From The Thom Hartman Show Oct. 30, 2009. Thom and Matt Taibbi discuss Matt's latest article at Rolling Stone--Wall Street's Naked Swindle

A scheme to flood the market with counterfeit stocks helped kill Bear Stearns and Lehman Brothers — and the feds have yet to bust the culprits.

On Tuesday, March 11th, 2008, somebody — nobody knows who — made one of the craziest bets Wall Street has ever seen. The mystery figure spent $1.7 million on a series of options, gambling that shares in the venerable investment bank Bear Stearns would lose more than half their value in nine days or less. It was madness — "like buying 1.7 million lottery tickets," according to one financial analyst.

But what's even crazier is that the bet paid.

At the close of business that afternoon, Bear Stearns was trading at $62.97. At that point, whoever made the gamble owned the right to sell huge bundles of Bear stock, at $30 and $25, on or before March 20th. In order for the bet to pay, Bear would have to fall harder and faster than any Wall Street brokerage in history.

The very next day, March 12th, Bear went into free fall. By the end of the week, the firm had lost virtually all of its cash and was clinging to promises of state aid; by the weekend, it was being knocked to its knees by the Fed and the Treasury, and forced at the barrel of a shotgun to sell itself to JPMorgan Chase (which had been given $29 billion in public money to marry its hunchbacked new bride) at the humiliating price of … $2 a share. Whoever bought those options on March 11th woke up on the morning of March 17th having made 159 times his money, or roughly $270 million. This trader was either the luckiest guy in the world, the smartest son of a bi**h ever or…

Or what? That this was a brazen case of insider manipulation was so obvious that even Sen. Chris Dodd, chairman of the pillow-soft-touch Senate Banking Committee, couldn't help but remark on it a few weeks later, when questioning Christopher Cox, the then-chief of the Securities and Exchange Commission. "I would hope that you're looking at this," Dodd said. "This kind of spike must have triggered some sort of bells and whistles at the SEC. This goes beyond rumors."

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(John Daly - insisted on calling Hunter S. Thompsons writing style "Bongo Journalism")

In lieu of the recent Senate Bill that questions validity of citizen bloggers, I went back to a National Town Meeting broadcast from 1974 to hear what the status of the media was then. It wasn't that much better, particularly if you were judged to be in the "alternative media" which meant the Underground press back then. However, in all fairness, in 1974 Broadcast news departments were ten times the size they are now. The hours spent on documentaries and special news programming was huge and newspapers offered a plethora of in-depth reports and daily investigative journalism. Unrecognizable from what they are today.

The panel on this broadcast consisted of Pat Buchanan, Richard Harwood of The Washington Post, Richard Goodwin of Rolling Stone and Thomas Asher of the Media Access Project. The program was moderated (and somewhat mangled) by , former newscaster for ABC and CBS, game show host and professional personality.

The subject was "Critiquing The Media" and of course Buchanan spends much time railing against the injustices of the "librul media" and complaining about imbalance. This coming from a man who was deeply entrenched in the Nixon White House.

The subject of Hunter S. Thompson comes up and that's when Daly lets his disconnect be known. Unable to say the words "gonzo Journalism" he insists on a variation of either Bongo and Bonzo Journalism and dismisses it, as does Buchanan who dismisses Rolling Stone in general as no representation of actual news reporting - the only news to be had was from The New York Times or The Washington Post and perhaps Time Magazine.

Richard Goodwin: “I’m not in favor of fictional journalism, and the headline I gave an example, is not intended as fiction, but as fact. I think one of the problems that you have is, even use of the word fact and what constitutes a fact. You’re talking about convictions, attitudes, opinions, judgments. These aren’t facts in the sense that a glass of water is a fact. They require that you impose your own judgment. Somebody says something; is he lying, does he mean it, is it true? And simply to say that he said it, in itself is an assertion, at least to the people who read it, that perhaps or probably what he said is true. It’s a fact that he said it, but he may not be speaking facts or the truth. And unfortunately, most things, most interesting or complicated things in the world are not very, it’s not often easy to decide what the facts are without bringing to it a set of values and personal convictions. And if you withdraw from that you allow those who make the presentation to you to determine what the truth is . . .”

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From John King's State of the Union, James Carville cites the tobacco industry using Betsy McCaughey to plant a story at The New Republic as an example of the "vast right wing conspiracy" that President Obama is facing. Of course Mary Matalin pretends she has no idea who Betsy McCaughey is.

KING: All right. Let's stay for a moment on the -- because I said we would mention it after the break, and Mary brought up that term that we came to know during the Clinton years -- the Clinton presidential years, the vast right-wing conspiracy. It was on his mind.

Let's listen.

(BEGIN VIDEO CLIP)

GREGORY: Your wife famously talked about the "vast right-wing conspiracy" targeting you.

GREGORY: As you look at this opposition on the right to President Obama, is it still there?

CLINTON: Oh, you bet. Sure it is. It's not as strong as it was because America has changed demographically, but it's as virulent as it was.

(END VIDEO CLIP)

CARVILLE: Again, this week, there was breathtaking proof that there was a vast right-wing conspiracy. It was revealed in Rolling Stone that Philip Morris paid -- paid a woman named Betsy McCaughey to plant a piece in The New Republic, all right?

This was -- this is not -- in other words, this was a tobacco company paying for a piece printed in a so-called respectable magazine.

Now, I don't know that, in The New Republic in 2006, that, oh, gee, the whole thing was, kind of, a mistake after they went through all of that. I don't know if The New Republic has called the president to apologize, but I suspect, as we go through, we're going see more and more instances of this.

And every Clinton person, when the president told us the stuff with Taylor Branch, it felt good. And you know what really made us feel good, is Bill Clinton's doing a whole lot better than The New Republic is. They're sitting there at the CGI, and everybody went "Yes." That was a great moment to be a Clinton person.

MATALIN: I don't even know what he's talking about, but I'll say...

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I'm a sucker for a great cover tune, and if you aren't then you're just too cool for school!

Quiet Riot's cover of Slade's "Cum On Feel the Noize" is better known than the original. This version by Oasis, apparently well known among more dedicated Oasis fans than this one, is absolutely addictive and has immediately shot deep into my top covers list, along with Jimi's "Like a Rolling Stone" and Jawbox's "Cornflake Girl".

What's on your list?

That's what you get for causing me to listen to that overproduced, slow-cooked tripe months before I had to...

Seven months after pleading guilty to charges of leaking tracks off Guns n’ Roses’ then-unreleased Chinese Democracy, blogger Kevin “Skwerl” Cogill was sentenced to two months of home confinement, ordered to record a public service announcement for the RIAA and subjected to having his computers scrutinized by the government, Billboard.biz reports. Cogill was also sentenced to a year’s probation.

In an e-mail to Rolling Stone after yesterday’s sentencing, Cogill said he was “relieved” he won’t be serving jail time, “Though I was pretty confident that we had made a strong case against it.” As Rock Daily reported in December 2008, Cogill changed his plea from not guilty to guilty with the hope that the prosecution would only seek probation for the charges. Had Cogill gone to trial and been found guilty, he faced a year in prison, probation and a large fine.

Good thing his computers have to be scrutinized, because sentencing a bittorrent leaker to his bedroom is like sentencing an arsonist to a fireworks store. That aside, making your fans wait 17 years for a substandard glop of original material is asking for it. Glad he got off easy.

Remember that Rolling Stone piece about Goldman Sachs I mentioned the other day? Here's another post from Matt Taibbi that should raise serious concerns about the stranglehold the company has on the economic markets:

"In a move set to infuriate and send many Zero Hedge readers over the top, the NYSE has taken action to make sure that nobody will henceforth be able to keep track of the complete dominance that Goldman Sachs exerts over the New York Zero Hedge Stock Exchange. This basically ends our weekly Program Trading updates disclosed every Thursday indicating that Goldman has singlehandedly captured all of NYSE's program trading."

-- Zero Hedge

I'm sorry I didn't post this earlier, but I urge readers to go over to Zero Hedge and check out this post about the NYSE's recent decision to change its procedures... to protect Goldman Sachs from bloggers like Zero Hedge!

This is complicated stuff (for people with no financial background, like me, it's nightmarish) and I have a longer thing about this coming out later. But the essence of this story is that Tyler Durden over at Zero Hedge has, for months, been complaining that Goldman has been manipulating the NYSE, in particular manipulating program trading in somewhat the same way (although perhaps not to the same extent) that they manipulated the commodities markets. In order to make his case -- and his theory has gained a lot of acceptance, to the point where Goldman had to respond to the allegations publicly -- he has been analyzing data the NYSE releases on program trading every week.

So what happened this week? The NYSE announced that it will no longer be releasing its weekly program trading data. This is quiet obviously a move designed to make it even more impossible to track what's going on in the NYSE and shield, in particular, Goldman Sachs. Let's hope there's a public uproar about this; Zero Hedge posted contact info for NYSE officials, and has urged readers to petition the exchange to restore the old rules in the name of transparency.

They plan to do this by July 10th, so it's important to call now. Let them know what you think of them making it impossible for anyone but insiders to know what's going on. From Zero Hedge:

This is a travesty, as well as a complete obliteration and a mockery of the move for transparency that the Administration, Regulators and Exchanges have been posturing they support.

We advise all readers to contact the provided staff on the memorandum and voice your incredulity with this brazen move to completely obfuscate Goldman's behind-the-scenes take over the world's biggest stock exchange.

Robert Airo, Senior Vice President, NYSE Euronext at (212) 656-5663 or
Aleksandra Radakovic, Vice President, NYSE Regulation at (212) 656-4144

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Matt Taibbi visits the set of the Ed Schultz show to discuss his article at Rolling Stone, The Great American Bubble Machine - Matt Taibbi on how Goldman Sachs has engineered every major market manipulation since the Great Depression . From the magazine:

In Rolling Stone Issue 1082-83, Matt Taibbi takes on "the Wall Street Bubble Mafia" — investment bank Goldman Sachs. The piece has generated controversy, with Goldman Sachs firing back that Taibbi's piece is "an hysterical compilation of conspiracy theories" and a spokesman adding, "We reject the assertion that we are inflators of bubbles and profiteers in busts, and we are painfully conscious of the importance in being a force for good." Taibbie shot back: "Goldman has its alumni pushing its views from the pulpit of the U.S. Treasury, the NYSE, the World Bank, and numerous other important posts; it also has former players fronting major TV shows.

Did you know this Cyndi Lauper hit was written by Philly native Essra Mohawk? Now you can listen to her version. Essra has released 10 highly acclaimed albums including "Primordial Lovers" that Rolling Stone called "one of the 25 best of all time." Essra's songs have also been covered by The Shangri-Las, Vanilla Fudge, McFadden & Whitehead, Keb Mo', Bob Weir, Rita Coolidge, Eria Fachin, Lorrie Morgan and Annie Haslam.

Mind you, this is the man for whose case the Obama administration is citing the state secrets act. This could be any one of us:

A British ‘resident’ held at Guantanamo Bay was identified as a terrorist after confessing he had visited a ‘joke’ website on how to build a nuclear weapon, it was revealed last night.

Binyam Mohamed, a former UK asylum seeker, admitted to having read the ‘instructions’ after allegedly being beaten, hung up by his wrists for a week and having a gun held to his head in a Pakistani jail.

It was this confession that apparently convinced the CIA that they were holding a top Al Qaeda terrorist.

But The Mail on Sunday can reveal that the offending article – called How To Build An H-Bomb – was first published in a US satirical magazine [Seven Days] and later placed on a series of websites.

Written by Barbara Ehrenreich, the publication’s food editor, Rolling Stone journalist Peter Biskind and scientist Michio Kaku, it claims that a nuclear weapon can be made ‘using a bicycle pump’ and with liquid uranium ‘poured into a bucket and swung round’.

Despite its clear satirical bent, the story led the CIA to accuse 30-year-old Mohamed, a caretaker, of plotting a dirty bomb attack, before subjecting him to its ‘extraordinary rendition programme’.

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Looks like the Bush legacy tour has finally ended, thank goodness. Rachel reminds us that despite all of their spin over the last few weeks the P.R. blitz hasn't worked out so well for them. Bush's poll numbers are still in the tank despite their best efforts.

Matt Taibbi gives his views on how Bush will be remembered as well and they discuss his latest article published at Rolling Stone: Bush Apologizes: The Farewell Interview We Wish He'd Give.

Matt Taibbi is one of my favorite guests on Real Time with Bill Maher and he's an equal opportunity abuser at Rolling Stone and on Real Time which probably has a lot to do with why I like him so much. He doesn't pull any punches when it comes to pointing out the follies of our political class regardless of party.

His book The Great Derangement just came out in paperback.

Matt Taibbi reflects on the failed McCain candidacy in perhaps the best and most-entertaining article of the entire political season. Here's a taste.

Rolling Stone:

John McCain and Sarah Palin, after all, represented two completely different approaches to Republican conservatism. McCain comes from the school of politicking that goes after as many votes as possible by waving a flag and saying as little as possible, which is to say he was basically a third-way Democrat with a Goldwater fetish. His basic plan heading into the general election seemed strikingly similar to that of the dipshit vice president character from the uninspiring but weirdly prescient Chris Rock movie Head of State, who ran on a platform of "I've been vice president for the last eight years, I'm a war hero and I'm Sharon Stone's cousin."

McCain's shtick wasn't exactly that, but it was close. He was a war hero who married an heiress to a beer distributorship and had been in the Senate since the Mesozoic Era. His greatest strength as a politician had up until this year been his ability to "reach across the aisle," a quality that in the modern Republican Party was normally about as popular as open bisexuality. His presence atop the ticket this year was evidence of profound anxiety within the party about its chances in the general election. After eight disastrous years of Bush, they thought they had lost the middle — so they picked a middling guy to get it back.

Which made sense, right up until the moment when they stuck him with Pinochet in heels for a running mate. Sarah Palin would have been a brilliant choice as a presidential nominee — and she will be, in 2012, when she leads the inevitable Republican counter-revolution against Obama's presidency. She's a classic divide-and-conquer politician, an unapologetic Witch Hunter and True Believer with a gift for whipping up the mob against the infidel. In a way that even George W. Bush never was, she is Karl Rove's wet dream, the Osama bin Laden of soccer moms, crusading against germs, communism, atheism and other such unclean elements strictly banned by American law.

Seriously...read the whole thing. It's well worth your time.