Comments on: Gasparino: No woodshed for the fat cats, just a lovefest http://www.creditwritedowns.com/2009/12/gasparino-no-woodshed-for-the-fat-cats-just-a-lovefest.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Anonymous http://www.creditwritedowns.com/2009/12/gasparino-no-woodshed-for-the-fat-cats-just-a-lovefest.html#comment-57785 Anonymous Wed, 16 Dec 2009 11:14:00 +0000 http://www.creditwritedowns.com/2009/12/gasparino-no-woodshed-for-the-fat-cats-just-a-lovefest.html#comment-57785 Stop moaning and crying. In America, we love the super-rich. We've had a love affair with Donald Trump, Warren Buffet and Bill Gates for decades. I personally am more than happy to send my entire life savings to our beloved lord and savior, Mr. Blankfein, so that he may become even richer. I can starve in the gutter. That's not a problem But does our lord and savior not deserve a golden palace? Stop moaning and crying. In America, we love the super-rich. We’ve had a love affair with Donald Trump, Warren Buffet and Bill Gates for decades. I personally am more than happy to send my entire life savings to our beloved lord and savior, Mr. Blankfein, so that he may become even richer. I can starve in the gutter. That’s not a problem But does our lord and savior not deserve a golden palace?

]]> By: Blissex http://www.creditwritedowns.com/2009/12/gasparino-no-woodshed-for-the-fat-cats-just-a-lovefest.html#comment-57783 Blissex Wed, 16 Dec 2009 08:42:00 +0000 http://www.creditwritedowns.com/2009/12/gasparino-no-woodshed-for-the-fat-cats-just-a-lovefest.html#comment-57783 «<i>Borrow cheaply at the low, government-backed rates, and put that cash in higher-yielding bonds.On Wall Street, it’s known as the "carry trade" — and the taxpayers are financing the vast profits from it, through all the ways listed above.</i>» That has been government policy for decades -- in order to capitalize or recapitalize "national champions" the Fed and the rest of government guarantee them easy "carry trade" profits. Greenspan has called it a policy of rebuilding balance sheets. Consider this simple example from Interfluidity as to one of the means used, guaranteeing a fat "prime rate" spread: http://www.interfluidity.com/posts/1160447599.shtml The USA elites are still practicing industrial policy on a massive scale, by providing guaranteed profits (carry trade) and free capital (regulatory exemption, Fed facilities) to "strategic" sectors, except that the latter are now finance and military, instead of unionized industries (see how subsidies are generously available to non union sectors and how union sectors have been hobbled in the past). And that the industrial policy is officially denied to avoid riling the losers in the unionized industries (not many are left). «Borrow cheaply at the low, government-backed rates, and put that cash in higher-yielding bonds.On Wall Street, it’s known as the “carry trade” — and the taxpayers are financing the vast profits from it, through all the ways listed above.»

That has been government policy for decades — in order to capitalize or recapitalize “national champions” the Fed and the rest of government guarantee them easy “carry trade” profits. Greenspan has called it a policy of rebuilding balance sheets.

Consider this simple example from Interfluidity as to one of the means used, guaranteeing a fat “prime rate” spread:

http://www.interfluidity.com/posts/1160447599.shtml

The USA elites are still practicing industrial policy on a massive scale, by providing guaranteed profits (carry trade) and free capital (regulatory exemption, Fed facilities) to “strategic” sectors, except that the latter are now finance and military, instead of unionized industries (see how subsidies are generously available to non union sectors and how union sectors have been hobbled in the past).

And that the industrial policy is officially denied to avoid riling the losers in the unionized industries (not many are left).

]]>