home / subscribe / donate / tower / books / archives / search / links / feedback / events / faq

Exclusive to CounterPunch Newsletter Subscribers! How Bill (and Monica) Saved Hillary from a Federal Indictment Here's the second in Alexander Cockburn and Jeffrey St. Clair's series as they describe Hillary Clinton's years in Little Rock and her narrow escape from federal charges that would have destroyed her political career for ever. PLUS KEVIN ALEXANDER GRAY on how Hillary Clinton, Barack Obama and John Edwards are failing Black America even as they hunt for votes in So uth Carolina's "Black Primary." Get your copy today by subscribing online or calling 1-800-840-3683 Remember contributions to CounterPunch are tax-deductible. Click here to make a donation. If you find our site useful please: Subscribe Now Order CounterPunch By Email for Only $35 a Year and Receive a Free Copy of "Imperial Crusades: a Diary of Three Wars" by Cockburn and St. Clair

Today's Stories August 25 / 26, 2007 Alexander Cockburn Don't Carpool with Nouri al-Maliki August 24, 2007 Paul Craig Roberts A Hegemonic Hubris Greg Moses A Cruel and Unusual Excuse William Schroder Bush, Vietnam and Iraq Alan Farago The Pain of Paper Millionaires Jackie Corr Uncle Ben Bernacke and the Nanny State Jeff Ballinger Naomi Klein and the Path Not Taken Bill Quigley Pere Jean-Juste Comes Home Dave Zirin Inching Toward Insanity Richard Rhames Deaver and the Making of Reagan Ryan Haygood How Newark Can Mend Website of the Day Lindorff's Iraq Rag   August 23, 2007 Kathy Kelly We Shouldn't be Causing This P. Sainath Meeting the Mahatma Ron Jacobs Bush, Vietnam and 14 More GIs Dead Christopher Brauchli Beyond Kafka: Mistakes, Soreheads and Eavesdropping D.K. Wilson When Sports Journalists Talk Race Joshua Frank The Weeds of Willapa Bay Dan Bacher Schwarzenegger's True Lies About Dams and Canals Brenda Norrell Bush's House of Snakes: Indians, Border Biometrics and Migrating Corporations John Wright The Ongoing Tragedy of Afghanistan David Vest Elvis and Racism, Round 2 Website of the Day Urgent Plea: the Black Agenda Report Needs Your Help!   August 22, 2007 Norman Finkelstein Remembering Raul Hilberg Marc Levy Sleepless in Iraq Lawrence R. Velvel When Courts Bow Down to Secrecy Ray McGovern Bush's Iran War Drums Beating Louder Norman Solomon How to Survive at the Pentagon on $2 Billion a Day John Walsh Abe Foxman's Genocide Denial Road Show Michael Dickinson Little Brother is Watching You William S. Lind Operation Kabuki?: the Credibility of David Petraeus Bill Hatch A Short Walk into the Valley of Death Kenneth E. Foster and John Joe Amador How We Will Protest Our Executions David Vest Predictable Parallels: CNN and PBS Website of the Day The Once and Future Steve Perry August 21, 2007 Saul Landau The FBI's New Power Alan Farago Sand Houses and Missing Beaches John Stauber Iraq: the Gift that Keeps on Bleeding Phillip Rizk Gaza and the Jordanian Option Debbie Nathan Giuliani's Garden District Binoy Kampmark The Art of Sinning Martha Rosenberg The Fastow Economy Sunsara Taylor Back to School During Wartime Website of the Day Coffee with the Troops   August 20, 2007 Paul Craig Roberts Padilla Jury Opens Pandora's Box Uri Avnery Stumbling Toward Another War Rannie Amiri Nasrallah's Surprise: a Warning from Beirut's No Bluff Zone John Ross The Fine Art of Bad Elections Harvey Wasserman The Senate's Radioactive Rip-Off Robert Billyard Canada's Disgrace: the Cases of Maher Arar and Omar Khadr Dave Lindorff Excuse Us, Nancy Pelosi James Rothenberg Why Your Vote Will Never Matter David "DC" Larson To Smear a King Website of the Day Bird Cinema August 18 / 19, 2007 Alexander Cockburn Exit Karl Rove, Everyone's Useful Demon Saul Landau The FBI in War and Peace Ralph Nader Greed and Folly on Wall Street Patrick Cockburn A Bloody Week in Iraq Robert Fantina Cannon Fodder: Beau Biden and other "Deployable Assets" Robert S. Eshelman Azar's Story: an Iraqi Refugee Living in Syria P. Sainath The Last Battle of Laxmi Panda Dave Lindorff Tossing Fuel on a Fire: US Military Aid to Israel Anthony DiMaggio Iraq, Iran & the Vanishing Context in American News Fred Gardner The Politics of Schizophrenia Ron Jacobs The Virtues of Resistance Tom Turnipseed War Profiteering and Corruption: From Lexington, S.C. to the White House Paul Krassner Assholes of the Week: Special Preachers, Priests and Clerics Edition! Ben Tripp I'm So Screwed Andrew Wimmer Living With Grief Nancy Oden Where Inmates Can Grow for Free N.D. Jayaprakash India Backtracks on Disarmament Rick Smith Reflections on Cuba: an Interview with Doug Morris Missy Beattie The Suicide Bomber Poets' Basement Engel, Ford, Orloski and McLellan Website of the Weekend Imperial Storm Troopers in Action August 17, 2007 Joanne Mariner Terrorizing Social Protest Paul Craig Roberts China is not the Problem Shepherd Bliss Returning to the Scene of the Crime: Chile, 30 Years Later Dave Lindorff Convicting Padilla: Bad News for All Americans John Muthyala The Water and the Road: Katrina, Poverty and the American Dream Patrick Cockburn Deepening Divsions in Iraq Sherwood Ross Military Interrogators are Posing as Lawyers at Gitmo Phil Doe The Old West Moves East: the Political Science of Colorado River Water David Michael Green Karl Rove and the Damage Done Website of the Day Gorilla Slaughter: a Personal Account August 16, 2007 Jonathan Cook The Second Lebanon War, a Year Later Christopher Brauchli Babes in Toxic Toyland Norman Solomon Backspin for War Lee Sustar / Orlando Sepuldeva Victory on the Picket Line: How Immigrant Workers Won Their Strike Against Cygnus George Bisharat Boycott Movement Targets Israel Binoy Kampmark Tasteless: Gordon Ramsey and the Death of Gastronomy Evelyn Pringle Protection Racket?: the FDA and Avandia Hugo Blanco The Epic Struggle of Indigenous Andean / Amazonian Website of the Day Burning Man: the Field Recordings   August 15, 2007 Paul Craig Roberts "No American President Can Stand Up to Israel" Michael Neumann In Memoriam: Raul Hilberg Jordan Flaherty The Struggle to Free the Jena Six Sonja Karkar Can You Hear the Cries from Gaza? Felice Pace NPR Watch: Will Linda Gradstein Go to Gaza? Joshua Frank On Censoring Pearl Jam Dave Lindorff Terrorist Nation? Carla Blank Elvis Presley: King or Apprentice? David Vest Guralnick, Elvis and Racism Harvey Wasserman Why the Neocons Won't Miss Karl Rove Peter Rost, M.D. FDA Approved Drug Makes You Hypersexual and a Compulsive Gambler Russell Mokhiber An Arab American's Pocket Political Dictionary Website of the Day Stoners Busted   August 14, 2007 Paul de Rooij Humanitarian Wars and Associated Delusions Winslow T. Wheeler Congress's Busted September: Disingenuous Gestures Amid Catastrophe David Rosen The Case of Genarlow Wilson: Racism, Justice and Age-of-Consent Laws in America Gary Leupp Bush Warns Puppets Not to Praise Iran Clifton Ross Latin America at the Crossroads Muhammad Idress Ahmad The Politics of Democracy Promotion Jacquelyn Godin A Circle of Poison: Pesticides in the Plantations Uri Avnery Oslo Revisited Ramzy Baroud A Palestinian Miracle at the UN? James McEnteer Philistines as Cultural Critics Website of the Day When Cheney Called Iraq a Quagmire   August 13, 2007 Jeremy Scahill The Mercenary Revolution F. William Engdahl The Hidden Agenda Behind Bush's Biofuel Plan Alexander Cockburn The Veldt Will Never Be the Same Kathy Kelly Iraq's Refugees: "et to Work" Chris Floyd No Light, Light Tunnel: the Bipartisan Guarantee of More War in Iraq Paul Craig Roberts Hegemony of the Cockroach William Blum First Pullout, Then Bloodbath? Kenneth Couesbouc The Language of Dominion Rannie Amiri Tancredo's Screedo: a Lethal Mix of Ignorance and Insanity Brenda Norrell Priests Expose Secret Cycle of US Torture Fran Shor All Fall Down Ron Jacobs Dr. Strangelove Meets Dubya's Double Buzz Twofer Website of the Day The Beauty of Defiance   August 11 / 12, 2007 Alexander Cockburn How the Democrats Blew It in Only 8 Months Stan Goff The Cover-Up of Pat Tillman's Death Ralph Nader GM Radio: Payola to Rightwing Talk Shows? Vijay Prashad Destination Darfur: a New Cold War for Oil Greg Moses SubPrime People: Behind the Banking Crisis Alan Farago The Cratering Mortgage Market, WCI Communities and Amb. Al Hoffman Patrick Cockburn The Cracks in Saddam's Dam Ben Tripp On Fleeing the Country Robert Fantina Romney's Dance: The Rightwing Flip-Flop John Ross The Guelaguetza Strategy in Oaxaca Seth Sandronsky Organizing Nurses Paul Krassner Assholes of the Week: From Mitt Romney to Bill Richardson Website of the Weekend Pearl Jam: Censored by ATT   August 10, 2007 Paul Craig Roberts China's Threat to the Dollar is Real Stan Goff How Pat Tillman Died Marjorie Cohn A Blank Check for Domestic Spying Saul Landau In the Age of Immigrant Panic Chris Floyd Goading Xerxes: the Coming Strike on Iran Daniel Ellsberg A Vision for Cindy Sheehan's Campaign Anthony Papa The Upside Down Flag: a Country in Distress Farzana Versey On the Heels of Sir Salman Sgt. Kevin Benderman Freedom or Totalitarianism? Nuri Nuri Memories of T99 Nelson Website of the Day Lessons in Obfuscation from Sen. Larry Craig: How to Talk About Looting the Public Domain   August 9, 2007 Stan Goff The Fog of Fame: Pat Tillman as Everyone's Political Football Paul Craig Roberts In the Hole to China Alan Farago The Terror of the Mortgage Pools William S. Lind The Surge's New Math: One Step Forward, Two Back Doug Giebel Letter from Montana: What the Bushvolk Have Done to America Harvey Wasserman Radioactive Bailout in Advance Jacob Hill The Tail End of Free Trade: NAFTA's Impact on the Manufacturing Sector Raul Zibechi The Dark Side of Agrofuels Dave Zirin The Making of Barry bin Laden Website of the Day "Babies Just Come with the Scenery"   August 8, 2007 Andy Worthington Backing Up Lt. Col. Abraham on Gitmo Abuse Jeff Halper The Catch in Israel's "Generous Offers" at Jericho Greg Moses No Light in August for Texas Refugees: Judge Orders Baby Sent to Palestine Nurit Peled-Elhanan The Murder of Abir Aramin, 9 Years Old Sukant Chandan British Prisons as Islamic Universities Robert Fisk A Lebanese Surprise George H. Strauss The Military Society D.K. Wilson Bonds, the Haters and 756: Why Bob Costas Can't be Trusted Bill Day Leonardo DiCaprio's Baggage: the Perils of Celebrity Environmentalism Tim Campbell Monkey See, Monkey Do Politics Website of the Day Periodic Table of Visualization Methods   August 7, 2007 Patrick Cockburn Why the Surge Has Failed Andy Worthington Why Do We Need the Democrats?: They Have Failed to Restrain Bush on Gitmo, Iraq and Domestic Spying Kathy Kelly The Little Girl of Hiroshima Stan Cox The Antiwar Majority: Look Quickly, You Might Miss It Sonja Karkar Israel's Settlement Project Sen. Russ Feingold A License to Wiretap--Anyone Alan Farago Dancing in the Light of Florida Norman Solomon Let Us Now Praise an Infamous Woman Binoy Kampmark Giving Good Face: What Jeremy Bentham and Facebook Have in Common Dave Lindorff The Gelding Congress John Stauber Coffee with the Troops at Yearly Kos Website of the Day George Carlin on Education August 6, 2007 Bill Quigley Fighting for the Right to Learn in New Orleans Kathy Rentenbach Guatemalan Gold, Guatemalan Bones Uri Avnery White Elephants: Bush's Middle East Arms Deals Col. Dan Smith Of Time and Iraq Ralph Nader Cruise Ship Blues James Neshewat War? What War?: a Report from the New SDS Confab in Detroit D.K. Wilson Barry, Bud and 755 Greg Moses Safe Passage for Willie Nelson Fidel Castro Hard and Obvious Realities Mike Whitney Judgment Week on Wall Street   August 4 / 5, 2007 Alexander Cockburn Rupert Murdoch and the Luck of the Bancrofts Peter Linebaugh Speaking in Irish Tongues Saul Landau Faith-Based War Alan Farago The Candidates and the Collapsing Economy Dave Zirin When Domes Attack: Even in Minnesota Barucha Calamity Peller Oaxaca is Not Over Anthony DiMaggio Double Standards in U.S. Aid to the Middle East Dave Lindorff Spy Power: Bush Demands, Democrats Deliver--Again and Again and Again Fred Gardner Write Off Your Congressman Nicola Nasser The Iranian Option Benjamin Dangl Privatizing Repression in Paraguay Rannie Amiri Bribe, Divide and Conquer Daniel Gross CSR on Trial: Starbucks Behind the Brand Sherwood Ross Obama Renounces Use of Nuclear Weapons Manuel Garcia, Jr A Bridge Truth Movement?: From 9/11 to Minneapolis Missy Beattie The First Mannequin and the "Crime Scene" Ron Jacobs The Outlaw Trip to Mexico: Goin' Down the Road Feelin' Bad Website of the Weekend Photos: Texas Immigrant Prison   August 3, 2007 Gabriel Matthew Schivone An Interview with Noam Chomsky on Responsibility, War Guilt and Intellectuals Jonathan Cook Israel's Jewish Problem in Tehran Patrick Cockburn Sunnis Walk Out of Iraq Government Little Steven Van Zandt Die, Greedy Swine! Die! Die!: How the Record Companies are Killing Rock Music Christopher Brauchli Bush Makes Putin Look Like James Madison D. K. Wilson Two Sides and a Middle: Michael Vick Ain't the One to Ask Linda Ford and Ira Glunts Maxwell's Silver Hammer: Syracuse University Enlists in the Global War on Terror Kelly Overton The Casualties of Green Scare: the Feds' War on the Animal Rights Mvt. Monica Benderman In Freedom's Name Manuel Garcia, Jr. Minneapolis Bridge Collapse: Was Cheney at the Scene? Website of the Day A Cinematic Look at the Police State in Action   August 2, 2007 Paul Craig Roberts The Return of the Robber Barons Stanley Heller Report from the Land of Apartheid Eric Ruder Fighting PTSD; Fighting the Army Robert Fantina Still Getting It Wrong: the NYT and Iraq Alan Farago The Toxic Mortgage Waste Crisis Chris Floyd Chertoff, Chiquita and Death Squads Franklin Lamb Lebanon's Crucial Special Elections Sen. Russ Feingold Closing the Book on the Abramoff Era Anthony Papa Drug Treatment isn't a Silver Bullet Norman Solomon The Big Guns of August Website of the Day Louie, Louie Video Contest   August 1, 2007 Debbie Nathan More Secret Payments by Former NYT Reporter to Web Porn Star Surface in Nashville Courtroom Fred Gardner Ciao, Michelangelo Gary Leupp Why Iraq's Best-Loved Athlete Can't Go Home David Rosen America's Top 10 Political Sex Scandals Winston Warfield Is the Tillman Case Still a Coverup? Daniel McBride Lessons from Bomber Harris: If the US Strikes Pakistan Glen Ford The Corporate Plan to Crush Black Resistance Thomas P. Healy The Toxic Career of Indiana's Environmental Commissioner John V. Whitbeck The Five Percent Solution David Krieger Nuclear Weapons and the University of California Website of the Day The Tragic Story of Hisham Mohammed   July 31, 2007 Kathy Kelly Dancing in the Darkness: the Story of Abu Mahmoud Clancy Sigal The Ghosts of Passchendaele Paul Krassner Assholes of the Week: From Baby Doll to Cheney Joe DeRaymond Return to the Republic of Death? Diane Christian "Winning": What Bush Could Learn from the Shade of Achilles Chris Floyd Good News is No News: Why the Bush Adm. Buries Accounts of Extremist Recantations Ramzy Baroud Bush's Real Agenda in Palestine Alan Farago Battle for the Soul of Florida Fidel Castro In Spite of Everything: Reflections on the Pan American Games Dan Bacher The Fish Terminator: Schwarzenegger's Campaign to Build the Delta Canal and More Dams   July 30, 2007 Marjorie Cohn: Independent Counsel Time Patrick Cockburn Four Million Iraqis on the Run Peter Quinn Irish in America Uri Avnery A Warning to Tony Blair John Ross Zapatista Intergalatica Lands on Earth Ron Jacobs Free the San Francisco 8 David Vest Farewell, Old Friend: Another Legend of the Blues is Gone Jeffrey St. Clair T99 Nelson: Seduced by a Legend of the Blues Website of the Day Collateral Repair Project   July 28 / 29, 2007 Alexander Cockburn Now the NYT is Selling "Bloodbath" as a Rationale to Stay in Iraq Ralph Nader Rotten Justice Robert Fantina American Lies and Iraqi Nationalism Fred Gardner Prohibitionists Attack, Reformers Fundraise   July 27, 2007 John Ross Bombing Pemex--or Not? Arthur Neslen Gaza was a Gas for Blair Dave Lindorff Declaring the US a Battlefield: Martial Law is Now a Real Threat Julene Blair The Environmentalist Within Christopher Brauchli Bush Uses Children as Shock Troops in His War on Socialized Medicine Jesse Hagopian Fund the Wounded, Not the War Charles Modiano Manufacturing a Villain: Sports Illustrated's Vilification of Barry Bonds Bill Day The Hollow Environmentalism of Leonardo DiCaprio Walter Brasch Leaders Afraid to Lead M.D. Mitchell Farm Based Camps Website of the Day Fighting Sarcoma   July 26, 2007 Kathleen Christison The Siren Song of Elliot Abrams Andy Worthington Why the Pentagon's Gitmo Study is a Joke Clancy Chassay How the Bush White House Seeks to Destroy Lebanon Marjorie Cohn Showdown Over Executive Privilege Susie Day Apartheid Americana David Price Tour de Witch Hunt: Drugs, Diaries and Purges Marie Trigona Argentina's "Dirty War" Crimes Trial: The Torturer Priest Norman Solomon Media Spin on Iraq: We're Leaving (Sort Of) William S. Lind How to Win in Iraq Natsu Saito Ward Churchill and the Regents at the University of Colorado John Stauber Netroots and the Iraq War: Does Ending It Matter to Them Anymore? Website of the Day Sticking It to the Man   July 25, 2007 Andy Worthington Gains and Losses at Gitmo Gary Leupp Bush Speechwriter, Michael Gerson, Calls for Attack on Syria Ray McGovern The Sad Decline of John Conyers Dr. Susan Block Bonobo Bashing in the New Yorker Joshua Frank Hillary's Neocon: the Imperial Vision of Richard Holbrooke Tina Richards What Harry Reid Doesn't Know About His Own Bill Ben Terrall Indonesia's Bloody Brand of CounterTerrorism Farzana Versey God Acquitted!: Lessons from the Case of Darwood Ibrahim Mohammad Ali Salih A Bomb in My Briefcase? Laura Carlsen A Strange Homecoming: Reflections on the First US Social Forum Ron Jacobs Come to Kennebunkport! Sunsara Taylor Knocked Up is F**ked Up Website of the Day Wal-Mart's Flip Flops: Feet Killers July 24, 2007 Saul Landau How to Walk in Bushtime Kathy Kelly The Plight of Iraqi Refugees in Jordan Russell Mokhiber The Michael Vick / George Bush Thing M. Shahid Alam Islam Now, China Then Patrick Cockburn and Anne Penketh Meeting in Baghdad Dave Lindorff Overcoming John Conyers Binoy Kampmark You Tube You Can't: Failure of a Medium Richard Neville Murdoch's Transplant: a Warning to the Wall Street Journal Cindy Sheehan We Must Move Beyond Politics as Usual Evelyn Pringle Anti-Depressants and Birth Defects: Why is the CDC Downplaying the Risks? Norman Solomon Media Corrections We'd Like to See CP Newswire Reading Harry Potter Not Sinful Website of the Day Sea Islands Black Heritage Festival   July 23, 2007 Andy Worthington Narcolepsy on Gitmo Detainees Uri Avnery A Trap for Fools Patrick Cockburn Turkish Prime Minister Threatens to Invade Northern Iraq Sousan Hammad The Children Without a Title John Walsh Todd Gitlin's Nader Fixation Harvey Wasserman Spinning Kashiwazaki: PR Flacks Rush to Aid of Crippled Nuke Martha Rosenberg The Life and Times of a Hog-Hanging Farmer Collin Baber Here Come the MRAPs: Resurrecting Apartheid Armor for Iraq Reza Fiyouzat Iran's Forgotten Anti-Nuke Movement Stephen Lendman Saving a President: Scare-Mongering and Executive Orders Website of the Day The Port Huron Project   July 21 / 22, 2007 Alexander Cockburn Giuliani and the Dogs of War Werther How to Read a National Intelligence Estimate Ralph Nader Atomic Blowback David Keen Buy Hard: How to Sell an Endless War Fred Gardner Karl Rove, Pothead: When Good Drugs Happen to Bad People Gary Leupp Edelman's Edict: Is Hillary "Reinforcing Enemy Propaganda?" Robert Fantina Fear in Iraq Saker The Future of Palestine: an Interview with Jonathan Cook Rannie Amiri Nasrallah in the Crosshairs: How will the Third Lebanon War Start? Mike Whitney The Crisis in Hedgistan Dr. Susan Rosenthal, MD The Hidden Injuries of Powerlessness: Linking Alienation and Dissociation Monica Benderman Facing the Truth Dan Bacher Deltagate: the Politics of Fish Kills Michael Baney Fujimori's Long Race From Justice Missy Beattie Here, There and Everywhere Ron Jacobs Tremble, Tyrants Adam Engel Radical Language: an Introduction Thomas Naylor California Split: an Open Letter to Schwarzenegger Poets' Basement Landau, Ford and Engel Website of the Weekend Surge in Action   July 20, 2007 Eliza Szabo Fatal Neglect: Civilian Casualties in Afghanistan Pam Martens Doctoring the News: CNN's Sanjay Gupta, Laura Bush and Merck Alan Farago Winners and Losers in the Housing Market Crash Harvey Wasserman Lies and Leaks: The Earthquake That Screamed "No Nukes!" Marjorie Cohn Iraqis will be the Deciders Dave Zirin White Noise and the Black Athlete Anthony DiMaggio American Public Opinion and Israel Scott Liebertz Oaxaca on Edge Linn Washington, Jr. British Cops Assault Rape Allegations Bill Piper / Anthony Papa Flying High?: The Political Junkets of Bush's Drug Czar Ramzy Baroud Bush's War Policy: When Time Heals Nothing Website of the Day The Prankster Art of Mark Jenkins       Subscribe Online

Weekend Edition August 25 / 26, 2007 Who's Got a Turd in His Briefcase? The Great Financial Crisis By JAMES PETRAS All the major financial analysts claim the ongoing and deepening financial crisis is in large part the result of investor uncertainty. This is because the investment banks, derivatives and hedge funds placed high risk, sub-prime mortgages and junk bonds, along with other more reliable debt paper into packages and sold them to institutional and private bankers who in turn 'retailed' them around the world. The rating agencies, who are paid by the sellers, all gave top billing (AA, AAA) to these hybrid securities, mortgages and junk bonds, encouraging investment advisers to push them on to risk-averse client looking for higher returns than Treasury notes. Most of the investors do not know whose and what paper they are holding, nor how much their hedge funds are losing or have lost. Those who can, have pulled out. The banks are reticent to loan to any applicant. Leverage funds are a dirty word among lenders. Hedge funds are either selling assets to pay loans or not telling what they own or owe. Derivatives have been deflowered. Central Banks in the US, Japan and the European Union have poured (and keep pouring) over $250 billion to the private banks hoping to create liquidity but the banks won't lend--because, as one prominent banker in Palm Springs told me "Nobody knows who's got a turd (worthless investments) in his brief case." Meanwhile, Goldman Sach, Bear Stearns and Lehman Brothers are all closing down bankrupt investment funds or trying to prop them up. The Fed props up all the worst speculators in the name of 'saving the financial system' - in a way that it would never prop up the failing American health system. The financial system has the 'runs' and infusions of Fed funds have failed to block the 'run for cover'. "Everybody for himselfand don't look back', is the watchword of leading equity bankers. The Democrats are calling for the usual inconsequential Congressional hearings about what went wrong. Congressmen Levin and Barney Frank will ask the wrong questions to the wrong people--going after the weakest fall guys--the rating agencies--for overrating the fraudulent deals, not the dealmakers themselves. The 'turds' in the briefcases are big and smelly but no one knows how big: $250 billion or $500 billion. There are a lot of bankers and hedge fund billionaires walking around with invisible clothespins on their noses. Where is Greenspan, since he started the whole scam with his low interest, deregulated financial markets? The homely hero of all hedge-derivatives-innovative financial scamsters sanctioned, approved and promoted the pyramid swindles. He's off advising Deutsch Bank and suckering the international bankers for $100,000 fees for his failed financial recipes. But for those speculators who made a bundle and left, Greenspan is not part of the emerging turd culture. For them he is still the financial genius who made their fortunes. So unless the fund directors come clean, empty their brief cases and open their balance sheets we won't know who are carrying the turds: The great unknowns include the unredeemable bonds, the worthless mortgages and the illiquid hedge funds. Without knowledge of the size and scope of the turds, the great uncertainty has frozen most investments and loans--it is paralyzing the financial system. Even Fannie Mae and Freddie Mac (the federally-funded mortgage companies) can't come in and buy up the 'turds' (otherwise known as 'bad debts'), no matter how many hundreds of billions of US taxpayers' money they are willing to spend. All the financial wizards, the super-smart scientific, mathematical, guaranteed 30% per year investment advisers have less credibility than a street corner con man. The most arrogant, pretentious, scientific speculators have been humbled; especially those oracles who practiced what is call among the insiders as 'Quantitative investment'. Quantitative investing (QI), the use of complex computer models in making investment decisions, was used and promoted by some of the reputedly smartest and highest regarded 'gurus' of Wall Street. For a decade the complex mathematical modeling produced extraordinary profits for Renaissance funds, Goldman Sachs and numerous other asset managers and hedge funds. With the massive sell-offs of assets to pay debts and the desperate drive for liquidity, all the assumptions of the QI went out the window. "The Model" cannot account for any crisis which calls into question 'historical trends'. The best and the brightest are baffled. At first, the QI geniuses said the crisis was a localized problem for the sub-prime bottom-dwelling speculators. But as their own funds dropped they blamed hysterical investors who over-reacted. "A problem of perceptions", they psychologized. But their funds continued to decline: the Market wasn't acting as their 'model' dictated. Hearsay flourished, skeptics surged. "What's the problem: The Market or the Model?", one QI practitioner asked his colleagues. The answer from the Market: "It's the model stupid: All the QI use historical models that extrapolated past patterns into the future as if capitalism is a crisis-free system which changed incrementally and in which investors borrowed rationally to leverage purchases in line with their capacity to pay back any losses. That's Main-Street folklore for retail brokers and the daily fare of American Enterprise ideologues." Scientific mathematical modeling in the Great Casino predictably turned out to be as fallible as numerology spun by Shamans to explain the life cycle. No one's going out of the window of the upper stories of high rise offices--yet. What's keeping the suicide rate down is precisely what's keeping investors running: no one knows how many hundreds of billions in worthless paper is being held. With the demise of the mathematical modeling speculative science, we are now in the period of the Mystical Black Hole. The big investment houses and hedge funds are holding back on revelations, hoping that investment confidence will return if investors are kept in the dark about how much they lost. This is a step below Voodoo Economics. How can investor confidence return if they don't know if the big turds are in the briefcase of the Renaissance Funds, Goldman Sachs, First Quadrant or any one or all of a thousand and one Ali Baba hedge funds? Let them lose their pants, writes orthodox Market pundits like Marty Wolf in the Financial Times. "In order to value risk, they should lose properly. To bail them out", they argue, "is a moral hazard." Meaning of course, that if the hype and scam speculators are covered by a Federal Bank bail out, they lose nothing, and will repeat swindling in the future. Bailouts are a formula for financial scam recidivism. So much, alas, for the advice of orthodox market experts. European Central Banks and the US Federal Reserve know what class they represent: Real existing speculator plungers, not textbook risk-calculating value-oriented entrepreneurs, are their reference group. The risk of letting the bad boys sink is that there are too many of them, working in most of the most powerful investment houses, managing too many funds, for the most powerful financiers. "There are no good financiers and bad speculators", one philosophically inclined fund manager (who is likely carrying a turd) put it, "We are all in this together, if we sink so does the whole financial system." Is this a self-interested plea for financial solidarity, a closet Marxist or a prophet of doom? Nobody knows till we delve into the Black Hole of the financial crisis. That won't happen till the brief cases open. James Petras, a former Professor of Sociology at Binghamton University, New York, owns a 50 year membership in the class struggle, is an adviser to the landless and jobless in brazil and argentina and is co-author of Globalization Unmasked (Zed). His new book with Henry Veltmeyer, Social Movements and the State: Brazil, Ecuador, Bolivia and Argentina, will be published in October 2005. He can be reached at: jpetras@binghamton.edu Your Ad Here

New From CounterPunch Books The Secret Language of the Crossroads: HOW THE IRISH INVENTED SLANG By Daniel Cassidy Click Here to Buy! Cassidy on Tour Click Here for Dates & Venues   Now Available! How the Press Failed The Gang's All Here: Judy Miller, Bob Woodward, Rupert Murdoch, Bill O'Reilly...End Times Leaves No Reputation Unstained! Buy End Times Now! Now Available from CounterPunch Books! Saul Landau's Bush and Botox World with a Foreword by Gore Vidal Click Here to Order!   "The Case Against Israel" Michael Neumann's Devastating Rebuttal of Alan Dershowitz WHAT'S INSIDE Grand Theft Pentagon: Tales of Greed and Profiteering in the War on Terror by Jeffrey St. Clair       The Occupation by Patrick Cockburn Humanitarian Imperialism By Jean Bricmont   CITY BEAUTIFUL By Tennessee Reed   Bruce Springsteen On Tour By Dave Marsh   The Book on 9/11 the White House Denounced as "ABSOLUTE GARBAGE"