my 'friend' Elaine has a way of putting things in perspective ...
(snip)" The headline here isn't in the regular news, only in one NY paper. If true, some people should be arrested. As usual. Time to talk about bank reserves and the differences between the Chinese system and the 'reformed' US system. China again, raised the reserve banks must hold. The US doesn't believe in holding reserves or using this to control out of control speculators. Instead, we use this goofy system which the Fed likens to driving a car with a solid wall for a windshield. Isn't that great? World inflation is rising and the US is encouraging speculators, not savers. Good grief in hell. I wish I could give us good news.
From Bloomberg:
Citigroup Inc. and JPMorgan Chase & Co. are leading a group of banks that are in talks with the U.S. Treasury about a plan to revive the asset-backed commercial paper market.
Discussions over the past two weeks addressed structured investment vehicles, units set up by banks to finance purchases of assets including subprime mortgage debt, said a government official and a banker with knowledge of the deliberations. Under one plan being considered by the banks, lenders would establish a fund of as much as $100 billion to buy assets from the SIVs, said two people familiar with the negotiations who declined to be identified because the talks are continuing.
Those scaly SIVs slithered into a hole and won't come out. This infuriates the very rich, tax haven pirates and even the hell hounds bay and woof with despair and fury that they can't use their SIVs to get even richer, making money out of thin air. The Treasury, run by Goldman Sachs, the biggest speculator firm in the US, is desperate to revive these reptilian critters. These 'asset-backed' papers are cute talk for 'a mountain of debt piled onto properties and businesses so speculators could make a fortune in fees and gambling operations based on these things.'
Since I am not a speculator and can't play one on TV, I can criticize this goofy get-rich-quick scheming. $100 billion bail out. Cute. This 'fund' which is a duex ex-Goldman Sachs machina, will fix the 'problem' of rich speculators unable to move their mountain of debt. It will move it...to the government banks who always rescue Goldman Sachs. Goldman Sachs and the pirates are like Little Nell: they put on this cute wig of blonde curls, they then tie themselves onto the train tracks and then, covering their curling, long mustaches, they pitch their voice to the falsetto and start wailing, 'There will be BLOOD in the streets! My friends will be losing their JOBS!' Until Bernanke and his buddies in the Treasury join hands and ride, Dudley Dorightwingers to the rescue.
If rescuing the false Little Nell from the Economic Reality Train means throwing unions and workers as well as all retirees and people on fixed income and savers onto the tracks to stop the Reality Train, they cheerfully do this.
But the Snidley Whiplashes of the speculator world then laugh demonically and rush off to distant pirate coves that charge no taxes and yell, 'Suckasssss!'
From Bloomberg:
``If the firms get together to improve the quality, that's a good development,'' said Mark Amberson, who runs the $5 billion Russell Money Fund for the Russell Investment Group in Tacoma, Washington. ``It would be a positive credit event if you wind up with a better vehicle.''
Unable to create a capitalist system anymore, the speculators are always creating 'vehicles'. These various pirate ships and fast cars then either sail off to tax havens run by Elizabeth II or they drive wildly and then crash in various communities, running over children without health insurance and little old ladies trying to hobble across the street to the local Savings & Loan to deposit their SS checks."(snip)
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