John Lounsbury
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Recovery Only Widening the Gap Between Haves, Have Nots [View article]
Great topic and I can't disagree with much of anything that you have written. I am such a numbers wonk that I would have liked a little more data, even if just graphical, for some analytical and visual impact.
I'll will take what you have written, though, and stop nit picking.
On Goldman and CIT: No Free Lunches [View article]
You didn't mention it, but Goldman is lobbying heavily to avoid congressional action to put some teeth into stopping naked shorting. Matt Taibbi has an article coming on this in Rolling Stone.
How to get rich:
1. Buy a pile of CDS contracts on company x.
2. Naked short company x stock into the ground.
3. Lack of common equity value dries up credit availability.
4. Chapter 11 filing results.
5. Collect on the CDS contracts.
Where does the money come from? The government prints it and puts it into banks. The banks use it to carry on their CDS scams.
Okay, so this is an oversimplification. However, it is valuable for illustrative purposes. There are perverse incentives at work here.
Good job in keeping attention on these problems, Reggie.
Wall Street Breakfast: Must-Know News [View article]