Another horrible example of politics by Obama endangering our economy. He is allowing the banks to repay TARP funds and just getting even bigger than the prior "too big to fail." We are going to pay for this big time in the next year or two. I had some Wells Fargo stock and with their huge sale of stock, $12.25Billion, (obtained just by printing more certificates) they diluted all outstanding shares.
Here is the quote from http://tinyurl.com/ybwzev7 a.. Are these banks going to need another bailout? Considering The WSJ reports the four-largest U.S. banks now control 56% of the financial sector's assets, up from 35% in 2000 -- meaning the "too big to fail" banks are even bigger now -- somebody will come to their rescue if and when trouble surfaces, Whalen predicts. "Either investors will face more dilution when new investors get invited to the party or you're going to see the government support them again." b.. If they're not really healthy, who is buying all the stock and debt being issued by these banks? The "really big" institutional investors are eager to buy the offerings because there are few banks big enough and liquid enough for them to invest in, Whalen says, taking another shot at Ben Bernanke. "When you print a lot of paper dollars and fund managers are looking to get returns on that paper money, you essentially drive investors into the least solvent, least financially stable large-caps." (Wells sold about $12.25 billion of shares on Tuesday. Citi priced $17 billion of equity and another $3.5 billion of convertible debt Wednesday evening; the shares were priced at a 20% discount to where the stock was trading on Monday and weak demand prompted the U.S. government to delay its planned sale of $5 billion shares of Citi stock, Reuters reports.) ----- Original Message ----- From: "Publius Maximus" <[email protected]> To: "ProFox Email List" <[email protected]> Sent: Wednesday, December 16, 2009 8:26 PM Subject: Re: [OT] Congratulations! Debt Limit Exceeded The whole lot needs to be replaced. I'm starting to feel like Bill Arnold with a fatalistic sense of urgency, to boot, which kinda disturbs me. ;-) - Publius . _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/33a82f163af148e7b356e4ed18028...@dual ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
