If there’s one thing that upsets me, it’s greedy ass retired cops questioning their government for using the GSEs as a backdoor bailout for TBTF banks. WHO DO THEY THINK THEY ARE?!?! The gall. The arrogance. The greed.
Why would retired cops be so upset that their investments were wiped out to “assume and guarantee large amounts of toxic debt” to help Goldman Sachs, Morgan Stanley, et al escape the destruction they wrought via private label fraud and synthetic CDO amplifiers?
I mean it’s not like the GSEs experienced 3.7% losses as a % of their debt vs. 20.3% for private-label MBS. Oh wait, that’s accurate.
Oh and it’s not like Wall Street Financial Engineers put a $5 TRILLION or a 500% amplifier on that 20.3% private label loss rate via synthetic CDOs or something…oh wait, they did.
I mean, it’s not like Treasury just made up the $200 Billion dollars it claimed the GSEs needed or something…oh wait, they did.
Hey, Fog of War, right? It’s not like Treasury forced Loan Loss Reserve and Deferred Tax Asset accounting manipulations to backsolve for that $200B to cover their tracks post-takeover or anything…oh wait, they did.
Loan Loss Reserves = 5x higher
Deferred Tax Asset = $90 Billion
It’s not like Paulson and Geithner had a pattern of this or anything…oh wait, they did.
All this to say, the City of Austin Police Retirement system should just shut the fu&* up. They act like they spent their entire careers upholding the law or something.
The TBTF banks w/their 20% private label loss rate and 500% (5 TRILLION) synthetic CDO amplifiers (that created simultaneous runs on each other when none could post collateral, let’s not forget those pesky repo desks) deserve the mortgage market. They’ve earned it. Who cares if Treasury used the GSEs as an alternative form of TARP to help save the TBTF banks?
The “City of Austin Police Retirement System” sure is a funny name for a hedge fund.
NWA, take us out…