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And The Other Side Of The Rodgin Cohen Story
After the New York Times came out with a very ingenuous piece of "objective" fluffery, we have little to add except to bring readers' attention to our initial thoughts on Mr. Cohen and his place in the Wall Street parthenon.
H. Rodgin Cohen's (Failed?) Quest To Backstop Every Bank... Ever (And Usurp Geithner's Throne)
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OT. Apologies.
Gold has poped over $1125
How does Gold pope?
It puts on its silly little pointy hat and God-bling, dons its ermine robe and sits atop its bejeweled throne, silly.
I think that it was a commentary on the preeminant position that gold attained by reaching that price point. Just as the popes authority reaches across all borders, so to does the authority and influence of gold. The itch has become a stabbing pain, and the cleptocracy can no longer steal enough to make it go away.
Not impressed, he only has one monitor on his desk.
The NYT article is garbage. The only point that gets close to useful is the last 4 paragraphs, where Rodge gets nervous when asked about taxpayer losses. Prove your case Rodge. Prove that the taxpayer was better off with the bailouts, than pushing the banks' losses onto the taxpayer.
Trusting people without proof leaves you like Flounder in Animal House, getting this advice: You fucked up! You trusted us!
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The only time, in four interviews, that Mr. Cohen appeared to become defensive was while discussing the taxpayers’ role in cleaning up those excessive risks on Wall Street.
“Almost all the burden is now being borne by the banking industry itself,” he said, making reference to “fees,” “warrants” and various “special assessments.” When pressed, however, he acknowledged that ordinary citizens are — at least potentially — on the hook.
“They are at risk,” he allowed, “though if the banks stop lending, the taxpayer will be more at risk.”
His gaze sharpened slightly, his eyebrows arched. Sitting in his office over Wall Street, the likable lawyer had just gone somewhat stiff.
The taxpayer is at risk..
“They are at risk,” he allowed, “though if the banks stop lending, the taxpayer will be more at risk.”
I think he stopped talking because he didn't want to answer a question regarding excess reserves.
With banking excess reserves at such huge levels..they are not lending. They are protecting themselves (their own personal financial incentives)and their shareholders.
Of course..at the taxpayer expense as the federal reserve (taxpayer money) has provided the excess reserves.
http://www.zerohedge.com/article/lending-what-lending-excess-reserves-re...
It is our money..the taxpayer money that banks are using as a proverbial "gun to our head". Amazing.
All I can muster at this point is vote Dylan Ratigan and Art Cashin for president and vice president respectively in 2012.
;)
Tyler, did you see Gretchen Morgensons article in the NY times as regards the hidden tax credit to the homebuilders, who have billions in cash and spend millions on lobbying. Makes me want to spit.This is all going to end so badly. Just the timing.
It may end badly for the taxpayer but it looks like it will end well for the homebuilders. No wonder JPM upgraded the sector. Free money!
Edna you said your newsletters all say the same thing. That's hard to believe. There are some newsletters with an outlook like Hugh Hendry's, Hoisington's, and the like, which differ from those betting on inflation and higher interest rates.
This story reminds me of Viking history. I think a bunch of guides and angels all declared some sort of invincibility and overpowering strength was present in the western world and about how something was permanent and immortal. So the vikings just built boats and went and stuck swords in things to see if they were immortal or liars.
Viking bank run? It didn't work out so well for that Dutch bank. Maybe America should try it.
duplicate post
NY Times loves Rodgin Cohen, or Rodgin Cohen and buds have NY Times captured. This really is one of those "everything that is wrong with todays journalism" pieces.
NY Times article on Rodgin Cohen: textual fellatio. Reads like the old "Pravda".
<insert credible threat of future violence here>
"Mr. Cohen and his place in the Wall Street parthenon"
Does this mean that Mr. Cohen among Wall Street lawyers is a virgin among virgins?
As I finish up Andrew Ross Sorkin's book, "Too Big To Fail", and read the article above linked....I can't help but wonder how much the commission offered to them to pen these fluffs was. A book about the largest scams in history that produces little in the way of an antagonist(s) and paints most as heroes doing Patriotic dealing to save us....yikes.
One of the most nauseating moments (of many) of Sorkins book comes as TaxEvading Timmy was set to take a morning jog along the East River after a hellish weekend of commandeering taxpyers money to give to AIG. Young Timmy gazes out at the morning commuters wondering if he has done the right thing. Seeing us, the unwashed non-financial masses, he thinks "it is about them", "Never mind the staggering numbers. Never mind the ruthless complexity of structured finance and derivitives, nor the million-dollar bonuses of those who made bad bets. This is what saving the financial industry is really about...protecting ordinary people with ordinary jobs". page 409.
No need for Syrup of Ipecac after a dose of that...