So I've been looking into the risk boys at the Fed and I don't have really good vibes about all this. As suspected, they are good, smart guys with not a moment of practical experience in the business of banking meaning there expertise is purely academic. Do you get the feeling that Dustoff is a lot happier with academics and bureaucrats than he is with the rough and tumble guys? Sure looks like it to me which means that a couple of things are going to happen:
1. The sharks will sense blood in the water and move in for the kill and
2. Bye, bye Fed as we know it.
If you have been paying attention, there has been more heard from the Presidents of the regional Feds in the past six months than in the past six years. They sense it and are seriously into turf protection. The people in D.C. aren't bad people, just--I think--the wrong people for the time in which we live. Too bad
The Journal had a very scary leading article today regarding the pension liabilities of the State of California. Horrific. Nuts as well. If one starts as a fireman at age 20 one can retire at age 50 with a pension of 90%. I'll bet that works as it did in New York City when the salary upon which the pension is based is calculated on the last year or two--including overtime in New York City's case. For the municipal unions the time worked was assigned by supervisors and guess what? There was a general understanding that a certain percentage would be "kicked back" to insure A LOT of time on the job in the last year. California is doomed. I wonder what the pension liabilities of the State of Illinois look like. 8-5 the assets have already been stolen
Every pol in the world is now blaming the investment bankers for the plight of sovereign balance sheets. Thirty years ago it was the commercial bankers of the world. Who gets blamed next? Certainly not the Pols who broke the public trust. This is turning into a world-wide Tweed Ring.
Off to see the Illinois grandchildren tomorrow and selection Sunday is upon us. First Robin appeared today along with the Dafs pushing up. I think it's spring. I'm feeling better about life...then I read the papers. See ya
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