Catherine -- excellent post. Loved the Nationsbank bit - 5% yield on $110 Billion is, of course, $5.5 billion profit for NO RISK whatsoever. Now that's what I call a scam. David > Fabulous post, Linda. > > You know, it used to amaze me at HUD. HUD had say $20-30 billion of subsidy, > and was putting out $50-100 billion of mortgage insurance credit, doing > workouts and various things on that defaulted credit, and doing all sorts of > things in regulatory stuff. > > All the big private profits and stock market plays was in the mortgage > insurance and regulatory area....but no one could ever see it..it was this > magical stuff that only bankers understood. I will never forget when I first > went to Washington, an endless stream of Congressional staff and OMB staff > and HUD staff would feed me this complete yah-yah on why we could not do > stuff that we for the taxpayers because of all this financial mumbo-jumbo > that we bankers use that no one understood. I must have used the > expression..."That's ridiculous, of course you can do this or that, you just > have to......" Lee Williams has this great song about Jesus is a waymaker. > Boy did I feel like a waymaker...all those years of finance suddenly > culminating in helping people see that taxpayers and communities were one > group and there was an endless series of win-wins. > > But it taught me that we don't know where most of the money is or how it > works, particularly how it works by place. How does all this mumbo jumbo > come down plop and infect or infuse the little ecosystem that I and my > family swim around it. I think that is what we are all figuring out how to > do. > > For example, I have read so many descriptions of the Federal Reserve/banking > system that did not resonate. I do not think these guys are making a fortune > charging interest on our currency. I think they are making a fortune in > using the currency and the credit to understand how all the money works. Fed > profits get paid into Treasury, but the data and knowledge is used to make > sure the banking system can arbitrage the federal credit like crazy for > rigged profits, but then manipulate the lending so that the taxpayers pay > for the folks in the circle to control all the equity on highly leveraged > basis. > > Bid rigging and insider trading. The bankers are using the banking system > and the data that comes from doing that to manipulate and rig the finance > system and equity ownership. > > Meantime, we think because the Fed's interest earnings are coming back to > the Treasury we are getting something. I say, let's let them keep the > interest and we control all the data and they can not see it or have access. > > It is what Negroponte said. In a digital age, data about money is worth more > than money. > > One little story as illustration that I have told before, but will tell > again. In the early 1990's the head of commercial banking at Nationsbank > complained to me that the Mayor of DC was out of place for criticizing > Nationsbank for not making small business loans in the district. He pointed > out that small business loans were not profitable for Nationsbank, they > could do better with their money elsewhere. The implication was that she was > out of order and out of place interfering with the private sector. I pointed > out that Greenspan was "pumping" short term money so the banks were able to > access short term deposits and money at very low prices using the federal > credit (that means guaranteed by the taxpayers)as well as using the federal > credit to soak up huge amounts of retail deposits from all of us citizens > around the country. In the meantime, Nationsbank had $110BB invested in what > appeared to be medium and long term Treasury bonds, for an automatic profit > of 5% above cost...(know as the spread). OK, so what that meant was that > Nationsbank got to use our credit to suck up all our money and then reinvest > it in bonds in which we guaranteed the payment plus interest and while they > got huge profits because of Greenspan pumping away to flow the trouble banks > out......the same people who guaranteed all the risk and provided all the > money, were not good enough credits to have their businesses funded...... > > Now you know why corporations have a low cost of capital and you can't get > funded starting a business.....your money is to busy in big pools which > consider you and me to be not good investments.. > > A week later I read that Nationsbank announced a new multibillion initiative > with the Mayor to do mortgages and small business loans in the > District.....what a chuckle I got. That meant NationsBank bought another > year or so getting 5% pure profit simply trading our bonds with our credit > and guarantees....a pure money machine. It reminds me of a study we did at > Dillon Read in the late 1980's. We discovered that if we had filled the > trading floor chairs with monkeys and just run the average balance during > the period, we would have made more money..... > > If you want to see an example of this today, go look at the same game on the > balance sheet of the banks and Freddie, Fannie and Sallie Mae......these are > all "federal credit arbitrages" > > That is why I was so astounded in Miami to see the complete absence of money > laundering enforcement in federal credit. What a scam..... > > > > -----Original Message----- > > From: Linda Minor [mailto:[EMAIL PROTECTED]] > > Sent: Tuesday, April 18, 2000 8:08 PM > > To: [EMAIL PROTECTED] > > Subject: Re: [CIA-DRUGS] Re: Amnesty Int > > > > > > Does anyone wonder why institutional investors donated heavily to GWB's > > campaigns for Texas governor--when he gets to decide who invests > > the huge UT > > endowment? Texas isn't alone in the amount of money these venture > > capitalists want to get their hands on. See article below. The > > question to > > ask is how the investors are appointed at the other universities. > > Privately > > chartered universities provide for the method of selecting successors as > > trustees or regents retire. > > > > http://www.nacubo.org/website/press/021199.html > > >>College and University Endowments Ran with The Bulls > > Institutions Hold More Than $178 Billion: > > NACUBO RELEASES RESULTS OF ENDOWMENT STUDY > > Washington, DC, February 11, 1999 -------- Fiscal year 1998 proved to be > > another successful year for college and university endowments due to > > investments made in a bull stock market. A recent study found > > that colleges > > and universities hold more than $178 billion in endowment assets. > > > > This and other useful information can be found in the annual NACUBO > > Endowment Study (NES), which surveys over 700 colleges and > > universities. The > > figures reported in the 1998 NES are for fiscal year ending June 30, 1998 > > and do not reflect recent volatility in the stock market. .... > > Endowments are stocks, cash, and real estate that colleges and > > universities > > receive as gifts. Earnings from these investment pools are essential to > > higher education institutions because they generate funds for operating > > expenses and financial aid. > > > > The 10 participating institutions with the highest endowment fund > > assets as > > of June 30, 1998, are listed below, with comparison totals for fiscal year > > 1997. > > > > > > Institution Endowment Funds '98 Endowment Funds '97 > > 1) Harvard University $13,019,736,000 $10,919,670,000 > > 2) University of Texas System $ 7,647,309,000 $ 6,709,945,000 > > 3) Yale University $ 6,624,449,000 $ 5,742,000,000 > > 4) Princeton University $ 5,582,800,000 $ 4,940,900,000 > > 5) Emory University $ 5,104,801,000 $ 4,273,543,000 > > 6) Stanford University* $ 4,559,066,000 $ 4,473,825,000 > > 7) University of California $ 3,787,884,000 $ 3,133,252,000 > > 8) Massachusetts Institute of Technology $ 3,678,127,000 $ 3,045,756,000 > > 9) The Texas A&M University System and Foundations $ 3,531,517,000 $ > > 2,951,463,000 > > 10) Washington University $ 3,445,743,000 $ 2,798,221,000 > > * = reports August 31, 1998 > > > > Colleges and universities did not perform as well as Standard & Poor's 500 > > Stock Index, which had a 30.2 percent return rate, nor the Wilshire 5000 > > with a return rate of 28.9 percent. However, the institutions surveyed > > continued to outperform the Lehman Brothers Bond Index which registered a > > 10.5 percent rate of return. The Consumer Price Index for the year was 1.7 > > percent. > > > > The NES contains tables, charts, and graphs that clearly illustrate > > essential data on all aspects of endowment management. > > Information presented > > includes endowment size, rankings, historical investment > > performance, asset > > allocation, spending policies, management expenses, and manager selection > > and evaluation. ...... > > > > > > > > -----Original Message----- > > From: Bob <[EMAIL PROTECTED]> > > Date: Tuesday, April 18, 2000 4:02 AM > > Subject: [CIA-DRUGS] Re: Amnesty Int > > > > > > >Roger Bunn wrote: > > > > > >> <snip> I know the parties involved, including Michael Williams > > who talked > > to > > >> me 2 days ago from Switz. I know the importance of this particular case > > of > > >> Pan Am 103 people[Les C] .. Also others such as > > Michael[Williams]... And > > I > > >> consider it important to us all, to discover > > >> what Amnesty thinks of this. > > >> > > >> Rr > > > > > >Thanks, Roger, you're a pro. > > > > > >On CSPAN today there was live and repeat broadcast > > >of Mobe for Global Justice, the DC IMF/WB protest > > >umbrella org, and the speakers who would have been > > >outside at the stage on the ellipse were only on CSPAN > > >Monday because of rain. This is the only transparent > > >coverage in real time. Afterward there will be > > >documentary on Freedom of Speech TV, a fairly > > >obscure channel on digital satellite which is a > > >real thinking person's media source and carries > > >a full plate of WTO/IMF/WB type issues and > > >Seattle WTO documentary. > > > > > >GWU student Tanya Margolis said a few words > > >to prove GWU is 100% biased against the protest, > > >then the last was best. It turns out that GWU owns > > >the land between the White House and GWU that both > > >the IMF and World Bank buildings are built on! Beyond > > >being a really cute proof of GWU bias, and beyond the > > >irony, I'm sure there is a parallel to Texas higher ed > > >foundations being the biggest contributors to Bush & Son, > > >Inc, and Harvard endowment being so protective of the > > >corrupt setup for HUD loan and property sales > > >that they would be very violent and dirty in > > >defending their turf. That makes three higher > > >ed endowments that are blood-money holding > > >companies. We suspect they might even be involved > > >in drug smuggling ;-) and private prison investments > > >at the same time. > > > > > >-Bob > > > > > > > > >------------------------------------------------------------------------ > > >Get paid for the stuff you know! > > >Get answers for the stuff you don't. And get $10 to spend on the site! > > >http://click.egroups.com/1/2200/3/_/475667/_/956048548/ > > >------------------------------------------------------------------------ > > > > > > > > > > > > ------------------------------------------------------------------------ > > Get paid for the stuff you know! > > Get answers for the stuff you don't. And get $10 to spend on the site! > > http://click.egroups.com/1/2200/3/_/475667/_/956102538/ > > ------------------------------------------------------------------------ > > > > > > > > > ------------------------------------------------------------------------ > Avoid the lines and visit avis.com for quick and easy online > reservations. Enjoy a compact car nationwide for only $29 a day! > Click here for more details. > http://click.egroups.com/1/3011/3/_/475667/_/956113200/ > ------------------------------------------------------------------------ > > > ------------------------------------------------------------------------ Avoid the lines and visit avis.com for quick and easy online reservations. Enjoy a compact car nationwide for only $29 a day! Click here for more details. http://click.egroups.com/1/3011/3/_/475667/_/956157877/ ------------------------------------------------------------------------
