Unlimited Money to the Banks is Limited

October 14, 2008 – 10:31 am
The bailout plan wants to give unlimited cash to the banks that need it with the only restriction is to use it prudently!  Well if you look at the root causes of this you will see that the unlimited money to the banks is actually limited.  It's really borrowed money for unlimited borrowing. The commerical banks have an unlimted ability to create money... Unfortunately, consumers have a limited ability to request it's creation. This is just to keep the banks from imploding due to the drop in consumer requests to create new money...the circulation is broken... This will do nothing to address the inability of the consumers to request the required amount of new money to service the continued existance of the previously created money. It's the difference between swimming to safety or treading water until you grow tired and drown. The unlimted is ultimately limited... How FED borrowing works...Is a commercial bank uses its income or ...

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The Quadrillion Dollar Powder Keg Waiting To Blow

October 12, 2008 – 9:37 pm
Derivatives at the heart of the crisis, catastrophic losses are inevitable, financial system headed for oblivion, the new world disorder, EU doomed, Credit Default Swaps at the heart of the problem, Plunge Protection Team history, coverups for globalization failures, Bloodbath for the Yen, The heart of the current crisis is the quadrillion plus derivative market. Roughly half of these derivatives are listed on exchanges, but the other half are on the totally unregulated, totally opaque, poorly documented and mostly naked (no reserves or collateral given to secure performance) OTC derivatives market. The subprime and Alt-A mortgage debacles, and the soon to be recognized prime mortgage debacle, are little more than a side show with what will become their one to two trillion in losses which the Phony-Fraudie nationalization and the Paulson Ponzi Plunder Plan are meant to address, albeit futilely. However, the real estate derivative problems created by these debacles ...

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Leveraging, Derivitives, Swaps, Mortgage Backed Securities == FRAUD!

October 7, 2008 – 10:42 pm
Hugh Sunday explains the predators’ techniques in A short rough primer on leveraging and derivatives: “Leveraging means something like this. You sell $10 million in stock. You use this money as the basis to take out a loan so you can buy $100 million in mortgages. Now say you issue mortgage-backed securities based on these and sell them. Now you have a $100 million in cash so you go out and buy more mortgages only this time you use your $100 million to buy a billion dollars of them. You have just leveraged your initial $10 million 100 times.” Can anyone do this? No. “This works if you, your banks, and the buyers of your paper are all sufficiently greedy. Why would banks loan you $100 million on $10 million collateral? The short answer is they wouldn’t for you or me, but they would and did to financial companies because of ...

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FED to Purchase U.S. Commercial Paper to Ease Credit Crunch

October 7, 2008 – 4:53 pm
Fed to Purchase U.S. Commercial Paper to Ease Crunch (Update1) By Craig Torres Oct. 7 (Bloomberg) -- The Federal Reserve will create a special fund to purchase U.S. commercial paper after the credit crunch threatened to cut off a key source of funding for corporations. The Treasury will make a deposit with the Fed's New York district bank to help set up the special purpose vehicle. The central bank will also lend to the program at policy makers' target rate for overnight loans between banks. The Fed Board invoked emergency powers to set up the unit, the central bank said in a statement released in Washington. Today's action follows a slide in the commercial-paper market to a three-year low of $1.6 trillion last week as investors fled even companies with few links to the subprime mortgage crisis. Companies from newspaper firm Gannett Co. to electricity producer Southern Co. have been forced to tap credit ...

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Ben Stein Tells us How to ruin your Economy

October 7, 2008 – 4:49 pm
Twelve Step Process to ruin your economy: 1) Have a fiscal policy that creates immense deficits in good times and bad, burdening America's posterity with staggering burdens of repaying the debt. 2) Eliminate regulation of Wall Street and/or fail to enforce the regulations that already exist, instead trusting Wall Street and other money managers and speculators to manage other people's money with few or no regulations and little oversight. 3) Have an energy policy that disallows producing our own energy and instead requires that we buy energy from abroad, thus making our oil prices highly volatile and creating large balance of payments deficits, lowering the value of the dollar and thus making the problem get progressively worse. 4) Have Congress mandate that banks and other financial entities lend money to persons they know in advance to have poor credit ratings or none at all. 5) Allow investment banks, insurers, and banks to bet their entire ...

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Icesave Announces It is Freezing its Customer’s Accounts

October 7, 2008 – 10:08 am
The BBC Reports that Customers of the Icesave internet bank have been warned they will probably have to claim compensation for money held in their savings accounts. Hopefully this is not a signal of things to come for more banks. The authorities in the UK are preparing for the bank's parent in Iceland, Landsbanki, to be declared insolvent. The Icelandic government took control of the country's second biggest bank on Tuesday to stop it collapsing. Claims from Icesave's UK customers will be handled by the Financial Services Compensation Scheme (FSCS). Restructuring work Under the depositor protection arrangements in Iceland and the UK, the Icelandic authorities will be liable for the first 20,887 euros (£16,300) of compensation. We are gearing up to be ready to do whatever we can in order to get compensation back to UK savers as quickly as possible FSCS spokesman The UK's FCSC will pay out the rest of the claims, up ...

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We have Reached Maxium Borrowing Potential

October 5, 2008 – 11:27 pm
The mass social engineering is designed so that the next installed puppet will have the benefit of blaming the previously installed puppet for all the wonderful austerity measures the US public will have to accept. It's all over...the top takes effects that the bottom is being exposed to and then says they are causes and because the bottom has no real ability to think...Accepts the lie as truth. The USA has been hyperinflating for 64 years...It's just been hidden with accounting tricks...Yes that's 51 Trillion Dollars...because the USA like all countries on Earth has a credit system...the money supply of 51 trillion dollars is also the total debt that everyone owes. And every country on Earth basically has a doomsday spike like the below. The daily growth rate of that green line that hyperinflationists need to keep going up faster and faster forever? Slowed by 42.6% from the end of 2007 to now. The largest ...

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