The following is for my CIGAs flying as passengers and pilot friends. The following is purported to be real:
Never let it be said that ground crews have never lacked a sense of humor. Here are some actual maintenance complaints submitted by UPS ‘ pilots (marked with a P) and the solutions recorded (marked with an S) by maintenance engineers.
By the way, UPS is the only major airline that has never, ever, had an accident.
P: Noise coming from under instrument panel. Sounds like midget
pounding on something with a hammer.
S: Took hammer away from midget.
P: Test flight OK, except auto-land very rough.
S: Probably because auto-land is not installed on this aircraft.
P: Something loose in cockpit
S: Something tightened in cockpit
P: Dead bugs on windshield.
S: Live bugs on back-order.
P: Autopilot in altitude-hold mode has a 200 ft. per min. descent.
S: Cannot reproduce problem on ground.
P: Evidence of leak on right main landing gear.
S: Evidence removed.
P: DME volume unbelievably loud.
S: DME volume set to more believable level.
P: Friction locks cause throttle levers to stick.
S: That’s what friction locks are for.
P: IFF inoperative in OFF mode.
S: IFF IS inoperative in OFF mode.
P: Suspected crack in windshield.
S: Suspect you’re right.
P: Number 3 engine missing.
S: Engine found on right wing after brief search.
PS: Aircraft acting funny
S: Aircraft warned to straighten up, fly right and be serious.
P: Target radar hums.
S: Reprogrammed target radar with lyrics.
P: Mouse in cockpit.
S: Cat installed.
About this article…
"Stewart has charged that people at CNBC knew what was going on behind the scenes on Wall Street but didn’t tell the public. He has accused CNBC anchors and pundits of abandoning their journalistic duties and acting like cheerleaders for the market.
"In a tremendous boom period, they covered the boom and people wanted to believe in the boom," said Andrew Leckey, a former CNBC anchor and now president of the Donald W. Reynolds National Center for Business Journalism at Arizona State University. "They didn’t uncover the lies that were told to them. Nobody did. But they should be held to a higher responsibility."
But Don Hodges, chairman of Hodges Capital Management in Dallas, said he doesn’t fault CNBC for not seeing the bust coming.
"I’m not sure that anybody had seen it coming," he said. "I’ve listened to all of the so-called experts, and it’s obvious that everybody is very confused."
Oh really, no one saw this "coming"! Many people saw this coming but journalists were not taking the problem seriously. This is a little missive from March of 2008.
Have a nice weekend and welcome to hell!
CIGA Greg Hunter
Dear CIGA Richard,
I trust you are doing well in Tbilisi.
QUESTION #1 – AMOUNT OF OTC DERIVATIVES OUTSTANDING NOTIONAL VALUE?
The answer to your question of what is the notional value of all OTC derivatives outstanding must now be answered by interpolation as the Bank for International Settlement has adopted the Shiller approach of "Value to Maturity."
The assumption required to determine what the financial conditions will be at the maturity render the conclusions another computer cartoon, but pleasing to the statisticians working for the bank 30% lower in notional value.
The number issued prior to the change of method of calculation was one quadrillion, one hundred and forty four trillion dollars.
This has been reduced to 700 trillion dollars.
Now we need to increase any BIS total OTC derivative total notional value figure by 30% to approach the real notional value of OTC derivatives outstanding.
Start with the most recent number of 700 trillion, recognizing this number is but 60% of the real number. Then consider that in bankruptcy notional value becomes full value.
QUESTION #2 – WHAT IS ALL THE TALK ABOUT FOUNDING EXCHANGE TRADING OF OTC DERIVATIVES?
There is no way OTC derivatives can ever be traded on an organized exchange primarily because there is no standard arrangement in the specific performance contracts. It is implicit that to have a clearinghouse function where the winner gets paid and the loser pays in daily true valuation has to be easily arrived at.
Going forward, exchange listings for certain types of derivatives is probable.
Going forward is not the problem. Looking back is the disaster.
QUESTION #3 – Is AIG STILL ISSUING DERIVATIVES.
In the sense of the need to adjust those that they have in terms of market changes, yes.
Good to hear from you.
Dear CIGA Randy,
You ask about when to sell gold.
There is a good argument that gold will not fall like it did in 1980.
As gold reaches $1650, we will examine the sell question, but before that there is no need.
I thought you might get a kick out of the following link to the Application for Federal Bailout 2008 – 2009.
Click here to view the application…
You may have already seen this, but if not… enjoy.
As they say…. the truth is said in jest.
Maybe they should buy 165 million in lead and shackle it to all the legs of the AIG people who get "bonuses"! Rewarding dishonesty and stupidity, or should I say incompetence, is disgusting! They need to be tried for treason!
Obama team anger simmers over AIG bonuses
Sun Mar 15, 12:38 PM
By John O’Callaghan and Philip Barbara
WASHINGTON (Reuters) – The Obama administration has done all it can to discourage big bonus payouts by American International Group Inc, advisers to the president said on Sunday, as anger rose over the embattled insurer’s plans.
AIG, which has received three U.S. government bailouts totaling $180 billion, is at the heart of a global financial crisis that President Barack Obama is trying to address with plans for trillions of dollars in spending.
The economy dominated Sunday’s television news shows, with several of Obama’s top advisers and senior Republicans squaring off over the financial sector bailout and healthcare reform.
This article states that 49 mainstream economic forecasters are losing faith in the current administration because of its failure to create a viable plan to stabilize big U.S. banks.
Geithner testified on Thursday that, "It requires different approaches, and to solve it we’re going to have to work with the market, because we don’t want the taxpayer and the government taking all those risks on the government’s balance sheet and leaving the government with huge, incalculable losses — risks we cannot manage effectively."
It seems to me that his admission that the losses would be "incalculable" is tantamount to saying what you’ve been saying all along: "There is no practical solution to the OTC derivative problem." Hats off for figuring this out years in advance!
Obama’s econ failure: Still no plan to fix the banks
Kevin G. Hall, Mcclatchy Newspapers – Thu Mar 12, 5:26 pm ET
WASHINGTON — The Treasury Department has failed to persuade the world that it has a viable plan to stabilize big U.S. banks, and unless and until it does so, the economic downturn at home and abroad is unlikely to bottom out.
Federal Reserve Chairman Ben Bernanke has said as much, telling Congress last week that "restoring a reasonable degree of financial stability will be critical determinants of the timing and strength of the recovery."
Yet experts warn that each week that goes by without a credible bank plan puts an economic recovery and public confidence in President Barack Obama at risk.
A McClatchy-Ipsos poll this week found that 65 percent of Americans still approve of Obama. However, a Wall Street Journal survey of 49 mainstream economic forecasters this week found that this elite group — which influences public confidence — is losing faith in Obama and in Treasury Secretary Timothy Geithner .