That Giant Sucking Sound

by Larry Levin

The House of Representatives is meeting tomorrow to pass the Wall Street/global bank handout bill, also known as TARP (Troubled Asset Relief Program). As I said yesterday, it was a done deal on day #1 and the prior House defeat of the bill was just a dog and pony show for those members on the reelection bubble. Now that the Senate has passed its pork filled version of the bill, currently at $850-billion, the House is making excuses to join the Senate. Can you hear that giant sucking sound? It's the money in your wallet being sucked out to fund the fat cats and foreign investors.

Yesterday's quote of Rep. Sherman can be found here - http://uk.youtube.com/watch?v=ONUSxiGN4m4

Below you will find even more of the Senate's pork, which is apparently called earmark extenders today.

New Tax earmarks in Bailout bill
- Film and Television Productions (Sec. 502)
- Wooden Arrows designed for use by children (Sec. 503)
- 6 page package of earmarks for litigants in the 1989 Exxon Valdez incident, Alaska (Sec. 504)

Tax earmark "extenders" in the bailout bill.
- Virgin Island and Puerto Rican Rum (Section 308)
- American Samoa (Sec. 309)
- Mine Rescue Teams (Sec. 310)
- Mine Safety Equipment (Sec. 311)
- Domestic Production Activities in Puerto Rico (Sec. 312)
- Indian Tribes (Sec. 314, 315)
- Railroads (Sec. 316)
- Auto Racing Tracks (317)
- District of Columbia (Sec. 322)
- Wool Research (Sec. 325)

I love the auto racing tracks pork in particular. I can see the headlines now: Global financial markets melt down, NASCAR, Caribbean rum hardest hit! As many people have said now, I'd be more inclined to take this crisis seriously if people on the Hill didn't use it to butter up their favored constituencies.

So get ready for the House to sell you down the river tomorrow. Your tax dollars will be used to fund; Wall Street largesse, deadbeats, mental health, Rum Runners, Hollywood, wooden arrow manufacturing, wool research, Exxon Valdez payouts, NASCAR, and especially FOREIGN INVESTORS AND BANKS.

Ben Dover - here it comes! Do you think you'll have a cigarette when the deed is done?

I love the price tag quote so much; I just have to reprint it today. A Treasury spokeswoman told Forbes.com Tuesday - It's not based on any particular data point. We just wanted to choose a really large number.

Ah yes, that's your government in action; making it up as they go along. Not the foreign bank bailout, however, that was decided a long time ago.

Real Time Trading Signals*for

Trade Date: 10/2/08

E-Mini S&P Trades*
(before fees and commissions):

1) PP buy @ 8:35am at 1150.50 = -1.75 (1 lot)

2) OTF sell @ 10:40am at 1136.75 = +2.75 (1 lot)

3) TP buy @ 12:15pm at 1127.50 = +2.25 (1 lot)

4) Algorithm positions (6)...combined total...-4.50

ZB (30 Year Bond) Trades*
(before fees and commissions):

1) No ZB trades today.


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