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December 3, 2008 at 11:57:22
Promoted to Headline (H2) on 12/3/08: by Andrew Hughes Page 1 of 1 page(s) |
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The mortgages taken out by buyers had been bundled into complex financial instruments; Mortgage backed securities. The latter along with Credit default swaps and derivatives set the stage for a global financial meltdown. The Glass-Steagal act of 1933 had been conceived to prevent the Banking sector from indulging in high risk investments to protect the depositors of these institutions. This was repealed at the end of the Clinton Administration through the Gramm-Leach-Bliley Act of 1999 which opened the gates to financial destruction. With the stroke of a pen, the financial services sector was given the power to literally bring down an economy . The most urgent matter for Treasury to address is the toxic derivatives market. The notional amount of outstanding derivatives, as noted by the Bank of International settlements, comes close to $512 trillion. This represents a figure that is impossible to settle and is the real Armageddon which Banks are preparing for by hoarding the cash that they have received through the T.A.R.P..Unless this time bomb is defused by bringing the undeclared positions on the table, the duration and gravity of this crisis can only increase. As the underlying assets of these instruments crumble the Banks' exposure to counterparty risk increases and will lead to the inevitable collapse of even more banks and reduce the availability of investment credit even more. The underlying assets include interest rates, mortgages, foreign exchange rates, credit ratings on companies and even creditworthiness of entire countries. This is the level of insanity that has passed for "Leveraged Investment"
With over $3 trillion of taxpayer money injected in to Banks, insurance companies, commercial paper, Fannie and Freddie what has come back to benefit the dying economy ? A reduction in lending, increased interest rates on credit card payments and further losses for these same institutions. No big surprise as the real economy has never stopped it's nosedive. Does the Treasury really not realise that there is no point in investing in companies that have no chance of redemption ? By handing over Americans' hard earned tax dollars and indebting future generations, the Treasury has been engaging in the biggest transfer of wealth in Human history. The U.S. is now the biggest debtor on the planet and the rest of the world has noticed. China, Japan and the Oil kingdoms that buy U.S. debt are losing faith and it's only a matter of time until they turn off the tap.
http://meltdown101.livejournal.com
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| 22 comments |
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Glad to see you write this
Every day, it seems, more people are beginning to feel "we're all in this together" days. The score card doesn't look too good for the working man and woman of the world. by Margaret Bassett (45 articles, 2909 quicklinks, 42 diaries, 1851 comments [99 recommended, 0 rejected]) on Wednesday, Dec 3, 2008 at 11:59:21 AM  (0+)
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Say more...
You say, "This represents a figure [$512T] that is impossible to settle and is the real Armageddon which Banks are preparing for by hoarding the cash that they have received through the T.A.R.P..Unless this time bomb is defused by bringing the undeclared positions on the table, the duration and gravity of this crisis can only increase." How do you propose that those you criticize should bring the undeclared positions to the table? What does that mean? by Richmond Shreve (30 articles, 70 quicklinks, 17 diaries, 156 comments [5 recommended, 0 rejected]) on Wednesday, Dec 3, 2008 at 2:12:25 PM (0+)
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Reply: Derivatives nightmare
There is no authority other than the Fed that can defuse this bomb, but they have no intention of doing so as this would stop the casino on Wall St., and these guys are the bankrollers of Government and thus the Fed. It will not happen, period. The U.S needs a complete change of direction politically as the current system precludes wisdom and replaces it with pure greed. by Andrew Hughes (14 articles, 4 quicklinks, 1 diaries, 9 comments [12 recommended, 0 rejected]) on Wednesday, Dec 3, 2008 at 5:12:38 PM (0+)
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it's going according to plan
This bank "bailout" is designed to crash the economy & the dollar in order to introduce what will be the new american currency...the amero. We will no longer be a soverign nation but the North American Union. Canada, the U.S. & Mexico will be joined as one. All of this in preparation for the one world order which many think is just a figment of the imagination of we tin foil hatters. The international bankers have managed to accomplish what they couldn't in 1933 when they tried to overthrow FDR and install a fascist government. They enlisted Major General Smedley Butler, a beloved war hero, (who later wrote "war is a racket") to help them implement their evil plan. He went along for a while, intending to rat them out when the time was right. That's exactly what he did. He appeared before congress and foiled their coup. But, you didn't learn about this in history class.. odd isn't it? Instead it was swept under the rug never to be spoken of again. Ahhh but along came the internt and the rest is "history". Look it up for yourself. It's about time every American learned the truth about their country and who rules it. So, don't believe for one second that this heist has anything to do with ineptitude. They've been planning this for a very long time. by jersey girl (0 articles, 0 quicklinks, 0 diaries, 1201 comments [734 recommended, 12 rejected]) on Wednesday, Dec 3, 2008 at 2:26:13 PM (0+)
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Reply: General Smedley Butler,
I read about General Smedley Butler on whatreallyhappened.com and was impressed by this man's integrity from the start. He singlehandedly prevented a takeover of Government and stopped the bankers, ie the Rotschilds and the Morgans from installing their puppet regime. However, patience is the virtue of those who want to impose their power and eventually the banks got their way through Clinton in 1999. The one thing that constantly amazes me is that it does not make any difference whether it's a Democratic or Republican government in power, it's always the rich who have the final say. Carpetbaggers never left the U.S they just left the carpetbags behind and started to wear Gucci suits. by Andrew Hughes (14 articles, 4 quicklinks, 1 diaries, 9 comments [12 recommended, 0 rejected]) on Wednesday, Dec 3, 2008 at 5:20:28 PM (0+)
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Reply: not what we learned in school
jg, on target.....as usual..but do you really believe anyone would look up any reference to Smedley Butler.?. I doubt it, but here's a link just in case by ej wiz (0 articles, 0 quicklinks, 0 diaries, 4 comments) on Wednesday, Dec 3, 2008 at 8:31:34 PM (0+)
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Reply: thanks ej
I meant to do that.... I appreciate the backup:) by jersey girl (0 articles, 0 quicklinks, 0 diaries, 1201 comments [734 recommended, 12 rejected]) on Thursday, Dec 4, 2008 at 4:52:56 AM (0+)
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Reply: To much information for one person
We need to get all this info linked to one place. Join us at www.StopTheOutrage.org and help us piece together the puzzle! Also, Check out "We the Peoples Amendment to HR 1424." Add to it, edit it, discuss it and help us get the bill to Washington before "We the People" owe the government $100,000 per person! Stop The Outrage! Evvie Harmon by evvie harmon (0 articles, 1 quicklinks, 0 diaries, 4 comments) on Friday, Dec 5, 2008 at 12:11:17 AM (0+)
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Charlie Brown and Lucy
Why oh why Charlie Brown do you complain when Lucy tricks you AGAIN? Good grief. What happened? My abuser beat me again. But he promised me he would not do it again. <Sniff> he PROMISED me he would CHANGE. He told me it was CHANGE I COULD BELIEVE IN. But I can't leave him, after all, I love him. He will change, I know it. I can change him, if we all just love him more, pressure him more, sign ANOTHER petition. Wahhhhhhhh, PLEASE stop abusing me, after all, I am a victim and not a ready volunteer of this abusive situation. Right? by Michael Cavlan (15 articles, 0 quicklinks, 6 diaries, 538 comments [131 recommended, 2 rejected]) on Wednesday, Dec 3, 2008 at 5:49:17 PM (0+)
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Reply: Michael
The beaten spouse syndrome is an analogy I like to use too. It fits so well. Go green party ! :) by jersey girl (0 articles, 0 quicklinks, 0 diaries, 1201 comments [734 recommended, 12 rejected]) on Thursday, Dec 4, 2008 at 4:57:07 AM (0+)
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Right you are Andrew
More and more of us are waking up to the sham known as the "two party system". There is no such thing. They are the united corporate party of america. Ruled by the same criminals that just robbed us blind and are now refusing us loans and upping the already exhorbitant interest on our credit cards. Time to wake up to the phony left/right paradigm that the powers that be want us stuck in. It's so much easier for them if we are arguing amongst ourselves so we don't notice them stealing us blind of our liberties & our pension funds. by jersey girl (0 articles, 0 quicklinks, 0 diaries, 1201 comments [734 recommended, 12 rejected]) on Wednesday, Dec 3, 2008 at 6:17:22 PM (0+)
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Good points Jersey Girl.....
Good points Jersey Girl One could add some to it though. Such as the illusions of ‘democracy’, the ‘power’ of the presidency (as anything other than a conduit for the plans of the elites), and I would add: that while the folks who rob us blind via the Fed, the IRS, and the sham of ‘Congress’, are indeed ‘criminals’ … what they are goes far beyond mere criminality. These folk are hideous monsters, secure in their delusions that they are above and beyond the mere cattle that they love to exploit. These folk embody all the stupid and banal evil and hubris of a thousand Marie Antoinettes... and they deserve the same fate. And until the cattle wake up and do more than ‘moo’, they will succeed in their plans. And all cattle must begin to ask... what kind of world do we really want for our little calves. They are special, you know. And they deserve better than what the Vultures have in mind.….. by richard (0 articles, 5 quicklinks, 2 diaries, 1359 comments [400 recommended, 8 rejected]) on Wednesday, Dec 3, 2008 at 8:35:03 PM (0+)
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Reply: Richard
I agree. Democracy is an illusion. Free? We are not free and becoming more enslaved by the minute. The plans the elites have in store for us are horrific. The only way we can fight against these vampires is to form a united front. But how can we do that when so many are too deaf to hear that freight train headed in their direction? by jersey girl (0 articles, 0 quicklinks, 0 diaries, 1201 comments [734 recommended, 12 rejected]) on Thursday, Dec 4, 2008 at 4:21:43 AM (0+)
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Ain't it Awful?
Andrew, you and your committee of agreement are playing a game called ain't it awful. I usually see it around a card table at a nursing home. Each player shares a rumor or allegation about the dreadful deeds of those not present in their circle. The other players agree, and say "Ain't it awful," signaling another player to try and top their story. Eventually everybody leaves the table shaking their heads and mumbling something about how hopeless it is. I guess it makes their real problems seem smaller. Do some reality checking. Get out in the sun. Give the conspiracy stuff a rest. by Richmond Shreve (30 articles, 70 quicklinks, 17 diaries, 156 comments [5 recommended, 0 rejected]) on Wednesday, Dec 3, 2008 at 9:41:37 PM (0+)
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Reply: Richmond
Conspiracy? Oh ok. I was waiting for the name calling amd slurs. What do YOU call it when our so called elected officals give trillions of our dollars to the treasury secretary with no accountability whatsoever? What do YOU call it when the man whose pockets we just lined with said trillions arrived in govt straight off of wall street? What do YOU call it when good ole wall street Hank takes that money and instead of circulating it back into the economy to create jobs, save people's homes, make low interest loans available and keep credit card rates low, he instead lines his wall street fat cat buddies pockets with our hard earned cash? How dare you insinuate those of us who believe our own eyes and ears instead of the words of corrupt politicans and the propaganda of the msm are a bunch of crybabies. I suppose it's better to believe there really is a wizard such as, I dunno, Obama ?? who will save us from all the bad nasty guys. Nice to have hope but, unfortunately, his people are Paulson's people. uhoh, now what? I don't know what to do, do you? If you have a plan please share with all of us so we can get started implementing it post haste ! Till then, Richmond, it might be wise to stop calling us names. Time to wake up Richmond. You're not in Kansas anymore. by jersey girl (0 articles, 0 quicklinks, 0 diaries, 1201 comments [734 recommended, 12 rejected]) on Thursday, Dec 4, 2008 at 4:07:45 AM (0+)
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Reply: And the world is flat
I guess there will always be some people who do not get it. Even when the US economy completely collapses and half of us are living in the streets, this person will find some fantasy on which to blame it. During the great depression the elites blamed the problems on the middle class for being too lazy to work and for being non-productive. There's always someone with blinders on, drinking the kool-aid, who tries to make it sound like he is the only voice of reason. If you know so much, please explain the root cause of this economic downturn instead of reverting to the old reliable 'conspiracy theory' name calling. After all, even Greenspan has admitted his mistakes now. Go on, please explain it... we are all waiting with baited breath. by jeff rock (10 articles, 1 quicklinks, 8 diaries, 187 comments [68 recommended, 0 rejected]) on Thursday, Dec 4, 2008 at 7:53:27 AM (0+)
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Yes
Yes, and you don't imagine, do you, that it is not done with malice aforethought. The whole heist has been planned by low criminals. Don't we call this crime any more, and don't we have rope any more? Let's have Justice! What about a hank of hemp for Hank and his accomplices, who are guilty of the premeditated murder by impoverishment of millions, with billions yet to come. by Keith Pope (8 articles, 0 quicklinks, 2 diaries, 96 comments [29 recommended, 0 rejected]) on Thursday, Dec 4, 2008 at 1:48:28 AM (0+)
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Reply: keith
We're gonna need a helluva lot of rope to hang those responsible for this mess ! But I hear ya Keith, I hear ya ;) by jersey girl (0 articles, 0 quicklinks, 0 diaries, 1201 comments [734 recommended, 12 rejected]) on Thursday, Dec 4, 2008 at 4:28:41 AM (0+)
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Jersey Girl
You have a great attitude. After 35 fruitless court actions, I found the government had closed the avenues of justice to ordinary citizens. Luckily, I stumbled upon the 1948 UN Universal Declaration of Human Rights. Constructed to prevent genocide, the 30 Articles cover most of the ways a government can abuse an ordinary citizen. When suing powerful organizations and individuals, all of them fall to charges of crimes against humanity. Article IV forbids torture in all its forms. By law we could have condemned the Supreme Court, the Administration, the Congress, the CIA and so forth for crimes against humanity and murder. Find a widow or orphan who died of exposure after Citigroup foreclosed on her home. Which GM managers sat on the electric vehicle patents and crushed the remaining EV1's in a landfill? If we can't get justice in America, hold them as enemy combatants in Gitmo until we take them overseas. We ordinary citizens should not be on the defensive. by Jason Paz (68 articles, 88 quicklinks, 112 diaries, 1386 comments [97 recommended, 1 rejected]) on Thursday, Dec 4, 2008 at 7:45:09 AM (0+)
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How many of you have read "War is a racket?"
I bought this short book months ago, and it has served me well in understanding how and why our nation is in the position it is in now. The book is rather small, only takes an hour or two to read - and IMO, and is a must-read for those who honestly seek to understand what is occurring in our nation. For all practical purposes, the Bush administration is NOT a lame-duck administration, and is working overtime to derail and sabotage the Obama administration before they are ever sworn into power. The below story, published on RAW Story, shows that Bush is doing his best to punish the nation for supporting Obama, and because of our votes, punish a nation for choosing the high-road over Bush's fascist beliefs. In simple terms, Bush appears to be throwing a "temper tantrum" which ultimately is targeting those who voted for the rule of law and the constitution. He pushed through a draconian measure that limits dental care for the poor emanating from Hospitals, and his latest act is unconstitutional and is in direct conflict with the separation of church and state doctrine: New Bush rule could hit poor, rural women the hardest The Bush administration is reportedly planning as one of its final actions to announce a "right of conscience" rule that could further limit access to abortion, particularly for poor and rural women, and might even impact a much broader range of medical procedures. The rule would apply to over 500,000 facilities nationwide and would allow all healthcare workers -- not just doctors and pharmacists but potentially even janitors -- to refuse to participate in any procedure they find morally objectionable. Harris-Lacewell explained that regulations like this "right of conscience" rule have "been the new strategy of those who have been opposed to women's reproductive rights. ... Rather than fight this out in the courts ... what you do is limit access. You limit the education that doctors are getting in medical school. You limit the ability of these doctors to practice in various states and localities. You just keep reducing, reducing, reducing." LINK This was a comment entered in Haloscan in regard the above article on RAW Story, and it tells a tales that indicates that Bush' orders are an extension of his belief that America should be a theocracy rather than a "democracy." "This has been going on with bi-partisan support for years. Rick Santorum and John Kerry sponsored the Workplace Religious Freedom Act, also supported by Hillary Clinton and Ted Kennedy: The intent is that an employer must make an accommodation for people whose religious holidays differ from Christian holidays, who wear religious garb, and so on. Fine… We've also seen new rules that make it harder for our veterans to receive proper medical care enacted in the last 30 days or so. The military supported Obama by approximately a six to 1 ratio - so because of their beliefs, even though they suffer the worst, they are also being punished by Bush for voting against his Neo-conservative and phony "Christian" ideals which most true Christians reject and are against! I still say that impeachment is not necessary! The Bush Crime Family has been working with a huge amount of right-wing enablers, and since many of his criminal actions are unconstitutional, cross state lines, and are striking evidence that this is a conspiracy against the American people, the RICO Statutes should immediately be used to issue indictments and takes Bush and his cronies from all positions of power before the inauguration by virtue of their ongoing and escalating assault on the American people. Working fast, with the evidence we possess, this band of criminals could be taken-down in a matter of a few weeks, or even a couple of weeks if someone has been using this strategy to help get this sociopath out of office before his harm to our nation is irreparable. Obama should be advised to look at ALL of his options, and taking these war criminals and those who have spat on our constitution out of the White House in cuffs would send a message that would reverberate around the world, thus helping to improve our image on a global basis that no one is able the law, especially those who believe they have the god-given right to send the United States back into the dark ages of bigotry and religious suppression. William Cormier by William Cormier (152 articles, 11 quicklinks, 21 diaries, 418 comments [9 recommended, 0 rejected]) on Thursday, Dec 4, 2008 at 8:26:13 AM (0+)
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Where Is The Anxiety Relief Valve?
Market gyrations and Paulson’s also seesawing decisions are not instilling any confidence in the taxpayer. The depth of the economic hole is incalculable, and Bernanke seems to have a one-direction lever on interest. Where is the stress relief? http://pacificgatepost.blogspot.com/2008/12/recession-depression-deflation.html by James Raider (41 articles, 0 quicklinks, 0 diaries, 106 comments [2 recommended, 1 rejected]) on Thursday, Dec 4, 2008 at 11:07:16 AM (0+)
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Stop the Outrage! It's now or...?
I am 25...I want my future. I was raised in the Middle Class...a teacher and a small business owner. My parents are nearing retirement and refuse to look at their portfolios. This is getting out of control! We Have to Act NOW! If WE all 350+ MILLION organize...we WILL change the future! Join Us! Share your research! Read our amendment, add your imput! "We the People are going to Washington!" by evvie harmon (0 articles, 1 quicklinks, 0 diaries, 4 comments) on Friday, Dec 5, 2008 at 12:01:43 AM (0+)
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