YIPPEE! DUE TO UNQUANTIFIED, ASSERTED 'SYSTEMIC RISK', YOU NOW OWN SHARES IN FAILING BANKS
Instead of owning plain, old real-estate, by buying up defaulted mortgages and stemming the problem at its source, we're going to own financial institutions, all kinds of exotic securities that no one understands widely, and ... all the bank management that we've come do love, over these days.
I love my AIG. Those guys have got it going on!
I'm sure all these guys will work overtime to reduce "systemic risk" for all of us.
ORWELLIAN DOUBLE-SPEAK FROM BUSH ADMINISTRATION
It even lands on the front pages of the New York Times.
Savor this. Dividends don't count, because they are not ... paid out of earnings.
The goal is to inject massive liquidity into the banking system. The government will purchase perpetual preferred shares in all the largest U.S. banking companies. The shares will not be dilutive to current shareholders, a concern to banking chief executives, because perpetual preferred stock holders are paid a dividend, not a portion of earnings.
HUMOR IN UNIFORM
It it too soon to start calling Paulson's go-to guy (Kashkari), by his new nickname, "Cash-and-Carry"?
