Dear Jim,
Americans are feeling furious. These TARP paybacks are absurd. We even hear the Treasury Secretary talk about the “profit” we made. This is such nonsense for the above reasons. This isn’t like banks went out and created new products and sold them on the market for a benefit to society. What they did is they went back to the casino and made gigantic bets that paid off. The problem of course is those bets were financed by the American taxpayer. Trillions in bailouts still remain outstanding. A few trillion sit on the books of the Fed. What have they taken for collateral? They don’t want to open up their books because what we will find will horrify the public. Toxic mortgages, questionable loans, and other securitized junk that was exchanged for U.S. Treasuries.
Is it any wonder why the dollar is being pummelled? We are slowly being robbed by Wall Street and the Federal Reserve. Who needs conspiracy theories or back room talks when they are doing it right in front of our eyes?
CIGA Udor
Dear CIGA Udor,
The inviting question is if the banks made these bets and won, where are all the losers? An entire industry cannot all go the same way.
The bets are not from the few to the many, but would have to be from the few to the few.
The inviting conclusion goes back to a relatively cashless financial industry recovery as a product of the capitulation of FASB to the Banksters, allowing them to sin freely again with impunity by marking up their crap paper and declaring that mark up a trading or inventory profit.
The TARP is being paid back so that the Banksters can pay themselves whatever they wish without some government Czar opining.
The replacement of TARP is a product of selling stock, floating other loans and selling assets. What kind of recovery is that? This action results is a zero sum, only shifting of the donors.
This is not an example of the rebuilding of a putrid system. Rather it is Pretend and Extend with bonuses coming more from the mark up of crap to real new business and great trading skills.
Regards,
Jim
Jim Sinclair’s Commentary
Get ready! As goes British taxes so goes US taxes in 2011.
Dear Jim,
What tax barbarians! Unbelievable, let’s just punish anyone who tries to work hard to get ahead so they make less than if they had been lazy and not exerted themselves…
“It will come as a huge shock to anybody with a company pension scheme that not only could they incur a personal tax liability on their company’s contributions but that any pay rise could actually leave them worse off. It’s a very painful position to be in.”
“Overall, a £10,000 pay rise has cost them £15,200 in tax (£5,200 in income tax and Nics, £5,000 tax on employers’ contributions and £5,000 in personal tax relief), an effective tax rate of 152%.
Those with generous final-salary schemes, linked to earnings and years of service, will be hit even harder, paying effective tax rates of up to 250%.”
They have all gone bonkers! This will only make it all worse (your formula is cemented in play now). People forget the awful 94% tax rates in 1945. Who will stick around in the UK if China beckons with no tax, lots of jobs and better pay?
CIGA BT
