Thursday, July 05, 2012
Barclays -- I’ve Heard That Name
Just in case the headlines are making you wonder where you’ve heard the name “Barclays” before...
Moody’s, S&P take step to downgrading Barclays but Fitch holds its view intact for now
"Two leading credit rating agencies took steps Thursday toward downgrading Barclays in the wake of a trading scandal that’s seen three senior officials, including chief executive Bob Diamond, hand in their resignations."
...You might want to go back in time and read this article
Thrift Savings Plan's Stock Funds Take a Hit
"A key part of yesterday's board meeting involved a presentation by executives from Barclays Global Investors, which has managed the TSP's investment funds for the past two decades. Those funds are part of a securities lending program that Barclays operates and that produces income for the TSP.
The Barclays executives assured the thrift board that TSP assets are protected if Barclays encounters problems with borrowers who cannot live up to their contractual obligations or default on loaned securities."
I’m not a banker or a pension fund manager so I’m not going to claim any detailed knowledge of the subject. But the legend of Willie Sutton still rings true even if the story isn’t: Willie robbed banks “because that’s where the money is.” Money is no longer in the banks. It’s in retirement funds.
It’s really simple. The modern-day Willie Suttons work in banks and the “shadow banks”. Wall Street. Hedge Funds. Whatever you want to call them. They stole your money. They stole everybody’s money. And until we start putting them in jail, they’ll keep stealing it. The problem of getting the money back is simple. You tax the people that stole it. You sure as hell don’t let them leave it to their kids and create another generation of silver-spoon physchos.
You can vote for a “revolution” in November or you can wait for the real deal to happen. That’s the lesson of history. That’s the genius of America. I highly recommend you take advantage of the former. History says you won’t like the later. Vote or Revolution. The choice is yours.
July 5, 2012