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Today's Stories January 21, 2008 Kevin Alexander Gray PLaying the Race Card January 19 / 20, 2008 Alexander Cockburn The Campaign in Black and White Saul Landau Good Time Charlie's War China Hand Endgame for Pakistan? Conn Hallinan Desert Mirage: What Was the Bombing of Syria Really About? Ron Jacobs No Retreat Dave Lindorff A Tax Rebate Won't Fix This Mess Andy Worthington Canada's Humiliating Double Standard on Torture Paul Armentano What's the Going Price for a Joint? More Than You Might Think Seth Sandronsky High Crimes and Economics Michael Donnelly Dodging Ecocide Patrick Irelan The Ordeal of Dr. Safdar Sarki Martha Rosenberg The Drug Industry Takes Another Hit Sherwood Ross Making the World Safe for Despots: Bush's Global Arms Trade David Michael Green So You Want to be My President, Eh? James Rothenberg Unimpeachable: Under House Protection Daniel Gross Starbucks Shortchanges Dr. King Peter N. Carroll In Memory of Milton Wolff Susie Day Croakin' on Hudson Paul Krassner Woody Allen Meets Tongue Fu Poets' Basement Wolff, Buknatski and Orloski Website of the Day Rocky Mountain Blues   January 18, 2008 Allan Nairn Killing Civilians, Carefully Ralph Nader When the Big Boys Get in Trouble, Who Pays the Ultimate Bill? Joanne Mariner Terrorism and Preventative Detention Alan Farago The Stimulus and the Meltdown P. Sainath Pity the Brahmins R.F. Blader Beyond Steinem's Feminism Andy Worthington A Letter from Guantánamo John Jonik Private Insurance is Bad for Your Health Brian McKenna Where Even Sharing is Prohibited: Notes from Inside a Michigan Women's Prison Daoud Kuttab This Time Next Year? Website of the Day Those South Carolina Voting Machines   January 17, 2008 Paul Craig Roberts Leader and Vassal Christopher Brauchli The FBI's Bills Come Due Robert Fantina Leadership, Bush and the New York Times Patrick Irelan Eternal War Paul A. Moore When the Rich Pay No Taxes Stephen Lendman Institutionalized Spying on Americans Beena Sarwar Bhutto and the "State Within a State" Walter Brasch Buzzwords in the Echo Chamber: Change and the Establishment Brenda Norrell Bush Legacy in Texas Sours Adam Federman End of the Left? Website of the Day Democrats for Romney   January 16, 2008 Jeffrey St. Clair Return of the Native Franklin Lamb The Bombing at Qarantina Julian Sanchez David Weigel Who Wrote Ron Paul's Newsletters? Sharon Smith Ron Paul and the Left: a Slippery Slope? Allan Nairn Economic Indicator: No Free Lunch, No Free Market Ayesha Ijaz Khan How the American Media Enables Bush's Iran Fixation Andy Worthington A Strategic Call to Close Guantánamo Richard Behan Nancy Pelosi, You Must Impeach! Website of the Day Obama the New JFK? He's Not That Bad!       January 15, 2008 Andrea Peacock Breach of Trust in America's Most Toxic Town: How the EPA is Rubbing Poison Into Libby's Wounds Wajahat Ali An Interview with Seymour Hersh on Iraq, Bush Foreign Policy and the Prospects of War with Iran Joe Bageant Getting Out the Bling Vote Ralph Nader The Candidate Taboos John Ross Zero Hour: NAFTA and Mexico's Agrarian Apocalypse Elaine Cassel Jose Padilla vs. John Yoo: Can a National Disgrace be Rectified? Peter Morici The Fed Needs More Than a New Communications Strategy Beena Sarwar Pakistan's Dirty Tricks Brigade Robert Weissman Big Business is Even More Unpopular Than You Thought Binoy Kampmark Going Tata in India Dave Zirin Dennis Brutus Smacks Down the Hall of Fame Website of the Day David Lynch on the iPhone   January 14, 2008 Ishmael Reed Ma and Pa Clinton Flog Uppity Black Man Roger Morris Burials in the Sind Uri Avnery The Hands of Esau Mike Whitney Bush's Voodoo Stimulus Package Allan Nairn General Suharto of Indonesia: One Small Man Leaves a Million Corpses William Blum Oh, By the Way, the Iraqis Don't Really Want Us Alan Farago A Subprime Wake Up Call David Macaray Are Labor Unions Ready for Prime Time? Eva Liddell Getting Drunk with Obama Zoe Blunt Road Kill: New Highway Blocked by Protesting Raccoons Website of the Day Doug and Andrea Peacock on Grizzlies   January 12 / 13, 2008 Andrew Cockburn How the New England Journal of Medicine Undercounted Iraqi Civilian Deaths Saul Landau 60 Years of Empire Corey D. B. Walker Barack Obama and the Crisis of the White Intellectual Col. Dan Smith Bush, Iran and the Magician of the Tarot Eric Toussaint The US Subprime Crisis Goes Global Ron Jacobs Television, Murder and Vietnam Fred Gardner The People vs. Christopher James Chakos Stan Cox Don't Take That Pill! Jacob G. Hornberger The Warfare State Ramzy Baroud The Good, the Bad and the Ugly Joseph Grosso The Anglosphere: a Special Relationship of Elites David Díaz-Arias Imagining An/Other Latin American Left Stacey Warde Before We Move On ... Dan Bacher Pumped to Extinction: the Decline of the Delta Smelt Michael Dickinson Georgie in Jesusland Website of Weekend CounterPunchers Protest Outside NYT Offices   January 11, 2008 Dave Lindorff Did Hillary Really Win New Hampshire? More Questions About Diebold Voting Machines Paul Craig Roberts No Escape from War and Unemployment Andy Worthington Six Years of Guantánamo Kenneth Couesbouc Banking on Thin Ice Jeff Ballinger Inside the Vienna Consensus Christopher Brauchli Lethal Injection, the Supremes and China Manuel Garcia, Jr. Paying No Attention to the Presidential Campaigns Andrew Silverstein Bush's Weepy Visit to Jerasulem Marwan Bishara Bush in the Middle East Robert Weissman The First Amendment Gone Wild Patrick Irelan Damn the Small Boats! Website of the Day Hillary and the Superdelegates: Or Why She Wins Even When She Loses     January 10, 2008 Alexander Cockburn Now Nader Claims He Didn't Endorse Edwards Bob Wing Marqueece Harris-Dawson Race Within the Race: Obama, the NH Vote and the Specter of Tom Bradley Michael Donnelly White Women Gone Wild? David Macaray Three Big Reasons for the Decline of Labor Unions China Hand Bush's Delusional Policy Pushes Pakistan to Brink of Catastrophe Ayesha Ijaz Khan Saudi Arabia and Pakistan: Brotherly, Friendly Countries? Rannie Amiri Obama, Man of Kansas or Kenya? Website of the Day Iranian Video of the Hormuz Incident   January 9, 2008 Cockburn / St. Clair The Empire Strikes Back Dave Lindorff The Bad News from New Hampshire: Death By Triangulation John Chuckman Pardon My Laughter: Watching the US Primaries from Canada James Bovard Stomping Freedom: Inside the Martial Law Act of 2006 Alan Farago As Florida Sinks: the View from the Titanic Russell Mokhiber Why Picket the New York Times in DC on Friday? William S. Lind Kicking the Can Down the Road in Iraq Peter Morici Beyond the Sophistry: Why the Trade Deficit Matters Josh Reubner Sudan vs. Israel: Double Standard on Divestment Mike Roselle The Pursuit of Happiness Website of the Day Bottles of Tears on the Wall: Steve Perry on NH   January 8, 2008 Paul Craig Roberts No Jobs for the New Economy (or the Old) Russell Mokhiber The Black Hillary: Obama is Just Another Political Sedative Robert Fantina The Gulf of Tonkin and the Strait of Hormuz Dave Zirin Butts on Parade Shamako Nobel I Am an Emcee: the Politics of Hip Hop John Ross Zapatista Women Encounter Themselves Brenda Norrell Apaches Defend Homeland from Homeland Security Laura Carlsen Why Bolivia Matters Patrick Irelan Remember the Maine! Evelyn J. Pringle The Holes in Bush's FDA Jonathan M. Feldman After Iowa and New Hampshire: a Strategy for Rebuilding the Peace Movement Michael Dickinson Playing Soldier Website of the Day Sean Hannity on the Run!   January 7, 2008 Chris Floyd There Will Be Blood: But No Justice for Iraq Atrocities John Blair Remove That Man! Creeping Fascism in Indiana Uri Avnery The Case of the White Bird Andy Worthington Who Are the Gitmo Saudis? Binoy Kampmark Needling the Convict: Lethal Injection and the Supreme Court David Macaray Women on Strike Ralph Nader Obamarama: the Politics of the Smooth Mood Michael Donnelly It's the War Vote(s), Stupid! Ron Jacobs Ron Paul's Run: Is Being Against the War Enough? Gideon Levy The Hostile President Dave Lindorff A Real 9/11 Cover-Up? Sibel Edmonds, Turkey and the Bomb Website of the Day Plagues and Pleasures on the Salton Sea   January 5 / 6, 2008 Douglas Valentine Good Guys in Black Hoods Kevin Young The US Occupation and Popular Opinion in Iraq Richard Rhames Saddam Who? Saul Landau Bush Snatches Defeat from Victory Marc Lynch Why Bush's Iran Strategy is Failing Robert Fantina Iowa, Democrats and the Iraq War Donna Volatile Antiwar Soldier: an Interview with Jonathan Hutto, Sr. Jelle Bruinsma Norman Finkelstein in The Netherlands Bob Sutcliffe Remembering Andrew Glyn, Rebel Economist Harvey Wasserman Anti-Nuclear Renaissance Missy Beattie Why Obama Can't Save Us David Swanson Remembering the Separation of Powers Jacob Hornberger The Importance of the Padilla Case Shepherd Bliss Survival Tools from Kokopelli Farms Ron Jacobs Bleeding Kansas Poets' Basement Patti Smith, B.R. Gowani and Peter Buknatski Website of the Weekend Jimmy Dean Sausage Call Complaint   January 4, 2008 Cockburn / St. Clair A Good Night in Iowa Jonathan Cook War Crimes Airbrushed from History Paul Craig Roberts Thinking for Yourself is Now a Crime Stan Goff Ron Paul's Monkeywrench Dave Lindorff Clinton's Iowa Flop Exposes DLC Myths as Frauds Niranjan Ramakrishnan To Pindi Station Allan Nairn U.S. Elections Over Before They Began Joshua Frank The Failures of Sectarianism Peter Morici Economy on the Skids Mary McInnis Iowa Cocky-Us: How to be a Caucus Tease Website of the Day The Return of Obama Girl   January 3, 2008 Fatima Bhutto Farewell to Wadi Bua Pam Martens The Free Market Myth Dissolves into Chaos Joanne Mariner The Presidential Candidates and Torture Zoltan Grossman Remember the '80s: Social Movements Between Woodstock and the Web David Domke The Echoing Press and Huckabee Norman Solomon Edwards Reconsidered Nikolas Kozloff Return of the Faux Liberal Jacob G. Hornberger The Padilla Case and the Future of Habeas Corpus Martha Rosenberg Quit Picking on Huckabee's Son, Michael Vick Russell Means This Property is Condemned: a Notice to Those Occupying Lakotah Lands Website of the Day WolfQuest   January 2, 2008 Jeff Taylor The Left and Ron Paul M. Shahid Alam The Life and Death of Benazir Bhutto: a Pakistani Tragedy Gary Leupp Madness Compounding Madness: Calls for Intervention in Pakistan Paul Craig Roberts Criminals with Badges Heather Gray Georgia's Racist Death Penalty Fred Gardner and Shobhit Arora Dr. Strangelove's Nemesis David Macaray Labor Unions and Taft-Hartley Benjamin Dangl Fear and Loathing in Bolivia     January 1, 2008 Iain A. Boal City of Disappearances B. R. Gowani Benazir's Death in Crisistan Shahid Mahmood Bhutto and the Press Linn Washington, Jr. Old Injustices Endure: From Crack Sentences to Racial Profiling Harvey Wasserman Taking Leonard Peltier to Iowa: the Moral Low Point of the Clinton Era John Ross 2008, Already a Year to Forget Website of the Day The Thrill is Gone: BB and Gladys   December 31, 2007 Alexander Cockburn Goodbye 2007 and Good Riddance! Tariq Ali Pakistan, the Aftermath Liaquat Ali Khan The Perfidy of Pakistan's Rulers Wajahat Ali After Bhutto, a Nuclear Pakistan? Robert Fisk Who Killed Bhutto? Ajai Sahni Myths and Realities About Benazir Bhutto and Pakistan's Dark Future Marwan Bishara You Say Talk, I Say Attack: The Middle East and the US Presidential Election Campaigns Uri Avnery The Beilin Syndrome Mark T. Harris Does This Happen in Canada? Brenda Norrell Resistance and Censorship Website of the Day A People United Will Never Be Defeated   December 29 / 30, 2007 Alexander Cockburn Options in America: Kill Yourself or Have a Baby Tariq Ali Indignation and Fear Stalk Pakistan Fawzia Afzal-Khan My Encounter with Benazir Bhutto Gary Leupp The U.S. and Pakistan After 9/11: Blowback from an Unholy Alliance China Hand Pakistan Stares Into the Abyss Jacob Hornberger Stop Medddling in Pakistan John Chuckman Pakistan and the Failure of Quick-Fix Politics Missy Beattie Evaluating Bush with the Bhutto Corruption Standard Ralph Nader Who Will Take the Next Step? Fidel Castro There Hasn't Been a Day in My Life When I Haven't Learned Something Robert Fantina The Sham of Homeland Security Greg Moses Beauty from the Heart of Texas Catherine Lutz What We Can Not See: Art and Bombing Kristin Van Tassel Seeing in the Dark Kim Nicolini Redacted: Brian DePalma's Scream of Outrage Phyllis Pollack Keith Richards Runs With Rudolph Once More Poets' Basement Landau, Gibbons and Davies Website of the Weekend Driving Karachi in Search of the Perfect Naan   December 28, 2007 Farzana Versey The Complex Electra Wajahat Ali A Pakistani Requiem Binoy Kampmark Death in Rawalpindi: Bhutto and Her Legacy Ayesha Ijaz Khan Not Dead Yet: The Pakistan People's Party Still Survives Anthony DiMaggio Turkey's Bombing of Iraq Ray McGovern Creeping Fascism Jim Goodman Biofuels, the Biggest Scam Going Ron Jacobs Transcending the Colonizer's History: Iran, a People Interrupted Russell Hoffman Mini-Nukes by Toshiba John Murphy Greens Gone Wild Website of the Day Guiliani Campaign Official: "Only Rudy Can Defeat the Muslims"   December 27, 2007 Dilip Hiro A Tragedy Foretold: Will Bhutto's Death be a Boost for Her Party? Murtaza Shibli Who Killed Bhutto? Stephen Soldz Fallujah, the Information War and U.S. Propaganda Bill Quigley Locked Outside the Gates Paul Craig Roberts The Great American Lock-Up Omer Subhani Killing Bhutto: What Happens Next in Pakistan? Marjorie Cohn The Torture Tape Cover-Up: How High Does It Go? Allan Nairn Cataclysm By Money Whim Jacob G. Hornberger Smearing Ron Paul: Shame on the NYT Norman Solomon Channeling Suze Orman Patrick Irelan Rumsfeld Spills the Ink Ben Tripp Pass the Razor Blades Website of the Day Quagmire, For What It's Worth   December 26, 2007 Charles Tripp From One Saddam to Fifty Paul Armentano No-Knock, You're Dead Rannie Amiri Lebanon in Search of a Government Stanley Heller Brzezinski and Charlie Wilson's War John Walsh Two Unreasonable Men Martha Rosenberg The Strange Career of Scott Gottlieb Norman Madarasz Bolivia Amends New Constitution and Faces Mutiny from Within Website of the Day Cockburn at the Battle of Ideas   December 25, 2007 Patrick Cockburn Conscience and Empire December 24, 2007 Andrea Peacock A Dark Ride on the Border Tariq Ali Thinking of Edward Said Uri Avnery Help! A Ceasefire! Jill Jameson Burma is Not Back to Normal: A Trip from Rangoon to Mae Sot Steve Melendez Russell Means Goes to Washington Mike Whitney The Big Fix Chuck Munson Not Getting It About New Orleans John Walsh Clueless Crusaders Farzana Versey Tony Blair and the Hawking of Religion Richard Neville Dreaming of a White House Christmas Website of the Day Back in the USSR December 22 / 23, 2007 Alexander Cockburn Mike Huckabee's Ascending Chariot Ralph Nader Politics and Profits: How the Oil Cartel Gets Its Way Andy Worthington Intelligence Failures, Battlefield Myths and Unaccountable Prisons in Afghanistan Ahmad Faruqui The Comedian of Pakistan Bill Moyers Society on Steroids Rev. William E. Alberts Blessed are the Peacemakers Timothy J. Freeman From Kant to Lennon: Can War Really be Over? Anthony DiMaggio Democrats Continue to Capitulate on Iraq Fred Gardner Molecule of the Year, Cannabiodiol Paul Krassner Enhanced Hazing Techniques Seth Sandronsky 17 Years of Meanness: Repealing California's Three Strikes Law William Loren Katz Christmas Eve Freedom Fighters: Recalling the Battle of Lake Okeechobee Michael Dickinson In the Dungeon of the Zabita Ron Jacobs Why Leon Russell Still Matters David Vest Doyle Bramhall's "Is It News?" Poets' Basement Orloski, Davies and Ford Website of the Weekend George W. Hates Santa   December 21, 2007 John Ross New Massacres Loom in Mexico Jacob Hornberger Nothing Can Morally Justify the Invasion of Iraq Dick J. Reavis A Way Out of the Newspaper Abyss Jeff Cohen and Norman Solomon The 2007 P.U.-litzer Prizes Peter Morici Business as Usual as Recession Looms Jack McCarthy Let Us Now Praise Judith Regan (Even If She Did Sleep with Bernie Kerik) Raúl Zibechi Sex and Revolution Steve Early How the Presidential Candidates Made Me an Atheist David Macaray Union Aftermath Patrick Bond Zuma, the Center-Left and the Left-Left in S. Africa Lakota Freedom Delegation A Declaration of Independence from the USA Website of the Day Solomon v. Beck: Tale of the Tape   December 20, 2007 David Rosen Mitt Romney's Secret Life as a Pornographer Alan Farago The Huckster and the Wreckage: Jeb Bush and the Subprime Mortgage Crisis Laura Carlsen Standing Up to NAFTA Ashley Dawson The Return of the Bread Riot Wayne Smith and Jennifer Schuett Cuba Changes, US Policy Stagnates Website of the Day How to Talk to a FoxNews Reporter   December 19, 2007 Saul Landau Is the NIE Bush's Watergate? Paul W. Lovinger Hillary the Hawk Norman Solomon The Mad Corporate World of Glenn Beck Dave Zirin George Mitchell's Drugs of Choice Marjorie Cohn Bush Still Spinning Iranian Nukes Sen. Russell Feingold The Iraq War is Exhausting Our Nation Sonja Karkar A Christmas Reflection on Palestine Anthony Papa Open the Drug Gulags Christopher Ketcham Pave the Holy Lands with Good Intentions Davey D Britney's Little Sister is Pregnant: Should We Blame Hip Hop? Website of the Day When Republicans Use the F-Word on TV   December 18, 2007 R. F. Blader The Politics of Teen Pregnancy George Wuerthner Gunning for Wolves in Idaho Steven Higgs Can the NAFTA Superhighway be Stopped? Vijay Prashad Encounters with Ghadar David Macaray The Free Rider Problem Ralph Nader Nine Books That Make a Difference: a Reading List for the Holidays Eva Liddell Privatizing War Abroad, Invading Privacy at Home Martha Rosenberg While the Bodies are Still Warm: Drugs, Shrinks and Shooters Dave Lindorff When Impeachment is Out of Print Peter Morici The Consequences the Trade Deficit Website of the Day Ron Paul: How Fascism Will Come to America   December 17, 2007 Mike Whitney Staring Into the Abyss Tom Barry Planning the War on Immigrants Uri Avnery A Gaza Masada? Greg Moses Crossing the Line in Texas Allan Nairn Terrorism; Counter- Terrorism: Excuses for Murder Patrick Bond South Africa's Fight Between Hostile Brothers Stephen Lendman Police State America Charles Jonkel Grizzly Right of Way Laray Polk An Inside-Out Crisis in Gaza Stephen Fleischman Pawns in Their Game December 15 / 16, 2007 Peter Linebaugh A People's Penny for the Magna Carta Howard Zinn Bomb After Bomb Standard Schaefer The Greening of Big Tobacco Raymond J. Lawrence Let's Take Christ Out of Christmas Alan Farago Down on Desolation Row: the Vultures and the Growth Machine Saul Landau Lord Byron and the Bad Tourists Jenna Orkin Lying to "Reassure" the Public: Bush's EPA and the Post-9/11 Toxic Air Cover-Up Ahmad Samih Khalidi Why a Palestinian "State" is a Punitive Construct Robert Fantina Politics By Photo-Op Missy Comley Beattie Resistance Amid the Ruins Ramzy Baroud Of Mormons and Muslims James L. Secor A Vision for China's Future Elijah Wald Ike Turner's Music Won't be Forgotten Website of the Weekend The Alliance for the Wild Rockies Needs (and Deserves) Your Support   December 14, 2007 JoAnn Wypijewski The Dirty Cad: What Giuliani's Sex Life Tells Us About Him John Ross Iraqi Refugees Return: One Cruel Hoax Jacob Hornberger Terror Suspects Belong in Federal Court Andy Worthington Guantánamo and the Supreme Court: What Happened? Allan Nairn "Shoot Them on the Spot": Rewarding War Crimes Dave Zirin The Mitchell Report: Absolving the Owners Dave Lindorff The First Cut is the Deepest Misty MacDuffee Toxic Grizzlies Ben Terrall What Happened to Lovinsky Pierre-Antoine? Dr. Mustafa Barghouthi Prerequisites for Peace Website of the Day Sen. Kit Bond: "Waterboarding is Like Swimming"   December 13, 2007 Paul Craig Roberts Shrinking the Dollar from the Inside-Out Mike Whitney Dershowitz for the Defense--of Waterboarding Ron Jacobs Blank Check DemocratsL the Great War Funding Conspiracy Norman Solomon The USA's Human Rights Daze Peter Morici The Dragon and the Toothless Dog: China Doesn't Flinch Sandy Mayes Blocking the Strykers: 13 Days of War Resistance at Port Olympia Franklin Lamb The UN in Lebanon: Whose Mission Is It Fulfilling? Jacob Hornberger Don't Reform the CIA, Abolish It Nadim Rouhana An Interloper in My Own Land Dave Zirin On Pigskin and Petrol Website of the Day Rachel's Needs (and Deserves) Your Support! December 12, 2007 Allan Nairn US Intelligence is Tapping Indonesian Phones Alan Farago How Sprawl Eats Its Young Ray McGovern Torture, Lies and Videotape Winslow T. Wheeler The Phony Pentagon Budget Cuts Evan Jones The Raid on Great Western: Why an Australian Bank Might Spell Doom for the US Farm Belt James Petras An Open Letter to Sarkozy on the Exchange of Political Prisonsers Joel Hirschorn The Horserace Fiction: Clinton, Obama and the Democratic Machine Joshua Frank Why Ron Paul Deserves Our Attention Sherry Wolf Why the Left Should Reject Ron Paul Dan Bacher Survey of a Fish Graveyard Website of the Day Men Eating Bugs                 Subscribe Online

MLK Day January 21, 2008 $100 Billion and Counting How Wall Street Blew Itself Up By PAM MARTENS The massive losses by big Wall Street firms, now topping those of the Great Depression in relative terms, have yet to be adequately explained. Wall Street power players are obfuscating and Congress is too embarrassed or frightened to ask, preferring to just throw money at the problem and hope it goes away. But as job losses and foreclosures mount and pensions and 401(k)s shrink, public policy measures to address the economic stresses require a full set of unembellished facts. The proof that Wall Street is giving mainstream media a stage-managed version of what went wrong begins with a strange revelation by Gary Crittenden, CFO of Citigroup, on the November 5, 2007 conference call where he discusses what have now become the largest losses in the firm's 196-year history. Mr. Crittenden is asked by an analyst why the firm didn't hedge its risk. Here's his response: "I mean I think it is a very fair question...we are the largest player in this [collateralized debt obligation; CDO] business and given that we are the largest player in the business, reducing the book by half and then putting on what at the time was three times more hedges than we had ever had at least in our recent history, seemed to be very aggressive actions given that we were a major manufacturer of this product...once this [decline in values] process started...the size was simply not there. The market is simply not there to do it in size in any way and it would have been uneconomic to do it." What Mr. Crittenden really seems to be saying is that Wall Street, with Citigroup leading the pack, built a vast market of complex securities but neglected to put in place a liquid and efficient marketplace for hedging this risk. Say, for example, big, liquid, exchange traded indices and futures contracts that are routinely used to hedge everything from stocks to soy beans to crude oil by as diverse a group as Iowa farmers to Saudi princes. In fact, the unabridged story is breathtaking in its callous disregard for the economic well being of this nation and its people. Exchange traded products did not emerge to hedge this risk because, behind the scenes, Citigroup, along with 12 other big banks and securities firms were funding a private company to gobble up all the necessary components to keep this burgeoning cash cow to themselves in the opaque, unregulated, over-the-counter (OTC) market, despite the fact that they knew it was dysfunctional. The private company that would become Wall Street's ticker tape for pricing exotic credit instruments (derivatives on subprime mortgages and credit default swaps) started out as Mark-it Partners in 2001, the brain child of Lance Uggla while he was working for a division of Toronto Dominion Bank, TD Securities. The official story goes like this: Mark-it Partners needed big broker dealers to submit daily price data. As an incentive, it offered 13 large security dealers options to buy shares in the company providing they would be regular providers of pricing data: ABN AMRO, Bank of America, Citigroup, Credit Suisse, Deutsche Bank, Dresdner Kleinwort Wasserstein, Goldman Sachs, JPMorgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, TD Securities, UBS. By 2004, according to an archived company press release, all of the companies had kicked in capital. The Financial Times would later report that these banks and brokerage firms held a majority interest of approximately 67%, hedge funds owned 13%, and employees 20%. The firm's web site currently says it has 16 banks as shareholders, without naming the banks. Deutsche Bank, Goldman Sachs and JPMorgan were reportedly the first three firms to take an equity stake in Mark-it on or around August 29, 2003 when the three firms sold a proprietary database of credit derivative information to Mark-it. Since Mark-it is a private firm, financial terms have not been disclosed. What would have been the incentive for three big Wall Street players to build a proprietary database and then, in a magnanimous gesture completely uncharacteristic of Wall Street greed, hand it over to be shared with their largest competitors? One likely answer is that around this time regulators with a fetish for orderly paper trails (but myopic to the rapidly escalating financial hazard of this unregulated market) had stumbled upon the fact that there was a growing backlog of credit derivative trades that were never officially confirmed between the parties, reaching a peak of 153,860 unconfirmed trades by September 2005. Of this, 97,650 trades were more than 30 days overdue; 63,322 trades were a stunning 90 days past due according to a Government Accountability Office (GAO) report. (Although regulators knew about this spiraling trading nightmare as earlier as 2003, the GAO report did not come out until we were deep into the credit crisis in June 2007.) It was during this time that regulators got an agreement from the major dealers that Mark-it Partners would begin collecting and aggregating the data on unconfirmed trades, keeping individual dealer data confidential from other dealers and preparing a monthly report of aggregated data for regulators. Who were the banks and brokerage houses responsible for this unmitigated mess? With only a few exceptions, the exact same firms with a majority ownership in Mark-it Partners. To grasp the magnitude of this wild west world of trading, one needs to understand that we are not talking about a market of a few billion dollars. According to the International Swaps and Derivatives Association, the credit derivatives market has grown from an estimated total notional amount of nearly $1 trillion outstanding at year-end 2001 to over $34 trillion at year-end 2006. According to the U.S. Office of the Comptroller of the Currency (OCC), JPMorgan, Citigroup and Bank of America handled about 90 percent of this trading among U.S. commercial banks in the fourth quarter of 2006. (These are the same three banks that were backing the scheme last year with the U.S. Treasury to create a $100 Billion bailout fund for exotic instruments that also had never seen the light of day of exchange trading. That plan failed when it appeared to be a thinly disguised artificial pricing mechanism to inflate values for the worst hit firms on Wall Street: namely, Citigroup.) According to the GAO report, significant progress was achieved for a period in bringing down these unconfirmed trades but by November 2006, the numbers had climbed again: there were over 81,000 unconfirmed trades with around 31,000, or 54 percent, remaining unconfirmed for over 30 days. Raising images of the early 1900s curb market in lower Manhattan where traders posted securities for sale on lampposts, the report notes that this vast market is being handled manually to a significant extent. (Our nation has apparently devolved not only on torture and constitutional rights and habeas corpus and election integrity but we now seem to have wiped out 100 years of trading advances.) The obvious solution, a transparent, regulated, automated, exchange traded model does not seem to have occurred to the Masters of the Universe or their timid regulators. It did, however, occur to four Exchanges: Eurex, the Chicago Mercantile Exchange (Merc), the Chicago Board of Exchange (CBOE) and the Chicago Board of Trade (CBOT). In 2007, all four created exchange traded instruments to hedge the risk of credit defaults. Some traders call the response from the Wall Street firms a boycott; others call it a cabal that circled the wagons. According to a Bloomberg article in April 2007, "Banks and securities firms are keeping a stranglehold on the market, which has swelled to cover debt sold by more than 3,000 companies, governments and industries." A call to the CBOT on January 18, 2008 confirmed that they are still not seeing any business from the big Wall Street firms in their credit default product. The track for this train wreck was put in place in December 2000 when Congress passed the Commodity Futures Modernization Act giving a free pass on regulation to the over-the-counter trading between sophisticated individuals and institutions. Brooksley Born, then Chairperson of the regulatory body, the Commodities Futures Trading Commission (CFTC), literally begged Congress to slow down the train and carefully consider the future ramifications of this legislation. Speaking before the House Committee on Banking and Financial Services on July 24, 1998, Ms. Born said: "The CFTC or its predecessor agency, the Commodity Exchange Authority, has regulated derivative instruments for almost three-quarters of a century. Its authority is contained in the Commodity Exchange Act ("CEA" or "Act"), which is the primary federal law governing regulation of derivative transactions. The CEA vests the CFTC with exclusive jurisdiction over futures and commodity option transactions whether they occur on an exchange or over the counter. The Act generally contemplates that, unless exempted, futures and commodity options are to be sold through Commission-regulated exchanges which provide the safeguards of open and competitive trading, a continuous market, price discovery and dissemination, and protection against counterparty risk." Alan Greenspan, Chair of the Federal Reserve Board at the time, testified before Congress in favor of this legislation and asked that it be "expedited." Last week, Mr. Greenspan joined the payroll of the hedge fund, Paulson & Company, which last year made $15 billion in profits betting that poor people's homes would be foreclosed on while using the unregulated over-the-counter contracts that Mr. Greenspan assisted in making possible. The counter-party risk that Ms. Born highlighted in her testimony is now set to take center stage in 2008. As it turns out, this non-exchange based market of darkness totaling $34 trillion has done business with some parties that are unable to pay up or are teetering on a death spiral due to looming ratings downgrades. Last week, Merrill Lynch announced it was writing down over $3 Billion as a result of problems with its counter-parties. As the threat of some antiseptic sunshine and competition from the exchanges reached the big Wall Street players late last year, Mark-it Partners, now known as Markit Group Ltd., had yet another amazing burst of good fortune. In November 2007, two consortiums owned by essentially the same group of banks and brokerage firms that were early investors in Mark-it Partners, who conveniently also owned the major credit default indices, CDS IndexCo and International Index Co., up and sold themselves to little Markit Group Ltd. Included in the deal by CDS IndexCo were the two subprime indices, ABX and TABX, along with the prominent CDX index which acquired much of its respectability by previously having the name Dow Jones in front of its three letters. ABX and TABX were the indices Citigroup should have been able to hedge itself with if this over-the-counter market was liquid, functional and able to handle pesky details like proof the trade happened. Instead, 401(k) plans, endowments, public pensions and Citigroup employees' deferred compensation plans, loaded up to their eyeballs in Citigroup's bizarrely large float of 5 billion shares, have watched the stock value decline by 53% over the past 12 months as toxic debt that was never hedged comes home from holiday in the Caymans to blow up on Citigroup's books. It was four years after the crash of 1929 before the major titans of Wall Street were forced to give testimony under oath to Congress and the full magnitude of the fraud emerged. That delay may well have contributed to the depth and duration of the Great Depression. The modern-day Wall Street corruption hearings in Congress were cut short by the tragedy of 9/11. They must now resume in earnest and with sworn testimony if we are to escape a similar fate. Pam Martens worked on Wall Street for 21 years; she has no securities position, long or short, in any company mentioned in this article. She writes on public interest issues from New Hampshire. She can be reached at pamk741@aol.com   Your Ad Here

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