Bolt everything down – The Robbing Hoods have a new Trick!

It’s true Folks; they will move in any day now to part you with your money once more.

 

Last year they were all broke; in fact they had lost all their money and yours too.  So they asked the Government for a bailout and the “It’s the Money Stupid” Government gave them millions of your hard-earned food money.  What did they do?  They promptly took it all and paid it to themselves as Executive bonuses.

 

Now they have to find a new scheme and I must confess it is brilliant.  It is obvious that the Government won’t bail out another badly managed corporation that is already bankrupt.

 

So?  Miracles were called for and they jumped for it.  Out of the depths and despair they have now created profits out of nothing.  Some names are mentioned and I see CitiGroup, Morgan Sachs and a few others.

 

“The crisis is over, yeah yeah yeah, the crisis is over, and we have made a nice profit, yeah yeah yeah.”  Watch for that catchphrase!

 

Now this is where you have to be careful and think.  Think about yourself firstly.  I mean if you were broke last year and you used your last dimes to go to the market and bought all the all non-perishables for one tenth of the price and you kept it a while until people needed it you would be sitting pretty on a real nice profit if you sold all that stuff at five times last years price.  The buyer would be happy because you are giving him a good deal and you would have five hundred bucks for every hundred that you put in.  I would say that it would be quite natural if you now pay yourself an “executive bonus” of one hundred dollars and keep what you have over to make another deal.

 

The signs to look for are worthless bank shares that once traded at, say, three hundred bucks before it fell to ten bucks or less by late 2008 when the truth about packaged bonds, derivatives and all the other junk came out.  They will now say yeah, but the new profits have increased that share value to thirty bucks and it is going up.  You can now buy into the bank at forty or fifty bucks a share, they will tell you, and be a rich man before Obama’s first term expires.

 

Folks, that’s a lie.  The crisis is not over; the profits they now show are paper; those shares aren’t worth three bucks.  If you put your forty or fifty bucks per share in now, they will skim almost everything you put in off towards new executive bonuses and leave you with a share that isn’t worth one lousy dime.

 

Read my previous post:

 

https://ikejakson.wordpress.com/2009/04/01/they-have-to-go-under-if-we-are-to-save-the-world/

 

Always remember Folks; the art of Finance is passing your money from hand to hand until it finally disappears.

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One Response to “Bolt everything down – The Robbing Hoods have a new Trick!”

  1. On Bulls and Bears « Ike Jakson’s Blog Says:

    […] https://ikejakson.wordpress.com/2009/04/22/bolt-everything-down-%e2%80%93-the-robbing-hoods-have-a-ne… […]

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