Friday, February 27th, 2009...2:30 am
$JPM Cuts Fed Revenue by 1 Billion
For three days I’ve been waiting for someone, ANYONE to publish the real reason that $JPM cut it’s dividend (.38 to .05). JP feeds a line of malarkie to the press about wanting to pay back TARP asap. How patriotic (yeah, that was sarcasm).
Fact is, JP is kicking Uncle Sam where the sun doesn’t shine for the fiscal year of 2009 by cutting 4 billion bananas from the domestic income flow and yanking 1 billion blips directly from the clutches of the Revenue collecting arm (aka IRS) of the USA (dividends are taxed between 15% and 30% so I rounded to 20%).
So, what set JP off? I mean, yeah, there’s this pissing match between big banks and the fed. Big banks shamed Uncle Sam into making the implicit guarantee of Freddie and Fannie loans into explicit government debt. We get that. And in return we are seeing the Fed socialize the mortgage market, and they are building their own exchanges so they can get more money when they issue their new products (TPO’s [tax payer obligations]), but to have JP lash out like this - wow, I’d love to know the real scoop.
At the end of the day, I’m disappointed in the peanut gallery of publishers. They take whatever statements they get and just throw them out there. Doesn’t matter how absurd the spin is, they just dance to it. Choke on this you dance-a-teria types! You’ll dance to anything by any bunch of stupid Europeans who come over here with their big hairdos intent on taking our money instead of giving your cash, where it belongs, to a decent American artist like myself! (you guessed it, quoting Dead Milkmen)
