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destruction of US sovereign currency? Not true, right now USD is on steroid reinforced Viagra, you can't blame Paulson can you? Look, the strong dollar is working, what is your problem?
justme
@
2008 Oct 15, 10:53pm
Well. let me count the ways the treasury loves the banks more than the people:
1. We get 5% dividend on preferred stock in Morgan Stanley, but Mitsubishi gets 10%.
2. We get 15% warrants in Morgan Stanley, but Mitsubishi gets 100% convertible stock.
3. We do not know what price we are paying for preferred stock, but Mitsubishi just re-negotiated its conversion price from 30+ to $25.25.
4. We get 5% divident on Goldman Sachs preferred stock, Warren Buffett gets 10%.
And so it goes, on and on and on. The gang-of-9 bank CEOs just signed 1-page contracts with Henry Paulson and the Treasury on Sunday. The terms have not been disclosed to the public, which is already and, but how on earth can a single page contract possibly protect the public taxpayer??
Paulson is batting for his cronies, and should be fired.
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According to this article in the NY-Times:
http://tinyurl.com/3hzwmp
In its latest questionable tactic, the Treasury is forcing banks to take billions of taxpayer dollars and lend it out - effectively trying desperately to blow some air back into the lending bubble. They know it will ultimately lead to an unsustainable debt burden on the US taxpayer, and very likely US government default but they don't care. This can't just be stupidity or greed - it is treason.
(Mish's take on this is over here: Compelling Banks To Lend)
The actions taken by the Treasury in recent days show a pattern of putting U.S. citizens/taxpayers under a huge public debt burden, and also encourage every possible way to get them into private debt. Simultaneously, avenues that would _reduce_ private debt, or reduce risk to taxpayers are being blocked, derailed or discouraged.
Why?
Why is there a systematic policy bias towards forcing the US into default? Why is the Treasury making decisions that push generations of Americans into debt-slavery and eventual destruction of US sovereign currency?
Which team is Paulson batting for?
SP