PROMISES KEPT

Greenspan's Grand Experiment by Jonathon Spagat

Wednesday, October 29, 2008

Way before the potential for a credit crisis was on anyone’s radar, American investment guru Warren Buffet dubbed derivatives, the complex financial contracts that are claimed to be the culprit of the collapse, “financial weapons of mass destruction.” Felix Rohatyn, a former U.S. ambassador and a central player in the 1975 plan that saved New York City from bankruptcy, described derivatives as potential “hydrogen bombs.”

One economic titan, however, felt differently. And as head of the world’s most influential economic institution, his views carried a lot of weight. I am talking about Alan Greenspan, Chairman of the Federal Reserve from 1987 to 2006. Greenspan had deep affection for deregulation. To him, the powerful financial institutions that (used to) populate Wall Street had a very large interest in ensuring that all of their assets were protected and that they had the resources in place to make sure all the investments they made were sound. While defending derivatives during a hearing in 2003, Greenspan said: “What we have found over the years in the marketplace is that derivatives have been an extraordinarily useful vehicle to transfer risk from those who shouldn’t be taking it to those who are willing to and are capable of doing so.”

In 2000, after years of pushing and shoving, Greenspan persuaded Congress to pass the Commodity Futures Modernization Act, the bill that removed derivatives from the purview of federal oversight. The derivatives market thereafter grew from $100 billion to more than $50 trillion. Although the housing collapse is often cited as the culprit of the current credit crisis, derivatives are what actually made our financial system vulnerable. Originally intended to reduce risk and spread prosperity, derivatives instead magnified the impact of bad mortgages. When homeowners began defaulting on their mortgages, the investment houses did not have enough capital to cover the derivative settlement claims and, as a result, are now in great peril.

In essence, the great debt that the world economy has to now face is the result of an experiment by Greenspan to let the market forces run free. Investment bankers, who collected billions of dollars in bonuses, were selling mortgage securities they thought were safe and derivatives that they thought would never have to be paid off. On the other side of the spectrum were the investors, who were buying credit default swaps that would pay off big when other people’s mortgage investments went south. And with the multitrillion-dollar market in place – no one was there to regulate. No one was keeping track of how many derivatives sold. No one knew who owned them. No one was making sure that the investment houses were setting aside the money needed to pay off their obligations if the mortgages went sour.

On Thursday, while testifying at a Congressional hearing, Greenspan admitted that he had “put too much faith in the self-correcting power of free markets and had failed to anticipate the self-destructive power of wanton mortgage lending.” Hailed three years ago as “the greatest central banker who ever lived,” the retired Chairman’s legacy will likely be quite the opposite: the man who paved the way to a global credit crisis.

Isiah Thomas - From Legend to Loser to whats next?

For the first time I am going to write a story about one man who came from nothing and created greatness and than drastically lost everything and now has nothing.

"Thomas, a 6-1, 185-pound point guard, ranks as one of the best players of all-time. His toughness and competitive fire won many admirers as well as adversaries over the years. He was named to the All-NBA First team three times and is the Pistons' all-time leader in points, steals, games played and assists. Thomas ranks fourth in NBA history in assists (9,061, 9.3 apg) and ranks ninth in NBA history in steals (1,861). Thomas was known for his dribbling ability as well as his uncanny ability to drive to the basket and score. His number 11 was retired by the Detroit Pistons", according to Wiki[edia.

Isiah Thomas was born on April 30, 1961, in one of the poorest neighborhoods in Chicago, Illinois. The youngest of nine brothers and sisters, had had no father figure. His neighborhood was full of gangs, heroine, cocaine, prostitution and poverty. He was a bright young man destined for greatest and to persevere through the heart aches of racism and the civil rights movements. He worked hard and became one of the best high school basketball players in the nation. After high school he played for Bobby Knight's Hoosiers at Indiana University. According to Wikipedia, "In 1981, Thomas led the Hoosiers to the NCAA Tournament National Championship and earned the tournament's Most Outstanding Player award. After accomplishing this in his sophomore season, Thomas made himself eligible for the NBA Draft."

From 1981 to 1994 he led the Detroit Pistons to multiple NBA Championships. In the late 80's he was know as one of the most intelligent, charming, socially responsible Nba professionals. Most kids in Detroit looked up to him as a hero. Both on and off the court he became a legend, creating an image that most people could never imagine. "Thomas, a 6-1, 185-pound point guard, ranks as one of the best players of all-time. His toughness and competitive fire won many admirers as well as adversaries over the years. He was named to the All-NBA First team three times and is the Pistons' all-time leader in points, steals, games played and assists. Thomas ranks fourth in NBA history in assists (9,061, 9.3 apg) and ranks ninth in NBA history in steals (1,861). Thomas was known for his dribbling ability as well as his uncanny ability to drive to the basket and score. His number 11 was retired by the Detroit Pistons. Thomas was voted NBA Finals Most Valuable Player of the in the 1990 NBA Finals after averaging 27.6 points per game, 7.0 assists per game, and 5.2 rebounds per game." He was named one of the 50 Greatest Players in NBA History.

He was a legend.

"In the Eastern Conference Finals of the 1991 NBA Playoffs, the two-time defending champion Detroit Pistons faced the Jordan-led Chicago Bulls for the fourth consecutive season in the playoffs. The Pistons had defeated the Bulls in each of the first three meetings, but this time they suffered a four-game sweep at the hands of Michael Jordan and his Chicago Bulls. The series was marked by a number of verbal, physical, and match-up problems. With 7.9 seconds remaining in the fourth game, Thomas and eight of his teammates walked off the court, refusing to shake hands with the members of the Bulls." The Pistons lost to the Chicago Bulls in the Eastern Conference Finals. With several seconds left to go in the game, Isiah Thomas led his team off the court. When most champions, legends, finally lose, there is always a moment of further sportsmanship when the falling champion recognizes the new one. Usually its a firm handshake and a simple congrats. But, Isiah thomas walked off the court and did not do this. He shunned the new champions. He completely avoided Michael Jordans greatest moment and dissed him completely in front of millions of fans and spectators alike. This moment signifies his fall. This moment was when Isiah created himself as a loser. This point of his career he had the chance to welcome the new winner and to move onto the future as one of the greatest, instead he moved on as one of the greatest losers, unsportsmanlike, rude, mean spirited and not welcome!!!

From legend to loser.

Despite his talent, Many thought Thomas was not a real champion. Champions know sportsmanshp. Thomas was left off the original Olympic Dream Team, possibly as a result of his alleged feud with Michael Jordan and unsportsmanlike conduct. So, Thomas retires in 1994 and soon is offered an Executive job at the Toronto Raptors - Why? His name is still pretty good even though of his poor sportsmanship. But, " In 1998, he left the organization after a dispute with new management over the franchise's direction and his future responsibilities."

Like many, Thomas strated to work with TV as a commentator, however, "Thomas became the owner of the Continental Basketball Association (CBA) from 1998 to 2000. After his purchase of the CBA for $5 million, the league was forced into bankruptcy and folded, after Thomas rejected an offer from the NBA for $11 million to make it an official minor league of the NBA.[5] Many CBA managers blamed Thomas for the league's failure, citing mismanagement and out-of-control spending on his part. Many such managers publicly declared that Thomas ran the league into the ground, possibly on purpose to eliminate the non-NBA-owned minor league in order to make room for the NBA-owned NBDL."

Trying to come back.

"In 2000, Thomas was elected to the Basketball Hall of Fame, in his initial year of eligibility."

"From 2000 to 2003, Thomas coached the Indiana Pacers, succeeding Larry Bird, who previously coached the Pacers to the NBA Eastern Conference title." In 2003, Thomas was the East's All Star coach and consequently was Jordans last year as a All Star. Thomas's critics felt that Jordan was overplayed by thomas because Thomas merely wanted to make up for his lack of sportsmanship - But, instead his professional integrity was on the line and in question. At the end of 2003, "the perception existed that the Pacers' unfulfilled potential stemmed from Isiah Thomas' inexperience as a coach. In the off-season, Larry Bird returned to the Pacers as President of Basketball Operations, and his first act was to replace Thomas with Rick Carlisle."

The Fall

"On December 22, 2003, the New York Knicks hired Thomas as President of Basketball Operations. Thomas was ultimately unsuccessful with the Knicks roster and fanbase. At the end of the 2005-06 season, the Knicks had the highest payroll in the league and the second-worst record."

"Sexual harassment lawsuit

In October 2006, Thomas and Madison Square Garden were sued for sexual harassment by Anucha Browne Sanders. The matter came to trial in September 2007 and Thomas was determined to have made demeaning statements to Sanders, as well as making sexual advances and repeatedly telling her that he was in love with her. [14] Madison Square Garden was ordered to pay Browne Sanders $11.6 million, one of the largest sexual harassment judgments in history."

This same season, " during one game the Knicks became embroiled in a brawl with the Denver Nuggets, which Thomas allegedly instigated by ordering his players to commit a hard foul in the paint.

In 2008, "one night after the Knicks tied a franchise record of 59 losses and ended their season Thomas was "reassigned" from the Knicks and was banned from haveing any contact with and basketball players of personnel.

Racism allegations

"During Thomas's sexual harassment trial, Anucha Browne-Sanders testified that Thomas had told her he did not care about these "fucking white people" or these "fucking season ticket holders." Thomas denied these allegations. After a heated 1987 playoff game against the Boston Celtics, Dennis Rodman said that Larry Bird was overrated because he was white in a league full of mostly black players. In response, Isiah said, "I think Larry is a very, very good basketball player. He's an exceptional talent, but I have to agree with Rodman. If he were black, he'd be just another good guy."

Attempted Suicide?

"On October 24, 2008, Thomas was taken to White Plains Hospital Center near his New York City area home after taking an overdose of Lunesta, a form of sleep medication. According to Harrison, New York police, they were called to Thomas's house, where, finding him unconscious but breathing, they had him transported to the hospital. Police Chief David Hall stated that they "are calling this an accidental overdose of a prescription sleeping pill.” He was released from the hospital later that day. In the opinion of Harrison Police Chief David Hall, Thomas tried to "cover up" the incident by claiming his 17-year old daughter required medical treatment when in actuality he was the patient. Referring to Thomas' 17-year-old daughter, Hall said, "And why they're throwing her under the bus is beyond my ability to understand."

With Isiah Thomas now a bonifies loser, can he turn his life around?

Can he become a great legend?

Can he fix himself like he did as a kid?

Yes, Yes, Yes he can!!!!

by Sammy Averbuch

Rahm Emanuel - My Neighbor

What an amazing pick up by OBama. Here is quick fact-sheet on Congressman Rahm Emanuel, President-Elect Barack Obama’s soon-to-be Chief of Staff. ( I took this from dcrepublican.com)

Background:

Born November 29, 1959 in Chicago, Illinois
Religion: Modern Orthodox Judaism (Attends Anshe Shalom Synagogue)
Family: Wife: Amy Rule; Children: Zacharias, Ilana, and Leah
Colleges: Sarah Lawrence College; Northwestern University
Profession: Congressman, Chicago’s 5th Congressional District
Books Authored: The Plan: Big Ideas for America
Interesting Facts:
Lost a finger following a meat-cutting accident at a Chicago Arby’s where he worked when he was 17.
Volunteered in the Israel Defense Forces during the Gulf War
His brother, Ari Emanuel, is the inspiration behind the character Ari Gold in Entourage. Ari Emanuel represents celebrities like Larry David, Michael Moore, Sacha Baron Cohen and Mark Wahlberg.
Rahm Emanuel’s father, Benjamin Emanuel, was a member of the Irgun, a militant Zionist organization and a key component of the Jewish Resistance Movement in the 1940’s.
Rahm Emanuel’s oldest brother is an oncologist with a PhD in Philosophy and a authority on biomedical ethics (h/t, Carlos)
Former ballet dancer (h/t, Jo)
Political Experience:

First campaign job was working for Paul Simon’s U.S. Senate Campaign in 1984
National Campaign Director for the Democratic Congressional Campaign Committee in 1988
Chief Fundraiser for Chicago political powerhouse, Mayor Richard M. Daley in 1989
Campaign Finance Director for Bill Clinton in 1992
Senior Clinton Advisor, 1993 - 1998
Elected to Congress in 2002 (67% - 29%)
Named Chairman of Democratic Congressional Campaign Committee in 2005
Committee Positions in Congress:

Committee on Ways and Means
Subcommittee on Health
Subcommittee on Select Revenue Measures
Key Quotes:

What is more comforting to the terrorists around the world: the failure to pass the 9/11 legislation because we lacked ‘a majority of the majority,’ or putting aside partisan politics to enact tough new legislation with America’s security foremost in mind?

When it comes to federal elections law, Tom DeLay and his special-interest friends live by one set of rules, and everyone else lives by a very different set.

Sammy Averbuch