TARP, Take It..or Take It
Research for Online Investors

by John Dalt

5/14/09

Judicial Watch released talking point memos for the meeting Treasury Secretary Henry Paulson had with CEO’s of nine major banks on Oct. 13, 2008.  Judicial Watch forced the release of the memo with a Freedom of Information Act lawsuit.  This memo lays out the threats used for the meetings.  “If capital infusion is not appealing, you should be aware your regulator will require it in any circumstance.”  This is described as the “Take it…or take it” memo.  Tim Geithner, then President of the New York Fed, Shelia Blair FDIC Chairman, and Ben Bernanke Chairman of the Federal Reserve were ‘co-hosts’ of the meeting.

The administration did not release Geithner’s written comments and suggested edit’s to the talking points document.  Judicial Watch has an article and the released meeting documents.  "These documents show our government exercising unrestrained power over the private sector. Despite promises of transparency, the Obama administration tried to cover up the very existence of these smoking-gun documents. And the cover-up continues, as the Obama administration protects Timothy Geithner by withholding a key document about his role in this infamous bankers meeting," stated Judicial Watch President Tom Fitton.  The talking points document, with edits is on pages 46, 48, 50 of document #3, all the rest of the documents are email messages.

Foreclosures on U.S. homes jumped 32% in April over one year ago, according to RealtyTrac.  One in 374 homes with mortgages received a foreclosure filing in April.  342,038 properties received a filing last month, temporary freezes on foreclosures ended in March.

The recent run up in crude oil has been perplexing because crude oil inventories are at record levels, not only in the U.S. but also in Europe.  Word out this week is that China has turned its treasury loose buying oil; imports were up 14% in April.  China is buying commodities in anticipation of a recovery, and reducing their exposure to U.S. Treasuries.  China is the world’s second-largest energy-consuming nation.  One of the secrets to China’s economy is cheap energy.  The U.S. places environmental and regulatory costs on energy, China meanwhile exploits any disparity in the market to lower their cost.  The Business Insider has a short article about “China Gobbling up Oil”

Researchers at the University College London published an article in the Lancet today proclaiming, “Global Warming is the Biggest Public Health Threat of the 21st Century”.  They proclaim that global warming will affect generations to come!  Remember, you only get research money if you support global warming.  I am reminded of Michael Crichton’s statement that if global warming was a scientific fact, “just show me the science that proves your theory”.  Not one scientist did, would, or could.  The democrats are rushing down a do-gooders and world improvers dream, control over our lives to save us from ourselves.  This is better than a war, nobody dies and you cannot lose.  Just look at the war on poverty, there are more poor people today than in 1960, we have destroyed a generation of minorities and made them dependent on government.  There is more propaganda available on the Business Insider about global warming.

No MarketToday letter tomorrow.  I will not be if the office, as our oldest daughter is graduating, Magna Cum Laude in business, from our state university.  We are proud of her, and must enjoy the weekend with her and friends.  I will be back on Monday.

“Till a man can judge whether they be truths or not, his understanding is but little improved, and thus men of much reading, though greatly learned, but may be little knowing.”

--John Locke

Did he know Al Gore? Probably not, since he died in 1704  Gore is not ‘greatly learned’, just a pol.

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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