Posted on 10/18/2009 7:23:51 AM PDT by TigerLikesRooster
Bailout Helps Fuel a New Era of Wall Street Wealth
By GRAHAM BOWLEY
Even as the economy continues to struggle, much of Wall Street is minting money — and looking forward again to hefty bonuses.
Many Americans wonder how this can possibly be. How can some banks be prospering so soon after a financial collapse, even as legions of people worry about losing their jobs and their homes?
It may come as a surprise that one of the most powerful forces driving the resurgence on Wall Street is not the banks but Washington. Many of the steps that policy makers took last year to stabilize the financial system — reducing interest rates to near zero, bolstering big banks with taxpayer money, guaranteeing billions of dollars of financial institutions’ debts — helped set the stage for this new era of Wall Street wealth.
Titans like Goldman Sachs and JPMorgan Chase are making fortunes in hot areas like trading stocks and bonds, rather than in the ho-hum business of lending people money. They also are profiting by taking risks that weaker rivals are unable or unwilling to shoulder — a benefit of less competition after the failure of some investment firms last year.
So even as big banks fight efforts in Congress to subject their industry to greater regulation — and to impose some restrictions on executive pay — Wall Street has Washington to thank in part for its latest bonanza.
(Excerpt) Read more at nytimes.com ...
Ping!
Barry picking winners...
Have they paid all the bail out money back?
...”Many Americans wonder how this can possibly be.”
...it’s because Wall Street can move with lightning speed when there’s a fast buck to be made....not to worry however, all those big bonuses will be spent...I expect that real estate agents in the Hamptons are licking their chops right now....and they’re not the only ones...Goldman Sacks is going to give $1 billion to charity...there’s not a non-profit in the country that wouldn’t like a slice of that pie.
“Bailout Helps Fuel a New Era of Wall Street Wealth”
So - the candidate that said he’s take from the rich and give to the poor took money from us all and gave it to the rich (of Wall Street).
Bush started this crap before he left and just for that ought to have been impeached and imprisoned,as should every congressman and senator who voted to rob the people!
Hamptons? Good. Central location for all of them. Easier to find when the time comes.
Bush? No, no, no...it’s all Obama and the Democrats. Jeez, stick with the script.
LOL, the VAST MAJORITY of bailout money will NEVER be paid back.
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