Website review: Safe Haven | The Robert Rubin and B...
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•1 reviews since Nov 9, 2007
finance
•safehaven.com/article-8786.htm
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laodan discovered 6 months ago- The Robert Rubin and Ben Bernanke Death Embrace via 3QD, in SafeHaven by Charles Zentay
Rubin: Right, and the worst part about it is that other banks have tremendous amount of counterparty exposure to us. There are $45 trillion in Credit Default Swaps in the system right now. Our accounting isn't that good, so I can't even tell you how many trillion we have with other banks. But I do believe it's in the trillions. So if we start to go down, well, you know what happens. Bernanke: A total meltdown of the U.S. financial system. Rubin: Right! So you've got to help me out. Bernanke: Hmmmm. So how does it work? Rubin: Well, usually it works by the government claiming that there is no other option, that financial meltdown is the only outcome. You talk about the risk and how the government was forced to take this step in order to save the public, to protect the people. In return, I call my Democratic friends and tell them what a great job you are doing in the face of such troubling times, and I work behind the scenes to ensure that you will get re-nominated to be Fed Chairman. I also work my banking contacts to ensure that you get an extremely high-paying job once you're out of office. Bernanke: What are my other options? Rubin: Well, none really. The only other option is that we unwind Citi and sell it off in pieces. We might have a strong dollar, but we'll have quite a recession. Banks will stop lending. You think the housing market is bad now? Just imagine that scenario. As for me, I lose my job and Jaime Dimon gets the last laugh. He'll kick away Sanford Weill's life work and legacy. You know I think Dimon is a Republican, and I don't think they are going to win the next election. So you might want to think twice about going down that route. That might be the morally right thing to do. But it won't help you. The Robert Rubin and Ben Bernanke Death Embrace A fiction that is truer than the reality that is given us to see by the media. This article argues that this whole financial mess derives from the financial engineering myth that doesn't work in the real world.
- The Robert Rubin and Ben Bernanke Death Embrace via 3QD, in SafeHaven by Charles Zentay
