AIG Will Be Paying for Legal Defense of Goldman Sachs’ Top Executives; They Have Insurance Underwritten by AIG
April 25th, 2010Unless the AIG imbroglio is untangled, the rest of this is nonsense.
—Elliot Spitzer: “There are no coincidences in this world. None.”
Who bailed out AIG?
The U.S. Taxpayer.
So, who’s actually going to pick up the tabs to both prosecute and defend Blankfein and the gang?
The U.S. Taxpayer.
I don’t understand the significance of this Kabuki theater production, but for sheer batshit insanity points, this somehow feels different; like it’s going to be a tough one to top anytime soon.

Via: Bloomberg / Business Week:
American International Group Inc. may be required to pay to defend lawsuits against Goldman Sachs Group Inc.’s top executives, including Chairman and Chief Executive Officer Lloyd Blankfein, under directors and officers insurance policies held by the company.
AIG, which was rescued from collapse by the U.S. government, sold so-called Side A directors and officers’ coverage to New York-based Goldman Sachs, according to a person with knowledge of the policy. Goldman Sachs was sued last week by the U.S. Securities and Exchange Commission, which claimed it misled investors about collateralized debt obligations tied to subprime mortgages in 2007.
“If it were a derivative suit against Goldman, defense costs would be covered, and I’d prefer not to be a primary on the policy,” said John Degnan, vice chairman and chief operating officer of AIG competitor Chubb Corp., while answering a question about Goldman Sachs on an April 22 earnings call.
Cryptogon Reader Signs Up for Hosting with BlueHost
April 25th, 2010Thanks to the owner of selfsufficientpodcast.com for signing up for hosting with BlueHost. Cryptogon received $90.
New Telescope Called “Lucifer” Built Next to Vatican Observatory
April 25th, 2010Via: Popular Science:
A new instrument with an evil-sounding name is helping scientists see how stars are born. Lucifer, which stands for (deep breath) “Large Binocular Telescope Near-infrared Utility with Camera and Integral Field Unit for Extragalactic Research,” is a chilled instrument attached to a telescope in Arizona. And yes, it’s named for the Devil, whose name itself means “morning star.” But it wasn’t meant to evoke him, according to a spokesman for the University of Arizona, where it is housed.
The instrument is chilled to -213 Celsius, about -351 F, to allow for near-infrared observations. That wavelength is important for understanding star and planet formation, as well as observing very distant and very young galaxies. Lucifer has three interchangeable cameras for imaging and spectroscopy in different resolutions. It has a large field of view and high-res capabilities, which allow a wide range of observations.
Lucifer is part of the Large Binocular Telescope, which happens to be right next to the Vatican Observatory on Mt. Graham in Tucson. That’s right, the Vatican has an observatory in Arizona, manned by Jesuit astronomers. Now its next-door neighbor is named for the Devil.
Scientists at five German universities designed the instrument, and they came up with the name, according to Daniel Stolte, a spokesman for the University of Arizona. Stolte — who is German — explained that the team was tossing around names, looking for an acronym that would fit all the technical terms.
“In Germany, they wouldn’t have the same hesitation that Americans would have, since it’s a very secular country,” he said. “I may be completely off, but that’s just my hunch — for us Germans, Lucifer just sounds cool. It’s more historical than emotional.” No matter your religion, the photos are certainly cool.
Blizzard Makes Over One Million Dollars Per Hour Selling Celestial Steed Video Game Horses
April 25th, 2010I’ll see your Farmville and raise you a Celestial Steed.
Via: Dvorak:
Blizzard has had unprecedented success with virtual item sales on the release of the Celestial Steed – a special in-game mount for World of Warcraft that costs the princely sum of $25, €20 or £17.
According to WOW.com (via GamesIndustry.biz), a seven-hour queue of 140,000 people had formed within three hours of the mount’s release last week.
That already represented revenue of $3.5 million – or more than a million dollars an hour – on sales of what is, essentially, just an art asset for the subscription game. The translucent flying horse leaves trails of stardust behind it as it gallops across the sky.
Related: Woman Prostituted Herself for Virtual Equipment Used in World of Warcraft
New Austerity a Precondition for Greek Aid: Germany
April 25th, 2010Via: Reuters:
Greece must agree to tough new austerity measures before it receives any financial aid from the European Union and failure to do so would endanger such support, German Finance Minister Wolfgang Schaeuble told a newspaper.
…
Opposition to aid for Greece runs deep in Germany and Chancellor Angela Merkel, who faces a crucial regional election on May 9, has been at pains to stress that aid will only flow if Athens takes further steps to cut a budget deficit which soared to 13.6 percent of gross domestic product (GDP) last year.
Schaeuble said a “tough restructuring program” for the next years was “unavoidable and an absolute prerequisite” if Germany and the EU were to approve the aid Greece has requested.
But he also made clear that Germany had to be ready to support Greece to ensure the stability of the common currency.
“We are defending the stability of the euro, because Germany benefits (from the currency) at least as much as all the others. Help for Greece is therefore not a waste of taxpayer money, but a move based on fundamental German interests.
Google: Biggest Wardriver of Them All?
April 25th, 2010Via: Register:
Google’s roving Street View spycam may blur your face, but it’s got your number. The Street View service is under fire in Germany for scanning private WLAN networks, and recording users’ unique Mac (Media Access Control) addresses, as the car trundles along.
Germany’s Federal Commissioner for Data Protection Peter Schaar says he’s “horrified” by the discovery.
“I am appalled… I call upon Google to delete previously unlawfully collected personal data on the wireless network immediately and stop the rides for Street View,” according to German broadcaster ARD.
Spooks have long desired the ability to cross reference the Mac address of a user’s connection with their real identity and virtual identity, such as their Gmail or Facebook account.
Other companies have logged broadcasting WLAN networks and published the information. By contrast Google has not published the WLAN map, or Street View in Germany; Google hopes to launch the service by the end of the year.
But Google’s uniquely cavalier approach to privacy, and its potential ability to cross reference the information raises additional concerns. Google CEO Eric Schmidt recently said internet users shouldn’t worry about privacy unless they have something to hide. And when there’s nowhere left to hide…?
Stephen Hawking: Extraterrestrials Are Almost Certain to Exist; If We Encounter Them, Chances Are We’re Doomed
April 25th, 2010If Martians fell from the sky
What would that do to God?
Would we put the weapon down
Or aim it up at the sky
No one would believe it
Except the fucking nut jobs
They’d laugh and cry
“We told you so!”
Dave Matthews Band — Time Bomb
The mainstream media is, increasingly, driving the meme that we need to prepare for a hostile alien invasion.
Apply simple logic to this: Would humanity, with our petroleum powered junk buckets and pop guns, be capable of defending the Earth against extraterrestrials who can skip from star to star, or warp space, etc? The answer is obvious: No way.
Here’s a more likely scenario: The usual suspects are looking to sink their blood funnels into new and improved multi-billion dollar boondoggles. A fake alien invasion would be the ultimate false flag operation, but with the success of 9/11, why not shoot for the stars?
Via: Times:
THE aliens are out there and Earth had better watch out, at least according to Stephen Hawking. He has suggested that extraterrestrials are almost certain to exist — but that instead of seeking them out, humanity should be doing all it that can to avoid any contact.
The suggestions come in a new documentary series in which Hawking, one of the world’s leading scientists, will set out his latest thinking on some of the universe’s greatest mysteries.
Alien life, he will suggest, is almost certain to exist in many other parts of the universe: not just in planets, but perhaps in the centre of stars or even floating in interplanetary space.
Hawking’s logic on aliens is, for him, unusually simple. The universe, he points out, has 100 billion galaxies, each containing hundreds of millions of stars. In such a big place, Earth is unlikely to be the only planet where life has evolved.
“To my mathematical brain, the numbers alone make thinking about aliens perfectly rational,” he said. “The real challenge is to work out what aliens might actually be like.”
The answer, he suggests, is that most of it will be the equivalent of microbes or simple animals — the sort of life that has dominated Earth for most of its history.
One scene in his documentary for the Discovery Channel shows herds of two-legged herbivores browsing on an alien cliff-face where they are picked off by flying, yellow lizard-like predators. Another shows glowing fluorescent aquatic animals forming vast shoals in the oceans thought to underlie the thick ice coating Europa, one of the moons of Jupiter.
Such scenes are speculative, but Hawking uses them to lead on to a serious point: that a few life forms could be intelligent and pose a threat. Hawking believes that contact with such a species could be devastating for humanity.
He suggests that aliens might simply raid Earth for its resources and then move on: “We only have to look at ourselves to see how intelligent life might develop into something we wouldn’t want to meet. I imagine they might exist in massive ships, having used up all the resources from their home planet. Such advanced aliens would perhaps become nomads, looking to conquer and colonise whatever planets they can reach.”
He concludes that trying to make contact with alien races is “a little too risky”. He said: “If aliens ever visit us, I think the outcome would be much as when Christopher Columbus first landed in America, which didn’t turn out very well for the Native Americans.”
The completion of the documentary marks a triumph for Hawking, now 68, who is paralysed by motor neurone disease and has very limited powers of communication. The project took him and his producers three years, during which he insisted on rewriting large chunks of the script and checking the filming.
John Smithson, executive producer for Discovery, said: “He wanted to make a programme that was entertaining for a general audience as well as scientific and that’s a tough job, given the complexity of the ideas involved.”
Hawking has suggested the possibility of alien life before but his views have been clarified by a series of scientific breakthroughs, such as the discovery, since 1995, of more than 450 planets orbiting distant stars, showing that planets are a common phenomenon.
So far, all the new planets found have been far larger than Earth, but only because the telescopes used to detect them are not sensitive enough to detect Earth-sized bodies at such distances.
Another breakthrough is the discovery that life on Earth has proven able to colonise its most extreme environments. If life can survive and evolve there, scientists reason, then perhaps nowhere is out of bounds.
Hawking’s belief in aliens places him in good scientific company. In his recent Wonders of the Solar System BBC series, Professor Brian Cox backed the idea, too, suggesting Mars, Europa and Titan, a moon of Saturn, as likely places to look.
Similarly, Lord Rees, the astronomer royal, warned in a lecture earlier this year that aliens might prove to be beyond human understanding.
“I suspect there could be life and intelligence out there in forms we can’t conceive,” he said. “Just as a chimpanzee can’t understand quantum theory, it could be there are aspects of reality that are beyond the capacity of our brains.”
DARPA Tested Hypersonic Glider Related to Quick-Response Global Strike System, and Then Claims to Have Lost Contact with It
April 24th, 2010There has been a lot of coverage of the launch of the X-37b, but as the right hand was waving at us, did you notice what the left hand was up to?
The same day, the U.S. launched a Minotaur rocket that reportedly carried a Hypersonic Test Vehicle, which is a test platform for the Prompt Global Strike program. This is from DARPA:
Falcon HTV-2
The Falcon program objectives are to develop and demonstrate hypersonic technologies that will enable prompt global reach missions. The technologies include high lift-to-drag techniques, high temperature materials, precision navigation, guidance, and control, communications through plasma, and an autonomous flight safety system. Leveraging technology developed under the Hypersonic Flight (HyFly) program, Falcon will address the implications of hypersonic flight and reusability using a series of hypersonic technology vehicles (HTVs) to incrementally demonstrate these required technologies in flight. The HTV-2 program will demonstrate enabling hypersonic technologies for future operational systems through rocket-boosted hypersonic flights with sufficient cross-range and down-range performance to evaluate thermal protection systems, aerodynamic shapes, maneuverability, and long-range communication for hypersonic cruise and re-entry vehicle applications. Technologies developed under Falcon would also allow for a low cost, responsive Small Launch Vehicle (SLV) capable of launching small satellites into low earth and sun synchronous orbits and will provide the nation a new, small payload access to space capability. The Falcon program addresses many high priority mission areas and applications such as global presence and space lift.
I took a look around to see if there were any new (public) developments with regard to Prompt Global Strike.
This recent piece from the New York Times states that an early version of the system wouldn’t be deployed until 2014 or 2015, but that the full package wouldn’t be ready until 2017 to 2020:
The Pentagon hopes to deploy an early version of the system by 2014 or 2015. But even under optimistic timetables, a complete array of missiles, warheads, sensors and control systems is not expected to enter the arsenal until 2017 to 2020, long after Mr. Obama will have left office, even if he is elected to a second term.
But look back on the statement from U.S. Secretary of Defense Robert Gates on 11 April 2010 on Meet the Press:
We have, in addition to the nuclear deterrent today, a couple of things we didn’t have in the Soviet days. We have missile defense now, and that’s growing by leaps and bounds every year; significant budget increase for that this year, both regional and the ground-based interceptors. And we have prompt global strike affording us some conventional alternatives on long-range missiles that we didn’t have before.
We have Prompt Global Strike?
That’s interesting.
So, which is it? Is a Prompt Global Strike capability as far away as 2020, as we read in the New York Times, and other mainstream publications that mention the program, or is it, “We have prompt global strike”?
Now, DARPA claims to have lost contact with the Hypersonic Test Vehicle…
*wink*
So, what did it go on to do after DARPA claims to have lost contact with it?
Via: Space Flight Now:
A new Minotaur launch vehicle derived from retired missile parts successfully blasted off from the California coast Thursday, but officials lost contact with a hypersonic glider testbed for a U.S. military quick-response global strike system.
…
A small winged glider designed by Pentagon researchers was the payload for Thursday’s launch. The craft, called the Hypersonic Test Vehicle 2a, apparently did not complete all of its planned maneuvers to demonstrate new hypersonic flight systems.
“Preliminary review of technical data indicates the Minotaur Lite launch system successfully delivered the Falcon HTV 2 glide vehicle to the desired separation conditions,” the Defense Advanced Research Projects Agency said in a statement. “The launch vehicle executed first of its kind energy management maneuvers, clamshell payload fairing release and HTV 2 deployment.”
…
The HTV 2a payload launched Thursday separated from the Minotaur high in the upper atmosphere at a velocity more than 20 times the speed of sound.
But tracking assets lost contact with the triangle-shaped craft 9 minutes after liftoff. “An engineering team is reviewing available data to understand this event,” DARPA said in a written statement.
After its release from the Minotaur third stage, the craft was designed to try out its aerodynamic control system and conduct sweeping turns to bleed off excess energy and demonstrate its cross-range capabilities.
The DARPA press release did not specify whether any of the test maneuvers were completed before controllers lost communications with the craft.
The HTV 2a was supposed to glide over the Pacific Ocean at more than 13,000 mph and splash down in the sea near the U.S. Army’s Reagan Test Site at Kwajalein Atoll.
The HTV program is managed by DARPA, a Pentagon research and development division focusing on high-tech demonstrations.
Officials say the HTV demonstrations were supposed to test enabling technologies that could eventually be employed by an operational system capable of prompt global response missions.
DARPA says the HTV craft features a high lift-to-drag aerodynamic shape, lightweight thermal protection structures and autonomous guidance, control and flight safety systems.
The HTV was built by Lockheed Martin Corp.
More: Pentagon Looks to Revive Nazi Space-Bomber Plan
Failed German Bond Auction: Who Bails Out the Governments That Have Bailed Out the Feckless?
April 24th, 2010WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
This is a decent article, but it contains some rat poison:
This just doesn’t happen in major government bond markets. In the U.S. Treasury market, if the total of bids isn’t double the total of securities being offered, it’s considered horrific auction.
Oh really?
Please see: In 2009, the Federal Reserve Bought 80% of U.S. Debt to see how U.S. debt auctions aren’t failing.
Via: Barron’s:
WHAT IF THEY GAVE a bond auction and nobody came?
That is the ultimate doomsday scenario with the unprecedented fiscal deficits around the world — that governments’ credit lines could run out and they couldn’t raise the cash they needed in the bond markets. At that point, after bailing out banks that had faced the same dilemma, who’s there to bail out the governments?
That hasn’t happened in Greece, ground zero in the European debt crisis. Earlier this week, Greece found ready and willing buyers for its short-term bills, albeit at yields twice what the government had to pay just a few months ago.
It was Germany that didn’t receive sufficient bids to sell all the bonds it offered. In other words, the auction failed.
This just doesn’t happen in major government bond markets. In the U.S. Treasury market, if the total of bids isn’t double the total of securities being offered, it’s considered horrific auction.
But, Wednesday, the auction of €3 billion (just over $4 billion) of 30-year German government bonds, or bunds, attracted only €2.752 billion in bids and wound up selling €2.458 billion at a yield of 3.83%.
The Wall Street Journal attributed the shortfall in demand to a combination of the bonds’ pricing and heavy supplies of new issues in the European bond markets.
And a spokesman for the German debt agency downplayed the results, saying these things happen ever so often.
But other, more disinterested observers see the failed German bond auction as an expression of the market’s concern about the effect of the proposed bailout of Greece on the finances of the core eurozone countries that will have to foot the bill, most notably German taxpayers.
All eurozone bond trading is frozen while the Greek government negotiates the bailout package provided by the European Commission and the International Monetary Fund, says from a keen observer of the global capital markets. So, he wouldn’t put too much weight just on the German bund auction flop.
Meantime, Greek government bonds spreads over bunds continued to widen Wednesday, with the yield on the 10-year note hitting 8.25%, up from 8% Tuesday.
But, this market pro continues, Greece will need to be supported with some €10 billion a year from German taxpayers — about 10% what they had to pay for unification with their brethren in communist East Germany in the 1990s. And the French would have to kick in about half as much, or €5 billion annually. All told, he sees some the rest of the eurozone diverting a total of €100 billion a year to Greece in de facto transfer payments, to the detriment of their economies.
More likely, this observer continues, voters in the rest of the eurozone will revolt and the euro will cease to exist in its present form — after a lot of good money was wasted to save it. Given that prospect, taking down long German bunds flies against rationality.
Research Credit: JF
GM Pays Back TARP Loans With…TARP Loans
April 24th, 2010Why not? It works for Uncle $cam!
Via: Reason:
Have you driven a Ford lately? That might be a good idea, as it seems that GM’s claims to have repaid its TARP loans in full and ahead of schedule are, well, bullshit. Sen. Charles Grassley (R-Iowa) has sent a letter to Treasury Secretary Tim Geithner pointing out that GM has apparently paid back its TARP money with…more TARP money.
Research Credit: JF


