February 2012 archive

Everything old is new again and the people that should be paying the price for the housing crash are again going to profit from the further pain of the 11 million people left behind by the Foreclosure Fraud Settlement.

Some Wall Street investors made money as the mortgage market boomed; others profited when it fell apart.

Having reaped big gains during both of those turns, Greg Lippmann, a former star trader at Deutsche Bank, is now catching the next upswing: buying the same securities built from mortgages that he bet against before the financial crisis erupted.

Mr. Lippmann is joined by other big-money investors – mutual funds like Fidelity as well as hedge funds – in riding a wave of interest in the same complex loan pools that nearly washed away the financial system.

The attraction is the price. Some mortgage bonds are so cheap that even in the worst forecasts, with home prices falling as much as 10 percent and foreclosures rising, investors say they can still make money. [..]

Yet the tide could turn again and wipe out investors. Chief among the risks is Europe: the Continent’s banks still hold a significant amount of United States mortgage securities, and if they are forced to sell assets, it could wreak havoc on the market.

Washington is a question mark, too. If banks have to pay for loans they issued under dubious circumstances, it would be a home run for investors, who could receive full payment for a mortgage in a security they bought at a discount. But if borrowers whose houses are worth less than their mortgages are able to reduce their principals on a large scale, bond investors could suffer because the securities would be worth even less than they paid. [..]

As for Mr. Lippmann, his reputation has made it both easier and more difficult to get commitments from investors. Some are impressed by his well-publicized bet against the mortgage market; others are turned off by his high profile in an industry known for secrecy and discretion.

LibreMax, made up of several members of Mr. Lippmann’s team from Deutsche Bank, has raised more than $1 billion in a little over a year. His performance has been relatively strong during a period of market turmoil – up 2 percent last year and a little more than 6 percent since launching.

What Yves Smith said:

The Times is quoting Greg Lippmann, the patient zero of subprime? If the SEC investigation of Deutsche Bank were remotely serious, Lippmann would be in serious trouble. What Greg Zuckerman and Michael Lewis have written about them in their books on subprime shorts alone is grist for a good civil suit. And even worse, the headline implies that there is a market for newly issued non-governemnt guaranteed bonds (wrong, that’s dead) when this is about speculation in vintage subprime.

The funniest bit is that the Times is acting as if the fact that Lippmann is talking up the market is a tip of sorts. As one of my buddies pointed out long ago, what you worry about when an investor talks up his book is not that he is trying to get more people in to raise the price, but he is trying to get more people in so he can complete his exit.

History may be repeating itself, again

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

February 19 is the 50th day of the year in the Gregorian calendar. There are 315 days remaining until the end of the year (316 in leap years).

On this day in 1942, U.S. President Franklin D. Roosevelt signs Executive Order 9066, authorizing the removal of any or all people from military areas “as deemed necessary or desirable.” The military in turn defined the entire West Coast, home to the majority of Americans of Japanese ancestry or citizenship, as a military area. By June, more than 110,000 Japanese Americans were relocated to remote internment camps built by the U.S. military in scattered locations around the country. For the next two and a half years, many of these Japanese Americans endured extremely difficult living conditions and poor treatment by their military guards.

The Order

The order authorized the Secretary of War and U.S. armed forces commanders to declare areas of the United States as military areas “from which any or all persons may be excluded,” although it did not name any nationality or ethnic group. It was eventually applied to one-third of the land area of the U.S. (mostly in the West) and was used against those with “Foreign Enemy Ancestry” – Japanese.

The order led to the internment of Japanese Americans or AJAs (Americans of Japanese Ancestry); some 120,000 ethnic Japanese people were held in internment camps for the duration of the war. Of the Japanese interned, 62% were Nisei (American-born, second-generation Japanese American and therefore American citizens) or Sansei (third-generation Japanese American, also American citizens) and the rest were Issei (Japanese immigrants and resident aliens, first-generation Japanese American).

Japanese Americans were by far the most widely affected group, as all persons with Japanese ancestry were removed from the West Coast and southern Arizona. As then California Attorney General Earl Warren put it, “When we are dealing with the Caucasian race we have methods that will test the loyalty of them. But when we deal with the Japanese, we are on an entirely different field.” In Hawaii, where there were 140,000 Americans of Japanese Ancestry (constituting 37% of the population), only selected individuals of heightened perceived risk were interned.

Americans of Italian and German ancestry were also targeted by these restrictions, including internment. 11,000 people of German ancestry were interned, as were 3,000 people of Italian ancestry, along with some Jewish refugees. The Jewish refugees who were interned came from Germany, and the U.S. government didn’t differentiate between ethnic Jews and ethnic Germans (jewish was defined as religious practice). Some of the internees of European descent were interned only briefly, and others were held for several years beyond the end of the war. Like the Japanese internees, these smaller groups had American-born citizens in their numbers, especially among the children. A few members of ethnicities of other Axis countries were interned, but exact numbers are unknown.

Secretary of War Henry L. Stimson was responsible for assisting relocated people with transport, food, shelter, and other accommodations.

Opposition

FBI Director J. Edgar Hoover opposed the internment, not on constitutional grounds, but because he believed that the most likely spies had already been arrested by the FBI shortly after the Japanese surprise attack on Pearl Harbor. First lady Eleanor Roosevelt was also opposed to Executive Order 9066. She spoke privately many times with her husband, but was unsuccessful in convincing him not to sign it

Post World War II

Executive Order 9066 was rescinded by Gerald Ford on February 19, 1976. In 1980, Jimmy Carter signed legislation to create the Commission on Wartime Relocation and Internment of Civilians (CWRIC). The CWRIC was appointed to conduct an official governmental study of Executive Order 9066, related wartime orders, and their impact on Japanese Americans in the West and Alaska Natives in the Pribilof Islands.

In December 1982, the CWRIC issued its findings in Personal Justice Denied, concluding that the incarceration of Japanese Americans had not been justified by military necessity. The report determined that the decision to incarcerate was based on “race prejudice, war hysteria, and a failure of political leadership.” The Commission recommended legislative remedies consisting of an official Government apology and redress payments of $20,000 to each of the survivors; a public education fund was set up to help ensure that this would not happen again (Public Law 100-383).

On August 10, 1988, the Civil Liberties Act of 1988, based on the CWRIC recommendations, was signed into law by Ronald Reagan. On November 21, 1989, George H.W. Bush signed an appropriation bill authorizing payments to be paid out between 1990 and 1998. In 1990, surviving internees began to receive individual redress payments and a letter of apology.

My Application: Head of Public Relations, Goldman Sachs

By Barry Ritholtz

February 13th, 2012, 7:15AM

To: Hiring Committee, Goldman Sachs

From: Barry Ritholtz

Re:  Position, Head of Public Relations, Goldman Sachs

Date: February 13, 2012

(I)t is with great pleasure that I toss my hat into the ring for the position of Director of Communications for Goldman Sachs. Not only do I have the requisite skill set to help rehabilitate the image of the 100+ year old firm – media savvy, legal smarts, netizen, with just a dollop of snark – but I believe I can help you move gracefully into the new century.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

The Sunday Talking Heads:

Up with Chris Hayes: The line up of Sunday’s guests was not available.

The Melissa Harris-Perry Show: MSNBC contributor, author and Tulane Professor Melissa Harris-Perry debuts her weekend program, “Melissa Harris-Perry,” on Saturday, February 18 at 10 a.m. ET. Melissa’s show will be live from 10a-noon ET both Saturday and Sunday after Up With Chris Hayes

This Week with George Stephanopolis: Sen. John McCain (R-AZ) is interviewed by Jake Tapper and, later, former White House press secretary Robert Gibbs. The “This Week” roundtable debates all the week’s politics, with ABC’s George Will, ABC News senior political correspondent Jonathan Karl, FOX Business Network host Lou Dobbs, Vanity Fair contributing editor and former Clinton White House press secretary Dee Dee Myers, and Chicago Tribune columnist Clarence Page.

Face the Nation with Bob Schieffer: Mr. Schieffer’s guests are GOP Presidential candidate Rick Santorum and an interview with Mitt Romney biographer Michael Kranish. The panel guests are CBS News’ Norah O’Donnell and John Dickerson, The Washington Post‘s Karen Tumulty and The Detroit Free Press‘ Todd Spangler.

The Chris Matthews Show: This week’s guests Liz Marlantes, The Christian Science Monitor; Michael Duffy, TIME Magazine Assistant Managing Editor; Major Garrett, National Journal Congressional Correspondent; and Kelly O’Donnell, NBC News Capitol Hill Correspondent.

Meet the Press with David Gregory: the House Budget Committee ranking member Rep. Chris Van Hollen (D-MD) and Chairman Rep. Paul Ryan (R-WI) debate the economy. The roundtable guests are GOP strategist Ed Gillespie, Bloomberg‘s Al Hunt, The NY Times‘ Helene Cooper, and NBC’s Andrea Mitchell.

State of the Union with Candy Crowley: Presidential candidate Rep. Ron Paul (R-TX) is interviewed by Ms. Crowley. Indiana Governor Mitch Daniels (R), and former GOP Presidential Candidate Michele Bachmann (R-MI) assess the state of the GOP field. Former CIA director Michael Hayden and former ambassador to Egypt and Israel, Ed Walker discuss the turmoil in the Middle East.

 Palestinian’s Trial Shines Light on Military Justice

 

    By ISABEL KERSHNER

NABI SALEH, West Bank – A year ago, Islam Dar Ayyoub was a sociable ninth grader and a good student, according to his father, Saleh, a Palestinian laborer in this small village near Ramallah.

Then, one night in January 2011, about 20 Israeli soldiers surrounded the dilapidated Dar Ayyoub home and pounded vigorously on the door. Islam, who was 14 at the time, said he thought they had come for his older brother. Instead, they had come for him. He was blindfolded, handcuffed and whisked away in a jeep.

Mardi Gras, Carnivale, Shove Tuesday, Fat Tuesday, what ever you call the day before the Christian Lent, it’s all about food, fatty food. Eat, drink and be merry for at midnight you must fast and give up your favorite vice, except on Sunday, for the next forty days, that is if you’re a Christian. We Pagans just raise an eye brow and enjoy the party and the FOOD!

Traditional foods are all rich, fatty and sweet. Gumbo, jambalaya, red beans and rice, catfish, po’ boys to pancakes and beignets are all calorie laden delights that will need 40 days of fasting and exercise to shed the pounds. So to start the party off, here are a few recipes for a hearty gumbo, desert, something to drink and, of course, King Cake. Tradition is the person who discovers the tiny plastic or porcelain baby in his or her slice is branded as the provider of the next cake. In pre-Christian societies whoever found a coin or bean in a special cake was crowned King for the year; afterwards, he was sacrificed to ensure a good harvest – which makes having to pony up for the next cake seem like a mighty good deal.

Chicken and Sausage Jambalaya

This recipe serves 10 but can be cut in half

Ingredients:

   12 ounces applewood-smoked bacon, diced

   1 1/2 pounds smoked fully cooked sausage (such as linguiça), halved lengthwise, cut crosswise into 1/2-inch-thick semi-circles

   1 pound andouille sausages, quartered lengthwise, cut crosswise into 1/2-inch cubes

   1/2 pound tasso or smoked ham (such as Black Forest), cut into 1/2-inch cubes

   1 1/2 pounds onions, chopped (4 to 5 cups)

   2 large celery stalks, chopped

   1 8-to 10-ounce red bell pepper, coarsely chopped

   1 8-to 10-ounce green bell pepper, coarsely chopped

   6 large skinless boneless chicken thighs, cut into 1- to 11/2-inch pieces

   2 tablespoons paprika

   1 tablespoon chopped fresh thyme

   1 tablespoon chili powder

   1/4 teaspoon (or more) cayenne pepper

   3 10-ounce cans diced tomatoes and green chiles

   2 1/2 cups beef broth

   3 cups (19 to 20 ounces) long-grain white rice

   8 green onions, chopped (about 2 cups)

   Chopped fresh Italian parsley

Preparation:

Position rack in bottom third of oven and preheat to 350°F. Cook bacon in very large pot over medium-high heat until brown but not yet crisp, stirring often, 8 to 10 minutes. Add smoked sausage, andouille, and tasso. Sauté until meats start to brown in spots, about 10 minutes. Add onions, celery, and bell peppers. Cook until vegetables begin to soften, stirring occasionally, 10 to 12 minutes. Mix in chicken. Cook until outside of chicken turns white, stirring often, 5 to 6 minutes. Mix in paprika, thyme, chili powder, and 1/4 teaspoon cayenne. Cook 1 minute. Add diced tomatoes with chiles and broth; stir to blend well. Add more cayenne, if desired. Mix in rice.

Bring jambalaya to boil. Cover pot. Place in oven and bake until rice is tender and liquids are absorbed, 45 to 48 minutes. Uncover pot. Mix chopped green onions into jambalaya; sprinkle jambalaya with chopped parsley and serve.

Buttermilk Beignets

This will make 48 beignets

Ingredients:

   3/4 cup whole milk

   1 1/2 cups buttermilk

   4 teaspoons active dry yeast

   2 1/2 tablespoons sugar

   3 1/2 cups bread flour plus extra for flouring work surface

   1/2 teaspoon baking soda

   1/4 teaspoon salt

   Peanut oil for frying

   Confectioners’ sugar for serving, as much as you think you’ll need-then double that!

Preparation:

Heat the milk in a small saucepan over medium-high heat until small bubbles form at the surface. Remove from the heat, add the buttermilk, and then pour into a stand mixer bowl. Whisk in the yeast and the sugar and set aside for 5 minutes. Add the flour, baking soda, and salt, and mix on low speed, using a dough hook, until the dry ingredients are moistened, 3 to 4 minutes. Increase the mixer speed to medium and continue mixing until the dough forms a loose ball and is still quite wet and tacky, 1 to 2 minutes longer. Cover the bowl with plastic wrap and set the dough aside in a draft-free spot for 1 hour.

Pour enough peanut oil into a large pot to fill it to a depth of 3 inches and bring to a temperature of 375°F over medium heat (this will take about 20 minutes). Line a plate with paper towels and set aside.

Lightly flour your work surface and turn the dough out on it. Sprinkle the top of the dough with flour, gently press to flatten, fold it in half, and gently tuck the ends under to create a rough-shaped round. Dust again and roll the dough out into a ½-inch- to ¹/³ inchthick circle. Let the dough rest for 1 minute before using a chef’s knife, a bench knife, or a pizza wheel to cut the dough into 1 1/2-inch squares (you should get about 48).

Gently stretch a beignet lengthwise and carefully drop it into the oil. Add a few beignets (don’t overcrowd them, otherwise the oil will cool down and the beignets will soak up oil and be greasy) and fry until puffed and golden brown, turning them often with a slotted spoon, for 2 to 3 minutes. Transfer to the prepared plate to drain while you cook the rest. Serve while still warm, buried under a mound of confectioners’ sugar, with hot coffee on the side.

Make ahead:

The beignet dough can be made up to 8 hours in advance of frying. Line a baking sheet with parchment paper and spray it with nonstick cooking spray. After cutting the dough, place the beignets on the paper and place another greased sheet of parchment paper, sprayed-side down, on top. Wrap the entire baking sheet with plastic wrap and refrigerate. The beignets can be fried straight from the refrigerator.

King Cake

Ingredients:

For the Cake:

   1/3 cup milk

   1 package active dry yeast

   2 1/2 cups bread flour, plus more for dusting

   2 large egg yolks, plus 2 eggs

   3 tablespoons granulated sugar

   Finely grated zest of 1 lemon

   1 teaspoon salt

   1/2 teaspoon freshly grated nutmeg

   1 1/2 sticks unsalted butter, melted and cooled, plus more for greasing the bowl

For the Filling and Glaze:

   1/2 cup golden raisins

   1/4 cup bourbon

   3/4 cup packed dark brown sugar

   2/3 cup toasted pecans, chopped

   1 teaspoon vanilla extract

   1 teaspoon ground cinnamon

   2 teaspoons grated orange zest

   1/4 teaspoon salt

   1 dry bean or plastic King Cake baby (available at party-supply stores or mardigrasday.com)

   1/2 cup confectioners’ sugar

   Purple, green and gold sanding sugar, for decorating

Directions:

Make the cake: Heat the milk in a saucepan until scalding; transfer to a food processor, add the yeast and pulse to combine. Add 1/2 cup flour and the egg yolks; process to combine. Pour the remaining 2 cups flour evenly over the yeast mixture; do not process. Put the lid on; set aside for 90 minutes.

Add the 2 whole eggs, granulated sugar, lemon zest, salt and nutmeg to the food processor; process to make a slightly textured dough, about 1 minute. With the machine running, slowly add the butter to make a smooth, sticky dough. Transfer the dough to a lightly buttered bowl and cover tightly with plastic wrap; let rise in a warm place for 3 hours. Turn the dough out onto a clean surface and knead briefly; form into a ball and return to the bowl. Cover tightly with plastic wrap and refrigerate for 8 hours or overnight.

Make the filling:

Plump the raisins in the bourbon in a small saucepan over medium heat. Remove from the heat and add the brown sugar, pecans, vanilla, cinnamon, orange zest, salt and the bean or plastic baby; mix until combined and set aside.

On a floured surface, roll the dough into a 20-by-7-inch rectangle, with the long edge facing you. Spoon the filling in an even layer over the dough, leaving a 1-inch border along the top and bottom. Fold the bottom and then the top edge over the filling to make a tight roll; pinch to seal. Transfer the roll seam-side down to a parchment-lined baking sheet; tuck one end into the other to form a ring. Cover loosely with plastic wrap and set aside in a warm place until the roll doubles in size, about 2 hours.

Preheat the oven to 350 degrees. Bake the cake until firm and golden brown, about 40 minutes. Cool on a rack.

Make the glaze:

Mix 3 tablespoons water with the confectioners’ sugar; brush 3 tablespoons glaze over the cake. Sprinkle with bands of colored sugar; drizzle with more glaze.

Hurricane

In the years since Katrina, the only welcome storms in New Orleans are the ones in a glass. Watch out for this fruity, gale-force rum concoction-more than one, and you’ll need to declare yourself a natural disaster.

Because the syrup is hard to come by (and artificially flavored) here is a substitute for it that was well received: a tablespoon of passion fruit sorbet (Häagen Dazs makes one) and a teaspoon of grenadine, per serving.

Ingredients:

   1 ounce light rum

   1 ounce dark rum

   1 tablespoon passion fruit syrup

   Juice of 1/2 lime

   1 teaspoon superfine sugar, or to taste

   Ice cubes

Preparation:

Mix all ingredients except ice in shaker. Stir to dissolve sugar. Add ice cubes, shake well, and strain mixture into a cocktail glass.

 Brave new (digital) world

      “Silent camera” apps are being blamed for a rise in complaints from women about perverts snapping illegal upskirt photos. The National Police Agency says the number of such incidents increased from 1,068 in 2006 to 1,702 in 2010.

   An LDP lawmaker got a surprise when he discovered that someone hacked into his YouTube account and uploaded a Russian-language porn video.

   Meanwhile, a hacker disabled the website of the government committee investigating the disaster at the Fukushima Daiichi nuclear plant.

   Two Japanese companies were fined a total of ¥17 million by the Intellectual Property High Court for broadcasting copyrighted TV programs over the internet.

   An Osaka man became the first person in Japan arrested for breaking a six-month-old law against creating computer viruses.

Welcome to the Stars Hollow Health and Fitness weekly diary. It will publish on Saturday afternoon and be open for discussion about health related issues including diet, exercise, health and health care issues, as well as, tips on what you can do when there is a medical emergency. Also an opportunity to share and exchange your favorite healthy recipes.

Questions are encouraged and I will answer to the best of my ability. If I can’t, I will try to steer you in the right direction. Naturally, I cannot give individual medical advice for personal health issues. I can give you information about medical conditions and the current treatments available.

You can now find past Health and Fitness News diaries here and on the right hand side of the Front Page.

I wanted each of these stews to feature a nutritious vegetable along with the chicken and aromatics. In this way they are truly one-dish, nutrient-dense meals. Though I suggest serving them with rice, other grains or pasta, if carbs are an issue, know that these stews are very satisfying on their own.

Martha Rose Shulman

Keith Olbermann sets the record straight on the false accusations of rapist and rape apologists of Andrew Breitbart.

Transcript: