Risk Rap

Rapping About a World at Risk

Bollywood Blockbuster: Wach & Wells

What may be a surprise to Citi’s CEO Vikram Pandit, his new bride Wach has left the nest and is now snuggled safely in the loving arms of its free market hero the west coast banking giant Wells. Apparently Citi’s arranged marriage with Wach was never consummated and looks like it’s heading for an annulment.

This one’s got all the drama of a Big Bollywood blockbuster. The young and troubled Wach is forced by her desperate father FedSec to submit to a loveless arranged marriage to Citi. FedSec has offered a worthless and mysterious dowry it calls EESA whose origins, authenticity and value is highly questionable.

Citi is one of the last vestiges of the crumbling rule of a decrepit Credit Markit Raj. The New York based Citi whose Brahmin’s family lineage is long past its prime is now desperate for the favors of FedSec’s EESA dowry. Citi believes that EESA can prop up the Credit Markit Raj and prolong its position of power and privilege.

Wells the fine looking paramour from California is rumored to have slain gigantic sub-prime mortgage monsters spawned by the evil excesses of Credit Markit Raj. Wells has recovered nicely from its battles and purportedly has a quality balance sheet and size that is preferred by Wach. Apparently size does matter and Wach may have found the true love with Wells it will never have with Citi.

Wells issued $20B in new securities as an example of it’s free market might and demonstration of love for Wach. Wach’s self-esteem has suffered throughout this entire drama. Wach was troubled by the public perception of her intrinsic worth. This past Monday when FedSec announced the arranged marriage to Citi, the marketplace said her value was the equivalent of $.75 per share. But Wells value and sense of self worth rose with Wells attention. As of this morning Well’s affection has raised Wach’s value to over $6.00 per share.

Wells capture of Wach’s affection may threaten FedSec’s mastery and attempted control of the Credit Markit Raj with the offering of the EESA dowry. Ultimately the riches promised by the EESA dowry may not materialize. A governing group of petite demigods called SENCONS may confiscate the dowry and abscond back to their ivory tower hideout.

Lawsuits and high highfalutin philosophizing by the SENCONS about an activist FedSec and letting free markets prevail assures that theater goers will enjoy many sequels of the Wach & Wells story of true love and capital market freedom. Stay tuned.

You tube music video: Bollywood Mix

Risk: EESA

October 4, 2008 Posted by | banking, EESA, SEC, soundtrack, TARP, Treasury | , , , , , , , | Leave a comment

The Bazooka Shot Heard Round the World

Hank Paulson finally got off his best shot.

But will it stick?

He’s been hunkering down in some fox hole all summer as the economic storm was raging through the global banking and capital markets system. Keeping his head low and his powder dry. Every once and awhile he would lift his head to survey the wreckage in the credit markets. He would enjoy the Beijing Olympics and offer prayers to the Gods of Commerce in the hope that his tax rebate program would provide the stimulus to kick start an economy droning to a halt.

When pressed to comment on the deteriorating balance sheets and financial conditions of his GSE problem children Fannie and Freddie, Paulson with all the sternness of a father committed to the practice of tough love would say, “I have a bazooka in my bag of tricks and if I have too I’ll use it.” Well Paulson fired his bazooka this weekend and it blew Fannie and Freddie into the protective conservancy of the Federal Government. Tough love indeed.

Though the action will wipe out current equity holders of the GSE’s the overall equity markets are responding favorably. This is probably a good time to sell.

Sovereign Wealth Funds, Central Bankers and large institutional holders of debt securities and bonds welcome the action and are signaling that with the Fed’s interventionist policy protecting any downside risk will once again begin to invest in US banks to shore up solvency and maintain liquidity in credit markets.

Investment bankers are lining up lunches with bank CEO’s and private equity firms to stoke the M&A fires and perform a vital national service of rationalizing the US banking system.

Lastly the nationalization of Fannie and Freddie will create lots of grain for the political gristmill for the presidential election.

TBTF, socialism, activist Feds, Wall Street vs. Main Street, big business vs. the little guy are all of the political platitudes and cliches that will be bandied about. Senator Jim Bunning from Tennessee called Bernanke a socialist after the bailout of Bear Stearns. Bunning will be calling the Treasury Department the Polit Bureau West after this move.

This is state capitalism. The United States is moving ever so closer to the economic model of China.

Song: The International

Risk: credit markets, liquidity, housing market, recession

September 8, 2008 Posted by | banking, credit crisis, Paulson, soundtrack, Treasury | , , , , , , , | Leave a comment

The Night of Decree

As-Salaam-Alaikum

“Verily! We have sent the Qur’an down in the Night of Decree. And what will make you know what the Night of Decree is? The Night of Decree is better than a thousand months. Therein descend the angels and the Rooh by Allah’s Permission with all Decrees, Peace! Until the appearance of dawn.” Quran [97:1-5]

We extend our prayers and best wishes to our Muslim Brothers and Sisters for a Ramadan blessed with peace, meaning and growth.

Alaikum As Salaam

Music Video: Call To Prayer

Risk: intolerance, faith



September 2, 2008 Posted by | community, faith, holiday, Muslim, Quran, seasons, soundtrack | , | Leave a comment

Israel 60 Years of Swords and Ploughshares

Israel is marking its 60th anniversary as a country today. Established by the UN Mandate for the

Partition of Palestine in 1947, Israel has been embroiled in a constant state of conflict with Palestinian Arabs and the neighboring Arab and Persian nation states since its inception. The founding of Israel was seen as one of the better fruits borne from the trauma of World War II. Part blessing, part curse Israel’s establishment in Palestine is small consolation for the nightmare of the Jewish Holocaust and desire to exorcise the stain of Nazism from the collective soul of modern civilization.Unfortunately, Nazism as a political expression of a modern civilized state is a telling oxymoron that continues to play itself out in today’s world as the hope and promise of tolerance and the uncertainty of secular democracies battle the intolerance of fundamentalism and theocratic certainty. Israel’s founding provided hope that the pedagogy of the oppressed would not be lost on hardened hearts of civilized nations. Israel is living evidence that world powers could be trusted to rectify and eradicate problems through decisive action. Some might say a modern day metaphor of Solomon’s wisdom. Israel’s founding was a moral hope of the global community and evidence that out of horror and hate something good, just and enduring could be borne. But history and the geopolitical realities of scarcity, the complex web of political interests and the resourcefulness of the power elites to protect their privileges continues to conspire against a right and just course of action to follow a roadmap to peace in Palestine.

More of Solomon’s wisdom is called for today. Solomon’s judgment precluded the use of the sword. Today we cannot distinguish plaintiffs from defendants. Both sides are victimized by their own intractability. The sword is the only way. The blessed baby is bleeding to death.

We pray that Israelis and Palestinians will beat their spears into pruning hooks to mend and stitch the shroud of permanent and lasting peace.

Shalom

You Tube Video: Theme from Exodus

Risk: Political, War, Peace, Religion, Poverty, Death, Life

May 8, 2008 Posted by | Bible, military, Palestine, politics, soundtrack, war | , , | Leave a comment