The sytem is still broken and nothing is changing

The Sheriff is back in the news even though he lost his badge but his pen is still doing the swashbuckling. I was reading Eliot Spitzer in slate magazine who started to bash Goldman Sachs for the counter party payoff out of the first tranche of TARP...
As we all know Geithner was still acting NY FED President at the time and Chairman Bernanke didn't bother asking lots of questions. Eliot Spitzer offered a $12BB figure as the payoff Goldman Sachs received. Seems the bets to the fat cats are honored where as the losers like Lehman and Bear Stearns are quickly forgotten.
It's an interesting argument and it probably will not be pursued.

The system is broken because we are chasing the dead cats rather than the fat cats who still hold the money.

AIG bonuses , Madoff and other lesser Ponzis, they are peanuts compared to the vast amounts being funneled to Goldman Sachs, Bank of America, Merrill Lynch, JPMorgan Chase and others

When there is a fire, would you at least prefer to have a corrupt fire chief show up to let you watch your house burn down or do you prefer to know the bad firemen are off in Scottsdale playing golf with your insurance money?

For now President Obama, Chairman Bernanke and Secretary Geithner all believe that showing a positive spin on the Financial capital of the US (recently moved to Washington) is the right course. I disagree. Andrew Cuomo is not doing his job, going after $163MM in bonuses when AIG received $173BB!!! What a joke! just doing enough for electoral purposes and very little to vindicate the massive losses suffered by investors.

For the disenfranchised, the out of work, the uninsured, the unskilled, the road will be long and arduous while the schemers will enjoy the ill gotten gains over the next twenty years.

For the Middle class, a lesson needs to be reminded. If you do not take care of politics, politicians will make decisions for you benefiting the rich and powerful and leaving you with a debased currency and a falling standard of living.

It is right to be mad and it is important to create a framework where the finances of the country and the capitalist system is meant to reward the investors ahead of the managers. Until then the system will remain broken or maybe it never worked. It might have been an illusion!


Good trading to you


DCW