Posts Tagged ‘Citigroup’

Quick Hit “Warren Runs For Senate”

Elizabeth Warren will oppose Scott Brown in the Massachusetts Senate race.

Scott Brown will face a formidable foe in the 2012 election after winning Ted Kennedy’s Senate seat in a heated special election just one year ago.

The Harvard Law Professor, whose last gig was setting up the Consumer Financial Protection Bureau — the office established to protect consumers from the banksters — will soon represent ‘the people’ of Massachusetts. She announced her candidacy this morning after her exploratory committee determined she had the support to challenge Scott Brown.

Many of us believe Obama should have nominated Ms. Warren for the chairmanship of the new agency. But her confirmation was being blocked by the obstructionist Republicans in the Senate. They will not confirm anyone who will fight for ‘the people.’

The President should have fought for her appointment but caved under Republican pressure.

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Posted in Election 2012, Politics | Comments Off

“Stimulating a Dead Economy”

My newest article is now available on The Huffington Post. Click on the HuffPo linke to read it there.

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The U.S. economy is surviving only because of over-stimulation.

We’re living on fumes in this country, and the pursuit of happiness has come to an end for millions of families!

Main Street is still suffering. But, the Market is on Viagra, shored up by QE2, the Fed program to buy hundreds of billions of dollars in U.S. Treasury Bonds. As QE2 winds down, and the economy falters, the discussion turns to the possibility of QE3.

A tremendous number of band aids have been administered to keep the U.S. economy from hemorrhaging; to prevent not only a domestic collapse, but a global one.

Each attempt to divert a financial disaster has had varying levels of success; many failing to achieve their intended goals.

Why have we needed so much stimulus?

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Posted in Economy, HuffPost Articles, Predictions, Wall Street | Comments Off

“Small Banks Reel, While Big Banks Steal”

Congress battles over financial reform while four more banks fail!

Congress, in its infinite wisdom, is allowing Big Banks to steal from ‘the people’ while regional and community banks fail at an accelerated rate.

Four more banks were closed by the FDIC last Friday bringing the total lost in the first two weeks of May to 8 and the 2010 total has increased to 72 bank failures.

As bank foreclosures edge closer to costing the taxpayers huge amounts of money, Senators like Judd Gregg, Mark Warner, and Bob Corker help ‘Too Big to Fail’ institutions slide their hands into customer’s pockets to steal their hard-earned cash.

The Big Banks, JP Morgan Chase, Bank of America, Citigroup, and several others borrow money from the Fed at 0%, buy America’s debt from The Treasury earning the spread in interest rates, making easy money at the expense of taxpayers. In return they give their customers very little interest on their savings and charge them outrageous fees after creating bogus, thieving rules designed only to extract money from their customers.

In other times in our history these actions were unethical and even criminal.

Yet our Congressional representatives are reluctant to pass laws to keep the banksters out of our pockets.

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Posted in Banking, Economy, Too Big to Bail | Comments Off

“Senate Votes for Big Banks and Against the People!”

The People vs. Big Banks! Who won the vote in the Senate last week?

Last Thursday night the Senate voted on an important amendment for ‘the people’ of this country—protecting the American people from predatory banks. The amendment (Brown (OH) amdt. No. 3733) to Restoring American Financial Stability Act of 2010, would impose leverage and liability limits on bank holding companies and financial companies. Essentially a controlled method of separating the banks and protecting depositors and investors—‘the people.’

There are many reasons to break up the Big Banks and those are discussed in greater detail in “Break ’em Up!” But mostly it’s because of what the banks continue to do to middle-class Americans with impunity.

Surely the Senate voted in favor of their constituents?

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Posted in Banking, Politics, Too Big to Bail | 2 Comments »

“Break ‘em Up!”

There are many reasons why we need to break up the behemoths of finance!

The taxpayers saved their affluent asses. The Big Banks, along with their highly compensated executives, were headed over the cliff with nothing to stop their fall, and we bailed them out!

Break ’em Up!

Congress, in a panic, saw fit to give taxpayer dollars to the self-destructive creators of the financial crisis to prevent a catastrophic meltdown of the U.S. economy, without even asking us.

We’re told over and over that TARP was successful, that Congress’ decisive actions saved the economy and that we should be eternally grateful. We’re reminded that the Big Banks are again stable. They’re back to making billions of dollars—and the economy is improving.

For whom?

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Posted in Banking, Economy, Too Big to Bail | Comments Off

Quick Hit: “Bad Omen for Banks!”

For the banking industry, January, 2010 ends badly!

While the Huge Banks: JP Morgan Chase, Goldman Sachs, Bank of America, Citi Bank, Wells Fargo, and Morgan Stanley pay out billions of dollars in bonuses, the FDIC is forced to close down 6 more banks.

While the Huge Banks who caused the financial meltdown continue to gamble with its depositors money—reaping some big risky rewards—the FDIC seizes its 15th bank of this young decade—barely the beginning of a new year.

Last year, 2009, we lost just 6 banks in January at a cost to the Federal Deposit Insurance Fund of approximately $810 million. The 6 seized today could easily cost the Fund over a billion dollars adding significantly to the already $1.37 billion the first 9 foreclosures of this year has cost the FDIC.

The crisis that is still building is mimicking the loss pattern of the Savings & Loan Crisis that lasted 8 years and saw 1,600 S&L’s and banks fail.

Considering what happened in the 90’s, this bad start could be the precursor of another lost decade; something everyone should brace for!

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Posted in FDIC Foreclosures, Quick Hits | 1 Comment »

“All Talk; No Action”

The President invited the Top Dogs of the Big Banks to the White House on Monday.

Or did he summon them?

Our favorite banker, Lloyd Blankfein, though capable of doing God’s work, was unable to make it from New York to Washington, DC. You’d think God would have given him a couple of Angels to insure he made this important meeting. I guess he’s only doing God’s work when it leads to profits.

On the President’s agenda was tough talk and ultimatums directed at the very group that caused the global financial meltdown.

The Fat Cats needed to be straightened out, chastised for their complicity in the financial crisis, even if it took whips and chains. They needed to be forcefully reminded that they could not continue to steal from the people who bailed their greedy asses out of the mess they found themselves in; those that prevented their failure; the American taxpayers.

This long needed whuupping from the Commander in Thief would surely shake these pillars of the community to their foundations.

Humbled by the Prez’s admonition the previous night on 60 Minutes, they would be ready to commit, without hesitation, to becoming the good corporate citizens necessary in turning around this dead and decaying economy.

But it appears there was no beating, no tough talk, no character building ass whuuppings, and no floggings from the people’s Commander in Grief. No Teddy Roosevelt ‘speak softly, and beat them into submission with a with a big stick.’

Instead, Mr. Obama politely requested their help in providing money for small business; modifying home loans to slow the rate of foreclosures—helping millions remain in their humble abodes; and lowering interest rates and fees on credit cards and home equity loans, affecting millions more Americans.

Oh, and telling their high-paid lobbyists to quit fighting the regulations that Congress was trying to pass. Or…trying to weaken them till they have little affect at all.

Congress was already good at that on their own. Read the rest of this entry »

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Posted in Banking, Economy | Comments Off

“UnAmerican Activities; The Banks Who Stole Christmas”

No Toto, we’re not in Whoville anymore!

Together these classic films, “The Wizard of Oz” and “The Grinch Who Stole Christmas,” one in magnificent color, written by L. Frank Baum, and the other an incredible story by the irrecusable Dr. Seuss, definitively describe what banks have done to the economy, the middle-class, the country, and—oh yes, Christmas.

The “UnAmerican Activities” of American banks have stolen Christmas, and Christmas cheer, from millions of Americans—and even more millions of children. They are, at the same time, the Wizard of Oz and the Grinch.

As the Wizard of Oz banks fooled unsuspecting and naive consumers into believing the American Dream was tied up in a 6.9% interest rate. Banks enticed everyone down the Yellow Brick Road, in search of the Emerald City.

But the road, like in the movie, wasn’t paved with gold. And there is no Emerald City to behold.

Bankers deceived hard-working Americans, convincing them the way to prosperity was cheap credit and burdensome debt. They tricked customers into massive obligation through subprime mortgages and credit cards with limits well beyond the cardholder’s means. And then the curtain was pulled back and revealed their deception.

Bad gambles, made with the play money they issued to all the ungrateful fools, began to unravel. The economy began to slide, and with it the banks’ profits disappeared.

With the falling economy their affable clients began to default and the bankers could see their ginormous bonuses fading. Years of fake prosperity were gone. The Wizard had been exposed, and banks found themselves in a dubious pinch.

That’s when they turned, into the petulant Grinch. Read the rest of this entry »

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Posted in Banking, Economy, Too Big to Bail, UnAmerican | Comments Off

“Challenging Cooperman”

Last October the widely respected founder and Chairman of Omega Advisors, Mr. Leon Cooperman, saw signs of a bottom in the markets. The Dow was around 9,200 that day and the S&P was just below 1,000 points.

After reading his comments and based on my own informal research I sent Mr. Cooperman a letter and a copy of my book, “Final Audit.” I issued Mr. Cooperman a challenge, a friendly one, stating that the market would continue to tumble and that we would be lucky if it bottomed near 7,000 on the Dow and 740 on the S&P.

We know what happened in March!

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Posted in Economy, Markets, Predictions, Wall Street | Comments Off