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Posts Tagged ‘Hank Paulson’

Defla-inflation – the Answer to Europe’s Problems

July 19, 2010 10 comments

If the USA could ride on a dollar-float equal to US GDP, for the last 60 years (1950-2010), could EU be left standing, watching, inactive and hurting (as in envy).

The problem of stagnant economies! (Cartoonist - Chip Bok; published on 2005-06-05; source and courtesy - cartoonistgroup.com).

The problem of stagnant economies! (Cartoonist - Chip Bok; published on 2005-06-05; source and courtesy - cartoonistgroup.com).

Curse of the ‘Strong-Euro’

Euro-zone would not have gotten itself into such a twist but for chasing the ‘strong’ Euro chimera.

An over-valued Euro made imports cheaper, gave excess inflows, liquidity, and the average Europeans abroad, a false sense of prosperity.

The strong Euro also made way for stagnating, indebted, deficit-prone economies of Europe.

Behind the ‘Strong-Euro’

Of course, Europe needed to make a success of the Euro. If the USA could ride on a dollar-float equal to US GDP, for the last 60 years (1950-2010), could EU be left standing, watching, inactive and hurting (as in envy).

USA let the Euro-Ride continue for the last 7 years (2002-2009) knowing that this can only result in a over-priced, stagnant, option-less Europe. Makes me wonder if Goldman Sachs acted alone in arranging all those off-book loans to Greece?

Hank Paulson … have you been naughty, again?

This may look like Bleak House on 'Bleaker' Street! But the situation ain't so bad. (Cartoonist Bruce Tinsley; Mallard Fillmore series; published on 2010-04-15; source and courtesy - cartoonistgroup.com).

This may look like Bleak House on 'Bleaker' Street! But the situation ain't so bad. (Cartoonist Bruce Tinsley; Mallard Fillmore series; published on 2010-04-15; source and courtesy - cartoonistgroup.com).

A nervous Europe

Erosion of Western dominance makes Europe resort to underhand ideas, legalistic sleights of hand that stretch definitions and prolongs the war of attrition.

  1. With Indian and Chinese manufacturing on the roll a nervous Europe is stuck for answers.
  2. With Indian pharma and auto sectors challenging the world, Euro-powers are nervous and fidgety.
  3. With surging Chinese manufacturing, Europe has run out of answers.
  4. With an indifferent USAon one side and the economic expansion of Asia on the other side makes for one, very nervous Europe.

Luring Kenya, with an Uganda waiting in the wings, by the use of ‘incentives’ to create legal hurdles for pharma-imports is a demonstration of this strategy.

TRIPS recognises IPRs as territorial rights and IP is protected only in the jurisdiction where it is registered. However, Kenya’s recent Anti-Counterfeit Act even recognises IPRs protected in other countries . This would make generic goods imported into or transiting through Kenya illegal if a patent exists anywhere in the world. This has serious repercussions not only for Indian exports but also takes away right of Kenya to independently define patentability criteria based on its development requirements. This is also a loss for Kenya, which in initial stages of its development would be denied the opportunity of drawing innovation and encouraging economic growth within the country.

Many other African countries are being lured into the same trap. There were allegations that EU provided funds for a similar bill in Uganda. Such legislations would deny public access to generic drugs and make them dependent on monopoly of a few patent drug suppliers. Three AIDS victims had to move Kenya’s Constitutional Court against the Anti-Counterfeit Act for a stay on the grounds that it denied them access to generic anti-retroviral drugs and, thus, violated their Right to Life. (via Time to challenge plus-size IPRs-Comments & Analysis-Opinion-The Economic Times).

How will Europe get out of this pit?

How will Europe unwind this complex knot?

The way out for Europe will mean severe belt-tightening. Not an easy thing in easy times, belt-tightening is the bitter pill that Europe may need to swallow.

A mix of defla-inflation with Euro-devaluation will be needed to fix things for some time. Deflation in wages, property and stock prices, inflation in consumer prices combined with Euro devaluation below dollar parity may see Euro zone on the road to growth! Not an easy road!

Is it a wonder that you get to hear a stuck Europe, squealing!


SEC to sue Goldman Sachs

April 20, 2010 1 comment

The gentle art of suing Big Guns

SEC’s decision to sue Goldman Sachs, brings to an end, a long drama.

In August and September of 2008, 2ndlook was calling for investigations into the collapse of Bear Sterns, Lehman, et al. When the Great Recession was not real – and only a fear. While Preet Bharara was busy building a flimsy case against Rajarathnam? When Bharara should have been investigating Hank Paulson, the Former Treasury Secretary, under whose watch many bankruptcies happened. Conveniently in favour of JP Morgan and Goldman Sachs. Even now, this investigation,

To say that it comes at an awfully convenient time for President Barack Obama’s Democrats is a colossal understatement.

With mid-term elections just a few months off and the U.S. Congress set to debate a massive financial regulatory reform package — one that Wall Street lobbyists and their pals in the Senate have been fighting every step of the way — the suit offers tailor-made reformist ammo for Obama & Co.

Birds of feather

Khuzami tells us that Goldman Sachs is cared. Tell that to the birds!

Khuzami tells us that Goldman Sachs is cared. Tell that to the birds!

By sending a notice to Goldman Sachs, in July 2009, SEC gave enough time to Goldman Sachs to enable them to prepare adequately for an extended court-room battle. Businessweek  writes about three issues,

Robert Khuzami, shortly after becoming the Securities and Exchange Commission’s enforcement chief last year, told Congress the agency must be willing to fight big cases to show it poses a “credible threat.”

Does Khuzami think that SEC scares Goldman Sachs? With the kind of money power that Goldman Sachs has, it can manage a battle with SEC for an entire generation. What SEC’s action will do is scare the likes of the co-accused in the Rajarathnam case. Extremely small fry. Even Rajarathnam was  not scared of SEC. Minions – that is who Khuzami is trying to scare.

European regulators are following the SEC’s case. Britain’s Financial Services Authority said today it will start a formal probe of Goldman Sachs’s London unit. BaFin, Germany’s financial-services regulator, is requesting information from the SEC about the case.

Big Business loves regulatory overload. It kills competition!

Big Business loves regulatory overload. It kills competition!

Win over voters. Avoid charges of collusion. Shake the money tree. Gordon Brown has a tough election to win. In the middle of the Great Recession, the German Government needs to show ‘resolve.’ In the meantime, AIG has also decided to try a shakedown.

The SEC’s Republican commissioners, Kathleen Casey and Troy Paredes, opposed the lawsuit against Goldman Sachs, which was approved in a 3-2 vote, two people with knowledge of the matter said yesterday.

Nobody’s ‘tellin’ but everybody knows. Big business and Big Government. That is the axis on which ‘progressive’ economies of the world are being built – and depend on. Or become a large public-sector enterprise – like Europe has become. This is the regulation gambit.

Government’s impose regulation to eliminate the small players – who cannot bear the regulatory overload and compliance costs. More regulation helps the big players – and big players have the financial and bureaucratic muscle to manage excess regulation.

The trouble with Hank

Was Hank Paulson making it easier for his ex-employer Goldman to buy up competitors? Was he helping out JP Morgan with WaMu and Bear Stearns? It was well-known that JPMorgan Chief, Jamie Dimon had long drooled over WaMu. While a lot of stressed organizations were getting support, Hank Paulson allowed Lehman to go under! JPMorgan was being blamed for Lehman collapse.

US bank JPMorgan Chase stands accused of precipitating the collapse of American investment bank Lehman Brothers by freezing Lehman assets days before it filed for bankruptcy protection, the Sunday Times reported.

After 60 Days

Was Paulson looking at his own future, while deciding on the future of Bear Stearns, Lehman Brothers, WaMu? How 60 days later, when he would need a new job! Was the collapse of Lehman, a deal for a job with Goldman – or was it JP Moran Chase? While a lot of people were getting support, Paulson allowed Lehman to go under!

I wonder why?

Transparency International does not call this corruption. But then, that is par for the course!

Been there and done that

In a democracy, people have choice!

In a democracy, people have choice!

This is very similar to Joseph Kennedy’s shorting the market before The Great Depression. It has always been a source of wonder to me how could Joseph Kennedy, a bootlegger and a friend of the mafiosi become SEC Chairman? And after that, could the Great Depression not follow?

It was always 2ndlook’s suspicion that Hank Paulson’s behaviour in the Lehman collapse is similar to Bootlegger Kennedy’s behaviour. And this now coming out all in the open!!

The biggest bankruptcy in history might have been avoided if Wall Street had been prevented from practicing one of its darkest arts.

As Lehman Brothers Holdings Inc struggled to survive last year, as many as 32.8 million shares in the company were sold and not delivered to buyers on time as of September 11, according to data compiled by the Securities and Exchange Commission and Bloomberg. That was a more than 57-fold increase over the prior year’s peak of 567,518 failed trades on July 30.

The SEC has linked such so-called fails-to-deliver to naked short selling, a strategy that can be used to manipulate markets. A fail-to-deliver is a trade that doesn’t settle within three days.

“We had another word for this in Brooklyn,” said Harvey Pitt, a former SEC chairman. “The word was ‘fraud.’” (via Naked short sales hint fraud in bringing down Lehman).

Back then in 2008, first, the world was hit by Big Oil at US$150 per barrel. As though that  was not enough, came the Big Banks! After Big Oil and Big Banks, we will have the pleasure of getting the The Big Lie!

Goebbels is alive, well and kicking. All of us.

Nicolas Sarkozy ‘helped’ Roman Polanski get bail

November 28, 2009 Leave a comment
The Glitter Dome by Joseph Wambaugh
The Glitter Dome by Joseph Wambaugh

The director’s sister-in-law Mathilde Seigner hinted that the leader has been instrumental to the recent development.

“I wouldn’t go so far as to say that it is thanks to the President that Roman has been freed, but he has been super. The President has been very effective,” Times Online quoted her as telling Le Parisien newspaper.

Sarkozy had earlier expressed his views on the director being held on a US warrant for having unlawful sex with a 13-year-old girl in 1977. (via Nicolas Sarkozy ‘helped’ Roman Polanski get bail).

Joseph Wambaugh on Hollywood

For years now, I have been avid reader of Joseph Wambaugh – a policeman turned writer. His comedies, wrapped in (mostly) LA or (sometimes) New York milieu, are in the style of Raymond Chandler under halogen lamp. The darker areas get better light. The chrome glints more. Glamour quotient gets mixed with large doses of warmth and understanding. Unlike Chandler, Wambaugh’s is never judgmental – which make his characters very real.

I read Wambaugh’s Glitter Dome, and twenty years later I remember one of his interesting observations on Hollywood,

Parking, not pussy, is at a premium around these parts, they said.

Wambaugh captures the politics of Hollywood
Wambaugh captures the politics of Hollywood in The Glitter Dome By Joseph Wambaugh, page 46

Sarkozy and Polanski are both short ... I wonder ...Sex, Cinema and Fashion

Hollywood, Bollywood (a patronizing name by which Indian film industry calls itself), haute couture businesses have a rather blase attitude about sex. Hence, to hold Hollywood to ordinary behavioural norms, has a puritanical air about it. In the Polanski affaire, the alleged victim, Samantha Geimer, wants the case closed.

But anyway, coming to why this story gets me curious, is why did Anand Jon, a haute couture designer get such a harsh sentence. Unwilling /semi-willing /actively willing sex in Hollywood /Bollywood /haute couture businesses is what (I have been given to believe is) normal. I mean these days, stars /starlets ‘leak’ sex tapes on the internet.

And no one has ever been seriously prosecuted, convicted and sentenced – as Anand Jon has been!

Where is the balance

I am assuming that Anand Jon is guilty. Is it the first time that models have tried advancing their career by sleeping with designers? Has it not happened before? I wonder what is it that Anand Jon did, which brought down the entire American judicial establishment onto him like ton of bricks. The case of the Sri Lankan Rajarathnam has similar smell to it.

The US prosecuting authority, Preet Bharara, the U.S. Attorney for the Southern District of New York, alleges that the Galleon Fund made some US$20 million out of this insider trading. I am sure that Galleon Fund (more than US$5 billion in assets under management) spent more than US$20 million on tea, coffee, espresso, soda, Evian and paper napkins. Rajrathnam’s own net worth was estimated by “Forbes” to be US$ 1.3 billion.

Coconut Bharara - Brown outside, White insideIs there any sense, any balance to these cases. Is Preet Bharara, indulging in reverse ‘affirmative action’ by prosecuting Rajarathnam? Is Preet Bharara trying to prove that he is colour blind?

“If you’re a wealthy trader, you aren’t special,” Bloomberg quoted Manhattan U.S. Attorney Preet Bharara as saying at a press conference. “Knock on our door before we come knocking on yours.”

If you ask me, he should investigate Hank Paulson, the Former Treasury Secretary, under whose watch many bankruptcies happened conveniently in favour of JP Morgan and Goldman Sachs.

WaMu sues FDIC – Hank Paulson Fraud

March 23, 2009 2 comments

How Big Oil, Big Banks and Big Politicos triggered the Great Recession.

The real story!

The real story!

In a complaint filed with the U.S. District Court for the District of Columbia, the thrift’s former parent accused the FDIC of having on January 23 made a “cryptic disallowance” of its claims, prompting the lawsuit.

It also accused the FDIC of agreeing to an unreasonably low price in arranging the a US$1.9 billion sale of the banking business to JPMorgan on September 25, when regulators seized Washington Mutual and appointed the FDIC as receiver.

JPMorgan did not buy the parent holding company, which filed for Chapter 11 bankruptcy protection the following day.

In its complaint, Washington Mutual seeks to recover as much as US$6.5 billion of capital contributions it said it made to its banking unit from December 2007 through the seizure. (via Washington Mutual sues the FDIC for over US$13 billion – The China Post).

Fraud ... when people are in pain?

Fraud ... when people are in pain?

Fraud … when people are in pain …

This is very similar to Joseph Kennedy’s shorting the market before The Great Depression. It has always been a wonder to me how could Joseph Kennedy, a bootlegger and a friend of the mafiosi was earlier SEC Chairman?

Campaign contribution can open doors. It definitely opened Roosevelt’s doors for Kennedy. And after that did happen, would a Great Depression not follow?

First, the world was hit by Big Oil and as though that  was not enough, came the Big Banks!

Hank Paulson should be investigated

It was always 2ndlook’s suspicion that Hank Paulson’s behaviour in the Lehman collapse is similar to Bootlegger Kennedy’s behaviour. And this now coming out all in the open!! JPMorgan was blamed for Lehman collapse. This was reported widely including in The Times of India.

US bank JPMorgan Chase stands accused of precipitating the collapse of American investment bank Lehman Brothers by freezing Lehman assets days before it filed for bankruptcy protection, the Sunday Times reported.

First was Big Oil, then Big Banks! Now what ... (cartoon by Michael Ramirez; source and courtesy - cagle.com). Click for larger picture.

First was Big Oil, then Big Banks! Now what ... (cartoon by Michael Ramirez; source and courtesy - cagle.com). Click for larger picture.

After 60 Days

While deciding on Bear Stearns, Lehman Brothers, WaMu, was Paulson looking at his future – 60 days later, when he would need a new job!

Was the collapse of Lehman a deal for a job with Goldman – or was it JP Chase?

Naked short sales hint fraud in bringing down Lehman

The biggest bankruptcy in history might have been avoided if Wall Street had been prevented from practicing one of its darkest arts.

As Lehman Brothers Holdings Inc struggled to survive last year, as many as 32.8 million shares in the company were sold and not delivered to buyers on time as of September 11, according to data compiled by the Securities and Exchange Commission and Bloomberg. That was a more than 57-fold increase over the prior year’s peak of 567,518 failed trades on July 30.

The SEC has linked such so-called fails-to-deliver to naked short selling, a strategy that can be used to manipulate markets. A fail-to-deliver is a trade that doesn’t settle within three days.

“We had another word for this in Brooklyn,” said Harvey Pitt, a former SEC chairman. “The word was ‘fraud.’” (via Naked short sales hint fraud in bringing down Lehman).

This is very similar to Joseph Kennedy’s shorting the market before The Great Depression. It has always been a wonder to me how could Joseph Kennedy, a bootlegger and a friend of the mafiosi could become SEC Chairman? And after that did happen, would a Great Depression not follow?

It was always 2ndlook’s suspicion that Hank Paulson’s behaviour in the Lehman collapse is similar to Bootlegger Kennedy’s behaviour. And this now coming out all in the open!!

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