Money, Power, Wall Street

[Jim]

I consider myself pretty informed but was taken aback by some of the items discussed in this Frontline series, of which Part II aired last night. Enlighting.

 

http://www.pbs.org/wgbh/pages/frontline/view/

 

I generally knew about the extent of CDF peddling, but this was surprising. The bankers had a term "...ripping their face off" for when they sold a client a finance vehicle where the client didn't know WTF he was buying yet the bankers made a huge profit. Great.

 

The bankers fanned across the US selling extremely complex vehicles to unsophisticated buyers - cities, towns, counties; help countries hide their debt for crazy interst rates (16% on millions)that they knew would crash and burn sooner or later.

 

While I knew Geithner was a Wall Street man all the way, I did not know how hard he pushed to let the banks off scott free during and after the crash. Even Larry Summers was pushing for the break up of some of the large banks and dismissal of CEOs after they required tazpayer money.

 

And - Obama blew it; possibly because of a combination of being distracted by health care and being naive. He did not push for change in the fianacial system when he had the banks on the ropes. Now - too late; and the bank lobbists are shredding the rule making for Frank-Dodd reform bill.

 

So the banks are now even bigger - 5 of them carry 58% of the nation's wealth, there have been no real regulatory changes, and the change of another crash is looking 50-50.

 

Looking for a big matress for my cash.

[G-spotter]

 

Looking for a big matress for my cash.

 

Inflation will make your cash useless. Buy commodities that will retain value when the dollar inflates, instead.

[Jim]

Gold or Canadian pork bellies?

[G-spotter]

Given all the new mines coming onstream the price of gold is more likely than not going to keep dropping for a while. We're already down what, 15% from the peak?

 

Diamond prices are set by a cartel, so maybe you should think about ice.

[Jim]

Yea, but if these guys can't get it right what chance do I have?

 

http://money.usnews.com/funds/mutual-funds/rankings/commodities-broad-basket

 

Where's JayB when you need him?

[prole]

Meteorites are the currency of the future elite. Get in now before it's too late! Where's Billcoe when you need him?

 

[ivan]

i'm currently putting all my assets into the stray cats slouching in ever increasing squadrons into my backyard to stay

[Stefan]

The bankers fanned across the US selling extremely complex vehicles to unsophisticated buyers - cities, towns, counties; help countries hide their debt for crazy interst rates (16% on millions)that they knew would crash and burn sooner or later.

 

Darwin affect. However, you forget one thing. The buyers all signed contracts. I have yet to hear a single buyer say, "They forced me to sign this contract under duress." False marketing? Yes. Stupid buyers? Oh yeah.

[Jim]

Agreed - but there was a lot of corruption in the loop as well. One example - In AL the locals went to a known finicial wizard for advice and he said, yea, go for it. Little did they know the bank got to him first and paid him a huge sum to approve the deal.

 

And there was all sorts of complicity. Moodys rated the CDFs as AAA!!!! How the hell can that be? You're not sure, you look it up, and it's rated investment grade safe!

 

I don't understand how the bankers can sleep at night making a living by ripping off people.

 

Time to reinstate Glass-Stegal.

[Pete_H]

 

And - Obama blew it; possibly because of a combination of being distracted by health care and being naive. He did not push for change in the fianacial system when he had the banks on the ropes. Now - too late; and the bank lobbists are shredding the rule making for Frank-Dodd reform bill.

 

So the banks are now even bigger - 5 of them carry 58% of the nation's wealth, there have been no real regulatory changes, and the change of another crash is looking 50-50.

 

 

 

Wall Street gave Obama 7 mill in the last election cycle. Perhaps that has something to do with it. Ironically, Wall Street isn't as enamored with him this go 'round.

 

http://www.nytimes.com/2012/05/06/magazine/obamas-not-so-hot-date-with-wall-street.html?_r=1&hp

[prole]

I don't understand how the bankers can sleep at night making a living by ripping off people.

 

You're hilarious. Betta act like you know...

 

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