Daily Archives: December 15, 2009

Lend More or I’ll….

By Pete the Banker: President Obama reiterated his call Monday for the nation’s banks to increase lending, saying that he was getting too many letters from small businesses unable to borrow money proclaiming,

“”America‘s banks received extraordinary assistance” from the government, Obama said at a press conference following a meeting with the heads of the largest banks.”Now that they’re back on their feet, we expect an extraordinary commitment from them to help rebuild our economy.””


“The president and his advisers have responded in recent days with a burst of heated rhetoric, arguing that the government rescued the banking industry and that banks now are failing to show proper gratitude. The amount of money on loan from banks fell by almost $600 billion, or 7.2 percent, from September 2008 to September 2009, according to the Federal Deposit Insurance Corp. Lending to businesses, excluding construction loans, fell 15 percent.”
Obama blames banks for not lending.  Being recipients of TARP funds, the banks are apparently supposed to be compliant to the President, subordinating their own interest to Administration policy imperatives, simply acting as conduits in passing the TARP funds along with their own funds to those preferred businesses and the public regardless of the bank’s own accountability to operate as a going concern, repay the Government TARP infusion, and honoring their obligations to shareholders, other creditors and customers.


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Hate Mail

Do you ever study anything but Fox junk?  Bush is responsible for 41% of the deficit due to Tarp and bail-outs of Franie and Freddie.
Only 18% of the deficit is due to Obama’s initiatives.  The rest is to cover programs already in progress.
Regarding healthcare:  What did your idiots do during Bush years.  NOTHING>  The party of NO is not it’s way to the party of no one.
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Sanders: Break Up Some Firms That Are Too Big to Fail

By Pete the Banker: The Congress and more specifically, Socialist Bernie Sanders of Vermont pushes Government restrictions aimed to break up Corporations before they become too big too fail. Given that this is hypocrisy since Sanders rushed to rescue both Fannie, Freddie at cost of Billions to taxpayers last year.  What is his real motivation?

Only one large corporation today existed in 1900.  The capitalist system works and absent outside intervention companies thrive and then fail, to be replaced by others (Joseph A. Schumpeter; “Creative Destruction”).  It is interesting that the history of large corporations is that many are spawned by big government.  During WWII corporations like GM and Dow Chemical saw their greatest growth as contractors to the Federal Government. 

During the past year, thanks largely due to the Federal Reserve, the Treasury, and Congress, three banks— JP Morgan, B of A, and Wells Fargo have similarly grown dramatically now accounting for nearly 1/3 rd of the industry deposits (2yrs ago 20%).

More recently, we have seen that first hand results of government intervention in the Bank of America takeover of Merrill Lynch, the purchase of Merrill being done at $29/share far in excess of the price at which it should have been consummated.  Ken Lewis completed the purchase despite having second thoughts about it due primarily to coercion from Paulson and perhaps Bernanke to finalize the deal to the detriment of B of A’s shareholders.  Ultimately, the decision cost Lewis his job.

JPMorgan, Goldman Sachs, and Morgan Stanley were among 9 banks that were persuaded in mid-October 2008 by then Treasury Secretary Henry Paulson to accept TARP funds of $125 billion of capital injections with avowed intention to help restore stability to the financial markets. The three at various times stated they did not need the funds.  So why were the funds advanced to them?  Seemingly reluctant initially, the government eventually allowed them to payback the TARP funds within a few months.  

Gore Impaled by His Own "PoleAxe" at Copenhagen Warmathon

See what happens when reporters actually DO their jobs? All they did was check a simple story! And Al Gore was confronted with another inconvenient truth: he was wrong. Note that this was an assertion in a WRITTEN SPEECH!


Mr Gore, speaking at the Copenhagen climate change summit, stated the latest research showed that the Arctic could be completely ice-free in five years.

In his speech, Mr Gore told the conference: “These figures are fresh. Some of the models suggest to Dr [Wieslav] Maslowski that there is a 75 per cent chance that the entire north polar ice cap, during the summer months, could be completely ice-free within five to seven years.”

And this is what the climatologist said whose “work” Gore cited:
However, the climatologist whose work Mr Gore was relying upon dropped the former Vice-President in the water with an icy blast.

“It’s unclear to me how this figure was arrived at,” Dr Maslowski said. “I would never try to estimate likelihood at anything as exact as this.”

 From the Financial Times of London

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