Not a clue. Been there as long as I can remember.
Not a clue. Been there as long as I can remember.
Spend It Like You Stole It
By Bill Bonner
04/29/11
[From the point of view of a modern economist, nothing stimulates better than a bank robbery. The money leaves the cold embrace of a bank vault; soon every pimp and bartender has his pockets full. Hot money gets around.
An article in Rolling Stone Magazine provides an illustration. It explains how one Wall Street wife, and one Wall Street widow, formed a company specifically to take advantage of the US government’s spending spree known as TALF. You’d think the feds had already done enough for the Mack family. John Mack runs Morgan Stanley. Had it not been for the generous support of the US government and the Federal Reserve, he might be parking cars. Instead, the feds bailed out the entire financial sector. First, it bought up Wall Street’s bad bets at inflated prices and then lent banks money at artificially low interest rates; they were invited to lend the money back to the federal government for a sure profit.
Business was so good at Morgan Stanley that the distaff side of the Mack household apparently couldn’t resist. In June, 2009, with her friend Susan Christy, Mack set up an investment company and put in $15 million. Then, they borrowed $220 million from the government. A brave move on their part? If you think so, you are as naive as a turnip. The fix was in; the two used the money to buy non-recourse loans at deep discount. If the loans increased in value, they would make a profit. If they fell, the government would take the losses. Much safer and more profitable than robbing banks. Two months later, Mr. Mack, perhaps with a little assistance from his blond helpmate, bought a limestone carriage house in Manhattan, with a 12-space garage for the getaway cars.]
http://dailyreckoning.com/spend-it-like-you-stole-it/
By Bill Bonner
04/29/11
[From the point of view of a modern economist, nothing stimulates better than a bank robbery. The money leaves the cold embrace of a bank vault; soon every pimp and bartender has his pockets full. Hot money gets around.
An article in Rolling Stone Magazine provides an illustration. It explains how one Wall Street wife, and one Wall Street widow, formed a company specifically to take advantage of the US government’s spending spree known as TALF. You’d think the feds had already done enough for the Mack family. John Mack runs Morgan Stanley. Had it not been for the generous support of the US government and the Federal Reserve, he might be parking cars. Instead, the feds bailed out the entire financial sector. First, it bought up Wall Street’s bad bets at inflated prices and then lent banks money at artificially low interest rates; they were invited to lend the money back to the federal government for a sure profit.
Business was so good at Morgan Stanley that the distaff side of the Mack household apparently couldn’t resist. In June, 2009, with her friend Susan Christy, Mack set up an investment company and put in $15 million. Then, they borrowed $220 million from the government. A brave move on their part? If you think so, you are as naive as a turnip. The fix was in; the two used the money to buy non-recourse loans at deep discount. If the loans increased in value, they would make a profit. If they fell, the government would take the losses. Much safer and more profitable than robbing banks. Two months later, Mr. Mack, perhaps with a little assistance from his blond helpmate, bought a limestone carriage house in Manhattan, with a 12-space garage for the getaway cars.]
http://dailyreckoning.com/spend-it-like-you-stole-it/
Citigroup donated $681,318 to Obama's 2008 campaign.
Morgan Stanley $513,623
JPMorgan Chase & Co $700,808
UBS $529,869
Goldman Sachs $1,035,095
It was a bargain for them!
Yes Indeed.
If it wasn't a good deal they wouldn't have bought off, err, I mean contributed in the first place.
They'll be back in 2012.
Does it have anything to do with Books' tendency to pull things out his ath and thow them at decent people? Because, if it does,I think I know what your talking about/
So, are you guys agreeing with Perry's comment on Bernanke?
If you are talking about the articles quoted above? Maybe.
Rick Perry said "If this guy prints more money between now and the election, I don't know what y'all would do to him in Iowa, but we would treat him pretty ugly down in Texas."
So, I guess Perry was OK with the money creation back then but if he prints more money between now and the election it's treasonous.
See how that works?
See the trick for the bankers now is to pay off Perry and get him elected... Then Goldman Sachs still wins and we think we've actually changed something in DC.
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