How Corrupt Empires Conceal Theft

May 1, 2008 at 3:50 pm | Posted in Political | Leave a comment

Watch the door on your way outApril 15 – Financial Times (Aline van Duyn): “The US government’s need to provide financial backing to the state-sponsored mortgage financiers that dominate the US housing market could pose a risk to the country’s triple-A credit rating, Standard & Poor’s, the credit rating agency, said… In the event of a deep and prolonged US recession, S&P said the potential costs of propping up government-sponsored enterprises like Fannie Mae and Freddie Mac, which have implicit government backing, could cost the US government up to 10% of GDP. The costs of supporting broker-dealers like Bear Stearns in a dire economic situation would be much lower, at below 3% of GDP, S&P said. ‘The size of GSEs, coupled with their current level of common equity, could create a material fiscal burden to the government that would lead to downward pressure on its rating,’ the S&P report said…”

What ever would the People of the United States do without such “sound” financial advice coming from the mouthpiece of Europe’s deranged aristocracy? Why it would only cost 3% of GDP to support the friends of nation-wrecking oligarchs doing business here in the colonies as broker-dealers! One can only imagine how much more misery can be perpetrated at such a savings!


Why Jamie Dimon Should Head the CFTC

April 29, 2008 at 11:52 am | Posted in Financial | Leave a comment
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Where\'s all this money coming from?April 21 – Financial Times (Javier Blas and Joanna Chung): “Speculators such as hedge funds or pension funds are not responsible for pushing agricultural commodities’ prices, including wheat and rice… The US Commodity Futures Trading Commission is meeting farmers and traders tomorrow to discuss the jump in agriculture commodities’ prices amid criticism from US politicians and farming associations that speculators are behind the increase. It will say prices have been driven by robust demand, weather-related supply disruptions, the lowest inventories in 30 years, government trade restrictions and the impact of the weakening US dollar, officials said.”

If you ever heard JP Morgan/Chase CEO Jamie Dimon speak about circumstances surrounding the inflation of the sub-prime mortgage bubble prior to its bursting last year, you know the man is not a very good liar.

Speaking of that inflation… Lo! Look at the money-like securities created more rapidly than maggots in a dung heap. And look at all the global connections to this, including sovereign wealth funds.

Now, speaking of maggots in a dung heap … look at the CFTC.

Those citing increased demand as responsible for the hyper-inflation of commodities prices typically do so without raising the most fundamental question of all:

Where is the money behind this demand coming from?

If the truth you seek, then by all means ask neither Wall Street nor their “regulators.”

How Wall Street Insults an American’s Intelligence

April 22, 2008 at 2:56 pm | Posted in Financial | Leave a comment
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April 18 – Bloomberg (Lars Paulsson): “A shortage of electricity generation that shows no sign of abating is underpinning gains in global commodity prices, according to analysts at Goldman Sachs… A lack of infrastructure in South Africa, Latin America, China and Australia has led to the disruption of feedstock supplies or halted power generation… ‘One of the key themes that seems to pervade the entire commodities complex is the significant shortage of power generation throughout the world,’ they said.”

Not one word about “the greatest flood of liquidity since Noah!” (Spoken a few years back by Goldman’s very own Robert Hormats)

Money makes the world go round. “Money,” leverage and exclusive control over the arrangement alone are responsible for commodity prices being bid up such as we are seeing. There’s NO WAY electricity shortages could be having THIS impact.

This report from Goldman Sachs seems nothing more than a pathetic attempt at CYA … demonstrating once again how these Wall Street firms who have profited immensely in perpetuating this mess simply are incapable of self-regulation.

Dr. Doom Lectures “Henry Potter” Paulson

April 21, 2008 at 4:46 pm | Posted in Financial | Leave a comment

Starring in \"It\'s a Wonderful Knife\"April 14 – Financial Times (Aline van Duyn): “Henry Kaufman, the distinguished Wall Street economist, has added his voice to the debate about the Federal Reserve’s role in the credit crisis… ‘Certainly the Federal Reserve should shoulder a substantial part of this responsibility. . . it allowed the expansion of credit in huge magnitudes,” Mr Kaufman said. ‘Besides its monetary policy approach, [the Fed] really indicated very clearly that it was performing its role as a supervisor . . . in a minute fashion, not in an encompassing fashion. Monetary policy had a high priority, supervision and regulation within the Fed had a smaller priority.”

Not the kind of pronouncement that makes many friends in the circle of nation wreckers, huh Mr. Paulson.

The Empire Pimps Back

April 20, 2008 at 9:23 am | Posted in Political | 1 Comment
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April 15 – Financial Times (Krishna Guha): “The credit crisis represents nothing less than a loss of confidence in the financial system, Federal Reserve governor Kevin Warsh said yesterday, warning that the healing process ‘is unlikely to be swift or smooth’. ‘Market participants now seem to be questioning the financial architecture itself,’ he said. The fragility in short-term credit markets was ‘a manifestation of that loss of confidence’… He warned ‘public liquidity is an imperfect substitute for private liquidity’. The markets would return to normal only when private sector institutions were willing again to lend each other money and make markets in financial securities.”

Public liquidity is an imperfect substitute for private liquidity, Mr. Warsh? Tell that to Alexander Hamilton. Tell it to Henry Clay. Tell it to Mathew Carey.

What kind of American are you, sir, to make Lincoln and FDR roll in their graves?

Financial Regulation To Serve Liberty?

April 17, 2008 at 2:07 pm | Posted in Financial | Leave a comment
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April 10 – Bloomberg (Patricia Kuo and Bei Hu): “Billionaire George Soros said the seizure in global credit markets caused by the subprime collapse will get worse before it gets better. Lack of oversight is partly responsible for problems in the financial markets, Soros told reporters… He said regulators and the U.S. administration ‘failed to perform their job’ in a crisis that began in the U.S. housing market… ‘This is a man-made crisis and it’s made by this false belief that markets correct their own excesses,’ Soros, 77, said. ‘It will take much longer for the full effect of the decline in the housing market to be felt.’”

U.S. Press, Publishing MagnateContrast this to Wall Street investment bankers who, instead, talk up their books. Thus, the question becomes:

Why is the so-called free press dissing the arrangement they have otherwise so dutifully helped promote?

What perception is purposely being cultivated here, and to what end?

Is this all damage control meant to strengthen the myth the United States conducts its affairs in harmony with the principles for which it was formed … that a few bad apples have spoiled the pie?

Or is the next big lie — following the one about the magic of the marketplace — about to be sprung?

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