Thursday, February 4, 2010
Wall Street vs Washington--Who blinks first?
The Government wanted a "pound of flesh" for throwing another $20 billion to BAC to help them complete its merger of Merrill:
Now Wall Street is threatening the world, that it will collapse because of the PIIGS in Europe; or ostensibly because of proposed new taxes on bonuses.
Last week, Wall Street said it was going to implode if Bernanke didn't get re-elected.
And every banker, who now knows he won't get bailed out again, has every prop desk, (of which, of course, makes up just a minuscle portion of their profits) hit every bid with every click, in their organization, because the vaunted carry trade is now finally causing some damage, and every other banker, doesn't trust any other counterparty on any of their derivative transactions, that no-one would unwind.
Which causes the Wall Street bears to start their strutting again. As they hope for the implosion of the world again.
Back then, the threats from the bear were real. Now Wall Street pocket is on the verge of being picked, so they want to run it in the ground.
Well, hit it some more then. Let's see what you got.
Let's see the whites of your eyes!
Posted by Palmoni at 8:29 PM