From LaVern Isely
Monroe
To the editor,
Since Mr. Romney might be president and he's in private equity, we should understand what derivatives are. I hope the person that wins the presidency of the United States, Congress or governor of any state understand the difference between a hedge fund, a hedge fund manager and a real bank. Hedge funds, such as MF Global, who recently went bankrupt, have no restrictions. A hedge fund manager like Bernard Madoff is supposed to pay income tax at a 15 percent rate. Now, as for a real bank, they're supposed to pay income tax if they're making money, and some use the Las Vegas loophole. They're not supposed to use leverage to create money like hedge funds or futures traders do which they call securitization. They definitely should never use toxic derivatives which really have no value according to the IRS and that the government refuses to regulate because of corrupt lobbyists dealing in finance.
An honest bank that issues a loan to a customer should keep the loan local and not sell it to an out-of-state bank. The money they should use to finance more loans should come from depositors through Certificates of Deposit (CDs), and the rates should be high enough that the customer feels it's worthwhile keeping it in the particular bank institution. Counterfeit money is counterfeit money. Governments refuse to regulate it. They shouldn't even allow derivatives, unless the IRS can put an intrinsic value on them because they're not an asset such as with gold, silver, land, food, oil and other commodities.
Nowadays, the crooks are much, much more sophisticated. Years back, when I got interested in finance and they still had the S&Ls, before Michael Milken ripped them off through his ingenious idea of junk bonds, there was an author, William K. Black, whose book I read titled "The Best Way to Rob a Bank Is to Own One." It seems like that's all the G20 nations in world are trying to do nowadays by going in debt and the richest one percent expect us 99 percent to bail them out. That's why you've got all those picketers on Wall Street and around the world because the widening gap between the rich and the poor is getting ridiculously worrisome.
James Grant said on Maria Bartiromo's Wall Street Journal program that they're "creating money out of thin air."
Monroe
To the editor,
Since Mr. Romney might be president and he's in private equity, we should understand what derivatives are. I hope the person that wins the presidency of the United States, Congress or governor of any state understand the difference between a hedge fund, a hedge fund manager and a real bank. Hedge funds, such as MF Global, who recently went bankrupt, have no restrictions. A hedge fund manager like Bernard Madoff is supposed to pay income tax at a 15 percent rate. Now, as for a real bank, they're supposed to pay income tax if they're making money, and some use the Las Vegas loophole. They're not supposed to use leverage to create money like hedge funds or futures traders do which they call securitization. They definitely should never use toxic derivatives which really have no value according to the IRS and that the government refuses to regulate because of corrupt lobbyists dealing in finance.
An honest bank that issues a loan to a customer should keep the loan local and not sell it to an out-of-state bank. The money they should use to finance more loans should come from depositors through Certificates of Deposit (CDs), and the rates should be high enough that the customer feels it's worthwhile keeping it in the particular bank institution. Counterfeit money is counterfeit money. Governments refuse to regulate it. They shouldn't even allow derivatives, unless the IRS can put an intrinsic value on them because they're not an asset such as with gold, silver, land, food, oil and other commodities.
Nowadays, the crooks are much, much more sophisticated. Years back, when I got interested in finance and they still had the S&Ls, before Michael Milken ripped them off through his ingenious idea of junk bonds, there was an author, William K. Black, whose book I read titled "The Best Way to Rob a Bank Is to Own One." It seems like that's all the G20 nations in world are trying to do nowadays by going in debt and the richest one percent expect us 99 percent to bail them out. That's why you've got all those picketers on Wall Street and around the world because the widening gap between the rich and the poor is getting ridiculously worrisome.
James Grant said on Maria Bartiromo's Wall Street Journal program that they're "creating money out of thin air."
