The spectacular nature of these deals with fund managers and banks and politicians and other power brokers and their wannabes continue to astound me. Not sure why. It seems that in the run up to this crisis boundaries were forgotten or torn down. Boundaries to so many fundamental values in human society. Those which are to make us different, separate us from the wild, from the hunter gatherer. The March 2009 lows should be a reminder of how being beaten by the market felt. The risk takers are back on full steam ahead. Technicians are currently saying the next leg down has deep potential, with many targets below the March lows.
In a close reading of Wall Street Journal Gregory Zuckerman’s book, “The Greatest Trade Ever”, an otherwise starry-eyed account of Paulson’s bets against the mortgage market, Fiderer discovered this nugget:
“Paulson and [partner Paolo Pellegrini] were eager to find ways to expand their wager against risky mortgages. Accumulating it in the market sometimes proved to be a slow process. So they made appointments with bankers at Bear Stearns, Deutsche Bank (NYSE:DB), Goldman Sachs (NYSE:GS), and other banks to ask if they would create CDOs that Paulson & Co. could essentially bet against.”Whether or not a wave down is underway or to be so, I am hopeful that the behaviour displayed in the last decade of decadence and disrespect to themselves and their fellow men/women is flushed. President Obama made an important statement Wednesday night, he referenced A Trust Deficit, and I would add a Spiritual Deficit. And without mentioning it, the financial deficit/debt. These are all sinks for energy, and not sources of energy. We need to collectively change the trend, alter the flow, and coalesce the energy of the people.
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