Crybaby Capitalism
From Flecks latest Crybaby Capitalists Whine For More...
It would be reasonable to expect that reckless behavior begets negative consequences. But on Wall Street, the rules are different.
Especially if you are CEO Richard Syron of Freddie Mac. Financial trouble turns to disaster under your irresponsible watch, and for your efforts, you get to keep your job and earn $38 million.
David Andrukonis (Freddie's former risk officer) recalled telling Mr. Syron in mid-2004 that the company was buying bad loans that...
"would likely pose an enormous financial and reputational risk to the company and the country."
CEO Daniel Mudd at Fannie Mae has pocketed $42 million since he took over in 2004.
Treasury Secretary Henry Paulson "begs for money, and authorities help him save the GSEs (Fannie and Freddie), then says he has no plans to use the money...
and hires Morgan Stanley (low bidder at $95,000) to help him understand the authority he has received.
If all the foregoing weren't so pathetic, it might actually be funny."
It is just despicable that under the guise of capitalism this kind of behavior is permitted. Multimillionaires whine for bailouts and get them.
From Nouriel Roubini... in the Aug. 2 issue of Barron's, he predicted that before all is said and done,
the financial sector might be facing $2 trillion in write-downs because banks have not yet factored in the losses that have extended beyond subprime.
Roubini also believes that the consumer credit side of the banks' business -- specifically HELOCs, home equity lines of credit -- might turn out to have insufficient reserves. He thinks that hundreds of banks will go bust.
Why should the reckless make millions along the way, then have the public pay for their mess?
I for one think it's about time that people started acting like adults.
I know that wanting something to happen is certainly not going to make it happen, but I find the whole scene simply galling.
I keep searching for the right phrase to describe what our present environment has become, and my current favorite remains "crybaby capitalism."
The Nattering One muses... Fleck mirrors our lament's re: taking accountability; unjustified bailouts;
overpaid and overrated executive management the likes of Rick Wagoner at GM and Richard Syron at Freddie Mac.
Regarding the HELOC reserve issue... We already Nattered on the $84 billion in Heloc that Wells Fargo alone is holding...
and how $12 billion had been put in "a special off book portfolio" and how the $60 billion in 2nd position would become a problem in Home Equity Morass.
FYI: Upon foreclosure 2nd TD's are getting as much as $3K and as little as ZERO. Do the math. Today, Wells stock rode the wave of this chump pump up another 6%.
Our question of the day to the "approving" and apathetic investors who always get caught holding the bag in this ponzi scheme:
Does this fantasy world of yours have amusement rides too?
It would be reasonable to expect that reckless behavior begets negative consequences. But on Wall Street, the rules are different.
Especially if you are CEO Richard Syron of Freddie Mac. Financial trouble turns to disaster under your irresponsible watch, and for your efforts, you get to keep your job and earn $38 million.
David Andrukonis (Freddie's former risk officer) recalled telling Mr. Syron in mid-2004 that the company was buying bad loans that...
"would likely pose an enormous financial and reputational risk to the company and the country."
CEO Daniel Mudd at Fannie Mae has pocketed $42 million since he took over in 2004.
Treasury Secretary Henry Paulson "begs for money, and authorities help him save the GSEs (Fannie and Freddie), then says he has no plans to use the money...
and hires Morgan Stanley (low bidder at $95,000) to help him understand the authority he has received.
If all the foregoing weren't so pathetic, it might actually be funny."
It is just despicable that under the guise of capitalism this kind of behavior is permitted. Multimillionaires whine for bailouts and get them.
From Nouriel Roubini... in the Aug. 2 issue of Barron's, he predicted that before all is said and done,
the financial sector might be facing $2 trillion in write-downs because banks have not yet factored in the losses that have extended beyond subprime.
Roubini also believes that the consumer credit side of the banks' business -- specifically HELOCs, home equity lines of credit -- might turn out to have insufficient reserves. He thinks that hundreds of banks will go bust.
Why should the reckless make millions along the way, then have the public pay for their mess?
I for one think it's about time that people started acting like adults.
I know that wanting something to happen is certainly not going to make it happen, but I find the whole scene simply galling.
I keep searching for the right phrase to describe what our present environment has become, and my current favorite remains "crybaby capitalism."
The Nattering One muses... Fleck mirrors our lament's re: taking accountability; unjustified bailouts;
overpaid and overrated executive management the likes of Rick Wagoner at GM and Richard Syron at Freddie Mac.
Regarding the HELOC reserve issue... We already Nattered on the $84 billion in Heloc that Wells Fargo alone is holding...
and how $12 billion had been put in "a special off book portfolio" and how the $60 billion in 2nd position would become a problem in Home Equity Morass.
FYI: Upon foreclosure 2nd TD's are getting as much as $3K and as little as ZERO. Do the math. Today, Wells stock rode the wave of this chump pump up another 6%.
Our question of the day to the "approving" and apathetic investors who always get caught holding the bag in this ponzi scheme:
Does this fantasy world of yours have amusement rides too?
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