Click on my signature for the links to document this:

Glenn, Dr. John P. Hussman, economist of the Hussman Fund, in an open letter to congress dated 9/22, said:

"...The key is to recognize that for nearly all of the institutions currently at risk of failure, there exists a cushion of bondholder capital sufficient to absorb all probable losses, without any need for the public to bear the cost.

For example, consider Morgan Stanley's balance sheet as of 8/31/08. Total assets were $988.8 billion, with shareholder equity (including junior subordinated debt) of $42.1 billion, for a gross leverage ratio of 23.5. However, the company also has approximately $200 billion in long-term debt to its bondholders, primarily consisting of senior debt with an average maturity of about 6 years. Why on earth would Congress put the U.S. public behind these bondholders? ...."

...I uncovered that the 2004 Fed study of wealt distribution says:

".....MOST STRIKING is the 62.3 percent share of business assets OWNED BY THE WEALTHIEST 1 percent of the wealth distribution in 2004 (table 11a); the NEXT-WEALTHIEST 4 percent OWNED ANOTHER 22.4 percent of the total. Other key items subject to capital gains also show strong disproportions: THE WEALTHIEST 5 PERCENT OF FAMILIES OWNED 61.9 percent of residential real estate other than principal residences, 71.7 percent of nonresidential real estate, and 65.9 PERCENT OF DIRECTLY- AND INDIRECTLY HELD STOCKS.

For bonds, 93.7 PERCENT OF THE TOTAL WERE HELD BY THIS GROUP...."

Typical is Austan Goolsbee;

Obama Surrounds Himself with incoherent establishment hacks... none of what they say or do matters, because there is little or no difference, "this time"!

Long time principle economic adviser, Goolsbee, spews some crap to make himself look innovative, but he doesn't know the history, and he is part of the same clicque that brought us Prescott, GHW, GW, Roland and Averill, Lovett and Trubee, (Lovett and Trubee are even spending eternity together in the same eastern LI cemetery....

Oct 12, 2007 ... Goolsbee has never been one to avoid controversy. In the spring of 1991, Goolsbee and his 14 fellow members of Skull and Bones tapped women ...

www.yaledailynews.com/articles/view/21789

...Nov 24, 2008 ... But Austan Goolsbee refused to put a number on the package, with reports ... and then Herbert Hoover starts trying to balance the budget and ...

www.boston.com/news/politics/politicalintelligence/2008/11/stimulus_packag.html

HYDE PARK, Nov. 5. 1936 -- In bidding a jovial good-bye to about 200 residents who gathered to see him depart tonight for Washington, President Roosevelt said that he was "going back to Washington to try to balance the budget, thereby carrying out the first of the campaign pledges."

http://select.nytimes.com/gst/abstract.html?res=F70F13FF355D1B7B93C4A9178AD95F428385F9

November 24, 1932,

ROOSEVELT OUTLINES A 4-FOLD PROGRAM; Balanced Budget, Farm Aid and a Stand Against Debt Change Agreed On.

http://select.nytimes.com/gst/abstract.html?res=F0061EF9355516738DDDAD0A94D9415B828FF1D3

....always the same for incoming democrats:

The Rich & the Super Rich: A Study in the Power of Money Today - Page 173

by Ferdinand Lundberg, Peter Wilsher - Capitalists and financiers - 1968 - 504 pages

Kennedy, even with no war providing an excuse for a coalition, awarded his chief Cabinet posts to Republicans from the camp of big wealth. ...

When Sargent Shriver, Kennedy's chief headhunter (and brother-in-law..) called Lovett about the Pentagon job, he again recommended McNamara as "the best of the lot." Lovett's voice counted heavily with Kennedy;

Gilpatric joined the new Kennedy administration in 1961 as part of the wave of Kennedy appointments. His appointment was unusual: he was one of the few Pentagon leaders handpicked by the new President. Fearing that Robert McNamara was inexperienced in Washington's ways, Kennedy chose Gilpatric to add experience to his Defense team....

The book says the White House learned early on that W. Mark Felt, an F.B.I. official who had wanted the job that Mr. Gray got, was a news leaker. Attorney General Richard G. Kleindienst advised him in 1972 to fire Mr. Felt, Mr. Gray wrote.

"Where’s all this coming from?" Mr. Gray asked.

"From John Mitchell," Mr. Kleindienst replied, referring to the former attorney general who was heading the Nixon’s re-election campaign.

But who was Mr. Mitchell’s source? "It’s Roswell Gilpatric," Mr. Kleindienst said.

Click on my ID to read about what a "bi-partisan monster", Robert Lovett was....