade - clinging stubbornly to the myth that we LIKE what they make, that we WANT it, and that we can AFFORD it, and that every one of us pines away for shiny new giant gas-guzzler in our driveway. We like what they USED to make, the muscle cars, the economy cars, the cars that were our sentimental favorites back in the day, when cars didn't cost the price of a house, and lasted longer than the 5 year warranty! They still have the blueprints to make the parts for those models, as well as parts for later-model cars past their warranty. That's what we want, what we can afford - and the sheer volume of parts purchased would make them a profit as well as helping the little guy with bad credit survive. Not everyone can get a loan for a new car - or even a used one - but those that can't could probably come up with the price of a needed part

I propose we reduce the production of new cars drastically. Instead we revamp a large number of our factories to manufacture parts for the cars that already exist (if we really MUST bail out the big 3, let's insist they put the money toward this). Alternatively, we insist that for every new car they manufacture - they must manufacture a certain number of essential repair parts for their discontinued models (which, according to recent news - will be most of them). This creates jobs, renews the jobs at some of the small non-union subcontracting plants that had to close when told to stop making the parts, or at least saves the jobs of UAW workers who were making unwanted new cars. Let them close their dealerships - but keep the dealer repair shops open. We then give tax credits for anybody who takes classes on repair - this creates jobs, as more people would rather fix it versus junk it (and can certainly afford the part easier than a whole new car). We give tax credits to anyone who gets a non-running vehicle operational again, we give tax credits for anyone who opens a repair/refurbishment shop, we give tax credits to junk yards that reduce their scrap heaps. Much better than a tax credit encouraging people to take on even more debt for a new car!

If some of elderly vehicles are unsafe by today's standards, we could manufacture parts that make them safer and update them, depending on the needs of each model. Surely the powers that be could run a scan for every VIN and get the statistics for how many models of each are currently still on the road (just like they do when there's a safety recall), and decide from there on whatever issues need addressed.

We should also consider legislation that insurance companies stop totalling vehicles without proof that their repair will be more expensive than a new car. "What a car is worth" needs to be restructured - what is the environmental/financial impact of junking it worth - the cost of a new one? If an old paid-off car ran perfectly fine before the wreck - should it be totalled because the damages came to a couple bucks more than the Blue Book value? I really don't think so! In this economy, having a paid-off vehicle with the option of keeping minimal insurance on it is nearly priceless!

We found out during the last couple years that we really can't afford a brand new McMansion, and we don't actually need one either, and we're much better off with less house than our budget can stretch to cover. Many of us know the same thing about the brand new car, but we don't have a choice because we can't fix the old one, and can't trust that the used one we buy will have parts available for it when it breaks down. That needs to change. We need more cost-effective options and we WANT the choice of fixing what we already paid for, instead of being forced to buy ever-more expensive brand new ones again and again and stuffing the landfills indefinitely!

My solution also applies to large appliances. Our landfills are full of them! The manufacturers of refrigerators, washers/dryers, riding lawnmowers, etc. should be required to produce a set number of repair parts for their older models - instead of making commercials about a lady throwing her old one off a cliff simply because she's tired of it!

Do we really want to be a nation of salesmen and consumers? I think we'd have more pride, strength and better ability to make it through these hard times if we replaced our salesmen with repairmen, blind consuming with sensible choices, and learn to one-up the Joneses with how much we saved from the landfill instead of how much we spent. Let's stop planned obsolescence and let the companies that refuse to give up the practice go belly up! They deserve it - they are trashing the environment as well as ripping off their customers - deliberately manufacturing products to break down in a couple years is just morally wrong. Lets make if fashionable to preserve and restore instead of consume and discard! I hope I'm not the only one that's tired of this - so is anybody with me on this? If you're in favor spread the idea! Discuss this with everybody!

9. Ridicule. In an interview with the Washington Post on 07/9/2008, McCain advisor and national campaign general co-chair Senator Phil Gramm was defining McCain's plans to reform the U.S. economy. Gramm explained the nation was not in a recession, stating, "You've heard of mental depression; this is a mental recession," and "We have sort of become a nation of whiners, you just hear this constant whining, complaining about a loss of competitiveness, America in decline." This would be the same Phil Gramm of the Gramm-Leach-Bliley Act which allowed commercial and investment banks to consolidate. The legislation allowed Swiss Bank UBS to purchase several American institutions. Gramm later became a lobbyist for UBS, collecting over 750,000 USD in fees. UBS alone issues over 18 Billion USD in subprime mortgages.

8. Denial. Black Monday, 09/15/2008. John McCain: "The fundamentals of our economy are still sound." A worldwide stock market crash occurred as Lehman Brothers filed Chapter 11 bankruptcy and major investment bank Merrill Lynch was sold to Bank of America. Dow Jones Industrial Average lost more than 500 points, which is the biggest point drop (up to that point) since September 2001. FTSE 100 dropped 212 points, and it was the biggest one-day percentage drop since January 21, 2008. Hong Kong, Japan and Korea stock market suspended that day due to public holiday, and they fell over 5% on the following day. Two weeks later, we had a blacker Monday (09/29/2008) with a 777.68 point drop on the Dow Jones Industrial Average.

7. Political grandstanding. Announcement of suspending his campaign to return to DC to "lead" Congress during economic bail-out negotiations. This effort led to a defeat of the measure when the votes were cast. Tried unsuccessfully to use the bailout as an excuse to postpone the presidential debate.

5. Incoherence. Threatens to fire the chairman of the SEC if he were in office, even though the president does not have the authority to do so.

4. Theft of intellectual property. Claiming previously existing mortgage buy-out proposal as his own.

3. Avoid / change the subject. Greg Strimple, a McCain top advisor: If we keep talking about the economy, we will lose."

2. Engage the politics of division, hate, fear mongering and cultural warfare with high-gear Obama smear campaign: Ayers, ACORN, Farrakhan, Rev Jeremiah Wright, Barack Hussein Obama, etc.

1. McCain�s send message to voters is to stop whining about the economy and start focusing on attacking Obama.

Financial crisis a democratic scandal....sm

Source to Stephanopoulos: President Bush Directly Involved In Leak Scandal

Emanuel Was Director Of Freddie Mac During Scandal

New Obama Chief of Staff, Others on Board, Missed "Red Flags" of Alleged Fraud Scheme

Freddie Mac Misrepresented Income, Says SEC