Welcome to the first post of this blog!
I was hoping to post something really intelligent, perhaps set a precedent for ensuing posts; however, that invasive species, the Vampire Squid, caused my concentration to stray. So, with tempered indignation I have chosen to remind people about why the large investment banks are 'fondly' known as vampire squids. A recent article in the Washington blog - see HERE - offers substantial justification for the derogatory term. For banks with assets in excess of 10 billion dollars (Too Big To Fail in other words) credit availability has declined from $87 billion in December 2007 to $18.8 billion as of September 2010.
This is probably the inevitable consequence of the big banks attempting to re-capitalise, reducing their debts and improving their balance sheets in response to tremendous political pressure. But, whilst the TBTF banks continue to report massive profits and justify bonuses of audacious proportions, the smaller banks are continuing to lend to businesses and have increased their lending - 45% of banks with assets below $1 billion increased their lending in 2009. The community banks are playing a major role in supporting small businesses - see HERE.
We will be paying for the consequences of the TBTF banks' bail-out for decades. If they wish to award generous bonuses, despite the desperate economic plight we are in the midst of, then I say that 50% of that kitty should be given back to society. Such a grand sum would rival what the community banks currently loan to small businesses.
Vampire Squid - an undead creature that survives by sucking the life out of lowly citizens caught up between its slimy, stinging, globe-encompassing tentacles.
If you are offended in any way by the 'vampire squid' moniker, Goldman Sachs needs your help with its advertising campaign to make these creatures more endearing - see HERE.
Congratulations dude!
ReplyDeleteI like what you've done with the place, The tabs are good and the colour is nice.
I wish you every success in your endevour.
TBTB not TBTF.
Great job dude!
I attended a focus group in london last year (unwittingly on my part) for investment banking. I soon discovered it was for GS and Jp Morgan who wanted to rebrand themselves. During the 2 hours of this travesty, I sat there giving my honest opinions on this ludicrous campaign. I was the only member of the 25 strong panel (various people from all walks of life) who elicited total outrage for both companies. At the end , they asked each of us for how both GS & JPM could change my mind about their profiles. My response? "Mass suicide for all the bankers."
ReplyDeleteNicely set-up blog, RichGB. Your status as "King of the Links" is assured!
ReplyDelete" Clearly, the modern world would not function without banks and other financial institutions, but what we don't need is a Financial Class that has the power to sway whole governments, manipulate markets and threaten sovereign solvency. "
That's as balanced and succinct a description of the position as i've come across!
@24K
ReplyDeleteGlad you like it. I'm not much of an artist and frequently make shocking decisions regarding the decor.
@teri
Clearly public disdain at J.P. Morgan and Goldman Sachs has not affected their profitability, so why try to re-brand? Perhaps their motives are political and they are worried that they will lose influence with government representatives due to a possible backlash from the electorate.
No, that is too hard to swallow.
@Jim M.
Thank you for your kind comments. I hope that my future postings will hit the right mark, which is a point somewhere between half-hearted propaganda and angry tirade.
Good work Rich,
ReplyDeleteLooking forward to the mass of data I'm sure you're going to be throwing our way.
The ideas that are generated and discussed on Golem's blog and soon here are slowly finding their way into the world of the mainstream commentators. The more voices like yours and David's that emerge, the quicker that process becomes.
“Don't worry about people stealing your ideas. If your ideas are any good, you'll have to ram them down people's throats.”
Howard Aiken
I don't know why you're bashing Goldmans and JPM - they're both banks that did not require bailing out because they managed risk properly. Surely a good thing, no?
ReplyDeleteBashing Goldmans and JPM because they're evil. Goldman got bailed out through AIG. They didn't manage risk properly, they insider traded. Definately not a good thing.
ReplyDeleteRobolink, where the **** are you? We miss you bro :(
Hope your ok dude. We're all a bit worried.
Yo 24K!
ReplyDeleteSorry for the long absence. Diversions in to financial shenanigans took its toll on my technical world - my day job. So I decided to have a break for a while and go walkabout in a landscape of new topics that took my fancy.
Having had a brief look around the place, I notice the roof is still on fire and the banks claim 'we don't need no water'.
Plenty to comment on still, so I'll be posting soon.
Dude!
ReplyDeleteI only cried a couple of times, it was the howling the misses couldn't stand!
Your alive, that's all that matters. Silver $47
very good!
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