For anyone interested in what happened at AIG last year, Michael Lewis’ Vanity Fair story is a must-read. Lewis, author of Liar’s Poker, is very good at making complicated investment procedures intelligible to the uninitiated.

The most interesting thing about the story is how it illustrates the grand lesson of last year’s economic collapse: Everyone screwed up and no one person is to blame.

Compare, as Lewis does, the AIG collapse, which has largely vanished from the public memory, to the Bernie Madoff case, which arouses everyone’s ire. Madoff is a simple, if tragic, story: One guy conned a bunch of people into giving him money, and then used the money for himself and his family, leaving nothing for his clients. Madoff is a thief and a criminal and deserves to serve every year of the 150 on his sentence.

The AIG collapse, as well as the overall downturn of the economy, was not so simple. Lewis centers his story on Joseph Cassano, who was the head of AIG’s Financial Products unit, and he makes a compelling case that Cassano deserves a large share of the blame.

The problem, however, is that while Cassano comes off as something of a bully and a jerk, he is not a Madoff-style villain. He did not think that what he was doing was going to lead to ruin, as Madoff certainly had to know, as evidenced by the fact that Cassano reinvested most of his money in the company itself. (Lewis makes this point more generally, that the group that lost the most in AIG’s collapse were AIG employees.)

Lewis’ argument centers on the fact that Cassano didn’t really know what his company was getting into. But, as Lewis himself illustrates, nobody really did. Lewis depicts a scene in which Gene Park first discovers that the bonds AIG was insuring were made up of 95% subprime loans:

He suspected Joe Cassano didn’t understand what he had done, but even so Park was shocked by the magnitude of the misunderstanding: these piles of consumer loans were now 95 percent U.S. subprime mortgages. Park then conducted a little survey, asking the people around A.I.G. F.P. most directly involved in insuring them how much subprime was in them. He asked Gary Gorton, a Yale professor who had helped build the model Cassano used to price the credit-default swaps. Gorton guessed that the piles were no more than 10 percent subprime. He asked a risk analyst in London, who guessed 20 percent. He asked Al Frost, who had no clue, but then, his job was to sell, not to trade. “None of them knew,” says one trader. Which sounds, in retrospect, incredible. But an entire financial system was premised on their not knowing.

Lewis really undersells it with “incredible.” I am in no way anything close to an expert on the economy or Wall Street, but what the fuck were the employees at AIG supposed to be doing if not knowing what was in the financial products they were buying?

Cassano is an easy lightning rod because of the stories Lewis tells about him, but here’s another fact from the article: Once Park showed Cassano what was up, he stopped. AIG actually didn’t end up with the most toxic assets from 2006 and 2007, but by then it was already too late. So, yes, Cassano screwed up, but not really any more than a lot of others, and he stopped screwing up a lot earlier than some people.

Lewis’ article acknowledges and illustrates just how complicated and systematic Wall Street’s failings were. Even while acknowledging this, however, Lewis seems tempted to seize on one villain. Just after acknowledging all of the impersonal forces that worked against AIG, Lewis insists that, “impersonal forces require people to conspire with them. Joe Cassano was the perfect man for these times”; The article is called “The Man Who Crashed the World.”

It seems that Lewis, and many others, wants Cassano (or someone) to be the face of this economic disaster. But the truth is, it has no face. And the sooner we realize that, the sooner we can work towards fixing this mess and preventing another.

recent email I sent to a friend on vanity fair’s cassano/aigfp article.

i think youre dead on that it wasn’t so much a deliberate scheme as it was utter incompetence at the very top.  cassano does seem like a total nutcase.  lewis had mentioned that he drove a crappy car…and im wondering what, was it an audi instead of a bmw 5 series?  what exactly is considered crappy in the affluent world of michael lewis?  but yeah, rolling stone had mentioned he’s still getting 2 mill a year for his consultant work for aig.  which i suggest be taking his advice and doing the EXACT opposite.  hellooooooo??!

Since its the middle of the week and things tend to get a bit slow, I thought I should make Wednesdays a link dropping day. I will post fascinating news articles and websites that have kept me (and soon-to-be you) a smidgen less efficient. I’m certain that while it may slow down more important tasks (like paying your bills or replying to that very important email from your boss), these articles may enrich you a bit and possibly make you more interesting at those summer dinner parties .

The Man Who Sold the World By Michael Lewis

Found on VanityFair.com and written by Michael Lewis, the author of the infamous “Liar’s Poker” (Read it, know it). To be honest, although I am generally aware of what precipitated the current financial situation that afflicts us, I was unaware of the details. This article explores the possibility that this situation can be traced to one Wall Street financial division and its head: AIG Financial Products and Joe Cassano. It’s a long five-page affair but a fascinating and well-written piece. (I must admit the title of the article somehow got Nirvana’s cover of “The Man Who Sold the World” stuck in my head for a while)

TheCoolHunter.net

I came across this website while looking at a really interesting ad from Seoul, Korea. (See: Nikon D700 Guerrilla Style Billboard — I would not want to walk past that sign if I were epileptic) What struck me the most while looking at their posts was that European concepts for various products, had a certain something that North American design seems to lack. I can’t seem to put it into words…perhaps a certain imaginative quality? The entry on a German school designed by its students and architecture group Baupoliten was particularly interesting considering how they based the design on a the magical and fun concept of a Silver Dragon.

Erika-Mann Grundschule II classroom (Source: TheCoolHunter.net)

Resolved: She’s Just Not That Into You

Written by Taiye Tuokli-Wosornu (I had to check three times to make sure I spelled that correctly), this fascinating and admittedly bittersweet article can make you smile and cringe. Discussing the forever understanding and amazing girl that somehow makes every guy she befriends believe she’s the one (and vice versa). The truth is he’s not, and this infamous “G” type girl is liable to break your heart until you understand that you’re not the only one she’s so utterly fascinated by. I’m looking forward to the follow-up article discussing how to date such a girl. To be honest, I winced when I read this article because I know many male and female friends that have been in this situation. It doesn’t usually end well: friendships become splintered while lingering feelings of betrayal, unrequited love and bitterness are left in its wake. Let’s hope the next article has ways to resolve the ‘dating’ issue happily .

I think that’s enough links for now, hope you all have a great Wednesday!

- Vic De Zen

In today’s economy people want answers.  They want to know how we got into this mess and what we can do to get out of it.  Although the top brass is working on recovery, they have put forth those who they think are most to blame for our current situation.  Here is their list:

The Enabler
ALAN GREENSPAN

WAS Chairman of the Federal Reserve (1987-2006)
WHAT HE DID Pushed for sweeping power to regulate Wall Street — and then failed to use it. Fueled “irrational” bubble with low interest rates.
WORST MOVE Called derivatives like CDOs “extraordinarily useful”; regulating them would be a “mistake.”
NOW ADMITS He was “partially” wrong to not impose tougher oversight.

The Pioneer
SANDY WEILL

WAS CEO of Citigroup (1998-2003)
WHAT HE DID Created the first too-big-to-fail company, Citigroup. Led the boom in subprime mortgages.
RECENTLY Celebrated $45 billion taxpayer bailout of Citi by taking Mexican vacation on Citigroup jet, complete with $13,000 carpets, pillows made from Hermés scarves, and Baccarat crystal glassware.

The Ideologue
PHIL GRAMM

WAS Senate Banking Committee chair (1995-2000)
KNOWN AS “High priest of deregulation”
WHAT HE DID Pushed repeal of Glass-Steagall Act, leading to rise of megabanks.
WORST MOVE Wrote law that exempted disastrous CDS deals from all regulation.
NOW ADMITS Nothing. Says there is “no evidence” his laws caused crash, which he dismissed as a “mental recession.”

The Arsonist
JOE CASSANO

WAS Chief of AIG Financial Products (2001-2008)
WHAT HE DID Blew a $500 billion hole in fabric of the universe by placing massive bet on the bubble economy with money he didn’t have.
WORST MOVE In August 2007 told investors his CDS deals could not lose even “$1″; lost $352 million that quarter.
NOW Enjoying his $280 million in earnings.

The Bagman
ROBERT RUBIN

WAS Treasury secretary (1995-1999)
WHAT HE DID Opposed regulation of credit swaps; fought to overturn Glass-Steagall Act, leading to creation of Citigroup, where he later made $115 million.
WORST MOVE Asked Treasury to pressure ratings agencies to delay downgrading Enron, a Citigroup debtor.
NOW Still on Citi’s board; mentor of Treasury Secretary Geithner.

The Card Shark
JIMMY CAYNE

WAS CEO of Bear Stearns (1993-2008)
WHAT HE DID Took card-playing vacations and allegedly smoked weed while Bear went bankrupt.
WORST MOVE Cashed out his $61 million share after resigning shortly before Bear’s sale to J.P. Morgan Chase.
NOW SAYS Of Treasury Secretary Geithner: “The guy thinks he’s got a big dick. He’s got nothing, except maybe a boyfriend.”

Mr. Buck Passer
CHRISTOPHER COX

WAS Chairman of the SEC (2005-2009)
WHAT HE DID Gave the market a free ride, waiting until far too late to reverse the disastrous “voluntary regulation” program of 2004 and police the ratings agencies.
LAME EXCUSE Insisted it wasn’t his fault, claiming deregulatory policies tied his hands.
NOW SAYS His “greatest contribution” during the crisis was staying “calm.”

The Predator
ANGELO MOZILO

WAS Head of Countrywide Financial (1969-2008)
WHAT HE DID Biggest provider of subprime mortgages; specialized in predatory loans that put broke people in mansions.
WORST MOVE “Friends of Angelo” program gave favorable mortgages to Sens. Chris Dodd and Kent Conrad.
NOW SAYS Called plea from homeowner facing foreclosure “disgusting.”

The Decorator
JOHN THAIN

WAS Chief of Merrill Lynch (2007-2009)
WHAT HE DID Concealed $15 billion hole in Merrill balance sheet until government subsidized the sale of his company. Went skiing in Vail just before revealing losses.
WORST MOVE Proposed $10 million bonus for himself as company imploded; OK’d $1.2 million office refurbishing.
IS NOW Facing class-action suit for concealing losses.

The Maestro
HENRY PAULSON

WAS CEO of Goldman Sachs (1999-2006); Treasury secretary (2006-2009)
WHAT HE DID Pushed for end to debt restrictions for banks like Goldman, then arranged big bailout for Goldman.
WORST MOVE TARP proposal just three pages long; made his decisions “non-reviewable.”
NOW SAYS “I don’t think we’ve made mistakes on the major decisions.”

The Big Loser
DICK FULD

WAS CEO of Lehman Brothers (1993-2008)
WHAT HE DID Piloted Lehman to largest ­bankruptcy in U.S. history; earned $22 million the year firm went bust.
WORST MOVE Tried to avoid lawsuits by selling his $13 million Florida home to his wife for $100.
NOW SAYS Feels “horrible” about Lehman, but insists his management was “prudent and appropriate.”

And last but not least, and please note he still holds this position:

Mr. Too Big
KEN LEWIS

IS CEO of Bank of America (2001-present)
WHAT HE DID Created ultimate too-big-to-fail company, buying up Fleet, MBNA, Countrywide and Merrill Lynch.
WORST MOVE Failed to catch a $15 billion loss at Merrill before buying the firm; needed $20 billion bailout to close deal.
NOW SAYS It’s a false “claim” to say “the banks that caused this mess must be held accountable.”

The Top Twelve courtesy of Mortgage News Daily and Rolling Stone.

No, this post is not about sex.

Ha.

Gotcha.

Actually, I’ve been off writing a  paper and taking an Anatomy & Physiology  final.  I’m between classes right now, so I thought I’d pop in for a short chat.  (I’m not like some of my friends who can multitask.  I can walk or chew gum, but not do both at the same time.)

I’ve got to say I am not surprised by Jake DeSantis’ resignation from AIG’s Financial Products division.  I rather liked his letter detailing his reasons for leaving the company, too.  When I heard that the House had agreed to impose a 90% tax on bonuses, I thought the amount was excessive.  Forty-five or fifty percent I could see, but not ninety.  That was just counterproductive, knee-jerk politics at its worst.  I also can understand why DeSantis and other members of AIG-FP view AIG CEO Ed Liddy with distrust after he trembled before Congress, and I think DeSantis is  right to say that Congress is going after the wrong people.

The Man in Orange--a prophetic color

We should be tracking down The Man in Orange, Joe Cassano.  Just haul him in!  After all, he’s the one whose [alleged] shenanigans brought down AIG, so he should give back the money he made–$280 million during the last eight years.  That’s $35 million every year! (Who really needs that kind of money?)  Cassano  also should return the $1 million consulting retainer AIG paid him for five or six months after he “left” the company.

And another thing: don’t imagine Americans are only enraged about AIG bonuses.  Such salaries and bonuses, of the sort American companies have paid for ages, are egregious, and they don’t seem to be ending anytime soon.  But they should.

No one else in the world pulls in as much compensation as high profile American executives and Wall Streeters.  I keep wondering why.  We hear the bit about the need to pay insane prices to retain the best talent–as if these guys have their bosses in a choke hold.

What are those bosses afraid of?  Aren’t those the same scare tactics the last administration used when peddling the Iraq War?  Ooooh: We’ve got to be afraid, very afraid, and do everything these overpaid execs dictate, even when what they tell us nearly bankrupts our economy.

I mean,  let’s just say it: there is speculation abroad that we’re pretty close to falling in the pit with Iceland,  so close the Chinese are watching the Fed print more money,  seriously worrying about their investment and the nosedive their own currency may take as a result of all that American paper floating around.   Hence, the suggestion of a new international currency that’s not based solely on the economy of one nation.  A pretty good idea that was, too.

I think Obama and Congress should consider limiting executive pay like the Brits are planning to do.  It’s not as if these executives know anyone else in the world willing to pay nearly as much in compensation.  They’d have to be like everyone else, and take what the market can bear.  Right now, the market can’t bear a whole lot.  But that’s capitalism for you!

Besides, think of the money we taxpayers would save. 

Joe Cassano

Gli album , la discografia ,
i testi e gli accordi

gratuitamente su wikitesti.com
 

• Dio lodato (1999)

1.  
2. Intro
3. Flow to flow giocando col destino
4. Giorno e notte
5. A nocche dure rischiando il culo
6. Gli occhi della strada
7. Dio lodato per sta chance
8. Teste mobili
9. Teach ‘em right
10. Basse frequenze
11. Tributo
12. Dio lodato
13. Base tributo

Joe Cassano

1. Giorno e notte
2. Lirico alchimista
3. Metropoli di sangue
4. Teste mobili Pt.1

Testi e spartiti

www.wikitesti.com

www.forumkaraoke.com

scambio mp3 – CDG – KaraFun – midi

Bailout Blame Game

http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877330,00.html

Vorrei spndere due parole e quindi dedicare un intervento ad un grande della scena Hip Hop italiana di sempre. Purtroppo il rapper in questione non è più tra noi morto per overdose nel 1999 lasciando una piaga insanabile nella cultura in questione del nostro paese. Parlo di Joe Cassano, uno dei migliori MC italiani di sempre, forse se fosse stato ancora qui si sarebbe meritato l’appellativo di miglior rapper odierno.

Molti forse non lo conosceranno o meglio pochi, solo chi si è avvicinato da poco o non conosce bene l’Hip Hop, di seguito qualche cenno biografico per capire meglio di chi parliamo.

Giovanni Cassano meglio conosciuto con lo pseudonimo di Joe Cassano (Bologna, 25 novembre 1973 – Bologna, 3 aprile 1999) è stato un rapper italiano.

Italo americano di origine, ( il padre è cresciuto a New York, nel quartiere di Flatbush a Brooklyn), Giovanni Cassano nasce a Bologna il 25 novembre 1973.

Dopo aver terminato il liceo classico, inizia a studiare psicologia e si dedica allo studio e alla pratica di arti marziali come karate, kick boxing e pugilato. Amante e protagonista della cultura hip-hop, inizia a muovere i primi passi nel circuito underground italiano: partecipa a jam come Zona Dopa (Pescara) o Mic Check (Bologna). Nel 1997 inizia una collaborazione con Inoki, giovane MC locale, ed inizia a frequentare la PMC (Porzione Massiccia Crew), collettivo hip hop bolognese e i Camelz FCE (Fuckin’ Camelz ‘n Effect), senza entrare a farne parte. Nello 1998-99 partecipa all’album 50 Mcs e a Demolizione, mixtape della PMC.

Nel 1999, all’interno della compilation “Novecinquanta” del DJ e producer Fritz Da Cat, compare il brano “Giorno e notte”, che Joe ha registrato con Inoki. Lo stesso anno rappa in Sindrome di fine millennio, album d’esordio degli Uomini Di Mare (il DJ e producer Lato e il rapper Fabri Fibra).

Muore prematuramente (a ventisei anni non ancora compiuti) a causa di un arresto cardiaco. Il fratello Alberto decide di completare l’album a cui stava lavorando e pubblica Dio Lodato, insieme al singolo Dio lodato…per sta chance, piccolo capolavoro underground.

Dopo la sua morte sono numerosi i casi di tributo nei suoi confronti, soprattutto da parte di writer che riconoscono la sua importanza all’interno della scena hip hop dedicandogli vari pezzi murali.

Per comprendere appieno il suo stile unico di seguito vi posto due video di altrettanti pezzi che hanno fatto la storia:
Dio Lodato Per Sta Chanche:

Nocche Dure:

Per una recensione completa del suo disco: http://www.kalporz.com/recensioni/diolodato.htm
Il suo MySpaces Ufficiale: http://www.myspace.com/joecassano

Joe Cassano 25 novembre 1973 –  3 aprile 1999 R.I.P.