CAPTIVE CAPITALIZATION: THE NEW US SYSTEM

The US Treasury is now the sole capitalization entity in our dead banking system.  Sometimes, bankruptcy is healthy: it reveals all the defects and deceptions of deep in debt deadbeats, it finally clears the books of impossible to pay loans, and it allows the survivors to start over again.  The US banking system is nearly totally bankrupt.  And now, trying to save it, the US government is toying with going too deep into debt and thus, also going bankrupt.

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 Then there is the business of Goldman Sachs running our Treasury or I should say, running away with our Treasury.  We have had several of these guys running it in the past and the record is not good.  Goldman Sachs is no longer boasting about how they dodged the bullet.  They are sliding off the same cliff all the other banks are falling off of.  For this mess, created by these very same gnomes, is now turning on all of them.  For they all did the exact same stupid things in unison.  Indeed, the death of the giant banks is due entirely to past successes in screwing around with financial systems so global paper profits would pour into the coffers of these banking giants.

 

Bloomberg.com: U.S. Needs to Pump $1.2 Trillion Into Banks, FBR SaysWorldwide

 The U.S. may need to spend another $1.2 trillion to recapitalize the eight largest financial institutions and stabilize the markets because private investors won’t take the risk, an FBR Capital Markets analyst said.

“The sheer size of the capital deficiency, coupled with the opaque nature of credit risk, will keep private capital sidelined,” Paul Miller said in a research note yesterday….Miller, who’s based in Arlington, Virginia, said Treasury’s preferred equity investments aren’t “real capital” and won’t ensure the firms will survive.

Though Treasury’s cash injections so far have bolstered bank capital, they giveTreasury a senior repayment position that leaves common equity holders to absorb the majority of the losses, Miller said.

“Only injections of true tangible common equity will solve the current crisis,” Miller said. Treasury spokeswoman Brookly McLaughlin declined to comment on Miller’s report….Recapitalizing those eight largest firms would help stabilize the rest of the U.S. financial system, he said. Other mid-sized and small financial firms aren’t as heavily leveraged and should rebound once credit starts to loosen up.

“Once the system is running smoothly and private capital begins to return, we can debate the best way for the government to extract itself,” he said.

 

In other words, you and I will be taking on more future national debt in order to capitalize the eight largest banking scams on earth?  This is, obviously, totally infuriating.  End The Fed Demonstrations November 22  are one way to show some ire. The NY demonstration will be at 1pm at the CORNER OF Liberty St and Church St on 11.22. Then march to the FED and back to park. Then some will march to Seaport and others to City Hall train station for handouts and information. Probably end sometime after 3 pm.

 

The day for this demonstration was to remind us about how the sneaky bankers in the past created the Federal Reserve. For this is the 101st anniversary of the secret meetings that launched this central bank which is private, not public. For reporters discovered some small information about the meeting to be held on Jekyll Island and were held off by police as the private railcars left Hoboken that night, on the 22nd of November.

 

Back to the present bank heist: the US is no longer a capitalist nation. We are a captive nation. We have decided to capitalize ourselves with debt. This was falsely called ‘leverage’ but it is more like a shovel used to dig our own graves. In Goethe’s Faust, Part II, the wizard imagines his demonic servants are digging great channels to make water flow to places he wants. He thinks he is expanding his control of the landscape.

faust-makes-a-deal

But the demons are digging his grave. Finally, Faust looks into his grave and sighs, ‘Verweile doch! Du bist so schön!’ The deal was, Faust would go to hell only once he said this. So he didn’t say it no matter how happy he was with sexy women or money or anything. This is how the Outer Darkness operates: he was so happy with death’s doom opening at his feet, he wanted that moment to last forever.

 

The US has been busy digging its own grave for 35 years. When Nixon unilaterally chose to launch the floating currency, it was only a matter of time before we switched from saving money and building up real reserves to living entirely on debts. Debts are holes in the ground. Not growth. We can risk debts when we build things. But when we use debts to destroy things, we die.

 
A good deal of the overhang of excess US debts are due to death-operations. Namely, spending on wars from the Vietnam War, the Cold War and now, the War on Terror. Also, we built up trillions in debts by dumping this on top of all our manufacturing systems to pay for nothing useful at all. These were all ‘buy out’ operations where one corporation is used as a platform by the biggest investment banks to buy up another corporation, putting both much deeper into debt in the process.

 

Due to malicious changes in US regulations, the gnomes could do this with nearly total impunity. At first, they would pretend they needed to do this to ‘grow’. But this growth was really only a growing load of debt. In the final days of the corporate merger frenzy, they gave up all pretense of logical growth and simply used hedge funds as the vehicle for dumping debts. These unregulated, offshore entities had free rein.

 

Incidentally, ‘free rein’ is a phrase most people don’t understand anymore. As a horsewoman who used to drive carriages and ride horses, this is when the reins are dropped, break or the horse takes the bit in the mouth and runs off, tearing along very dangerously. This usually ends badly.

 

Henry Paulson – Wikipedia, the free encyclopedia

In 2004, at the request of the major Wall Street investment houses, including Goldman Sachs, then headed by Paulson, the U.S. Securities and Exchange Commission agreed unanimously to release the major investment houses from the net capital rule, the requirement that their brokerages hold reserve capital that limited their leverage and risk exposure. The complaint that was put forth by the investment banks was of increasingly onerous regulatory requirements — in this case, not U.S. regulator oversight, but European Union regulation of the foreign operations of US investment groups. In the immediate lead-up to the decision, EU regulators also acceded to US pressure, and agreed not to scrutinize foreign firms’ reserve holdings if the SEC agreed to do so instead. The 1999 Gramm-Leach-Bliley Act, however, put the parent holding company of each of the big American brokerages beyond SEC oversight. In order for the agreement to go ahead, the investment banks lobbied for a decision that would allow “voluntary” inspection of their parent and subsidiary holdings by the SEC.

 

The corruption at the heart of US imperial politics at work!  The US government usually does the bidding of the biggest donors to either political party.  These bribers will pour money into the pockets of whoever is running things.  If anyone dares to put them under any sort of controls or regulations, the party that allows this is punished by the gnomes moving all their bribery loot to the opposing party.

 

Right now, seeing Americans getting totally fed up with the Republican Party, all these gnomes are breaking ranks with the GOP and flooding the Democratic party with their loot.  They are most desperate to gain the allegiance of the Democrats so they can call all the shots.  They are mostly interested in preventing any regulations and taxes.  

 

So here we are today: our entire government from top to bottom is focused on bailing out these criminals who evaded government regulations!  The mushrooming mess took off after they ceased to be regulated by the SEC.  The utter and total failure of all these investment banks is totally their own irresponsibility!  They did this, not us!  They created this mess.  And now they want more than a trillion dollars to fix things.

 

One of the important regulations of our government vis a vis banks is to insure that they are properly capitalized.  This means, they must have enough savings to pay for any losses due to their lending.  To evade this, the bankers created all sorts of goofy schemes so they could move loans off of their books and park them elsewhere.  The plot was for them to create infinite loans and move them outwards in waves.  This way, they could make obscene profits.  The only hitch was, where could these loans be parked?

 

This began the great Easter Egg Hunt for dupes.  The gnomes needed places willing to go deeper and deeper into debt.  This way, they got ‘capitalized’ and this was immediately cannibalized by being put into the back pockets of the gnomes, themselves.  So their pay shot up.  Bonus after bonus: they all became the richest bastards on earth.  But not forever.

 

Bloomberg.com: Goldman Falls Below IPO Price, Erasing Almost 10 Years of Gains

The stock fell as much as $2.83 to a low of $52.35 in New York Stock Exchange composite trading this morning, giving Goldman a market value of $25 billion. At 9:38 a.m. the stock was down $1.89 to $53.29. The New York-based company’s value reached a high of $105 billion, or $248 per share, on Oct. 31, 2007.

Goldman, which converted from the biggest U.S. securities firm into a bank holding company in September, has given up more than 75 percent of its market value this year as investors shy from companies that derive financing and revenue from capital markets. Lloyd Blankfein, Goldman’s chief executive officer, said last week that the firm intends to stick to its strategy of serving as an adviser, financier and investor.

 

As the grave yawns at Goldman Sach’s feet, they are filled with fear.  This is why they are most frantic to have you and me capitalize them.  They lost three quarters of their value in three quarters.  The beginning of the collapse of Goldman Sachs stocks happened only three months after the banking crisis began  in July, 2007.  Citigroup, another criminal operation, is very close to $0 and is in hysterics, trying to save itself.  

 

The spectacle of bankrupt Detroit car presidents flying to DC on private jets caused many Americans to lust for the end of our native auto industry.  But the pirates and gnomes get no negative press for coming to DC in their fleet of private jets.  There are virtually no hearings, considering the size of this mess.  The $25 billion bail out of our very physical and very important auto industry has people steamed.  But a $1.2 trillion bail out of the bankers who caused this mess, this is getting little press outrage.

 

Time to go to the past to see how this evolved:

 

June 12, 2006:  Mr. Risk Goes To Washington

Mr. Risk Goes To Washington 
Hank Paulson’s profound understanding of risk and reward makes him the perfect pick for the Treasury 

Think of Paulson as Mr. Risk. He’s one of the key architects of a more daring Wall Street, where securities firms are taking greater and greater chances in their pursuit of profits. By some key measures, the securities industry is more leveraged now than it was at the height of the 1990s boom. It has also extended its global supremacy since then.

Goldman, under Paulson’s leadership, became one of the greatest and most profitable risk-taking machines ever built. Since 1999, when he took over as sole CEO, Goldman has competed with bigger rivals such as Citigroup (C ) and JPMorgan Chase & Co. by being aggressive, making smart gambles, and putting the company’s own money into deals. Paulson stresses Goldman’s willingness to take risks along with clients in the latest annual report: “Investment banks are expected to commit more of their own capital when executing transactions.”

The subject has become an obsession at Goldman: how to find profitable risks, how to control and monitor them, and how to avoid the catastrophic missteps that can bring down whole companies. That means taking on more debt: $100 billion in long-term debt in 2005, compared with about $20 billion in 1999. It means placing big bets on all sorts of exotic derivatives and other securities. And it means holding almost $50 billion in the piggy bank, enough cash and liquid securities to keep the firm going in the event of a financial crisis.

By contrast, Robert E. Rubin, head of the National Economic Council and later Treasury Secretary under President Bill Clinton, was Mr. Prudent. Rubin also came out of Goldman Sachs, but it was a much smaller firm back then, and because Goldman was a private partnership, it had limited access to the public capital markets. That made Rubin far more attuned to the need to preserve and protect capital. Perhaps that’s one reason why he pushed for frugality from the very moment he entered government.

The appointment of Paulson, Mr. Risk, as Treasury Secretary is at once ironic and completely appropriate. According to conventional economic wisdom, the single biggest problem the U.S. faces is a massive accumulation of debt. Both liberal and conservative economists warn that the bulging trade deficit, now roughly 6% of gross domestic product, poses a danger of sending the dollar plunging and causing a financial meltdown. The federal budget deficit for 2006 will hit at least $300 billion. And current projections call for Social Security and Medicare to run up enormous deficits in the long run.

Yet Goldman actually has leveraged up faster than the U.S. government in recent years. In 1999, Goldman had about $1.60 in long-term debt for every dollar in net revenue. In the same year, the federal government had $3.10 in debt, mostly long-term, for every dollar in revenue. Today the government has about $3.70; Goldman, around $4.

 

The Saudi bankrolling Citibank has a very shady past and his ‘money’ has little physical reality.  I suspect he is bankrolling the bank via debts that are hidden from view.  Indeed, many of these systems are based on debts.  Paulson made Goldman Sachs grow by piling on more and more debts and playing riskier games.  To enable this, he and his cohorts all paid our government many millions of dollars to undo regulations and throw away laws inhibiting the growth of debt and the use of leverage to run risky gambling operations.

 

Indeed, these same people went into the gambling business for the same reason: to grow richer while producing nothing of great value or utility for our society.  Both Goldman Sachs and the US government went deeper into debt during this decadent decade.  Note how Goldman Sachs now owes $4 for every $1 they earned…TWO YEARS AGO.  Both the government and the corrupt bribers of GS are now deeper in debt vis a vis either taxes or revenues.  

 

Note here, how the same people driving their banks into a hole are also directly responsible for driving our own government into the hole.  And to save their own skins, they are forcing us to dig our government into ever-deeper holes!  This is why I want Paulson arrested. This is Grand Theft, writ large.  Here is another old article from back, when Goldman Sachs went ‘public’ and began to sell shares in the DOW market:

 

Goldman Sachs goes to market | May, 1999 Article from The Scotsman 

GOLDMAN Sachs, the eminent Wall Street investment bank, is poised to float part of the company on the stock market.
 
Goldman’s six-man executive committee agreed unanimously to float between 10 per cent and 15 per cent of the bank on the New York Stock Exchange this autumn provided the firm’s 190 partners, who have already expressed overwhelming support, approve a more detailed plan to be proposed in the near future.

The investment bank is thought to be worth about $30 billion (GBP 18.4 billion) on the market compared with its book value of $6.3 billion and a listing will add greater fire power to the bank’s expansion ambitions. Jon Corzine and Henry (Hank) Paulson, co-chairmen and co-chief 

 

Basically, GS is now worth $5 billion less than when it went public.  HAHAHA.  If we took into account, inflation, then this is actually closer to $8 billion less.  Many manic bubbles last about 8 years.  When we look at the stock charts of the top 8 investment banks including the already dead ones, we see the exact same bubble.  This is due to the fact that the cessation of regulations coupled with Greenspan dropping interest rates to 1% are the causes of this sudden swelling of seeming wealth.  This is yet another reason for NOT recapitalizing any of these investment banks.  They enabled this mess by corrupting the Fed and the Treasury as well as Congress and of course, the Presidency itself, both Clinton and Bush I and Bush II.  

 

They are traitors.  They are now destroying us all while frantically trying to preserve their social advantages and vast wealth as well as a huge fleet of yachts and private jets.  Here is yet another article about GS from 1999:

 

Goldman Goes Shopping Wall Street is wondering what the venerable investment bank will buy after it goes public, because Goldman needs to fill some holes. – May 10, 1999

 Instead the 130-year-old bank will focus on what executives think are the missing pieces: fortifying its asset management division and building a strong Internet presence. Asset management is particularly important, since it will heavily influence Wall Street’s perceptions of the company’s earnings stability. After its IPO, Goldman will be valued as the nation’s third-largest investment bank, behind Morgan Stanley Dean Witter ($63 billion) and Merrill Lynch ($33 billion). However, it’s likely to trade at a price/earnings multiple below those banks’ as well as other peers’ like J.P. Morgan. Each of those firms has a large fee-generating asset management business that provides steady income streams when banking deals evaporate. The result is a more stable stock, and a higher P/E ratio. Goldman’s earnings are too dependent on investment banking and volatile trading activities. (Asset management accounts for less than 10% of its revenues, compared with 17% at Morgan Stanley and 22% at J.P. Morgan.) If interest rates suddenly rise or an emerging country’s economy, like Brazil’s, tanks, Goldman’s earnings, and its stock price, could fall faster and harder than its peers’….

Some Wall Streeters wonder whether we will see the mother of all deals–a merger with Chase or Morgan Stanley Dean Witter. Others scoff. “Goldman’s going to buy us? How’s it going to do that?” asks a Morgan Stanley Dean Witter banker. He’s got a point: Morgan Stanley’s market cap is more than twice that of Goldman’s. But given the waves of consolidation in the banking industry, Goldman needs to move swiftly if it wants to be a course-setter. Goldman itself would be attractive to at least several other financial giants. So if it doesn’t shop quickly, it could wind up having to adapt to someone else’s plan, not its own.

 

This old article gives us a good idea of the feeding frenzy that was unleashed by the death of government regulations.  On top of this, the noxious Japanese carry trade was taking off at this point although it was not mentioned in the news, it being a secret back door for borrowing money.  Note also how this article talks about how fees would feed banks in bad times.  So it was: as everyone borrowing money struggled to stay above water, fees poured into these banks.  But the minute people declare bankruptcy: boom.  It collapses.  Thus, the need for ‘capitalization’ in case of forfeits.  

 

This is where the noxious Derivatives Beast enters the room, looking for banks to eat.  They decided to NOT capitalize at all but rather, move this risk into the new credit default swap market.  This is what is now collapsing even worse than any other sector. Now, back to the unfolding disaster today:

 

Goldman, Morgan Stanley sink; analysts cut outlook – Forbes.com

Shares of the two remaininginvestment banks slipped Monday, despite news that Goldman Sachs’ top executives are foregoing their bonuses this year.

The decline came as analysts cut their estimates for the companies, with a Bernstein Research analyst noting this past quarter “represented the most difficult capital market environments in the last decade.”…In an interview, Hintz said the investment banks are experiencing difficulty across all of their business lines as the economy struggles, with seemingly every strategy for turning a profit running into problems. Illiquid markets for fixed income products like corporate bonds and preferred stock, difficulty hedging and high volatility are all driving down the ability to make money, he said.

“Government trading is the only thing that is doing well,” he said, referring to the sale of government bonds. “Government trading only does well when the economy is in a free fall.”

 

They are all running to the Central Bank and the government for cover.  After destroying all regulations!  I say, this takes some cheek.  They are getting fees for moving government funds in and out of the central bank, their own bankrupt messy banks and then back into the government again, this round robin of money moving is all DEBT.  No one has any reserves that comes anywhere matching the losses. 

 

As business around the world dies, bankruptcies rise.  This hammers the system from below.  The government is printing money to make up for the losses but the businesses are closed and workers are not gaining income so they can’t spend and this is where the mess is going to get really nasty.  Everyone is reducing their workforce as fast as possible.  Especially the big investment banks.  This reduces spending and thus, commerce and thus, the returns banks can get on loans as more and more of these go belly-up.

 

The housing collapse in the US came when the US economy was still functional!  Stocks were rising, not falling!  Now, all are falling and falling into the same deep debt hole dug by the gnomes themselves.

 

Citigroup Tries to Stop the Drop in Its Share Price – NYTimes.com

The bank has posted four consecutive quarters of losses, caused by billions in write-downs. Nine of its investment funds have cratered this year. And now the bank could face a tsunami of new losses in its once-lucrative consumer loan business as the global economy weakens.

Within the bank’s Manhattan offices, television screens have stopped displaying the company’s stock price. Traders have begun making jokes comparing Citigroup to the Titanic….“All the danger signs are flashing red,” said Simon Johnson, a professor at the Sloan School of Management at the Massachusetts Institute of Technology.

Much of the fear centers on the unknowable. It is unclear just how bad banks’ losses on consumer loans, credit cards and mortgages will be as the economy weakens. Commercial real estate loans are deteriorating, and it is unclear whether banks have sold the worst of their holdings. Then there are all the investments that lurk off of banks’ balance sheets, in the so-called shadow banking system. And a new uncertainty has leapt to the forefront as the automotive industry teeters, sending investors scrambling to calculate how much banks are exposed to these loans….The current rout appeared to have gained momentum after Treasury Secretary Henry M. Paulson Jr. announced last week that the government would abandon its original plan to purchase troubled bank assets. That sent prices of commercial mortgage bonds and other loans into a nosedive. Mr. Paulson also said the Treasury would let the incoming administration determine how to deploy the remaining $350 billion left in the program.

Yet investors have grown increasingly nervous about the appearance of a leadership vacuum in Washington as the financial markets burn, and some have begun saying that President-elect Barack Obama should move more rapidly to release a plan.

 

If Pelosi had listened to us online fanatics, she would have impeached both Bush and Cheney.  But she didn’t.  Not that any of the banking gnomes demanded impeachment.  Far from it!  They were extremely happy to have this destructive duo in control.  They paid a LOT of money to get them in control and were quite pleased with the changes wrought by the Republicans.  Demanding Obama release a plan is pure silliness.  If they wanted the Democrats in control, all they had to do was defund the GOP in 2004.  Back then, they were very happy with Bush!  So now, we pay the price.

 

Obama can’t launch a plan today for the simple reason, Congress is filled with GOP dead ducks who are leaving office.  Why would they cooperate?  And why would Obama want to risk a plan being shot down by a bunch of sore losers?  Obviously, not.  If Congress wishes to resign today and restart with the new members, fine.  I would laugh to see that.

 

Ho, ho, ho, Freddie and Fannie Santas are coming to town!

 

Fannie, Freddie Will Suspend Foreclosures Through Jan. 9 to Help Borrowers

The six-week halt will begin Nov. 26, a day before the U.S. Thanksgiving holiday, and last through Jan. 9, the companies said in separate statements today. The hiatus is designed to give servicers more time to implement a streamlined loan modification program for struggling borrowers.

“It’s a giant time out,” Paul Miller, an analyst at FBR Capital Markets in Arlington, Virginia, said today in a Bloomberg Television interview. “I wouldn’t be surprised to see this across the board.”

Fannie and Freddie, government-sponsored enterprises that own or guarantee $5.2 trillion of the $12 trillion U.S. home mortgage market, were placed under federal control Sept. 6. They have since been pushed to work harder at modifying troubled single-family and multifamily mortgages to curtail foreclosures.

Until a streamlined modification program is up and running, “we felt it was in the best interest of both borrowers and Fannie Mae to take this extra step to ensure that homeowners with the desire and ability to prevent foreclosure have an opportunity to stay in their homes,” Fannie Chief Executive Officer Herb Allison said in a statement.

 

Only the sword of eviction keeps many homeowners up with their payments.  Many people prefer to pay tomorrow.  Witness our entire banking system!  So there has to be a huge element of fear here or people will put off paying for anything.  Once we cease having evictions, the people who are ‘honest’ feel resentment.  Especially when they see free-spending neighbors who loaded tons of debt on their homes to go on vacation, live in fancy houses and buy lots of toys, getting another free ride.

 

The moral dimension of debt is all-important.  Moral hazard is often the only barrier to running up too much debt.  But then, this is the Donald Trump nation.  Multiple divorces and bankruptcies while living the high life.  I have seen many ads on TV or the internet, telling people to take on more loans to pay for ‘fun stuff’ like swimming pools or vacations.  The bankers knew perfectly well, this money was being used frivolously.

 

FDIC May Exclude Short-Term Loans From $1.5 Trillion Debt Insurance Plan

U.S. bank regulators may exclude the shortest-term loans from a $1.4 trillion debt-insurance program, helping the Federal Reserve avoid further unpredictable swings in the country’s main interest rate.

Federal Deposit Insurance Corp. staffers are likely to recommend excluding loans that mature in 30 days or less, which would encompass overnight interbank loans at the rate targeted by the Fed, a person briefed on the plan said on condition of anonymity. FDIC Chairman Sheila Bair and other board members are scheduled to vote today on regulations governing the plan.

The Fed has failed for two months to keep the federal funds rate close to the target set by policy makers because of more than $1 trillion of loans flooding the banking system. The original FDIC proposal required fees to insure debt, spurring complaints that it would lead to an exodus from the $250 billion market for overnight loans between banks.

 

Another obvious sign that this is a fundamentally bankrupt system.  The US has to recognize that we can’t use debt to get rich. The investment bankers tried this and failed.  Donald Trump has tried this more than once and failed.  Like his defunct TV show used to bellow, ‘You are FIRED!’  And all these people should be fired.  We can’t save them.  Not even half of them.  Time to have a real ‘time out’.  Namely, to have a national conversation about the floating currency, accumulation of debt and the all-important trade deficit.

 

FEEL FREE TO EMAIL ME AT emeinel@fairpoint.net

81 Comments

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81 responses to “CAPTIVE CAPITALIZATION: THE NEW US SYSTEM

  1. RobG

    The sharks are circling this one pirate ship:

    Citigroup stock slides below $4 a share

    A call that CEO Vikram Pandit and Chief Financial Officer Gary Crittenden held Friday morning with senior managers at the bank offered nothing new about a shift in strategy for the company.

    People familiar with the call, who spoke anonymously because the comments during the call were not made public, said that Pandit’s message was similar to that at his town hall meeting with employees on Monday — that Citigroup has adequate capital, and that he supports the universal bank model.

    They like that good ‘ol bank model.

  2. RobG

    And are they really all that different from pirates:

    Kenya: Somali pirates make $150M in a year

    More brazen: “We are advised that in the last 12 months, ransom to the excess of $150 million has been paid to these criminals and that is why they are becoming more and more audacious in their activities,” Kenyan Foreign Minister Moses Wetangula said.

    A drag on the real economy: “Meanwhile, the world’s largest oil tanker company warned that it may divert cargo shipments, which would boost costs up to 40 percent.”

    Government winks it’s eye, pirates use sophisticated strategies: “The Somali pirates have the support of their communities and rogue members of the government. Often dressed in military fatigues, pirates travel in open skiffs with outboard engines, working with larger ships that tow them far out to sea. They use satellite navigational and communications equipment and an intimate knowledge of local waters, clambering aboard commercial vessels with ladders and grappling hooks.”

    Effort to curb behavior (like short selling) ineffective: “In New York, the U.N. Security Council voted unanimously to authorize its sanctions committee to recommend people and entities that would be subject to an asset freeze and travel ban for engaging in or supporting acts that threaten peace in Somalia, for violating a U.N. arms embargo, and for obstructing delivery of humanitarian aid.”

  3. Blunt Force Trauma

    Pretty much what I had stated in my last comment of Elaine’s previous blog entry:

    World Recession Nears as European, Asian Companies Fire Workers (Bloomberg)

    “The world economy slipped closer to recession as companies in Europe and Asia joined their U.S. counterparts in cutting production and jobs, intensifying pressure on central banks to push interest rates to zero.”

    Full article:

    http://www.bloomberg.com/apps/news?pid=20601087&sid=ahpBT.R4vNT0&refer=home

  4. Blunt Force Trauma

    Not wanted, desired or can be purchased due to job loss and tightening of credit.

    GM Adds Week to Shutdown at Four Plants Because of Demand Slump (Bloomberg)

    “General Motors Corp. said it will idle production at four plants for an additional week because of slumping demand.”

    Full article:

    http://www.bloomberg.com/apps/news?pid=20601087&sid=a14YxTA.XFGg&refer=home

  5. Blunt Force Trauma

    No manufacturer is immune, as I have stated many times.

    Toyota Will Cut 3,000 Jobs in Japan as Car Sales Fall (Bloomberg)

    “Toyota Motor Corp., Japan’s biggest carmaker, will cut its domestic temporary workforce by 50 percent as vehicle demand slumps globally.”

    Full article:

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aYTDkEfkwqg4&refer=home

  6. Blunt Force Trauma

    Pelosi Says She Rejects Bankruptcy for Automakers (Bloomberg)

    ” House Speaker Nancy Pelosi rejected bankruptcy as a solution for domestic automakers, saying it would be “digging a hole far too deep.”

    And so is increasing debt by handing out billions you don’t have, Nancy.

    Full article:

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aiJ.1heQowvc&refer=home

  7. Timothy

    Oh tell me Elaine, that Morgan Stanley is going down. My most bitter enemy works there, a truly avaricious, insolent human being. Yet people who met him tell me he is the most charming, chivalrious bachelor. He must have been showing them that mean Salsa routine he learnt using $100000 of his ill gotten gains. There must be thousands of these beautiful on the outside, rotten on the inside individuals.

    People are so phuckking stupid to not see beneath the surface of others.

  8. Blunt Force Trauma

    GM hits lowest price since Depression (CNN Money)

    “Shares of General Motors Corp. plummeted to a low not seen since the days of the Great Depression as hope that the automakers could receive a financial bailout from Congress before the Thanksgiving holiday continued to fade.”

    Full article:

    http://money.cnn.com/2008/11/20/news/companies/gm_shares.ap/index.htm?postversion=2008112011

  9. Blunt Force Trauma

    Honda to close Swindon factory for two months (Guardian UK)

    “Japanese car giant Honda added to the economic gloom today, announcing it is to shut its UK factory in Swindon for two months in February and March next year in response to falling sales.”

    As you can see, it’s a world problem. Throwing money at any of them at this point would see it simply get burned up producing products that are not wanted or cannot be attained due to unemployment and tightening credit.

    Full article:

    http://www.guardian.co.uk/business/2008/nov/21/automotive-recession

  10. Blunt Force Trauma

    Timothy asked:

    “(tell me that) Morgan Stanley is going down. My most bitter enemy works there, a truly avaricious, insolent human being…”

    Well. Not sure where enemy works inside of J(ust) P(irates) Morgan Stanley, but maybe he’s one of these:

    JP Morgan will cut 10% from global investment banking (Financial News)

    http://www.efinancialnews.com/usedition/people/content/3352549010/

  11. Blunt Force Trauma

    Barclays doesn’t like Morgan either, Timothy:

    http://www.iii.co.uk/news/?type=afxnews&articleid=7029669&action=article

  12. Blunt Force Trauma

    Rothschild pays out record bonuses to staff (Times Online – Nov. 19, 2008)

    “Not all investment bankers are having to get by on reduced or no bonuses this year. Rothschild group staff have received record bonuses, it has emerged after the bank reported a 31 per cent improvement in profits before tax to €459 million.”

    Ahh, to be a robber baron.

    Full article:

    http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5192894.ece

  13. Blunt, nothing will turn around with bailout after bailout UNLESS THE WORKERS ARE PUT BACK TO WORK. The only way to turn things around is to institute a public works program to rebuild our trains and switch over to renewable / sustainable forms of energy (i.e. no fossil or bio fuels). And to do that we need to nationalize the auto makers. Which means Nancy doesn’t know what she’s talking about! Bankruptcy a hole too deep? Her stupid bailout idea would put the auto makers in a hole deeper than bankruptcy would, and they would still fail! After bankrputcy, she can nationalize the firms on the cheap. Then get the public works program off to a start and in the end, sell the companies to their workers.

  14. Blunt Force Trauma

    So Many Things to Correct… So Little Time. (Daily Reckoning – Nov. 19, 2008)

    “Dow 5,000…

    10% – 15% unemployment…

    Another 20% off house prices…

    There’s a lot of ruin left to go…”

    Full article:

    http://www.dailyreckoning.com.au/so-many-things-to-correct-so-little-time/2008/11/19/

  15. Blunt Force Trauma

    Ed-M said:

    “Blunt, nothing will turn around with bailout after bailout UNLESS THE WORKERS ARE PUT BACK TO WORK.”

    Yes. I agree. Again, a situation that should have been remedied possibly 20 years ago. But governments and auto execs sat on their hands.

    “The only way to turn things around is to institute a public works program to rebuild our trains and switch over to renewable / sustainable forms of energy (i.e. no fossil or bio fuels).”

    Absolutely, Ed! Electrify the damn thing! Rebuild the passenger rail system! You know who took it down in the first place don’t you? I’m sure you do. For those who are stumped, the initials are G and M. I can think of nothing better to help the economy of North America right now.

    While we’re at it, construct massive wind farms for power. Electricity generation is currently done with fossil fuels and with 70% of the oil that the US uses, daily, being imported; it’s time to get off that addiction. Believe me, Canada is not so innocent either.

    “And to do that we need to nationalize the auto makers.”

    That would require re-tooling of current plants. If THAT is what those pinheads in Washington WERE talking about; hey, I’d say, “why stop at $25B? Give it what it takes!” The jobs from that alone would be astronomical. But again, governments and auto execs did nothing since they were being courted by big oil whores, er, lobbyists.

    “Which means Nancy doesn’t know what she’s talking about! Bankruptcy a hole too deep? Her stupid bailout idea would put the auto makers in a hole deeper than bankruptcy would, and they would still fail!”

    How come you understand it? Simple isn’t it?

    “After bankrputcy, she can nationalize the firms on the cheap. Then get the public works program off to a start and in the end, sell the companies to their workers.”

    Like some airlines have done. Although I’m just leery of the ‘nationalization’ part. That has been done in Canada with disasterous results with airlines, energy and rail. Problem I have with government operating business is that they have no fear of failure. They run it to the point of massive hemorraging where the company sees nothing but red and costs taxpayers silly amounts of money with most of it going to pay CEOs/board members’s salaries and business junkets where hotel bills are 3,000 a night.

  16. Blunt Force Trauma

    Ed-M, all bets are off though if something stupid like this should transpire. Or is this ‘their’ idea to the solution; put people to work making war machines? Gad, I hope not.

    Ron Paul Warns That U.S. Will Support Israeli Attack On Iran (Prison Planet)

    “Texas Congressman Ron Paul has warned that any strike on Iran’s nuclear facilities undertaken by the Israeli air force will take place with the explicit backing of the U.S. government.”

    With money and weapons no doubt.

    Full article:

    http://www.prisonplanet.com/ron-paul-warns-that-us-will-support-israeli-attack-on-iran.html

  17. Blunt Force Trauma

    Originally posted by Rob G. in Elaine’s previous blog entry’s comments section. Needs to be read if you missed it.

    Quantitative easing has begun (Reuters – Nov. 14/08)

    “Quietly, without fanfare, the Federal Reserve has turned on the printing presses. The central bank is flooding the market with enough excess liquidity to refloat the banking system — and hopes to generate an upturn in both economic activity and inflation in the next 12-18 months to prevent the economy falling into a prolonged slump.”

    -snip-

    “The Fed’s focus has now shifted from easing the interest rate to increasing the quantity of money, and the aim of supplying funds is no longer to ease concerns about narrow liquidity but to increase the overall money supply, thereby easing concern about the stability of the banks, while hoping to engineer an eventual upturn in lending, activity and (whisper it quietly) inflation.”

    Full article:

    http://blogs.reuters.com/great-debate/2008/11/14/quantitative-easing-has-begun/

  18. Blunt Force Trauma

    Economic/Market Highlights 11/20 … D-E-L-E-V-E-R-I-N-G !! (No Quarter)

    I think it’s supposed to be DELIVERING.

    “There were major forced liquidations on the parts of hedge funds, asset managers, and insurance companies that went through the markets Thursday. Laszlo Birinyi, a noted market tactician whom I follow quite closely, indicated today that given the market price action that making investment decisions now is “strictly guesswork”.”

    Full article:

    http://www.noquarterusa.net/blog/2008/11/21/economicmarket-highlights-1120-d-e-l-i-v-e-r-i-n-g/

  19. Blunt Force Trauma

    (Perth) Mint suspends orders amid rush to buy bullion (The Australian)

    “With retail and wholesale clients around the world stocking up on the precious metal, the Perth Mint has been forced to suspend orders.”

    Full article:

    http://www.theaustralian.news.com.au/business/story/0,28124,24687337-643,00.html

  20. Blunt Force Trauma

    US seeks 300 billion dlrs from Gulf states: report (Yahoo – AFP)

    “The United States has asked four oil-rich Gulf states for close to 300 billion dollars to help it curb the global financial meltdown, Kuwait’s daily Al-Seyassah reported Thursday.”

    I guess this is to be used by Benny and Hank to buy paper and ink.

    http://news.yahoo.com/s/afp/20081120/bs_afp/financeeconomyusgulf_081120072928;_ylt=As8HYF6PR0TsbvJOoU6Ff0es0NUE

  21. Blunt Force Trauma

    Stumbled on this – off topic.

    Not sure what is worse. The sound of the wretched woman’s voice or the strange background action of turkeys being bled while she banters.

  22. Blunt Force Trauma

    Moving on to Plan B (Information Clearing House)

    Plot Spoiler: There is no ‘Plan B’ suggested in this.

    http://www.informationclearinghouse.info/article21280.htm

  23. Blunt Force Trauma

    President for 60 More Days, Bush Tearing Apart Protection for America’s Wilderness (Truthout – Guardian UK)

    “With barely 60 days to go until Bush hands over to Barack Obama, his White House is working methodically to weaken or reverse an array of regulations that protect America’s wilderness from logging or mining operations, and compel factory farms to clean up dangerous waste.”

    Didn’t I say – to a cinder?

    Full article:

    http://www.truthout.org/112108B

  24. got this from a market watch site courtesy of a Jack RS

    How the US-Bailout Works

    Young Chuck moved to Texas and bought a donkey from a farmer for $100.
    The farmer agreed to deliver the donkey the next day.
    The next day he drove up and said, “Sorry son, but I have some bad news, the donkey died.”

    Chuck: “Well, then just give me my money back.”

    Farmer: “Can’t do that. I went and spent it already.”

    Chuck: “Ok, then, just bring me the dead donkey.”

    Farmer: “What ya gonna do with him?”

    Chuck: “I’m going to raffle him off.”

    Farmer: “You can’t raffle off a dead donkey!”

    Chuck: “Sure I can, watch me! I just won’t tell anybody he’s dead.”

    A month later, the farmer met up with Chuck.
    Farmer: “What happened with that dead donkey?”

    Chuck: “I raffled him off. I sold 500 tickets at two dollars a piece and made a profit of $998.”

    Farmer: “Didn’t anyone complain?”

    Chuck: “Just the guy who won. So I gave him his two dollars back.”

    Chuck now works for Goldman Sachs

  25. Blunt Force Trauma

    Kick GM out of the Dow…now! (CNN Money)

    “General Motors has a market capitalization of less than $2 billion. The stock, which now trades for a little under $3 a share, hit a 70-year low of $1.70 on Thursday morning before recovering a bit.”

    Full article:

    http://money.cnn.com/2008/11/20/markets/thebuzz/index.htm?section=money_autos

  26. Blunt Force Trauma

    CableOrganizer.com, Inc. Outperforms General Motors in Profit for the Fourth Year in a Row (MarketWatch)

    “Industry leading eTailer CableOrganizer.com, among the world’s premier providers of cable, wire and equipment management-related products for use in business and at home, today announced that it made $21.2 billion more in profit than General Motors Corporation (GM) for the nine months ending September 30, 2008.”

    Full article:

    http://www.marketwatch.com/News/Story/Story.aspx?guid=964ad433-0938-494b-9ecb-13d7389cdb1e

  27. Found over at this “doomer” forum: http://www.doomers.us/forum2/index.php/topic,31425.0.html .

    “US Seeks 300 billion dollars from Gulf States: report”

    http://news.yahoo.com/s/afp/20081120/bs_afp/financeeconomyusgulf_081120072928

    The article, posted by Agence France Presse, states that the US was looking for “financial aid.”

    If this is true, we are so screwed. Cause it means we are BANKRUPT and Bush & Co. KNOWS IT. 😦 😡

  28. Blunt Force Trauma

    Not talking bailouts anymore, Mr. Hopey Changey? This is more sensible and it has to be a sustainable plan.

    Obama Team Said to Explore `Prepack’ Auto Bankruptcy (Bloomberg)

    “President-Elect Barack Obama’s transition team is exploring a swift, prepackaged bankruptcy for automakers as a possible solution to the industry’s financial crisis, according to a person familiar with the matter.”

    -snip-

    “In a prepackaged bankruptcy, an automaker would go into court with financing in hand after reaching agreement with lenders, workers and suppliers on what each would give up and on the business plan to be followed. The process might take six to 12 months, compared with two to five years if the automakers followed an ordinary Chapter 11 proceeding and worked out agreements under a judge’s supervision, Bane said.”

    Full article:

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aRfqFMhlj5lk&refer=worldwide

  29. Blunt Force Trauma

    Big read.

    War, Waste and Moneylenders (Survival Acres)

    “It is becoming increasingly evident that these compounding and interlinking threats to global stability may significantly deter the continuance of civilization. While many great minds of the past have clung to the notion of directing our efforts towards salvaging civilization, there is now a substantial movement which identifies civilization – especially industrial civilization – as the culprit in our long list of both social and ecological calamities, and offers solutions for humankind to survive and prosper beyond the traditions, schooling, institutions, governance, infrastructure and chaotic elements inherent to civilization.”

    Full article:

    http://survivalacres.com/wordpress/?p=1574

  30. Blunt Force Trauma

    American Hypocrisy in Auto Rescue Spurs Me-Too Trade Ire (Bloomberg)

    “A U.S.-triggered spate of global carmaker-bailout proposals may spark trade disputes over whether the Americans are unfairly trying to subsidize their industry or just making up for state aid foreign rivals already enjoy.

    As the U.S. considers a lifeline for its automakers, officials in Europe, Canada and Asia are considering their own aid packages — even as the European Union threatens to lodge a complaint against any U.S. bailout to protect manufacturers from Renault SA in France to Fiat SpA in Italy.”

    This is what happens when the US automakers have interests in foreign automakers. Turns into one big cake throwing fight.

    Full article:

    http://www.bloomberg.com/apps/news?pid=20601109&sid=az43Y55hmZhY&refer=home

  31. Blunt Force Trauma

    Treasuries Surge Triggers Squeeze Concern in Futures Market (Bloomberg)

    “Surging demand for the safety of U.S. Treasuries is triggering concern among futures traders whether they’ll be able to meet commitments to deliver securities when contracts expire next month.”

    I wonder if this will involve gold on the COMEX?

    Full article:

    http://www.bloomberg.com/apps/news?pid=20601087&sid=a8koj6NxRrOk&refer=home

  32. Blunt Force Trauma

    Breaking: Largest Military Recall Since 1941 Possibly In Progress Right Now (Right Soup)

    “Right Soup is hearing that a General Mobilization of ALL former military officers is underway. We caution that the talk we are hearing is conflicting, and that no concrete evidence has been uncovered yet. Still, reports from some who would be affected say that letters began going out on November 17th to all Non Commissioned Officers to recall them to service. Letters to Warrant Officers and Sergeants will go out this coming week. Reportedly some retired military have already gotten their letters. Right Soup is actively searching for scans of said letters, and for confirmation of this news.”

    I suppose we’ll have to stay tuned as to what it all means.

    Full article:

    http://rightsoup.com/breaking-largest-military-recall-since-1941-possibly-in-progress-right-now/

  33. Blunt Force Trauma

    General Motors to Invest $1 Billion in Brazil Operations — Money to Come from U.S. Rescue Program (Latin American Herald Tribune)

    “According to the president of GM Brazil-Mercosur, Jaime Ardila, the funding will come from the package of financial aid that the manufacturer will receive from the U.S. government and will be used to “complete the renovation of the line of products up to 2012.”

    Nothing very “American” about this, I’d say? Investing in another countries workforce with YOUR money.

    Full article:

    http://www.laht.com/article.asp?ArticleId=320909&CategoryId=12396

  34. Blunt Force Trauma

    US STOCKS-Bargain hunters lift market, but Citi sinks (Reuters)

    “Citigroup shares tumbled about 16 percent to $3.94 following news reports that the company is considering selling pieces of its business or the entire company outright.”

    DOW is currently up 24 points to 7,576.

    Citi shares are currently down to $3.73

    Full article:

    http://www.reuters.com/article/usMktRpt/idUSN2133723120081121

  35. Blunt Force Trauma

    Well, here’s to the future. Have a good weekend.

    National Intelligence Council Report: Sun Setting on The American Century (Common Dreams – Times Online)

    “The next two decades will see a world living with the daily threat of nuclear war, environmental catastrophe and the decline of America as the dominant global power, according to a frighteningly bleak assessment by the US intelligence community.”

    Full article:

    http://www.commondreams.org/headline/2008/11/21

  36. Pingback: CAPTIVE CAPITALIZATION: THE NEW US SYSTEM « Culture of Life News

  37. ziff house – great joke.

    Incidently, I have some land in DC that I’ll sell ya….:grin: 🙂 💡 :MrGreen:

  38. .

    :MrGreen:

    Thinks the workers should own the factories that are owned by others who go bankrupt. The workers could convert the factories into something worthwhile. Jobs. You know. Jobs. Does anyone care about employment in the local community?

    Peace,
    Ken

  39. :mrgreen:

    sorry about that but I quess these smiley-face things are case-sensitive.

    Later,
    Ken

  40. Better yet, lets raffle DC. A big-ole fun time lottery.

    What ya think? What should the price be?

    😕

  41. Bear of Little Brain

    OMG. Bloomberg just reported that “Mouth and Hands” Geithner is being nominated for Treasury Secretary. How the gods mock me. 🙄

  42. Blunt Force Trauma

    Bear said:

    “OMG. Bloomberg just reported that “Mouth and Hands” Geithner is being nominated for Treasury Secretary. How the gods mock me.”

    And the DOW shot up to 213 points to 7,765 on that news.

  43. nah

    IF YOUR GUNNA’ MAKE UH’ TEACUP BETTER HAVE SOME FUKIN’ TEA

    http://www.cahrecords.com

    vote your paycheck

  44. Blunt Force Trauma

    U.S. Stocks Rally on Report Geithner to Be Treasury Secretary (Bloomberg)

    “U.S. stocks rose and the Standard & Poor’s 500 Index rebounded from an 11-year low as NBC News reported President-elect Barack Obama will nominate New York Federal Reserve Bank chief Timothy Geithner to head the Treasury.”

    Full article:

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aYTVvFjByOfc&refer=home

    The Man Who Saved (or Got Suckered by) Wall Street (Portfolio – June 2008)

    http://www.portfolio.com/executives/features/2008/05/12/New-York-Fed-Chief-Tim-Geithner

    Timothy F. Geithner (NYT – Nov. 7, 2008)

    http://www.nytimes.com/2008/11/07/us/politics/07geithner.html

  45. Bear of Little Brain

    Streuth. Geithner nomination is already on Wiki. A few salient names from his background:
    Kissinger, Rubin, Summers, CFR, IMF, Group of Thirty. Wot, no Goldman Sachs? Well, that’s change you can believe in!
    He’s also pretty well up on Asian matters. (Graduated in Government and Asian Studies; high school education in Bangkok). mostly ‘cos of his dad:

    What about his father, Peter F. Geithner?
    “Peter F. Geithner is an advisor to the Asia Center at Harvard University and a consultant to the Asia Pacific Philanthropy Consortium, Rockefeller Foundation, Sasakawa Peace Foundation, and other organizations. He serves on the boards of the National Committee on United States-China Relations, the China Center for Economic Research (Peking University), the Center for the Advanced Study of India (University of Pennsylvania), lemente (Holdings) Asia, Inc., and the Institute of Current World Affairs.”
    More at
    http://www.sourcewatch.org/index.php?title=Peter_F._Geithner
    Wiki also throws up a link to CFR membership in 2004.

    Expect Hank’s cosy relationship with China to continue.

  46. Blunt Force Trauma

    DOW is now up 366 points to 7919 strictly on the news that Owe-bama has appointed another Hankster.

  47. drkrbyluv

    Elaine, you hit the mark squarely when you said: “The US Treasury is now the sole capitalization entity in our dead banking system.”

    Of course, the treasury has no money either as evidenced by poor sales at most recent US T-Bill auction (sold only around around 10% of goal). We are required to provide a continuous stream of debt/collateral – beyond this generations ability to ever repay, in order to buy more time for the NWO banking bastards. They need time to move all liability from their books to ours. Then, they can buy everything we accumulated on the cheap and enslave us in debt.

    The beast has raised it’s grotesque body out of the murky water and onto dry land – where it is now preying on the people in the open. I hope people will begin to wake up soon to see and slay the beast!

    I’m glad you mentioned END the FED – 11:22:08 and hope you take care of yourself while participating in New York. Not that it’s my business, but I hope you are not going alone. As you probably already know, you should always be with others when protesting. And, there are many friendly “meet-up” groups in New York – I can get URLs if you want.

    I’m heading for Washington – if I can arrange to hear Adam Kokesh speak. If not, I will most likely join the Pittsburgh group to protest at our local Fed office. I kinda hate missing the parties in Washington that will take place afterward. I’ve always believed that activism and dissent should be fun!

    Wow, gold went up $43 dollars today! At one point it went over $800. I better go celebrate!

  48. drkrbyluv

    Blunt Force Trauma said – “DOW is now up 366 points to 7919 strictly on the news that Owe-bama has appointed another Hankster.”

    You don’t think the PPT had anything to do with a Friday rally?

  49. Bear of Little Brain

    Citigroup bounced off £3.05, having had a weekly high of about $9.8 on Monday. Closed around $3.7. Panic over, I guess. 😕
    Gold is flirting with $800. In real money, that’s about 537 pounds sterling (yes, I jest). I will enjoy it while I can. Could be about to break above the previous high in GBP. It’s forming one of those nice, rounded bottoms that have so much promise, although I’m more of a leg man, myself. 😉

  50. Bear of Little Brain

    drkrbyluv:
    I thought the gold surge would cheer you up.

    Re: protests. I probably don’t need to mention this but, if you are in a group, make sure to police yourselves. There are too many instances of agents provocateurs planted by the authorities in order to justify their use of force. Make sure you have some VERY able bodied men to restrain them before the police can act, but too much ‘restraint’ will cause them to come to their buddy’s aid. Pepper spray or those handy personal Tazers, maybe:
    http://www.personalarms.com/
    Oh, I seem to remember that these trouble makers often forget not to wear their police-issue footwear. There again, police don’t usually blend in that well, whatever they’re wearing.
    Take care.

  51. emsnews

    I have a tremendously long history of dealing in protests. Heh. A lot of experience, much more than the average person. I will be there as a reporter.

    About Pittsburgh, Drkrbyluv, you are a good photographer. If you could, please take some pictures and email them to me. I will be writing about all this stuff on Sunday. Saturday, there will be little time for posting.

    I will be driving in the morning and the working until evening and then driving back home unless I sleep over at the kid’s house.

    Blunt Force: you got to watch out. Up until today, you complained that Obama didn’t do positive things for the DOW. So he did something that pleased them and the DOW shot up and you didn’t retract your former complaints.

    BEWARE OF FALLING INTO THE TRAP OF SAYING THINGS FOR THE HELL OF IT. Rule #1 of commenting on running events. You should have praised Obama for making markets shoot upwards.

    Or better still, stop the whining about him affecting the markets. Thanks in advance.

  52. Dutch

    GEITHNER! You gotta be shitting me! This was the guy that gave AIG 15 billion then resigned! with the blessing of the current NY governor! He was the moron that ran his mouth at the senate hearings when Bernanke was so scared he was shitting his pants! I hereby deem him the STRAW. the straw will suck you dry! End the Fed? Puhleeze! this is good music! The fed will disappear after the bail out bleedings! Back to the Owebama tax cuts- tax cuts for the married! Let me translate that from newspeak, (gayrights!) Sure bail them out too! HAHHAHA! (Even democrats wanna tax cut) (wink). Elaine I dont understand why you despise Tricky Dick so much, curious about your assessment of LBJ.

  53. Dutch

    HAHAHHA This really isnt fair……

    http://underneaththeirrobes.blogs.com/main/2005/08/more_grist_for_.html

    Elaine, I think Bush has done more for gay rights then Owebama! (Hang in there honey I will help you through this.) Just dont go “Republican on me!”

  54. Dutch

    One more thing about the “Straw” . It was him and Bernanke along with Cox and Jamie Dimon that smoozed Congress over during the Bear Stearns hearings.

  55. Dutch

    The whole world is in revolt. There will soon be only five kings left – the kings of England, Diamonds, Hearts, Spades and Clubs.

    – King Farouk

  56. Gary

    Remember the Movie, “Brazil”

    Where “Central Services” ran the world ?

    Ha ha. It looks like by the time things shake out here, Wal-Mart will do all
    the retailing, Goddam Sacks will do all the financing, and GE all the
    manufacturing ( on an overseas barge,no doubt)

    Lets hear it for most Glorious Capitalism, comrades

    I gotta go smoke a Blunt now…….

  57. Bear of Little Brain

    Oh, to cap it off, my news service reports Hellary is in for Secretary of State.

    Round and round…

    http://uk.youtube.com/watch?v=PAcnDevkTnc

  58. Dutch

    ???????????????????????????????

  59. emsnews

    Did I ever, ever say that Obama was a revolutionary? Or that he would change the system?

    Geeze. Somebody here isn’t reading me very closely. He is part of the ‘establishment’. THEY ALL ARE EXCEPT A VERY FEW. But again, unlike Bush and his gang, he is not totally insane. On the other hand, people can’t tell the difference between regular ruling elites and total incompetent ruling elites, this isn’t my problem.

    I wanted Kucinich as President. Didn’t get it. But I certainly did NOT want McCain and Palin in that office. We get choices. Not all of them are what we want. And anyone who thought the Clintons were totally out of power; that is crazy. Of course they are still in power.

    And did I ever say that anyone in the DLC/DNC group were going to negotiate sanely concerning free trade? NO! I am the one who has pointed out that the Clintons are wholly owned by foreign powers! But I correctly pointed out that this started with Reagan. He was the camel who put his nose under that particular tent. We have not ‘owned’ a single President since Reagan ran off to his Japanese masters for bribery payments.

    We got to grow up and be adult about all this. Hanging out, shrieking over spilt milk isn’t going to change anything. Just like clinging to the notion of ‘bombs in the WTC’ business is isolating and futile.

    The real problem here is how the US got so twisted, we ended up being ruled by people who don’t give a hoot about our nation’s survival. And changing course means understanding how we got here and why we are here.

    But no one listens to me! Who am I, after all? Do you think anyone would ask me to negotiate for us? That is impossible. For all our systems are now set in such a way that the people running them will use everything in their considerable power to stop anyone from changing our direction. The entire planet is dead set against us changing course!

  60. drkrbyluv

    Elaine – I’ve always thought you a person of experience and savvy in demonstrations and public dissent.
    ________________________________________

    Bear of Little Brain said – ” I probably don’t need to mention this but…

    Thanks Bear, your comments, especially about the shoes, are noted. One thing I can say for sure is that the Washington DC police where I will be at, are mostly friendly and restrained. I guess they get used to crazies and welcome polite and respective protesters – I dunno.

    Where Elaine will be, New York, the police are a different matter. The New York City police are respected as a soft law (they look the other way for little things that don’t matter) but quickly morph into an aggressive paramilitary unit. Such is their turf.

  61. emsnews

    Looking Glass news doesn’t cite a single source. That means the article is pure speculation, Plovering.

    There is a difference between interpreting incoming information and scaremongering. Scaremongering is when someone launches a rumor without any factual basis and they do this hoping you will be frightened.

    There are many scary things at work here. And yes, many people at the top want to control the internet. And we have to be alert about all this. I know that powerful people in DC would love to strangle the internet. This is why we must pressure them about touching the internet!

    In Europe, the internet is being censored just like in China. The US has the Constitution which is a great protector of free speech. We have to hammer away at that concept and how valuable it is. Just like hammering away at all the other topics.

    I have been on the net now since it first became public. Before then, in fact, via NASA’s terminals. Rumors sprouted there back in the 1980’s. Some of them totally false! Imagine that.

    The difference today is, there are more rumors and more people reading them. I am against censorship even of crazy rumors. Much less, real analysis and debate of pressing issues.

    But don’t ever confuse rumors with news analysis. They are quite different. This is why I link nearly always to only mainstream news services. Or seek out raw information or go to the sources, if possible.

    There are many people to hang out exclusively at certain internet sites that get nearly all of their information via the rumor mills of various political or social stripes. Be wary about them! They like to pull people more and more into ‘alternate universes’.

    It is the nature of the internet. The mainstream media was set up to do this, too. We call this ‘propaganda’. But ‘fringe’ media do this, too! Propaganda isn’t just ruling elites information output. Any group of people can run propaganda. Including revolutionaries, reactionaries, religious groups, etc.

  62. emsnews

    About the NYC cops: if you don’t interfere with traffic, they are pretty easy going except when our elites demand they clear the streets. Then, they are quite nasty about it all. Getting a parade permit is very difficult. I have done this in the past. Takes quite a bit of negotiation.

    If your cause has popular support, the mayor and city council will give it easily. If the cause is unpopular, they get very difficult about the whole thing. The more ‘left’ you are, the nastier they are, in general. This is true across the country.

    The rightwing has been totally spoiled because of this. They have no idea how they benefit from this protection. For traditionally, the cops tend to be very right wing. So this bias shows very strongly in their behavior.

  63. igneous

    I just want to say that although I can’t make it to the protests today (I don’t live in America) I completely support them and wish evey one taking part the best of luck and success.

    Many western nations (and asian) are suffering or soon will be from the shadowy monetary manipulations of bankers and the actions of hedge fund con artists. Take heart that you have the solidarity of many people through out the world who because of writers with integrity like Elaine are educating themselves and understand the mess that the financial system is in.

    Its really great to see something positive happen. I hope it is start of something big.

  64. emsnews

    All movements move forwards, one step at a time. Right now, people pray that US leaders would make the right moves. They won’t and can’t.

    Only under popular pressure, do they move in our direction. this is why education, organization and having lucid goals matter.

  65. milo

    and not a one thought that 30 bucks a day to commute from the sub burbs into the city to work was extravagant when those raiis had received bailouts before?

  66. Bear of Little Brain

    Elaine:
    “Just like clinging to the notion of ‘bombs in the WTC’ business is isolating and futile.”
    The ‘notion’ is that there were no bombs. You are the one doing the clinging. Sorry.
    There is also a certain irony concerning isolation and futility, given your own, later, statement: “But no one listens to me! Who am I, after all?”
    I watched all but the first few minutes of the whole televised event that day and have spent too many hours trying to see how the 911 Truthers are wrong. The day that an independent enquiry by engineers, metallurgists, and physicists explain the WTC7 collapse, I will change my mind (my early background and first degree were in engineering). Until then I will hold Silverstein, Cheney, Rumsfeld and their Neo-con ilk (“We need a new Pearl Harbor”) totally responsible. I look forward to the day that I see them all hanged. May they all rot in Hell.
    Every time I see an instance of 911 denial, I will stand up for those murdered, until there is a just and open enquiry. Or until the day I die.
    Sorry to get so intense. No disrespect intended.
    Luv ya.

  67. Bear of Little Brain

    For “explain”, read “explains”. Bring back the Preview! 🙂

  68. Tell

    “Today Lloyds TSB shareholders voted to accept a taxpayer subsidy while also voting to buy out one of their biggest rivals. People must be wondering why a bank that can afford to be buying other banks needs a state subsidy. It is like asking for housing benefit so that you can afford to but a second home.”…

    http://tinyurl.com/5px7nv

  69. Tell

    “Financial Meltdown: The Greatest Transfer of Wealth in History”…

    http://tinyurl.com/5nshnl

  70. emsnews

    At the end of the Great Depression, in the US, the unions were much, much stronger. And taxes on the rich were higher. So the rich did NOT get richer during the Great Depression compared to before it.

    Indeed, so many mansions were left empty, they became known as ‘white elephants’ and people struggled to find some sort of use for them. One thing was cheaper: servants.

    During the Great Depression, anyone with even a little money could hire someone to do the babysitting and housework. But even this became less common after WWII.

    This is because Roosevelt and the Democrats passed pro-labor laws. This brought great prosperity. I don’t understand why people can’t see this obvious thing. Of course, all of this labor stuff would have been worthless EXCEPT THE US ALSO PASSED STRONG PROTECTION LAWS. Which everyone in power today condemns!

    About the ‘bombs’ business: it is utterly immaterial since no one is very serious about that. If you believe this were true, why sit around, doing nearly nothing?

    The notion is so ridiculous, the ruling elites use the 9/11 truthers as a club to hit ANYONE who disputes ANYTHING these days! It is obviously so out of the framework of reality.

    Remember: I have seen a number of buildings demolished in the past. The NOISE of these bombs is very, very loud and is not a ‘boom’ sound but a ‘crack’ sound more like guns going off. And they have very, very bright, nearly blinding flashes. And the buildings disintegrate from the bottom to the top, not the reverse.

    The WTC collapse was unique and very strange. We never saw the like before. But then, there was and still is, no buildings on earth like the WTC which used unique architecture that was obviously a failure.

  71. emsnews

    When I come back online tomorrow, I will write a big piece about the hundreds of misconceptions of the Great Depression. The chief being the lies about the Smoot-Hartley Act. Those are legion and utterly false and totally stupid as we can obviously see today.

    And I expect virtually no one to believe a word I say but again: my proof is reality. I look at what is going on today and how it has evolved and why it has evolved.

  72. emsnews

    Tell, isn’t that funny news? It, again, illustrates the difference between today’s response to a depression and the thirties response. In the thirties, the great fear was everyone would revolt and the communists would take over.

    Now, there is no such fear so all the loot is being spent on propping up the architects of this depression, the banks.

  73. Rowan

    It`s beginning to look as if “bomb bomb, bomb bomb Iran” time is at hand, now that Clinton is back.
    If the building of FEMA prisons everywhere is a fact, and not simply a “conspiracy theorist`s fantasy”, then they must be afraid of something this time around.

  74. Bear of Little Brain

    “The WTC collapse was unique and very strange. We never saw the like before. But then, there was and still is, no buildings on earth like the WTC which used unique architecture that was obviously a failure.”

    Let’s keep focused on WTC7 – seven – which was not an abnormally tall building, nor of unusual construction. Here is a Dutch demolition expert being shown the WTC7 collapse, but unaware that it was part of the 9/11 event:
    http://uk.youtube.com/watch?v=y2E65WTxd1U

    “Remember: I have seen a number of buildings demolished in the past. The NOISE of these bombs is very, very loud and is not a ‘boom’ sound but a ‘crack’ sound more like guns going off. And they have very, very bright, nearly blinding flashes. And the buildings disintegrate from the bottom to the top, not the reverse.”

    You are correct: except that there are ‘bombs’ in the basement, to blow out the structure at the base; the sharp reports and flashes are the cutting charges on the steelwork running up the building. Here’s a good one:
    http://uk.youtube.com/watch?v=8U4erFzhC-U
    But that does not mean that WTC1 and 2 were not demolished, only that the demolition was not perfectly executed. Hardly surprising, given the magnitude of the crime being committed.

    Until building 7 is explained, you cannot, logically, draw any conclusions about 1 and 2.

    I see no reason to discuss any other points around this until then. It serves no purpose. Except:
    As to why I do nothing about it; we have our own problems and an ocean separates us. We had the 7/7 London Underground bombings (under equally suspicious circumstances, incidentally). Now the UK government wants ID cards; anyone can be arrested under anti-terrorism legislation (even Icelandic banks can have their assets seized this way, it is so wide ranging); the government pushes for ever-longer periods of detention prior to being charged with an offence; surveillance is widespread. I remember the IRA bombing campaign in England. None of this was deemed necessary then, even after the Brighton bombing of the Conservative Party in Maggie’s day; in fact, the attitude was that the terrorists would not deprive us of our liberties. How times change.

    Sorry, Elaine, irresistible force meets immovable object on this one. Irresistible: that must be you. Object: me. 😉

    Boy, I do wish we could all just agree to differ on this and avoid the subject. There are plenty of other sites for 9/11 but we just keep coming back to it. Ho, hum. 🙄

    Take care

  75. Tell

    emsnews

    I think things are FAR worse then just about financial matters. We are on our way to total enslavement of the human race thanks to technology. The elite now have what they have sought for centuries…Total control in ALL ways and the vast majority of the people don`t even know it. When they do it will be FAR too late…it is I fear too late now.

  76. Conrad

    Now the fear is that the communists have already taken over.

    Regarding 9/11, the official version doesn’t hold up too well in the cold light of day. “They hate us for our freedom”. “No one could have predicted this”. And then there is the invasion of Iraq which we know was planned since before Bush took office. And a hundred other things that Just. Don’t. Add. Up.

    For example, what happened to WTC 7 again?

    A little critical thinking seems to indicate that the “coincidence theorists” are more under the influence than the “conspiracy theorists”, even though the actual facts may be complicated and possibly obfuscated by a variety of factors.

    But here’s the thing; anyone that suggests that the investigation needs to continue is heaped with ridicule, scorn, mockery. I am sure George Orwell is rolling over in his grave knowing that the word “truther” has entered the political lexicon as a pejorative. Ignorance is strength. Slavery is freedom. War is peace. (“Keep in mind when we talk about war we actually talking about peace”, a direct quote from GW Bush! “It is unacceptable to think”. That’s another).

    Also, according to the Constitution it is illegal for the police to “clear the streets” just because the “ruling elites” wish it. That’s kinda’ the whole point of having a Constitution more or less, along with only Congress being empowered to coin money and declare war, etc.

    We supposedly have “freedom of the press” but why ban books if nobody can read beyond a sixth grade level, which every print man knows is the official standard in the propaganda news biz?

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