Das Kapitalism
Bear Sterns: Govt. loans millions (billions?) in a non-recourse loan to keep company propped up.....Bear Sterns then is sold for $10/share - over 90$/share loss in a year.
Freddie/Fannie: Govt. takes over and is left holding as much as $100 billion of junk stock (currently selling at $0.25/share - $60/share loss in a year).
Lehman Bros: Govt. lets Lehman sink....Stock value ~$0.30/share - over $60/share loss in a year.
AIG: Currently hanging onto the hope that the fed will loan enough money to help cover ~$80 billion of red on the balance sheet, or they will go bust in 1-2 days. Currently holding at ~$3/share, - over $60/share loss over a year.
Glass-Stengall, and several other laws that were made for the express purpose to prevent Wall Street from turning into Casino Royale (using other peoples money to place their bets), were all repealed bit by bit in order to "free up the markets". Next time someone says that regulation and oversight hinder and hurt the American economy, ask them if they think that having the American taxpayer shelling out billions to well-heeled bankers to save them from their impractical idiocy is helping our economy at all.
UPDATE: US Treasury loanes AIG $85 Billion for 80% of the company????? WTF??? Who is next...Ford, GM, Goldman Sachs? Might as well just start handing out welfare checks to all the companies. Sorry no new oversight or regulations please, just give us the money.
Freddie/Fannie: Govt. takes over and is left holding as much as $100 billion of junk stock (currently selling at $0.25/share - $60/share loss in a year).
Lehman Bros: Govt. lets Lehman sink....Stock value ~$0.30/share - over $60/share loss in a year.
AIG: Currently hanging onto the hope that the fed will loan enough money to help cover ~$80 billion of red on the balance sheet, or they will go bust in 1-2 days. Currently holding at ~$3/share, - over $60/share loss over a year.
Glass-Stengall, and several other laws that were made for the express purpose to prevent Wall Street from turning into Casino Royale (using other peoples money to place their bets), were all repealed bit by bit in order to "free up the markets". Next time someone says that regulation and oversight hinder and hurt the American economy, ask them if they think that having the American taxpayer shelling out billions to well-heeled bankers to save them from their impractical idiocy is helping our economy at all.
UPDATE: US Treasury loanes AIG $85 Billion for 80% of the company????? WTF??? Who is next...Ford, GM, Goldman Sachs? Might as well just start handing out welfare checks to all the companies. Sorry no new oversight or regulations please, just give us the money.
posted by MarceauMarceau at 7:01 PM
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