Archive Video - Jamie Dimon CEO of JPMorgan with Charlie Rose - July 2008
What Dimon doesn't mention is the $29 billion subsidy provided by the Federal Reserve now called Maiden Lane I. Without the taxpayer gift, the deal doesn't happen, and Bear Stearns creditors (bank bondholders) would have been forced to take a massive and deserved haircut.
But that's where Tim Geithner, Henry Paulson and Ben Bernanke stepped in with a boatload of cash from taxpayers. The end result, as Alan Grayson explained last week, is that we (via the Fed) now own Red Roof Inns, just one of many commercial real-estate miracles of excess clogging the books of Maiden Lane.
- "I don't think Bear Stearns could have survived Monday in any event, for any reason at all. I'm telling you they would have been bankrupt Monday morning."
- "Buying a house and buying a house on fire are two different things."
And the audience roars in idiotic approval because they were watching Dancing with the Stars every night that month and missed the Bear Stearns implosion.
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