American Greed: Where are the Financial Gurus and Pundits Now?
September 18, 2008
Well it is no news now that Morgan Stanley and Washington Mutual are looking for capital. Yes, they are failing too. Morgan Stanley is now in advance discussions to merge with Wachovia and WAshington MUtual, well, the once fearful giant borrowed 58 billion USD form the federal home loan system and cannot pay it back. The only potential suitors for WAMU are JP Morgan, HSBC, or Wells Fargo according to CNBC news, Guess what? They are the only major financial institutions afloat now.
In light of AIG, Lehman Brothers and Merrill Lynch on Monday, the feds are currently in talks to takeover most of those bad loans, thus, dumping billions into the market to ease the distress the is causing ripples globally. But where is this money going to come from? You guessed it, you the tax payer because America has nothing left; it was all spent on the war in Iraq by the Bush administration.
This evening 9/18/2008,House Speaker Nancy Pelosi was briefed by Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke, both of whom I think should be fired.
The purpose was to solidify a financial plan to relieve the remaining banks of the bad loans they undertook over the last few years.
So what is to be blamed? American Greed that who. While banks got away with murder by underwriting bad loans in light of soaring stock prices executives and made millions and shareholders saw a bump in their portfolios. But as the old adage goes” What goes up, must come down” and indeed this is coming down hard. Where are the pundits and Gurus now? Only a few weeks ago, I saw many of them on television noting that this will pass and America is not in any way shape or form near a recession. Can they say the very same today? I am not sure because they are no where to be found.
Can America get out of this one? According to Alan Greenspan, we have less than 50% chance. How right was he, we will just wait and see as it all unfolds.
For now, I am certain that the chaos on Wall Street will continue as this financial horror flick continues with out intermission. The fact is the Pundits and Gurus were all wrong and they know it. The people who follow the financial markets know who they are and it would be a shame to listen to them rant about what they are unfamiliar with going forward. America as we know it has changed dramatically over the last few days and the world is watching. China and the UAE especially are keeping a close eye.
Andrew
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Does anyone really think Mayor Mike Bloomberg is the genius that he thinks he is? When all is said and done, he’s a rich guy that got a whole lot richer while being mayor of New York City. The world’s biggest financial disaster takes place in his city while he’s mayor and he blames the people for this mess! A financial genius and still could’nt see it coming! Every real eastate broker did- waiting for the gravy train to end. Every bad loan goes thru bloomberg’s company- still blaming people for taking bad loans! It’s like the captain of the Titanic blaming the passangers! It happened on your watch Mike- please save us the PR you’re peddling about term limits or holding some other position as “public service”.
Guys- I had to get this one out!