Greenspan and Cox. We have it on good authority Big G will be showing up wearing the accessory at left. Stay tuned.
10:11: Rep. Mica and Waxman bitching at each other. Waxman talks over him.
Mica: "This hearing is being hijacked."
Objectively speaking, Waxman seems like a total dick.
Greenspan:
10:13: Greenspan looks a little scared but hopefully that's just a fake out for his opening line, "This never would've happened if I were still King."
10:15: Greenspan announces that he plans on "running over an extra few minutes."
10:16: "We are in a once in a lifetime tsunami."
"I raised concerns in 2005. The crisis has turned out to be much broader than anything I could have expected."
"We need to stabilize home prices." Then, we thaw. Everything will be as it should, and I will come out of retirement to take over for Gilligan, who's proven he can't be trusted.
"To avoid retrenchment, we need the substitution of sovereign credit for private credit."
Something about Black-Scholes not being dead.
10:24: When we get out of this, "investors will be chastened."
Cox:
10:25: "The SEC is different than the Fed....the SEC sets the rules...the SEC is a law enforcement agency."
For those of you keeping score: market rallies lightly when Greenspan testifies, sinks when Cox grabs the mic. Big Poppa's still got it.
10:30: The SEC is using its new authority "to strengthen the ratings process."
John Snow:
The former Treasury Secretary is glad to finally see that people get this shit is serious.
"I tried to keep my eye on risks when I was working in Washington."
"I gave countless speeches."
"I held meetings."
"I called for:
- A strong regulator
- Disclosure
- A regulator who could limit the lines of business they get into
- A regulator who would have authority over capital standards
- A lovely cheese pizza, just for me"
Market rallies slightly with Snowball
Questions:
Waxman takes 5 minutes to say that Greenspan wanted less regulation. "My question is, were you wrong?"
AG: Partially...it's important to distinguish the size of this problem and its nature.
Waxy: Okay, where were you wrong then?
AG: I made a mistake in presuming that the self-interest of organizations, mostly banks, were such that they were best capable of protecting their own shareholders.
Market rallies when Greenspan admits he might have been sort of (but not really) wrong.
Waxy: Paul Krugman has basically blamed you for everything. Thoughts?
AG: Let me give you a little bit of history. [Big Poppa- that's me- has never been wrong. Not once, not twice, not ever. I don't now what some little shit at the Times has been writing, and frankly, I don't care. I stopped reading my press probably 20 years ago.]
AG and Waxy debate the definition of 'ideology.'
Waxman, for like, the 3rd time in the last ten minutes, brings up the fact that they need to move on because they're pressed for time. Not taking sides here, but what the fuck? You don't invite a man who strives to take 90 minutes to say what a normal person would get through in two and then ask him to speed things up. Let him cut into Man-Boy's time.
A call for new, hackneyed analogies, please. 10:55: Rep. Davis to Cox: You basically legalized gambling.
John Snow pops in: "it seems to me that the problem here is risk." Apparently the people participating in this here crisis were like "blind men touching an elephant."
11:02: Jesus christ this is lame. Leave it to the Hill to make an appearance with the Preacher boring. I only hope that they've got Rep. Rosa DeLauro chewing on a piece of leather in a side room, getting ready to unleash the Crazy. And that they bring up IMs between Fed personnel.
11:04:Senator Feinstein is a long-time "friend" of AG. Finally, we're getting somewhere.
11:12Rep. Mica: It's a shame that this hearing has been hijacked and we won't find out who the real culprits are until November 20th.. Then, I shit you not, tapes a sheet of paper that says "NOVEMBER 20" in front of his microphone.
"Okay, the three of you: who's the biggest subprime producer in the United States? WHO?!"
-Countrywide
"Did the three of you know people were getting preferential loans from his Master of Orange?"
- No
"I bet you're thinking Dodd. No. OBAMA."
11:15: Mica, whose voice is starting to crack, demands to know if "you three" think people should go to jail for this. Preacha won't answer, Cox says the SEC is working on it.
11:19: The troika agrees that Fannie Mae and Freddie Mac "played a role in the problem."
11:20: Mica asks, "Did you know Fannie Mae was cooking the books so they could get bonuses in tens of millions of dollars? Did you know that? Did you know that Mr. Snow" [points to Snowball]. "Did you know that they were cooking the books? Did you know that?" I'm no political strategist but Mica needs to get a hold of himself. His voice is shaking and he seriously sounds like he's about to start crying. Which, actually, would be awesome and liven this shit up a bit, so I withdraw my advice.
11:21: Score one for Mica-- first instance of "LAY-MEN" today.
11:24: Rep. Elijah Cummings (D-MD), who I love, brings up the fact that McCain said if he were prez, he'd fire Cox. Awk. Asks why he dragged his ass on this thing.
Cox: Well...the problem has grown...also, we don't have the authority to regulate credit default swaps...so...
Cummings: What happened to the risk task force? WHAT?
Cox: [paraphrasing] Nothing, it's still winning it
Cummings: We have been told by your staff that you failed to support the task force. What do you say to that?
11:33: Re: punishing the perps of this disaster, Greenspan feels "the markets have already punished them. Have you seen the ass raping that hedge fund in Chicago's been taking? That's worse than any prison fantasy I could ever cook up, and you know I'm a sick fuck."
11:35 Elfin' Rep Dennis Kucinich: "You've acquitted yourself as a spectator, but not as a participant, Mr. Greenspan." Then reads a speech made by the Doc about how the housing market was a-okay.
Greenspan says that he showed up at a dinner of "1,000 people" a week later saying he was wrong about the housing market crap, which has got to count for something.
Kucinich: "Um, but at said dinner, you said 'I'd reproduce that speech word-for-word today.' "
Greenspan stresses that he's always said the 30 year mortgage was the best, and the ARM is for suckas.
Kucinich to the woman next to him: "He hasn't addressed the question."
Two minute staring contest between AG and DK.
11:46: John Snow feels the need to add again that "the problem here is risk."
11:48:Greenspan: "I just want to say, we observe failure of regulation all the time. It's all based on forecasting, it's never going to be accurate."
11:56: This whole thing is devolved into a circle jerk. Rep. Tom Davis: "Everyone is responsible. You, us, New York."
11:58: Cox feels comfortable saying that there's room for improvement.
12:12: Rep. Bilbray: "So basically this is like the 9/11 Commission?"
Greenspan: "I'm not going to respond to that."
12:13: Rep John Yarmuth (D-KY): "With all apologies to my NE colleagues I feel like I'm looking at 3 Bill Buckners (sp?) who let the ball go through his legs and costs his team the championship. All of you let the ball go through your legs; you didn't want to let the ball go through your legs but it got through your legs. It's important to find out why it went through your legs. There's something fundamentally wrong with the way you three played the ball."
Posted by diablo , Oct 23, 2008 10:08AM
EP should cover whatever Greenspan says. Like this (from Bloomberg):
Former Federal Reserve Chairman Alan Greenspan called for tighter regulation of financial companies, distancing himself from the free-market culture that he helped to create.
Firms that bundle loans into securities for sale should be required to keep part of those securities, Greenspan said in prepared testimony to the House Committee on Oversight and Government Reform. Other rules should address fraud and settlement of trades, he said. Greenspan's office released the text ahead of the hearing scheduled for 10 a.m. in Washington....
Today, the former chairman asked: ``What went wrong with global economic policies that had worked so effectively for nearly four decades?'' During his term at the Fed's helm, Greenspan repeatedly warned lawmakers against inhibiting markets, such as by tightening oversight of certain types of derivatives.
Greenspan, reiterated his ``shocked disbelief'' that financial companies failed to execute sufficient ``surveillance'' on their trading counterparties to prevent surging losses. The ``breakdown'' was clearest in the market where securities firms packaged home mortgages into debt sold on to other investors, he said.
Posted by guest , Oct 23, 2008 10:13AM
the question is, will he be wearing it around his waste?
Posted by guest , Oct 23, 2008 10:16AM
Too long, didn't read.
Posted by guest , Oct 23, 2008 10:21AM
There's gambling at the casino? Shocked, shocked I say.
Posted by Anal_yst , Oct 23, 2008 10:23AM
Touche, #4, touche
Posted by guest , Oct 23, 2008 10:28AM
Dear Alan.
SHUT THE FUCK UP AND GO AWAY.
The biggest problem with our pathetic government is they keep listening to the same "experts." These are the self serving fuckers who got us here!
Posted by mj , Oct 23, 2008 10:32AM
@4 what's worse is that even though he says that now, Greenspan's argument 3-4 years ago was that if ppl gamble and lose, so what? The fact that they keep showing up and letting it ride til they throw snakeyes or doubling down on 19 means the system works, losses don't matter since ppl are willingly and knowingly putting the money up, and there should be gambling at Rick's.
Just like Captain Renault, at the end of the day someone will walk up to Greenspan and say "your winnings sir."
Posted by MarshallStack , Oct 23, 2008 10:33AM
Greenspan, "Beware of models dating geeks."
There must be a reality show in there somewhere.
Just keep shoveling.
Posted by MarshallStack , Oct 23, 2008 10:36AM
Is Mark Hanes going to implode?
Please, oh please.
Posted by MarshallStack , Oct 23, 2008 10:38AM
What's the over/under on Haines spontaneously combusting?
Posted by MarshallStack , Oct 23, 2008 10:40AM
Honestly - would you rather have:
1. $100.00 or
2. Mark Haines' head full of nickels.
Do they have to put tehers around it like the balloons in the Macy's parade?
No disrespect - just asking. That's all.
Posted by guest , Oct 23, 2008 10:40AM
Waxman is a huge, huge douche.
Posted by merkin capital partners , Oct 23, 2008 10:42AM
I thought that was Yogi Berra..?
Posted by guest , Oct 23, 2008 10:45AM
Why is the Geico caveman sitting behind Greenspan?
Posted by guest , Oct 23, 2008 10:48AM
Greenspan is still looking for the real killer. Pathetic.
Posted by guest , Oct 23, 2008 10:48AM
11,
Are you saying the amount of Nickels that could fit in Mark Haine's head? Or the head full of nickels? i.e. is the head included?
Posted by guest , Oct 23, 2008 10:50AM
Greenspan's low interest rates is what fulled the craziness! He had the rates at 1% and that is when house prices soared....
Fucking moron.
Posted by guest , Oct 23, 2008 10:52AM
How can they seek answers to questions when they will not even acknowledge the true extent of the crisis? Look at this chart:
http://tinyurl.com/558bbd
We still have 3 years of writedowns from ALT-A, POA and ARM resets that will dwarf Subprime losses.
Posted by guest , Oct 23, 2008 10:54AM
I think this is a must read if one wants to follow the Waxman trials.
http://online.wsj.com/article/SB122471228785760071.html
"....Republicans have pressed Rep. Henry Waxman, chairman of the House Oversight and Government Reform Committee, to hold hearings into how Fannie Mae and Freddie Mac contributed to the problem. It now looks as if Mr. Waxman will finally call a hearing -- for November 20, a date safely after the election....."
"...."Any hearing on oversight that does not begin with Fannie and Freddie and [former Fannie Mae CEO] Franklin Raines will be a sham," said Florida Rep. John Mica....."
...Waxman insisted his reluctance to call a hearing stemmed from civic mindedness. "I don't think we ought to use these hearings to be partisan," .... (!!!!!!)
"...who knew that Senator Barack Obama was the largest single recipient of Fannie Mae campaign contributions over the last 20 years, save for Senate Banking Committee Chairman Chris Dodd? More amazing still, Mr. Obama pulled off this feat even though he had only been in the Senate for four of those 20 years...."
Oh wait. Hope. Change. Hope. Change. (Hippie drumbeat.)
Posted by guest , Oct 23, 2008 11:01AM
@7 Correct. As long as the Govt continues to subsidize losers, there will only be winners. The cynic will say the $700B bailout was for Wall Street bonuses while the analyst will say it was for thawing out the Ted spread. At the end of the day, our global finance system cannot function without debt.
In a nod to Boileroom, equity stocks aren't the "White man's crack." Debt is. The biggest losers will undoubtedly be the US taxpayers and middle aged people with 401Ks in equity stocks. The biggest winners will be small businesses who rely on said credit, and Wall Street Big Banks. Yes, in the short run, some people will be layed off and that is sad. If they have talent or provide value, I'm confident they will bounce back somewhere.
Posted by guest , Oct 23, 2008 11:04AM
Props to #4 for the "Casablanca" reference!! Well played, sir or madam.
Posted by guest , Oct 23, 2008 11:10AM
@12-I'm a gentleman and a scholar. Thank you. #4
Posted by guest , Oct 23, 2008 11:10AM
@21-I'm a gentleman and a scholar. Thank you. #4
Posted by guest , Oct 23, 2008 11:10AM
@21-I'm a gentleman and a scholar. Thank you. #4
Posted by NotNasser , Oct 23, 2008 11:12AM
Greenspan seemed, for a minute there, to be blaming the crisis on the technical issues associated with the settlement process as the CDS market grew.
Not a bad theory, actually. But the moment passed.
Posted by guest , Oct 23, 2008 11:13AM
Where do these people learn to.. talk... so.... slowly...... about.. who... gets... to.. talk.. when... ?
Just yell at the assholes asking if they knew CDOs were backed by bogus mortgages. We need more foaming at the mouth anger. And jail time.
Posted by guest , Oct 23, 2008 11:13AM
When we were kids, we all used to play hide the kielbasa with Ayn Rand. It was no big deal.
Posted by prgy , Oct 23, 2008 11:23AM
hey @ 22-24 whats the matter, first day on the computer? What the fuck, are you 4 years old?
Posted by guest , Oct 23, 2008 11:29AM
Greenspan = Alcohol...the cause and solution to all of our problems, lol!
Posted by guest , Oct 23, 2008 11:32AM
Chris Cox blames Congress for giving no authority to regulate CDSs, then says he was on the committee when he was in Congress. He's kind of blaming everything on himself while trying to distance himself from the mess.
Posted by guest , Oct 23, 2008 11:42AM
Was anyone here an analyst during the tech crash? I'm a 2nd year trying to decide whether it is worth staying on for one more year. What was the comp like post crash? How low did bonuses fall?
Posted by guest , Oct 23, 2008 11:42AM
Haha. Greenspan says, "The housing bubble became clear to me in early 2006, in retrospect."
Posted by guest , Oct 23, 2008 11:44AM
If Mark implodes or self-combusts, Erin wins.
Posted by guest , Oct 23, 2008 11:59AM
@31: Yeah I was an analyst post tech crash. Slash & burn baby, slash & burn. Go to Law School so you can indict the crooks and look sanctimonious in front of the cameras.
Posted by MarshallStack , Oct 23, 2008 12:55PM
@16 -
You are correct.
And minty fresh.
Posted by guest , Oct 23, 2008 1:34PM
"once in a century" my ass.
Posted by MarshallStack , Oct 23, 2008 1:58PM
You have to love the Big G-Love and his special sauce. He did a classic non-apology, apologies.
Like, "I am sorry if you took offense at something that was not meant to be offensive.”
His only mistake was thinking that motivated self interest would keep the banks from taking on too much risk.
But they did.
Like a man who has loved too much, loved too well, but been disappointed by the objects of his affections.
Tragic really.
Can someone just fucking shoot him?
Posted by guest , Oct 23, 2008 2:03PM
Does anyone have TPG's 1200 slide presentation on the Macro economy?
Posted by guest , Oct 23, 2008 3:37PM
"I only hope that they've got Rep. Rosa DeLauro chewing on a piece of leather in a side room, getting ready to unleash the Crazy."
CLASSIC. If only ESPN would hire you to do color commentary for the NFL.
Posted by guest , Oct 23, 2008 4:27PM
Here's problem #10,087,678 with economists like AG: they never, ever seem to factor criminals into anything.
Posted by guest , Oct 23, 2008 4:37PM
Does anyone care what the idiot Waxman and Co have to do with this shitty mess anymore?
Posted by guest , Oct 24, 2008 12:03AM
"I raised concerns in 2005..."
It's 2008...what the f* have you been doing the whole time?
http://www.weeklyta.blogspot.com
Posted by guest , Oct 24, 2008 11:40AM
Waxman is up for reelection in a couple of weeks. Unfortunately he is the only candidate on the ballot from the 30th district of Cali. I'm still registered in Cali and I'm not exactly sure how such a prick was elected in my district, but I wrote myself in instead of voting for Waxy. Maybe someone will challenge him in two years... wishful thinking.