Newspaper logo  
Local Stories, Events

Ref. : Civic Events

Ref. : Arts & Education Events

Ref. : Public Service Notices

Books, Films, Arts & Education

Ref. : Letters to the editor

Health Care & Environment

09.20 Al Gore Is Still Optimistic [24:06 video; rather than future Frankenstein governments, how can we better ensure having brilliantly efficient & competent governments?]

09.20 Florence sparks pollution fears after excrement-filled 'hog lagoons' overflow

09.20 EU must end new petrol and diesel car sales by 2030 to meet climate targets – report

09.19 Air pollution linked to much greater risk of dementia

09.19 Shell and Exxon's secret 1980s climate change warnings [that capitalists suppressed this for continuing profit is the most unforgivable crime ever]Trump administration rolls back methane pollution rule despite harmful health impacts [continuing in the tradition of stupid capitalism at all costs]

09.18 'I was horrified that children are breathing air this dirty inside the school' [if your government isn't working, change it!]

09.17 California plans to show the world how to meet the Paris climate target

09.16 Universal healthcare was unthinkable in America, but not any more

09.16 Air pollution particles found in mothers' placentas

09.16 Portugal’s radical drugs policy is working. Why hasn’t the world copied it?

News Media Matters

09.20 Morning Edition’s Think Tank Sources Lean to the Right

09.19 Taibbi: Bernie Sanders’ Anti-Amazon Bill Is an Indictment of the Media, Too

Daily: FAIR Blog
The Daily Howler

US Politics, Policy & 'Culture'

09.18 Voters Are Ready for a Green New Deal. Are Democrats?

09.18 'This Election Is Last Chance to Stop Them': Kudlow Confirms Trump and GOP Ready to Gut Safety Net After Midterms [Yes, there are far too many sociopaths]

09.18 You'll miss Trump one day

Justice Matters
High Crimes?

09.20 Trump Should Be More Worried About the Brennan Dossier

09.19 'Killing a generation': one million more children at risk from famine in Yemen [Does America's government have empathy? Does it understand the concept of morality? The Saudi Air Force would be ineffective without U.S. military assistance...]

09.19 ‘Tied to trees and raped’: UN report details Rohingya horrors

09.16 Merchants of Death Profit from the Bombing of Children as a US-Backed War Goes Largely Ignored

Economics, Crony Capitalism

09.16 If Jeff Bezos wants to help low-income people why not just pay them better?

09.16 Central Banks Have Gone Rogue, Putting Us All at Risk

International & Futurism

09.18 Racist rioting in Chemnitz has reopened Germany’s east-west split [We are all mixed-race after 10,000 generations. Helping suffering people makes us feel good, so become their friends instead.]

09.18 'Unconscionable' and 'Appalling': In Affront to Those Fleeing US-Backed Wars and Persecution, Trump Slams Door on Refugees

09.17 For Whom the Climate Bell Tolls

09.17 How to Humanely Solve Europe's Migration Crisis

We are a non-profit Internet-only newspaper publication founded in 1973. Your donation is essential to our survival.

You can also mail a check to:
Baltimore News Network, Inc.
P.O. Box 42581
Baltimore, MD 21284-2581
This site Web
  Thinking About Toxicity
Newspaper logo


Thinking About Toxicity

by Fred Cederholm
Shortly the Federal Reserve Banking System will assume toxic mortgage CDOs from their current hosts at some form of discount, repackage them, and sell then them to fresh third-party investors at a string of open bid auctions. The devil will be in the details...
I’ve been thinking about toxicity. Actually I’ve been thinking about the unfolding recession/depression, Obama on 60 Minutes, toxic albatrosses, Uncle $ugar as a toxic hedge fund auctioneer, toxic national debt, toxic dollars, and our toxic Congress. Any substantive action last week on the unfolding recession/depression – now being marketed as “THE GREAT CORRECTION” – took a backseat to the brouhaha of $165 MILLION in bonuses paid to potentially culpable parties at AIG from the some $170 BILLION bailout money from the US taxpayers. You’d TH*NK a crime of epic proportions had occurred. Such already had happened, this was but a mini quarterly neo-installment. The $165 MILLION is less than one tenth of one percent of the bailout amount – big whoop! Still it “was a matter of principle” - we all know what happens when DC finds religion and gets principles.

You see we knew our Mr. fix-it-in-chief would more than follow the Bernanke performance on the CBS Newsmagazine 60 Minutes one week later. He would eclipse Ben head shot for head shot and sound byte for sound byte! The ever-present teleprompter was not visible as it was neither on the prior week’s Leno guest spot. Obama scored strike after strike with Steve Crofts on 60 Minutes unlike his “gutter ball” with Jay Leno. The war for hearts and minds about any current economic downturn(s) will continue to be waged and on the air waves and scheduled media events. Can’t dazzle ‘em with results? Baffle ‘em with creative word usage and excessive digits of yet another TRILLION dollar wunderkreig policy initiative! This week’s buzz word is “TOXICITY.” And, there is another TRILLION dollar fix-it plan being rolled-out to implement its program.

There is a certain amount of validity to the assessment that “the behemoths of banking” can not swim on to their golden medals if they continue to be bogged down by the albatrosses of “toxic assets.” The humor here is the coupled marriage of “toxic” – that which can kill you, with “assets” – that which defines your wealth and status. The items in question are those questionable investments which the financial giants are carrying on the plus side of their balance sheet. These are really “toxic liabilities,” but to dub them as such would acknowledge them for the negatives they are; and would define the players carrying them as insolvent, bankrupt, and deep six-ed. Besides who would assume them, or buy them, as TOXIC LIABILITIES in any effort to feather or to improve their own nests?

This will require the marketing magic of a hundred-fold Bernie Madoffs and Allen Stanfords. Uncle $ugar thru slight of hand as financed by the smoke, lights, and mirrors of the Federal Reserve Banking System will assume these invest tumors from their current hosts at some form of discount, repackage them, and sell them to fresh third-party investors at a string of open bid auctions. Will there be any reserve pricing? Will guarantees be made to purchasers? Will verifiable valuations be provided? Will specific properties/addresses be IDed to these reconstituted debt obligations? Lastly, what is the contingency plan if insufficient third party bidders even show up? HUMM..?

In Sunday’s broadcast, Obama criticized the prior Bush/Cheney Administration by stating that their essential failure was in not acknowledging the impracticalness and impossibility of continuing their policies down the road for the long term. I can see those words of assessment coming back to haunt Obama and his Administration in a fairly near term. We are a mere 50+ days into the administration and criticisms/questions are accelerating.

While I like the concept behind the toxicity model, it is so tempting to apply it to other looming disasters. This March 23rd our national debt exceeds $11 TRILLION $54 BILLION. When does our national debt become “toxic asset?” In March of 2006, the US ceased reporting the M3 money supply figures. Last week the Treasury announced that the FED may be forced to buy US Treasury securities unsold at auction by printing yet more money. How will this policy impact the money supply and when does it become a “toxic asset?” I’d argue that our profligate Congress is already “toxic” for us!

I’m Fred Cederholm and I’ve been thinking. You should be thinking, too.

Copyright 2008 Questions, Inc. All rights reserved. Fred Cederholm is a CPA/CFE, a forensic accountant, and writer. He is a graduate of the University of Illinois (B.A., M.A. and M.A.S.). He can be reached at

Copyright © 2009 The Baltimore News Network. All rights reserved.

Republication or redistribution of Baltimore Chronicle content is expressly prohibited without their prior written consent.

Baltimore News Network, Inc., sponsor of this web site, is a nonprofit organization and does not make political endorsements. The opinions expressed in stories posted on this web site are the authors' own.

This story was published on March 23, 2009.


Public Service Ads: