Jim Cramer: Coronavirus Banker Bailouts “one of the greatest wealth transfers in history.”



Source: https://www.youtube.com/watch?v=15pFQxG9wko

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Can you believe that while all this was going on, the big tech corporations were censoring everybody on social media (even the President)..??





(FT) “If you think people were upset about bailing out banks where the CEOs were making $50m a year, how are they going to feel about bailing out private equity firms where the CEOs make $500m a year?” said another investor.” Read more
https://www.ft.com/content/c0b78bc9-0ea8-461c-a5a2-89067ca94ea4



(Wikipedia) Largest private equity firms by PE capital raised



“In 2019, Private Equity International ranked the largest private equity firms by how much capital they raised for private equity investment in the last five years”

Rank Firm Headquarters Five-year fundraising total (m)
1 The Blackstone Group United States New York City $82,851
2 The Carlyle Group United States Washington D.C. $63,802
3 Kohlberg Kravis Roberts & Co. United States New York City $47,977
4 CVC Capital Partners Luxembourg Luxembourg $47,413
5 Warburg Pincus United States New York City $36,557
6 Bain Capital United States Boston $35,554
7 EQT Partners Sweden Stockholm $30,054
8 Thoma Bravo United States Chicago $29,880
9 Apollo Global Management United States New York City $29,001
10 Neuberger Berman United States New York City $28,884
11 Hellman & Friedman United States San Francisco $26,900
12 TPG Capital United States Fort Worth $25,661
13 EnCap Investments United States Houston $21,097
14 Vista Equity Partners United States Austin $19,785
15 Apax Partners United Kingdom London $18,615
16 General Atlantic United States New York City $16,916
17 Clayton, Dubilier & Rice United States New York City $16,509
18 Permira United Kingdom London $16,394
19 Advent International United States Boston $16,026
20 Silver Lake Partners United States Menlo Park $15,000


Just for anybody who may be new to all this information: this is what is referred to as a “junk bond “.



As you can see, rates can run as high as 10% per annum, meaning on just $1 billion in principle, the note holder will realize $100 million in profits every single year.

Does it seem fair for a PE fund to have the right to collect $100 million in interest every single year without taking any risk?

Isn’t that the very definition of fascism..





Their activities are even being subsidized—if you can believe that. Yes, that’s right: according to Bank of England Economist Andrew Haldane, the implied banker bailout clause also has the effect of increasing Wall Street profits by as much as $300 billion per year..

Is it any wonder why the gap between the rich and the poor is nearly double that of every other westernized nation in the world…



Just to give you idea of how profitable it can be to have a central bank as your backstop when things go south; the last time the fed bailed out the financial system, it was estimated that the income earned by the 6 largest banks from all this cheap credit amounted to as much as 23% of their net income..



“The six biggest U.S. banks’ share of the estimated subsidy was $4.8 billion, or 23 percent of their combined net income during the time they were borrowing from the Fed. Citigroup would have taken in the most, with $1.8 billion.”

–Bloomberg



The Bloomberg piece referenced above also significantly underestimated the true cumulative value of those bailouts, which actually turned out to be a whopping $29 Trillion — four times higher than the $7 trillion figure referenced in that article..










Now fast forward to the today, and by printing trillions of dollars and catapulting the stock market into the sharpest 50 day bullrun in history in the middle of a nationwide lockdown, the monopoly men on Wall Street have yet again, reminiscent of the financial crisis of 2008, found a way to squeak through another of history’s great transfers of wealth..



What do you think this is going to do to the value of your life savings, or better yet, your cost of living?

Stock markets don’t just go on historic bullruns in the midst of the largest worldwide economic shutdown in human history while 22% of businesses have shuttered their operations (the majority of which will never reopen again) and half of all working age Americans are out of work..



As they say, for every action, there is an equal and opposite reaction, so what should we expect to see going forward?





Dilution
Dilution
Dilution



Dilution to the value of your retirement savings.

Dilution to the value of your assets.

Dilution to the value of your earnings potential (“cost of living “).

Again, the entire world economy was shutdown, and debt levels and equity valuations were already at record highs long before anybody had even heard the word coronavirus..

MICHAEL HUDSON, HARPER’S MAGAZINE / MAY 2006

Should we really be all that surprised by this outcome? Think about it for a second: there’s currently a broker (investment banker) and a trader (stock exchange) occupying the top two board positions at the New York Fed; the very people who stand to gain the most from unadulterated money printing and excessive stock market volatility.




Pictured below is Morgan Stanley’s “banking” segment.

As you can see, there’s not much in there for loans..



Just an FYI: the “Wealth Management” division is technically not even considered banking because they admit explicitly that it is used to facilitate margin loans for traders..

 ‘10-Q’ for 3/31/18



Margin loans for traders obviously do not facilitate real tangible business activity. By that point, the company has already completed the capital raising process (IPO) , so technically everything that occurs in between is just investors passing around their certificates, a task that provides little in terms of value to society.






Versus their $858 billion in total (“other”) assets.



.. “The Nasdaq” is obviously not a bank, and in fact, they operate in a completely different sector of the economy..


Pictured below are the Federal Reserve bank’s balance sheets divided by region. As you can see, the New York Fed dwarfs all the others, accounting for more than 55% of all CB bank holdings for the entire country.




To top all this off, you can’t even sue these people in a real court of law when them and their cronies decide to rip you off. You’re forced to go through their sock-puppet FINRA (that they own, fund, and control)…


Is it any wonder that we have all these practically worthless (and sometimes even outright bankrupt) small caps spiking 1000’s of percentage points in the midst of massive layoffs and record breaking bankruptcies while analysts abound continue to warn of something akin to an impending Great Depression 2.0..







Listed below are just a few of the more notable examples (most link to trending r/pennystocks mega-threads — one of the most popular social media platforms at the time for the micro cap sector).

IZEA

GNUS

HERTZ

DGLY

SINT

XSPA

UAVS

DECN

BIOC

PRTS

WKHS

VISL

FFHL

KTOV

EKSO

FRSX

BYFC

MARK

SRNE

CIDM

NAK

CJJD (archive)

CODX (archive)

ANTX (archive)

OTLK

IFRX

NVAX

SOLO

CETX

IBIO

BOXL

DFFN

PLUG

CLSK

DMPI

LMFA

MNKD

NAKD

PAYS

RARE

DLPN

CARV (archive)

Urban One (this one was insane)

TGTX

CHCI

APHA

CGC

HEXO

SAGE

OAS

PTON

CHAP

GWPH

NVCN

TTI

BYFC

Oil companies


Hype stock of the day at R/Pennystocks
archive



And now these crooks have the audacity to censor our speech online?? It’s most definitely not for our good, something that couldn’t be any more obvious following the legislation of these Coronavirus-Banker-Bailouts (that link is blocked on reddit by the way…).





America needs to finally get real with itself, stop pretending, and admit to what has been blatantly obvious to anyone who has actually been paying attention over these past 12 years, because quite frankly, this is getting to be an embarrassment..



-Massive gap between the rich and the poor: Check




-Censorship: Check






-Entrenched upper class with access to unlimited “capital”; practically immune from criminal prosecution, and entitled to exclusive bailouts when times get tough while everybody else is left to suffer: Check

-Oligopolies that dominate key areas of commerce: Check





Source: https://wallethub.com/edu/sa/bank-market-share-by-deposits/25587/




Just admit it America. Everybody can see it.

Enough with the act!













You Are No Longer a Capitalist Nation












FAIR USE
Copyright Disclaimer under section 107 of the Copyright Act 1976, allowance is made for fair use for purposes such as criticism, comment, news reporting, teaching, scholarship, education and research.
Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use. Read more


(Bloomberg) “So what do the numbers reveal about the last decade? Of the S&P 500’s 13.3% annual return since 2010, 2.3% came from dividends, 10.2% from earnings growth and 0.8% from the change in the market’s valuation, as measured by the 12-month trailing price-to-earnings ratio. In other words, the vast majority of the gains can be attributed to a spike in earnings rather than investors’ willingness to pay more for stocks. In fact, the decade’s earnings growth was the highest on record.” Read more
archive







Source: stocktwits.com














Dr. Carroll Quigley, Georgetown University

“In addition to these pragmatic goals, the powers of financial capitalism had another far reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent and private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations. Each central bank, in the hands of men like Montague Norman of the the Bank of England, Benjamin Strong of the New York Federal Reserve Bank, Charles Rist of the bank of France, and Hjalmar Schact of the Reichsbank, sought to dominate its government by its ability to control Treasure loans, to manipulate foreign exchanges, to influence to the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world. In each country the power of the central bank rested largely on its control of credit and money supply. In the world as a whole the power of the central bankers rested very largely on their control of loans and of gold flows”.

It must not be felt that these heads of the world’s chief central banks were themselves substantive powers in world finance. They were not. Rather, they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up and were perfectly capable of throwing them down —Read more
(Source)



FAIR USE
Copyright Disclaimer under section 107 of the Copyright Act 1976, allowance is made for fair use for purposes such as criticism, comment, news reporting, teaching, scholarship, education and research.
Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use. Read more

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