Under the convoluted deal agreed earlier this year, MatlinPatterson has come to own 80pc of the shares while the US government has ended up with under 10pc. Mr Patterson said the US Treasury is out of its depth and seems to be trying to put off drastic action by pretending that the banking system is still viable.
“It’s a sham. The banks are insolvent. The US government is trying to sedate the public because they are down to the last $100bn (£66bn) of the $700bn TARP funds. They think they’re doing this for the greater good of society,” he said, speaking at the Qatar Global Investment Forum.
Mr Patterson said it would be better for the US to bite the bullet as Britain has done, accepting that crippled lenders must be nationalised. “At least the British are not hiding the bail-out,” he said.
MatlinPatterson said private equity and hedge funds were deluding themselves in hoping to go back to business as usual after the trauma of the last 18 months.
“This is not a normal recession and there will be no V-shaped recovery. The crisis has destroyed leveraged companies. We’re going to see a catastrophic increase in the number of LBO’s (leveraged buyouts) going into default because they’re knee-deep in debt and no solution exists since they can’t refinance,” he said.
LINK
http://zerohedge.blogspot.com/2009/05/mark-patterson-its-sham-banks-are.html
Deb, the LSM, WSJ, Fox; etc', are now shilling for 0zero & Co. The info whodat posted in 101 is very much the heart of the matter as to what is happening...this recent financial collapse is a global enigma.
The economy is not recovering and will not for years regardless of what 0zero, Congress, state and local leaders say or do.
Basically it is a credit -illegal immigration bubble Ponzi scheme that popped.
Do some simple math and look at goobermint bloodsucking of the GDP now and for the near future (10 yrs +). The economy can't grow when goobermint sucks the life out of it.....do not forget too the sheer number of baby boomers set to retire with a bankrupt MEdicare and Social Security system on the close horizon.
Think what you want, but, Greenspan NWO economics don't work.......this crisis was planned and the world now refuses to buy any more US debt until common sense comes around in DC.
Deb, if I am correct, you are in CA...if the economy is recovering, then why is CA going broke and what did the voters tell Arnie and the blueslature about sucking more life from the economy?
All this crisis stuff was set into place to bring about the NWO and the first step is bring the US, Canada and Mexico into the next phase with South America as NAFTA and CAFTA are in place now.
The next steps to come in our 'economic recovery' are higher food prices, serious devaluation of the dollar, higher taxes, higher energy costs, loss of liberties, and more government control.....the US banking and auto industry snafus are point in case.....bought a loaf of bread lately?