AIG plans to pay about $100 million in bonuses Wednesday
From the Wash Post: AIG Bonuses
The idea is that the employees had contractual bonuses due to them. However, if I enter a business contract and the counterparty fails to honor payments under the contract, I have to stand in line with other creditors at the bankruptcy court. Why are these AIG employees being paid with Taxpayer money? You all can thank Bush, Paulson, Obama and Geithner for this.
One has to wonder how long it will be before public anger boils over into civil unrest.
Tuesday, February 2, 2010
Subscribe to:
Post Comments (Atom)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/sp_en_6.gif)
Unfortunately Americans are not as fervent about their own gov't as other nations are, that's why our schools system are not the greatest. Can't have too many free thinkers cause trouble.
ReplyDeleteWe should be up in arms over this but guess what, we can't do shit about it and those trials with the FEDs only shows how "We the people" are powerless to do anything when our own elected gov't can't even get to the bottom of anything...
Face it, we're owned by corporations. Just hope they're still kind enough to supply the Vaseline.
LOL. Obama giving plenty of KY to the upper 1%, unions and welfare class...
ReplyDeleteWell if that doesn't make you mad here's something to laugh about. Now the primary dealers are complaining the Fed is ruining their business by buying into the auctions directly. What they mean of course is that previously they used to get a slice of this pie because the Fed funded them to buy their auction debt. Now the Fed is no longer bothering to fund JPM and the other primary dealers because the volumes are so large and the effect on the primary dealers balance sheets is so bad that they can't take the hit anymore. So the Fed are buying direct. This means that the primary dealers are no longer getting their get slice. What are they going to do now that the Fed is no longer going to wet their beak?, you might well ask.
ReplyDeleteWell my guess is that this open secret is no longer be any sort of secret at all. Here's Zimbabwe, time for the Fed to pin pictures of Robert Mugabe because the next step is for the primary dealers to call an investment strike. Well wouldn't you if your only client started competing against you and began buying into your market that you had been running since 1913. I ask you what a cheek. Bernanke must be out to kill these nice friendly dealers. What do you think this bunch of greedy wefare thieves is going to do next. My guess is an investment strike coupled with a whispering campaign, well it's either that or the welfare line for this bunch of pond scum.
Then the Fed will have to buy them all the bonds in both the primary and the secondary markets unless it can come to an accomodation with the primary dealers i.e. wet their beaks with enough money to shut them up. It's so funny and they call this farce capitalism.
By Daniel Kruger and Rebecca Christie
Feb. 2 (Bloomberg) -- Bond dealers underwriting the U.S. government’s record debt sales told Treasury officials that the increase in direct bids from investors at Treasury auctions risks distorting prices in the market.
Three of the nine primary dealers that met with Treasury officials ahead of tomorrow’s announcement of the government’s quarterly financing plans said they’re concerned about the increase in so-called direct bids, according to people involved in the discussions. The Treasury will release details of discussions with its debt advisory group tomorrow, as well as how much in 3-, 10- and 30-year securities will be auctioned next week.
Direct bidders accounted for 10 percent or more of the total in 12 of 42 fixed-rate auctions since July, compared with only 6 times from 2004 to 2008, according to Treasury data. The Wall Street firms say the increase in bids sent directly to the Treasury by investors including banks, large money managers and hedge funds may raise borrowing costs for the Treasury and taxpayers if dealers bid less aggressively because of higher volatility at the sales.
“It doesn’t crash our market, but it becomes an interference, and it will become more costly to place the debt,” said James Caron, head of U.S. interest-rate strategy in New York at Morgan Stanley, one of the 18 primary dealers that also act as counterparties to the Federal Reserve when it sets monetary policy.
Lower Auction Participation
thanks for posting that. good commentary. i missed the news item.
ReplyDeleteThis illustrates the void between Wall Street and Main Street. These grifters continue to gorge themselves during the worst economic downturn since the last depression. The only way to rid ourselves of these parasites is via collapse.
ReplyDeleteJoe M.
Agree Joe. But I said 6 years ago "they" would hold the system together until the elitists took every last crumb of wealth off the middle class' table. About all that's left is 401k/IRA and they're working on that.
ReplyDeleteDave,
ReplyDeleteWhat is the total value in these 401k/IRA accounts?
Joe M.
No idea. You might be able to find a number if you google it. it's in the trillions.
ReplyDeleteHere's another funny from Eric De Groot Ïnsights". Thought For The Day:
ReplyDelete"MOPE may encourage you to whistle past the graveyard, but eventually too many people sneak a peak. Soon the whistling has stopped because everyone is running. I fear that this is what will become of the bond market. Too many coincidences are showing up as critical long-term support approaches."
–CIGA Eric
This is what a technican calls the pond scum from JP Morgan turning up for lunch with their favourite jouno to complain about the fact that they haven't got their slice of the ever increasing welfare check from the Fed.
Here's more from the insights: Three of the nine primary dealers that met with Treasury officials ahead of today’s announcement of the government’s quarterly financing plans said they’re concerned about the increase in so-called direct bids, according to people involved in the discussions. The Treasury will release details of discussions with its debt advisory group today, as well as how much in 3-, 10- and 30-year securities will be sold next week.
Direct bidders accounted for 10 percent or more of the total in 12 of 42 fixed-rate auctions since July, compared with only 6 times from 2004 to 2008, according to Treasury data. The Wall Street firms say the increase in bids sent directly to the Treasury by investors including banks, large money managers and hedge funds may raise borrowing costs for the Treasury and taxpayers if dealers bid less aggressively because of higher volatility at the sales.
This is what you or I would call the pond scum demanding money with menaces. Give us or cut we tell all the world that you are running a shell game here and if you don't we will kick up fuss in the papers and blame the technicals.
What is so amusing about these pond scum is that if the short rates go up JP Morgan goes bankrupt as they have written so many interest rate swaps against this scenario you can't get your mind around the numbers. But the thieves at the primary dealer desk don't give stuff about whether or not JPM blows up all they care about is their juice today.