Geithner’s Oligarchs

Looters

It is a stark contrast when you take into account how the Obamanation adminstration handles the wankers bankers with how they are handling the auto companies. Who has control of this nation is blatantly obvious. And it is not We the Peoples.

If you haven’t seen this video on the Shitener plan(tm) and how we’re about to be robbed, hurry! Before it’s to late! Unelected fraudsters (Shitener, Bukkake, Summers & Rubin- you know, the usual suspects) are about to commit a daylight robbery of brazen proportions.  It’s the biggest wealth transfer in the entire history of nations… and you and me, why we are the ones being robbed. Will we let this stand?

Hey! You! Obama! Tell the truth! Unless you’re looking forward to becoming Herbert Hoover… stop listening to Turbo Timmeh Shitener and Benron Bukkake and Larry ‘Nuclear’ Winter and Robert the Sandwich!

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“As soon as you become dependent upon the biggest guy in the cell block for protection, you become his bitch.” -Barry Ritholtz

Ah so that explains it

The abnormal claim by jpm, shiti and bofa that they were going to be profitable the first two months of Q1 was, to most people with brains, blantantly bogus. The only question was ‘how‘ bogus?

The reason these wankers bankers can claim they are doing ‘well’ is down to three little initials: AIG.

Yes, AIG generously paid off their counter CDS trades with the extortion boost from taxpayer dollars.

AIG is the golden goose.

The taxpayer is the gift of foie gras as magic filtration system that keeps on giving.

And yes, Turbo Timmy Shitener was on board with this outrage.

Have a good evening.

[zero hedge]

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We are all goose liver now.

P.S.A.

[Hat tip]

The Shitener Plan: Exposed

Unreal. Should henceforth be known as The Great Swindle.

Wall Street is the Sickness

And Nassim Taleb has the cure…

Mr. Taleb Goes to Washington [The Big Picture]

First, he says, we have to unmask the charlatans of risk like Myron Scholes. To Taleb, Scholes is the Great Oz in this Emerald City because his work on options and derivatives allowed the whole of the financial system to adopt poorly understood products-like the ones that brought AIG down-that hide risk. To Taleb, Scholes’ academic work, which enabled the widespread use of complex derivatives, was like “giving children dynamite.”

“This guy should be in a retirement home doing Sudoku,” Taleb says. “His funds have blown up twice. He shouldn’t be allowed in Washington to lecture anyone on risk.”

Scholes was one of the principal partners and founders of Long Term Capital Management, the hedge fund that blew up big time in 1998… in the exact same way(under-capitalized, over-leveraged) to the fucking mess we have on our hands today.

If you can “thank” only one person for the predicament we’re in, you can thank Easy Al Greenspank. After him, you can thank Myron.

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”The world changes, and we have to change with it,” said Senator Phil Gramm of Texas, who wrote the law that will bear his name along with the two other main Republican sponsors, Representative Jim Leach of Iowa and Representative Thomas J. Bliley Jr. of Virginia. ”We have a new century coming, and we have an opportunity to dominate that century the same way we dominated this century. Glass-Steagall, in the midst of the Great Depression, came at a time when the thinking was that the government was the answer. In this era of economic prosperity, we have decided that freedom is the answer.” NYTimes article, 1999

Naked Power Grab

By the Fed., Inc. and Treasury. Each are actively soliciting through baby steps the ‘additional powers‘ they so crave. This is  grand-standing by the very same people, all creatures of Wall Street, who now have slipped back in through the revolving door and for now hold regulatory posts (fox, meet henhouse) for this toothless regime, should make each of us very very suspicious.

Without actually acknowledging there is a problem per se, Turbo Timmeh Shitener thinks the solution is him and his cronies co-horts having more bigger, more faster, more and more power over more and more businesses, such as hedge funds and insurance (the states are supposed to regulate insurance, but the Fed was always stepping on their toes).

I think they kinda mean somthing like a politburo.

Yet where were the feds when Made-off was running his Ponzi scheme for FORTY FUCKING YEARS eh? SEC? In da house? No? Where the fuck are ye then?

SEC sock puppets got treated to a free seven-course lunch (who sez that don’t exist?) and all the coke they could snort and hookers they could screw, and gave Bernie and his merry band of Ponzis a pass until the next year. Rinse, lather, repeat. Times forty.

Sure, TT, *more power*, you stumbled upon the answer;  Oh wait, I forgot the question. How do we stop this sort of thing from happening again?

Well, um, let’s see what happens when you cannot/do not know how to use the powers and tools already provided?

Oh right, we get a big fucking mess like we have right now.

Yeah, thanks for that, TT. You are a *star*.

Meantime we’re supposed to be relieved and reassured that the next Even Greater Depression (GD3?) forty years hence will deffo not be happening.

Color me relieved! I can stop worrying now. Everyone, no need to worry anymore, the next GD ain’t never gonna happen! Whoopee!

C’mon. The regulator guys always had the tools. The just didn’t realize they weren’t supposed to be the tools.

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“Finance should be the grease that keeps the engine going. Yet in our last decade, finance became the actual engine. That is the root of the problem. ” -Dr. Housing Bubble

Oil, Gold, Corporate family (as in mafia) values

Where we are headed: Peak oil and the financial crisis [Gail the Actuary]

LET IT DIE: Rushkoff on the economy [Douglas Rushkoff]

Not me, pal

Dear A.I.G., I Quit!

“DEAR Mr. Liddy,

“I started at this company in 1998 as an equity trader, became the head of equity and commodity trading and, a couple of years before A.I.G.’s meltdown last September, was named the head of business development for commodities. Over this period the equity and commodity units were consistently profitable — in most years generating net profits of well over $100 million. Most recently, during the dismantling of A.I.G.-F.P., I was an integral player in the pending sale of its well-regarded commodity index business to UBS. As you know, business unit sales like this are crucial to A.I.G.’s effort to repay the American taxpayer.

The profitability of the businesses with which I was associated clearly supported my compensation. I never received any pay resulting from the credit default swaps that are now losing so much money. I did, however, like many others here, lose a significant portion of my life savings in the form of deferred compensation invested in the capital of A.I.G.-F.P. because of those losses. In this way I have personally suffered from this controversial activity — directly as well as indirectly with the rest of the taxpayers.”

{Hugz}

-Jake DeSantis
V.P., Financial Products

[NYT]

The Fix is in?

My guess is that behind the scenes, Geithner has arranged a kind of J.P. Morgan moment.

I think that Treasury has already lined up participants for the “Legacy Loans Public-Private Investment Fund” and persuaded them to offer prices so high that despite the put, investors will expect to take a major loss. My little conspiracy theory is that the Blackrocks and PIMCOs of the world, the asset managers who do well by “shaking hands with the government”, will agree to take a hit on relatively small investments in order first to help make banks smell solvent, and then to compel and provide “good optics” for a maximal transfer from government to key financial institutions. …

Why would PIMROCK go along with this? Because they feel it is their patriotic duty to work with the government for the good of the financial system, even if that involves accepting some sacrifices. And because they hold $100B in J.P. Citi of America bonds, and they’ve received assurances that if we can get the nation out of the financial pickle it’s in, there will be no haircuts on those bonds. “Shaking hands with the government” means that nothing ever has to be put in writing.

[interfluidity]

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“The idea that fixing legacy banks is prerequisite to fixing the broad economy is a lie perpetrated by legacy bankers.” -Steve Randy Waldman