If you have not done so, read MATT TAIBBI’S excellent piece in Rolling Stone on the political implications of the bailout:

The Big Takeover

Taibbi has done a very thorough job of research on this piece.  For example, he illustrates some of the bizzare legal protections given the Fed over the years, protections that make the central bank immune from congressional oversight:

“None other than disgraced senator Ted Stevens was the poor sap who made the unpleasant discovery that if Congress didn’t like the Fed handing trillions of dollars to banks without any oversight, Congress could apparently go fuck itself — or so said the law. When Stevens asked the GAO about what authority Congress has to monitor the Fed, he got back a letter citing an obscure statute that nobody had ever heard of before: the Accounting and Auditing Act of 1950. The relevant section, 31 USC 714(b), dictated that congressional audits of the Federal Reserve may not include “deliberations, decisions and actions on monetary policy matters.” The exemption, as Foss notes, “basically includes everything.” According to the law, in other words, the Fed simply cannot be audited by Congress. Or by anyone else, for that matter.”

Article provides excellent overview of AIG scandal and political angles.

BTW, I am hearing that Rahm Emanuel is bought and sold by Goldman Sachs.  More confirmation that we need to change the caption on the money to read “In Goldman Sachs We Trust,” a la Galbraith, of course.

– Chris


The Big Takeover
Rolling Stone, Mar 19, 2009 12:49 PM


Category: BP Cafe, Credit, Investing, Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

19 Responses to “Rolling Stone: “The Big Takeover” — AIG Bailout as Political Revolution by Wall Street”

  1. Chris,

    minor spelling error:

    and, to improve your signal-to-noise ratio on the topic, Rahm-bo, 44s 1st draft-choice for his ‘admin.’, is, simply, a highly questionable figure that should be questioned, at length..

  2. PrincetonNJ says:

    “Ron Immanuel”?

  3. ottovbvs says:

    Mark E Hoffer Says:
    March 26th, 2009 at 6:48 am
    minor spelling error:

    “Ron Immanuel” is a minor spelling error?

  4. JustinTheSkeptic says:

    I’m starting a community garden, doesn’t anyone want to join? We’ll plant the good seeds in back where the cops can’t see them. lol

  5. Chris Whalen says:

    Yikes!! Fixed. About a quarter of my family spells in Cyrillic, but I am still having big problems with this new crew. Gonna make a cheat sheet with names and photos.

  6. grumpyoldvet says:

    So, are you saying that perhaps “Mad Maxine Waters” was correct when she asking about GS being at all the meetings between the Fed and Treasury. Thought while I was watching on C-Span that she was annoying but then you’re saying……………………HMMMMMMMMMMM maybe she had a point

  7. Mike in Nola says:

    Emmanuel bought and sold by Goldman? I think we should be surprised if he hadn’t been.

    As I’v said before, it’s like 18th Century Britain all over again. The most powerful nation in the world ruled by a venal oligarchy with no sense of morality or even shame.

  8. Chris,

    no worries, you get the ‘Big Picture’, that does matter.

    If we lived in the Country we grew up hearing Tales of, the FBI’s top 10 would be all the ‘cheat sheet’ one would need to get the spellings correct..

    though, maybe next Quarter

  9. super_trooper says:

    For those of you preferring an interview of Matt Taibbi, listen to “AIG and the Big Takeover: Matt Taibbi on “How Wall Street Insiders Are Using the Bailout to Stage a Revolution”


  10. Mike in Nola says:

    Most hopeful quote today based on past accuracy:

    “The banks are not going to be nationalized for any reason,” Mr. Bove wrote. “Most important, they do not need to be. They are healthy with positive cash flows.”

  11. Stuart says:

    like so many others, bought, sold and in between used like a cheap whore…

  12. hoffinator –

    you really are a righteous asswhipeh.

    emphasis on the eh. i spelled it especially for you.

  13. larster says:

    Ineresting mention in the article of Goldmans chairman sitting in on the AIG meeting w/Bernancke, Geithner, and Paulson. Protecting his interests I would say.

  14. Mannwich says:

    As Thomas Frank asserted in yesterday’s WSJ, the populists are right this time. Those elites who derisively mock & dismiss them/us this time do so at their peril.

  15. Moss says:

    Re: I am hearing that Rahm Emanuel is bought and sold by Goldman Sachs.

    and that makes the situation worse than having Paulson as Treasury Secretary?

  16. usphoenix says:

    There was an interesting article this morning about Rahm being appointed to the FM board by Clinton. And reaping big bucks for nil. Patronage at its best. BC/BO tell the people what they want to hear but serve the oligarchy well. Lest your campaign funding and perks suffer.

  17. ben22 says:

    Yeah, this article is good but I’m sorry, Matt Taibbi is a total tool.

    Most of the articles he puts in RS are full of name calling and ignorant comments.

    He got paid to write a fake interview with George Bush.

    Chris, I’d rather just read something by you.

    and last, Rahm is one corrupt mother, but then, who in Washington isn’t?

  18. Chris Whalen says:

    Well, I don’t know Taibbi. I was impressed with some of the research, but not that much with whole article. Interesting reactions. I gave up on Rolling Stone when Bill Greider left.

    Re: Rahm and Barack, we forget (or never acknowledged) that we have elected a corrupt IL pol who seems to be a professional candidate, but largely incompetent when it comes to anything else.