Wednesday, February 04, 2009


From The Comments Section "Of Coal Mines & Canaries"

Still Life Living, who wrote the original post, observed:
It is interesting how we Americans recently poured $140 billion into Citibank ($50 billion cash and the rest thru off-balance sheet Fed incentives, loans, and cash infusions), and the market cap today is only $19.35 billion!

God bless America. Where else could such a ruse be pulled off? Why didn't the US just buy all of the outstanding shares at market prices and go forward with a truth commission like investigation? Once we own the company, we own the history. Then we can prosecute and maybe seize assets and get our money back.

Halliburton has a market cap of $16.4 billion. I think the USA should buy it so we can own the history and start prosecutions.
Where did that 150 billion go? At this point, no one knows, but that's a shit-load of money, 7 or 8 times the total worth. Far cheaper to buy their ass, buy all their assets. And what are they building in there, between 10-K reporting deadlines? I don't know, but Tom Waits and I will tell you one thing: they're not building swing-sets for the children. It would be much cheaper to buy the truth than to keep paying off our captors.

51 comments:

Still Life Living said...

I am not telling what he is building in there here. You will have to go to my blog at 9PM tonight.

Still Life Living said...

"But, ladies and gentleman, I'll be straight to the point. Thanks for coming here today. And as we stand here today, it's an understatement to say the economy is in trouble and the need is urgent. Quite simply, we cannot wait. We cannot wait another two weeks, three weeks, four weeks. We cannot wait."

Joe Biden 2/5/09

Naj said...

Marc, a question for you:

Do you know the statistics of job losses in the MIC? If any?

Bee said...

Banks who came hat in hand to congress begging for TARP money or they would sink and civilization as we know it just couldn't exist without BofA and Citigroup, took that money and squirreled it away to cover future losses (there are still approx. 3 years worth of sub-prime and prime ARM loans getting ready to roll from interest only and see spikes in payments, and hence foreclosures). So, while what the Fed should have done was buy those assets at firesale prices, hold them until the values began to rebound, they didn't. They just gave the money away, no strings attached, just a "we hope you'll use this money to lend out and not just bolster your balance sheet." Which of course, the Banks didn't do.
If you want to know literally where the money went, well, noone will ever know, because like the original poster said, we don't own the history.
Where it went on books, though, was to cover "future losses".
It still boggles my mind that so many incredibly bad loan-making decisions were made by the big-box banks.

MarcLord said...

SLL,

yes, it's the end of the world as we know it (and I feel fine). Will check ur post out.

MarcLord said...

Naj,

in brief, no. But Obama has called for a 10% Pentagon budget cut, which induced immediate seizures and predictions of doom. Ironically, most people don't realize what percentage of the MIC production has been outsourced overseas--30-40%, with many key components manufactured by Singapore, Taiwan, China. Militarily, this is about as dumb as it gets.

Passing legislation specifying parts for weapons be made domestically would create hundreds of thousands of jobs, if not millions.

MarcLord said...

Bee,

man you've been clued in for good. and after waiting for the arrival of "cash for trash," they just announced it on Friday. Then there's the plan for the Federal Reserve to buy US Treasuries. What happens when Peter meets Paul?

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