http://www.cbsnews.com/video/watch/?id=4866618n
And before reading Rich, take note of this hugely important blog of Simon Johnson, economist at MIT, who is hitting all the right notes:
http://baselinescenario.com/2009/03/21/ceo-semiotics-and-the-economics-of-vilification/#more-2951
Now Rich's Op Ed piece today:
http://www.nytimes.com/2009/03/22/opinion/22rich.html?_r=1
And the letter to the editor which keys off Rich's article:
To the Editor:
President Obama may not realize it yet, but his Katrina moment has arrived.
This is a defining moment for his presidency, and how he responds will determine the trajectory of his term. He needs to deal with the excesses within the financial industry with the same toughness and conviction that President Ronald Reagan brought to bear during the air traffic controllers’ strike. To date, he is sorely wanting.
We are not interested in the level of outrage the administration is feeling, but in the effectiveness of its response. So far, it has come across as hapless and completely ineffectual. This Obama voter would like to be spared the speeches and the posturing on the Sunday morning shows — action is what is needed.
Paulette Altmaier, Cupertino, Calif., March 17, 2009
President Obama may not realize it yet, but his Katrina moment has arrived.
This is a defining moment for his presidency, and how he responds will determine the trajectory of his term. He needs to deal with the excesses within the financial industry with the same toughness and conviction that President Ronald Reagan brought to bear during the air traffic controllers’ strike. To date, he is sorely wanting.
We are not interested in the level of outrage the administration is feeling, but in the effectiveness of its response. So far, it has come across as hapless and completely ineffectual. This Obama voter would like to be spared the speeches and the posturing on the Sunday morning shows — action is what is needed.
Paulette Altmaier, Cupertino, Calif., March 17, 2009
And Rich's article six weeks ago, which I did not post, on Tom Daschle's situation which so enraged the American people and forever tarnished Daschle's reputation:
and the excellent comments thereon from other readers/viewers:
Geithner Asking Libby to Re-negotiate Bonus Contracts: Geithner "Mr Libby, uh, please.." Libby "No" Geithner "Please" Libby "No, go away. And get me some more money." Geithner "Ok, sorry for bothering you. How much more money can we give you?"
Posted by themash at 10:32 PM : Mar 21, 2009
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Real non-sense, break their employment contract, fire them, allow them to reapply for the job with a modified contract. I can't believe a move like that would upset our contractual system or throw it off course as Summer's suggests,"contracts aren't abrogated"? It happens all the time.This can be made law easily. Can you think of how many of us would call or write their Congressperson if was submitted for consideration as law.Yes we can say where US Government $$ goes now happens every minute of every day, it's in the laws all the laws. Summer's seems pretty clueless Bob should have taken him to task.There are plenty of well qualified people for this type of work who did not get us into the mess. Boy could we have used Russert here !
Posted by ckiepper at 11:33 PM : Mar 15, 2009
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Are kidding me with this this guy Summers. I would let Larry Summers run the local hardware store in my town. And he has PHD? That must stand for Pizza Hut Diploma. The reason America is in this situation is because we put guys like this in charge of things. I am embarrassed for him to hear him spew this nonsence. What's willy nilly is that he is allowed to go on CBS news and spread this nonsense. Larry, why don't you stop brown nosing and tell the truth, fronting for these crooks. And Bob, get better guests.
Posted by someguyinamerica at 10:48 PM : Mar 15, 2009
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I AM SORRY. I BELEIVE SOMMERS IS WRONG. CONTRACTS SHOULD BE ABROGATED WHEN THEY become a risk to the sytem. Usually intent needs to be proven to show fraud. In this case, it shoud be a new IDEA. Marshall Law for systemic risk contracts...Not bonuses, bets (CDS) without collateral. Too many Trillions. SYSTEMIC REGULATOR. Sommers is not the right guy for it. All the credentials in the world are not enough. We need leadership with GUTS. Marshall Law for the 60 Trillion Global CDS market. COME ON MR President, rise to the occasion. End the deadlock. Time for RULES!!!
Posted by at 9:51 PM : Mar 15, 2009
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Gee, I wonder why AIG got bailout money in the first place.... Could it be that they hold the insurance on the Congressional pension plan????....While our 401K's and pensions are taking a beating our greedy politicians again thought of themselves first...When hell are we gonna get some intestinal fortitude and have another "Tea Party"....
Posted by WOLFMAN0802 at 6:39 PM : Mar 15, 2009
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If I was congress I would put a hold on these bonuses what kind of message does this send to America and worldwide when AIG is making a joke out of Obama and congress everybody as already seen the first 140 billion go in 3 or 4 months This is not AIG money this is americas money in everybodys mine this is not there profit so they have no right to give bonuses out of our money especially ridicolous bonuses banks pretty much make there own rules without regulation with there money so if this is americas money why is congress not making regulations congress is should be the law not banks who ask for another 30 billion after a short period of time it would be long before the world loses faith in our government and starts to pull there money out of the america when there people start demanding them to when AIG makes a joke out of every american
Posted by noskoman at 6:37 PM : Mar 15, 2009
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This crisis will start to get resolved when we understand who caused it and take steps to get them out of the picture. I am referring to Rep. Barney Frank of Massachusetts and Senator Chris Dodd of Connecticut. Through their positions in Congress, they compelled banks to make risky loans and to this day haven't suspended the rules that banks operate under which got us into this mess. They should recuse themselves from any investigation about the financial crisis and not take part in any new legislation until their culpability has been resolved. Then we can move the country forward.
Posted by olevis55 at 6:33 PM : Mar 15, 2009
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I just transferred from a Lifecycle fund which wasn't aggressive enough for me due to losing $40,000 and in my 40s in a 403b plan and now I'm wondering after hearing Mr. Summers, a male chauvinist pig, formerly from Harvard who left due to his views on women and science with degrees which I hold *** laude a B.S. I wonder if I made the right decision. No, Mr. Summers, we in Boston haven't forgotten your views. It's great for Mr. Bernanke to cheerlead for us since I, for one, called my rep who voted against this crazy bank bailout Mr. Stephen Lynch, but it was cancelled out by Mr. Barney Frank. As Mr. Bernake is cheerleading we hear that AIG is giving big bonuses to the tune of hundred's of millions. I work in the state of RI with the second highest unemployment rate, and I find this terribly repulsive. Everyone just about tarred and feathered Mr. Madoff but as far as I'm concerned that's exactly what our bank's are doing. I have chosen not to bank with Bank of America due to the Merril Lynch bonuses. If the banks continue on this destructive path pretty soon none of us will trust them with their money. So far the only CEO of merit I have heard as of late is the President of Citizens of RI who is going to concentrate on customer service and deposits which lately seems to be lacking in all banks.
Posted by Gadgetgirl84 at 6:18 PM : Mar 15, 2009
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It's the Chinese. The Chinese own a lot of AIG's worthless paper and want the U.S. Government to pay them. If we don't pay them, the will take their money out of our country (over a Trillion dollars in treasury's). We're a debtor nation and will have to kiss some a#% from time to time. This is one of those times.
Posted by Blitzer2 at 5:30 PM : Mar 15, 2009
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I am beside myself on this one. In addition the shear stupidity of this, someone forgot to prep Director Summers about how to speak when doing a media interview. He sounded like a bumbling idiot. Apparently they don't have a Public Relations person prepping him and giving him Media Training. I couldn't believe Dir. Summer when he said "It's outrageous but there is nothing we can do about it." You have GOT to be kidding me... You're the freakin Federal Government, for goodness sakes! Do something - anything - - besides throwing up your hands...
Posted by Scubajoy at 4:46 PM : Mar 15, 2009
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