Posts Tagged ‘Goldman Sachs’

We print your money

The Treasury Department released a rough outline of how the government plans to manage the $700 billion recovery plan yesterday, the New York Times reports. Among some of structure provisions is a timetable to have things ready in six weeks. They also formally announced that Neel Kashkari, 35, a former executive at Goldman Sachs who is an assistant secretary for international economics, will be in charge of the newly created Office of Financial Stability. Click on through to the other side…


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$700 billion + $85 billion + $200 billion = the amount of money the federal government has launched into the nation’s financial system over the last two weeks. The Treasury and the Federal Reserve are playing Monopoly, buying up all the real-estate it can: $29 billion worth of Bear Sterns (so Goldman Sachs could buy the bank for fractions of pennies on the dollar), some $200 billion for mortgage giants Fannie Mae and Feddie Mac, $85 billion for American International Group (AIG), and as of Saturday – $700 billion for whoever else needs some allowance money for the next few weeks. And as if that weren’t enough, some argue there is over a trillion dollars of bad debt mucking up the financial system – so the government has raised its debt ceiling from $10.6 trillion to $11.3 trillion.

So much for the numbers; it’s good to have a nice baseline – a clear understanding of just how many gold $500 bills you’ll need as the banker in this game. And make no mistake, as taxpayers, we are all the bankers in this game of Monopoly, we just happen to be playing against other bankers who’ve run out of money. Now, usually when someone runs out of money in the Parker Brothers’ game, they curse and run off or fetch some collateral from Grandma. But this is no game – this is real and Lehman Brother’s just lost their building on Boardwalk, in Midtown Manhattan, to British investment firm, Barclays. (more…)

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The fate of the world will be decided in less than seven weeks – McCain/Palin or Obama/Biden – the fat is in the fire, it would seem. Past and Prologue is slowly coming back to life, so be on the lookout for increasingly frequent, random updates concerning all things Election 2008, end-of-year government procurement, and some special comment on the apparent callapse of capitalism (or maybe just the callapse of Lehman Brothers, Goldman Sachs, Freddie Mac and Fannie Mae, et al.)

The wheels are set in motion – check back on Monday, September 22 for updates galore!

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