Friday, November 20, 2009

Defending the Golden Boy, Geithner

I woke this morning to catch a news piece on the Post Office and how it appears they will need a taxpayer bailout as well. Do we laugh or do we cry. What really caught my eye was a quote from Illinois congressman Danny Davis who had this to say on the subject;

"It's just not generating the money that you need in order to keep operating," he said.

Davis said he was open to cutting Saturday service - perhaps on a rolling basis, so that certain communities would lack Saturday delivery once or twice a month - as well as loosening the health benefit requirements. He also backed a government bailout for the embattled agency if that's what it takes to keep it afloat.

"We've bailed out a lot of things, and I think the Postal Service is probably as important in one sense as some of the other places where we have put public money," he said.

Added Davis: "I'm not afraid of spending public money to keep money flowing."

Don't you just love these guys in congress. They just don't get it. Either too stupid or too arrogant, take your pick.

Moving on may readers have written me asking, "if you hate CNBC so much, why do you watch?" Well, for one, every so often they get a guest on that is truly worth listening to. On a daily basis Art Cashin and Rick Santelli are absolute must sees but for the most part, one needs to know what the other side is thinking or preaching. Intel so to speak. Besides, CNBC is guaranteed to get you laughing your ass off at least a couple of times a day with a comment or quip from one of the many boobs and boobs in chairs. (hat tip to Mike Morgan on that one!)

I was lucky enough to catch the Squawk Box show this morning on CNBC and the discussion between "what's it like to be a billionaire" Carl Quintanilla, and MIT biology grad Joe Kernan. Included in this was their esteemed guest, former Fannie Mae CEO Daniel Mudd. Yes, in case your were wondering, he is the son of famed newscaster Roger Mudd but I will not get into the boyz club network in this post.

Rather today, I will focus on Joe Kernan's ridiculing of congressman Kevin Brady from Texas due to his grilling of Wall Street's 'golden boy' Treasury Sec. Geithner. It seems many within the "get with the program" crowd feel it their moral obligation to defend Geithner. At least they know where their bread is buttered or in the least have been told so.

I find it perplexing how Tim Geithner's role as president of the New York Fed somehow escapes the immense faculties of our MIT alum and CNBC anchor. What part of- the New York Fed directly supervises the banks in its jurisdiction, outfits like Bear Stearns, Lehman, Goldman et al., ergo Geithner was responsible-do you not comprehend Joe?

Not to be outdone in the discussion, Mudd, who succeeded Franklin Raines at the helm of Fannie Mae, who when asked, shockingly admitted that he too supported the work done by Geithner. Wow ! Now thats a shocker! And for Anderson Cooper over at CNN, this is what you call tea bagging.

Quick Quiz Time. - So after so aptly taking the reigns (no pun intended) over from Raines, Mudd, who was fired after the taxpayer bailout, has resurfaced as ....

a) grill boy at Arby's
b) valet attendant at Caesar's Palace
c) senior economic advisor to the President
d) CEO of fund manager Fortress Group

The correct answer is d, CEO of fund manager Fortress Group but you do get a special acknowledgement if you said c, senior economic advisor to the President because you can bet your ass he was on a short list for that job. Just keep recycling the same old vipers and thieves, this way the charade continues.

As if all this is not enough to make one puke all over one's self, we get that cerebral heavyweight Kernan, doing his part, reciprocating this mornings' all around circle jerk, remarking to Mudd how he and no one else at Fannie could have seen this all coming. First class journalism or first class tea bagging I know not which. Acutally I do but I like asking rhetorical questions.

Here and now, today, if the captain of the Titanic had miraculously survived, today he would be lauded and then promoted. Sadly this is how far we have fallen with our standards as this is how our system works now.

Ahh, but I am too harsh. I am too critical. So be it, but can we finally put an end to the question of, why (the lamestream financial media) won't they ask the serious questions. the answer seems patently obvious, they have no conscience, no moral obligation to anyone or anything other than themselves. Simply beholden to covering thy ass and ingratiating thy self with anything higher up the food chain. Yet more proof of what I said the other day regarding a 'get rich or die tryin' environment.

Lets leave this on a positive note. Anyone notice how Dylan Ratigan, now at MSNBC, has seen the light. I guess my post 3 Cheers for Dylan Ratigan wasn't too far off mark. Well done Dylan, just don't stop digging. It's all there in front of you and you have the public forum to do it with. Be a patriot and continue to do the right thing, we will all be better for it !

Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $12.06
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $6.05
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 1 unit Ultrashort Xinhua China ticker FXP @ $8.32
Long 1 unit Ultrashort Real Estate ticker SRS @ $9.82
Long 1 unit Direxion Tech 3X Bear ticker TYP @ $10.68
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $21.97
Short 1 unit i-shares Russell 2K ticker IWM @ $61.70 stop @ $63.80
Short 1 unit Vornado ticker VNO @ $68.30 stop @ $70.71
Short 1 unit Bed Bath ticker BBBY @ $37.75 stop @ $38.41

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