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Yep, it came and went and we’re still here, chewing our fingernails as the Bushit flies in Congress, with Paulson (read his record and say “I trust him.”) and Bernanke testifying before a buzzing swarm of up-for-election politicians blowing hard populist stuff about “ain’t gonna bail out Wall Street if… blah blah… Mainstreet.. blah blah” whether Republican or Democrat as the smell of the blowing wind is like a feedlot coming out of the canyons of lower Manhattan.   Right or Left, they’re all “mad as hell” and will foam at the mouth a few days to provide cover for some less astounding hand-out to the rich.

In 2007, Wall Street’s five biggest firms — Bear Stearns, Goldman Sachs, Lehman Brothers, Merrill Lynch, and Morgan Stanley — paid a record $39 billion in bonuses to themselves.

That’s $10 billion more than the $29 billion loan taxpayers are making to J.P. Morgan to save Bear Stearns.

Those 2007 bonuses were paid even though the shareholders in those firms last year collectively lost about $74 billion in stock declines — their worst year since 2002.

Not to mention the billions on billions handed out in no-bid “wartime” contracts to, well, mostly the same “good fellows.”

Meantime Mrs Palin is getting her cram course in foreign policy from the master war criminal himself, a 3 hour private session with Henry Bloodyhands Kissinger.  Did she go down on him?  If she follows the actions of the stockmarket (up down up down….) I am sure the old boy will approve.

Speaking of the Mystical Market Economy Dow(sing) rod, as predicted following its erectile direction on Friday’s news of a 700 billion bail-out for the richest, it went limp again when this instant gratification was subjected to delays from both Right and Left, and in the interim news of sleazy kinds leaked out about Mr Paulson, the wizard primary author of this proposal, who like all con-men said “gotta do it now, one-time-only offer, gone tomorrow, sign now, read the fine print later, time’s runnin’ out” as he shuffles the shells faster and faster and his patter gets more desperate to sign up the mark.  Mr Paulson got a mere 18 million dollar pay out (kick-back) from Goldman Sachs just recently.  And which entity would be one of the biggest benefactors of Paulson’s deal?  Why Goldman Sachs, natch.

These people make the Mafia look like two-bit hoodlums squabbling over a ho.  Perhaps the one pictured above…

Yep, keep tunin’ in tomorrow for the latest in the big time soap of the century.

3 Comments

  1. Paulson wants a cash infusion of 700 billion to be controlled by him, without administrative agency or court oversight.

    McCain implies Phil Gramm could become secretary of treasury in his administration if elected. That means Gramm would control the fund in about 4 months, if McCain gets elected.

    Gramm gave bank regulation and gave favorable treatment to UBS (a Swiiss bank) while a senator and then was
    employed by them when he left the Senate. Gramm wants UBS included in the 700 billion bailout.

    Get it?

  2. IvyGate. The Ivy League Blog.

    “I Was Shocked I Would Be Joining a Lower-Tier Commercial Bank”: Life After Buyout

    by Dan Haley | September 23, 2008

    As we near the “big Money Bonfire of 2008,” a number of questions weigh heavily on the nation’s mind: Should the federal government receive shares in the banks and companies being bailed out? Is $700 billion enough? Can we have another day to think this over, Mr. Paulson? But most of all the nation has been wondering what will happen to current and prospective Ivy League bankers. This is where Ivygate comes in. Last week we ran a feature where worried bankers told you they were “trying to stay positive.” This week we bring you…um, more quotes from bankers.

    George, an Ivy-educated pseudonymous banker working as an analyst at Merrill Lynch, describes how he found out about Bank of America’s buyout of Merrill:

    I was shocked. I was screaming.

    One of my friends at Bank of America texted me, ‘Hey, we might be buying you guys.’

    I was in denial. You see, Merrill has a much better repuation than a commercial bank like Bank of America. I was shocked I would be joining a lower-tier commercial bank. There’s a feeling, ‘I didn’t go through this whole interview process to work at a commercial bank.’

    Hopefully, Bank of America won’t change too much of Merrill’s culture.

    Jeffrey, a pseudonymous Ivy grad working at JP Morgan, had this to say:

    Lots of people will be jobless in the coming months.

    I applied for jobs at Lehman. I could have been that guy with the Lehman job. It’s very frightening.

    After the jump, George returns to tell us why $700 billion isn’t enough and why Goldman Sachs’s and Morgan Stanley’s decision to become “bank holding companies” is the end of i-banking as Ivy League cash bonanza.

    Earlier this week, Morgan Stanley and Goldman Sachs became “bank holding companies.” This means they will face stricter regulation in exchange for Uncle Sam’s promising to have their backs. Or something. It also means they will have a harder time making the inconceivable profits we all associate with investment banking. According to George, this may spell the end of i-banking’s mysterious popularity among Ivy League students. George says:

    Changing compensation will obviously change the attitude of students toward the industry. They might go to med school or law school instead.

    This is a sad week.

    We may be losing the competitive advantage for getting the best talent.

    George admits he is a little fearful his job will be pulled but remains confident he will have a place at Bank of America:

    Nothing is actually secure. But I guess Merrill people should feel more secure because Merrill is a better investment bank than Bank of America.

    George also has some ideas about Paulson’s proposed $700 billion bailout:

    It’s a good step toward stabilizing the turmoil. If the government can take the balance sheet pressure off the companies then the companies will look better going forward.

    Whether $700 billion is enough is another question.

    Usually, when you invest in a company you receive shares or some type of stake for your money. Should the government receive shares in exchange for this unprecedented investment? George says:

    Obviously that’s not going to be good for Wall Street.

    In the long-run I’m not sure we want state-owned enterprises.

    Why that would be…communism!

    This crisis just got ugly.

  3. Oh the poor Ivy League kids who bet the bank on investment banking and it went poof on them. Poor dears.
    Meantime some further info on Mr Paulson, former CEO of Goldman Sachs who got a mere 18 million dollar bye bye present – while he was there he got a mere 700 million in pay, dividents, stock options. Now if a mess of this was options, he probably still has a mountain of GS paper on his hands (for sure, to eliminate “conflicts of interest” in a blind trust (ha ha), so bailing out “the system” is most systematically in his interest, to say the least. Wouldn’t want to see that half billion in paper shrivel into coarse toilet paper now.

    Meantime Our Great Leader has addressed the citizenry, 19% of which give him any credibility at all, and let us all know that if we didn’t hastily back Paulson’s package, the entire economy would go down with the rough asswipe papers, and of course it would be all our fault for not taking the saving deal in 2 days flat. And McCain is heroically setting aside campaigning to tackle this job, for which he previously admitted he is incompetent (in economics); he’ll consult with Mr Gramm, who is in great part responsible for the mess. Oh, and he wants to patriotically postpone his debate, and Ms Palin’s too….

    This is almost fun !


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