Our political financial circus grows. In the center ring yesterday was the Maestro himself, Alan Greenspan or as NBC titles him "Doctor" Alan Greenspan -- Hey Ho! But best of this well rehearsed clown act, sitting next to Mr. Greenspan was none other than MSNBC's own Jim "Mad Money" Cramer. Mr. Cramer looked appropriately in awe, and why shouldn't he, there the apprentice sits next to the Maestro of bullshit. Mr. Greenspan delivered the act's punchline:
Over in the left ring, the President dons a Teddy Roosevelt costume and claims he did not, "run for office to be helping out a bunch of fat cat bankers on Wall Street." Phew, one has to ask if he is including Larry and Rahm? Remember, before his most recent stint in "public service," Mr. Summers received $5.2 million in one year from a hedge fund. Rahm of course in between his stint as the Clintons' bag-man, and make no mistake that was a lot of heavy lifting, and his election as Congressman cleared $16 million in couple months as an investment banker in Chicago, as they say in Chicago, "Good work, if you can get it." And what do you get if you were the main rain-maker for Rahm's investment banking career? You're appointed Chairman of the newly government owned General Motors.
If you want a not so funny but entertaining view of the Democrats and fat-cat bankers, try Matt Taibbi's excellent piece in Rolling Stone. For the circus' next act, let's subpoena Bob Rubin and Mr. Bill and ask about the creation of Citi, that might not only be entertaining, but useful.
People think stock prices are just paper profits. They are not. They create real purchasing power and, most importantly, they create a fluidity into the financial system which is the reason why even though banks are not lending freely at this particular stage, they are solvent and the problems that we had six to nine months ago have disappeared, because essentially $5 trillion worth of increased equity is pouring into the economy.This is called bubble blowing Fed style. I underestimated back in March how much the Fed could goose the stock market. I was not sufficiently dazzled by the tricks the Maestro had demonstrated when he was Chairman. The Maestro claims the Fed inflated stock pop has created $5 trillion worth of "equity," bubble equity to be exact. And then with a wave of his wand Doctor Maestro claims the banks are solvent, which if you don't have to account losses I guess they are. All and all a bravo performance
Over in the left ring, the President dons a Teddy Roosevelt costume and claims he did not, "run for office to be helping out a bunch of fat cat bankers on Wall Street." Phew, one has to ask if he is including Larry and Rahm? Remember, before his most recent stint in "public service," Mr. Summers received $5.2 million in one year from a hedge fund. Rahm of course in between his stint as the Clintons' bag-man, and make no mistake that was a lot of heavy lifting, and his election as Congressman cleared $16 million in couple months as an investment banker in Chicago, as they say in Chicago, "Good work, if you can get it." And what do you get if you were the main rain-maker for Rahm's investment banking career? You're appointed Chairman of the newly government owned General Motors.
If you want a not so funny but entertaining view of the Democrats and fat-cat bankers, try Matt Taibbi's excellent piece in Rolling Stone. For the circus' next act, let's subpoena Bob Rubin and Mr. Bill and ask about the creation of Citi, that might not only be entertaining, but useful.
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