Teresa Vollenweider | Chicago Reader

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Re: “Rahm's latest Wall Street bond deal is a bad deal for the city

I've now learned what the other side of the coin looks like--the borrower's side. What Ben Joravsky doesn't talk about is the investors' side of the coin. The big banks via their investment bankers (salesmen in fancy shoes) and brokers masquerading as financial adviso(e)rs (salesmen with slightly less fancy shoes than investment bankers) are going to sell that debt to their muppet clients--pension funds, 401(k) plans, high net worth clients, mom and pops--basically anybody who doesn't understand the modus operandi of the financial disservices industry. That's about 98% of us. The banks will sprinkle it with some derivatives so that they can get the ratings' agencies to stamp it A, AA or AAA. And, of course, it'll be called a muni-bond, so most muppets will think that it is safe. That's what the con artist adviso(e)rs will tell their clients. "It's safe. It's a muni-bond stamped AA." The muppet being conned to think that they have a relationship of loyalty, care, confidence and trust with their so-called financial adviso(e)r (when in reality it is an arm's length relationship) will agree with the advice that he/she has been provided. And voila, the bank has unloaded its crap onto its muppets--oops, I meant clients. And the banks will collect a big markup on the junk bonds disguised as AA muni-bonds just sold to their so-called clients. The clients, because markups are hidden fees, will never even know what they paid for the high risk bonds.

Heads Wall Street wins; tails the kids, the taxpayers, and the muppet investors lose.

10 likes, 2 dislikes
Posted by Teresa Vollenweider on 02/11/2016 at 6:21 PM

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