‘Rich Bankers Bailing Out Rich Bankers With Your Credit Card’

Did you see the markets take off to the upside yesterday afternoon?  That was after it was widely reported that the original “Doctor Doom,” Nouriel Roubini, had said the recession was over.  Roubini came out clarify things later - that he indeed hadn’t called for an end to the recession - but stocks had already made their big run.

Over at the Big Picture, they have the rundown on the strange events, as well as this comment by Bill King:

Stocks ignited in the early afternoon when CNBC and other fin media outlets reported that renowned doomster, Prof. Roubini, said the worst of the financial and economic crisis is behind us.  After the close Roubini denied that he had changed his forecast.  This led astute operators to wonder if someone planted the erroneous story as part of a well-orchestrated option expiration squeeze.

Sean’s note:  The market is looking less honest every day.  Obama’s minions have to get a handle on the crookedness - now - if they want to save American capitalism.

Speaking of crooked, let’s talk about Goldman Sachs.  Glenn Beck has a great “Howard Beale” moment about Goldman Sachs …

If the video doesn’t show up, here’s a direct link:

http://www.youtube.com/watch?v=_wVQ3_ZaYB4

Now, a day when I find myself thinking Glenn Beck is the sane one in the room is an interesting day indeed.  But are you ready for the real craziness?  Guess who agrees wholeheartedly with Glenn?  The answer is Paul Krugman …

Krugman Slams Goldman Sachs: “What It Does Is Bad For America”

By rescuing the financial system without reforming it, Washington has done nothing to protect us from a new crisis, and, in fact, has made another crisis more likely.

 XX Sean’s note:The reason why Goldman is now bagging big fat profits is simple:  The company received 100 cents on the dollar for their counterparty risk exposure from AIG, to the tune of $13 billion of your and my tax dollars, while other AIG claimants are still waiting for their money.  Add to that recent market action where Goldman was raking in $100 million a day in trading profits.  They may have pulled the plug on that operation after a rogue programmer was accused of stealing Goldman’s code/secret sauce.

For more in-depth analysis of Goldman Sachs’ business practices I recommend Matt Taibbi’s “Vampire Squid” take on Goldman Sachs in the latest Rolling Stone: http://tinyurl.com/m9st5c.  He’s over the top, but I believe he gets the gist right. Zero Hedge has a good question about Goldman’s business practices as well.

And speaking of rich guys taking care of rich guys …

Big Pharma Winning Most Of What It Wants In Health-Care Overhaul

Legislation expected soon in the powerful Senate Finance Committee will leave out cost-cutting steps as part of an agreement with the industry and the White House, according to Congressional aides, industry lobbyists and others involved in the talks.

The missing items include two planks of Mr. Obama’s campaign platform: allowing cheaper drugs to be imported from Canada and giving the federal government the right to negotiate Medicare drug prices directly with pharmaceutical companies.

 In Other News … 

I’ve said this before: If California wants to break its cycle of doom, it has to think outside the box. Hence, a good idea:  Taxing Pot Would Generate $1.4 Billion in California: State Board

If you want someone who really thinks the recession “is over,” you’ll have to go to Merrill Lynch.  Who do you think carries more weight now?  Nouriel Roubini or Merrill Lynch?

China Rebound Props Up World Economy as U.S. Struggles to Return to Growth

China’s economic comeback is under way, towing along companies from Intel Corp. to Hyundai Motor Co. and starting to make up for weak demand in other major economies.

Solar Power Generation Capacity May Double in 2010 on China, U.S. Demand

New solar power generation may double next year, recovering from low capacity utilization caused by the global financial crisis, as China and the U.S. increase demand for clean energy, a fund manager said.

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