Monday, November 10, 2008

U.S. Economy - I Smell A Rat

The Cars - Dangerous Type


What in the hell is going on?

Quite obviously I have stepped into the twilight zone.

Suddenly, or so it seems, the entire world economy is tittering on the brink of meltdown.

And while I have been screaming for years about how the Bush Economy is an economy based upon fraud - doesn't it just seem odd? That I was right - well, that is, that those I've chosen to believe were right?

Damn it folks what in the hell is going on?

Let's see how this whole scam was operated.

First comes - Deregulation - which means that the people who are supposed to keep this from happening are removed, or corrupted, or actually just don't care. The foxes are put in charge of the hen houses.

Deregulation - which floats the economy far higher than it should have since it was based upon a mountain of bad (unregulated debt).

Then as the Bush Clown and his merry band of thieves leave office the house of cards comes crashing down.

And everything is hitting the dirt.

We are in effect being asked to bail out nearly every major sector of the U.S. economy - except big oil, and big pharma - which are perfectly fine since they've been allowed to ream out the entire population for eight long years.

Is anyone going to jail over this?

It's as if all those millionaires and billionaires who profited off of this did so in fact with tax payer money - just in a delayed fashion.

These ultra well paid CEOs, and their henchmen who ran their companies into the ground, who would claim to be Republicans and Conservatives and Freemarketers, and Capitalist are in fact stealing from the U.S. Taxpayer like no other group of scum in the history of this nation.

And no one is talking about impeachment, or about anyone being rounded up and tarred and feathered, or lynched? Or stuck in some jail cell to rot. No one is talking about this at all.

Instead many of the main culprits will find themselves hired as consultants to help in the "bail out".

It's just really really odd.

And while it thankfully has led to a new administration it speaks loudly of why it is that people like GWB go into public office in the first place.

People who hate government go into it for the profit, not the service. They go into government to ruin government and to sac the treasury, and steal from the people.

The Bail Out List - So Far (From CNN) Folks This is CRAZY!!!!!!!


The government has taken these steps to aid financial institutions.

Term-auction facility: $1.4 trillion in loans to banks so far in exchange for otherwise unwanted collateral. The Fed increased its monthly auction limit to $300 billion in October, up from $20 billion when the Fed began the program.

Dollar swap lines: Unlimited dollars to 13 foreign central banks to provide liquidity to foreign financial institutions. The Fed lifted its cap after raising it to $620 billion in October from $24 billion in December.

Bear Stearns: $29 billion in a special lending facility to guarantee potential losses on its portfolio. With the lending facility, JPMorgan was able to step in to save Bear from bankruptcy.

Lending to banks: $77 billion lent on average every day to investment banks, after facility opened to non-commercial banks for first time in March.

Cash injections: $250 billion to banks in exchange for equity stake in the financial institutions in the form of senior preferred shares.

Mortgage-backed securities purchases: Up to $450 billion allotted to purchase troubled assets from banks.

Fed rate cuts: Down to 1% in October 2008, from 5.25% in September 2007.


Consumers are benefiting from the government's actions in recent months.

Stimulus checks: $100 billion in stimulus checks made their way to 140 million tax filers to boost consumer spending and help grow the economy.

Unemployment benefits: $8 billion toward an expansion of unemployment benefits, to 39 weeks from 26 weeks.

Bank takeovers: $11.4 billion drawn down so far from the FDIC's deposit insurance fund after 19 bank failures in 2008.

Rehab foreclosed homes: $4 billion to states and municipalities in assistance to buy up and rehabilitate foreclosed properties.

Student loan guarantees: $9 billion so far in government purchases of student loans from private lenders. Higher borrowing costs made student loans unprofitable for a number of lenders, many of whom stopped issuing the loans.

Money-market guarantees: $50 billion in insurance for money-market funds. The Fed then began to lend an unlimited amount of money to finance banks' purchases of debt from money-market funds. The Fed then agreed to purchase up to $69 billion in money-market debt directly. In October, the Fed said it would loan up to $600 billion directly to money-market funds.

Housing rescue: $300 billion approved for insurance of new 30-year, fixed-rate mortgages for at-risk borrowers. The bill includes $16 billion in tax credits for first-time home buyers. But lenders have been slow to sign on.

Deposit insurance: $250,000 in insurance for interest-bearing accounts, up from $100,000. The FDIC also issued unlimited guarantees on non-interest- bearing accounts and newly issued unsecured bank debt.


Uncle Sam has intervened to help companies in the following ways.

Business stimulus: $68 billion in tax breaks to corporations to help loosen the stranglehold on businesses trying to finance daily operating expenses.

Fannie Mae, Freddie Mac: $200 billion to bail out the mortgage finance giants. Federal officials assumed control of the firms and the $5 trillion in home loans they back.

AIG: $152 billion bailout, including initial $85 billion through a direct loan and a $38 billion lending facility. On Nov. 10, new deal announced that includes a direct investment through preferred shares, easier terms on a $60 billion loan, and new facilities meant to take on the companies exposure to credit-default swaps.

Automakers: $25 billion in low-interest loans to speed the industry's transition to more fuel-efficient vehicles.

Commercial paper facility: $243 billion in corporate debt purchased so far by the Fed since its so-called Commercial Paper Funding Facility openned.



rickmonday said...

You would be wise to take off your partisan blinders. Many, many, many dems were involved in this fiasco including Barney Frank whose boyfriend was a Fannie Mae executive. Frank went out of his way often to defend Fannie without warrant.

It's true that key Democrats opposed the Federal Housing Enterprise Regulatory Reform Act of 2005, which would have established a single, independent regulatory body with jurisdiction over Fannie and Freddie – a move that the Government Accountability Office had recommended in a 2004 report. Current House Banking Committee chairman Rep. Barney Frank of Massachusetts opposed legislation to reorganize oversight in 2000 (when Clinton was still president), 2003 and 2004, saying of the 2000 legislation that concern about Fannie and Freddie was "overblown." Just last summer, Senate Banking Committee chairman Chris Dodd called a Bush proposal for an independent agency to regulate the two entities "ill-advised."

Now we find out that Rahm Emanual was on the board of Freddie when this whole scandal was brewing.

I am not giving the GOP a pass on this but to solely point blame on the GOP is wrong.

JeromeProphet said...

Thank you Rick Monday. It was Barney Frank's homosexual lover's fault.

Check out my most recent post which I dedicate to you. It's the one with the graph.

All of the power, and none of the responsibility. That's an approach which the American people have clearly rejected, and I believe we won't see it as the Modus Operandi in the Obama Administration.

email jp






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