John Paulson is at it again. He's the guy that no one knew until he got the brilliant idea of getting Goldman Sachs to construct a rigged trade for him in the subprime market. Remember that? He went from nobody to billionaire overnight as a result of this fraud. (And let's face it, that's the way most of Wall Street operates.)
With that "success" under his belt he got lots of new clients and billions in new funds to manage so what did he do with the money? He turned around and ploughed a big chunk of that dough into gold because he was afraid of hyperinflation because of QE and other Fed monetary operations.
Hahahaha. Idiot.
Not surprisingly, he got spanked pretty hard by the markets and by his own dumb as shit ignorance. (Probably was reading Peter Schiff, but I digress.)
Since then he's had a spotty record, proving, like most of these hedge fund honchos, they're more lucky or connected than smart.
So now we find out that he is setting his parasitic sights on Puerto Rico. That poor (literally and figuratively) commonwealth of the U.S. is deeply in debt--loaded up by, you guessed it, Wall Street. This was without a doubt debt that they would never be able to repay, but that's the scam they use every time.
They're just employing their tried and tested model, people. Load the patsies up on debt that they can never repay, then move in have them declare bankruptcy or impose severe austerity, sell off assets that have been paid for 50 times over by the citizens' taxes, take those assets, charge for their use, steal pensions, fire people, close schools and other public facilities, take over agricultural, mining and physical plant, etc.
John Paulson bought some distressed bonds. Of course, being not too bright, these were bad investments to begin with, but guys like Paulson are too stupid or, they don't care because they will get their political hacks and other cronies to make sure that WE the PEOPLE pay them back for their losses every time. That means, fire teachers, close schools, take pensions, cut spending and social programs, etc.
Obama has ruled out a bailout. (What else is new? He's in Wall Street's pocket, what do you expect?)
Puerto Rico will be decimated. The next Greece. Meanwhile Paulson is building a luxury resort on the island for his billionaire friends, probably with tax breaks from the Puerto Rican government: tax breaks the island can't afford.
Hedge fund idiocy. State sanctioned theft. Massive hypocrisy. All rolled up in one.
3 comments:
Actually, Paulson reads Jim Grant (Grant's) - Grant is very erudite but nearly as clueless as Schiff. I'm convinced Paulson bought into the gold thing through Grant. For many years now, Grant has laid out the bullish case for gold (and worse, gold miners)-"money printing, higher inflation, fiat currencies, etc". All persuasive, thoughtful, extremely well written - and, of course, totally wrong.
Shows you it doesn't matter how "smart" you are if you have the wrong model of how the world works in the first place.
Yes, you are correct about Grant. Totally clueless dufus who wears a bow tie.
Annual subscription for Grant's Interest Rate Observer (inflation, buy gold, hyperinflation, buy more gold, zooperinflation...) is a mere $1,175 per year!
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