Tuesday, March 03, 2009

Who owns you?

I think it's pretty easy to tell who owns you. The people who have loaned you money. Banks are in an asset grab. They are looking to strengthen their collateral position as fast as they can, trying to jump lien positions if possible. Banks do not care about you. They care about making money. When you are making money, they are happy. When you are losing money, they want to get their money back.

So I can tell you that the equity holders in this country are going to be fucked. The bond holders of many companies will become the future equity holders of all companies simply because they are the most senior position of repayment when shit hits the fan. I still think JPMorgan will come out on top of this mess.

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