individuals who have opposed our activities in Europe’s finances in the past. Some are persuadable, others are not.”
“John, will you be in contact with these four?” asked Lowell.
“Most definitely, Lawrence,” said Morgan. “We have several weeks before we host the conference at The Liberty Hotel. I will have all possible contingencies addressed prior to then. Our resources, under the umbrella of Morgan Global, will become the lender of first and last resort for Europe. It is time to come out of the shadows , gentlemen—pardon the pun.”
Morgan toasted his fellow Brahmin, who laughed. Shadow banking , as the term was first used, referred to nontraditional, nonbank methods of lending. The term received a derogatory connotation after the 2008 banking crisis. The use of hedge funds and credit derivatives to finance the growth of America’s real estate market was not illegal. There would not have been a problem if people had simply paid their loans as they were contractually obligated to do. Morgan considered the insinuation of malfeasance unfair. He preferred to refer to his methods as the facilitation of credit .
“The collapse of the euro will have a profound effect on the markets and our own currency,” said Bradlee. “I have no confidence in this administration’s ability to handle the fallout.”
Morgan had considered this as well. This was also an opportunity to gain favor with the President and reap financial gain.
“I have thought of this, my friends,” said Morgan. “This administration’s appetite for quantitative easing—the printing of money to buy up our own debt—has to cease. At this point, the Fed now owns nearly one hundred percent of all ten-year Treasury Bonds. When this tool was initiated in 2009, the administration’s goal was to divest its bond holdings and normalize its balance sheet once the economy fully recovered. The recovery never happened. Now, inflation is forcing rates higher, which in turn are creating a staggering debt. Gentlemen, our nation is not that far behind the Eurozone. As one of our protégés likes to say— all empires collapse eventually .” Morgan allowed reality to settle in for a moment. All of these men were descendants of the Founding Fathers. They were freedom-loving, patriotic Americans who would spend their fortunes to protect America from failure. They knew tough decisions had to be made.
Morgan continued. “Gentlemen, our Founding Fathers worked just as tirelessly building our fledgling nation as they did in their fight for our independence from Great Britain. As fighters for the freedoms we enjoy, their causes for seeking independence followed a common theme—ensuring the freedoms and the rights of its citizens. Why should our fight for the protection of American freedoms be any different today?
“We are a nation in decline, politically, economically and socially. I, along with many of you, believe drastic measures are necessary to put America back on sound footing. I don’t think our country’s best days are behind her. But I do believe a reset is in order. Some of you have discussed this concept with me in the past. I do not know what a reset entails, but I do know it will be painful for some. As our forefathers knew, revolutions are nasty business, but necessary at times.”
Chapter 13
May 16, 2016
The Boston Herald Editorial Board
Conference Room
Boston, Massachusetts
Julia Hawthorne reluctantly accepted the praise being heaped upon her by Joe Sciacca, the chief editor of the Boston Herald . Julia just received another nomination for a prestigious award. Earlier in the year, Julia was awarded the Marconi Radio Award for the paper’s newly launched Boston Herald Radio—a first for an Internet radio station.
Now, the Society of American Business Editors and Writers granted Julia the Distinguished Achievement Award. Established in 1993, the SABEW singled out individuals who made a significant impact on the field of
“John, will you be in contact with these four?” asked Lowell.
“Most definitely, Lawrence,” said Morgan. “We have several weeks before we host the conference at The Liberty Hotel. I will have all possible contingencies addressed prior to then. Our resources, under the umbrella of Morgan Global, will become the lender of first and last resort for Europe. It is time to come out of the shadows , gentlemen—pardon the pun.”
Morgan toasted his fellow Brahmin, who laughed. Shadow banking , as the term was first used, referred to nontraditional, nonbank methods of lending. The term received a derogatory connotation after the 2008 banking crisis. The use of hedge funds and credit derivatives to finance the growth of America’s real estate market was not illegal. There would not have been a problem if people had simply paid their loans as they were contractually obligated to do. Morgan considered the insinuation of malfeasance unfair. He preferred to refer to his methods as the facilitation of credit .
“The collapse of the euro will have a profound effect on the markets and our own currency,” said Bradlee. “I have no confidence in this administration’s ability to handle the fallout.”
Morgan had considered this as well. This was also an opportunity to gain favor with the President and reap financial gain.
“I have thought of this, my friends,” said Morgan. “This administration’s appetite for quantitative easing—the printing of money to buy up our own debt—has to cease. At this point, the Fed now owns nearly one hundred percent of all ten-year Treasury Bonds. When this tool was initiated in 2009, the administration’s goal was to divest its bond holdings and normalize its balance sheet once the economy fully recovered. The recovery never happened. Now, inflation is forcing rates higher, which in turn are creating a staggering debt. Gentlemen, our nation is not that far behind the Eurozone. As one of our protégés likes to say— all empires collapse eventually .” Morgan allowed reality to settle in for a moment. All of these men were descendants of the Founding Fathers. They were freedom-loving, patriotic Americans who would spend their fortunes to protect America from failure. They knew tough decisions had to be made.
Morgan continued. “Gentlemen, our Founding Fathers worked just as tirelessly building our fledgling nation as they did in their fight for our independence from Great Britain. As fighters for the freedoms we enjoy, their causes for seeking independence followed a common theme—ensuring the freedoms and the rights of its citizens. Why should our fight for the protection of American freedoms be any different today?
“We are a nation in decline, politically, economically and socially. I, along with many of you, believe drastic measures are necessary to put America back on sound footing. I don’t think our country’s best days are behind her. But I do believe a reset is in order. Some of you have discussed this concept with me in the past. I do not know what a reset entails, but I do know it will be painful for some. As our forefathers knew, revolutions are nasty business, but necessary at times.”
Chapter 13
May 16, 2016
The Boston Herald Editorial Board
Conference Room
Boston, Massachusetts
Julia Hawthorne reluctantly accepted the praise being heaped upon her by Joe Sciacca, the chief editor of the Boston Herald . Julia just received another nomination for a prestigious award. Earlier in the year, Julia was awarded the Marconi Radio Award for the paper’s newly launched Boston Herald Radio—a first for an Internet radio station.
Now, the Society of American Business Editors and Writers granted Julia the Distinguished Achievement Award. Established in 1993, the SABEW singled out individuals who made a significant impact on the field of
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