All Things
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Miracle in Iceland Iceland has a population of some 300,000 people. In 2008 it suffered the same problems experienced by our country, by Greece, by Italy, by Spain, only worse– people and banks had borrowed a great deal of money on the strength...
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p { margin-bottom: 0.08in; } Beware of the private profit motive Everybody loves an entrepreneur! While the news from Afghanistan is uniformly bad, a number of recent news reports see a glimmer of hope in the rise of Afghanistan entrepreneurs....
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p { margin-bottom: 0.08in; } How scuzzy can you get? I am quoting below a story from the Grassroots International Insight Newsletter: “When news of Monsanto donating hybrid seeds to Haiti after the devastating earthquake last January began to spread...
- Whom Should We Trust?
A Boston business owner has entered the primaries to fill the seat of the late Senator Kennedy. He believes himself particularly well-qualified because he is a successful business man. Where has he been during the last year? We are in the middle of the...
- Regulating The Markets
Last week, Sen. McCain came out in favor of regulating financial markets. That is a departure from traditional Republican orthodoxy that is truly astonishing. For 100 years or more, Republicans and many Democrats have told us that markets are "self-regulating."...
All Things
Lovethatbank!
DoyourememberthosepostersofBarackObamawith the legend “HOPE” atthebottom?
Whoever made those posters madeamistake.Thelegendshouldhaveread“BANKS.”
Wehaveknownthisforalongtime:thecurrentadministrationlikesbanksawholelot.Butinthelastfewdayswehavefoundouthowmuchthisadministrationlovesbanks.Itturnsoutthatstartingin2008TheFederalReserveBanklentlargeamountsofmoneytoavarietyofverylargebanks—ononedaytheylentout1.3trillion.TheymusthavethoughtthatthiswouldnotlookgoodwhileordinaryAmericansweresuffering,becausetheyfoughtreallyhardtokeepthewholethingsecret.Thebanksgotloansatverylowinterestandthenputitinaccountsthatpaidhigherinterest.Result:thebanksmade$13billion.
Whatarefriendsfor?
Anotherinterestingquestion:whosemoneywastheFedlendingtothebiggestbanks?
ThenextdayweheardthattheSECsettledwithCitibankfor$285 millionsinpenaltiesforconvertingsub-primemortgagesintosecurities,sellingthosesecuritiestoinvestorswithouttellingthemthattheywereaveryriskyinvestment.Then,thebanksmadebetsthattheseinvestorswouldlosetheirshirts.TheinvestorsdidlosetheirshirtandCitibankmadeatidyprofit.Thatlookssuspiciouslylikefraud.IfyouandIdidstufflikethatwewouldfindourselvesinfrontofajudge.ButnotCitibank.TheirfriendsattheSECallowedthemtopayafinewithoutadmittinganywrongdoing.Unfortunatelytheyranintoajudgewhothoughtthatthiswasabittoomuchandsherefusedtoacceptthedeal.ButtheSECseemedfinewithit. Other big banks have since then been allowed to pay fines without admitting wrongdoing for similar scuzzy maneuvers.
Today,theAttorneyGeneralofMassachusettsfiledsuitagainstBankofAmericaandfourotherBIGbanksforforeclosingonloansthattheydidnotown,forpromisingtomodifysomeloansandthenforeclosinganywaywithoutmodifying.Theyarealsoaccusedofhavingsomeonesignforeclosurepaperswithoutevenlookingatthemorcheckingthattheyareaccurate.
Thisisastateaction.Thebanks'friendsintheFederalGovernmentarelyinglow.
Theyareprobablytoobusytryingtothinkupotherwaystheycanhelpthebanksmakemoremoney.
Suchgenerousandunselfishfriendshipistrulytouching.
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Miracle in Iceland Iceland has a population of some 300,000 people. In 2008 it suffered the same problems experienced by our country, by Greece, by Italy, by Spain, only worse– people and banks had borrowed a great deal of money on the strength...
-
p { margin-bottom: 0.08in; } Beware of the private profit motive Everybody loves an entrepreneur! While the news from Afghanistan is uniformly bad, a number of recent news reports see a glimmer of hope in the rise of Afghanistan entrepreneurs....
-
p { margin-bottom: 0.08in; } How scuzzy can you get? I am quoting below a story from the Grassroots International Insight Newsletter: “When news of Monsanto donating hybrid seeds to Haiti after the devastating earthquake last January began to spread...
- Whom Should We Trust?
A Boston business owner has entered the primaries to fill the seat of the late Senator Kennedy. He believes himself particularly well-qualified because he is a successful business man. Where has he been during the last year? We are in the middle of the...
- Regulating The Markets
Last week, Sen. McCain came out in favor of regulating financial markets. That is a departure from traditional Republican orthodoxy that is truly astonishing. For 100 years or more, Republicans and many Democrats have told us that markets are "self-regulating."...