Friday, June 12, 2009
I Have Some Bad News For You
Two things actually.
1. If your TV looks like that <----beauty right there, it's not going to work starting tomorrow unless you get a cable box.
2. If your TV looks like that, that's also bad news.
This kind of story isn't being written very often. From Bloomberg. The populist drivel seems to be getting way more play.
"June 12 (Bloomberg) -- U.S. taxpayers have reaped a 7.5 percent return on the $45 billion used to rescue Citigroup Inc., more than three times as much as if the money had been invested in the Standard & Poor’s 500 Index.
The return since the government first purchased a stake in the bank on Oct. 28, which includes dividends, compares with 2.4 percent for the S&P 500 on that basis."
I know it's a silly comparison since the Treasury is not an equity investor, but the the fact that the government didn't "give" money to the banks still doesn't hit home with some people.
In retrospect, since managements got roughed up across the board and bonuses went to zero, the moral hazard bugaboo was most in play in the case of the bank bondholders, who should have borne some risk and could have been wiped out but instead got off scot free.
The House Holier Than Thou Committee did the usual job embarrassing BofA Chief Ken Lewis yesterday. I too believe that he should have known the extent of the Merrill losses sooner, but I don't want to go on TV and ask him about it.