Where Did All The Money Go? Here!

Tyler Durden's picture

In part driven by the 'regime uncertainty' of "authorities having dispensed with the rulebook in trying to shore up the tottering edifice of Western finance" and in part "a defensive response" to the crushing liquidity suck out of the credit crisis, as Sean Corrigan notes this week, money is distinct by virtue of the fact that 'it flows' and this transmission mechanism is clearly broken. US non-financial corporates hoarding of a $630bn mountain of money in 2.5 years (or 85% of retained earnings) have retarded the most incendiary effects of the Fed's extraordinary actions. The key issues will be whether these same corporates will begin to spend this cash, or whether they will simply rediscover an appetite for alternative, non-money assets (and the Fed should certainly take the opportunity to trim its swollen security portfolio by helping satisfy this reawakened urge, should it arise) and then, if they do, what those to whom they redirect the funds will do with them in their place. If the upshot is that there is a sizable remobilization of this money, things could quickly get very hot on the inflationary front if the transition is not managed well.

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Sudden Debt's picture

My own boss took a little bonus of 120 million last year, while all our wages where frozen.... With 4500 employees, that's just nuts!

catacl1sm's picture

But he makes 'life & death' decisions for the company!

 

/sarc off

Sudden Debt's picture

He's a freaking idiot who's never at the office. He hasn't got a clue whats happing in the company. It's been over 12 months since we had a managment meeting. Thank god we have capable people who don't need much guiding or we'd be bankrupt.

sgt_doom's picture

AIG is a very sound company, after all.

They are the guys who gave the world "finite insurance" (another form of financial fraud).

And the same guys who did that money transfer of $500 million with Gen Re to cook their books (another form of financial fraud).

And also those guys who employed the legendary Harvard econ prof, Martin Feldstein, also of the National Bureau of Econ Research (NIMROD), at their Financial Products as a director --- you know, those guys who sold $460 billion worth of credit default swaps without having the capital on hand to back it up (another form of financial fraud).

shuckster's picture

And funnelled pallets of taxpayer money into Goldman during the 2008 shakeup

derek_vineyard's picture

I know where the money aint going------it aint going to create jobs

Spirit Of Truth's picture

I hear the yacht industry is hiring...

francis_sawyer's picture

So you work at the White House & your boss is Obama? I didn't know Obama was 'moonlighting' as the king of Belgium...

cynicalskeptic's picture

Well, when Bob was at PW, all he was supposed to do was create a new broker system... never did.... lots of smoke and mirrors and when they caught on he got demoted to Southern Regional head and told to 'demo' the new system.... he ran for the hills and somehow got in at Met LIfe.  He destroyed that company - though the execs made a fortune.    

Don't be too hard on him though.. People got upset when he used private jets to fly in from his estate in Croatia anymore - and commercial flights are soooooo icky.  He never did like associating with people smarter than he is.

JustanEmotion's picture

hey deep, what company do you work at?

molecool's picture

Of course those 'capable people' did not get a bonus, right?

Sudden Debt's picture

I kid you not, his words where this : "they all deserve a kick in the ass and step it up or heads will roll"
I felt like spitting in his face.

Temporalist's picture

It's a good thing you stayed. The banksters need slaves.

GMadScientist's picture

Embezzlement!

Leave him explaining the hole to the board; it'd be a sweet send off.

Sophist Economicus's picture

If he owns the company, it's his money anyway -- the bonus is just a way of moving it from one pocket to the other.

 

If this is a publically held company, the shareholds and board are asleep at the switch, given what you said....

Sudden Debt's picture

It is, and we all have to comply at the sec rules for posting our Numbers and we're audited ever 3 months by ernst and young.
I've got access to all the daily figures and whatever i see isn't what we report. That's all i'll say about it.

Crab Cake's picture

You are a coward, and thats all Im going to say about it.

Sudden Debt's picture

Ha!
Iwhat would be my gain to snitch? We don't have your american laws you know. Money rules the law.
It's easy to say but nowhere have i seen anybody snitch these thing.
I know a dozen of companies, all on the stockmarket, who cook the books.
It's always been like this.

shuckster's picture

"GAAP rules will necessarily skyrocket" (in order to paper over the rampant fraud) Enron, MF = canarie 

DoChenRollingBearing's picture

Hey Sudden Debt!  I hear ya re snitching, not worth it, but DO LOOK at Rocky´s suggestion just below, tip Zero Hedge!

It sounds like your boss is not the kind of guy who reads ZH...

+ 1 and good luck!

Crab Cake's picture

Ah, I see now, you're not a coward you're a scared and conflicted criminal who is motivated only by greed.

You should leave this site and never come back. You are no better than Corzine.... just smaller.

Toolshed's picture

Get real dude. You are talking some serious shit.

smiler03's picture

After all this time Sudden Debt you suddenly decide to become a whistleblower?

I agree with others, you must be drunk. BUT if you're not, tell us more.

4500 employees.

Boss got $120m bonus in 2011.

Wages were frozen in 2011.

Boss never in the office. (You work in Belgium, so that narrows it down a huge amount).

"Thank god we have capable people who don't need much guiding or we'd be bankrupt." This is stating the bleeding obvious. Without capable staff you'd be bankrupt but thankfully they are capable so he can take a $120m bonus.

We're audited every 3 months by ernst and young.

We don't have your american laws you know. (Kind of suggests it ain't a US company).

Shenanigans (again).

Disclosure: I lived and worked in Belgium for 15 months in 1989/1990 for AG.

 

Likstane's picture

What would you gain by telling the truth?  How about being able to look yourself in the mirror without knowing you are part of the lying super-majority? 

aerojet's picture

Oh please.  The little guy in the US can't win--the system is designed to keep us right exactly where we are.  You can either suck it up and do right by your family, or you can show up to work with a handgun and try to kill the piece of shit.  It's not an act of cowardice to act in your own best interest as best you can.  Not that I wouldn't like to see more of these corporate CEOs get IED'ed, but you have to be rational about all of it, and being dead or spending life in prison is not going to help those whom you are responsible for.

Crab Cake's picture

Sounds like you are trying to convince yourself there buddy. Two options? Not very creative are you?

BigDuke6's picture

Hey, it's cool.
I can see cc is just up for a fight... So c'mon man pick me.
While I ain't no friend of sd, I think he's a Belgian pervert....

CC , how come it sez ur a member for 2yrs and this is the first I remember noticing u? Do u talk shit?
Or are u a creepy dude who bought the ID from some Chinese teenager who opened up 10 accounts to sell on eBay?
And that's why your called CrabCake.
LOL

RockyRacoon's picture

You're outta your league.  Crab Cake could have you for a snack.  We go way back.

GMadScientist's picture

So make it look like an accident then. If he's got multiple enemies, you've got abundant cover.

And he could leave said fraudulent enterprise, or is SD an indentured servant?

derek_vineyard's picture

Bosses bathroom janitor knows all.

RockyRacoon's picture

Tips: tips [ at ] zerohedge.com

slewie the pi-rat's picture

right!  Hahaha! 

trying to get him killed?  i'm wondering if he's just making this stuff up, b/c if he isn't, he might wanna get his affairs in order...

but, if i worked for a company w/ 4500 employees and that happened, i'd say the same fuking thing as sodden_debt!  but probably only if i were "kidding"...

i hope he's totally shitfaced and telling the truth, tho

we'll have a zH murder to solve and can dedicate a chat-room or just use the one for free sex

seanCorrigan or tyler, in considering the $639 Bil "mountain of money" might want to consider that it may be earmarked for the MIC by the "printer"and the "borrower of first resort" here

imo, this "excess liquidity" has already been spoken for in theBudget of the USA and via BOTH fiscal AND montary policies

it's all they've got printed of "dryPowder" and, yes, it will go into IOU paper as needed, and it may not last too long, either, given the burn rate and all the bankster-education, and of course, what the FED will do "afterTwist"...

personally, i think "after" will also be primarily about keeping that T cost-of-funds about as low as she'll go = house0crads + kickTheCan = FEDtwist2

whatever "inflation" the PPT can't wring outa the commodities is gonna hafta be "acceptable", but "twist" maybe can't be used for "too long"?  bullshit!  twist1consists of "rolling" $400 Bil from the short end into the long end, and the market soared and people unloading Ts did about as well is they had ever dreamed.  $400B and it "ends" june 12,12 or so, but we have already heard that FED policy is to keep rates low for about another year after that

maybe the FED can come up w/ something "better" for investors, but i don't see how;  not as conservatively and inexpensively to the cBank as more "twist"

i hope he surprises me, but if he does keep rates low and not change policy, fixed income investors and "savers" are gonna lose no matter what he does, aren't they?

they might try a coupla little programs for political reasons, but in the end we have a bank, and a budget and a deficit and not a whole lot more, from what i see right now

if the chairsatan runs outa short bonds, he can "swap" the banksters longBonds for cash and keep dancin the ZIRP; personally, this seems pretty good to my limited understanding, considering how terminally fuked up things are getting, macro-wize

no matter wtf anybody "wants" beyond that, as my mom usta say:  slewie!  we'll just hafta wait, and see!

GMadScientist's picture

So you don't buy Gross' MBS 'big bet'?

Thar be a slew a Slewies.

slewie the pi-rat's picture

i've said from day1 the FED has done enuf damage in this department, failed miserably at all aspects, and anybody who thinks they should "fix" MBS should be taken out back and shot

then i said that i was pretty damned sure benzelbub would not lose a minute of sleep if gross handles that MBS "portfolio" on his own.  thanks, bill!  Hahaha!

i'm not kidding about either of those things, either; there's sometimes only one of me;  you might be seeing double or worse:  pink slewies!

MeelionDollerBogus's picture

see.... that's how you GET the raise. Ooh, magic, look at all these invisible numbers turning back into re-appearing disappearing ink?

Ya, about that raise...

 

BigDuke6's picture

How I wish you were the real MDB

debtor of last resort's picture

So you work for the FED he?

 

duh...

grid-b-gone's picture

 "never at the office" is a key strategic component of plausible deniability.

 "hasn't got a clue" is the second leg of the triangle, but must be supported by an empty email trail.

 'no meetings with operational management' completes the trifecta and justifies the $120 mil payout.

 

DOT's picture

Yes, that is how it works.

Pejorative Requiem's picture

What a bunch of cry baby bull shit. Oh - the post regards non-financials, dumbass. If you don't want to out your employer, perhaps you could tell us what widget he makes?

Sam Clemons's picture

Someone has to figure out tax loopholes so that the government resorts to borrowing (printing) what it spends...
 
This chart is what happens when corporations don't have to pay taxes and the government can print what it spends passing the bill along to poor people in the form of inflation. 

molecool's picture

I think that pretty much says it all!

spekulatn's picture

Call cousin Eddie. He knowz how to deal with greedy bosses.

 

http://www.youtube.com/watch?v=4fyS5CLBgyM

 

 

TruthInSunshine's picture

There's also well over 2 trillion (probably closer to 2 1/2) in corporate debt, thanks to the low yields corporations could sell their bonds at as a result of Bernank's ZIRP (much of which was used to buy their own stock back), to consider.

I know I have mentioned this 3 times now, but there have been 3 articles where I've felt the need to highlight this because the article didn't.

 

Robust Corporate Bond Issuance Is Approaching Weekly Record


And it was near 2 trillion of corporate debt back in 2011, so who knows how much higher that figure is as of now -

Law of Unintended Consequences: Corporate Borrowing Binge

So far in 2011, syndicated loan volume has increased a whopping 56% compared to 2010, according to Dealogic. The total of $1.76 trillion is the highest single-year sum since the pre-financial crisis days of 2007...

 

...

This is yet another unintended consequence of zero percent rates.  Investment grade companies increasing their borrowing by 68% year over year has certainly not led to hiring.  Maybe we can just say that perhaps it stalls the pace of further layoffs, we seem to have gotten good at merely accepting "saved jobs" these days anyhow.

 

And so the Balance Sheet Recession continues apace for the deleveraging consumer while those with the greatest ability to borrow (and, god forbid, spend) continue to pad their balance sheets with fresh cash.  That they have no need for.


Nicely done.

 

Here's the problem the sell-siders and even many innocent observers never mention or don't understand:

This 2 trillion plus (by now, since the 1.8 trillion figure was back in 2011) of 'borrowing' IS NOT CASH. It's debt that has to be rolled over or repaid.

Dulcinea's picture

But what is important is the net borrowing, not gross.  From where I sit, I see a lot of companies who aren't investing or making plans due to the uncertain environment.  Everyone is on hold.  The net effect is deleveraging for a certain group of entities.

 

I don't know the statistics and am not suggesting you are wrong, I'm merely stating that this is not what I see in my microcosm.