Friday, February 26, 2010

And when the Great Brenancke speaks

All who hear his words quiver in fear. Unless you are one of the big swinging dicks that run Wall St. If you are one of them, the following exchange is your idea of comedy.
Investors used these swaps, which were like gasoline on fire during the near meltdown of U.S. financial markets in September 2008, to hedge against the risk of losses from a debt default. For countries such as Greece, however, they also raised borrowing costs, making it harder to prevent a default.

"Since there is no requirement that purchasers of credit default swaps actually own any of the underlying debt, we have a situation in which major financial institutions are amplifying a public crisis for what would appear to be . . . private gain," Dodd told Bernanke. "I want to ask you here whether or not you think there ought to be limits on the use of credit default swaps to prevent the intentional creation of runs against governments."

"I just want to say first of all that we are looking into a number of questions related to Goldman Sachs and other companies and their derivatives arrangements with Greece and on this issue as well," said Bernanke, who's attempting to show Congress that the central bank can be an effective regulator.

"Using these instruments in a way that intentionally destabilizes a company or a country is — is counterproductive, and I'm sure the SEC will be looking into that," he said. "We'll certainly be evaluating what we can learn from the activities of the holding companies that we supervise here in the U.S."
Their GOP allies having made sure there are no laws or regulations to break, Lloyd Blankfein does not need to turn his shares into gold as he retires to his private island. In fact, he can continue to pursue his plundering ways with derivatives until someone does make his form of grand theft illegal. Right after pigs get their pilots licenses.

// posted by montag @ 12:21 PM
Comments:
This comment has been removed by the author.
# posted by Blogger Cirze : 2:38 PM
 
Which is undoubtedly coming right up!

Thanks for your wisdom.

S

Right after pigs get their pilots licenses.
_______________
# posted by Blogger Cirze : 2:43 PM
 

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