Goldman/Sachs? AIG?
“Someone” paid 7% for overnight money on the Fed Trading system last night (that “someone” was a bank, by the way.) This will be claimed to be “ordinary” end of quarter distortions for closing the books. Don’t believe it for a second. Let’s put this in plain language: The discount window is open for any bank that has good collateral at less than 1/10th of that interest rate. Therefore there is absolutely no reason for any institution to go into the Fed Funds market for overnight money at 7% unless they have no good collateral to post against it and...
I posted days ago that Savage had warned of Goldman-Sachs years ago.
It was only a matter of time that he'd get around to this article. Mr. Taibbi said in an interview on Imus that Goldman-Sachs has much closer ties to the Democratic Party than the Republicans -- and it's been that way for a long, long time.
Oh.. make sure this gets added to The List. Rolling Stone is a leftist magazine.