Cheng + Volcker = (inverted) Goldman Sachs? When profits on Marginal bonds go septic, what price profit? #finance #stocks #paulvolcker #chengsiwei #speculative #bonds

It seems the Central Bank of Barbados despite certain “Inverse Economics” the other day has its collective finger on the planetary financial pulse; two ‘soldout‘ {sic: both were open to public} performances from financial gurus respected everywhere imaginable…

Former Chairman of the United States Federal Reserve, former Chairman of the Economic Advisory Board under President Obama and Proponent of the "Volcker Rule"

Dep. Gov. of the CBB, Cleviston Haynes fielding audience questions for Mr Volcker to respond accordingly - the place was so full, an email had to be invented for the night, not if you listen to SOMASS-FREEDEM however...

The first draw was Paul Volcker, known to be an adviser for more than one administration of the USA on either side of their growing divide, recent focus in the Barbados Advocate‘s Business Monday and target for speculative affiliations by SOMASS-FREEDEM over at Barbados Underground.

Former Chairman of the United States Federal Reserve, former Chairman of the Economic Advisory Board under President Obama and Proponent of the "Volcker Rule"

"Buddy" Larrier asked a question of Mr Volcker so convoluted it even made Mark Adamson appear concise and terse?

The other fiscal magnet for Bajans to flock to the Grand Salle was Cheng Siwei, a former Parliamentarian for Beijing and noted Economist who seemed almost conceited at China’s level of savings yet apologetic for their not spending – he sees the way forward for the Middle Kingdom to start buying more and have transparency in their accounts, yet Human Rights is a concept which seems different in his view from what obtains in Britain, Europe and the USA – perhaps “openness” or glasnost on his terms rather than even Caribbean’s?

OH, East is East, and West is West, and never the twain shall meet,
Till Earth and Sky stand presently at God’s great Judgment Seat;
But there is neither East nor West, Border, nor Breed, nor Birth,
When two strong men stand face to face, tho’ they come from the ends of the earth! – Rudyard Kipling

Are Volcker and Cheng so poles apart? Both can be vague, yet this is what the U.S. Federal reserve expert had to say when posed with if America would ever adopt a form of Value Added Tax {CLICK ON FOLLOWING LINK FOR FULL AUDIO};-

The retired Chairman of the United States Federal Reserve indicated its one time both sides of both Senate and Congress would agree, although for differing reasons – Liberals will avoid VAT as they fear it will only increase and never decrease while Conservatives do not want to lose the current structure of taxation and replace it with a centralised method which they see as possibly affecting high-income earners…

Chinese Delegation's Luncheon Presentation 9/03/2012

Dr Worrell not only assisted Cheng Siwei in understanding the questions posed but would run interference if he thought interrogatives may hit too close to home like the one asked on Human Rights and a Free Market in current Beijing

Meanwhile, where Volcker and Cheng Siwei definitely have a convergence is investing in speculatory markets, both Asian and Western have seemed to reach an independent accord that this form of investment caused the current ripple in the global economy {CLICK ON FOLLOWING LINK FOR FULL AUDIO};-

“What we were seeing is a lack of discipline; we have borrowed and we have high deficits,” he maintained, while insisting that “prudent financial management seems to have gone through the window”.

So why do Chinese expansionist measures and prudential USA fiscal reform (if readily adopted) have a similarity to a man who engineered a spectacular resignation where part of the reasoning for departure cited was his former bosses comparing customers with popular children’s characters?

Greg Smith resigned as a Goldman Sachs executive director and head of the firm’s United States equity derivatives business in Europe, the Middle East and Africa.

The author of this article, Greg Smith, was a Goldman Sachs executive director and head of the firm’s United States equity derivatives business in Europe, the Middle East and Africa.

These are some of many harsh words from a top Goldman Sachs executive who quit in disgust by posting his quitting via the New York Times Op-Ed page only late last week;-

  • These days, the most common question I get from junior analysts about derivatives is, “How much money did we make off the client?” It bothers me every time I hear it, because it is a clear reflection of what they are observing from their leaders about the way they should behave. Now project 10 years into the future: You don’t have to be a rocket scientist to figure out that the junior analyst sitting quietly in the corner of the room hearing about “muppets,” “ripping eyeballs out” and “getting paid” doesn’t exactly turn into a model citizen.
  • Over the course of my career I have had the privilege of advising two of the largest hedge funds on the planet, five of the largest asset managers in the United States, and three of the most prominent sovereign wealth funds in the Middle East and Asia. My clients have a total asset base of more than a trillion dollars. I have always taken a lot of pride in advising my clients to do what I believe is right for them, even if it means less money for the firm. This view is becoming increasingly unpopular at Goldman Sachs. Another sign that it was time to leave.

Will there ever come a time in Barbados' history where if a Blogger or Journalist wants to see how much was spent on an Election Campaign or a Building Contract, there is an adequate and comprehensive Freedom of Information Act which allows for disclosure by not just UN standards but for Barbados to set the bar by raising its own expectations?

In essence, Greg Smith did not feel easy advising people to shift their funds where he was not sure they would raise for the client as opposed to the company, and even if both sides won, was someone else paying? Sounds like ethical finance theorems which should be posed at regular intervals in Barbados to avoid future Trade Confirmers or more CLICO’s along the line… But how Greg Smith, Paul Volcker and Cheng Siwei all connect is they reiterated what could have been avoided with Ken Lay and Enron – no investment of ventures which do not appear 100% concrete ROI {return on investment}.

East not only met West but shows where it can save itself, and now it only remains to get East & West to have a level playing field for the gray miasma that can be Human Rights…

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