"Senate Democratic leader Harry Reid said the Fed's latest actions 'appear to shift large risks to taxpayers, who may find themselves on the hook for billions in worthless securities.'"
And who exactly gets bailed out anyway? Apparently retirement and such for the employees was based on the company's stock value, which went from $90 a share to the $2 a share JP Morgan paid for it. So they are still screwed. I guess at least they have jobs... for the moment. Meanwhile on NPR last night they said that the CEO of Bear Stearns was at a bridge tournament as his company was falling apart. The arrogance of these people.
And what is the cause of all this? Greedy banks and mortgage lenders making loans to deluded or deceived people who should not have been given mortgages. Then they package this debt and sell it to the investment banks who think they can make a quick profit on it.
This morning on NPR they said that often these banks are leveraged to 30 times their actual value at any given time. That sounds like asking for trouble.
It would be interesting to see a simulation of what would happen if the government did not bail out these rich greedy jerks, and some people had to take responsibility for taking extreme risks with other peoples' money. These companies that got themselves into trouble would suffer the consequences. Of course, Citigroup might be one of them and that's my bank. I'd say the investment bank portion would be forced to split off and face bankruptcy (I think that was Spitzer's idea before his untimely fall... speaking of taking responsibility).
This is fun!
Meanwhile the monkey in the White House just keeps saying that 'our economy is strong.' What an idiot.
No comments:
Post a Comment