.
September 14, 2008
SouthAmerica: I have been reading about how much money Bill Gross from Pimco made from the current crisis regarding Fannie and Freddie.
The article on The Financial Times (UK) said that Bill Gross had switched a large chunk of Pimcos investments into Fannie and Freddie because he could smell a US government bailout of these financial institutions and his bet paid very well when the US government nationalized Fannie and Freddie â his company made an estimate US$ 1.7 billion dollars in profits.
Bill Gross is laughing all the way to the bank at the expense of US taxpayers.
Bill Gross bought a ton of Fannie and Freddie in the last 10 months and then started lobbying the US government for a bailout of these institutions.
*****
Over the weekend the Treasury Secretary Paulson met with various senior members of the Wall Street elite Investment bank and banking houses to decide the faith of Lehman Brothers.
I thought at this point there were no business small enough that should be let go bankrupt and out of business here in the US according to Ben Bernanke and his pals.
I thought Paulson and Bernanke were going to consolidate the entire US financial system as a new subsidiary of the US government.
The US government is going to become even bigger after they nationalize the major US automakers, most of the airline industry, insurance industry and so on.
All these bailouts have one positive side to it the US government is becoming a one-stop shoppe and most Americans will need to make just one telephone call when they want a mortgage, buy a car, do their investments, banking and insurance, travel anywhere by major US airline, and much more.
The only thing that Americans still will need to learn as time goes on is if they need to call the US treasury or the Federal Reserve to reach one of these businesses.
No more a bunch of statements on the mail on a monthly basis from Merrill Lynch, Lehman Brothers, AIG, Washington Mutual, car dealers, airline points, from your bank, mortgage company, and so onâ¦You are going to get only one statement from the US government with all this information.
I donât understand how Bank of America can be a buyer of Lehman Brothers â I remember just a few months ago when Bernanke was looking around for bank that could take over Bear Stearns and during that debate the experts said that Bank of America was not in the financial position to make a bid for Bear Stearns, mainly after that bank tookover Countrywide.
And in the last six months if anything the Countrywide fiasco got even worse because of a deteriorating real estate market and that would have placed Bank of America on an even more delicate financial position.
I donât understand how Bank of America is even considering taking over Lehman Brothers at this time.
I wonder which bank or financial institution will be left in the United States that would be in a healthy financial position to be able to come to the rescue of Merrill Lynch, AIG and many more companies that are collapsing in the current massive financial crisis?
*****
Since the American banking system is in the middle of the biggest financial crisis since the Great Depression that eliminate them from coming to the rescue of anyone.
That leaves the door open for massive nationalization of US financial assets by some governments such as the US and China governments.
The US nationalizes these financial institutions with bailouts from the Treasury and the Federal Reserve and these assets become part of the balance sheet of the US government.
Some of these financial institutions such as Lehman Brothers will be nationalized by some foreign governments and will become part of the balance sheet of governments such as China â e.g. investment made by China's Sovereign Investment Fund on these US major financial institutions
.
September 14, 2008
SouthAmerica: I have been reading about how much money Bill Gross from Pimco made from the current crisis regarding Fannie and Freddie.
The article on The Financial Times (UK) said that Bill Gross had switched a large chunk of Pimcos investments into Fannie and Freddie because he could smell a US government bailout of these financial institutions and his bet paid very well when the US government nationalized Fannie and Freddie â his company made an estimate US$ 1.7 billion dollars in profits.
Bill Gross is laughing all the way to the bank at the expense of US taxpayers.
Bill Gross bought a ton of Fannie and Freddie in the last 10 months and then started lobbying the US government for a bailout of these institutions.
*****
Over the weekend the Treasury Secretary Paulson met with various senior members of the Wall Street elite Investment bank and banking houses to decide the faith of Lehman Brothers.
I thought at this point there were no business small enough that should be let go bankrupt and out of business here in the US according to Ben Bernanke and his pals.
I thought Paulson and Bernanke were going to consolidate the entire US financial system as a new subsidiary of the US government.
The US government is going to become even bigger after they nationalize the major US automakers, most of the airline industry, insurance industry and so on.
All these bailouts have one positive side to it the US government is becoming a one-stop shoppe and most Americans will need to make just one telephone call when they want a mortgage, buy a car, do their investments, banking and insurance, travel anywhere by major US airline, and much more.
The only thing that Americans still will need to learn as time goes on is if they need to call the US treasury or the Federal Reserve to reach one of these businesses.
No more a bunch of statements on the mail on a monthly basis from Merrill Lynch, Lehman Brothers, AIG, Washington Mutual, car dealers, airline points, from your bank, mortgage company, and so onâ¦You are going to get only one statement from the US government with all this information.
I donât understand how Bank of America can be a buyer of Lehman Brothers â I remember just a few months ago when Bernanke was looking around for bank that could take over Bear Stearns and during that debate the experts said that Bank of America was not in the financial position to make a bid for Bear Stearns, mainly after that bank tookover Countrywide.
And in the last six months if anything the Countrywide fiasco got even worse because of a deteriorating real estate market and that would have placed Bank of America on an even more delicate financial position.
I donât understand how Bank of America is even considering taking over Lehman Brothers at this time.
I wonder which bank or financial institution will be left in the United States that would be in a healthy financial position to be able to come to the rescue of Merrill Lynch, AIG and many more companies that are collapsing in the current massive financial crisis?
*****
Since the American banking system is in the middle of the biggest financial crisis since the Great Depression that eliminate them from coming to the rescue of anyone.
That leaves the door open for massive nationalization of US financial assets by some governments such as the US and China governments.
The US nationalizes these financial institutions with bailouts from the Treasury and the Federal Reserve and these assets become part of the balance sheet of the US government.
Some of these financial institutions such as Lehman Brothers will be nationalized by some foreign governments and will become part of the balance sheet of governments such as China â e.g. investment made by China's Sovereign Investment Fund on these US major financial institutions
.
