3 6 3

Remember the good ol days when banking was based on 3 6 3, borrow at three percent, lend at six and be on the golf course by three. (I stole this from transcript 435 Wall Street Rules along with most the rest of this content.)

Question: which bank made money did well during the recession? Goldman Sachs. Why, because the shafted their own clients and deluded congress. I hope you have read recent Security Exchange Committee (SEC) findings recently so you get this ~ loans to people who couldn’t possibly afford them and then bet again them paying the loans. Specifics: SEC suit settled last year was a cost of a half billion in mislead investors in a program labeled Abacus.  Then Goldman Sachs bets against the mortgage markets which gave them a $1.2 billion profit.

All of this continues to support my thesis that the ultra rich have bought the government and a long as the policies began during the Reagan administration (deregulation) continue the money gaps in this country will continue. Anyone recall when he deregulated banking at first the first thing that happened was a S and L (Savings and Loan)  crisis?

And the conservative mantra goes on, “We need less government,” As though they and not special interests are causing our economic woes. We ne need more government overseeing an out of control economy; if that boast the percentage of government workers from 8% to 10% of the working population and they were giving some clout in regulation, we, being the middle and lower classes, would benefit greatly. The fairy tales of the extreme right are just that, fairy tales, only without a moral, or perhaps with an immoral.

The book to read for a good overall picture of this is: The Big Short, by Michael Lewis.