Senator Spector Defects to the Democrats

How can anyone blame him for switching to the opposition party when his own party is running a conservative against him in 2010. He is 79 years old and still wants to be re-elected even if he wont be as powerful as he was when he chaired the Senate Judiciary committee. He has always struck me as a fair Chairman and I think that he will be re-elected next year running as a democrat. Obama has been wooing Spector to switch for months now and (according to the Wall Street Journal) he was finally persuaded last week by Hilliary Clinton who, according to President Obama at the White House Correspondence roast said to him; "Arlin, if you cant beat them, join them."

Obama has made his pick for a Supreme Court Justice to replace David Souter and his choice, a Hispanic female judge with a lot of experience and a background that matches his own. She grew up in the South Bronx, lived in the projects and went to top rated Ivy League schools.

The FDIC and Washington Mutual

I picked up the following article on Yahoo site used by Washington Mutual stockholders, most of whom lost almost ll their investment when it was taken over by the OTC and sold to JP Morgan Chase. I think that this is a very interesting story and is credible.


"FDIC and OTS Miscalculations Costs Taxpayers Tens Of Billions"

"April 20, 2009 -- The FDIC and OTS have caused American taxpayers monumental losses due to mismanagement, but they have not had their fair share of “credit” for their misdeeds and negligence. The capricious seizure of Washington Mutual Bank (WMB) and resulting fire sale played a significant role in the stock market crash of 2008. This decision has affected all Americans either directly or indirectly through the loss of jobs and general downturn in the economy.

The OTS preemptively seized WMB on September 25th, 2008 from Washington Mutual Inc (Stock Symbol: WAMUQ). The FDIC proceeded to transfer the assets to JP Morgan Chase (Stock Symbol: JPM) almost immediately. A memorandum, released by the Wall Street Journal, supports the conclusion that WMB was indeed solvent when they were seized. The monetary damages alone total over $60 billion in immediate losses in conservative bonds and debts. Far more damaging was the blow to the United States' image and credit market. Investors across all sectors panicked. The market could not decide between safe and risky investments. The stock market severely crashed immediately after this seizure (see the graph at www.WamuStory.com), causing severe generalized economic losses throughout the world.

Ironically, TARP was on the horizon and just a week away. The boost of confidence intended by TARP was not able to overcome the damage done by the FDIC's fire sale of WMB. In one hour, a bank that was worth hundreds of billions of dollars was “gifted” to JPMorgan for $1.9 Billion. As a practical matter, our regulatory bodies should act within reason and good faith. They did not.

In a memorandum to its Board of Directors the FDIC states that it did not find that WMB was “in default” or “in danger of default”. Washington Mutual Bank was well capitalized with a tier 1 capital ratio of 7.8 percent. It had access to $54 Billion cash. The OTS made its decision to seize WMB solely on its jurisdiction to act preemptively and panicked fear.

The FDIC would not have had a chance to bungle the sale of WMB, had it not been for the missteps of the OTS. They seized a bank that was not in failure, and indeed was liquid and well capitalized. The sale by the FDIC finished it off, due to their negligence in arranging the transaction.

This is one of the most expensive mistakes the government made in the “economic meltdown” of 2008. Ms. Sheila Bair said this seizure would not cost taxpayers anything. She could not have been more wrong. Read more about these issues at www.WamuTruth.com."

Contacts for this Release:

JPresnall@WamuTruth.com
Phone Number: 360-790-1149
Mike@WamuTruth.com
Phone Number: 512-809-8556

The "Ugly Duck turns into a Swan" Fairytale

As kids we all know that fairy tale, how the little ugly duck became that gorgeous white Swan. It is an age old tale that speaks to our fondest dreams. And, when we can actually view it happening, as we now can on You Tube's posting of the singer Susan Boyle's "Britain's Got Talent" amateur competition, how sweet and moving it is. It moved me even more than the performance of Paul Potts on the same show in June of 2007.

Yes, it was that long ago, remember how that chubby cell phone salesman electrified the audience with his first notes of the aria Nessun Dorma ? I think I watched it a dozen times.

I thought at that time "wow how sweet a moment it is for him". But I must admit, that moment was topped when a dowdy 47 year old lady, who looks like a perfect rendition of a British grandmother nanny, opened her mouth and belted out "I Dreamed a Dream". The audience reacted instantly and you could see genuine surprise in the eyes of Simon and the other judges. Instant, gorgeous Swan conveyed by a bell like voice delivered like a professional. I don't know how these contestants are chosen and how much foreknowledge there is by the judges; surely Susan Boyle and Paul Potts sang to someone to get onto to that platform. But I do have to say that it made for two great moments almost exactly two years apart.

This Passover

This Passover is bittersweet. So many people I know are sick and not getting better. Friends we made as newbies to the Boston area who were also getting started; whose husbands were in post graduate programs or in a medical resident program. We lived in an apartment complex near Coolidge Corner in Brookline. It was a nest of young families with lots of preschool kids and stay at home Moms. Many were families that left South Africa because they could not reconcile their dislike of apartheid with core Jewish beliefs and because they were highly skilled in medicine were able to leave with their families for a new life in America. Now, 40 years later most of those same families have retired to warmer places, a new "first generation" of refugees. More highly educated than my own parents were but a "first" generation still not quite rooted in this country, still speaking with that gentile English accent that was amazingly unaffected by over 40 years living in the Boston area. Their children are all parents now and totally Americanized and I think about them and my parents and all the past generations of transplants that have become this America we love so much.

Pirates in the 21st Century

I was just thinking about the pirates off the coast of Somalia and how a CNN News anchor remarked about them "making easy money" on last nights broadcast. Really? There they are, four pirates holding an American Captain hostage, sitting in a small lifeboat surrounded by the United States Navy 300 miles off the coast of Somalia. They must be wondering how in the world they ever got themselves into this mess to begin with after boarding the freighter and finding its crew self-locked in their cabin with one of their own pirates captured by that same crew. It would look like a Harold Loyd comedy if it weren't so scary.

As the events unfold in the ocean, other pirates were being interviewed with questions like "what is the average time it takes to get your money from the owner of the ship?" The answer; "four months", which is not bad work considering that the average payoffs are somewhere between $900,000 and $3 Million. So now the country is more focused on pirates of the high seas than on the pirates on "Wall Street.

Spring has Sprung

There is nothing like the first days of Spring in New England. Even before the grass turns to that beautiful shade of blue green and the crocus start to show. For some people its the flowering of the Forsythia or the first Tulips color blaze. For me, its when the girls shed their jackets and start to wear shorts or mini skirts that put those so youthful bodies on display. What a cheerful sight it is, living here in the Boston area with its youthful population that renews itself every year as the colleges fill up and then graduate. And, as I age and my own body seems to be out of control, legs not as quick, tiring by the middle of the afternoon; I so enjoy gazing out my window and watching those bursts of youthful energy and beauty walking to and from school. I am reminded that life's cycle is unending and how privileged I am to be alive in yet another Spring.