Christopher Whalen Economy Interview

“You’ve got to understand America has been held hostage by a criminal gang from Wall Street who have bought their way into politics and have been directing our financial services policy in this country for many years. Their end is near because the harsh drop in aggregate demand and economic activity in the US this next 12 or 18 months is going to be so nasty that it’s going to consume many of these people in terms of their careers...

There are analysts out there saying that US banks are cheap and I think that’s crazy. I think that we’re in a period now of still people not ready for capitulation. They still think that there’s going to be a bounce or that whatever means are being thrown at the financials are going to help provide the economy, but we’ve taken so much financing out of this economy over the last 12 months, it’s going to take a long time to replace that. I mean it’s trillions of dollars worth of available financing, so it’s got to bring activity down. There’s just no other way for it to go and you see what the fed’s doing. They’re buying assets directly. They’re offering cut rate financing to people who have GSE Paper for example which is trading almost two points over treasury’s now. So there’s still a lot of dysfunction in the markets and that’s not going to change any time soon, so I definitely wouldn’t be buying bank stocks to hold right now because I think a lot of them could go to zero. The people who will really benefit from this are the ones who have cash and who will be ready to buy these assets on the other side of a resolution, a receivership. That’s where you’re going to see people making a killing.”

- Christopher Whalen, http://www.businessspectator.com.au/bs.nsf/Article/
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Hmmm, and just who might be “the ones who have cash” and in a position to “make a killing?”
Could it be, the usual suspects, the Wealthy Elite? You’d better believe it...