Steps to Wealth? The Super Kings of Leverage

Filed under: Finance
Posted May 6th 2009 1:40 PM by gspirer

Call it the greatest sleight of hand in human history.

Watch over here: the rich, the greedy, the outlandish big salaries, the credit swaps growing in value, the collateralized mortgage securities, the promises of transparency.

Meanwhile, the real rabbits in the hat, the cards up the sleeve, are the magicians who control the magical promises and magical piggy banks.  The Magicians are Super Leverage Kings: the Fed (Greenspan, Bernancke); Congress (Pelosi, Reid, Frank, Dodd); the leaders (Bush, Obama).

Here’s how you really leverage:

  1. Tout weapons of Mass Destruction.
  2. Avoid admitting that starting from Clinton the agenda was that more people should own houses even if they could not afford them, i.e., Fannie Mae and Freddie Mac policies. By the way, 30% of mortgages are now greater than the value of their homes.
  3. Or, vault (leverage) yourself off an impaired prior administration.
  4. Get elected with $600 million using the Internet, but call for fiscal responsibility and limits on election finance.
  5. Call for new regulation when there are enough regulations on the books - only needed to be enforced.
  6. Have the Fed keep interest rates at artificially low rates, the same strategy that created the bubble in the first place, and create refinancings and fees to benefit the Big Banks.
  7. Have the head of the Treasury (former head of Goldman Sachs) bail out AIG which bails out Goldman Sachs at 100 cents on the dollar.
  8. Borrow. Bail out. Borrow. Borrow Leverage. Leverage. Forget that Wall Street used 97% leverage. Use 100%.
  9. Use the Taxpayers money and mortgage their future (and their families and generations to come) to bail out and pump up companies that should be let to die in order to preserve jobs when many are let go. Leverage union support with this payback. Call secured creditors that want to get repaid “speculators”. Give the unions who helped create the problems controlling ownership.
  10. Call for bailouts for infrastructure when only 15% is really for roads and bridges, most is full of pure pork, and will not “stimulate” until 2010 and beyond, not immediately as represented.
  11. Create a false recovery: bailing out the too big to fail.
  12. Penalize small business. Let their credit be squeezed.
  13. Go after the so called Rich by defining them as making $250,000, when the real rich already have huge assets and are defined as accredited investors by the SEC - meaning, having a million dollars exclusive of their residence and an income exceeding $200,000 plus.
  14. Fail to point out that 49% of Americans will pay virtually no tax at all.
  15. Never point out clearly that Democrats controlled Congress for the last two years and is now out of control with a leftist agenda and unprecedented spending.
  16. Criticize Iraq (but not really withdraw), and now increase troops in Afghanistan. Same theme with Al Qaeda and extremists.

The Secret of Being a Super Leverage King - whether Republican or Democrat - is to promise the moon and let those tricked pay for it later in spades.

P.S. Bank of American needs $35 billion more - borrow, borrow leverage, leverage.

Go to http://www.askdestiny.com to learn how to build assets and money machines. AskDestiny ® has analyzed success fundamentals for over 25 years to give answers and solutions for making money building wealth and living the life you always wanted - what really works today and has worked throughout history.

You don’t have to send in the clowns. They are already here.

As I have said repeatedly, the bailouts should never have occurred.

  • Recessions call for a cleansing of too much debt and unfortunately bankruptcies.
  • The government is preventing the deleveraging process with more borrowing and inflation.
  • Inflation borrowing and overregulation will ultimately tax everyone.

The government should have - and still should - incentivize private capital to invest.

The AIG bonus thing is another show of hypocrisy.

Who is leading the charge for taxing bonuses Tim Geithner - the tax avoider who approved the AIG plan? Chris Dodd who’s on the take from AIG? The Chris Dodd who did not how the provision allowing the bonuses to pass got through. A day later he remembers that he wrote the provision.  Rangel - give me a break. Barney Frank - on-the-take-Barney.

Look who gets the bailouts - look where the votes come from and the money goes.

How about the triple play - Paulson to AIG to Goldman Sachs (I own shares in GS).

How about the government just rewrites the law and abrogates contracts.

How the government feeds their populist outrage instead of telling the populist they are getting fleeced by the same clowns leading the charge.

Hypocrisy reins. Vigilantism against capitalism and the “rich” (make more than $250,000 and you are rich?). Some that can’t make it on their own need a big corrupt politically motivated bully to do their bidding.

And do you believe Citigroup’s numbers?

Well, who can you believe?

Market forces are stronger than Keynesians, corrupt undependable politicians, government bureaucrats and those who want to change the law to fit their agenda.

The law is supposed to protect against mob rule and witch hunts.

The populist backlash will occur.

Then, we will send the hypocritical clowns home.

Go to http://www.askdestiny.com to learn how to build assets and money machines. AskDestiny ® has analyzed success fundamentals for over 25 years to give answers and solutions for making money building wealth and living the life you always wanted - what really works today and has worked throughout history.