Wednesday, September 22, 2010

Go All Swedish on Their As$es


The bankers own the place.”
-Senator Dick Durbin (D-IL)



Dancing Queens of Wall Street, the Beltway and the Boardroom: AH..AHHHH..



Give Barry Ritholtz Larry Summers' job!

In light of Larry Summers' resignation, Barry Ritholtz asks “what were the alternatives to the bailouts?” He explains why we should have gone Swedish instead, citing this NY Times article Stopping a Financial Crisis, the Swedish Way published exactly 2 years ago today which he then discussed in at least two of his own blog posts shortly afterwards. What did Sweden do during their 1992 banking meltdown? BR explains:
 
Sweden did not just bail out its financial institutions by having the government take over the bad debts. It extracted pounds of flesh from bank shareholders before writing checks. Banks had to write down losses and issue warrants to the government.”

A summary below from one commenter offers a five step plan to claw back the pirated public trust loot:

See the current TARP report http://www.sigtarp.gov/reports.shtml (download on the left)
The Congressional Oversight Panel has released good reports, comprehensive and exhaustive review of the TARP and many programs under and associated with TARP.
For the question of We Should Have Gone Swedish . . . Yes, or at least a modified Swedish plan to first focus on goals of stabilization, short term remedy and resolution, analysis, adjust and refine for long term sustainability. Non-goals – saving anyone.
1. kick out exec management and root out bad actors throughout the organization
2. recover ill gotten gains, compensation and bonus claw back on illusory gains
3. restructure ownership based on new cash and guarantees – haircuts or total loss across the capital structure.
4. viable business plan for sustainable recovery or resolution/wind down
5. priority on compensating gov’t (taxpayer) for guarantees and cash infusion
The stigma of nationalism or socialism needs to be eliminated, such that if the gov’t has to step in to bailout a firm (industry) that the investor structure (ownership) has changed to an entity with the number one priority as stewardship and best interest of taxpayer funds. If the goal is to return the firm to a private sector entity then it is not nationalism or socialism. Any reference to being similar to Hugo Chavez or other dictator lead regime is ludicrous.

From Wall St. to the Beltway to the board room, extracting pounds of flesh from the exclusionary, incestuous, towel-snapping boys club is something that the R-Teabagger Party and its counterpart, the D-Fleabagger Party could come together and focus on real economic issues instead of wedgies. But that unlikely pairing is as unlikely as team divide and conquer clowns Glenn Beck and Jon Stewart co-authoring a come together, kumbaya tell-all called The Brotherhood of the Traveling Pants or something. Who would have possibly thought that Comedy Central would be any different than Fox? When the ruling class war is on America's middle class who are being looted of their jobs, homes and healthcare, who better than to lead the divide and conquer parade of “rallies” than the  elitist ruling class's bi-hucksterism court jesters! The high-school minded, sports enthusiast plodding plebery serve their mobby pitchforked purpose, and the puppet master handlers laugh all the way to the bank. American tea and flea baggers, they loves them some wedgies! AH..AHHHHH..


Party on, plebes!


-2Truthy

No comments: