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Today's Stories November 23 / 24, 2007 Rannie Amiri Beirut's Black Friday November 23, 2007 Gary Leupp Killing the Buddha in Pakistan's Swat Valley Laura Carlsen Coming to Terms with Diversity in Bolivia: an Interview with Alvaro Garcia, Bolivia's VP David Macaray Keeping Labor Unions Out Andy Worthington Former Guantánamo Detainee Seeks Asylum in Sweden Clifton Ross Trashing Chavez: Keith Olberman's Toxic Rant Seth Sandronsky Battling Sodexho Dan Bacher Death in the Delta: Thousands of Fish Stranded by Bureau of Reclamation William A. Cook The Myth of Middle East Peace Website of the Day Waiting for the Guards: Stress Techniques as Torture, a Short Film   November 22, 2007 Alan Farago Who Lost America's Everglades? Greg Moses A Thanksgiving Basting Dave Lindorff Impeachment is Back on the Table Mike Ely Native Blood: the Myth pf Thanksgiving Omar Azfar Gore for President of Pakistan?   November 21, 2007 Vijay Prashad Our Dictator, Their Democracy Martha Rosenberg Undercover at a Turkey Slaughtering Plant Manuel Garcia, Jr. Epiphany on the Glacier John Ross The Last Days of Mexican Corn Brian McKenna Cancer Terrorists Unmasked Stephen Soldz Isolation Torture Routine at Guatánamo Monica Benderman Needing Peace Ben Terrall Slavery in the Fields: The Real Price of Sugar Website of the Day Mercy for Animals   November 20, 2007 Oren Ben-Dor Why Israel Has No "Right to Exist" as a Jewish State Wajahat Ali An Interview with Norman Finkelstein Alan Farago The Dark Arts and the Bush Dynasty Marjorie Cohn Musharraf Plays Bush for a Fool Ralph Nader Green is Gold? Andy Worthington Guantánamo Whistleblower Launches a New Attack on Rigged Tribunals Sara Olson When Going AWOL is the Only Escape Dave Lindorff Likelihood of Iran Attack Gains Credence Paul Krassner The First Amendment, a Dialogue Website of the Day Joanne Mariner on Torture November 19, 2007 Winslow T. Wheeler Why Congress Won't Reform China Hand The U.S. Game Plan in Pakistan Allan Nairn Sitting Around Talking, in Indonesia Uri Avnery How to Get Out? David Macaray The Chalice that Poisoned the Labor Movements Dave Lindorff Democrats in Future Shock: They Could Lose It All in 2008! Bill Quigley Twenty Thousand Protest at Ft. Benning; Eleven Face Federal Criminal Trials Ron Jacobs Sitting on the Group W Bench: War, Thanksgiving and Arlo Guthrie Sunsara Taylor Legalized Rights for Fertilized Eggs? Binoy Kampmark Why Steve Irwin--You're Dead! Heather Gray Another Look at W.E.B. DuBois Website of the Day The Meat Market     November 17 / 18, 2007 P. Sainath Neoliberalism's Price Tag: 150,000 Farm Suicides in India David Rosen The Scarlet Hypocrites: Republicans, Christians and the Politics of Adultery Mike Whitney Pentagon Cover Up: 15,000 or More US Deaths in Iraq War? George Wuerthner Saving the Big Wild Brenda Norrell The Case of Jim Main, Jr: In Montana, Indians are Guilty Until Proven Innocent George Ciccariello-Maher Of Submarines and Loose Screws Karim Makdisi Lebanon is Hanging by a Thread Marie Trigona Wal-Mart in Argentina Valerio Volpi The Catholic Church, Incorporated Fred Gardner The Straight-Ahead Runner Robert Fantina The White House Press Office Mike Ferner Thank God for the Senate Republicans! Missy Comley Beattie The Radical Majority Kenneth Couesbouc Circles of Power Patrick O'Hayer A Portrait of Mailer and a Young Poet Poets' Basement Davies, Buknatski and Ford   November 16, 2007 Cockburn / St. Clair The Vices of Hillary Clinton: Secrecy, Intransigence and War Dave Zirin The Indictment of Barry Bonds: Busted by a Broken System Gary D. Barnett A Day in the Life of an Unwilling Federal Agent Alan Farago Sprawl, Mortgage Fraud and Political Corruption Dave Lindorff Two Brothers and Two Scandals Russell Mokhiber Pelosi and Me: "What Should be Done with Those Protesters?" Robert Ovetz Cargo Ships in Paradise: Shipping Lanes Threaten the Yosemite of the Sea Brenda Norrell "Today We Experienced America:" Arresting Indigenous People on the Border David Swanson Wolf Blitzer Loses Democratic Debate Peter Letheby Outside the Box on the Great Plains Website of the Day Why Activism Fails   November 15, 2007 Cockburn / St. Clair Hillary Clinton in Arkansas Adolfo Gilly The Spirit of Revolt Peter Bohmer 10 Days That Shook Olympia Andy Worthington The Trials of Omar Khadr: Gitmo's Child Soldier Gray / Derks Obama's Pitch to South Carolina's Black Churches Affronts Gay Groups Liaquat Ali Khan Liberating Pakistan Dave Lindorff Where's the Party? Christopher Brauchli Tipping Point: the Politics of Gossip Anthony Papa Racism as Law: Crack Cocaine Sentences Martha Rosenberg Merck's Big Write Off Ben Terrall Thank You, Ehren Watada Website of the Day On the Colorado: Drought, Climate Change and Water Supplies November 14, 2007 Cockburn / St. Clair The Making of Hillary Clinton James Petras Venezuela Between Ballots and Bullets Al Giordano Campaign 08: Don't Trust Anyone Over 50 Paul Craig Roberts The Lobby Andy Worthington Innocents and Foot Soldiers Stephen Lendman Torturing Palestinian Detainees Fatima Bhutto Aunt Benazir's False Promises: the Dismantling of Pakistani Democracy Martin Smith Norman Mailer and the "Good War" Jeff Leys Slip Sliding Away: House Votes on War Funding Website of the Day Why the Writers are Striking November 13, 2007 Alexander Cockburn Hillary's Big Problem and How Bill Can Fix It Jeffrey St. Clair Mailer and Us: the Writer as Fighter Robert Bryce The Pakistan Fuel Connection David Macaray The Teamsters and the Hollywood Strike Mike Whitney Bulletins from the Titanic Ralph Nader Pakistani Lawyers vs. American Lawyers Nikolas Kozloff Chavez Blasts the Spanish King Jordan Flaherty Education Versus Incarceration in Tallulah, Louisiana B. R. Gowani Dear Mrs. Bhutto Website of the Day Monty Python: "Fuck You, Very Much FCC"   November 12, 2007 Vicente Navarro Why Hillary's Health Care Plan Really Failed Ben Brown Letter from Ho Chi Minh City: a Tribute to My Vietnam Vet Father Omar K. A Pakistani Lawyer's Testimony: Life Under the Brutal Emergency Sadia Abbas The Roots of Pakistan's Political Crisis: Corrupt Elites and a Kleptocratic Military Farzana Versey Mailer's Miasma Richard W. Behan The Political Crimes of Complicity Paul Krassner Asshole of the Year: Congratulations Tim Russert! Cindy Sheehan Faith and War Peter Stone Brown The Return of Levon Helm Dave Lindorff Dennis, You are Not Alone Website of the Day Police Attack in Olympia   November 10 / 11, 2007 Alain Gresh Uncle Sam's New Backyard: How to Turn a Region into a Graveyard Mike Whitney For Whom the Closing Bell Tolls: the Last Dead Bull on Wall Street Ron Jacobs A View from the Pakistani Left: an Interview with Farooq Tariq Jeffrey St. Clair The First Dambuster: a Coyote Story Alan Farago Tangled Up in Blue: a Brief History of Florida Environmentalism Binoy Kampmark When Language Drowns: Torture in America Robert Fantina Legitimizing Torture Fred Gardner Psychological Torture in the Name of Family Values Ayesha Ijaz Khan The General in His Labyrinth Nicola Nasser NATO's Southward Drift Philip Rizk The Blame Game in Gaza Michael Dickinson Condom Nation: the Pope vs. Terry Higgins Joel S. Hirschhorn The Grand Delusion: a Conspiracy of Two Parties Paul Krassner Flunking Out of the Electoral College Wadner Pierre / Joe Emersberger The Ongoing War on Journalists in Haiti   November 9, 2007 Patrick Cockburn In the Kandil Mountains with the PKK Mohammed Hanif Musharraf and the Drunk Uncle John Ross Blackwater Goes to Mexico Mike Whitney Ron Paul, Big Media's Invisible Candidate Tom Barry In Latin America, the Hillary Clinton Policy is the Bush Policy Corporate Crime Reporter Is the AFL Trying to Derail Single Payer Health Care? Badruddin Khan Pakistan and the Israel Lobby David Macaray The WGA STrike: the Empire Strikes Back Martha Rosenberg The Blood Sport of Vice Presidents Website of the Day Stryker Blockade!   November 8, 2007 Kathleen & Bill Christison Meeting the Other in Israel and Palestine William Loren Katz Waterboarding in American History Mike Whitney The Long Fall: a Market Without Parachutes Sheldon Richman Why Woodstock May Have Saved John McCain's Life Liaquat Ali Khan Solidarity with Pakistan's Lawyers Marc Gardner The Victims of "Jessica's Law": Parolees Without Rights (or Homes) Jackie Corr The Big Fish from Whitefish: Montana, the Last Retreat of the Investment Banker? Brenda Norrell Between Bombs and Border Walls Dave Lindorff Ridiculing Impeachment at the New York Times China Hand Rewriting the History of the Sudan Calamity Sen. Russ Feingold FISA and America's Basic Freedoms: Let's Not Repeat the Mistakes of the Patriot Act Website of the Day The Welfare Poets Meet Hugo Chavez   November 7, 2007 Paul Craig Roberts Dollar's Fall Collapses the American Empire Russell Mokhiber Pelosi and Me: Can't the Democrats End the War By Not Bringing the Funding Bill to the Floor? Vijay Prashad The Apotheosis of Bobby Jindal Niranjan Ramakrishnan Educating Pakistan: What Mukasey Can Teach Musharraf Alan Farago To Bee or Not to Bee? The Politics of Colony Collapse David Macaray The Writers' Guild Strike: Is There an Ice-Breaker? Nikolas Kozloff The Case of the Slimy Senator: Chuck Schumer Greenlights Mukasey Charlotte Laws What We Learned from Stephen Colbert's Presidential Campaign Daniel White Zahid's Story William Cook The Politics of Servility: Congress and the Israel Lobby Website of the Day Safe Lawns   November 6, 2007 Mike Whitney Welcome to Year 27 of the Reagan Revolution Ralph Nader Who Determines the Price of Oil? Andy Worthington The Torture of Ali al-Marri Pam Martens Wall Street Metes Out Street Justice to Citigroup Liaquat Ali Khan Pakistan's Dark Future William Schroder The Return of Water Torture Stephen Lendman Punishing Gaza William Blum Cuba and Original Sin Former US Intelligence Officers A Memo on Torture, Intelligence and Mukasey   November 5, 2007 Alexander Cockburn How I Spent the Eighth Brumaire Russell Mokhiber Pelosi and Me: The Democrats and Single Payer David Macaray How to Turn Workers Against Each Other (and Make Them All Poorer) Gary Leupp General Musharaff's "State of Emergency" Dave Lindorff Those Minot Nukes Ludwig Watzal Israel's Dilemma in Palestine Patrick Cockburn Tensions Ease in Iraqi Kurdistan Peter Stone Brown John Fogerty Makes Peace with His Past Michael Simmons Yo! What Happened to Peace? Website of the Day Petition: In Defense of the Morton West HS Antiwar Students   November 3 / 4, 2007 Tariq Ali Pakistan Sinks Deeper into Night David Price Army's Price Salesman of Counterinsurgency Manual Seeks to Defend Stolen Scholarship Jeffrey St. Clair Splitsville Alan Farago The Housing Crash, Suburban Sprawl and the Crisis of the American Middle Class Paul Krassner He's Back! Don Imus Meets Michael Richards Rannie Amiri Why the U.S. is Safeguarding Iraq's War Criminals P. Sainath Indexing Humanity, Indian Style Ayesha Ijaza Khan Pakistan in a Daze Robert Fantina Is the Bush Administration Talking Itself Into a War With Iran? Seth Sandronsky The Politics of Health Care in California Ron Jacobs The Bebop of Baraka Ramzy Baroud A Case for Arab Dignity Heather Gray When Capitalists Get a Free Ride   November 2, 2007 Dr. Mary Pipher Acting on Conscience: Psychologists and Abusive Interrogations Saul Landau How Pete Stark Became a Pariah Andy Worthington Guantánamo as House Arrest Sharon Smith A Tale of Two Stadiums Gary Leupp Fascist Beatifications: the History and Politics of Sainthood Gregory Harms The Chorus of Slander on Palestine Christopher Brauchli Racism in High Places Peter Morici The Falling Dollar and the Stubborn Trade Deficit Dave Lindorff The Easy Way to Stop the Looming US Attack on Iran David Penner Zombie Nation Website of the Day Fall in Yosemite   November 1, 2007 Paul Craig Roberts The Wages of Hegemony Patrick Cockburn The Most Dangerous Dam in the World Dave Lindorff The Air Force Report on the Minot-Barksdale Nuclear Missile Flight Jonathan Feldman The Strange Political Economy of Death in the South Mike Ferner They Met the Resistance in Iraq William S. Lind A Question for Would-Be Presidents Diana Johnstone "Fascislamism" Versus "Shoah Business" Jacob Hornberger The War on Telephone Privacy A..K. Gupta The Apocalypse will be Televised Lyuba Zarsky / Kevin Gallagher The Enclave Economy of Mexico's Silicon Valley Felice Pace Does the SPLC Equate Anti-Zionism with Anti-Semitism? Website of the Day This One's for You, Ed Abbey   October 31, 2007 Bill Quigley New Orleans' Broken Criminal Justice System Rev. William E. Alberts A Trail of American Blood: From the White House to CBS News Ray McGovern Attacking Iran for Israel Eric Walberg Poisonous Espionage: Litvinenko and the New Cold War V. G. Smith The Second Death of Guy Môquet Luis J. Rodriguez "Social Cleansing" from Guatemala to LA Sheldon Richman Bush has Time to Run the World Walter Brasch A Real Halloween Scare Website of the Day Boogie Rocks! October 30, 2007 David Price Pilfered Scholarship Devastates Gen. Petraeus's Counterinsurgency Manual M. Shahid Alam The Pakistan Question Andy Worthington The Epiphany of Matthew Waxman: a Government Insider Turns Against Gitmo Patrick Cockburn The Bicycle Bomber of Baquba Anthony Papa The Twisted Logic of Drug Laws Floyd Rudmin What "All Options are on the Table" Really Means Sherwood Ross Giuliani and Torture Website of the Day The Worst Lobby? You Decide   October 29, 2007 Lisa Hajjar Inside Israel's Military Courts Joe DeRaymond The Politics of Lethal Injections Patrick Cockburn The High Stakes in Iraqi Kurdistan Isabella Kenfield / Roger Burbach Corporate Murder in Brazil Fred Gardner The Frivolous Investigation of Dr. Sterner Farzana Versey Caricaturing Islam Stephen Fleischman The Greening of the Oligarchy Marcelle Cendrars The Congressional Rip Cord Eamonn McCann Dan Keating, the Last of the Republican Irreconcilables Martha Rosenberg For Halloween, Ann Coulter Dresses as .... Ann Coulter! Website of the Day Campaign 2008   October 27 / 28, 2007 Alexander Cockburn So Much for Islamo-Fascism Awareness Jeffrey St. Clair The Dam That Isn't There James Bovard Breaking Down an Innocent Man: The FBI's Right to Threaten Torture Ralph Nader Beyond the Rule of Law M. Reza Pirbhai The Wahhabis are Coming, the Wahhabis are Coming! Robert Sandels Pay the Invaders! Cuba, Claims and Confiscations Jacob G. Hornberger Ruling By Decree Missy Beattie The Arsonists in the West Wing John Ross U.S. Eyes on Oaxaca Robert Fantina Condi Rice, the Imperial Cheerleader Ron Jacobs Labor at the Crossroads Ali Moayedian In Search of Logic About Iran David Michael Green What If We Had a President Who Didn't Give a Damn About Terrorism? Poets Basement Block, Davies and Ford Website of the Day Bring 'Em Home: a Music Video   October 26, 2007 Brian Cloughley Revenging Bloodshed Saul Landau Portrait of Rudy Ahmad Al-Akras Getting Justice in the HLF Case Franklin Lamb Does "Loving" Lebanon Mean Never Having to Say You're Sorry? Mike Whitney Murdoch's Cuckoo's Nest Dave Lindorff Home of the Brave? Reducing US Casualties By Killing More Civilians Alan Farago A Castro Behind Every Bush Yifat Susskind Conscripting Feminism into the War on Terror Website of the Day Dead Life in a Political Prison October 25, 2007 Jeffrey St. Clair / Joshua Frank Iraq's Environmental Crisis Manuel Garcia, Jr. Homes of the Crash Test Dummies Paul Craig Roberts The Fraudulent War on Terror Col. Dan Smith The Politics of Paranoia: Jane Harman's War on the First Amendment Alan Farago The Way to Paradise? Chris Kutalik The Lesson of the Chrysler Rebels Brian McKinlay John Howard and the Curse of Bush Cindy Sheehan Pete, Nancy, George and WW III Website of the Day Support the America's Program!   October 24, 2007 Natalie Washington-Weik White Fantasies About Race-Based Intelligence Andy Worthington The Guantánamo Suicides Michael Birmingham What Happened in Nahr Al Bared? Corporate Crime Reporter The Nuclear Democrats Tariq Ali Bush's Cuba Detour Farzana Versey Imagining Serfdom in a Scarf Dave Zirin White Noise James Murren What "Support Our Troops" Means Todd Chretien Looking Reality in the Face Martha Rosenberg What Came First, the Chicken or the Cage? Website of the Day Hillary Clinton on Nuclear Power   October 23, 2007 Ralph Nader Bush's Catastrophic Rhetoric Lawrence R. Velvel Goldsmith Stands Convicted--By His Own Mouth: How a Harvard Law Professor Justified Rendition at the Bush Justice Dept. Vijay Prashad The Nuke Deal is Dead Bonnie Bricker / Adil E. Shamoo The True Cost of War for Oil Dave Lindorff Christopher Dodd's Make or Break Moment Mike Whitney The Big Squeeze Farzana Versey Race with the Devil Stanley Heller / Ben George Something New from the Antiwar Movement Marcelle Cendrars You Too Can Confront the Holy Executive Regan Boychuk Burma and Haiti: Comparing the Media Response Website of the Day King Corn   October 22, 2007 Ishmael Reed Should Blacks Go Green? Marjorie Cohn Mukasey and the Constitution: Another Loyal Bushie Rannie Amiri Is There a Method to Bush's Middle East Madness? Diane Farsetta Time to Pay for Payola: the FCC and Pundit-for-Hire Armstrong Williams Todd Alan Price Renewing No Child Left Behind: A Hurricane Katrina Aimed at Public Education Robert Jensen The Quagmire of Masculinity Stephen Lendman The UAW Leadership Sells Out Its Workers Jemima Khan The Kleptocrat in an Hermes Headscarf Sunsara Taylor David Horowitz Can't Handle the Truth Binoy Kampmark No Ideas, Please: the Australian Elections Website of the Day Support the Center for International Policy     October 20 / 21, 2007 Alexander Cockburn The Man Who Builds Hillaryworld Tariq Ali A Massacre Foretold Jeffrey St. Clair Greetings from Echo Park Andy Worthington The Shame of Diego Garcia Mike Whitney Housing Flameout Daniel Wolff Play It As It Lays David Rosen Deviants on Parade: Folsom St. Fair and America's 4th Sexual Revolution Saul Landau David and Goliath in Iraq Ron Jacobs COINTELPRO and the Panthers Robert Fantina The Strange Love of Mitt Romney and Bob Jones David Heleniak Erring on the Side of Hidden Harm Joe Allen Hoffa Brown-Nosing at UPS Prairie Miller Lions for Lambs Poets' Basement Gibbons, Holt and Buknatski Website of the Weekend Crash!   October 19, 2007 John Ross Che's Mexican Legacy Sheldon Rampton Shared Values Revisited: a Case Study in the Limits of Propaganda Rahul Mahajan A Tale of Two Atrocities: Blackwater and Haditha Devra Davis Deadly Secrets: Chemical Pollution and Cancer Christopher Brauchli Blasphemous Science Wadner Pierre Haiti After the Deluge Bill Quigley Jailed for Justice Website of the Day Textbook Sticker Shock   October 18, 2007 Saree Makdisi Academic Freedom is at Risk Meg Dwyer What I Learned from 9/11: Who Wouldn't Want Us Dead? Alevtina Rea Sketches of Russian Life Norman Solomon The United States of Violence Kristoffer Larsson Something is Rotten in Sweden Harvey Wasserman Nukes are Back and So are We Website of the Day Eve Ensler: "A Filibuster Would Stop This War"   October 17, 2007 Steve Niva Counter-Insurgency, American-Style Andy Worthington The Case of Mohamed Jawad Alan Farago The Credit Shock Russell Mokhiber The New Billionaire-Criminal Class Sharon Smith Democrats, AWOL When It Mattered Mike Whitney Time for the Banks to Face the Hangman Robert Fantina Iraq, Iran and the US: Business as Usual Chris Irwin Where Have All the Rednecks Gone? Website of the Day Sex Ed at Oral Roberts University October 16, 2007 Peter Linebaugh Doris Lessing and the Dynamite Prize Paul Findley Follow the Leader: The Open Secret About the Israel Lobby Robert Bryce Inconvenient Corrections: Al Gore's Wacky Facts Uri Avnery The Mother of All Pretexts Paul Craig Roberts The Iraqi Genocide Ray McGovern What Did Nancy Pelosi Know About NSA Spying and When Did She Know It? Norman Solomon The Pro-War Undertow of the Blackwater Scandal Martha Rosenberg The Curse of Cymbalta William S. Lind Out of the Frying Pan Joel S. Hirschborn Time to Boycott Voting Website of the Day Pipeline Through Paradise: Big Oil's Arctic Play         Subscribe Online

Weekend Edition November 24 / 25, 2007 "A Generalized Meltdown of Financial Institutions" Take a Look at Professor Roubini's Crystal Ball By MIKE WHITNEY Reality has finally caught up to the stock market. The American consumer is underwater, the banks are buried in dept, and the housing market is in terminal distress. The Dow is now below its 200-Day Moving Average -- the first big "sell" signal. Anything below 12,500 could trigger program-trading and crash the market. The increased volatility suggests that we are watching a "real time" meltdown. International Business editor for the UK Telegraph, Ambrose Evans Pritchard, summed up yesterday's action in the Asian markets: "The global credit crisis has hit Asia with a vengeance for the first time, triggering a massive flight to safety as investors across the region pull out of risky assets. Yields on three-month deposits in China and Korea have plummeted to near 1pc in a spectacular fall over recent days, caused by panic withdrawals from money market funds and credit derivatives. "'This' is a severe warning sign,' said Hans Redeker, currency chief at BNP Paribas. 'Asia ignored the credit crunch in August but now we're seeing the poison beginning to paralyze the whole global economy.'" (Credit 'Heart attack' engulfs China and Korea" Ambrose Evans Pritchard,UK Telegraph,) The credit storm that began in the United States with subprime mortgages has spread to markets across the globe. In fact, the train has already crashed. What we're seeing now is the boxcars piling up on top of each other. On Tuesday Chinese government officials ordered a complete halt to bank lending to slow the speculative frenzy that has created an enormous equity bubble in the stock market. According to the Wall Street Journal: "Chinese authorities are slamming the brakes on bank lending, in their latest attempt to curb the runaway investment threatening to overheat what is soon to be the world's third-largest economy. In recent weeks, regulators have quietly ordered China's commercial banks to freeze lending through the end of the year, according to bankers in several cities. The bankers say that to comply, they are canceling loans and credit lines with businesses and individuals." ("China freezes lending to Curb Investing Frenzy" Wall Street Journal) The move illustrates how concerned the Chinese are that a slowdown in US consumer spending will trigger a crash on the Shanghai stock market. It also shows that the Chinese are having difficulty dealing with the inflation generated by the hundreds of billions of US dollars absorbed via the trade imbalance with the US. China is awash in USDs and that surplus is causing a steady rise in food and energy costs. This could be mitigated by allowing their currency to "float" freely. But a sudden, steep increase in the Chinese yuan's value could also send the world headlong into a global recession. For now, the lending freeze and price fixing appear to be the way out. Another sign that the markets have reached a "tipping point" appeared in a Reuters article on Wednesday; "Interbank Covered Bond Trading Halted on Volatility": "Renewed credit turmoil and volatility led the European Covered Bond Council (ECBC) on Wednesday to suspend inter-bank market-making in covered bonds until Monday, Nov. 26. The move is a sign of the stress in the covered bond market, which is dominated by German institutions that have almost a trillion euros of covered bonds outstanding. Covered bonds -- backed by pools of assets that remain on the borrower's balance sheet -- are usually highly liquid and typically rated triple-A by ratings agencies. The ECBC's recommendation is aimed at relieving the pressure on market makers who are forced to quote prices at a fixed bid-offer spread. "In light of the current market situation and in order to avoid undue over-acceleration in the widening of spreads, the 8-to-8 Market-Makers & Issuers Committee recommends that inter-bank market-making be suspended," the ECBC said in a release." Note: This isn't mortgage-backed junk that's being sold, but highly liquid bonds that are usually easy to cash in. The ECBC's action is a sign of pure desperation and indicates that credit paralysis has infected the entire euro banking system. Reuters: "Due to general market conditions and the specific mechanics of the inter-dealer market making it even seems possible that inter-dealer market making will not be resumed this year." That's bad. The mechanism for converting covered bonds into cash has broken down. The dollar took another pasting on Wednesday, sliding to $1.49 on the euro; another new record. Gold shot up to $814 per ounce. Oil continues to flirt with the $100 per barrel mark, and the yen rose to 107 per dollar forcing a sell-off of hedge fund assets levered through the carry trade. Jon Basile, economist at Credit Suisse, summed it up like this: "There's a heck of a lot of bad news out there." Indeed. In California Governor Arnold Schwarzenegger has joined with four mortgage lenders to freeze adjustable interest rates (ARMs) for some of the state's highest-risk borrowers; another unprecedented move. The Governor hopes to avoid a collapse of the California real estate market which has gone into a tailspin. Home sales have plummeted more than 40 per cent for the last two months. Prices have dropped sharply---roughly 12 per cent statewide. New construction has slowed to a crawl. Layoffs are steadily rising. Jumbo loans (mortgages over $417,000) have been put on the "Endangered Species" list. Even qualified borrowers can't get mortgages. Nothing is selling. California housing is "off the cliff". Schwarzenegger's plan to keep over-extended subprime mortgage-holders in their homes faces an uncertain future. What incentive is there for homeowners to continue paying exorbitant monthly rates when their payments are not applied to the principle? The homeowners would be better off bailing out, accepting foreclosure, and starting over with a clean slate. It's unrealistic to thinks that Schwarzenegger can stop the tidal wave of foreclosures that are sweeping across the state. An estimated 3 million homeowners will lose their homes nationwide. If you want to blame someone; blame Alan Greenspan. He's the one who created this mess. According to the economist Mike Shedlock: "The Fed caused the credit crunch by slashing interest rates to 1 per cent to bail out its banking buddies in the wake of a dotcom bubble collapse. All the Fed did was create a bigger bubble. This bubble is so big in fact that it cannot even be bailed out. It's the end of the line for a serially bubble blowing Fed. "So not only was this the biggest credit bubble in history, this was also the biggest transfer of wealth from the poor and middle class to the already enormously wealthy. That is the real travesty of justice regardless of whether or not the price tag is $1 trillion, $2 trillion, or $10 trillion." (Mike Shedlock, "Mish's Global Economic Trend Analysis") The problem has gotten so serious that even Secretary of the Treasury, Henry Paulson, is putting up red flags. Last week, Paulson ignited a sell-off on Wall Street when he made this statement: "The nature of the problem will be significantly bigger next year because 2006 [mortgages] had lower underwriting standards, no amortization, and no down payments....We're never going to be able to process the number of workouts and modifications (to mortgages) that are going to be necessary doing it just sort of one-off. I've talked to enough people now to know that there's no way that's going to work." The desperation is palpable. Like Schwarzenegger, Paulson is trying to get mortgage-lenders to provide a safety net for struggling borrowers who are defaulting on their loans. Paulson is calling for emergency legislation that will allow the Federal Housing Administration to play a greater role in the relief effort. The FHA has already expanded its traditional role by taking on hundreds of billions in extra debt just to keep a few "private" mortgage lenders and banks from going bankrupt. Of course, when Paulson's plan goes kaput and the debts pile up; it'll be the taxpayer that foots the bill. "Paulson also called the Senate's failure to pass legislation overhauling mortgage giants Fannie Mae and Freddie Mac frustrating," saying that the two government-sponsored entities need to be playing a bigger role in the housing market. "If we ever need them it's during times like today, and they're most valuable when there is distress in the mortgage market," he said. "I'd like to see them playing an even bigger role."(Wall Street Journal) Fannie and Freddie, have already posted enormous quarterly losses and don't have the capital reserves to put millions of subprime mortgage-holders under their "government-sponsored" umbrella. Paulson is just grabbing at straws. Similar troubles are brewing in the broader market where late-payments and defaults have spread to credit card debt and new car loans. Every area of "securitized" debt has suddenly veered off the road and into the ditch. Last week the Fed injected more credit into the teetering banking system than anytime since 9-11. No one has predicted the downward-spiral in the market more accurately than Nouriel Roubini. Roubini is a Professor at the Stern School of Business at New York University. His analysis appears regularly on his blogsite, Global EconoMonitor. Last week's prediction was particularly dire and is worth reprinting here: "It is increasingly clear by now that a severe U.S. recession is inevitable in next few months...I now see the risk of a severe and worsening liquidity and credit crunch leading to a generalized meltdown of the financial system of a severity and magnitude like we have never observed before. In this extreme scenario whose likelihood is increasing we could see a generalized run on some banks; and runs on a couple of weaker (non-bank) broker dealers that may go bankrupt with severe and systemic ripple effects on a mass of highly leveraged derivative instruments that will lead to a seizure of the derivatives markets... massive losses on money market funds with a run on both those sponsored by banks and those not sponsored by banks; ..ever growing defaults and losses ($500 billion plus) in subprime, near prime and prime mortgages with severe knock-on effect on the RMBS and CDOs market; massive losses in consumer credit (auto loans, credit cards); severe problems and losses in commercial real estate...; the drying up of liquidity and credit in a variety of asset backed securities putting the entire model of securitization at risk; runs on hedge funds and other financial institutions that do not have access to the Fed's lender of last resort support; a sharp increase in corporate defaults and credit spreads; and a massive process of re-intermediation into the banking system of activities that were until now altogether securitized." (Nouriel Roubini's Global EconoMonitor) "A generalized meltdown of the financial system". Looks like Chicken Little might have gotten it right this time; "The sky IS falling." Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com The New Print Edition of CounterPunch Contains the Explosive Investigation That Rocked the Pentagon! Stolen Scholarship Devastates General Petraeus's Counterinsurgency Manual Anthropologist DAVID PRICE exposes how the fabled Counterinsurgency Manual contains a chapter filled with "borrowed" quotations. Price reveals the crucial role in the debacle played by anthropologist Montgomery McFate. The University of Chicago Press is badly compromised. And much more. 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. 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Now Available! How the Press Led the US into War Buy End Times Now! New From CounterPunch Books The Secret Language of the Crossroads: HOW THE IRISH INVENTED SLANG By Daniel Cassidy WINNER OF THE AMERICAN BOOK AWARD! Click Here to Buy! Cassidy on Tour Click Here for Dates & Venues "The Case Against Israel" Michael Neumann's Devastating Rebuttal of Alan Dershowitz Click Here to Buy! Saul Landau's Bush and Botox World with a Foreword by Gore Vidal Click Here to Order!   Grand Theft Pentagon How They Made a Killing on the War on Terrorism         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"