Before: "Sissy, these will be the biggest thing since the Army-McCarthy Hearings."
Not! as it turned out.
Democratic-led Committee; cross-examining Bernanke and Republican "bureaucrats," -- probably too harsh a term for these very smart guys -- presumably; Bush appointees and nominees nevertheless, I think;
SEC, what a joke. No one in our government is assigned to sit back and ask What the Hell is Wall Street Up To?????
Pretty sad performance by Committee Chairman Chris Dodd of Connecticut. (D) Moved everything along fast (which is ok). Connecticut too close to Wall Street, perhaps. Greenwich, certainly, the haven for derivatives.
Still, the Big Guys did save the system that week and weekend.
The Public is too innocent to see the fraudulent derivatives themselves:
“Let’s see one of these [derivatives].”
“Oh no, only for the Committee’s eyes.”
"Liquidity" vs "reserves." Said without the blinking of an eye. Once said everybody acts like they knew the distinction all along. So why allow Schwartz to go un-cross-examined (two days before the crisis) by saying "our reserves are fine?" and limiting it to that?
This brings up a point known to all trial lawyers: if the [CNBC/trial attorney] is not an expert, misleading answers go undetected.
Or probably Schwartz himself did not know the difference when he said it the day before all Hell broke loose.
This hearing killed all possibility of the Class Actions based on Shwartz's CNBC statement before the weekend. The main witness, Schwartz, comes off clean. Just appearing takes the fizzle out of it.
New York Fed has always had my utmost respect. Not sure now. Too wooden, too "party line" if that applies?
Jamie Dimon – it’s really something to see The Big Guy. A little "gangsta:" Not polished. Brooklyn? Would be interesting to Google him.
The Bear Stearns CEO who played bridge during all this – now it is clear why he sold all his shares the prior week. No bringing him on before the committee for unnecessary snickering, etc.
Wasn’t it Bear Stearns who told edgy employees: “Don’t worry we are the casino, not the sucker?”
Pretty weak analysis by he staff of CNBC also, focusing on the small picture and Steve Leasman's pet points.
Steve Leasman – does he really say anything?
Spot across the screen later:
97.32 = 1 month libor 2.68%
2 yr 1.91%
5 yr 2.75%
10 yr 3.59%
30 yr 4.39%
us dollar 72.24
gold 908.9
oil 104.15
Later in day CNBC generally:
Rob Arnoff
Cap-weighted indexes vs. fundamental index. (not based on stock price) -- pretty good distinction. Fundamental is what people should want.
