Archive for September, 2008

Why McCain Was Right to Suspend His Campaign

September 25, 2008

One candidate thinks he can add value to solving the greatest financial crisis since the Great Depression. The other candidate thinks he can’t add value and that its a better idea to campaign.

Here is the question I would ask the Senator: “How is it Senator Obama, that with Wall Street burning, you thought it was a better use of your time to campaign ?. You make it clear that one of your greatest skillsets is promoting consensus. Has there ever been a time when promoting consensus was more important to the financial health of the American people than today ?”

Even if all either Senator did  did was go to the meetings and shut up and listen, that would put both  in a position to offer help if needed.

Remember this. 90pct of being successful is showing up. The other 10pct is being prepared to  know what to do when the opportunity presents itself.

Understanding the Bailout… I think

September 23, 2008

Consumer mortgages sat on a wall. Consumer  mortgages had a great fall. All the kings accountants and all the kings friends, couldn’t put Consumer mortgages back together again… or can they ?

After watching all the testimony on CNBC and Fox Business (and a little Bloomberg too), there was one comment from Hank Paulson that really clarified things for me. Or at least I think it did.

He said the process of the bailout was going to take place, asset class by asset class. Combine this with other testimony that talked about the important of getting participation from all banks, rather than dealing on a bank by bank basis, here is what I think I can conclude:

Every which kind of debt, from mortgages, to parts of mortgages, to corporate bonds to IOUs from your Uncle Fester have been packaged together in every possible permutation to create sell able assets that could then be used to package CDOs , CDSs to who knows what. Every investment bank then took these complex instruments and made a boat load of money selling them to anyone who would take them, including each other. Every one did it because everyone did it and they were making a ton of money from it.

Problem was, these products were  complex, and, and its a VERY BIG AND, there was no real accounting of what products were sold, how many were sold, and what was in the products, individually and in aggregate.  Bialystock & Bloom could have done a better job accounting for this than what exists today. Which is basically no accounting for all of this at all. None.

Because there is no transparency or centralized documentation of what the financial institutions have sold, what they own, or what the pieces involved are, the Fed really has no idea whatsoever what it is buying.

So what to do ? Exactly what Paulson is doing. You tell everyone to throw their junk into a big hole and then you send in the accountants and “experts” to untangle everything and put them in their “asset class bucket”

Figuratively, imagine a huge trash pile of contracts reaching to the sky. Some government accountant is going to start with the one at the top and start reading it to figure out what the hell is in each contract. Then they are going to extract the pieces and put them in asset class buckets. It will go something like this…:

This contract has 10k pieces of mortgages, so we are going to document which mortgages and put them in the mortgage bucket. This one is a CDS against XYZ corporation , put it in the corporate debt asset bucket for XYZ corporation.  There is a bucket for each asset or debt class, mortgages, corporate and whatever else is possible.

Once they have deconstructed each contract into the lowest common denominator asset class bucket, they will start to reconstruct, if not each individual mortgage, packages of mortgages and how they are encumbered. They will construct each individual debt obligation and all the instruments that have been sold against that debt. They will do this over and over again, documenting all of it until they can come up with an accounting of what assets, debts and derivative instruments they actually have bought

Once they have done this, they can start the process of selling what they hope will be far simpler and easier to understand and document financial instruments. Which, by nature of the fact that they are simpler, will be easier to sell at a higher price.

One of the challenges they have is in having all the contracts required to identify all the pieces of the base asset class. To simplify, if a mortgage was split up into 100 pieces and they only were able to identify 90 of them, it will be harder to sell the underlying mortgage because its missing pieces. this is exactly why Paulson said that they are not going to punish each individual corporation and CEO.  They dont want to disincent any holder from contributing every bit of these obligations. They need to find everything in order to put the pieces back together. They need full participation.

Once they identify all the pieces, then they can start selling all the pieces, asset class by asset class.

Once they get to this point, then I stand by my last post. They need 100pct transparency. They need to identify all the final products they were able to reassemble and all the pieces that the final products were assembled from, along with the companies they came from.  Then they need to publicly list all these and create some form of auction market exchange from their sale.

if they can sell it, it means they have it documented. if its documented for the buyer, it can be documented for shareholders of USA Inc, you and I, to see and for private equity to possibly bid more and buy

And finally, they need to work with Congress to pass a law that revokes the Golden Parachutes of any officer of a company that contributed assets to the Bailout.

This is how I understand this whole thing. Tell me what I missed or where I am wrong

Thanks for the advice on Josh

September 19, 2008

I wanted to thank all of you who took the time to email me with your comments on how best to deal with Josh. They were so good, I thought I would share a few of them with everyone. Including the email addresses of those who were bold enough to use real email addresses.

Author : Barack Obama (IP: 64.12.117.196 , cache-mtc-ah04.proxy.aol.com)
E-mail : Nigga4life@coon.com
URL    : http://Watermellon
Whois  : http://ws.arin.net/cgi-bin/whois.pl?queryinput=64.12.117.196
Comment:
JOSH HOWARD IS NOTHING BUT A DUMB COON NIGGER. SOMEONE NEEDS TO TEACH HIS MONKEY ASS SOME DAM RESPECT FOR THE NATIONAL ANTHEM

“Jeff Kellen” <jkellen@idealssi.com> Add Address to Contacts
To: <mark.cuban@dallasmavs.com>
Date: 09/18/2008 04:22 PM
Subject: Ask Mark Cuban
Hi Mark,

Did you know Josh Howard was an America hater when you signed him or was
it a surprise?

“I don’t spend my money on this NBA shit, I am white.”

Thanks,

– Jeff

From: “Tyree, Pam” <ptyree@nwcouncil.org> Add Address to Contacts
To: <mark.cuban@dallasmavs.com>
Date: 09/18/2008 11:18 AM
Subject: Howard
This ahole is just as anti American as you are Cuban! What a disgusting bunch.
rom: “Billy Leto” <billy.leto@gmail.com> Add Address to Contacts
To: mark.cuban@dallasmavs.com
Date: 09/18/2008 09:20 AM
Subject: are you kidding me?
MC,
Tell Howard that him and Hussein Obama can go to another country and live if they don’t want to support our symbol of freedom.


Billy

From: Donald Joy <donaldgjoy@yahoo.com> Add Address to Contacts
To: mark.cuban@dallasmavs.com
Date: 09/18/2008 09:20 AM
Subject: Howard’s(and the rest of them) anti-American, thuggish remarks/attitude
These black criminals that you people coddle and cultivate are the reason why I no longer watch/follow professional sports.  Sickening.
From: “Riley Johnson” <Riley.Johnson@directs.com> Add Address to Contacts
To: <mark.cuban@dallasmavs.com>
Date: 09/18/2008 09:14 AM
Subject: Ask Mark Cuban
Hey Mark, I’ve always loved the way you ran your team and respected a large amount of your opinions.  Regardless, I have to stop supporting the Mavs.  Why?  Because I don’t support POS, America-bashing people like Josh Howard.  Tell that spoiled pansy that his lifestyle is only made possible by the marvelous experiment that is America, and to take his bs to Russia if he’s going to talk down our national anthem.  Until he’s off the team, you guys are off the TV.
From: christopher.wolff@comcast.net Add Address to Contacts
To: mark.cuban@dallasmavs.com,<mark.cuban@dallasmavs.com>
Date: 09/17/2008 11:28 PM
Subject: josh howard
This the first time I have e mailed any one of this stature you have to be kidding me I have always admired you and I am a warriors fan Don Nelson or not. Fire that ass hole this is America send him to Iraq No wonder kids act the way they do this is there role model they have no clue what we have been through in our history and how we became this country we all have faults but this is not the 60`s if it was he would of been hanged. I suppose that he thinks all the fireman, police and innocent citizens in 911 should of died also only in America could this happen and thats the point he does not get.
From: Larry Smith <sdnco99@hotmail.com> Add Address to Contacts
To: <mark.cuban@dallasmavs.com>
Date: 09/17/2008 08:51 PM
Subject: Your boy
You need to get rid of your nigger howard before you go down with him!
From: “Manuel Rodriguez” <manuel_rodriguez_7126@yahoo.com> Add Address to Contacts
Cc: <Mark.Cuban@dallasmavs.com>
Date: 09/17/2008 10:09 PM
Subject: Maverick Josh Howard

You better get that piece of work out of your team for talking and disrespecting the national anthem or you are going to pay the price for it…..  What kind of org. allows a looser and an idiot play for them?  You are so low you make me vomit!!!!  If you allow a hate of America play for your team, you also Hate AMERICA.  GET OUT OF HERE!!!!

Have a Blessed Day:

Manuel A. Rodriguez

Name: Roger
Email: rconnally@hotmail.com
Website:

Dude: Worry less about why the financial world and more about that unpatriotic coon you have on your team.

Time: Wednesday September 17, 2008 at 10:07 pm
IP Address: 68.238.150.29

From: vxsmith@aol.com Add Address to Contacts
To: Mark.cuban@dallasmavs.com
Date: 09/18/2008 08:58 PM
Subject: Josh Howard
You need to fire that SOB immediately. However, given your political leaning and anti-US film producer credits, I doubt you have the nuts for it. Wouldn’t be surprised if you encouraged him. Do the right thing…dump that dumb asshole.
From: George Bannon <georgebannon@sbcglobal.net> Add Address to Contacts
To: markcuban@dallasmavs.com
Date: 09/18/2008 08:25 PM
Subject: MARK & TEAM NEED TO MOVE TEAM AND YOU TO MOSCOW RUSSIA OR CUBA OR CHINA ETC.ETC.
1ST STRIKE – YOU HAD THE ANTI-AMERICAN CANADIAN PIG VOMIT ON YOUR TEAM
2ND STRIKE – YOU FUNDED ANTI-AMERICAN/TROOPS MOVIE
3RD STRIKE – “I DONT DO THIS SHIT’ DURING MY NATIONAL ANTHEM  –  THIS NATION MADE YOU PIG VOMITS RICH BEYOND MY DREAMS AND THIS IS HOW YOU REPAY US. THREE STRIKES YOUR OUT! TELL PIG VOMIT HE IS FREE TO MOVE OUT OF MY COUNTRY ANYTIME HE WANTS. TRY CHINA,THEY HAVE FREE SPEACH  –  NOT!

Sir,

How dare you defend this Josh Howard piece of shit. After his disrespect, at the very least, you should have transferred his ass to the Euro league. He doesnt like America? Well screw him. Ive been around the world, defending America. Hell, I havent even had the opportunity to live in my own country since 1995. I can assure you many people, with IQs higher than a shoe lace, would gladly trade places with this ingrate punk. As long as you protect him and make excuses for him you carry equal guilt. I would immediately have any person in my employ fired and have his security clearance yanked for expressing such an opinion. I could retire on 1/20th of this assholes salary, and all he does is play ball and trash the country which provides him the opportunity to make such a living. Send him to REALITY, where he should be; bagging groceries and/or in prison.

Tommy Lee Frederick
Systems Technician – Warrior Training Center, U.S. Forces Korea
Unit 15596 Camp Casey, Korea APO AP 96224-5596
DSN 315.
730.1645

COM +82.31.869.1645

EMAIL: frederickt@korea.army.mil

From: “stephen rogers” <stevadore@cableone.net> Add Address to Contacts
To: <mark.cuban@dallasmavs.com>
Date: 09/17/2008 09:34 PM
Subject: Ask Mark Cuban
Mr. Cuban,
Just saw your nigger Josh Howard  disresepct the national anthem because he is black. According to the news you say he is a really great guy. Of course he is because he makes you lots of money you greedy bastard.
You would rather sell out your own country that my dead father fought for in WW II than than lose a buck by firing this black bastard.
You are nothing more than a nigger slave owner milking him for all his black ass can get you.
YOU, SIR IS WHAT IS WRONG WITH THIS COUNTRY. YOU AND THAT NIGGER YOU CALL NICE.
There’s lots of black dick on that team, get busy. White power is coming back because of race traitors like you.
Know what you get when you cross a nigger and a white nigger lover ? a  WHIGGER. THAT IS YOU !!!!
Mark WHIGGER Cuban. A White storm is brewing Mr. Cuban, you and those niggers like you better evacuate.
From: Jeffrey Miller <imjeff49@yahoo.com> Add Address to Contacts
To: mark.cuban@dallasmavs.com
Date: 09/17/2008 08:14 PM
Subject: Ask Mark Cuban
You need to get rid of NIGGARS like Josh Howard.
Email: joejujo@yahoo.com
Website:

why on earth would you keep the piece of embarrassing ghetto trash named Josh Howard?
I will no longer cheer for the mavs.
Go Spurs!

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September 8, 2008

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