http://www.321gold.com/editorials/moriarty/moriarty103008.ht...This last month has been a real barnburner. I though I had seen everything until I found a couple of new pieces today. The first tells of the Fed supplying new lines of credit to Brazil, Mexico, South Korea and Singapore to, now get this, "help those countries deal with the global credit crisis." The Fed will start off with $30 billion apiece and will make a maximum of $100 billion, per country, available....That wasn't the dumbest thing I have ever heard of. The dumbest thing I have ever heard of comes from Goldman Sachs. Remember the $10 billion dollars we just gave them compliments of the US Congress and their $850 billion dollar bailout?They are going to hand out bonuses to the tune of an average £3 million for each of the firm's 443 partners. In total, they are going to hand out £7 billion in salary and bonuses out of the £6 billion handed to them by the treasury.
They are going to hand out bonuses to the tune of an average £3 million for each of the firm's 443 partners.Not sure about that. Cuomo has a fraud law he found and said he would prosecute bonus givers/receivers if any company that got gubmint money gives out bonuses. I assume all the big money went to NY firms.
Some:CGSMSJ.P. MCSome have businesses here, but headquartered elsewhere:BACSome not:USBWFC(I forget the rest of the list)I wonder when the major banks will follow Halliburtin and move offshore to Dubai?Jeff
Isn't it interesting that the two with minimal operations in New York essentially had to be dragged to the table and had the government money forced down their throats? Just goes to show that a large gathering of smart people doesn't necessarily make the overall decisionmaking any wiser.Bill Mann
Bill! Where you been man? Your absence has been noted...and you were missed...KBM (resident worry-wort)
Never fear! Barney Frank to the rescue:"Any use of the these funds for any purpose other than lending -- for bonuses, for severance pay, for dividends, for acquisitions of other institutions, etc. -- is a violation of the terms of the Act," he added.Or maybe not..."Our purpose is to increase confidence in our banks ... so that they will deploy, not hoard, their capital. And we expect them to do so, as increased confidence will lead to increased lending," Paulson said.http://www.reuters.com/article/ousiv/idUSTRE49U4J920081031If banks increase their loans outstanding at least by the amount the government invests in them it could be claimed that they are loaning that money out. That doesn't prevent them from ripping off common and preferred shareholders (including the US government) by continuing to pay outsized bonuses to employees.
Ti, that was worth reading just for the disclosure at the bottom:International Tower Hill is an advertiser and we have participated in private placements in the past. We are biased as we can be.I love it. If everyone were that honest ....Dan
Memo to Dan..."We" [here at METAR] are....;o)"We are biased as we can be."I love it. If everyone were that honest ....Dan KBM (Biased and proud of it)
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