Sunday, October 19, 2008

Please HMG – Stop Interfering

Financial Rescues Can Set Off New Problems

"If there was one thing policymakers could agree on during the recent economic turbulence, it was that interest rates on U.S. home mortgages ought to come down, and fast. But as the government stepped in recently to shore up the nation's banks, those rates went up." The law of unintended consequence (One for MW and P4AC). Get a free log-in and read the comments.

Posted by renting2 @ 04:12 PM (735 views)
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3 thoughts on “Please HMG – Stop Interfering

  • mark wadsworth says:

    Is that my cue? Right …

    1. Bailing out banks is basically printing money.

    2. Printing money leads to inflation

    3. Interest rates = inflation + risk element + profit margin.

    4. This sort of madness pushes up inflation and increases risk element

    5. Ergo, all things being equal, we would expect loonie taxpayer funded bank bail outs to push up interest rates paid by borrowers.

    Right. Over to you, P4AC …

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  • Right on schedule, the politician-puppets are promising to save us from the crisis caused by the banker-puppets by creating “a new world financial order.”

    Nicholas Sarkozy and Gordon Brown are calling for a “new international financial architecture for the global age” which will establish Rothschild global governance under the guise of “reforming and regulating” markets.

    In a recent article “The Joseph Principle and Crisis Economics,” Carl Teichrib, a young Manitoba researcher-farmer says the manipulation of calamities to re-make society can be traced back to Biblical times. Joseph, one of the first Court Jews, is best known for predicting seven years of abundance (inflation) followed by seven years of famine (credit- contraction or deflation.)

    Right on schedule, the Rothschild-politician-puppets are promising to save us from the crisis caused by the Rothschild-banker-puppets by creating “a new world financial order.”

    “In Genesis 47, Joseph, second in command to Egypt’s Pharaoh, warned of a coming famine, and prepared stock-piles of grain to aid the people through the crisis. When the famine hit the land, the people came to Joseph to buy food stock. A simple transaction was made; the citizens used the national currency to purchase grain.

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  • I think there are cockup, unintended consequencies elements in government actions, such as those identified in the article AND there are strong elements of mafioso activity, especially by the US government. These massive rip-offs may or may not have bankers as major players. When the economies of Thailand, Indonesia, South Korea and the Philippines were crashed by Washington, the IMF and assorted investors pulling out of Asian stocks, bonds and currencies in the late ’90s the financial institutions played a big role and Asian assets were picked up for a song by Merrill Lynch, Morgan Stanley, JP Morgan (of course), AIG, Salomon Smith Barney, the Carlyle Group and several industrial companies. The rip-off in Iraq, on the other hand, didn’t need much banker activity.- lucrative, non-competitive contracts were given to Republican Party donors and they were paid with broken-up Iraqi assets and US taxpayers’ (or Chinese savers and Saudi dictators’) money, whichever way you choose to see it. So it’s a mixed economy really.

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