Design Community and the Economy
Trends & Events
Based on some positive response from my last posting regarding the economy and some indications of further interest on the topic, I will be randomly posting tidbits that I hope you all find useful. If not, please just ignore and scroll down for other great posts on modern design.
It is off topic for this blog a bit…but in the end, we are all part
of a community and network and I think it is our job to collaborate to
find solutions, rather than just watching helplessly from the
Today's highlight (via zerohedge)
The list below highlights the firms that are on the hook to the FDIC
in the form of implicit government-backed guarantees. The top five financial
companies consist of CNBC's parent company (not for long) General
Electric at $88 billion, Citi at $64.6 billion, Bank of America at
$44.5 billion, JPM at $40 billion, and Morgan Stanley at $25 billion.
Goldman is just out of the top five at the 6th position,
with current outstanding TLGP borrowings at $21.3 billion – nearly a
dollar for dollar match with what is expected to be the firm's end of
year bonus accrual.
It is only fair to propose to (CEO) Mr.
Blankfein that instead of paying $20 billion in bonuses, the firm uses
the bonus accrual to immediately repay every single last cent of its
TLGP borrowings. If the firm wishes to approach the private (non-taxpayer subsidized)
market subsequently, and reissue the full amount refunded, it may of
course do so. Since the firm has repeatedly stated that it is not
indebted to the US taxpayer any more, it would be very hypocritical if
the firm proceeds to pay $20 billion in bonuses while it is still
receiving the implicit interest rate benefits courtesy of having over
$20 billion in debt on its balance sheet funded at virtually risk-free
P.S. What is General Electric doing on this list anyway?!?