Don-n-ABQ

Time for the U.S. Economy to Reindustrialize

Who is "Mr. Armstrong"?


On Nov 15 10:32 AM Mrudula Shah wrote:

> A very good, appropriate and timely thought expressed by Mr. Armstrong,
> which with a bit more sophistication can be good enough to be published
> in magazines like Forbes and The Economist. This is what we need
> to do. Exactly how will be the next step to think and implement.

Cramer's Stop Trading! The Best Strategy on Earth (10/9/09)

If the Middle-Eastern SWFs buy up the top 10 American banks (or even 25%-40% of each), then the banks lend money, we spend the money, which means their return comes back to them in the form of oil consumption.

It is called "priming the pump" and it is a great idea (short term). The price of oil goes through the roof, the banks rally from the earnings they make from fees, SWFs make money off of the fees and then the oil. They get a double-barreled blast of windfall.

Of course, somewhere down the road, we still have to go to rehab. This is the same business model of the crack dealer giving away the first few bags to the customer for free. It only prolongs the inevitable of actually fixing the problem and getting help. That means less "toys" and more savings.

But, by then the markets rally for the next ten years and the SWFs and Cramer make an absolute ton of money.

Hey man, need a fix?

Bank of America: A Risky Bet That May Be Worth It - Barron's

More on BION BARNETT:

''It has never failed at any time to take care of the legitimate requirements of its customers, nor at any time failed to pay cash on demand to any and every depositor,'' said Bion Barnett in 1927, celebrating the bank's 50th anniversary.

He was 70 years old by then but still had another 31 years to go. In his 80s he shot his age in a round of golf, which to golfers is a major achievement.

At 90, he said: ''I have decided to establish a rule of the bank to the effect that no officer or employee who reaches the age of 89 need return to work after the noon lunch hour.''

He showed up for work until he was 93. He died in 1958 at the age of 101.

As one of the biggest and strongest banks in Florida in the 1930s, Bion Barnett's bank helped keep the state's banking system operating after other banks started failing during the Depression. Communities suddenly without banks came to Barnett asking for help.
----------------------...
Barker-Benfield, Simon
The Florida Times-Union
October 8, 1998


On Mar 09 12:17 AM Don-n-ABQ wrote:

> You think Jacqueline Doherty or Ken Lewis will loan me $350.00 so
> I can buy 100 shares?
>
> Amadeo Giannini and Bion Barnett are both rolling over in their graves.

Bank of America: A Risky Bet That May Be Worth It - Barron's

You think Jacqueline Doherty or Ken Lewis will loan me $350.00 so I can buy 100 shares?

Amadeo Giannini and Bion Barnett are both rolling over in their graves.

The Future of Citigroup and AIG

Maybe sports athletes who take steroids should get paid more than other players?

Maybe crack whores should be put in charge of the nearest Walgreen's or CVS?

Maybe Bernard Madoff should be put in charge of CitiGroup and Jeffrey Skilling AIG?

Get the point?

How can we keep giving money to someone who can't manage the money he already had?

With that logic all pyromaniacs should be given flamethrowers and be put in charge of the fire department and we should set up all homicidal psychotics with gun stores and make them sheriff.

When are we going to step back and value: CHARACTER?

Why don't we take the financial institutions like (or what is left):
AIG
Bear Stearns
CitiGroup
Countrywide Financial
Fannie Mae
Freddie Mac
Lehman Brothers
Merrill Lynch
Wachovia
Washington Mutual
etc.

And, take the worst portion (20%?, 30%?, 40%?) of what is left and nationalize that into 2009 Federal Assets Bank.

Then with the rest give it the bankers who have actually done a good job. Banks like:
1) United Ban of Alabama
2) First Financial (Indiana)
3) Citizens Holdings Co.
4) Arrow Financial
5) First of Long Island
6) Republic Bancorp
7) First Financial Bankshares
8) Glacier Bancorp
9) Financial Group
10) Bank of Hawaii Corp.

We give the good bankers the good deposits and good loans, and reward them for not buying into this derivative credit default swap leverage game.

Then, we take a page from China, and send the executives from the first list of banks (the bad ones) to prison and take away ALL (REPEAT ALL!) of their assets (where ever they may be, overseas, Cayman's, Switzerland, etc).

The 2009 Federal Assets Bank is run by a committee of the good bankers for a period of 10 years, in 2019, and if anything is left it is sold in an IPO and the proceeds go to pay for the bailout.

What is the difference between what Bernard Madoff did and what:
Angelo Mozilo
Joe Cassano
Dick Fuld
Frank Raines
Marion and Herb Sandler
Stan O'Neal
Lew Ranieri
Fred Goodwin
Sandy Weill
Jimmy Cayne
Kerry Killinger
Chuck Prince
Franklin Raines
etc., did?

I think what the latter group did may have actually been worse. I would have never invested with a Bernie Madoff, but I did make WaMu my largest investment.

When I first bought WaMu in 1992, Killinger was a genius. Expanding the thrift from a northwest regional into the nations largest. But, he obviously got lazy, sloppy, and greedy (as did I for not pulling my money out).

I trusted this man to be honest and above reproach with my money. Now, it is wiped out. One-fourth of my retirement funds.

So, it all goes back to CHARACTER.

Who is going to watch the watchers?

Let us say that President Obama does pass tighter regulations to watch the new CitiGroup and AIG.

But then one of the top executives at CitiGroup takes the person who is in charge of watching the bank to the Turks and Caicos Islands and Abu Dhabi.

And, a year later the watchdog resigns his post, with the government, and takes the new vice-president of Caribbean Operations position at CitiGroup.

The big problem I am having is I can't trust the top 30 executives of the top 30 banks (900). All of them seem to be corruptible these days.

Where is John Adams and Harry S. Truman? Where are the guys with honor?

I am afraid that we have not sunk low enough yet to bring out the integrity and virtue that we need going forward.

I would trust Warren Buffett with the job, but he already has a better one.

Until we as a society, nation, and as individuals, start placing a much higher premium on honor and character the dog will continue to chase it's tail.

If I wanted to invest in CitiGroup I would be the damn worthless stock myself!

I would NOT take my own money (what is left of it; or yours) and buy CitiGroup at $1.50 a share, why should the federal government do it for me?

The fox is in the hen house the and dog that is chasing it's tail (instead of chasing the fox) has fleas. And the fleas our the "former" Wall Street guys like Hank Paulson, Tim Geithner, Larry Summers, etc., etc. (The guys that leave Wall Street and move to government should be BANNED from going back later on and from communications with their old friends should be monitored.)