Friday, July 10, 2009

PPIP? PPPlease

"It's pathetic that the real reporting has been left to a music magazine and some independent bloggers."
Matt Taibbi

Now, The BBB wasn't mentioned specifically, but I'm sure Matt had us in mind when interviewed post expose on GS in Rolling Stone entitled, "The Great American Bubble Machine." He basically blames GS for the creation and destruction of every bubble going back to the 30s and points to political influence all the way up to Obama. This story is becoming old news so I won't rehash more quotes, but interesting that GS was also involved in another big story this week, one of possible "secret formula" theft by a leaving employee.

"The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways,” Mr. Facciponti said in the court, according to Bloomberg. “The copy in Germany is still out there, and we at this time do not know who else has access to it.”


This is what GS' lawyer had to say concerning Sergey Aleynikov, who supposedly uploaded GS' proprietary formula for evaluating trades in microseconds to ensure huge profits. But doesn't this quote beg a simple question from the judge? If others could use this formula to manipulate the markets, isn't this what you are already doing, GS? Not much of a stretch I think, but it would be fascinating if someone else was able to use it to steer the market in the same way GS appears to in the last 20 minutes of daily trading. By the way, have we received an explanation as to why trading was extended 15 minutes durin a session last week ?


Now to the title. Remember when the bailout money was supposed to relieve the banks of all their toxic assets, then a week later it was decided no, that's no good, let's just give the money to the banks. Then remember this PPIP thing, where we were going to let private equity leverage loans at 10-1 with explicit caps on losses, to buy up to a trillion dollars in toxic assets and that this would save our financial system? Well, turns out PPIP isn't quite going that far. Try 4% of that original figure, $40 billion. $40 billion, does that help anything? Does anyone else feel like Geithner Paulsoned us with this doomsday scenario at taxpayer liability to go along with this BS?


Elizabeth Warren of the Congressional oversight committee reiterated today that banks are paying back warrants at 66% of face value and continue to push to pay even less. At least someone is pushing our interests, even if their advice goes unheeded.


And last, congratulations to Anon on his new baby boy!


http://www.rollingstone.com/politics/story/28816321/the_great_american_bubble_machine

http://www.nytimes.com/2009/07/07/business/07goldman.html

8 comments:

Tiger Coach said...

Ax... And what will come of a government inquiry? let's really find out who is doing the lobying... and then make inquiries. Why is it that the same payers are making the calls after they led the country to the brink of financial ruin?

AX said...

I think we can fashion a short list of pols who we could actually support from those supporting Paul's quest to audit the Fed...Grayson, Kaptur and, well, Paul!

Anonymous said...

Ax...
Knowing that GS will cruch earnings... and have an upbeat forecast for their future will move Wall street for the day, but i beliee it will be time to look at FAZ again...

Have you been following the beating that WYNN is taking? Why isn't mcri following suit?

Are you still making out on FAZ/

Anonymous said...

http://www.opencongress.org/bill/111-h1207/show

AX said...

Actually opened up in the money on FAZ yesterday, but that gain was short-lived. Am thinking about dumping pre-GS if even or close, then rebuying in a week or 2....we'll see how Monday goes.

Anonymous said...

any thoughts on MCRI?

AX said...

seems very subject to general market sentiment, wouldn't touch it either way

Anonymous said...

Ax...
i have 9/2.5s... looking for a big down day to possibly dump...take some losses....then look coser at wynn... I wishi wouldhave followed my own advise on that one!!!