Sunday, September 28, 2008

So far, more than a 190 prominent economists have urged Congress not to pass the $700 bailout bill.

Trouble in Banktopia

Last week, there was a digital run on the banks that most people never even heard about; a "real time" crash. An article in the New York Post by Michael Gray gave a blow by blow description of how events unfolded. Here's a clip from Gray's "Almost Armageddon": "The market was 500 trades away from Armageddon on Thursday" Roubini added: "The Treasury plan is a disgrace: a bailout of reckless bankers, lenders and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the US taxpayer. And the plan does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown." and over here, the banks get B&Bsavers deposits and the tax payer gets the debt.

Posted by malct @ 04:31 PM (1177 views)
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15 thoughts on “So far, more than a 190 prominent economists have urged Congress not to pass the $700 bailout bill.

  • planning4acrash says:

    Hi Malct. Great post. Bit by bit, professionals are loosing faith. Hopefully we reach a critical mass soon, where the general public awaken.

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  • p4ac – “where the general public awaken.”

    from the srticle :-

    “One analyst said that the calls to Congress are 50 percent “No” and 50 percent “Hell, No”.
    There is virtually no popular support for the bill.”

    “Market Ticker’s” Karl Denninger confirms that the Fed has been draining the banking system of liquidity in order to blackmail Congress into passing the new legislation”

    “lowering the water in the swamp exposed one dead body – Washington Mutual – which was immediately raided on a no-notice basis by JP Morgan. Not even WaMu’s CEO knew about the raid until it was done….The Fed claims to be an “independent central bank.” They are nothing of the kind; they are now acting as an arsonist.”

    “Grassroots resistance, spearheaded by Internet bloggers (like Mish, Roubini and Denninger) are demonstrating that they can mobilize tens of thousands of “peasants with pitchforks” and be a factor in political decision making.”

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  • Bloomberg News reports that Dallas Federal Reserve Bank President Richard Fisher has broken with tradition and lambasted the proposed bailout saying that it “would plunge the U.S. government deeper into a fiscal abyss.”

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  • Credit Suisse now expects 10.3 million foreclosures (total) in the next few years. Numbers like that are not accidental, but part of a larger scheme to use monetary policy as a way to shift wealth from one class to another while degrading the nation’s overall economic well-being.

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  • Just been watching a news clip of Paulson standing next to Nancy Pelosi after their meeting. He looks incredibly nervous – like a rabbit – not like his usual self at all. This is looking more like a ‘trick’ by the minute. An attempt to push through a ‘no turning back’ deal past the lawmakers and the public at large. His look of anxiety reminded me of Faustus. Putting it simply I do not like the body language of this man as it smacks of desperation. Nobody that desperate has the right formula. More likely — a lot to lose.
    Anyway, yet another weekend event carefully calculated,but not quite pulled off this time.
    This extract from the article should at least be read by every American. In fact every one. I think we are also heading in the same direction in the UK.

    “The US taxpayer is not only getting into the plummeting real estate market, he is also backstopping the entire financial system including defaulting car loan securities, waning student loan securities, flailing home equity loan securities and faltering credit card securities. The whole mountainous pile of horsecrap-debt is about to be stacked on the back of the maxed-out taxpayer and the ever-shriveling greenback.”

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  • I like the metaphor of lowering the water in the swamp, quoted by malct 4.52pm. To flesh this out:

    The story so far. Banks and brokers have surfed in front of a breaking wave created by the Fed’s wave machine that was fuelled by cheap $. Now this machine is runnung low on energy and the surfers are sinking in the becalmed waters. The favoured surfers are brought to an island, the surrounding water is drained and the drowned bodies are exposed and fed to the favoured, with JP Morgan Chase and Goldman Sucks at the head of the meat line. Meanwhile Cap’n Paulson is raising funds to build the rescue ship.

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  • The USA will be fed this rubbish on the same basis they were fed the need for Homeland Security — it’s a patriotic emergency!

    This time nobody is wanting to buy, but it’s no more in their control than it is whether or not we can carry toothpaste onto an airplane anymore. ~We are being conditioned, as Malct has said elsewhere, until there is no questioning, not even any feeling for what’s happening. If that’s not conspiracy then what is it?

    The other oddity is that many of these gigantic companies appear to be left out of the picture. What choices are they having? Who’s swallowing who? So, who’s the puppeteer or puppeteers here? Who are the winners who orchestrated this monstrosity? We’ll never have the answers.

    For all you conspiracy-haters out there — nobody can tell me that those who own most of assets of the modern world and are scarfing the rest by leaps and bounds are so stupid as to have made mistakes that have ended in this script unintentionally. I mean, even you and I fairly normal folk have been here proclaiming the inevitable HPC crisis for how many years now? Why were these “experts” ignoring the inevitable? Only by design.

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  • indiablue – quite !

    hope someone’s listening.

    have my doubts

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  • 7. indiablue19 said…

    “For all you conspiracy-haters out there — nobody can tell me that those who own most of assets of the modern world and are scarfing the rest by leaps and bounds are so stupid as to have made mistakes that have ended in this script unintentionally. I mean, even you and I fairly normal folk have been here proclaiming the inevitable HPC crisis for how many years now? Why were these “experts” ignoring the inevitable? Only by design.”

    One word for you there, Indiablue – Enron. They are that stupid. (unless it was a conspiracy as well – youtube me) The irony is the conspiracy theorists giving these people credit for superhuman levels of intelligence, control, foresight and planning. What these people are good at is taking advantage of a situation for their own ends. They always have done, throughout history. Undoubtedly they have twisted things to their advantage, but planning it as a group, to me is simply beyond belief – I can’t believe that anyone who has seen the way the business world works could think this.
    Actually, this is something I haven’t thought of before – I am willing to bet that most of the people on here who believe in the ‘big conspiracy’ do not work in the private sector, or for large corporations – am I correct?
    To me there appears to be many almost in awe of the elite’s abilities, as if they have powers that none of the rest of us share – I think this is a big mistake.

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  • Correct, shipbuilder. All these guys have to do is stay ahead of the breaking wave and if things go wrong, well, they can make it up as they go along – not too difficult to do when their friends are in high places. And if the institution goes belly up – at least they personally have trousered the tens of millions during the good times. They’re living on easy street, not worrying about how to carry out a world plan formulated decades ago.

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  • $700? That’s a lot less than they were asking earlier 🙂

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  • Shipbuilder – It isn’t the corporations who seem to be in control here, but the super-governmental and supra-corporate powers who decided on their version of a “new world” and are steaming steadily in that direction. These people weren’t elected and didn’t earn their way. They thrive off confusion [which they often create] and war. Whatever crises occur are morphed into opportunities to terrify, subvert, and consolidate their gains. No, I don’t presuppose any special intelligence of corporate executives, having been one. But I do readily imagine there are those with such high levels of access to power which exceeds national boundaries and the means to manufacture phoney agendas and phoney wealth, so that even as citizens of so-called democracies, we are inextricably trapped in their self interested drama.

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  • “They thrive off confusion [which they often create] and war. Whatever crises occur are morphed into opportunities to terrify, subvert, and consolidate their gains.”

    Absolutely, which was my point – the question is do they also CREATE these crises and wars in order to profit from them?
    I say no, but the conspiracy theorists say yes – this is the absolutely crucial point where I and many others on here, differ.
    The powerful and rich elite taking advantage of situations is NOT conspiracy theory – it is daily observable fact, as we have seen in the last week.
    The conspiracy theory comes in where people try to claim that the crash was PLANNED and CAUSED by the elite, that 9/11 was planned etc. etc.

    My point about corporations was not so much that they are in control – I was likening the situation to a large corporation. To people who have never worked in one, it seems inconcievable that the individual decisions or violations of a corporation are not led directly from the top. People imagine that the CEO or board have direct contol over everything the corporation does. You will know that this is not the case and not possible. In the same way, world events could not possibly be controlled by a small elite to such a degree.
    What indirectly drives events are the aims of the finaicial elite and government – to amass money and power, in the same way that a corporations priorities are shareholder profit, not society well being.
    The film ‘The Corporation’ illustrates this point perfectly, why events that seem the like the result of evil design, are not.

    I think many debates on here go round in circles because people are not clear what the conspiracy theories are –

    Lets be clear that the conspiracy theories are that a small, organised elite plan and execute world events, such as economic booms and busts, AIDS, 9/11, earthquakes and tsunamis, and have designed every aspect of our economic and social system in order to take ultimate control of the planet.

    Do you agree with this?

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  • So perhaps we’re really splitting some hairs here. Such as – was Dick Cheney merely complicit in the war in Iraq ONLY because he expected to profit in illegally rigged bidding processes that shoveled billions into Haliburton’s pocket. OR did Dick Cheney actually pressure Congress into war with Iraq through exaggerated and even bogus arguments, in order to profit from the shoveling of illegal billions into Haliburton’s pocket. And if that differentiation is the definition of conspiracy – or not- I’m not sure it matters.

    The weather? No, I think it’s ever more apparent it has gone it’s own tragic course. But yes, I think there is a small organised elite who orchestrates international policy and involves government leaders in supranational plans [which is treason], which agenda has been demonstrated multiple times in all sorts of venues and by legitimate journalists many of whom find themselves in jail for some inexplicable reason. If this wasn’t the intent, then why have this organisation with a separate and completely private agenda that effects us all? I’m not satisfied to have controls placed upon us by people who’s main virtue is the monopolisation of the world’s assets. Anwya, why not progress these economic plans through existing organisations? What possible reason could there be? Why are no minutes kept nor reports published of these gatherings, gatherings readily acknowledged, for instance, by the Bilderberg group? I’m not satisfied with the explanation that people should feel “free to talk” in these unelected forums while representing our common interests. . Or is that freedom and silence so necessary because they only truly represent their own interests?

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  • And a film series I can recommend in support of what I am saying is the BBC “Power of Nightmares.” Which clearly points to a group who studied the benefits of conspiracy and treason together and have since created the Neo-Con faction in the USA who thrive off the creation of wars and panic as they amass power and personal wealth. The membership of this group is known, as is their agenda. As is the membership and agenda of Skull and Bones, who from university onwards rewards and hides the nefarious activities of its adherents. That membership, including both Bush and Kerry, demonstrated how little it matters who is elected to government as the overriding criteria for power and control now resides beyond the reach of legitimate government. To view the utter disdain in which the neo-cons hold citizens of any nation, view the sneering arrogance and heartlessness in any speech, and even offhanded comments by Cheney. He is so obvious in his motives he is kept away from the cameras entirely. The United States receives an entirely filtered view of what is happening in the world, via its completely biased media. I’ve lived there many years, and in Europe many years, and can attest to the difference in what is known by the main population – if they care to know.

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