Gambler Mae & SIV Mae
From Flecks latest on MSN:
"Gambler Mae was my name for the fictional entity I proposed should be created to bail out...
all losing trades everywhere, be they stock losses, racetrack losses or losing lottery tickets.
I modeled Gambler Mae on proposals being floated by our comrades in Congress who seem to think that the entire mortgage and housing sectors...
are deserving of a bailout, despite the reckless behavior on display there that has brought us to where we are today.
This week I have another entity of entitlement to add to the list: SIV Mae.
That seems a fitting description of the super-duper bailout put together by the Goldman Sachs subsidiary known as the U.S. Treasury Department.
Wall Street, the Treasury Department and the Bank of England appear determined to do whatever it takes...
so that we have absolutely no price discovery on any mortgage-related assets that may have gone bad...
thereby giving a pass to the folks who've made obscene amounts of money conceiving and marketing them."
A friend of Flecks:
"How anyone can look at the creation of this fund as anything other than a cynical way of moving an existing pile of crap from one place to another is beyond me.
The fact that no one seems to think there is anything wrong with it (and I include the regulators) tells you just how 'fixed' the markets' problems are.
The level of terror that must exist in the boardrooms of the banks and regulators that peered into Pandora's box this summer must be extreme.
They set up the conduits to skirt balance-sheet constraints, and investors realized they were getting paid no-risk premium to buy the paper and fled.
Meanwhile, in the background, Moody's is telling us in no uncertain terms that massive downgrades of subprime-laden CDOs are coming."
"Gambler Mae was my name for the fictional entity I proposed should be created to bail out...
all losing trades everywhere, be they stock losses, racetrack losses or losing lottery tickets.
I modeled Gambler Mae on proposals being floated by our comrades in Congress who seem to think that the entire mortgage and housing sectors...
are deserving of a bailout, despite the reckless behavior on display there that has brought us to where we are today.
This week I have another entity of entitlement to add to the list: SIV Mae.
That seems a fitting description of the super-duper bailout put together by the Goldman Sachs subsidiary known as the U.S. Treasury Department.
Wall Street, the Treasury Department and the Bank of England appear determined to do whatever it takes...
so that we have absolutely no price discovery on any mortgage-related assets that may have gone bad...
thereby giving a pass to the folks who've made obscene amounts of money conceiving and marketing them."
A friend of Flecks:
"How anyone can look at the creation of this fund as anything other than a cynical way of moving an existing pile of crap from one place to another is beyond me.
The fact that no one seems to think there is anything wrong with it (and I include the regulators) tells you just how 'fixed' the markets' problems are.
The level of terror that must exist in the boardrooms of the banks and regulators that peered into Pandora's box this summer must be extreme.
They set up the conduits to skirt balance-sheet constraints, and investors realized they were getting paid no-risk premium to buy the paper and fled.
Meanwhile, in the background, Moody's is telling us in no uncertain terms that massive downgrades of subprime-laden CDOs are coming."
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