Wednesday, July 20, 2016

The Problem With Socialism: 
Tom DiLorenzo Educates Socialist Millennials
Socialism has become fashionable again, especially among young people .. 29 minutes


Anonymous said...


July 18, 2016 Carlyle Capital Trial Underway

Carlyle Group co-founder Bill Conway testified in Guernsey in defense of the failed Carlyle Capital Corporation (CCC), a highly leveraged mortgage backed security investment. CCC liquidators brought a $1 billion suit against parent Carlyle Group. WSJ reported on Conway's responses under oath:

On CCC’s use of 30 times or more borrowed money: “It was highly leveraged but I didn’t think the risks were going to happen, the risks that led to the downfall of CCC, the systemic market collapse.”

On 2007’s credit crunch: “I certainly did not think it was something that was going to lead to the end of Lehman Brothers, the end of Bear Stearns, the end of Wachovia, the end of Merrill Lynch as companies.”

Conway admitted CCC was a canary in the coal mine of financial crisis. The WSJ piece also has a series of e-mails between Carlyle chiefs as CCC approached implosion. Creditors no longer trusted Carlyle to make good on its bets.

Corporate debt, much of it private equity sponsored, ballooned since the financial crisis. Just like CCC got overrun in 2007 private equity loans could be at risk.

Carlyle recently sold Brazilian lingerie maker Scalina for a huge discount in order to pay creditors something. The Carlyle Group is also down $25 billion in assets under management in the last year. Darkness looms as Carlyle reminds us of their shenanigans during the last financial crisis.

Anonymous said...

The problem with socialism is that it is not congruent with human nature.

One swings the lead. Monkey sees monkey does, Then there are three The third one figured out that he was carrying the other two and so might as well join them. Get it ?

Anonymous said...

Notes From Underground: AUGUST 30 ,2002 … A Revisit To The SOAPBOX

LETTERS TO THE EDITOR – Profit centres too big to fail.
30 August 2002
Financial Times
(c) 2002 The Financial Times Limited. All rights reserved

Sir, John Plender (“How banks got in a mix”, August 21) correctly identifies the systemic dangers that accompanied the passage of the Graham-Leach-Bliley act. The repeal of Glass-Steagall has pushed the US banking system to the brink of “moral hazard”. The conglomeration of all financial services under one roof has entangled banks in numerous ethical conflicts. Additionally, Graham-Leach-Bliley has made several institutions so large that the Fed cannot allow them to fail.

A single institution’s deep involvement in every facet of financial dealings does not create greater synergy but greater risk. These large, private profit centres know they are too big to collapse. This realisation adds great uncertainty to the entire financial landscape.

Rewarding private profits while socialising the risk is a pathway to disaster.

Glass-Steagall should never have been repealed without a bank forfeiting its right to Federal Deposit Insurance Corp insurance.