happenstance9

Wells Fargo: Show Me the Money, Please

Jamie Dimon, d.b.a. JPMORGAN, was the first healthy bank CEO to cut his dividend. He was considered an American Hero by the media for doing so. John Stumpf (WFC) and Jeff Imelt (GE) belatedly followed suit and were considered to be enemies of the stock market for cutting their respective dividends. Last August when WFC increased its dividend, all of the financials got a boost in stock price. This year, WFC cuts its dividend and all of the financials got a bootstrap up from the TARP debacle low stock prices. So, the dividend cuts were intended to save the previously mentioned companies $5 billions each. In that respect, WFC's recent announcement of a $3 billions profit is a encoded message of a $2 billions deficit had the dividend not been cut.

AIG's Blackmail Note

Systemic risk to the ECONOMY? This situation is a systemic risk to the United States Constitution! AIG is acting in open defiance, indeed forthright rebellion, against both the executive and legislative branches of the federal government. This is not a fraud on the part of AIG. It is a seditious rebellion. Maybe the "outside lawyers" will figure out that if AIG and counsels break the constitutional authority of the federal government then the judicial branch will be powerless to enforce these seditious contracts. As well, maybe the congress will stand tall and forget about the economy debacle and concern themselves with the constutional debacle.

GE Cuts Dividend to Maintain AAA Rating

What can we expect next? I suppose Well's Fargo will be the next high profile company to cut its dividend. Sports advertising will be the next target to be cut. (Buick/Tiger Woods, Citigroup/Mets, Wachovia/Quail Hollow, etc) I reckon the Pelosicrats and Barneycrats won't be satisfied with extracting their populist pound-of-flesh until Budweiser euthanizes the Clydesdales and begins using stick ponies in the Budweiser commercials.

The Duplicitous Sheila Bair

The short sale of WaBooBoo to Jamie Dimon and attempted fire sale of Wachovia to Citi are completely contrary to the Sheila's seizure of IndyMac. We were led to believe that it could take up to two years for Sheila to sell off the remnants of IndyMac. Sheila's potential employers apparently not interested in IndyMac. The FDIC also was noted for seizing banks on Friday nights since these action were less disruptive to depositors and tne markets. So, the Thursday afternoon seizure of WaBooBoo (secret website,secret banks, secret bids) and Sunday evening fire sale of Wachovia clearly were the result of intimate personal collusion and not effective regulatory duties let alone effective government.
Forget trickle down economics benefiting Joe six pack, this is trickle down politics benefiting Sheila Chardonay and Henry Hennessy and some intimate friendsThese recent fire sale exploits could be compared to Mrs. O'Leary's cow's exploits on an ill-fated Chicago evening. Mrs. O'leary's cow had one opportunity to get-it-right. Trickle dowm immediately after knocking over the lantern. Sheila Chardonnay's, Henry Hennessy's, and Kegger Congress' exploits can be compared to is Mrs. O'Learys cow taking a trickle on the broadside of the barn after the barn was fully engulfed in flames and subsequently being given credit and praise for trying to save Chicago. I don't think Mrs. O'Leary's cow could have hit the broadside of the barn even with its best efforts (trickle down you know!). Likewise, I don't think the Congress, regulatory agencies, nor cabinet departments, even with their best efforts and focus, could hit "the broadside of a barn" even with the barn adequately lit by firelight. (Credit USN&WR editor Brian Kelly for Mrs. O"Leary's cow's exploits)