Geithner’s New Bank Rescue Plan, Will It Work?

Today the market reacted to Tim Geithner’s New Bank Rescue plan…by dropping 382 points (or 4.6%).

Geithner outlined the plan today. CNN Money did a great job summing it all up so I’ll post an excerpt:

Testing the health of big banks to weather an even deeper economic downturn. Geithner said the Treasury will “stress-test” the biggest banks and provide capital to those that need it, as the nation sinks deeper into its worst recession in decades.

He said the stress test will apply to institutions with more than $100 billion in assets – a list that comprises 13 banks, from giant JPMorgan Chase (JPM, Fortune 500) to Cleveland’s KeyCorp (KEY, Fortune 500), according to a report from analysts at the Stanford Group in Washington.

Analysts say big U.S. banks could use at least $1 trillion in new capital as job losses mount and more borrowers default on mortgage, auto and credit card loans. But Geithner said the administration won’t ask Congress now for more money – raising the question of how much capital it actually expects to provide.

Making credit more available to consumers and businesses. The Treasury will provide $100 billion in seed money to expand the Federal Reserve’s Term Asset-Backed Securities Loan Facility, in which investors in bonds backed by credit card and other loans can swap those bonds for Treasury securities, enabling them to get additional financing.

The move – which could create as much as $1 trillion in financing for consumers and businesses – shows the government is eager to bolster the capital markets, which provided a large percentage of funding for consumer loans before the bond markets seized up in late 2007.

Creating a private-public partnership to take toxic assets off banks’ balance sheets. Policymakers believe clearing bank balance sheets of badly deteriorated loans and securities is a prerequisite for restoring the normal flow of credit into the economy. Geithner said the plan will aim initially to use public financing to create as much as $500 billion in private sector buying capacity, with the prospect of an expansion to $1 trillion down the road.

Observers say drawing private capital back into the market is a key objective of any workable plan.

“Because the new program is designed to bring private sector equity contributions to make large-scale asset purchases, it not only minimizes public capital and maximizes private capital,” the Treasury Department said in a fact sheet about the plan. “It allows private sector buyers to determine the price for current troubled and previously illiquid assets.”

It remains to be seen, however, how the administration can break the stalemate between banks that are holding troubled assets at one price and investors who would buy only at a lower one.

Addressing the housing crisis. The Fed and Treasury will commit $50 billion to reduce mortgage payments and establish loan modification guidelines. Firms that receive federal aid will have to commit to participate in foreclosure mitigation plans, the Treasury Department said.

Am I optimistic? Not really. These banks are basically walking zombies. They are poorly capitalized and illiquid. Further more, the amount of money in this plan seems to be bit inadequate, given the fact that yes, we are talking about a large group of banks, not just one or two. However [which I will detail in another post] it does have a few strengths, but I think Geithner really didn’t go in to very much detail, so I am not going to outwardly condemn this plan either. 

Let me know what you guys think. Will it work? Will it not? Leave a comment.

Top RIAA Lawyers Join Obama Administration. The Internet Will Now Suck.

You know, I think Joe Biden is a cool dude. And if you don’t like Joe Biden well you can go sit on a tack. But like most people, Joe Biden has his faults. One of Joe Biden’s major fault is the fact that he has more friends in the RIAA and the BSA than a pro net neutrality guy like myself would want. Sadly, his scumbag friends are now full fledged scumbag government employees.

According to CNET, President Obama, Mr. Net Neutrality himself, is filling the Department of Justice with the RIAA’s best and brightest. The DOJ’s latest acquisition is Associate Deputy Attorney General Donald Verilli. His list of legal douchebagery includes shutting down Grokster, filing a lawsuit against Google and YouTube on behalf of Viacom, and suing a woman by the name of Jammie Thomas, who was accused of sharing 24 songs on KaZaA to the tune of $220,000. Yep that’s right, for 24 songs. Fortunately the judge threw out the verdict based on misleading jury instructions given by the RIAA. The RIAA I believe is still in the process of appealing the decision.

Gizmodo(one of my favorite tech blogs, props to you guys) sums up the rest of the new appointments quite nicely:

This follows up the naming of Tom Perrelli, from the Perrelli Family, as associate attorney general, the third-in-command post at the DoJ. Perrelli was and probably still is the favorite lawyer of the RIAA, suing people and companies left, right, and center in the name of the recording gang. He will be in charge of the DoJ’s civil, antitrust, and civil rights division.

But don’t go away, because there’s more. Who is the deputy attorney general, the second in command at the DoJ, do you ask? Mr. David Ogden, who-according to his previous job’s biography-represents “media and Internet industries, as well as major trade and professional associations.” He also as “part of the department who successfully defended the Sonny Bono Copyright Term Extension Act before the U.S. Supreme Court.”

Not enough? Don’t worry, because the VP has otherfriends in other places. Take Neil MacBride, another associate deputy attorney general, who previously was an aide to Biden himself. MacBride was the king of the legal hill at the Business Software Association. As the BSA’s antipiracy enforcer and general counsel, MacBride oversaw the creation of the program that rewarded people for phoning tips about suspected software piracy.

Honestly, all that net neutrality, “I love the Internet”, “come check out my Facebook” bullshit Barack Obama fed us during the election is very much going out the window with these sharks on the government payroll. Obama was notorious for proposing less restrictions for Internet and less power for the RIAA during the election. As soon as he mentioned that the joyfest in the tech community was heard far and wide. But with Joe Biden came a strong foothold for the likes of the RIAA to use to propagate their bogus agenda.

Take the RIAA’s case against Jaimme Thomas. Is $220,000 fair for sharing 24 songs on a P2P network? Do you think in times of economic strife it’s important for an organization such as the RIAA to start coming after individual citizens for large sums of money on the basis that quite possibly, MAYBE, someone could have downloaded one of those 24 songs? Her case for appeal was central on jury instruction No. 15, “which told jurors that she could be found guilty even if it couldn’t be proven that anyone actually downloaded the tracks she was sharing.”

Am I surprised? Hardly. I know how politics works, and regardless of the administration, the political party, or the person in charge, the RIAA will lobby, and make campaign contributions and buy politicians left and right. Barack Obama, sadly, is no different. 

Tom Daschle Withdraws as HHS Nominee.

What is it with Democrats and not paying taxes?

Tom Daschle asked President Obama to withdraw his name for consideration as health and human services secretary. And today he has accepted it. Here is an excerpt from the CNN report:

(CNN) — Former Sen. Tom Daschle has withdrawn his nomination to head the Department of Health and Human Services, according to a statement Tuesday from the White House.

 Former Sen. Tom Daschle apologized for making mistakes on his tax records.

 

Daschle had been fighting to save his nomination as HHS secretary following controversy over his tax records and questions over his work in a field that some consider lobbying.

In a statement announcing his withdrawal, Daschle said it was an honor to be chosen to lead the reform of America’s health care system.

I am starting to question President Obama’s vetting process. However, Daschle is the classier of the two tax cheats and decided to withdraw his name. If only Tim Geithner would have done the same. Perhaps we would have had Treasury Secretary Larry Summers after all.

Point is, that all these cabinet choices are starting to shine some light on politicians and their neglegent tax choices. I could only imagine who else probably doesn’t pay their taxes.

Ladies and Gentlemen…Joe Biden!

Joe Biden apologized today for the first absolutely hilarious, yet mildy inappropriate comment he made about John Roberts. Here’s a excerpt from CNN:

An aide to Vice President Joe Biden tells CNN he called Chief Justice John Roberts last week to apologize for a light-hearted remark he made over the flubbed Inauguration Day oath of office.

“My memory is not as good as Justice Roberts, Chief Justice Roberts,” Biden said last Wednesday, as he asked for a copy of the oath he was using to swear in senior members of the White House staff.

Several staffers reacted to the comment with groans and laughter, though President Obama, standing next to Biden, did not crack a smile.

Another great thing is that this not only gave us a view in to the Willy Wonka Chocolate Factory that is Joe Biden’s mind, but we did get to see Barack Obama’s STFU face. And it is priceless.

Come on guys, this is Joe Biden at his best. Where most people think that this is Joe Biden’s flaw, I disagree. Joe Biden is one of my favorite democrats because he lives off the cuff and basically says what other people are thinking. Frankly in the dull world of politics, soaked in formalities and “ho hum” pleasantries, Joe Biden is REAL. 

 Barack Obama has potentially eight years in office, can you imagine what Joe Biden could say (or do) in those eight years. I personally can’t wait. Keep up the good work Joe.

The Obama Reality Check

So now that the inauguration is over, and the only thing George W. Bush is running is a tractor on his ranch we, collectively as a nation need to take a deep breath and a couple of steps back. Sure Barack Obama is a cool guy. I mean come on he is a president who has a cool website, he uses a blackberry, and he is determined to change government and fix everything the Bush Administration has messed up in the past eight years. 

But I think right now we as a nation (and by that I mean the people, the media, etc.) have lost a lot of objectivity and perspective. You’re probably saying “Oh Jorge probably lost his remote and his TV is stuck on FOX News again…” but I promise you if that ever happened I’d just unplug my TV. But lets face it, we are all SO jazzed that tomorrow Obama can light a kitten on fire and we wouldn’t think much of it.

But he is a politician. And all I know is that usually when someone new comes in to power, I tend to aim my expectations very low. So that way, when they do f**k up, I won’t be so disappointed. I am sorry, but the past couple of years have only fueled my distrust in politicians. So aim low America! If Barack Obama saves this nation it will rock extra hard, and if he turns out to be like all the others, well at least you didn’t have your hopes up.

So When Is Bernie Madoff Going To Jail?

And by jail I mean JAIL jail not house arrest in his two story Manhattan penthouse jail. 

Bernie Madoff is a massive crook. The Madoff Ponzi scheme now holds the title of “biggest investor fraud case perpetrated by a single person” which is nothing to sneeze at considering he solidly wiped out $50 Billion in people’s hard earned cash. Last night on Mad Money, Jim Cramer had on advertising bad ass Donny Deutsche, who summed this entire situation up very well.

He called Madoff a “serial killer”, and the fact that he was not in jail yet was “an abomination”. Deustche cited a personal example of the parents of some close friends of his who lost all of their money in the scheme (close to $4 million). I agree with Donny 100%, Bernie Madoff IS a serial killer, and his victim isn’t so much the people he took money from. His main victim, the loss everyone has to mourn is the fact that now people are scared to invest. They are scared to buy and put their money out there because WOLVES like Bernie Madoff lurk in the shadows.

I think Obama has the right idea in putting financial crimes management under jurisdiction of the Justice Department. But he, and Eric Holder need to go further. People like Bernie Madoff need to pay, they need to be brought to justice. Bernie Madoff has ruined lives and torched accumulated wealth of people who have legitimately worked hard for their money and who are now left with nothing. At a time when consumer confidence is low, the Obama administration needs to make their stand clear and drop the hammer on crimes like these. If you have to bring back the RICO laws like Jim Cramer wants to then do it. Right now Obama and his administration needs to take a stand against financial killers like Bernie Madoff. These crimes will no longer carry lenient sentences in white collar prison resorts, they will be punished severely. 

 

Recent Studies Prove Gulf War Syndrome is REAL.

Here is a link to a CNN story about how a recent study not only confirms the existence of Gulf War Syndrome, something that 1 in 4 Gulf War Vets suffer from. The study links the cause of GWS to anti-nerve gas pills issued to U.S. Troops during the conflict, and pesticides that they came in contact with.

According to the report, Gulf War illness is a “complex of multiple concurrent symptoms” that “typically includes persistent memory and concentration problems, chronic headaches, widespread pain, gastrointestinal problems, and other chronic abnormalities.”

The government has since wasted years trying to disprove that this illness even exists. Now with definitive proof, people affected by the illness can finally seek help from the Veterans Administration.

“Gulf War illness isn’t some imaginary syndrome,” said Ken Robinson, the senior intelligence officer for the initial Department of Defense investigation into Gulf War illness in 1996-97.

“This is real, and it has devastated families. Now is the time to restore the funding cuts that have been made in the Veterans Administration. Our mission has to be to ensure that these veterans get help and become whole again.”

What really bothers me the most is that our government spends massive amounts of money on defense, yet some how are troops are still underfunded and, much like sufferers of GWS, at risk. Our troops deserve the best care possible. These are men who have put their lives on the line to fight for and defend this nation. But once their term is up, injured soldiers usually find an endless maze of bureaucracy, and an up hill battle to get some help.

Fortunately there are many programs such as the Disabled American Veterans Charitable Service Trust, which helps veterans with various physical and psychological rehabilitation programs, meets needs of veterans with specific disabilities, and helps homeless vets get back on their feet. President-Elect Obama wants to change the status quo of government, I hope that he spreads some of that change on veterans affairs.

 

CHANGE We Can Log On To: Obama’s Internet Driven Government

 

At first I thought a president that would constantly update his Twitter was a bit ridiculous. I’d be a bit perturbed if every time I checked my Twitter it would say something like “barackobama is having a sandwich and reading his autobiography” or “barackobama is in a cabinet meeting”. But it seems that Barack Obama is planning to do so much more than that.

Obama’s campaign has redefined the election process. Using the internet, he has raised more money than any presidential campaign in U.S. History, and single-handedly redefined the way presidential candidates will campaign for years to come. Amassing huge followings on Facebook, MySpace, and Twitter, Barack Obama has united a nation and secured an overwhelming vote. Using YouTube to publish speeches and rally footage, Barack Obama broadened the scope of his message from a few thousand rally goers to an entire nation.

President-Elect Obama is now preparing to integrate the Internet in to his administration, and in to the government as a whole. Following the Web 2.0 revolution, the Internet has become something much more profound. This is the Internet where someone like me can post something that can be seen by thousands of people. The power of the Internet is apparent in the recent social networking movement. News organizations are slowly moving away from print, making themselves 100% accessible on the Internet. Now imagine how the Internet has changed our lives, and now imagine how it would change our government as well.

Barack Obama’s Internet centered government stands on one basic principle. Internet for all. One cannot benefit from this “Government 2.0″ if they don’t have Internet. Barack Obama plans to use some of the money collected by the Universal Service Fund, a $7 Billion fund that is collected by the government to subsidize phone service in rural areas, to instead build high speed Internet lines that carry phone capabilities as well. This is a great idea, because not only is the money already there, but the technology is basic and not a dramatic change or step up from anything pre-existing.

Another thing I definitely like about this is that the Obama Administration (with the exception of Joe Biden) stands firmly on the idea of net neutrality. The Internet can’t grow if Internet providers pick and choose which types of data to accept, and which types of data to reject. Things like that, and like DRM would hinder the growth of this powerful tool, and hinder the goal Barack Obama wants to achieve. Passing a net neutrality act would go a long way in ending the the debate between supporters of net neutrality and companies like Comcast who want to regulate their bandwidth. 

The Obama Administration has set some major goals in terms of technology. I was reading a great article in the Boston Globe that details them. 

Obama wants to put YouTube-like videos of government meetings online, so citizens can see their federal agencies at work, and has proposed a Google-like database of federal grants and contracts, so people can see where their money is going. And he’ll require his Cabinet members to hold regular online town hall meetings, where they’ll field questions from the Internet audience.

I think this has a potential of being a revolutionary tool for the American people, in terms of government accountability. Some political scientists even go a step further, citing that this may be something much more, a whole new branch of the government. Technology and innovation is the next frontier for us. It’s something that will unite us, and impact out lives in many ways. Whether you agree with Barack Obama or not, it’s nice to see a President who feels the same way. 

Barack Obama on Technology & America

Being a technologically adept person, I believe that technology, no matter the field, is what drives us. It constantly pushes the envelope, and it allows us to evolve. Nothing makes me happier than to see a President who feels the same way. Junauzu.com gathered a bunch of Obama quotes on technology and how he will use it to drive this nation forward. 

The historic U.S. Presidential election has come to an end with Barack Obama emerging victorious against John McCain. Obama will become the forty-fourth President of the United States and the first African-American to be elected for the highest office.

Some of my tech savvy readers are probably wondering how will Obama utilize technology to help improve the U.S. and world economy. That is why I’m going to share to you some of Barack Obama’s tech related quotes to learn more about his plans. I also included links to the quotes’ sources. Enjoy!

• “To restore America’s competitiveness, we must recruit a new generation of science and technology leaders by investing in diversity.” SOURCE
• “Together, we could open up government and invite citizens in, while connecting all of America to 21st century broadband. We could use technology to help achieve universal health care, to reach for a clean energy future, and to ensure that young Americans can compete — and win — in the global economy…” SOURCE
• “I will recruit new teachers and make new investments in rural schools, we’ll connect all of America to 21st century technology and telecommunications.” SOURCE
• “We are a land of moon shots and miracles of science and technology that have touched the lives of millions across the planet.” SOURCE
• “As president, I will tap our natural gas reserves, invest in clean coal technology, and find ways to safely harness nuclear power.” SOURCE
• “Ensuring that the US continues to lead the world in science and technology will be a central priority for my administration.” SOURCE
• “I’ll change the posture of our federal government from being one of the most anti-science administrations in American history to one that embraces science and technology.” SOURCE
• “We will fire government managers who aren’t getting results, we will cut funding for programs that are wasting your money, we will use technology and lessons from the private sector to improve efficiency across every level of government.” SOURCE
• Obama said the nation needs to invest in solar, wind, biodiesel and clean coal technology “so the use of coal does not degrade our environment. We can do that if we are investing in the technology, the research and the development.” SOURCE
• “We must adapt and make tradeoffs among systems originally designed for the Cold War and those required for current and future challenges. We need greater investment in advanced technology ranging from the revolutionary, like unmanned aerial vehicles and electronic warfare capabilities, to systems like the C-17 cargo and KC-X air refueling aircraft–which may not be glamorous to politicians, but are the backbone of our future ability to extend global power.” SOURCE
• Obama said if elected his government would “harness technology to confront the biggest challenges that America faces”. SOURCE
• Pointing to President Kennedy’s challenge to put a man on the moon, Mr. Obama said: “I will set big goals for this country as president – some so large that the technology to reach them does not yet exist.” SOURCE

Kick ass. He is doing what I did with my mom when I bought her a Mac, dragging this nation kicking and screaming in to the 21st century.