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William Black Tears Larry Summers Apart, Again Calls Out Obama To Place Bank Of America In Receivership

Tyler Durden's picture


William Black continues with his campaign to not only bring sanity and transparency to an administration wrapped in secrecy, legacy cover ups and fraud, but to finally do what had to be down two years ago: bring down the big banks, force a balance sheet restructuring at the TBTFs, and force a systemic reset which is the only thing that could bring the much promised "change for good" to this country. " Don't talk about doing the right thing -- do it -- and do it to a major contributor. Don't do it because it's a contributor, but because a bank that commits tens of thousands of frauds should immediately be placed in receivership." We once again hope that more people like Bill Black (if not he himself) will decide to run for president, and make the difficult choices necessary to begin the impossible task of truly fixing the mess this country finds itself in.

No Mr. President, Larry Summers Did Not Resolve the Financial Crisis for a Pittance, He Just Papered Over the Problem, originally appearing in Huffington Post

I passed up the obvious title: "Heckuva Job Larry!" That was the moment of President Obama's appearance on The Daily Show
with Jon Stewart that set all Americans cringing. Yes, he really said
that Summers "did a heckuva job." The candidate that was gifted the
opportunity to run against the legacy of one of the worst presidents in
U.S. history has, as president, used Bush as his role model to continue
many disastrous policies. It was strangely fitting that he would
channel Bush's infamous praise ("Heckuva job Brownie") for the FEMA
chief who failed New Orleans so badly in the hurricane.

President Obama understandably wishes to focus attention on the
economic disaster he inherited from President Bush. But Jon Stewart's
question to him, which led to the president's gaffe, correctly asked
about the message that Summers' appointment sent about the
administration's commitment to fundamental change.

Summers had financial red ink on his hands at the time he was appointed. He was Rubin's chief minion
in the successful effort to defeat effective financial regulation and
supervision. (Yes, the effort was bipartisan and the Republican
leadership shares in the guilt.) Summers was not simply wrong, but also
arrogant and brutal, in blocking effective regulation at the SEC and
the Commodity Futures Trading Commission. Summers was made rich by Wall Street in one of those sordid consulting arrangements designed to buy influence and reward past and future favors.

President Obama's appointment of Summers as his chief economic
advisor made the administration's overall response to the crisis
predictable. (Robert Kuttner gives a detailed explanation of the
policies that Rubin's protégés championed in his new book, A Presidency in Peril.)
The response would follow the disastrous Japanese model that has
harmed their economy and damaged their integrity. The dominant
characteristics can be summarized quickly: (1) the government would act
for the benefit of the largest financial firms and their CEOs, even
when they directed massive frauds, by (2) engineering a cover up of the
banks' losses and the CEO's misconduct; (3) the administration would
use the fictional reports generated to conduct the cover up to declare
victory (due to their brilliance); and (4) the same strategy would
impair the recovery. (For more on the cover up, see here and here.)

The strategy was also an assault on integrity, the rule of law, and
the core precepts of the Obama campaign for president. This is why we
warned from the beginning that the cover up could enrage the nation and
make him a one-term president.


President Obama on Wednesday night told Jon Stewart that the
administration had resolved the crisis for a pittance -- vastly less
than their measure of the costs of resolution in early 2009. He also
claimed that the administration deserved credit for preventing a second
Great Depression.

The first claim is too good to be true. Ask yourself the key
analytical question: Does the administration claim that the crisis
proved far worse or far better than its original estimates? Look at the
administration's initial estimates about employment or its initial
views about how deep the fall in housing values, and how quick their
recovery, would be? The administration has repeatedly emphasized that
the housing and employment crises are significantly worse than initially
forecast. That means that their initial loss estimates should have
proven significantly too low. The losses should be much greater than
their initial estimates.

Losses on homes are not driven only by employment and housing values.
Mortgage fraud causes dramatically greater losses. How much mortgage
fraud did the administration initially estimate? That's almost a trick
question, for the administration rarely uses the "F" word (fraud) and
gave no evidence at the time of its initial estimates that they took
into account fraud losses. Since the time of the administration's
initial loss estimates it has become indisputable that fraud was endemic
in liar's loans and that liar's loans were not simply enormous, but
also far more common than was originally reported. We have discovered
since the administration's initial loss estimates that it was common for
the SDIs to lie about the liar's loans they originated, sold, and
purchased. Fannie, Freddie, Lehman and many others falsely called their
liar's loans "prime."

What else could affect losses on liar's loans and CDOs backed by
liar's loans? The failure of the secondary market meant that sales of
CDOs and packages of liar's loans had to be individually arranged. Has
the secondary market in nonprime mortgages been restored since the
administration's initial cost estimates? No. That is important because
the administration initially claimed that the secondary market's
collapse was a temporary liquidity problem. The administration
anticipated that the secondary market would soon reemerge. It died more
than three years ago. With any luck it will never be resurrected.
Once more, the changes since the time of the initial loss estimate
should have led to greater losses than the administration's initial

This leaves us with two analytical puzzles. First, since the
administration's anti-regulators have spent nearly two years carefully
not looking at the liar's loans and determining their true value and the
true incidence of fraud, how is the administration estimating losses
without the facts necessary to make estimates? Second, ignoring the
first problem for the moment, what miracle made virtually all the losses
disappear -- at virtually no cost to the public -- even though every
aspect of the administration's initial loss estimates proved too optimistic?
Logically, the losses should be far greater. For the administration's
claim to have any merit they must have discovered the ultimate "silver
bullet" that slays $2 trillion in losses. So what is it -- and how did
it save $2 trillion? It certainly wasn't their brilliant negotiation of
the TARP terms. Any commercial lender that provided such an unlimited
guarantee would have cut a far better deal.

There was no silver bullet. The administration made the losses
disappear the old-fashioned way -- with fictional accounting. I have
already explained how the administration allowed the Chamber of
Commerce, American Bankers Association, and the Fed to enlist the
Congress to extort FASB to pervert the accounting rules so that most of
the SDIs' losses disappeared. The Fed also took over a trillion dollars
in toxic, largely fraudulent collateral -- and carefully avoided
conducting due diligence to discover either the value or the fraud
incidence of the collateral. In essence, the Fed took the toxic stuff
off the balance sheets.

Creating fictional numbers and hiding losses at the Fed doesn't
reduce losses. Unfortunately, it increases real losses. First, it
leaves the looters in charge, lets them pay themselves enormous bonuses,
and lets them cause greater losses. Recall George Akerlof's and Paul
Romer's title -- Looting: the Economic Underworld of Bankruptcy for Profit.
They showed that even without a bailout the fraudulent CEO could grow
wealthy by destroying "his" bank. With a bailout -- and the Bush and
Obama administration's de facto grant of impunity and an unlimited
guarantee to the SDIs -- the CEOs can loot without it leading inevitably
to bankruptcy. This has made banking an even more criminogenic
environment for accounting control fraud and will cause recurrent,
intensifying crises.

Second, accounting cover ups prevent markets from clearing. That
prolongs the recession. Japan shows how severe this problem can become.

Third, integrity is important. I really shouldn't have to explain
this. It depresses me that I have to argue that it is wrong to lie.
Our democracy, our economy, our society, and our souls depend on
restoring our integrity and the rule of law. Randy Wray and I have proposed a step
that would demonstrate the president's complete repudiation of Summers'
strategy and a return to the rule of law: Place Bank of America in
receivership for its tens of billions of dollars in fraudulent loans
and its multitude of foreclosure frauds. Don't talk about doing the
right thing -- do it -- and do it to a major contributor
. Don't do it
because it's a contributor, but because a bank that commits tens of
thousands of frauds should immediately be placed in receivership.

The president told Jon Stewart he was hamstrung by tradeoffs. He
said he could not place an SDI in receivership because it could cause
100 banks to fail. Randy and I explained the absurdity of this claim in
our two-part essay. Receiverships do not cause one hundred banks to
fail. The receiver would continue the bank's operation and pay the
checks. Why are 100 banks supposed to fail when their correspondent
bank ties remain functional, the checks clear, and the ATMs work? This
parade of horribles has never happened.

The administration claimed that it was vital that the Dodd-Frank bill provide it with receivership powers so that it could close
a future Lehman without causing cascade failures. Now, the president
tells us that he refused to follow the Prompt Corrective Action law and
close insolvent SDIs because some official lied to him and told him that
operating (not closing) a bank through a receivership
would cause 100 banks to fail? That's why Obama has allowed the SDIs
to operate with impunity and provided them with an unlimited federal
guarantee? And he, a skilled lawyer, cannot see the contradiction in
Treasury -- his Treasury -- claiming that the Dodd-Frank bill's grant of receivership powers would prevent such cascade failures?

h/t Mike


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Thu, 10/28/2010 - 12:41 | 683613 Dburn
Dburn's picture

I never thought I would say it, but we need more and better Lawyers.

Thu, 10/28/2010 - 13:02 | 683683 erik
erik's picture

Courageous lawyers.  Not more!  We need someone who will stand up to this atrocity of fraud.  We need more William Blacks in this world.

Obama might as well be Bush for god sake.  What good is it to have a smart president when they make dumb decisions?  Supporting Summers is just embarassing.  Obama is either clueless or spineless.

We need an independent president.

Thu, 10/28/2010 - 13:14 | 683713 NOTW777
NOTW777's picture

so you think obama is smart in all 57 states?

Thu, 10/28/2010 - 14:10 | 683899 knukles
knukles's picture

What?  He admits he's not so smart in the other 3?

Fri, 10/29/2010 - 00:17 | 685134 G-R-U-N-T
G-R-U-N-T's picture

beautiful!!! lol...

Thu, 10/28/2010 - 13:22 | 683732 Bob
Bob's picture

We've got the lawyers.  Unfortunately, the banks are working night and day to sucker homeowners into ill-advised refi's to head off a fatal mass Show Me The Note movement that would blow them and their criminal enterprise out of the water. 

Why are we at ZH allowing this to happen? 

Thu, 10/28/2010 - 17:23 | 684586 cossack55
cossack55's picture

Because, apparently, we are better sniping on computers than in DC or NY. 

Thu, 10/28/2010 - 14:22 | 683793 Technichel
Technichel's picture

Smart? I would recommend that you research his college days. That will cure your idea that he is smart. The only thing he is capable of is speaking with a teleprompter. That does not take brains.

Fri, 10/29/2010 - 00:21 | 685140 G-R-U-N-T
G-R-U-N-T's picture

One thing for sure he has managed to piss alot of people off!!!

Thu, 10/28/2010 - 16:18 | 684421 Unlawful Justice
Unlawful Justice's picture

We have a total breakdown of justice.  From the Federal government down to State Supreme courts.    Lady justice is dead!!!

Lawyers are predators and should be treated as such.


Thu, 10/28/2010 - 21:54 | 684987 illyia
illyia's picture

Help. My country has fallen and it can't get up...

Thu, 10/28/2010 - 16:24 | 684438 Panafrican Funk...
Panafrican Funktron Robot's picture

"The president told Jon Stewart he was hamstrung by tradeoffs. He said he could not place an SDI in receivership because it could cause 100 banks to fail. Randy and I explained the absurdity of this claim in our two-part essay. Receiverships do not cause one hundred banks to fail. The receiver would continue the bank's operation and pay the checks. Why are 100 banks supposed to fail when their correspondent bank ties remain functional, the checks clear, and the ATMs work? This parade of horribles has never happened. "

Maybe he should think for 2.5 seconds and realize that BAC in receivership = derivatives nuke.  As in, fucking everything, nuked.  I'm not personally opposed to this, but Mr. Black is seemingly unaware of the obvious here.

Thu, 10/28/2010 - 21:30 | 684947 zevulon
zevulon's picture

i am a lawyer and i worked in bankruptcy and i've thoroughly read the receivership rules for financial institutions. and the answer is NO WAY. you need the recievers to be appointed as judges of their own cases. 


this corruption doesn't end by making sure there is more justice in the winding down of these institutions. it ends by winding them down AS FAST AS POSSIBLE. fewer lawyers, consultants and investment bankers and more judges that are forced to resolve the case as fast as possible.

we need less process, less procedure, less delay, and less justice, in order to wrench our financial system out of its corrupted roots.


As far as lawyers go, you could begin improving the system by requiring lawyers to fit all arguments into a submission of no longer than TEN PAGES. and to absolutely forbid plaintiff/parties with more than 200k in damages from restating or resubmitting or AMENDING, ANY SUBMISSIONS WHATSOEVER FOR ANY REASON. 

we need to think out of the box before things fall apart even worse.

Thu, 10/28/2010 - 12:46 | 683632 Azannoth
Azannoth's picture

Jon Steward soft ball question did more harm to Obama's credibility than the accusations of his harshest critics

Thu, 10/28/2010 - 12:48 | 683636 SheepDog-One
SheepDog-One's picture

Yep, when Jon Stewart gives his disaproval of Obama, you know its over.

Something very big is set to pop here, and its not going to be pretty at all.

Thu, 10/28/2010 - 12:54 | 683662 Azannoth
Azannoth's picture

Any criticism that comes from the Republicans or Libertarians against Obama, he can just shrug off the Left won't listen, but when one of their own 'prists' asks a low ball question jokingly at that, and gets a 'Fuck the Little People' answer well, game over

Thu, 10/28/2010 - 15:46 | 684303 pan-the-ist
pan-the-ist's picture

You're right.  Heckufa Job Larry kind of ended any respect that I had for Obama, just like Heckufa Job Brownie probably did the same for many of Bush's supporters.  Complete failure by showing complete ignorance to reality in a time of crisis.

Thu, 10/28/2010 - 13:22 | 683734 NOTW777
NOTW777's picture

LOL. libs get their deep thinking from J Stewart.

Thu, 10/28/2010 - 16:54 | 684512 squid_pro_quo
squid_pro_quo's picture

So, you're getting your deep thinking from Bill O'Reilly?

No, I know, Rick Santelli.

Or, is it Jack Handy?

Personally I thought Stewart handled Obama pretty effectively. He laughed in Obama's face when he said "overnight we did not transform the healthcare system".

Thu, 10/28/2010 - 13:35 | 683746 Bob
Bob's picture

There's the so-called "left" represented by the sell-outs at, and then there is the core "Progressive" constituency, which Barry has permanently lost. 

It's over for Barry.  He can only do the right thing for his remaining 2 years.  Or not. 

What a damning legacy for the first African-American President if he doesn't do a 180 now. 


Thu, 10/28/2010 - 14:13 | 683913 zaknick
zaknick's picture

He's not a true black American. His family didn't suffer the depravity of slavery, Jim Crow or had his neighborhood turned into a war zone by the ethnic cleansing "war on drugs"

He's not dumb at all, just captured (probably even created) by the fascists. A true Manchurian candidate. To think my family and I voted for him ,worked our butts off making calls and volunteering.




Thu, 10/28/2010 - 16:48 | 684053 Bob
Bob's picture

A black boy who grew up by the name of "Barry" in a white family headed by a grandmother who was a bank branch manager.  In Hawaii. 

Then he went to Harvard, by way of Columbia. 


He doesn't have a clue. 

Thu, 10/28/2010 - 12:52 | 683640 sodbuster
sodbuster's picture

If William Black isn't careful, he's liable to have a "sudden" massive, fatal coronary.

Obama a "skilled" lawyer? Liar, yes, lawyer, no.

Thu, 10/28/2010 - 13:03 | 683685 FEDbuster
FEDbuster's picture

What would anybody do, if William Black was found dead of ____________ in the coming weeks.  Hell, I bet they could drop him in his hot tub, and it wouldn't make the nightly news (except maybe Ratigan and Beck's shows).  Alex Jones would scream and shout about it, but most would believe the "official" report of heart attack, stroke, etc...  99.9% of Americans couldn't tell you who William Black is (or was?).

Thu, 10/28/2010 - 13:27 | 683750 Fed Supporter
Fed Supporter's picture

As some other poster noted the other day, suicide by the old 2 shots to the back of the head method.

Thu, 10/28/2010 - 14:14 | 683917 zaknick
zaknick's picture

Like Pulitzer prize winning journalist Gary Webb and Steve Kangas.

Fri, 10/29/2010 - 01:06 | 685186 halvord
halvord's picture

And Salvador Allende.

El Presidente has committed suicide by shooting himself in the back 22 times with a machine gun! - National Lampoon

Thu, 10/28/2010 - 13:30 | 683760 Joe Davola
Joe Davola's picture

But I'm a supersticious man. And if some unlucky accident should befall him, if he should be shot in the head by a police officer, or if should hang himself in his jail cell, or if he's struck by a bolt of lightning... *then I'm going to blame some of the people in this room*... and that, I do not forgive.

Thu, 10/28/2010 - 13:31 | 683765 frankTHE COIN
frankTHE COIN's picture

He's going to accidently fall on a letter opener 12 times.

Thu, 10/28/2010 - 13:42 | 683757 Bob
Bob's picture

Black is clearly at peace with his fate, whatever it might be.  Better to have died with integrity than to have lived forever in corruption. 

Especially since living forever is not an option.

Thu, 10/28/2010 - 13:44 | 683809 Turd Ferguson
Turd Ferguson's picture

"Better to have died with integrity than to have lived forever in corruption.


Thu, 10/28/2010 - 16:34 | 684461 Unlawful Justice
Unlawful Justice's picture

What matters most-

To have self respect based on an appreciation of one's true inner self.  Not on appearance or position.  Self-respect is when actions stem from principles, or deep convictions rather than motives of expediency or gain.

Thu, 10/28/2010 - 17:25 | 684590 cossack55
cossack55's picture

Maybe in his hot tub.

Fri, 10/29/2010 - 00:26 | 685151 G-R-U-N-T
G-R-U-N-T's picture

Black is no pussy, just a patriotic American doing what most don't have the balls to do.

Thu, 10/28/2010 - 12:49 | 683641 SheepDog-One
SheepDog-One's picture

Fan, have you met shit yet? Get acquainted, youll be seeing a lot of each other in the coming days.

Thu, 10/28/2010 - 12:50 | 683647 carbonmutant
carbonmutant's picture

Sounds like William has some PUTs on BAC...

Thu, 10/28/2010 - 12:51 | 683651 theXman
theXman's picture

The "Change" candidate Obama turned out to be just another elitist who perpetuates our fraudulent economic model.

Thu, 10/28/2010 - 14:21 | 683940 the rookie cynic
the rookie cynic's picture

What we needed was a reincarnation of "Old Hickory" Andrew Jackson. Speaking of the central bank of his day he said:

"Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves."

What we got was "Ole' Pussy Willow" Obama.

Thu, 10/28/2010 - 15:28 | 684233 OldTrooper
OldTrooper's picture

"Ole' Pussy Willow"

Now that's funny!

Thu, 10/28/2010 - 12:52 | 683656 Popo
Popo's picture

Obama's cluelessness was stunning.  He actually made the case that things were much better than he thought they'd be.   Excuse me Mr. Obama, but the entire world witnessed your administration underestimate the severity of this crisis at every turn.

We also heard you say that you didn't get elected to make "fat cat bankers" rich.  Well... hello?

Obama is the worst kind of empty suit:  Powerless and seemingly unaware of his failures and the dangers ahead.

And his defense of Summers will go down in history as an incredibly stupid move.



Thu, 10/28/2010 - 12:57 | 683668 Azannoth
Azannoth's picture

That guy is Completey lost without a teleprompter

Thu, 10/28/2010 - 13:05 | 683692 FEDbuster
FEDbuster's picture

He has used his teleprompter in meetings with as few as five people, WTF?

Thu, 10/28/2010 - 14:19 | 683931 -Michelle-
-Michelle-'s picture

Nobody short of those on a ventilator is that unaware.  Which leads me to believe that he knows exactly what he's doing.

Thu, 10/28/2010 - 21:45 | 684962 i-dog
i-dog's picture


Thu, 10/28/2010 - 12:58 | 683669 Sean7k
Sean7k's picture

Well, when you put it that way.....when is the revolution scheduled? Because really, what is the point of continuing to complain? The US government is a criminal enterprise. Are we going to be ruled by and financially support a criminal enterprise?

There are no enforcement groups to round up the traitors or to shut down the machinery. There is only us. 

The power of the government lies in Fractional Reserve Banking and the police powers to demand taxes. It is also their greatest weakness. Refuse to use FRN's for anything except bank debts and taxes. Convert all others to non dollar investments or pm's. Do all you can to stop paying taxes. This includes local trade in pm's or other forms of currency, including other country money and barter.


Thu, 10/28/2010 - 12:58 | 683671 Species8472
Species8472's picture

What's an SDI?

Thu, 10/28/2010 - 14:02 | 683872 the rookie cynic
the rookie cynic's picture

I think this is Mr. Black's version of TBTF. He calls them Systemically Dangerous Institutions.

Thu, 10/28/2010 - 15:51 | 684327 w a l k - a w a y
w a l k - a w a y's picture

thanks for paying attention. I'd forgotten that.

Thu, 10/28/2010 - 21:56 | 684989 Cui Bono
Cui Bono's picture

ooh dear God... I've waited since 1988 for someone to ask this....

Control, I'm here!

Thu, 10/28/2010 - 13:10 | 683705 Ancona
Ancona's picture

Obama has proved himself to be exactly the things he campaigned against. He has bestowed millions on the corruptocrats who bought him the White House, and done nothing to stem the systemic fraud and criminal actions of the bankers who put us here. In fact, he hired the most corrupt of them all to be in his cabinet, then hired forty five or so unconstitutional "czars", to further invade our lives.

Rather than bring transparency to the process, he has encouraged obfuscation and evasion. Rather than allow the American People to have a reasonable amount of time to read and try and understand the health care bill, it was rammed up our asses without so much as a week to read it over. None of our congress critters could have possibly read this monster, much less gained an understanding of what each of the provisions would do down the road [butterfly effect and bulldozer effect].

This man has lost all credibility in the eyes of the majority in this nation, and will fall hard in 2012.

Thu, 10/28/2010 - 13:31 | 683762 Bob
Bob's picture


Barry is nothing but a "dead man walking." 

Thu, 10/28/2010 - 14:39 | 684003 Pat Hand
Pat Hand's picture

This man has lost all credibility in the eyes of the majority in this nation, and will fall hard in 2012.

But that's just not true.  His approval rating this week is 49%.  He's lost credibility with some of the nation (and never had any with Republicans to begin with) but the bulk of the middle & lower class still love him.

The "czar" thing is wingnuttery - Bush & Clinton all had about as many "czar"s.  It's just a release point for anger, not a real issue

Thu, 10/28/2010 - 14:44 | 684023 nedwardkelly
nedwardkelly's picture

Obama has proved himself to be exactly the things he campaigned against.

In other words, Obama is a politician. Just like those before him, just like those that will come after him.

Thu, 10/28/2010 - 13:15 | 683716 lynnybee
lynnybee's picture

thank god someone is ripping LARRY SUMMERS apart !   now, can he also rip ROBERT RUBIN apart, too !    ROBERT RUBIN needs to flee to his castle somewhere out of the country & live happily with all the cash / bullion that he's got in his secret account.    NEVER IN MY LIFE HAVE I SEEN SUCH AWFUL PEOPLE AS LARRY SUMMERS & ROBERT RUBIN.  (+ Clinton ) .      

I used to be scared, but, I am now hopeful that if we could get WILLIAM K. BLACK, DYLAN RATIGAN, KARL DENNINGER & MAX KEISER in a "dream team" we'll survive this mess .   

put these s.o.b.'s in jail ....... for the greater good, please jail them .

Thu, 10/28/2010 - 13:43 | 683766 Bob
Bob's picture

" . . . if we could get WILLIAM K. BLACK, DYLAN RATIGAN, KARL DENNINGER & MAX KEISER in a "dream team" we'll survive this mess . " 


And Tyler too! 

Thu, 10/28/2010 - 14:18 | 683928 zaknick
zaknick's picture


Thu, 10/28/2010 - 16:54 | 684515 lynnybee
lynnybee's picture

Yes, TYLER, too.   & then, let's add CHRIS WHALEN to the mix & I would be able to sleep at night..........regards ............

Thu, 10/28/2010 - 13:18 | 683724 Sophist Economicus
Sophist Economicus's picture

William Black is a penis and Obama is an arse -- the possibilities are endless, especially if we include the gelatenous Larry Summers

Thu, 10/28/2010 - 13:19 | 683725 Sophist Economicus
Sophist Economicus's picture


Fri, 10/29/2010 - 00:37 | 685157 G-R-U-N-T
G-R-U-N-T's picture

Hm...What's behind that dot SE? More please...

Thu, 10/28/2010 - 13:23 | 683742 John McCloy
John McCloy's picture

I still believe that the elites have information which they are using to control the "President" into acting precisely as they desire. One of these items is his alleged affair with Vera Baker which appeared for one day only in the middle of debates over financial reform/Fed Audit/Return of Glass-Steagall.

  This story was trotted out for one day and one day only with accusations of a video potentially existing from a hotel during his time in the Senate. As soon as they ensured that the President would stay quiet on the Lincoln Amendment/Fed Audit/Glass Steagall they put it back in the box.

Whos owns the National Enquirer?

Who attended the Bilderberg meetings in 2008,2009 & 2010? Same guy.


Thu, 10/28/2010 - 14:22 | 683942 -Michelle-
-Michelle-'s picture

Vera Baker is a cover scandal for the real one.  Search "Man Country" and  Or just click:

Thu, 10/28/2010 - 13:32 | 683769 Gimp
Gimp's picture

P.J. O'Rourke said it best on Bloomie yesterday - "We now have a smarty pants ivy leaguer as president who has no clue on how to be a president".


Thu, 10/28/2010 - 13:44 | 683808 Psquared
Psquared's picture

I wonder sometimes if Obama has been co-opted. Maybe he does not like the daily grunge of President because his hands are tied. On the campaign trail he can be his own man, but back in Washington he is under the thumb of the oligarchs.

Thu, 10/28/2010 - 13:51 | 683835 Turd Ferguson
Turd Ferguson's picture

Close. He's nothing but a puppet for the Soros-led global socialists. A useful idiot, as Lenin would say. "Discovered" just a short 10 years ago, walking the streets of southside Chicago as an "organizer". Quickly promoted through the state legislature to the US Senate. Now he's POTUS? Nope, he's nothing but a puppet receiving his daily talking points through his teleprompter.

What I fear is what happens when "they" decide he's no longer useful.

Thu, 10/28/2010 - 15:26 | 684221 FEDbuster
FEDbuster's picture

In the meantime, they tell him to "take a vacation", "go do some fundraising", "play some golf", etc...  When they let him speak, he reads what they put on his teleprompter.

Fri, 10/29/2010 - 01:02 | 685182 G-R-U-N-T
G-R-U-N-T's picture

Are you saying Obama's like a trained dog, ie...bark Obama, sit Obama, roll over Obama, fetch Obama, light my cigar Obama etc...?


Thu, 10/28/2010 - 16:22 | 684434 Bob
Bob's picture

Obama is the greatest oratorical talent the world has ever seen.  He could fully utilize that via television and mobilize public opinion on fundamental issues of widespread popular sentiment any way he sees fit.  He could use that to bend the financial world to his will. 

Given that this gift would appear to be the only notable talent he has--and what got him elected--not using it justifies placing 100% of the blame on him, imo.

Thu, 10/28/2010 - 14:18 | 683926 George Washington
George Washington's picture

If William Black is pointed Attorney General, then I will know that things are right in the world ...

Thu, 10/28/2010 - 21:21 | 684937 Quonk
Quonk's picture

...would be a mighty fine start...for the perp walks would most certainly follow.

Thu, 10/28/2010 - 14:24 | 683951 Eureka Springs
Eureka Springs's picture

TD, ZH... you all are fantastic bloggers who do wonderful copius amounts product. So I say this with all due admiration.... you should consider linking back to people/articles you mention much more than you do. Yesterdays mention of a Time article suggesting civil war could happen (i could not find it) and todays original Black article come to the top of my head.

These and others deserve direct links to their work.

Thu, 10/28/2010 - 14:25 | 683959 bronzie
bronzie's picture

"We once again hope that more people like Bill Black (if not he himself) will decide to run for president, and make the difficult choices necessary to begin the impossible task of truly fixing the mess this country finds itself in."

I remember thinking along these lines way back when Ross Perot was running for President - and here we are 18 years later and the only thing that has changed is that the criminals running this country have gotten even more brazen than they were then

Thu, 10/28/2010 - 14:32 | 683979 Rick64
Rick64's picture

William Black a true patriot. Uncorruptable.

Thu, 10/28/2010 - 17:02 | 684533 calltoaccount
calltoaccount's picture

Same goes for David DeGraw.  Nobody says it more clearly or directly than he does in this video (despite the over-amped music and graphic).


DeGraw's platform for real change:


The Economic Elite Vs. The People of the United States of America


It's time for 99% of Americans to mobilize
and aggressively move on common sense political reforms.

We will obviously have many differences on how our country should be run, but we can all come together to dismantle the Economic Elite by making several pivotal political reforms. As long as the game is rigged in favor of the Economic Elite, we will all lose. So let's find common ground and focus on several obvious battles that we need to win, and can win:


Election Reform 

* Electronic Voting: First and foremost, no private corporation should be able to tell us who has won an election without providing an auditable paper trail. Many Democrats felt that Bush stole the 2000 and 2004 elections, and many Republicans felt Obama stole the 2008 election. Of course people are going to feel that elections are stolen when you have a private corporation secretly counting the votes; it is the inevitable result when you can't verify the election results. In the past few years companies that count the votes have been consolidating, and one company, ES&S, now secretly controls the majority of all our votes. As voting watchdog Brad Friedman stated, “With the ES&S takeover of Diebold/Premier, their nearest competitor, the privately-run election Goliath now has an un-overseeable lock on virtually every election in the United States of America.” It is common sense to say that this is way too much power to be put into one private corporation. 

* Campaign Finance: The stunning ruling by the Supreme Court to allow unlimited political spending by the Economic Elite has made a bad situation even worse. We must level the playing field by enacting laws to prevent the overwhelming influence of big money interests in controlling politicians who are forced to pander to them for the ever-increasing need to raise more and more money to have any shot at winning public office. Statistics show how much the Economic Elite already dominate this process: over 90% of the time the candidate who simply spends more money on their campaign wins the election. 

* The Two-Party Oligarchy: We must end the two-party system by funding and voting for alternative parties. It is absurd and completely outdated to only have two dominant political parties in a technologically advanced nation of 309 million people. The two-party paradigm is obsolete and creates a system easily manipulated, as the past decade proves with the co-option of the Democratic and Republican parties. We can give our money and support to whomever we like - Libertarians, Tea Party, Progressives, Greens, Independents and the many soon-to-be-created political groups. However, it is pivotal that we immediately cease support for both the Republican and Democratic parties. We understand the there are representatives from both parties who are fighting for our interests, but they are very few and easily marginalized by paid-off party leaders. 

* Getting on the Ballot: Republicans and Democrats have created rules to make it increasingly difficult for opposing political parties to even get on the voting ballot. We must make this process easier and invite new parties onto the ticket. 

* Debate Commission: The Democratic and Republican control over who is allowed to participate in the nationally televised debates gives the two parties an insurmountable advantage over any other parties. If you are not even allowed to participate in them, you have no shot at winning. Along with this, all candidates should be given a fair share of television coverage. 

* Voter Registration: If you are a citizen, you should be automatically registered to vote. 

Governmental Policy Formation 

* Secrecy, Transparency and Accountability: Government secrecy is at the root of most of our current societal and economic problems. When decisions are made in secrecy, corruption will most often be the result. By throwing light and investigation on the government policy process, we can easily expose the Economic Elite's agenda and limit their influence. As part of this, all legislation and conference reports must be posted online prior to Congressional debate and vote. 

* Lobbying: Along with campaign finance, political lobbying is another way the Economic Elite can easily manipulate our political process financially, in what amounts to legalized bribery. In 2009, a record amount of money was spent lobbying Congress, and now with the new Supreme Court ruling, lobbyists will have even more power to manipulate the political process with what amounts to buying the laws of our nation. Lobbying activities behind closed doors must cease entirely and equal time must be given, transparently, to all the parties directly affected by the law being written. 

* Shutting the Revolving Door: No politician should be allowed to profit from government laws or policies which they have written or supported. The practice of leaving a major company to become a politician who then creates and/or supports laws that directly benefit the corporation he or she used to work for, or, conversely, politicians who leave public office to take a high-paying job for a company they have benefited, is a grotesque abuse and manipulation of the democratic process. The revolving door between politics and big business is worse than it has ever been and has corrupted the government like never before. 

Information Platforms 

* Media Concentration: Having a few large multinational corporations dominating the overwhelming majority of our news and information system will never lead to an informed citizenry. Only ten multinational corporations dominate our mainstream media system. These companies are run by 118 individuals who actively work to propagate Economic Elite rule. The people who run these media companies also sit on other corporate boards that often represent a major conflict of interest. Having only 118 people in ten companies dominating a system that creates public opinion for 309 million people is absurd. We must break up this information cartel and support a more diverse and vibrant independent press that fosters real investigative journalism. 

* Net Neutrality: The free and open architecture of the Internet is vital to our success. Without an open Internet our most powerful medium for research and communication, and key organizing tool, will be lost. The Internet must be protected from growing forces that seek to control it by limiting our access to information and our ability to communicate on a mass scale. 


* Medical Costs: We have disagreements on how to best provide healthcare, but we all agree that whatever the method, the result needs to be lower costs. We have the most expensive healthcare system in the world and we now pay twice as much as other nations. Other than creating huge salaries for health industry-related executives, there isn't any reason why we should be forced to pay such outrageous sums of money for second-rate care. No American should die due to lack of money, or have to face bankruptcy in order to get life-sustaining treatments. 

* Food and Water Supply: Our food and water supply systems have become a major health hazard. The amount of harmful chemicals found in both our food and water have reached record levels and is causing alarming levels of sickness in a growing number of people. 

Real Economic Competition 

* Most Americans Believe in Competition: If a person works hard, is productive and good at what they do, most everyone believes that they should make more than a person who sits around looking for handouts. However, just as in sports, to maintain a competitive environment you have to have rules in place that prevent people from having an unfair advantage. For those who believe in competition, in capitalism and free markets, you have to acknowledge that what we have now is not a free market based on fair competition. It is a rigged market, where larger institutions like Goldman Sachs and JP Morgan have an unfair advantage. We cannot allow them to be beyond the law, manipulate the market and then receive taxpayer funds to increase profits and risk-taking while smaller companies, outside of Economic Elite circles, have to play by a much stricter set of rules. 

You can't have free market capitalism when you have government policies favoring companies that have more political clout than others. What we have is socialism for the rich and trickle down economics for the rest of us. We have a market systemically designed to funnel money into the pockets of the richest. If the past few years have proved anything, they have proved that our economy is much more like a pyramid scheme than a free market, where the more money you have, the more money you make. So whatever your economic beliefs and theories might be, let's all come together to admit that our "free market" is an illusion. We need to make the economic playing field fair so that we can have real competition. 

* Redistribution of Wealth: Due to the rigging of our economic and political system, vast sums of wealth have been hoarded by the Economic Elite over the past 40 years. This money must be redistributed to the 99% of Americans who have been robbed and exploited. There will be much heated debate over how this money should be distributed, but we all need to agree that we must first hold the Economic Elite accountable and our wealth must be seized from them. 

* Investigations and Prosecutions: The Financial Crisis Inquiry Commission has the power to reveal the inner workings of the financial coup. We must apply intense public pressure and scrutiny to force the Commission into conducting a real investigation. Another urgent priority needs to be a much wider-ranging look at war profiteering. There has been some investigation, but not nearly enough and hardly any prosecution. These are just two of the many investigations that need to be launched. As long as we keep letting the Economic Elite get away with outright theft in broad daylight, we will never be able to restore a nation of law. 

There are obviously other vital issues that need to be addressed, but these are the core common-ground issues that we must urgently rally around and support. Unless we organize and take decisive action on all these issues, we will all suffer the consequences of our collective inaction. Any politician who does not urgently move on these issues must be voted out of office and replaced by people who will aggressively fight on these fronts. 

These are the core issues that keep the Economic Elite in power. As famed military strategist Carl von Clauswitz wrote in his study "On War," it is pivotal to strike at this core structure, at "the hub of all power and movement, on which everything depends."





Thu, 10/28/2010 - 21:27 | 684944 Rick64
Rick64's picture

Good post. He covers just about all the major problems.

Thu, 10/28/2010 - 14:39 | 684005 Tarheel
Tarheel's picture

But...But..But Barry, the junior congressman from Chicago who didnt present a single bill and was better known as a community organizer, promised us that we would have transparency!?! He said we would be able to view a bill online 7 days before it was voted on!

Thu, 10/28/2010 - 14:46 | 684026 SteveNYC
SteveNYC's picture

Oh, when you said "tears Larry Summers apart" I though you meant literally.....I had my hopes up!!

Thu, 10/28/2010 - 15:05 | 684121 hedgie
hedgie's picture

If only Soros WERE controlling Obama.  Soros actually OPPOSES the looting and probably WOULD shut BAC down.

Thu, 10/28/2010 - 15:41 | 684284 OldTrooper
OldTrooper's picture

Soros actually OPPOSES the looting...

I bet the only problem he sees with the looting is that OTHERS are beating him to it!  The only time he'd shut down BAC would be if he had an inside track on picking up choice assets for pennies on the dollar out of recievership.

Thu, 10/28/2010 - 15:27 | 684232 beastie
beastie's picture

Talking about tele prompters, not born in the USA, controlled by the oligarchs etc. , Libs get their cues from John Stewart etc. does nothing for anyones cause. All it does is preach to the choir and makes you look irrational to those who are not part of the choir. BTW he had a teleprompter. Who cares.

Until everyone gets past the notion that the two parties are filled with brain dead, thieving, lying, self serving, sexual deviant scum bags we will be having the same stupid conversation about John "deep tan" Boner in two years or whatever tool is hoisted up there.

What was interesting was Stewart would lob him a softball question (which he undoubtedly had beforehand) and Obama screwed them up with Freudian slips. That tells me he is basically an honest guy who knows he has been fucked over by the rats who have jumped ship or pushed overboard. So lets get back to the substance Hmmm.

The whole country was told unless we have 700 billion or so we are doomed. A coupleo f trillion later we are still doomed. So here we are past the point of no return. The Republicans will get in and TARP2 and QEwhatever will continue. The Lawyers will fight amongst themselves while we deeper and deeper into shit. Only one way out devalue the currency by tying to physical assets as a medium of exchange like gold. We will lose reserve status though which will force us into producing something other than financial acronyms to sell to other idiots.

This is not going to happen without the country (that's us) actually doing something about it. I am doing something by forcing the banks hand by putting my mortgage payment into escrow.

Ask not what can your country do for you. Ask what you can do for your country.


Fri, 10/29/2010 - 07:33 | 685329 Monday1929
Monday1929's picture

"mortgage in escrow"-  BRAVO. Starve the criminal F---Ks.

Thu, 10/28/2010 - 15:52 | 684331 macholatte
macholatte's picture

Bill Black needs to be made special prosecutor with plenty of Benny Bucks to get the job done and freedom from politics. Within 3 months TSHTF bigtime.

I forgive him for being on Huffington Post because what he says is so much more important than the venue he says it from. Let us hope that his voice gets louder and louder and louder.

Thu, 10/28/2010 - 17:18 | 684572 Unlawful Justice
Unlawful Justice's picture

Much like ZH.  Bill Black is a light in total darkness.

But hope is illogical.  

Human's are corrupt able on all levels. No exceptions!  We need to come to terms with this very deep human flaw.  Shame about shame.  We don't want to believe this is true.  We deny it, suppress it, act as if it's over there, but not right here.  Cognitive dissonance right in front of our face.  We have to come to terms with what it means to be human and build systems of accountability that reflects this deep human flaw.  Denial about denial.   It's what we run from.  Skip the religious rhetoric.  All religion is out dated elixir.  Logical rational thinking is are greatest attribute.  It's time be brutally honest.


Thu, 10/28/2010 - 22:24 | 685034 RichardP
RichardP's picture

Logical, rational thinking leads to this conclusion:  if you can screw someone over and steal their money and never be held accountable for doing this, do it.

Nothing could be more logical than that?  That's the way you want to live??  That's a basis on which to build a great society?

Thu, 10/28/2010 - 18:36 | 684723 americanspirit
americanspirit's picture

Hope brings energy and lack of hope kills all possibilities. The effectiveness of being brutally honest assumes knowledge and insight into what is true. We are all flawed - no doubt. Religion is pure fraud - no doubt. Logical rational thinking is a very culturally-defined thing - empathy and intuition are equally valid means of seeking the truth. Not as substitutes for logic and rationality, but as necessary complements. Without all these qualities, honesty based only on logic and rationality can lead to self-deception and evil as surely as corruption of the moral sense does. The mind is a wonderful thing, but so is the heart. Use all means to seek truth or you will inevitably deceive yourself into thinking you've found it when you have not. I say this as a seeker of truth who still has hope of finding it- however silly that may seem in the face of so-called realistic thinking.

Thu, 10/28/2010 - 20:20 | 684838 Unlawful Justice
Unlawful Justice's picture

Giving up hope, is not giving up effort to change.   

"The effectiveness of being brutally honest assumes knowledge and insight into what is true"  No assumptions, you have to question all assumptions to stay in cognitive reality.

"The mind is a wonderful thing, but so is the heart."  Heart and earth is the same world just spelled differently.  Without heart awareness we no longer have insight.  Insight is the ability to see with the eyes of the heart.  This lack of insight is what shuts down any awareness of our inner discomfort.  It shuts down our ability to perceive from where this discomfort is arising.  And it shuts down our ability to perceive that our outer discomfort is a reflection of our inner condition.  This inner condition then leak's unseen outward along the pathway of awareness.  It radiates from with in our emotional body into our thought forms, polluting mental activity.  Then it becomes manifest within our behavioral traits, within our body condition and as reoccurring events and circumstances in our life that appear to deliberately sabotage our plans.


Fri, 10/29/2010 - 11:17 | 685759 macholatte
macholatte's picture


 I say this as a seeker of truth who still has hope of finding it- however silly that may seem in the face of so-called realistic thinking.


We're all doing that. Even the ones who lie and deceive because to them, their truth is how well they have tricked you and altered your truth.

Perhaps you have found a lot more truth than you want to accept. Once you can get over that, once you can successfully challenge your belief system, you have a chance and that's not easy. Then, just when you believe you're totally in the dark, you might get very lucky when someone like Bill Black flips the light switch.


Thu, 10/28/2010 - 20:16 | 684849 irieblue
irieblue's picture

Toss in GM, Chrysler, AIG , Fannie and Freddie and now say it's a pittance. Sure the treasury is ahead if you leave those names out and only count on City, BoA and the other zombie banks. It is truly a mess the situation that Obama has been asked to fix overnight.

Fri, 10/29/2010 - 00:19 | 685138 Real Estate Geek
Real Estate Geek's picture

It is truly a mess the situation that Obama has been asked to fix overnight.

Oh, puh-leese!  It's been two years and he hasn't done a damn thing to clean up the mess.  In fact, he's made it worse; exponentially worse

Fri, 10/29/2010 - 02:22 | 685249 tony bonn
tony bonn's picture

god bless bill black!!!!

and pray for his safety.

"It depresses me that I have to argue that it is wrong to lie."

bill black for president.

Fri, 10/29/2010 - 15:24 | 686564 fallst
fallst's picture





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