From The Big Picture:

Yesterday, in Backdoor Bailouts for Goldman Sachs?, we noted that GS, as well as Morgan Stanley, Merrill Lynch, and Deutsche Bank, were all made whole on their bad bets with AIG.

That’s right, what was misleadingly described as systemic risk turned out to be in large part little more than a counter-party bailout — money for the very same people who helped cause the problem.

Only the $25 billion figure I mentioned was off by 100% — the WSJ is reporting this morning it was $50 billion dollars, almost a third of $173 billion total AIG loot:

Here is the link to the WSJ article.

Meanwhile, what has become known as The Scariest Chart Ever has been updated (props to The American Prospect:)

Here’s the link to Speaker Nancy Pelosi’s Flickr posting of the chart.

Someone should make a chart projecting sales growth in pitchforks, which is my growth industry of the day. (In best lunatic stock picker-screamer voice: “People, I am telling you to buy stock in pitchforks, now, because there is only one way pitchfork stocks are going, and that is up up up up up.”

If the Obama administration thinks they can continue the Paulson plan while employment goes off a cliff I’m afraid they are sadly mistaken. My crystal ball is being tuned up so I can hopefully get another 10-15,000 miles out of it somehow, but the “let them eat cake” aspect of this crisis is getting hard to dismiss. Sure, it’s early in the administration, and yes, the stimulus package, flaws and all, did get passed. But good Lord. Exactly how long are the American people supposed to stand for this outlandish thievery by Wall Street?

Is the RICO statute still around?

Freedom Bank of Georgia, Commerce, GA.

[youtube]http://www.youtube.com/watch?v=vbJxMd3Pls8[/youtube]

I can haz financial newz? LOL!

Tonya Harding, Clark County’s most beloved celebrity, speaks out about Barack Obama.

Unfortunately.

Maybe she’ll stay up in the hills for another decade.

This is all over the Internet Tubes today, but in case you missed it, check out Jon Stewart completely owning Clown-NBC and Rick Santelli.

[flash]http://media.mtvnservices.com/mgid:cms:item:comedycentral.com:220252[/flash]

Further proof that the best journalists in the country are—comedians, especially Stewart and Colbert, since they seem to be the ones consistently pointing out how utterly and consistently wrong conservatives have been about everything. The Daily Show clip really is an instant classic.

Al Franken should debate Rush Limbaugh.

Ted Van Dyk, who self-identifies as a life long Democrat, writing at Crosscut, has some concerns about the Obama administration. Which is fine, although I think it’s worth addressing.

As a lifelong Democrat, I am concerned that President Obama could come out of his first 100 days decidedly weaker than when they began. His November victory was not as strong as anticipated, given the unpopularity of the outgoing Bush administration, a weakening economy, and an often inept McCain-Palin Republican ticket. Yet Obama has proceeded as if he were a landslide winner, like Lyndon Johnson in 1965 and Reagan in 1980, and has pushed forward a costly and ambitious domestic agenda even though we remain in a severe economic downturn.

Obama’s audacity — I consider it politically dangerous overreach — has energized Republicans and, in particular, conservatives as they would not have been had Obama followed the bipartisan, consensus path he promised on taking office. The politically polarizing economic-stimulus package and his proposed federal budget have done it.

Well, Obama tried to reach out to the Limbaugh Party and was rewarded with zero votes in the House. Then three “moderates” in the Senate hijacked the entire process on behalf of Susan Collins. So that explains that. It’s not the Obama administration that is obstructing things, so I’m not quite sure what Van Dyk means.

You can’t be bi-partisan and work with a batshit insane party that doesn’t understand basic economics, and more to the point, defines itself almost solely on cultural and racial resentment. They have a great deal of fun hating the dirty fucking hippies, but that’s not much of a policy position. There’s no “there” there. It’s just tribalism, with all its venomous, spittle-spewing invective coursing through the diseased veins of AM radio. If they’re not hating the dirty hippies, it’s the gays, or the immigrants, or the ACORN (black people mainly, in their view,) or left-handed people who wear green socks.

Without hate there is no conservative movement. And just like FDR did, we should welcome their hate, because it means we are doing something right.

Conservatives today are not serious people, because if they were serious they would put forth policy proposals that match the challenges ahead and they would not wish for the failure of the president. “Bi-partisanship” has ceased to be a word with any concrete meaning in the real world. Now, knowing Obama the door is still open, but Republicans will have to choose to walk through that door, meaning they will have to possess the balls to stand up to the Joe McCarthy of our time. Not bloody likely in my estimation.

As for recovery, spending and the budget, the very strange thing is that a lot of people don’t seem to understand that the immediate threat is of intense deflation and world-wide collapse of the economic structure. To paraphrase the hell out of John Maynard Keynes, you could go around burying millions of bottles of money and it would help prevent Depression, because then the private sector would busily engage in massive efforts to dig up the bottles. Of course, if instead you wanted to do something that would also provide a longer term benefit, like building bridges or wind farms, that would be good too.

The biggest short term concern is not the amount of spending that we must engage in, but the failure to address the “too big to fail banks” and by extension, their “too big to fail” insurance company, AIG. Talk about wasting money. I’m always amazed how Americans will get their noses all bent out of shape regarding urban legends about “welfare queens in Cadillacs” but will be nonplussed at incredible waste and fraud in the corporate world. The people complaining about the stimulus package and the budget, which at least contain many measures that will provide real relief to regular Americans, do not generally express much concern about the way we’ve all been robbed by Wall Street.

The people who brought us this calamity are yet to be held accountable in a meaningful way, and are reaping high salaries and other rewards still, not to mention frequent contributions to their firms by taxpayers that will doubtless total in the hundreds of billions of dollars. You don’t really hear any talk of a “tea party” because of that, now, do you? The conservative-Republican opposition is the same old suspects spouting the same old bullshit, bitching that the wealthiest 2% of Americans might have to pay the same tax rate they did a decade ago. Poor babies.

The deficit hawks have a long-term point. But we’re sure in the hell not going to reduce the deficit or the debt if the global economy falls into Depression, and for now the political battle is essentially an extension of the last eight years: the malignancy of movement conservatism has to be defeated if we are to prosper.

The de-facto leader of the GOP calls a CNN reporter “butt boy.”

You kind of wonder at what point legacy journalists, um, stop it with the pretending about just reporting what each side said. I mean, how exactly do you report, “Republicans responded that I am a ‘butt boy?'”

Is there even ONE Washington state Republican elected official with the guts to stand up to the psychopath Rush Limbaugh? Frankly I doubt it. The silence speaks volumes. They’re all too damn scared to stand up to this pathetic bully. And you wonder how Joe McCarthy got away with it for so long.

I wonder what Washington state Republican elected officials think about Rush Limbaugh?

Don’t miss Kos’s front pager on the hilarious spectacle of Michael Steele and Rush Limbaugh engaging each other for control of the GOP. As Markos says about Steele:

When you have to proclaim that “I’m the leader of the Republican Party”, then you are not.

Limbaugh is apparently going to respond to Steele on the radio, which should be hilarious. While most of the news these days ranges from terrible to awful, the Republican Party base genuflecting to Rush Limbaugh is awesomely awesome.

Limbaugh may be the king of AM conservative radio, but that’s not exactly a winning coalition. In fact, it’s not even a coalition, it’s just the tattered remnants of the “angry white male” devotees from twenty years ago. The country has moved on, and normal people want to confront the economic crisis in a meaningful way.

My crystal ball is at the Teletype office having new, lower stock ticker numbers installed, but could this be the true beginning of the end for the Republicans? Hard to see how any “moderates,” meaning in the case of the GOP anyone who isn’t certifiable, can survive in the Limbaugh Party.

UPDATE–Kos points to this post at The Plum Line, where Greg Sargent has some of Limbaugh’s response. Oh, and make sure you’re not drinking hot coffee. Like with this bit:

I’m not in charge of the Republican Party, and I don’t want to be. I would be embarrassed to say that I’m in charge of the Republican Party in a sad-sack state that it’s in. If I were chairman of the Republican Party, given the state that it’s in, I would quit. I might get out the hari-kari knife…

Side effects of oxycodone.

Psychiatric side effects

Psychiatric adverse effects reported include paranoia, psychosis, and hallucinations.

As I said, projection.

Barry Ritholtz asks the question. I’m sure it’s just a coincidence that a right wing talk radio operative from Chicago registered a tea party site–last summer.

The VWRC lives! If it does turn out that Santelli was indeed involved in a coordinated, pre-planned offensive against Obama, he deserves to be fired immediately. And then his journalism epaulets should be yanked off and his journalist license revoked.

Then he can be hired by Fox Noise, which has no journalists.

At The Big Picture, Marshall Auerback, an economist and global portfolio strategist for RAB Capital, persuasively lays out the case for a New “New Deal.” The abstract is inside.

[Read more…]

From FDIC.

Heritage Community Bank, Glenwood, IL

Security Savings Bank, Henderson, NV

I think there really should be a tea party. Here’s one hosted by CPAC and Rush Limbaugh.

[youtube]http://www.youtube.com/watch?v=z0q-9aFzIbU[/youtube]

KGW-TV in Portland had an exclusive report last night about the deadly Dec., 2008 bank bombing in Woodburn, Or., that killed two law enforcement officers and seriously wounded a third. It seems the accused suspects, the father-son duo of Bruce Turnidge and Joshua Turnidge, had been planning (or perhaps “fantasizing” is a more accurate term) about robbing banks ever since 1994.

According to a police affidavit, a family friend, Ronald Laughlin, stated that he heard Bruce, Joshua and another family member who has not been charged in the case “speak so often about robbing banks that it became like ‘white noise’. Often, Laughlin said, they’d “discuss methods of robbery including diversions.”

Laughlin described the men as Constitutionalists and anti-government.

According to investigators, in the summer of 1994, Laughlin recalled meeting Joshua and Bruce Turnidge for lunch in Woodburn.

Witness Joshua Turnidge said “he had called the bank and told them there was a bomb and they were to deliver $20,000 to $40,000 to a construction Port-a-potty.” Laughlin said he watched police arrive at the bank.

How odd they were thinking of that in 1994, the summer of love, er, black helicopters. I can’t find seem to find anything in the Constitution about blowing up banks and killing cops, oddly enough.

The new information makes a statement by Oregon Republican chair Vance Day shortly after the deadly Dec., 2008 bombing even more curious.

And the arrests of two members of the Turnidge family — which decades ago helped start the Salem Academy Christian schools — have left those who know the family incredulous.

“I would be very surprised if Bruce Turnidge was involved in that,” said Vance Day, the Oregon GOP chairman and a Salem attorney who has known brothers Bruce and Pat Turnidge for several years. “I know him to be strong, very pro-American. He doesn’t believe in violence of that sort whatsoever.”

Now, it’s true that there be monsters in the world, and sometimes you think you know people and all that. So I have no problem taking at face value the idea that Day was genuinely stunned. It’s not really clear from press accounts what relationship Day had with the Turnidges. Political leaders meet all sorts of folks, take their money, shake their hand and move on.

Still, WTF? And there’s another family member who was also talking about robbing banks in 1994? Remember, this is a fairly prominent family in Salem. Crazy.

This morning over at Publicola, Josh Feit pens an “angry editorial,” (his words, not mine) about transportation funding going to Republican-dominated state legislative districts when their members voted against the nickel-a-gallon gas tax. (I see Josh has also cross-posted the editorial at HA here.)

While I understand Josh’s frustration, and freely admit to not really knowing squat about the merits of the Mercer Street project up there, I would throw in one little factoid.

One of the projects Feit mentions is an interchange project in Clark County’s 18th LD, the home of Sen. Joe Zarelli, R-Ridgefield, ranking member of Ways and Means. It’s true the 18th district is very conservative, but the rest of Clark County, not so much. Plus people don’t choose their automotive route by legislative district. If you need to go somewhere, you need to go somewhere.

The more urban 49th is a solid Democratic district, and the 17th District on the east side has moved from leaning Republican to leaning Democratic with the election of Rep. Tim Probst, D-Vancouver, who replaced the useless turd Jim Dunn. But I digress.

Here’s the little factoid I want to consider:

Among Washington’s 39 counties, only four receive less than Clark County for each dollar it contributes for transportation projects.

The Washington Department of Transportation last week generated a new county-by-county comparison that shows Clark County gets 79 cents in transportation projects for every dollar it contributes in taxes, mainly in gas taxes.

—snip—

Eric Hovee, an economic and development consultant in Vancouver, noted that the comparison shows big counties around Puget Sound receive just about exactly what they contribute. (King County is the only one in the state that receives exactly $1 in projects for every dollar contributed). Hovee scanned to the bottom of the list, where rural counties reaped large dividends.

So King County and Puget Sound area residents are basically getting their money back, Clark County residents are getting the short end of the stick (so what’s new?) and the smaller counties are getting a great benefit. This kind of imbalance only fuels resentment and makes it that much harder to fund things down here.

Just something to add to the mix.