Tiger Software's Blog       3/19/2009      www.tigersoft.com

                                        Obama's Phoney Baloney!

              Obama Brazenly Coddles
         Wall Street Crooks, Including
    His Biggest Campaign Contributors

        Obama Glibly Misleads Millions by Falsely Claiming 
                        That NO Laws Were Broken in The Financial Collapse. 

          Obama Prejudges The Truth without An Investigation as There Was in 1932.

                                                   Obama's Financial Plan
      Give More Good Money To Corrupt, Inefficient, Bloated Bad Monster Zonbie Banks.

     By William Schmidt, Ph.D. - Tiger Software's Creator  (C) 2009 William Schmidt, Ph. D. - All Rights Reserved. 
                                             Send any comments or questions  to    william_schmidt@hotmail.com  


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     Should People Trust Obama, with So Much of Their Money?

President Obama appeared on a popular TV chat show, Jay Leno,
             to promote moves to resolve the economic crisis.  His answers show he is trying
             to fool us about some very important financial topics.   Does Obama really understand
             the profound sense of betrayal by Wall Street that so many Americans feel.

                    Bonuses on Wall Street encourage reckless, get-the-money-and-run  risk-taking.
            That is why there was a BUUBLE.  CEOs had every incentive to make extra short-term
            profits and use maximum leverage, no matter the risk of safety and prudence.

                      Example from Yahoo message Board:  "...(T)he supposed wizards of finance,
             the Masters of the Universe who shower themselves with unimaginable wealth, were
             safeguarding our economic well-being with the diligence and sobriety of a drunken
             high-roller at a craps table in Vegas at 4 a.m.? Does he understand that the crisis
             is not just an economic watershed but a cultural one as well, and that what once was
             deemed perfectly acceptable behavior on Wall Street is now seen as reprehensible?

                                                          (Source: Eugene Robinson)

    Obama Paved The Way for AIG Bonues. 
   What A Show of Outrage Obama Puts on for Public Display.
  His Opposition To Wall Street Bonuses Is A Public Charade

                Obama said he was "stunned" by the huge bonuses that
                bailed-out insurance firm AIG was paying its employees. 
The bonuses
                - totalling $165m  in a company now 80% government-owned  -  have caused outrage in the US.
      TRUTH - Obama knew in advance of the AIG bonuses.  He only
      expressed outrage after the bonuses became public.   More important
      his Treasury Secretary had cleared the way legally for the bonuses,
      by secretly striking a provision in his Stimulus legislation several weeks
      ago that would have forbad such bonuses!

      TRUTH - According to Julie Hirschfield Davis and six other AP reporters who assisted her,'
      The Obama administration has known "for months" that insurance giant AIG was
      getting ready to pay huge bonuses while living off government bailouts.

    Obama Defends Geithner, The Pro-Banker Treasury Secretary.

      Obama:  "This guy has not just a banking crisis. He's got the worst recession
      since the Great Depression," he said, adding: "
I think Geithner is doing an outstanding job."

     TRUTH - Geithner played a major role in causing the financial meltdown that
      resulted from vastly excessive use of leverage by Wall Street banks by not even
      trying to police them when he was CHairman of the NY Federal Reserve.  Geithner
      was deeply involved on everything that went wrong and caused the financial

      TRUTH - Geithner willingly participated in TARP-1 in a most industry compliant
      and submissive way.  He did not insist on transparency or accountability.
      Bonuses were fine with him.  There is no record of him objecting to
      Paulson's unfettered giveaway to banks of $300 billion in TARP-1. 

      TRUTH - Geihtner's has stubbornly fought those who say that the bad banks,
      who made terrible loans and recklessly used leverage, should be allowed to fail
      rather than be propped up as Zombie banks, and given billions and billions,
      with no guarantee that they would ever make loans to Main Street!

TRUTH - Geithner certainly knew in advance of the AIG bonuses.  He happily
      took AIG management's position that the bonuses were necessary to retain
      the very people who destroyed AIG's solvency and refused to seek ways to
      deny them thse obscene bonuses.   More important, Geithner intervened
      in the dead of the night, thinking no one would find out, and cleared the way
      legally for the bonuses, by secretly striking a provision that both the Senate
      and The House of Representatives had agreed in the Stimulus legislation several weeks
      ago that would have forbade such bonuses!

       TRUTH - Geithner is not to be trusted.  Geithner failed to pay $34,000 in federal taxes
      between 2001 and 2004.  Surely, we have a right to expect the secretary of the Treasury to
      faithfully pay his own taxes fully.  He blamed Turbo Tax.

    Obama Denies That Extensive Economic Crimes
   and Fraud Lay behind The Financial Collapse of 2008.

    MR. LENO: I just read today about Merrill Lynch. They handed out $3.6 billion --
    it's not even million anymore, it's billions in bonuses. I know it would make me feel good --
    shouldn't somebody go to jail?    (Laughter and applause.) I say that because
    I watch those people in New York, even people who had lost everything --
    when Bernard Madoff went to jail, at least they felt they got something.

   MR. OBAMA: Right. They got some satisfaction. Here's the dirty little secret,
   though.  Most of the stuff that got us into trouble was perfectly legal.

   And that is a sign of how much we've got to change our laws -- right? We were talking earlier
   about credit cards, and it's legal to charge somebody 30 percent on their credit card,
   and charge fees and so forth that people don't always know what they're getting into.
   So the answer is to deal with those laws in a way that gives the average consumer a break.

   When you buy a toaster, if it explodes in your face there's a law that says your toasters
    need to be safe. But when you get a credit card, or you get a mortgage, there's
    no law on the books that says if that explodes in your face financially,
    somehow you're going to be protected.

    So this is -- the need for getting back to some common sense regulations --
    there's nothing wrong with innovation in the financial markets. We want people
    to be successful; we want people to be able to make a profit. Banks are critical
    to our economy and we want credit to flow again. But we just want to make sure
    that there's enough regulatory common sense in place that ordinary Americans
    aren't taken advantage of, and taxpayers, after the fact, aren't taken advantage of.                               

  (Source: http://freedomeden.blogspot.com/2009/03/obama-and-leno-march-19-transcript.html )


   Obama Admitted The Banks That Have Gotten
   the $300 Billion TARP Bailout have not used the
   money to make loans to Main Street.  But now
   he is planning for the US Government to give them
   even more money by buying their toxic assets
   at inflated prices.

Mr LENO: Well, when will the money -- this money was given out to the banks.
I would have thought by this time it would have sort of trickled down to Main Street,
to people wanting to get loans -- I mean, it all went out there months and months ago. Where is it?

OBAMA: Well, what's happening is a lot of these banks are keeping it in the bank because their balance sheets had gotten so bad that they decided, you know what, for us to stay solvent we need to maintain certain capital ratios; we've got to have a certain amount of capital in the bank -- and they haven't started lending it yet.   And that's why what we've got to do -- right now what we're doing is essentially doing a diagnostic test -- trying to use some auto language here so you -- (laughter) -- we're doing a diagnostic on each of the banks, figuring out what are their capital levels? Can they sustain lending? And then I think we're going to separate out -- those banks that are in good shape, we're going to say to them, all right, you're on your own; go start lending again. Those banks that still have problems, we'll do a little more intervention to try to clean some of those toxic assets off their books."
(In other words, we'll keep propping up the bloated and inefficient banks with bad management!  

"So let me get this straight. We have here broad acknowledgment that the first bank intervention didn't work because the banks used the money to bolster their capital ratios instead of lending the money out, which was the whole point of the intervention in the first place. Additionally, we have Obama talking about the need to "set up a securitized market... outside of the banking system" in order to "get credit flowing again," and establish the very lending that the bank intervention was supposed to have achieved. Isn't this an indictment, plain and simple, of TARP? And yet, after these "diagnostic tests," we may yet end up doing "a little more" TARP-style "intervention?"

Late last week, congressional watchdog Elizabeth Warren said the Treasury Department has done nothing to make sure $700 billion in taxpayer-provided bailout money is used to buttress the weak U.S. mortgage market, which has been the key catalyst for the growing global financial crisis. Warren, who heads the Congressional Oversight Panel for the bailout program, told ABC News on Friday that there was no evidence the Treasury had used TARP bailout money to put a floor under the falling U.S. housing market by avoiding preventable foreclosures.
There’s just no money that’s gone in that direction,”Warren said. “This one’s not even arguable. The TARP funds themselves have not been used in this way despite congressional statutes requiring them to do so.”  The congressional investigation is just the latest in a series of revelations demonstrating the possible misallocation of the taxpayer-provided bailout money. An ongoing investigation by Money Morning has detailed how banks have used the first $350 billion: They’ve used the capital to finance investments in other banks - including an investment in China - and to pay bonuses to executives. Then they audaciously refused to say where the money went, or how it was used, Money Morning has shown."
           ( http://www.moneymorning.com/2009/01/13/obama-tarp/    )
Not surprisingly,
Obama is requesting the bailout money comes just as banks have started lobbying the federal government to go back to its original TARP proposal, under which the Treasury Department would actually buy back troubled mortgage assets.


Obama White House economist, Larry Summers, on whose watch as Treasury Secretary in the Clinton administration financial deregulation got out of control, invoked the "sanctity of contracts" in defense of the AIG bonuses. So did Obama, saying the US Government might end up having to pay treble damages.
Buy I have read that the Courts rarely overturn taxation laws.  Is the issue of contracts more pro-bank excuse-mongering?  Interestingly, Obama does not regard other contracts to be "sacred".  Labor unions had to agree to give-backs in order for the auto companies to obtain federal help;  CNN reports that "Veterans Affairs Secretary Eric Shinseki confirmed Tuesday [March 10] that the Obama administration is considering a controversial plan to make veterans pay for treatment of service-related injuries with private insurance" the Washington Post reports that the Obama team has set its sights on downsizing Social Security and Medicare.   According to the Post , Obama said that "it is impossible to separate the country's financial ills from the long-term need to rein in health-care costs, stabilize Social Security and prevent the Medicare program from bankrupting the government." After Washington's trillion dollar bank bailouts and trillion dollar gratuitous wars for the sake of the military industry's profits and Israeli territorial expansion, there is no money for Social Security and Medicare. 

The US government breaks its contracts with US citizens on a daily basis, but AIG's bonus contracts are sacrosanct.  The Social Security contract was broken when the government decided to tax 85% of the benefits.  It was broken again when the Clinton administration rigged the inflation measure in order to beat retirees out of their cost-of-living adjustments.  To have any real Medicare coverage, a person has to give up part of his Social Security check to pay Medicare Part B premium and then take out a private supplemental policy.  The true cost of Medicare to beneficiaries is about $6,000 annually in premiums, plus deductibles and the Medicare tax if the person is still earning.  ( Source. )

(Sources: http://www.huffingtonpost.com/2009/03/20/what-obama-said-last-nigh_n_177401.html

            Wall Street Firms Looking to Circumvent TARP Bonus Caps Via Salary Increases
            He Makes Bush Look Smart
            David Sirota: "Obama's Team of Zombies" (Updated: Frank Rich on Geithner)

    Wall Street Culpabaility in The Financial Melt-Down of 2008
   More coming soon.  For now Google those words.