Why The $700 Billion Landgrab By Wall Street Won't Work, And Other Miscellanea
Check out the latest by the Easter Bunny.
America is Wall Street's bitch. It's official.
Not that anyone should be surprised.
Let's face it, the same lying cheats who created the financial swindle of the century, via now worthless CDO and CMO products, who took out hundreds of billions of dollars in profits directly attributable to the creation of these instruments (a large number of which are likely worthless, as they are backed by non-existent mortgages or the same mortgages re-used countless times), created a crisis of their own devising (by shorting those same CDOs into the ground, thereby reducing the value of the collateral value, thus creating single handedly the "credit crisis"), after lobbying hard in 2004 to eliminate rules that barred the industry from eliminating reality-based loan loss reserves and levering up to dangerous levels, have put the pork to the nation's taxpayers yet again.
Never mind that the bailout plan isn't working. Credit markets are still locked up, because the recipients of the bailout aren't doing what they are supposed to with the money - lending it out. No, instead, they are holding on to it, which is sort of the same as saying the plan never would have worked given the character of those involved. But what are they doing with all the taxpayer money they are holding onto?
See below from the UK's Guardian:
Wall Street banks in $70bn staff payout Pay and bonus deals equivalent to 10% of US government bail-out package
- Morgan Stanley $10.7bn
- Goldman Sachs $11.4bn,
- Morgan Stanley $10.73bn,
- JP Morgan $6.53bn
- Merrill Lynch $11.7bn.
Financial workers at Wall Street's top banks are to receive pay deals worth more than $70bn (£40bn), a substantial proportion of which is expected to be paid in discretionary bonuses, for their work so far this year - despite plunging the global financial system into its worst crisis since the 1929 stock market crash, the Guardian has learned.
Staff at six banks including Goldman Sachs and Citigroup are in line to pick up the payouts despite being the beneficiaries of a $700bn bail-out from the US government that has already prompted criticism. The government's cash has been poured in on the condition that excessive executive pay would be curbed.
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Mark Mitchell Interview
Interviewed by Thom Hartmann 10/15/08
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Is the last laugh in already?
Video Goldman, Merrill, Lehman, Bear, Morgan Stanley Meet with the SEC 2004 to lobby for more leverage.
Goldman, merrill, lehman, bear, morgan stanley meet with SEC in 2004 to ask for an exemption to take on more risk.
They Yuk it Up, now we suck it up.