13 Minutes Could Save Your Retirement

Please watch this. Please pay close attention to the point, which is that the mistakes John McCain made in the Keating Five scandal are the very same mistakes he’s making today. Forget about the mudslinging he’s doing, forget about the nastiness, forget even about Sarah Palin for a minute. Watch this video and listen carefully to this: John McCain exercised poor judgment when he chose to override regulators in favor of Keating (and cost the taxpayers 3.4 billion dollars), and he’s doing it again now.

This is not mud. It’s truth. If John McCain still thinks deregulating markets is the answer, then he really is without a clue. And if he is finally coming around to the idea of regulatory restraints on the markets (which I doubt), it’s highly doubtful that he would support those restraints fully, given his aversion to deregulation and associations with anti-regulation cronies.

Remember this, when you hear the claim that McCain and Palin are straight-talking: Fraud is the creation of trust, and then its betrayal.

Bonus: 30 Lies McCain has told about Obama, debunked.

Keating 5 Explained

KeatingEconomics.com has been launched to explain John McCain’s participation in the Savings and Loan scandals and his deep, deep ties to Charles Keating and S&L lobbyists.

On a personal level, I lived through this. I had clients that were Savings and Loans, whose employees lost everything when they blew up, just like the banks are doing right now.

In my opinion, there is nothing more important than having someone in the office of President who can grasp the complexities of these economic earthquakes and come to some idea of how to resolve them on a long-term basis. McCain is not the one for that job.

In both cases, it is the complete lack of regulation, reporting and disclosure that brought on the crisis. For a thorough explanation, I suggest listening to this podcast to learn more about the current crisis, the bailout, and the consequences of allowing banks, investment banks, and the commercial paper markets to function without any reporting, disclosure, or oversight of any kind.

If pensions were allowed to function this way, no one would retire. Or at least, they wouldn’t retire willingly or with any assets.

Watch for the documentary tomorrow. And let’s all make informed decisions.

Here’s the intro:

Dodd Refines Bailout Rules

Senator Dodd has done a pretty good job of fixing what was wrong with Paulson’s proposal. Here’s the PDF summary, and here’s the PDF text.

High points:


  1. Establishment of an oversight board
  2. Required transparency – specifically, that the program’s details be laid out with policies and procedures
  3. Improved Reporting – Monthly reporting, and detailed financial statements describing specific transactions
  4. GAO Audit
  5. Warrants in exchange for companies selling bad assets
  6. Requirements for rules surrounding potential conflicts of interest (by fund managers involved such as PIMCO)
  7. Establishes parity between banks and money markets for FDIC insured deposits
  8. Requires standards limiting executive compensation for bailed out companies

Homeowner Assistance

  1. Court-Supervised Loan Modifications
  2. FDIC Management of Mortgage Assets
  3. Affordable Housing Funds
  4. Expansion of HOPE to allow more people to qualify

This is definitely more encouraging. I haven’t read the actual text, though, so can’t say whether the key issue of no accountability, etc has been addressed.