Saturday, May 3, 2014

Buffett Still Blowing Kisses To Bernanke

By Chris Rossini

Liz Claman is live tweeting from Mount Olympus today. It's Berkshire Hathaway's annual conference where the words of wisdom are being parsed down for the unwashed masses.

Warren "The Sage" Buffett appears to still be blowing kisses to Ben "The Hero" Bernanke:

Of course Buffett (who was a champion of the publicly-hated heist known as TARP) would think that Bernanke was "very smart". After all, the almost $1 Trillion in stolen taxpayer loot was going to bailout Berkshire holdings, which included Goldman Sachs Group, US Bancorp, American Express and Bank of America.

But, let's keep some perspective here. The TARP robbery was not as glamorous as you'd think. It wasn't all smiles:
Ryan McMaken reminds us that: "Prior to the passage of TARP, members of Congress admitted that calls from their constituents were 95 percent or more against the passage of TARP."

And yet, despite the fact that the Bernanke and the Congressional bandits were "not getting a lot of support," the dirty deed happened anyway. In these modern times, such a dastardly feat earns you accolades and special honors:

Chris Rossini is on Twitter

1 comment:

  1. did you say dastardly feat earns you accolades and special honors:

    New Treasury Chief from JPMorgan-BearStearns

    Don't forget JPMorgan and Bear Stearns paired up to repeatedly gouge Jefferson County, Alabama on municipal financing. Bloomberg reported:

    JPMorgan, Bank of America, Bear Stearns, and Lehman Brothers Holdings Inc. charged Jefferson County about $50 million above prevailing prices for 11 of the interest-rate swaps the county bought between 2001 and 2004. None of the fees were disclosed to the commissioners, records show.

    Does it make you feel better someone from JPMorgan and Bear Stearns will be in Washington to help distressed municipalities?

    GASB has ensured government balance sheets will blow up in the coming year. When full pension liabilities hit, as required, cities and states will overnight look like a Texas bank in the midst of the oil bust.

    Wall Street investment houses and private equity underwriters (PEU's) have billions on the sidelines for public infrastructure. They need a disequilibrium event which the accounting profession kindly supplied. Municipal revenue streams, water, sewer, toll roads, parking, airports, etc. will likely be fire sold to fund monstrous pension deficits. Think Chicago parking or Illinois toll roads.

    Treasury has a Wall Street insider in place to ensure things happen to the big money boys' advantage. It's the American branded Government-Corporate Monstrosity, Eisenhower's Military-Industrial Complex on trillions in federal steroids. A state and local finance crisis is coming.

    Also, PEU's stand to benefit from public pensions needing to have higher returns. I expect they'll be able to buy state/municipal cash cows on the cheap and garner a larger chunk of public pension money for investment purposes. PEU's win, which is no surprise given politicians Red and Blue love PEU.