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Exclusive to CounterPunch Newsletter Subscribers! Why Hillary Clinton has Always Been a Republican In the first of a series of profiles, Alexander Cockburn and Jeffrey St. Clair chart the formative years of Hillary Clinton. Watch her as she zigzags from Nixon campaigner and vote-fraud investigator in 1960 to Goldwater Girl and President of Young Republicans at Wellesley to her internship for Gerald Ford and campaigner for Nelson Rockefeller. Witness her reaction to the student protests at Yale and the demonstrations at Grant Park during the Democratic Convention in 1968. Learn how she and Bill vowed to "remake" the Democratic Party--using the Nixon model HRC learned about as a member of the House impeachment staff. And much more! Plus: David Price on anthropologist Andre Gunder Frank, the FBI and the Bureaucratic Exile of a Critical Mind. 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 July 21 / 22, 2007 Ralph Nader Atomic Blowback 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   July 19, 2007 Patrick Cockburn The Next Invasion of Iraq Remi Kanazi Is This Ben Gurion or Hell?: a Palestinian Adventure Through Israel's Largest Airport Winslow T. Wheeler The Surging Costs of the Iraq War Sharon Smith Democrats and Health Care: Behind the Rhetoric Dave Lindorff Killing Cabbies in Iraq Conn Hallinan Have Gun, Will Travel: Mercenaries in Iraq and Afghanistan D. K. Wilson The Michael Vick Case Pulls Back the Veil on Who We Really Are Joshua Frank Democrats as Leviathan: Another Step Toward War with Iran Norman Solomon The Ghost of Wayne Morse Russell Hoffman Rattling the Reactor: Quakes, Fires and Leaks at the World's Largest Nuke Ray McGovern Bush's Wooden Headedness Kills Website of the Day Protesting Power July 18, 2007 Brenda Norrell Spy Towers on the US Border Col. Dan Smith How the US Could "Lose" Saudi Arabia Martha Rosenberg Lord of Crookharbour: the Trial of Conrad Black Conn Hallinan Bombing and Spraying Afghanistan Binoy Kampmark The SIM Card Terror Case Patrick Bond / Rehana Dada Who Killed Sajida Khan? Tom Johnson The Long Road ... to Nowhere Paul Craig Roberts A Free Press or a Ministry of Truth? Bob Quellos Pushing the Poor Out of House and Home Felice Pace Falling for Lieberman's Iran Resolution Robert Weissman National Health Insurance: More Humane and More Efficient CP Newswire Shocking Report Showing Involvement of US Psychologists in Torture Website of the Day Gilad Atzmon Live!   July 17, 2007 Patrick Cockburn Just Another Day in Iraq: 100 Fathers, Mothers and Children Killed Marjorie Cohn Out of Control: Executive Power Plays Evelyn Pringle Inside Bush's FDA David Rosen Moral Hypocrisy on the Hill: the Christian Right, Sexual Scandal and the Pleasures of the Courtesan Susan Miller Width Matters: Displacement and Israel's Wall Franklin Lamb Did the UN Cave to Israel on Lebanon's Shabaa Farms? Don Monkerud Considering Victory in Iraq Harvey Wasserman Nuclear Surge Russell Hoffman Japan Dodges a Radioactive Bullet Dave Lindorff Feingold Turns to Dross Dave Zirin Reclaiming Sports as True Fiction Website of the Day Che at the UN: 1964   July 16, 2007 Gary Leupp Cheney Urges Bush to Strike Iran Ellen Cantarow The Untold Story of Iraqi Women Paul Craig Roberts Impeach Now Allan J. Lichtman The D.C. Madam's Public Service Dan Bacher Cheney and the Klamath: Was the Veep Behind the Nation's Worst Salmon Kill? Patrick Cockburn The Killing of Khalid W. Hassan Manuel Garcia, Jr. Property is Racism James Brooks AIPAC and Mahmoud Abbas: the Undemocratic Road to Defeat Liaquat Ali Khan The Judicial Crisis in Pakistan Julie Flint Suleiman Jamous in Limbo Website of the Day Free Suleiman Jamous!   July 14 / 15. 2007 Alexander Cockburn Support Their Troops? Andy Worthington Gitmo's Tangled Web: Khalid Sheikh Mohammed, Majhid Khan, Dubious US Convictions and a Dying Man Ralph Nader Lawlessness, Waste and Incompetence Robert Fantina The Illegalities of the Iraq War Ron Jacobs Architecture as Military Strategy Joshua Frank Eat, Fight, Screw, Pray: An Interview with Joe Bageant Conn Hallinan Guns, Foundations and Free Trade: How the Right Targets Africa Dr. Susan Rosenthal, MD War and Dissociation John Ross No En Nuestro Nombre!: a Letter to the Mexican Antiwar Movement Fred Gardner Who's Afraid of Cannabidiol? Rannie Amiri A Primer on Israeli Doublespeak Charles Modiano ESPN's Rap Sheet: Pacman as Black Man Anthony DiMaggio America's Parochial Press China Hand Executive Orders and Coercive Diplomacy Missy Comley Beattie Reprobate Rhetoricians Dr. James J. Murtagh, Jr. Harry Potter Battles Big Brother Kenneth Rexroth On Thomas More's "Utopia" Poets' Basement Engel, Davies and Orloski Website of the Weekend GOP Sex Hypocrites: a Slideshow   July 13, 2007 Patrick Cockburn The Decider in Denial Winslow T. Wheeler Bush's Iraq Benchmarks Assessment: Grading on a Curve for the Wrong Test Imran Khan When Dictators Serve US Interests Todd Chretien The Wal-Mart of Garbage Sam Husseini Killing the Constitution Dr. Herman Mindshaftgap Why, in Truth, There is No Surge Anthony Papa The Hard Road Home D. K. Wilson The Wonderful World of Mike Greenberg and Barry Bonds David Michael Green In the Last Throes, Judiciously Website of the Day Strange Attraction: Mrs. Thompson and Mr. Wolfowitz   July 12, 2007 Paul Craig Roberts Restoring the People's Power Robert Jensen Lessons from the Lal Masjid Tragedy Dr. Susan Block Hookergate II: The Senator and the Veep Joshua Frank The Liberal Thrashing of Ward Churchill John Chuckman How Terror Lost Its Meaning Corporate Crime Reporter The Problem with Bribeline Mike Whitney Demonizing Putin Nicola Nasser Will New Delhi's Palestinian Policy be Neutralized? Richard Rhames Requiem for the Paxilated William S. Lind Not Fourth Generation Warfare Website of the Day Video: World's Largest Nuclear Explosion     July 11, 2007 Patrick Cockburn The Benchmark Blame Game Richard Neville Is This Man a Psychopath? Bomber McNeill, the Faceless Pol Pot of the Sky Debra McNutt Privatizing Women: Military Prostitution and the Iraq Occupation John V. Walsh A Plea to Ralph Nader Scott Liebertz Where's the Outcry? Mexico's Monitor Radio vs. RCTV George C. Wilson Beware the Iran Hawks James McEnteer My Impossible Dream Candidate Philip Rizk Submission or Resistance in Gaza? Johnny Hazard Mexico Commemorates a Fraud Dave Lindorff On the Road with Impeachment Website of the Day Sly Stone's Higher Power   July 10, 2007 James Ridgeway True North: Big Oil in the Arctic Tariq Ali New Clashes in Islamabad: Judges and Jihadis Torment the Regime Javed Hussein Pakistan's Waco?: The Storming of the Red Mosque William Blum Neocons, Theocons, Demcons, Excons and Future Cons Ralph Nader Grown in China Jay Arena New Orleans, Public Housing and the Non-Profit Industrial Complex Anthony DiMaggio A Begrudging Reversal: The New York Times and the "Anti-War" Turn Eva Liddell Has Ann Coulter Got the Hots for John Edwards? Jerry Kroth Democratic Defectors and the Israel Lobby Alice Woodward White Supremacy and the Jena Six Nikolas Kozloff Where's Jerry?: On Cheney Impeachment, Rep. Nadler's a No Show Paul Shannon It's Time to Reform Sex Offender Laws Website of the Day March for Remembrance   July 9, 2007 Fidel Castro The Killing Machine: Reflections from a Target of the CIA Diana Johnstone King Sarko the First John Walsh Will the Greens Seize the Moment? Uri Avnery The Jordanian Option Ramzy Baroud The Palestinian Left: a Lost Opportunity? John Ripton The New West Bank Palestinian State Stephen Lendman Making Gaza Scream Bruce Jackson Bush Going Down: the Correct Way to Affix a Stamp Michael Donnelly What's the Matter with Winchester? Doug Giebel Wanted: Old Men with Nothing to Lose Website of the Day Ron Paul on This Week with George   July 7 / 8, 2007 Saul Landau Blame the Puppet Ismael Hossein-zadeh Parasitic Imperialism Fawzia Afzal-Khan What Lies Beneath: Dispatches from the Frontlines of t he Burqa Brigade Alan Maass Will "Sicko" Spark a Movement?: a Film, Militant Nurses and a New Opportunity for Single Payer Health Care John Ross The Fire Last Time Pat Williams The Supreme Court and Mr. Peanut Rannie Amiri The Unbreakable Mordechai Vanunu Farzana Versey Does the Taj Mahal Deserve to be a Wonder of the World? Bart Gruzalski Bush, the Revolution and the Iraq War Paul Rockwell An Army of None Reza Fiyouzat Tax Cuts for the Rich Only Benefit the Economy of the Rich Monica Benderman Americans, Honestly! Kenneth Couesbouc Total War: From Clausewitz to Clinton and Bush Dave Lindorff Poll: Impeach the Bastards Charles Modiano History's Hit Job on Thomas Paine Missy Beattie King Cretin Dal LaMagna A Peacemaker's View of Baghdad Jean Gerard Those So-Called Oil Contracts in Iraq Anne Dachel Autism: an Epidemic of Fairly Recent Origin Ron Jacobs Modes and Melodies of Resistance Poets' Basement Gibbons, Orloski, Engel and Buknatski Website of the Day Van Morrison and Bob Dylan in Athens July 6, 2007 Daniel Ellsberg When the Crimes of the White House are Unpunishable Gary Leupp The Cracks in Cheney's World Harvey Wasserman Leonard Peltier vs. Scooter Libby: the Hero and the Henchman Omer Subhani Our Dead are Not the Same: Ignoring Civilian Deaths in Afghanistan Marjorie Cohn Compassion, Conspiracy and Commutation Christopher Brauchli Kingly Edicts: Bush's Executive Orders David Michael Green Scalia Time: the Wrecking Ball Court China Hand Catfish Blues: Food Safety, the FDA and the Emerging Trade War with China Renee Saucedo and Todd Chretien The New Challenges Facing the Immigrant Rights Movement Corporate Crime Reporter The Crime Wave Behind the Media Curtain Website of the Day Jean Bricmont on the Humanitarian Interveners   July 5, 2007 Andy Worthington Two Americas, Both Unjust: Scooter Libby vs. the "Enemy Combatants" Mike Stark Double Standards of North Carolina "Justice" Norman Solomon The Keyboard Hawks: a Bloody Media Mirror Michael Schwartz Killing 10,000 Iraqis Every Month Susie Day Killer Lesbians Mauled by Killer Court (and Media Wolfpack) Jacob Hornberger A Tangled Web of Lies: Bush and the Libby Case Bill Hatch Smoking with Arnold: The Strange Return of Toxic Mary Nichols Don Fitz When Building Green Ain't So Green John Wright The Crisis of Imperialism Website of the Day Anti-Flag and Tom Morello: "This Land is Your Land"   July 4, 2007 St. Clair / Frank Obama's Nuclear Ambitions Vijay Prashad Democrat (Punjab): Obama and Outsourcing Carl G. Estabrook The Declaration of Independence and the Right to Exist Ron Jacobs Texas Wants to Kill Another Man, the Law be Damned: the Disturbing Case of Kenneth Foster David R. Dow The Quality of Bush's Mercy: the Ghosts of Texas Claudia Johnson Is My Doctor a Terrorist? William S. Lind What Israel's Defeat in Lebanon Means for Defense Industry Fat Cats Gregory Afghani Truth and Tenure: Finkelstein and the Perils of Impeccable Scholarship Paul Edwards End It Now! D. K. Wilson The Sliming of Tank Johnson Niranjan Ramakrishnan Thank You, Mr. President: Bush/Cheney for Dummies Thomas Jefferson The Spirit of Resistance: Lethargy is the Forerunner of the Death of Public Liberty Cindy Sheehan Call Out the Instigator Website of the Day Springsteen: 4th of July, Ashbury Park July 3, 2007 Bill Quigley Injustice in Jena: Black Nooses Hanging from the "White" Tree Gary Leupp Civil Strife in Palestine: a Broader Context Lynda Brayer Norman Finkelstein and the Catholic Church Richard Thieme Mind Wars: Brain Research, Nanotech and the Military Helen Redmond They Don't Come Back the Same: the Mind of the Returning Iraq War Vet David Swanson Scooter and the Commuter: When Presidents Pardon Their Own Crimes Jacob Hornberger Martha Stewart vs. Scooter Libby: Commutation as Cover-Up Ayesha Ijaz Khan Pakistan's New Jihad Franklin Lamb The Edginess of Lebanon Ray McGovern Unimpeachably Impeachable: Start with Cheney Kevin Zeese The Air Force vs. Rev. Lennox Yearwood Dave Lindorff Nancy Pelosi and the Low Bar Democrats Website of the Day A Military Guide to the Iraq War July 2, 2007 Andy Worthington The Guantánamo Whistleblowers Nina Serrano The Assassination of a Poet: Memories of Roque Dalton Jack Hirschman The Nation and the Assassin: a Shameful Blunder Paul Craig Roberts Enter Turkey Bill Williams The Commissar Two-Step at DePaul Anthony Papa A Taste of the Gulag: What Paris Learned Sonja Karkar Who Will Save Palestine? Louay Safi Steve Emerson's Fantastic Obsession Anthony Gregory When Killer Cops Walk Monica Benderman In Consideration of War Website of the Day Dylan's Masters of War, at West Point, 1990   June 30 / July 1, 2007 John Ross Free Frida Kahlo! Alan Farago Fakery, Inflation and the Housing Market Peter Quinn The Political Paranoia Over Immigration: Two Centuries and Counting Christopher Brauchli Cheney Does the Constitution Robert Fisk Abu Henry and the Mysterious Silence Uri Avnery A Dark Summit Judith Siers-Poisson The Politics and PR of Cervical Cancer Saul Landau Israel is Bad for Jewish Ethics Abbas Zaidi The Ad Hominem World of Pakistan Politics Ron Jacobs Ending the War, Organizing for Change Ralph Nader Move Over Oprah: a Summer Reading List Donald Worster Which City is Worse Off Today, New York or New Orleans? Mike Whitney The Fed's Role in the Bear Stearns Meltdown Jacob Hill Fast Track to Trade Failure Kenneth Couesbouc Why Global Trade is Rarely Fair Missy Beattie Kakistocracy Mohammad Kamaali Envoy for the Quartet Ramzy Baroud Finding Lessons in Gaza's Bloodshed Leonard Peltier A Gathering at Oglala Phyllis Pollack Seven Hours of Banging with the Stones Poets' Basement Reed, Orloski and Buknatski Website of the Weekend A Podcast Interview with Cpt. Ward Boston on the USS Liberty   June 29, 2007 St. Clair / Frank Toward a New Environmental Movement Brian Cloughley Losing the War in Afghanistan: One Civilian Massacre at a Time Patrick Cockburn End the Occupation: an Open Letter to Gordon Brown Gilad Atzmon The Peace Envoy: Tony Blair on Work Release Dave Lindorff Subpoenas, Executive Privilege and Liberal Pipedreams Jennifer Matsui / Carl Kandutsch Electric Larryland Kevin Zeese A Different Kind of Peace Candidate Daniel Klimek Fasting for Justice at DePaul David Michael Green The Founding Fathers Never Met Dick Cheney John Chuckman The London Car Bomb Website of the Day BAM!   June 28, 2007 Bill Quigley How to Destroy an African American City in 33 Steps Vijay Prashad Once More on the New York Times Margaret Kimberley The Whitening of Marianne Pearl: When White Actors Play Black Characters Winslow T. Wheeler House of Pork: Changing Lightbulbs in the Democrats' Bordello Philip Rizk The Failing of Gaza D. K. Wilson The Black Villains Club Bill Williams Strange Calculus at DePaul Mahmoud El-Yousseph The Deportation of Yardlin Jimenez Richard Rhames The Liberation of Paris Paul Krassner Bong Hits for Repression: the Giant Sucking Sound of the Supreme Court Website of the Day Free Lightnin' Hopkins   June 27, 2007 Marjorie Cohn Targeting Dissent: FBI Spying on the National Lawyers Guild Dr. Susan Rosenthal, MD Sick and Sicker: Two Models of Health Care Rationing Alan Farago Bush and the Everglades: Rebranding Failure as Success Carla Blank "America, the Beautiful": the Queen, Jamestown and the Eye of the Beholder Matthew Abraham The Smearing of Robert Trivers, Dershowitz-Style Sunsara Taylor The Deadly Consequences of Compromise: Abortion Rights Under Assault, Where's the Women's Movement? Russell D. Hoffman 16 Dirty Secrets About Nuclear Power Robert Weissman Blackstone and Capital's Grand Scam Sen. Russ Feingold Secrecy and the Federal Death Penalty Paul Buchheit The Footprints of Democracies Website of the Day Anarchy for the USA: an Interview with Josh Wolf   June 26, 2007 Jonathan Cook Divide and Rule, Israeli-Style Ralph Nader Sicko and the Politics of Health Care Corporate Crime Reporter Which Side Are You On, Michael Moore? Ron Jacobs Are the Neocons Really Going? Martha Rosenberg Mad Cow in God's Country John Chuckman China's New Weapons Denny Haldeman Ethanolics Anonymous Anthony DiMaggio Free Speech Hypocrisy at the Supreme Court Stephen Fleischman The Tightrope Economy William S. Lind Legitimacy, Toujours Legitimacy Website of the Day The CIA's Family Jewels   June 25, 2007 Paul Craig Roberts Goodbye to the City on the Hill Jennifer Loewenstein The Triumph of US / Israeli Policy in Palestine Bob Anderson The Grooming of Bill Richardson: New Mexico's Nuclear Governor Robert Pollin The Realities of Microlending Patrick Cockburn Chemical Ali Faces the Hangman: the Life and Crimes of al-Majid Eva Liddell Why They Want to Fire Ward Churchill Dan Bacher Democrats and the School of the Americas: 42 House Democrats Back Torture Academy Larry Atkins The Case of the Judge and the $54 Million Pair of Pants: an Embarrassment, Not an Argument for Tort Reform Mark Brenner SEIU Ends Nursing Home Partnership James Rothenberg Hillary Does Iraq Website of the Day "A Long Train of Abuses" June 23 / 24, 2007 Alexander Cockburn Zyklon B on the US Border Jeff Taylor The Foreign Policy of Barack Obama Oren Ben-Dor Israeli Apartheid is the Core of the Crisis in Gaza Gary Leupp In Defense of Academic Freedom: the Ward Churchill Case Robert Fisk The Bumbling Envoy David Rosen The Hidden Cost of War: Genital Injuries, Prosthetic Devices and the War on Terror Russell Mokhiber Ins and Outs for 2008: Up with Spoilers! Alison Weir USA Today and the USS Liberty Robert Fantina The Floundering Congress D. K. Wilson Of Gangstas and Spearchuckers, Sex and Zulus Nicole Colson Litigating Gitmo Stephen Soldz, Steven Reisner and Brad Olson Torture, Psychologists and Colonel James Dave Lindorff Exodus of the Puppets: Bush's Incredible Shrinking Coalition Benjamin Dangl Cerámica de Cuyo: a Profile of Worker Control in Argentina Michael Dickinson The Catholicization of Tony Poets' Basement Davies, Engel, Gerard and Orloski Website of the Weekend Incarcerex: a Drug War Video   June 22, 2007 Andy Worthington A Tunisian in Gitmo: the Story of Prisoner 660 Sherwood Ross Corporate America's Deadliest Secret: the Big Profits in Biowarfare Research Eliana Monteforte The Torture Academy Robert Weissman Things Can Be Different Richard Rhames Farmer Preservation Christopher Brauchli Bush and the Uighurs: an Encounter in Albania Ramzy Baroud Chronicle of a Chaos Foretold Ehud Krinis, David Shulman and Neve Gordon Facing an Imminent Threat of Expulsion: Palestinians in S. Hebron Hills Need Your Help! David Michael Green If Reid Were Rove Kathryn Webber Boycotting DePaul Website of the Day Stop Me Before I Vote Again!   June 21, 2007 Peter Linebaugh The Day of the Rope Natsu Saito The Regents and Ward Churchill: Now is the Time to Speak Out Ron Jacobs The Intimidation of a Vet Saree Makdisi The West Chooses Fatah, But Palestinians Don't John Stauber Blessed Unrest: an Interview with Paul Hawken Scott Liebertz Fox News and Venezuela: an Analysis of How the Network Deliberately Misinforms Its Viewers Tom Clifford The Ghost Prisoners Robert Jensen The Last Sunday? Michael J. Smith Who Among Us Will Step Up to Destroy the Democratic Party? Jeb Sprague Pain at the Pump in Haiti Website of the Day Dion: Hey Paris June 20, 2007 Omar Barghouti A Secular-Democratic State Solution Andy Worthington Repatriated to Torture Margaret Kimberley Supreme Injustices: the Bush Court Robert Weissman Sicko, Part One: the Human Tragedy Russell D. Hoffman Time to Choose: Meltdowns or Solar Power? Rannie Amiri Mideast Alight Stephen Lendman The New York Times vs. Hugo Chavez Dave Lindorff Democratic Disconnect David Swanson Booing Hillary: Platitudes from the Drone Machine Anne Dachel Autism & Vaccines: Why are They Afraid to Look? Website of the Day Revolution By the Book   June 19, 2007 Ralph Nader Hillary's Stock and Trade: the NAFTA Two-Step Dr. Shepherd Bliss Torture's Long Reach Bill and Kathleen Christison Demostrating Against the Catholic Church in Santa Fe Jeff Leys Swarming Congress: Building a Resistance to the 2008 Iraq War Supplemental Funding Bill Dave Zirin The Unforgiven: Barry Bonds and Jack Johnson Chris Floyd Hitchens Takes a Roll in the Hay Ben Terrall Iraq Union Leaders Speak Out Against the Occupation Anthony Papa Veronica's Story: a Dying Wish to Governor Spitzer VIPS Countering Terrorism: How Not to Do It Linda Flores Criminalizing the Classroom Website of the Day Sign On to the Iraq Moratorium June 18, 2007 John Ross The Annexation of Mexico Paul Craig Roberts The Reign of the Tyrants is at Hand Martha Rosenberg Let Cheney at Him: Richardson the Oryx Hunter Norman Solomon War at the Remote Don Santina Memo to the Queen: Bobby Sands Died for Your Sins Isabella Kenfield Landless Rural Workers Confront Lula James Brooks America's Guilty Silence Eva Liddell Planning to Lose: Democratic Stratagems Sam Husseini Clinton Health Care Scam Revisited Akiva Eldar Ariel Sharon's Dream Website of the Day Frank Zappa: the Cop Interview   June 16 / 17, 2007 Alexander Cockburn The Psychopathology of Shrinks John Halle Finkelstein and "The Progressive" Robert Fisk Welcome to "Palestine" Andy Worthington Return to Torture? Uri Avnery The Gaza Cage Fred Gardner Paris Hilton's Punishment: a False Parable Saul Landau Our Gang of Thugs: The 1970s as a Context for Terrorist Violence P. Sainath Heaven Can Wait: Creditors and the Widows of Vidharbha Missy Comley Beattie Calling Evil Its Name Alan Gregory When ADM Comes to Town: Killer Tax Breaks for Wildlife Destruction Walter Brasch Bush and the Philosophy of Swiss Cheese Website of the Weekend Obama Girl   June 15, 2007 Alan Farago View from the Construction Crane: Sex, Taxes and Real Estate Scams in Miami Andy Worthington The Ordeal of Ali al--Marri Michael Simmons Terrorizing Artists in the USA Franklin Lamb Blowback Across Lebanon: The Failed Sunni Army Solution Gary Leupp The Day After We Attack Iran John Ross Ballot Burning Time in Ol' Mexico Website of the Day The American Rationalist   June 14, 2007 Michael Donnelly Charred SUVs and the End of Citizen Eco--Activism Faisal Kutty Scare Canada: The No--Fly List's False Sense of Security Harry Browne Ireland's Green Party Sells Out Charles Jonkel From the Arctic to Yellowstone: Bears in a World of Indifference Steven Higgs Murder in a Small Town: "Gay Panic" in Indiana? Bruce Dixon Black Power Through Low Power Radio Bruce K. Gagnon What Do We Do Now? A 10--Step Plan for Antiwar Activists Website of the Day Finkelgate June 13, 2007 Glen Ford Obama's Siren Song Marjorie Cohn Repression in Oaxaca Bill Christison A Grave Injustice at DePaul University Charles Jonkel Bears in a World of Indifference Silvia Cattori "I Was Not Prepared for the Horrors I Saw": an Interview with Hedy Epstein Richard Gott Racism and TV in Venezuela Firmin DeBrabander How the Neocons Misread Machiavelli William S. Lind The Perfect (Sine) Wave: Bombing Railroad Stations in Iraq Keith Rosenthal Workers Score a Victory at Harvard Website of the Day GOP and Monty Python Explain: "Enhanced Interrogation Techniques" June 12, 2007 Jeffrey St. Clair How to Sell a War Paul Craig Roberts The Neocon Threat to American Freedom P. Sainath India's Plutocrats and the Press Ralph Nader The Biggest Scam in the World Omar Waraich A Black Day for Pakistan's Press Dave Lindorff Things Your Media Momma Didn't Tell You Harvey Wasserman Confessions of an Anti-Nuke Jerk Malini Johar Schueller It Takes a Bomb Ramzy Baroud War Foretold: Mark Twain and the Sins of Empire Website of the Day Palestinian Chronicle Needs Our Help!   June 11, 2007 Patrick Cockburn The War on Journalists Paul Craig Roberts Losing the Economy to Mythology Uri Avnery 40 Bad Years: the Rot of Occupation Norman Solomon The Silence of the Bombs Eva Liddell Paris Hilton Doesn't Do Dishes: How Barbie Stood Up to Allen Ginsberg Rannie Amiri Groundhog Day in Pakistan Rachel Voss Poetry and Politics in Nassau County Christopher Brauchli A Wild West Tale, Starring Rev. Dobson and Bill O'Reilly D. K. Wilson Untangling Michael Vick from the Dogs Website of the Day Paris, Mixed Up     Subscribe Online

Weekend Edition July 21 / 22, 2007 Full System Breakdown? The Crisis in Hedgistan By MIKE WHITNEY Two columns of black smoke can still be seen rising over the New York skyline. Terrorism? Not quite. The plumes of smoke are all that's left of two major hedge funds which blew up just weeks ago leaving nothing behind but a few smoldering embers and a mound of black soot. The compiled assets of the Bear Sterns High-Grade Structured Credit Strategies Fund--nearly $20 billion--have vanished into the miasma of cyber-space soon be joined by $1.4 trillion of other, equally worthless, Collateralized Debt Obligations (CDO). If you look closely, you'll see the mangled bodies of the CDOs, the CDSs (Credit Default Swaps), the RMBS (Residential Mortgage Backed Securities) and the other shaky debt-instruments being pulled from the wreckage and tossed on the bonfire. Is this how it all ends? Will the sudden spike in subprime defaults send all the funds in "Hedgistan" crashing to earth? No one knows--yet. According to Bloomberg News, Bear Sterns announced last week that there's "little value left" in one of its funds and "no value left" in the other. Nothing, nada, zippo. The news has left Wall Street in a state of shock. What does it all mean? Does that mean that the entire hedge fund Empire"which is built on a foundation of dodgy loans and quicksand---may be headed for the crapper? We don't know. But a cloud has settled-in over downtown Manhattan where gloomy-looking men in pinstriped suits are waiting for the other shoe to drop. The hedge fund industry is based on the bizarre notion that one does not have to produce anything of value to make boatloads of money. You don't even need assets any more---just a risky subprime loan that can be transformed into an investment grade security (CDO) through the magic of "securitization" a sprinkling of Wall Street snake oil. Abracadabra---presto-chango! It's like wrapping up broken bottle-glass and selling it as the Hope Diamond. Until Bear went under, no one really noticed. But they are paying attention now. When these toxic CDOs went to auction, no one bid for them. Now that's scary. "No bids" means that $1.4 trillion in investments have no discernable market-value. The CDOs were graded "mark to model" which translates into "mark to fantasy". It means that the investment bankers and hedge fund managers simply got together over Martinis one night and pulled a number out of a hat. Now no one wants to buy them. They're worthless. And that's just half the story. There's trillions of dollars in derivatives riding on these shaky CDOs. That's enough to bring down the whole market if interest rates rise or liquidity dries up. This illustrates an important point, though. It shows what it takes to be a good hedge fund manager: Take a shabby sub-prime mortgage; chop it into "investment", "mezzanine" and "equity" tranches. Bundle it with other equally suspect mortgage backed securities (MBS). Decide (arbitrarily) what the CDOs are worth Tell your banker. Leverage at a ratio of 10 o 1. Take 2% "off the top" plus salary for your efforts. Buy a summer home in the Hampton's and a Lexus for the wife. Wait for the crash. Then repeat. Congratulations: you are now a successful hedge fund manager! Oh yeah; and don't forget to prepare a few soothing words for the investors who just lost their life savings and will now be spending their evenings squatting beneath a nearby freeway off-ramp. "We're so very sorry, Mrs. Jones. Can we get you some cardboard-bedding to keep off the rain?" The problems that are appearing in the stock and bond markets all started at the Federal Reserve when Fed-Chief Alan Greenspan opened the sluice-gates in 2003 and lowered interest rates to 1%. (Way below the rate of inflation) Since then, trillions of dollars have flooded into the markets creating multiple equity bubbles in real estate, stocks and credit. Serial bubble-maker Greenspan is to finance-capitalism what Wrigley is to chewing gum. The greatest flim-flam man of all time. The Fed has tried to conceal the massive increase to the money supply, but the evidence is everywhere. (Many analysts now calculate that inflation is running at roughly 13%) Food and energy have skyrocketed. Housing prices have soared. Everything has gone up except the cheapo imports which the Fed uses to manipulate the inflation statistics. The gigantic housing bubble is mostly Greenspan's doing. After printing-up mountains of cash and creating artificial demand through low interest rates; he promoted his product-line with the typical huckster sales-pitch. "Maestro" advised us that the extension of loans to all-God's creatures, creditworthy or not, is a good thing. Here's a clip of Dear Alan praising subprime lending in a speech on April 8, 2005: "With these advances in technology, lenders have taken advantage of credit-scoring models and other techniques for efficiently extending credit to a broader spectrum of consumers. . . . As we reflect on the evolution of consumer credit in the United States, we must conclude that innovation and structural change in the financial services industry have been critical in providing expanded access to credit for the vast majority of consumers, including those of limited means. . . . This fact underscores the importance of our roles as policymakers, researchers, bankers and consumer advocates in fostering constructive innovation that is both responsive to market demand and beneficial to consumers." Yes, of course, with all these "advances in technology" and new-fangled "credit-scoring models" why would we need to verify a loan-applicant's income or require that he scrape together a measly $5,000 for a $450,000 mortgage? That's all so 20th Century! Now that foreclosures are mushrooming at an unprecedented rate, the Fed is trying to distance itself from the problem by blaming the banks for their shoddy underwriting practices. But the guilt lies with the Central Bank. Its all part of their whacko plan to crush the dollar and create a police state. It may be trite, but "inflation is theft". Unfortunately, inflation is also part of the ruling class' strategy to rob the poor, fuel the stock market with cheap credit, and move jobs overseas. It is the autocrat's method of "social engineering"---shifting wealth from one class to another by simply printing more money and pumping it through the system via low interest rates. Bankers know that people will ALWAYS borrow money if the money is cheap enough. At 1%, the Fed was basically losing money on every transaction, but persisted anyway. The effects of the Fed's low interest rates can be seen everywhere. Consumer credit rose last month by a whopping 12.9%---credit card debt by 9.8%! Since housing prices have flattened out, homeowners are no longer able to tap into their dwindling equity (Mortgage Equity Withdrawal; MEWs) so they've switched over to plastic even though rates are sky-high.(18%) But the real damage is showing up in the subprime market where the number of defaults continues to soar. (Check out this mortgage delinquency map.) A correction in real estate is not really enough to bring down the whole economy. Unfortunately, the contagion from the subprime meltdown has spread to the stock market, the insurance industry, and the major investment banks. Everyone on Wall Street is now concerned that we may be seeing the beginning of a global credit crunch. Not even Fed-master Ben Bernanke is claiming that the subprime problems are "contained" anymore. In fact, just last week, Bernanke admitted to Senators on the Hill that the housing market has "deteriorated significantly". It's about time. If anyone still has any doubts about the troubles in housing, they should look over these graphs which tell the whole story. The collapse of the Bear Sterns hedge funds indicates that the problems in the subprime market have crossed over to the bond market and are likely to inflict major damage. This could have been avoided with proper government regulation. In our new deregulated environment, the banks don't have to rely on savings anymore to make the loans. They simply originate the loans, take their commission, and sell the debt as CDOs. They're even allowed to sell the risk of default through credit default swaps (CDS) which are a form of insurance that minimizes the banks exposure. These weird innovations have spawned riskier and riskier loans and increased the likelihood of damage to the broader market. Economics correspondent, Stephen Long, explains it like this: "The problem that arises from the subprime mortgage collapse is that it creates a toxic cycle of debt. Banks originate loans or bundle up loans that mortgage companies have made and sell the risk on to the hedge funds. Then the hedge funds say, Hey, we've got this product that has an investment grade rating so we'll borrow against it from the banks.' (oftentimes leveraged at a ratio of 10 to 1) Now the hedge funds are trying to buy the original loans to stop them from going into default." (The hedge funds are forced to slow the rate of foreclosures so they won't go bankrupt.) So, what happens when these shaky CDOs are "downgraded"? Will the hedge funds fall like dominos just like the subprime mortgage-lenders? Will we see liquidity evaporate in the broader market triggering a plunge in the stocks and a massive sell-off in the bond market? CDOs were conjured up with the idea that vast amounts of money could be made on very meager assets through a complex expansion of leverage. They were promoted as "limiting risk" by spreading it to a greater number of investors and providing extra protection through derivatives. Mortgage Backed Securities were sliced and diced into "more risky" and "less risky" tranches depending on investor appetite. Only now"to everyone's surprise---"collateralized debt obligations with stellar Triple-A ratings have been getting hit by the subprime market's woes." (Wall Street Journal, "Bernanke revises subprime outlook") On top of that, the ABX derivative index "has started showing pronounced weakness at the top of its ratings structure." (ibid WSJ, 7-19-07) In other words, even the VERY BEST of these multi-trillion dollar investments are beginning to falter. The contagion is spreading through the entire market. The CDOs are worthless. No one wants them. In fact, the whole new regime of exotic debt-instruments which emerged from 2000-on, is barely hanging on by a thread. One minor downturn in the stock market and the hedge funds will go freefalling through open space. A speech by Robert Rodriguez of First Pacific Advisors (CFA) gives us a good idea of the enormity of the money involved in these investments. In his "Absence of Fear" address in Chicago on June 28, 2007 he states: "Since 2000 hedge funds have more than doubled in number, while their assets have tripled. They too are using elevated levels of leverage, as are PE (Private Equity) firms and investors in highly leveraged fixed income securities. These funds are heavy users of derivatives. The Global derivatives market grew nearly 40% in 2006--the fastest pace in the last nine years--to $415 trillion, per the Bank of International Settlements. The amount of contracts based on bonds more than doubled to $29 trillion. The actual money at risk through credit derivatives increased 93% to $470 billion, while that amount for the entire derivatives market was $9.7 trillion. The International Monetary Fund, in its April 2006 Global Financial Stability Report, estimated that credit-oriented hedge fund assets grew to more than $300 billion in 2005, a six-fold increase in five years. When levered at 5-6x, this represents $1.5 to $1.8 trillion deployed into the credit markets. Fitch, in their June 5, 2007 special report, "Hedge Funds: The Credit Market's New Paradigm," says that despite the upward trend in maximum allowable leverage, "notably, no prime broker reported raising margin requirements in response to historically tight credit spreads and growing concerns about the general level of risk-complacency in the credit markets." If Rodriguez's "eye-popping" numbers are accurate and the market slumps a mere 5%, "the value of a hedge fund's assets could lead to a forced sale of as much as 25% of its assets". If the market falls just 10%, the fund would get a 50% haircut! That just shows how over-exposed the industry really is. As the requirements on mortgages gets tougher and the subprime market continues to languish; bankers will naturally become more hesitant to loan zillions of dollars to hedge funds and private equity firms. When credit gets tighter, the hedge funds will begin to nosedive which will send the stock market in a long-term swoon. That's what happens when a market is this over-leveraged. It's unavoidable. The markets are now perfectly poised for a full-system breakdown. FDIC Chairman Sheila Bair expects a CDO time bomb. She summed it up like this: "Its going to get worse before it gets better. How much worse, I don't know." Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com Your Ad Here

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