Vulture Capital
I’m so happy to see that Sam Zell, the “grave dancer” who has already destroyed our local newspaper, has found fresh territory to plunder. Sam and a bunch of former Resolution Trust Company (R.T.C.) officials are working day and night to position themselves to take advantage of the Credit Crisis.
What is obvious to former R.T.C. officials is that, like the last go around, a great deal of money will be made by a select group of investors and business operators, particularly those with government contacts. The former government officials said in interviews that much of what is motivating them is a desire to help the nation recover from this latest stumble. But they acknowledge they intend to be among the winners who emerge.
“Fortunes will be made here, no doubt about it,” said Gary J. Silversmith, one of more than a dozen former R.T.C. officials interviewed who now are involved in enterprises seeking to profit from bank bailouts.
Look, I understand this is the nature of capitalism, but somehow I envisioned that after the taxpayers bailed out the capitalists, it would be the U.S. Treasury that benefited from the resale of these distressed assets, not the Robber Barons.
Wasn’t that the premise of TARP?
The question I often ask, is how many of these same people, were the same hands in the pot that created this unsustainable market in the first place, knowing the market would pop and the naive and hopeful would lose so much of what they held dear?
The question I often ask, is how many of these same people, were the same hands in the pot that created this unsustainable market in the first place, knowing the market would pop and the naive and hopeful would lose so much of what they held dear?
“How could an insider bailout of other insiders ever benefit the taxpayers?” That is the real question.
“How could an insider bailout of other insiders ever benefit the taxpayers?” That is the real question.
the government is not in the business of buying and reselling debt for a profit–in fact they are not in the business of owning companies either–they should really contract with investment firms like PIMCO–Bill Gross–who are experts in this arena and pay them in the same fashion that other institutions would pay for their services or realize that they will be buing these distrerssed assets at reatil prices and selling them to professionals at wholesale prices–not a formula for success–but I suspect that politically the government is incapable of doing the smart thing
the government is not in the business of buying and reselling debt for a profit–in fact they are not in the business of owning companies either–they should really contract with investment firms like PIMCO–Bill Gross–who are experts in this arena and pay them in the same fashion that other institutions would pay for their services or realize that they will be buing these distrerssed assets at reatil prices and selling them to professionals at wholesale prices–not a formula for success–but I suspect that politically the government is incapable of doing the smart thing
the government is not in the business of buying and reselling debt for a profit–in fact they are not in the business of owning companies either–they should really contract with investment firms like PIMCO–Bill Gross–who are experts in this arena and pay them in the same fashion that other institutions would pay for their services or realize that they will be buing these distrerssed assets at reatil prices and selling them to professionals at wholesale prices–not a formula for success–but I suspect that politically the government is incapable of doing the smart thing
Nah, “the government is not in the business” of a lot of things. Like selling off the public’s interests in oil, minerals, timber, grazing and such for a little sex and a song (see stories on the Denver Federal Minerals Management Service.)
As to owning companies, I guess “divesting” Fannie Mae and Freddie Mac took them out of the mortgage business, except of course for programs that underwrite VA and other home loan programs. Anybody else got any other favorite examples of how “the government” is not in a business? ASt o buying and reselling debt, should “we” trust the people who will actually get their hands on the trillions in assets to buy low and sell high for the benefit of the Republic? Maybe the RepubliCANS. I would rather see some GS-9 subject to the authority of Barack Obama, however indirectly, manage purchase and sale, than some Slick Willie from a silk-stocking, private-jet 88th-story firm in Noo Yawk.
By my lights, it’s not a matter of “the government” being able or not to “do the smart thing.” It’s all about the ability of interested parties to seize a governmental function with a buttload of money attached to it, and vampiring off another billion or two gallons of the nation’s Real Wealth life blood. Maybe “we” need a few less “Experts,” who to my eye look a lot like the guy behind the upturned cardboard box with the shells and the pea or the three cards, find the queen and 10 will get you 20. Right.
What we got is the greedy of today stealing from the needy of tomorrow.
Nah, “the government is not in the business” of a lot of things. Like selling off the public’s interests in oil, minerals, timber, grazing and such for a little sex and a song (see stories on the Denver Federal Minerals Management Service.)
As to owning companies, I guess “divesting” Fannie Mae and Freddie Mac took them out of the mortgage business, except of course for programs that underwrite VA and other home loan programs. Anybody else got any other favorite examples of how “the government” is not in a business? ASt o buying and reselling debt, should “we” trust the people who will actually get their hands on the trillions in assets to buy low and sell high for the benefit of the Republic? Maybe the RepubliCANS. I would rather see some GS-9 subject to the authority of Barack Obama, however indirectly, manage purchase and sale, than some Slick Willie from a silk-stocking, private-jet 88th-story firm in Noo Yawk.
By my lights, it’s not a matter of “the government” being able or not to “do the smart thing.” It’s all about the ability of interested parties to seize a governmental function with a buttload of money attached to it, and vampiring off another billion or two gallons of the nation’s Real Wealth life blood. Maybe “we” need a few less “Experts,” who to my eye look a lot like the guy behind the upturned cardboard box with the shells and the pea or the three cards, find the queen and 10 will get you 20. Right.
What we got is the greedy of today stealing from the needy of tomorrow.