"if the United States government doesn’t stabilize the markets, foreign governments increasingly will"

The more the Federal Reserve does to avert financial contagion, the clearer it becomes that the Fed alone cannot solve the problems in the financial system. To many Americans, it’s now obvious that taxpayers will have to step in. Less obvious is that if the United States government doesn’t stabilize the markets, foreign governments increasingly will, in exchange for an ever larger stake in the American financial system...[more]

No votes yet

If we had had a president and congress with some backbone, we might have gotten out of this mess. The way it is, we'll probably end up being owned by China or the oil producers.

Wall Street Fraud:KleptoCapitalism Drives Meltdown
by ARNAUD DE BORCHGRAVE (UPI)
http://www.conspiracyplanet.com/channel.cfm?channelid=46&contentid=4940&...

(Mar 06, 2008) The bursting of the housing bubble, which punctured the credit bubble, was a criminal enterprise at the outset, pooh-poohed at first by those who should have known better, that has now triggered a global economic crisis.

The U.S. prison population is at an all-time high with 2.3 million behind bars, but the subprime con men/women are enjoying the fruits of their scams.

Global estimates of laundered funds sheltered by individuals in offshore tax havens vary between $7 trillion and $12 trillion.

Yet only three postage-stamp size countries - Andorra, Monaco and Liechtenstein - are still blacklisted as tax-dodging havens.

The subprime mortgage meltdown caused banks on both sides of the Atlantic to write down some $400 billion (UBS puts the final banking-sector loss closer to $600 billion, which means scaling back lending by $2 trillion), and sent the dollar to an all-time low against the euro.

It also put 2 million U.S. homeowners at risk of losing their homes, countless millions of others of losing 30 percent of the value of their real estate in 2008, pushed oil over $100 a barrel, and gold to nearly $1,000 an ounce

Harvard's Lawrence Summers, a former U.S. treasury secretary (1998-2001), said subprime spawned the most serious crisis in housing since the Depression. Near worthless mortgage-backed securities were repackaged by greedy predatory operators to look like soul food for the brainless.

Collateral economic damage is huge -- and keeps growing. Diminished borrowing capacity based on a home's value affects consumer spending and cuts in to the local tax base. But so far no CEO dismissals or cuts in executive compensation, even in banks that misjudged and lost billions.

The Union Bank of Switzerland, the world's largest wealth manager, lost $19 billion (total exposure to subprime was closer to $30 billion). Singapore's "Sovereign Wealth Fund" quickly pumped in $11.5 billion, earning the sobriquet of Union Bank of Singapore.

The city-state assessed UBS as a good investment based on long-term growth estimates. UBS' chairman and chief executive officer, dour-faced Marcel Ospel, ignored calls from 6,700 shareholders to resign, growled at his board -- and kept his $25 million-a-year job. Citigroup is nursing its subprime wounds by preparing to lay off 25,000 employees.

Financial Times European Editor John Thornhill, assessing why top earners in the risk business feel no pain, says, "What rankles are the undeserving wealthy who take risks with other people's money but never suffer the consequences."

Wounded and distressed, leading investment bankers moved, belatedly, to propose new guidelines on pay and bonuses to the "Institute of International Finance," a global association of banks that met in Rio de Janeiro, Brazil, this week.

The initiative was also designed to encourage a fresh look at $20 million to $50 million annual compensation packages for CEOs and to discourage banks from huge cash bonuses to traders who take foolish bets to win a jackpot.

Wall Street CEOs quickly let it be known they would not agree to suspend multimillion-dollar compensation packages until subprime losses had been recovered "because it would take away Wall Street's competitive edge."

Federal criminal prosecutors are investigating whether securities firms booked inflated prices of mortgages despite knowledge of their true valuations. Rating firms are also being investigated for assigning ratings that were too high for instruments backed by subprime mortgages. Collateralized Debt Obligations were loaded with overvalued subprime -- and passed on with the Triple-A seal of sound risk.

Goldman Sachs and Deutsche Bank led a roster of banks that didn't take a bite out of the subprime apple -- but global market turbulence still hit them.

Fast-talking mortgage sharks assured millions not to worry about the fine print because the value of their purchase would be up 30 percent the first year. They even advanced the money for a down payment as small as 5 percent, or even no money down.

The administration's $168 billion stimulus program doesn't kick in until the checks go out in May.

Tax rebates of up to $500 for individuals and $1,200 for couples filing jointly -- or $300 for individuals who pay less than that in income taxes. All this does little to ease distressed homeowners -- but it adds to the federal deficit.

Fed Chairman Ben Bernanke told this reporter in early September the worst of the subprime crisis was now behind us. But it was just the beginning of a global financial tsunami.

His predecessor at the Fed, Alan Greenspan, conceded he had seen "subprime" ripples coming but didn't think it was any big deal. In early March Bernanke moved to pre-empt Congress. He appealed to banks to forgive large chunks of mortgage loans to borrowers who can't afford to pay and/or those who owe more on their mortgages than their houses are worth.

Unless we learn from this crisis, says the English-speaking world's most-read financial and economic columnist Martin Wolf, "another will put the world economy back on to the rocks in the not too distant future."

World food programs for the hungry in Darfur and other areas of malnourishment have already been hit by the hype for crop-based fuel, such as ethanol.

Spurred by skyrocketing oil prices, farmers have begun switching from food to fuel, thus causing global shortages. And no one feels this more acutely than the Rome-based World Food Program that expects to feed 73 million people this year. But wheat prices soared 80 percent in the past year.

With 6 percent of the world's population, America's prosperity in recent years has been its ability to borrow $2 billion to $3 billion a day from the rest of the world in return for Treasury paper to maintain the world's highest standard of living, which, in turn, is based on conspicuous consumption at a time of growing world shortages.

Clearly, a new paradigm is needed -- but it's not in the cards. We are simply told to go out and spend more.

But what happens if most of us decide to send our tax rebate checks to the bank or pay down credit card debt instead of buying, say, cheap toys made in China for the kids?

Or a new keyboard made in Taiwan for the PC? The law of unintended consequences beckons. Several major kicks are on the way.

It is, after all, the worst financial crunch since the Great Depression. And talk about "change" won't hack it.

Some 10 million American homeowners will have no equity left in their houses by year's end, according to Merrill Lynch estimates. That can only enhance the Democrats' fortunes in November.

New Deal for the 21st century? The stakes are high

ORIGINALLY PUBLISHED:
Klepto-Capitalism Drives Sub Prime Meltdown
http://www.terradaily.com/reports/Klepto-Capitalism_Drives_Sub_Prime_Mel...

Our economy, recessions, depressions, interest rates, etc. are all controlled by the Federal Reserve - which is owned by a small number of wealthy people. (Don't blow this off due to it's website origination - it is true.) Also (below), we can't discount the Bilderberg influence - another highly secret yearly meeting to determine it all. I have to assume that the Federal Reserve Scam (biggest scam in history) & the Bilderberg has played into what's going on now with sub-prime mortgages & the govt.s remedy.

The Federal Reserve-A Corrupt Institution
http://www.conspiracyplanet.com/channel.cfm?channelid=114&contentid=4856...

"Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the Nation's debt. The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over.

"This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it.

"Some people who think that the Federal Reserve Banks United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lender. In that dark crew of financial pirates there are those who would cut a man's throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislatures; there are those who maintain International propaganda for the purpose of deceiving us into granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.

"These twelve private credit monopolies were deceitfully and disloyally foisted upon this Country by the bankers who came here from Europe and repaid us our hospitality by undermining our American institutions. Those bankers took money out of this Country to finance Japan in a war against Russia. They created a reign of terror in Russia with our money in order to help that war along. They instigated the separate peace between Germany and Russia, and thus drove a wedge between the allies in World War. They financed Trotsky's passage from New York to Russia so that he might assist in the destruction of the Russian Empire. They fomented and instigated the Russian Revolution, and placed a large fund of American dollars at Trotsky's disposal in one of their branch banks in Sweden so that through him Russian homes might be thoroughly broken up and Russian children flung far and wide from their natural protectors. They have since begun breaking up of American homes and the dispersal of American children. "Mr. Chairman, there should be no partisanship in matters concerning banking and currency affairs in this Country, and I do not speak with any. (Cont'd...)

Bilderberg 2007 - Final Report
by DANIEL ESTULIN
http://www.conspiracyplanet.com/channel.cfm?ChannelID=117

(04-06-2007) The sun has set on Bilderberg 2007.

After a sumptuous lunch on this warm and sunny June 3, most Bilderbergers will return to their countries of choice freshly armed with precise instructions from the Steering Committee on how to proceed in covertly expanding the powers of One World Government.

Amongst this year’s luminaries in attendance were Henry Kissinger; Henry Kravis of KKR; Marie Josee Kravis of Hudson Institute; Vernon Jordan; Etienne Davignon, Bilderberger President; Queen Beatrix of the Netherlands, daughter of one of the founders, Prince Bernhard and the Queen and King of Spain.

As a rhetorical question, can someone please explain to me how is it that "progressive liberals" such as John Edwards and Hillary Clinton as well as do-gooder humanitarians with multiple social projects on the go such as Rockefeller and every Royal House in Europe can perennially attend Bilderberger meetings knowing that the final objective of this despicable group of hoodlums is a World Fascist - One World Empire?

How could it be orchestrated? (cont'd....)

From starlings Wall Street post above:

Wall Street Fraud:KleptoCapitalism Drives Meltdown
by ARNAUD DE BORCHGRAVE (UPI)
http://www.conspiracyplanet.com/channel.cfm?channelid=46&conte...

(Mar 06, 2008) The bursting of the housing bubble, which punctured the credit bubble, was a criminal enterprise at the outset, pooh-poohed at first by those who should have known better, that has now triggered a global economic crisis.

____________________________________________________________

I've known something was horribly wrong since I went to buy my own house in the summer of 2003. I went to the Hungtington Bank office on Reynolds Rd. and filled out some paperwork. The man was talking to me, prior to seeing any of my information, about an ARM. I absolutely could not see the upside in the idea, why would I pay 27 years of completely unknown interest rates to save 1 to 1 1/2% for 3 years? The interest rate was as low as I had ever seen in my lifetime, so when I went back to discuss 'options' I took an expert. My Mom. She's a CPA, licensed in Michigan, Ohio and Indiana. She's also a licensed financial adviser.

She also could not comprehend the benefit and so we left and went out to the Sky Bank office on Dussel, in Arrowhead Park. we did get a 5.25% fixed 30 year mortgage from that office.

The man at the Huntington used some very juvenile tactics, such as the 'everybody is doing it' routine and when I asked him how could I possibly project what the interest rates would be in 3 (or 5 years was an option) years - he just said, 'don't you think you'll be doing better than you are now in three years'? I said I had no idea - and it was a little embarrassing to say that, under the situation he had set up.

I did call the supervisor for this man and was met with a great deal of concern (not).

But I knew something was wrong then. I also know many people in their 20's and 30's who have borrowed more than their house is worth and used that equity to make improvements to the house, go on vacation and pay for outings.

My daughter went to college in '06 and my son is going in the fall. You cannot comprehend the credit offers that she received. I've had credit card companies call my underage children and one told me it was against the law to prevent these lenders from accessing my under age children by phone. I've seen ads on the television where they tell college kids they can borrow up to $40,000.00 a year and spend the money anyway that they want.

So, I've known this was coming - I just didn't really think it would happen in such a small span of time. So, it's worse than I thought it would be.

If you're here to tell me it's my fault - you're right. I meant to do it. It was alot of fun. That's why I have this happy smile on my face.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.