Oh my goodness.
Hedge fun managers made a combined 11.5 BILLION dollars last year. Thanks to, well, you and me, actually. Since we bailed them out. And now, they're going to buy those troubled, oops, I mean "legacy" assets from the banks with the money we gave them. And if it doesn't work out for them, guess who takes on all the risk? You and Me!
Excerpt:
So you and I and other taxpayers have kept these hedge-fund honchos flush enough to be able to reap the bonanza that Geithner now wants to bestow on them for cleaning up the mess they and others on Wall Street made -- a bonanza to be financed by you and me and other taxpayers, who are taking on all the risk.
Full text:
http://robertreich.blogspot.com/2009/04/why-you-should-work-for-hedge-fund.html
Don't forget to read the end where Robert Reich slams in Economics Arch Nemisis Larry "The Blob" Summers.
Showing posts with label robert reich. Show all posts
Showing posts with label robert reich. Show all posts
Is it time to just quit and drink whisky 24/7?
Yeah, so, if I had a full time job, I'd have less time to read about how bad the economy is and how no one has jobs. Ha ha. As it stands, I am underemployed and do read about the financial crisis. (See previous two posts.) The thing that I read today that scared the crap out of me the most was this excerpt from My Economist Crush, Robert Reich:
...if our very own Secretary of the Treasury doesn't even learn of the bonuses until months after AIG has decided to pay them, and cannot make stick his decision that they should not be paid, AIG is not even accountable to the government. That means AIG's executives -- using $170 billion of our money, so far -- are accountable to no one. (The Real Scandal of AIG ~ 3/14/09)
Oh man. We. Are. Faqt.
Full blog post here.
...if our very own Secretary of the Treasury doesn't even learn of the bonuses until months after AIG has decided to pay them, and cannot make stick his decision that they should not be paid, AIG is not even accountable to the government. That means AIG's executives -- using $170 billion of our money, so far -- are accountable to no one. (The Real Scandal of AIG ~ 3/14/09)
Oh man. We. Are. Faqt.
Full blog post here.
Robert Reich Is My Economist Crush
So, the other day I was on All Things Considered asking about the stimulus package. But you know what? I forgot to blog about the other time I was on the radio, on On Point, two weeks before that. Why am I such a NPR groupie? I dunno. Just am.
If you open this link for the WBUR OnPoint media player and drag the bar to 16:10 minutes left, you'll hear me talking to Robert Reich
Robert Reich and Conan OBrien as Buddy Cops
Anyway, here's why I love Bob Reich:
Robert Reich and Conan OBrien as Buddy Cops
Keynesian Approach
Robert Reich has an abridged bio on John Maynard Keynes, economic advisor from the Depression Era. Here's an excerpt:
Governor Palin, on the other hand, is promoting (see her statements during the infamous turkey video) the idea that failed so very miserably during the Great Depression -- that government has to cut spending and balance budgets during an economic downturn. See the full Reich blog on John Maynard Keyes as to why that is a very stupid thing to think. Or, actually, simply look at the colossal failure of the Hoover Adminstration.
Keynes' basic idea was simple. In order to keep people fully employed, governments have to run deficits when the economy is slowing. That's because the private sector won't invest enough. As their markets become saturated, businesses reduce their investments, setting in motion a dangerous cycle: less investment, fewer jobs, less consumption and even less reason for business to invest. The economy may reach perfect balance, but at a cost of high unemployment and social misery. Better for governments to avoid the pain in the first place by taking up the slack.Keynes was the mastermind behind the idea that government funding of jobs and getting the people to work helps in a recessed/depressed economy. That is why Obama is proposing 2.5 million jobs (see Presidental [elect] address posted below) for infrastucture development and greenification of government buildings & schools. AND LIBRARIES!!!
Governor Palin, on the other hand, is promoting (see her statements during the infamous turkey video) the idea that failed so very miserably during the Great Depression -- that government has to cut spending and balance budgets during an economic downturn. See the full Reich blog on John Maynard Keyes as to why that is a very stupid thing to think. Or, actually, simply look at the colossal failure of the Hoover Adminstration.
Citi gets a sweet sweet deal
I'm a subscriber to Robert Reich's blog. Today he posted this about Citi Corp getting a bail out:
He had previously posted an item about Citi versus the The Big Three Automakers (GM, Ford & Chrysler) and why Citi should not be favored over the The Big Three. Citi's failure effects the market; automakers' failure effect that proverbial "Main St", meaning working and middle class peoples.
If you're looking for an informed opinion on the economy, I highly recommend Reich. I barely think i need to mention this, but his ideas are considerably more leftist (I would requalify that as more "middle class focused" as opposed to focused on the rich) just so you know.
Meanwhile, Obama just finished a press conference introducing his new economic team. The members are a mix of experienced and new, centrist and center-left. I have no commentary to add to this, as the only thing I know abotu any of them is that Lawrence Summers, now head of the National Economic Council, ticked off a poopload of ladeez at Harvard when he said girls are genetically crappy at math. Or something like that.
This is not a particularly good deal for American taxpayers, but it is a marvelous deal for Citi. In return for all the cash and guarantees they are giving away, taxpayers will get only $27 billion of preferred shares paying an 8 percent dividend. No other strings are attached. The senior executives of Citi, including those who have served at the highest levels in the US government, have done their jobs exceedingly well. The American public, including the media, have not the slightest clue what just happened.
Meanwhile, more than a million workers in the automobile industry, along with six million homeowners in danger of losing their homes, and a millions of Americans who depend on small businesses and retailers for paychecks, are getting nothing at all.
He had previously posted an item about Citi versus the The Big Three Automakers (GM, Ford & Chrysler) and why Citi should not be favored over the The Big Three. Citi's failure effects the market; automakers' failure effect that proverbial "Main St", meaning working and middle class peoples.
If you're looking for an informed opinion on the economy, I highly recommend Reich. I barely think i need to mention this, but his ideas are considerably more leftist (I would requalify that as more "middle class focused" as opposed to focused on the rich) just so you know.
Meanwhile, Obama just finished a press conference introducing his new economic team. The members are a mix of experienced and new, centrist and center-left. I have no commentary to add to this, as the only thing I know abotu any of them is that Lawrence Summers, now head of the National Economic Council, ticked off a poopload of ladeez at Harvard when he said girls are genetically crappy at math. Or something like that.
Tax Season and Robert Reich
One of the blogs I have on my RSS feed is Robert Reich's blog. Sometimes it's a little over my financial head, sometimes it's right on the level. And sometimes it's right on the level and far too important not too pass along:
Time to Pay Your Taxes, Support Wall Street, and Take a Licking
http://robertreich.blogspot.com/2008/04/time-to-pay-your-taxes-support-wall.html
Robert Reich was secretary of labor in the first Clinton administration. He also makes appearances on Conan O'Brien, The Daily Show and The Colbert Report, as well as regular commentary on Marketplace, public radio's business program.
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