Category Archives: Wall St.
Hillary’s book tour got off to a poor start during an interview with Diane Sawyer. We learned that Bill and Hill came to the White House “with no money” and left “not only dead broke but in debt“. People used to call her Patches.
It wasn’t for lack of effort, though, or “dint of hard work” as Hillary put it.
The threadbare baggage the Clintons brought to Washington from Arkansas in 1993 included the Whitewater real estate scheme. They lost $40,000 on that one. According to prosecutors, dubious loans through a failed S&L didn’t profit them either. More hard work and nothing to show for it. Plucky Hillary did finally manage to shoo the wolf from the door by turning $1,000 into $100,000 on a cattle futures trade. She attributed her investing acumen to reading the Wall Street Journal.
All that hard work finally blossomed into a happy ending with $200,000 speaking fees, multi million dollar book advances, and a bankroll over $100,000,000.
As a candidate for the 2004 nomination Howard Dean said he led the Democratic wing of the Democratic Party. Poor Patches now leads the limousine liberal wing of the Democratic Party.
Only in America.
Janet Yellen’s Senate hearing for approval to succeed Ben Bernanke began yesterday.
Backdoor Wall Street Bailout
Andrew Huszar, a former bond buyer for the Fed, wrote an interesting apology in the WSJ this week for his role in “quantitative easing”.
He says that the Fed never bought a mortgage bond in its 100 year history until he was hired in 2009 to buy $1.25 trillion of the things! In a single year. According to Huszar Bernanke spun the scheme as a plan to help Main Street but it was really “the biggest backdoor Wall Street bailout of all time”.
Chairman Ben Bernanke made clear that the Fed’s central motivation was to “affect credit conditions for households and businesses”: to drive down the cost of credit so that more Americans hurting from the tanking economy could use it to weather the downturn.
QE may have been driving down the wholesale cost for banks to make loans, but Wall Street was pocketing most of the extra cash.
Bad news for the economy is good news for Wall Street these days.
Yesterday Bernanke announced it was too early to taper off on his greenback spinning wheel. He’ll continue to pump $85 billion per month into the sluggish economy through quantitative easing. The magic money is conjured up when the Fed buys Treasuries and mortgage backed securities.
The sorcerers on Wall Street were pleased and stocks hit record highs.