This morning's key headlines from GenerationalDynamics.com
- Egypt's president Morsi opposes France's intervention in Mali
- Polio virus found in Cairo, blamed on Pakistan
- Furious Chinese spokesman blasts Philippines for seeking arbitration
- Cameron proposes referendum on Britain staying in EU
- Emails show evidence of Morgan Stanley fraud in financial crisis
- House Republicans kick the can down the road
- Hillary Clinton: 'What difference does it make?'
Egypt's president Morsi opposes France's intervention in Mali
Mali - battle map for Wednesday (France 24)
Egypt's president Mohamed Morsi says that he would have
preferred a more "peaceful and developmental" approach to the
crisis in Mali than France's military intervention: "We do not accept at all the military intervention in
Mali because it will fuel conflict in the region."
And, he certainly may be correct about that. However, he declared
support for Algeria's retaliatory action against Islamist militants
who took hundreds of hostages at a natural gas plant, resulting in the
deaths of 37 workers. Morsi's statement may strain Egypt's ties with
France, but according to one analyst Morsi had no choice, as the rift
between secular and liberal forces in Egypt versus the Islamist
government is widening. "Coming down on the side of a European
military power against an 'Islamist' regime — however brutal — could
put him at risk of losing his political base." Global Post and France 24
Polio virus found in Cairo, blamed on Pakistan
For the first time since 2004, the polio virus has been found in
Cairo, after it had been thought to be eradicated throughout Egypt.
The World Health Organization (WHO) discovered the virus in sewage
water found in parts of Cairo, though no cases of human infection have
been reported so far. The strain of the virus found in Cairo is
identical to a strain found in Pakistan. Pakistan's vaccination
program has been opposed by the Taliban, who claim that it's a secret
American plan to sterilize Pakistanis, to prevent the births of more
Muslim children. This opposition has increased since the
U.S. administration, in the process of bragging about having killed
Osama bin Laden, revealed that a phony vaccination program was used to
help establish the identity of bin Laden. In December, terrorists
murdered nine health workers involved in the vaccination program in
Pakistan. Pakistan has ordered the immunization of all children
leaving the country, in an attempt to halt the spread abroad.
Daily News Egypt and Express Tribune (Islamabad)
Furious Chinese spokesman blasts Philippines for seeking arbitration
An angry Hong Lei, spokesman from China's foreign ministry, blasted
the Philippines for referring the dispute with China over the
Scarborough Shoal in the South China Sea to the United Nations
International Tribunal on the Law of the Sea (ITLOS).
Hong, "China has consistently opposed the Philippines’
illegal occupation... We hope that the relevant country honors its promises, and... does not take any action to complicate or expand the
China criticizes actions that "complicate or expand" the problem.
They'd like to keep things simple. They've stationed the military
around the South China Sea, taken over islands that have historically
belonged to other countries, announced that they would board and seize
foreign ships that enter the South China Sea, and threaten war on an
almost daily basis. The Chinese have learned their lessons well from
Hitler's Nazi thugs. Philippine Star and Global Times (Beijing)
Cameron proposes referendum on Britain staying in EU
Britain's prime minister David Cameron finally gave his long-awaited
speech on whether he thinks that Britain should remain in the European
Union. There is an extremely vocal minority of people in his own
party who are demanding that the question be put to a referendum vote.
Cameron said that if he were re-elected in the next election, then he
would call a referendum vote in 2018. In the meantime, he's demanding
that Britain be exempt from certain rules that limit the control of
immigration and that forbid any work week longer than 48 hours.
However, other European leaders were caustically critical, calling it
selfish, ignorant and dangerous. Germany's foreign minister said that
"Cherry-picking is not an option." France's foreign minister said
that it was as if Britain had joined a football club and then suddenly
said "let's play rugby". Most of the criticism of Cameron was
centered on the complaint that his speech would worsen the financial
crisis by creating greater uncertainty in the financial markets.
Emails show evidence of Morgan Stanley fraud in financial crisis
Thanks to a case brought by a Taiwanese bank that lost hundreds of
millions of dollars on toxic synthetic subprime mortgage-backed
securities sold to them by Morgan Stanley, Morgan Stanley has been
forced to release hundreds of pages of internal documents showing that
their employees were well aware that the securities they were selling,
typically rated "AAA", were in fact defective and would turn out to be
almost worthless. The documents show a pattern of behavior by people
across the bank. The toxic securities were packaged as a CDO called
"Stack 2006-1," but e-mail messages show that bank employees suggested
calling it "Subprime Meltdown," "Hitman," "Nuclear Holocaust," "Mike
Tyson's Punchout," and the simple-yet-direct: "Shitbag."
early as October 2005, an e-mail message shows that the mortgage loans
going into the toxic securities were troubled:
The real issue is that the loan requests do not make
sense. [For example,] a borrower that makes $12K a month as an
operation manager of an unknown company — after research on my
part I reveal it is a tarot reading house. Compound these issues
with the fact that we are seeing what I would call a lot of this
type of profile.
The really damning e-mail messages are from early 2007, when it was
clear to everyone that the subprime real estate market was collapsing.
Instead of ending the sale of these toxic securities, or at least
warning investors of the danger, Morgan Stanley bankers doubled down
on selling the fraudulent securities to investors, including the
Taiwanese bank now suing them.
This is consistent with EXACTLY the point that I've been making for
almost five years. Sales of these toxic securities skyrocketed in
2007, when it was becoming clear that the models on which they were
based (that assumed that the real estate bubble would continue to grow
forever) were catastrophically faulty. This is undeniable
circumstantial evidence that the bankers were knowingly committing
This new collection of evidence from Morgan Stanley proves that this
interpretation of the circumstantial evidence was exactly correct.
And yet, the Obama administration has adamantly refused to investigate
and prosecute the bankers who perpetrated these crimes. Eric Holder's
Justice Dept. could easily have subpoenaed these same e-mail messages
at any time and brought criminal charges, but they refused to do so
because these bankers have been making huge campaign contributions to
the Obama campaign. It makes me want to vomit.
I want to address the claim that all these bankers make -- that it was
OK to defraud the investors in these toxic securities because they
were "sophisticated investors." Just to take one example of what this
means, I had a conversation with the CFO of Digimarc Corp. in August
2007, that I've previously written about. ("How Boomers and Generation-Xers brought about the dumbing down of Information Technology (IT)")
That CFO was a "sophisticated investor," but he told me that he kept
things simple by only investing in AAA-rated securities. We now know
that banks like Morgan Stanley colluded with ratings agencies like
Moody's to give toxic securities AAA ratings. So the fraud was
specifically designed to target these sophisticated investors, who
depended on people who turned out to be crooks. Pro Publica
House Republicans kick the can down the road
In a move that supports the "Kick the Can Theory," which says that
Washington will never do anything but kick the can down the road, same
as Greece and Europe, the House of Representatives passed a bill that
will raise the debt ceiling for three months, until May (at which time
it will undoubtedly be raised again). However, the bill contains a
joke: Lawmakers will not get paid unless they pass a budget in the
next three months. The reason that this is a complete joke is because
even if they stop getting paid for a while, they'll just pass another
law to get all their back pay plus interest. It's all a big joke.
Ha, ha. The Hill
Hillary Clinton: 'What difference does it make?'
I really had to chuckle at Hillary Clinton's expressions of
outrage at being questioned about the Benghazi coverup, when
she angrily said: "With all due respect, the fact is, we had four dead
Americans–was it because of a protest or because of guys out for a
walk one night and decided to go kill some Americans? What
difference at this point does it make?"
Someone should have reminded her that she served as an adviser to the
Democrats on the Senate Watergate coverup committee, and nobody
died at Watergate. Huffington Post
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