The S&L and Junk Bond Redux
03-04-07
mpg

Goldman, Merrill Almost `Junk,' Their Own Traders Say
A quote...."March 2 (Bloomberg) -- Goldman Sachs Group Inc., Merrill Lynch & Co. and Morgan Stanley, which earned a record $24.5 billion in 2006, suddenly have become so speculative that their own traders are valuing the three biggest securities firms as barely more creditworthy than junk bonds."

Right after they gave out all those huge bonuses to themselves too, it must be one of those strange inexplicable coincidences.

Let's see how this goes shall we, the Fed encourages Banks to give millions of loans to people who don't have the ability to pay them back (i.e. pump money), the banks have the Financial firms repackage them and sell them to any sucker who wants them, like your pension plan, state pension plans, stupid foreigners....you know - the usual idiots.  The Financial firms get windfall profits for simply shuffling worthless paper to unsuspecting investors, (some not so unsuspecting, but a little kick back goes a long way....no?) and the entire economy goes into the tank with this pump (the money supply) and dump (the worthless paper) scheme.  So in the end the Bankers (through fees) and the Brokers (through larger fees) make “buco bucks” and the suckers get left holding an empty bag.

This ALL SOUNDS SO FIMILIAR - Where is Michael (Milk'em) Milken, "I certainly hope so" Charles Keating and the K(ch)eating Five anyway? - mpg