The day after the fall

And so as you can see from just the front page of the New York Times- yesterday was devastating. The front page of the New York Daily News features one large red arrow facing down with the number 777 largely displayed followed by two bullet points that read:

*Fools on the Hill vote down bailout
*Dow takes biggest point plunge ever

In the Times business section Andrew Ross Sorkin writes in the "Dealbook" that he attended a class of directors of the nation's Fortune 500 in 2002 where Stanford University professor Joseph A. Grundfest (who is a former commissioner of the Securities and Exchange Commission) said:

"If there are ways people in this room go to jail, it's probably through crimes of upholstery - the cover-up will kill you."

Read Sorkin's full article here.


Also, a sad day for the media as wall. The New York Sun will publish it's last edition today. Posted on their website are remarks from editor Seth Lipsky. At one point he says:

"We have spoken with every individual who seemed to be a prospective partner, and everywhere we were received with courtesy and respect. I tend to be an optimist and held out hope for a favorable outcome as late as mid-afternoon today. But among other problems that we faced was the fact that this month, not to mention this week, has been one of the worst in a century in which to be trying to raise capital, and in the end we were out not only of money but time."

See all of his remarks here.

*New York Times picture from their website
*New York Sun picture from the New York Daily News

"I'll have to get back to you on that one"

And Tina Fey is at it again. I've actually heard people say they want McCain to win just so that Tina can keep doing her impression for four more years... Not sure if that is the best way to go about deciding on who to vote for, but she sure is entertaining.

Taking real lines from Palin's interview with Katie Couric- see this SNL skit.

*Photo taken from eFluxMedia

Wall Street and Washington Woes

Today was bad. Today was really bad.

People flocked to Wall Street and to Times Square to see what the heck was going on.

The result of today:

"In a moment of historic drama in the Capitol and on Wall Street, the House of Representatives voted on Monday to reject a $700 billion rescue of the financial industry."*

And what did this do to the stock market? Dow closed down 777.68 points lower than Monday. It's the biggest drop since 1987.



With members of Congress from both parties wanting the rescue passed- some blamed its failure on partisan ties, while others said constituents actually had an influence by calling their representative and still others say it's politics. Tonight on the Nightly News they discusses that a majority of NO votes were from congressman and women who are worried about the up and coming election. They're worried what passing a $700 billion dollar plan will say to their constituents. Understandable I suppose.

However, it's not understandable to leave the nation in crisis and take off for a holiday. Yes, it's a holiday, but people work through holidays all the time and to just leave in the middle of an unresolved crisis is not the best plan of action.

Today Charles Hurt wrote in the New York Post that the reason why American's are revolting the Wall Street rescue plan is because "they're all puking over the notion that it's the same bums in Washington who caused the mess by allowing it to fester who are now demanding their money to fix it. It's like the criminal who breaks into your house, hurts himself, then sues you for damages. The reason Americans endure their federal government is that it is so inept and useless that it has little bearing on their everyday lives. But in an economic meltdown like this, people dont have a choice but to feel the fallout of their government's incompetence..."

So people are calling and saying vote "no," but then congress did vote "no," now what?

Nobody is winning. Nobody seemed truly happy with the deal, but what other choices are available? What's happening to retirement funds? What's happening to the economy?

Maybe there's a reason newsy (or flat cap) hats of the 1930s are coming back into style, the clothes match the economy... and the economy keeps falling...





*Quote taken from a New York Times News Alert
*Stock Exchange Picture: Richard Drew/Associated Press
*Flat Cap Picture from Flickr

Debate

Americans watched the debate, featured to the right, just like I did. Note the pictures taken from my computer. Here's my notes throughout...

Financial Crisis:

McCain: I want to emphasize one point...this is the end of the beginning.... We've got a lot of work to do.

Obama: I do think there is contstructive work going on out there... the question we have to ask ourselves is how did we get into this situation in the first place?

Obama: we need more responsibilty... but not just when there's a crisis

So far it's like they are giving mini speeches.

As the moderator said: I'm just trying to get you two to talk to each other.

McCain: we've got to fix this system... We have a long way to go, and obviously stricter interpretation and consolidation of regulatory agencies that weren't doing there job. But i have a fundamental belief in the american worker... I still believe under the right leadership our best days are ahead of us.

FUNDAMENTAL differences

McCain: get spending under control. We spend $3 million to study bears....I'm going to veto every single spending bill that comes across my desk- WOW sounds familiar.

Obama: Let's be clear ear marks account for 18 billion dollars, but mccain has propposed a tax cut of 300 billion....We've got to grow the economy from the bottom up.

McCain: Sen. Obama suspended those pork barrels after he started running...I was called the sheriff by one of the members in the appropriations committee. I want to cut taxes and keep spending low.

Obama: I dont know where John is getting his figures.... health care... stop jobs going over... back to the original point. And when I'm president... eliminating earmarks alone is not going to get the middle class back on track.

McCain: A lot of people might be interestied in Sen obama's def of rich

mccain: this is an example of walking the walk and talking the talk. You've got to look at our records.... Who has been the person who has tried to keep spending under control.




RESCUE PLAN:

Obama: We have to have energy independence so that in 10 years time we have become independent from independent oil....We have to fix our health care system which is putting an enormous burden on families. We have to do that now because it will actually make our businesses and families better off. We have to make sure that we are competing ... that our children our keeping pace. And we have to make sure that college is affordable. And improve our infrastructure. There are some things that we've got to do structurally to compete globally.

McCain: No matter what we've got to cut spending. Sen. Obama has the highest spending record. I think that we have to return, particuarly in defence spending,... we now have defence speding that is completely out of control. Need fixed costs contracts. We need to understand that defense spending is vital. I saved the tax payers 6.8 billion dollars ... "We fixed it and we killed it and people went to federal prison...

McCain: spending freeze

Obama: problem is you're using a hatchet when you need a scalpel.

McCain: The fact is that we can create 700,00 new jobs by creating nuclear power plants.

Obama: the only point i want to make is this is that if im going to have to make those tought decisions we need to know what our values are...i want to make sure we aren't shortchanging our long term values.

McCain: i want to make sure we arent handing health care over to the federal government.

Obama; John, it's been your president who you said you agreed with 90 percent of the time who increased spending...

WAR




McCain: it's well known that I have not been elected Ms. Congeniality...


McCain: we will win in Iraq and we will come home with victory... we are winning in Iraq.

Obama:The first questions is whether we should have gone into this war to begin with. Six years ago I opposed this war..... We hadn't finished the job in Afghanistan... I wish i had been wrong for the sake of the country and they (bush and McCain) had been right.. We took our eye off the ball. Not to mention we are still spending 10 billion a month when they have 79 billion surplus....John you like to pretend like the war started in 2007.... you said we knew where the weapons of mass destruction were, you were wrong...

McCain: I'm afraid sen Obama doesn't understand the difference between a tactic and a strategy. Sen. Obama did the incredible thing of cutting off the funding for the troops

Obama: Sen. McCain opposed funding for troops that had a timetable...We had a difference on the time table not over funding the troops...The war on terror started in Afghanistan and it needs to end there... We need to bolster our efforts to capture and kill Bin Laden.

McCain: Petraeus and Bin laden have one thing in common, that Iraq was central....if we snatch defeat from the jaws of victory it will lead to a larger war.

Obama: Yes we need more troops.... we had the highest fatalities in US troops since 2002... I would send 2 to 3 extra brigades... Here's what we have to do comprehensively press the Afghan government and make sure they are dealing with their people...

McCain: First of all I don't want to repeat my mistake... ignoring Afghanistan - we have to wash our hands of history...I'm not prepared to cut of aid to Pakistan, so I'm not prepared to threaten it. Sen. Obama said he's prepared to launch strikes. You don't do that, you don't say that out loud.

Obama: Nobody talked about attacking Pakistan....If Pakistan is unwilling to act we should take them out. Presidents have to be prudent in what they say, coming from you someone who has threatened extension of North Korea...

McCain: Mother asked him to wear bracelet of her son who died ... mother said... I want you to do everything in vain that my son's death was not in vain. I know what it's like to be in defeat. I know how hard it is for an army and a military to recover from that. And it did.

Obama: I have a bracelet too... No US soldier ever dies in vain... because they are following the orders of our commander in chief

McCain: we cannot allow a 2nd holocaust...

McCain: wants to create a league

Obama: thinks Republican guard in Iraq are terrorists....


MORE TO COME FROM THE DEBATE... AND COMMENTARY TO COME....

Debates over Kissinger's point of view and Putin

Notable quote.... McCain:

"I looked into Putin's eyes and I saw a K a B and a G"

Headline News

Today's New York Times ran two Beatles-esqu pictures of the presidential nominees crossing the street. Both snapshots taken of the possible president to- bes feature each with the same stride and same arm position. The art looks good on the front page. (And you've got to love the umbrella behind Obama if you're on the east coast right now.)



Beneath that there is a story headlined "In Largest Bank Failure, U.S. Seizes, Then Sells."

The lede paints the whole ordeal in a rather dramatic and depressing light.

"Washington Mutual, the giant lender that came to symbolize the excesses of the mortgage boom, was seized by federal regulators on Thursday night, in what is by far the largest bank failure in American history."

Wow, harsh.

In the New York Post on page 3 there's a story about Marilyn Monroe. She's really making a comeback this month, with the cover of Vanity Fair and all.

Anyway, check out this opening paragraph:

"She died 46 years ago, but men are still fighting over Marilyn Monroe."

This seems disturbingly accurate.

And what about the debate tonight? Will MC show up or not?

The NY Daily News has a pretty entertaining article on the subject.

It begins with:

"Blame on both sides of the aisle after 'political theater' puts rescue, Prez debate at risk.
JOHN MCCAIN'S SELF-APPOINTED mission to rescue the Wall Street bailout plan teetered on the edge of fiasco last night.
Bipartisan negotiations at the White House that included Republican McCain and Democratic rival Barack Obama devolved into finger-pointing. With the economic deal in disarray, tonight's presidential debate has further been cast into doubt."

If he doesn't show up? The TV networks get screwed as do the American people one might argue...

*NYTimes cover page from their website

Letterman rips McCain

Not showing up to an interview with a comedian... not a good idea.

Watch THIS clip from Wednesday's Letterman- it's pretty entertaining.










Sarah Palin and the media aren't doing so well either. See the stutter that Brian Williams says will be played over and over again before tomorrow night.

See Palin discuss Russia and foreign policy by clicking here.

*Letterman photo: JP Filo/CBS via AP photo
*Palin photo: CBS photo

Yesterday's Daily News No No

Yesterday the New York Daily News ran this story on their front cover. It's a story about Palin coming to town, sort of. The Daily News created a fake Palin by having a 29 year-old actress/look-a-like pose as the VP nominee. Why? To get New Yorkers response.

But again, why?

With the turmoil on Wall Street and the election- involving real politicians- was there not enough news for the Daily News to report?

I'm a big fan of investigative reporting. Without reporters like Nellie Bly posing as insane, the New York mental institutions (or "mad houses") wouldn't have been reformed so quickly.

Without Neil Sheehan hiding out in a hotel room with thousands of pages stolen by Daniel Ellsworth the history and truth behind the Vietnam War (published in "The Pentagon Papers") would never be known.

But why investigate what New Yorkers think of a faux Palin when the News could just see what New Yorkers think of the real Palin?

And what did the fake Palin help the News discover? They found what we all already knew, New Yorkers tend to be liberal. Shocker.

*photo credit: Sabo/News

Prospects Grim

Today's headlines:

The New York Times says: With Bailout Plans Unclear, Markets Tumble.

The Wall Street Journal says: Doubts on Rescue Plan Spur Fall
In Dollar, Leap for Oil



So what does it all mean?

This part of the Wall Street Journal article I noted above basically sums it up:

"The fear is that the bailout plan might not fix banks' woes effectively -- while also adding to the country's already sizable deficits. That pessimistic outlook is bad for the dollar, which weakens when investors see cause for worry in the U.S. economy and thus shy away from U.S.-based investments. Late Monday in New York, the euro had strengthened to $1.4839 from $1.4474 Friday. The dollar also lost ground against the Japanese yen, the British pound, the Swiss franc and the Canadian dollar. The dollar's retreat marks a possible turn in a powerful dollar rally that had been in place since early August.

Monday's turmoil reflects the fact that, after the initial market euphoria over the government bailout proposal, the reality is setting in that it isn't a quick fix for broader problems in the economy -- in particular, the declining home prices that are at the heart of the financial crisis. Goldman Sachs economists are sticking to a forecast for economic growth to grind to a halt by year end, followed by a meager recovery next year.

Even if the government's plan works as advertised, it could take years to have an effect."

AIG

For the last few weeks I've been watching this commercial.

The kids talk on the school bus and they act all worried about their parents insurance until the one kid says "my parents have AIG." Then, as you all know, the other kids act like that kid has it made.

Guess not anymore.

Wall Street's having a tough week...

Wall Street Crisis & future

On Sunday I heard my computer "bling"(the noise it makes when I receive an email) with NYTimes News Alert after NYTimes News Alert. I didn't really realize the gravity of the situation until I heard a "bling" while I was in bed. NYTimes News Alert, why so late at night? This is what it said:

"Breaking News Alert
The New York Times
Monday, September 15, 2008 -- 12:56 AM ET
-----

Lehman Brothers Announces It Will File Chapter 11 Bankruptcy

Lehman Brothers, the storied Wall Street securities firm,
announced on its Web site early Monday that it will file for
Chapter 11 bankruptcy protection."

The next morning when I heard about Wall Street falling to pieces- I wasn't surprised. Any "bling" that late at night more than likely is not good.

New York Gov. Patterson said as many as 30,000 jobs on Wall Street could be lost as a result of this financial crisis.

If it's hard to hold down a job in business, where's the hope for the rest of us?

The November election is just around the corner and as much as I'd like to think things will get better, I've grown pessimistic. Honestly, our problems will probably get worse before they get better because no charasmatic speech will fix the economy, nor will a hockey mom with lipstick. Rumors say McCain can't even check his email by himself, and Biden told press that Clinton might have been a better pick than himself. (Seriously Biden, it's very respectful to talk about Clinton's credentials, but you're shooting yourself in the foot.)

And enough with Palin, as my friend said the other day: they might as well just say, "Palin for President."