(snip)"March 14, 2008
Elaine Meinel Supkis
Bush says 'If we oversteer the car, we end up in the ditch.' HAHAHA. Instead, he and his gang drive us all off a cliff? A ditch is minor, a cliff is fatal. Bear Stearns is bearing down on the number zero. This news follows on the heels of the Fed $200+ billion rescue scheme that gave Wall Street total joy. Now they are in total panic as the obvious comes true. The NY Fed has had to reach deep into its futures pockets to pull a rabbit out of a hat for BS. And JP Morgan, one of the most over-extended, poorly-capitalized companies around, is supposed to rescue BS! And that is so much BS, it is a marvel that anyone could possibly believe that all this means the banking crisis is over rather than gathering steam, roaring ahead.
Federal Reserve Board of Governors Press Release
Release Date: March 14, 2008
For immediate release
The Federal Reserve is monitoring market developments closely and will continue to provide liquidity as necessary to promote the orderly functioning of the financial system. The Board voted unanimously to approve the arrangement announced by JPMorgan Chase and Bear Stearns this morning.
Gas hits record high. Stocks soared on the news that we had no inflation last month due to oil not shooting up in price but it has shot up since then, obviously. The Fed has glommed onto those statistics to crow, there is no inflation and this will allow them to drop interest rates to 2%. On the road to Tokyo! We will be at 0% loans with 0% down Hog Heaven! Gold hit $1,000 an ounce as the reckless Fed tries to save a bunch of sneering, self-centered, destructive pirates. Yo-ho-ho, says Bernake as he dons his Santa suit.
There is something rather sad in all this. The Fed has an obligation to explain to us how these Perils of Pauline rescues are being engineered. Second, they should refuse to lift a finger unless first, all the clowns who are in trouble cough up every penny of their ill-gotten bonuses. These get transfered to the Fed's FOREX reserves vaults. These criminal creeps collected record billions in bonuses this Xmas despite the obviousness of the unfolding collapse. They didn't care. They wanted their loot.
NOT ONE has given up ANYTHING. True, the US/EU/UK/Japan banking consortiums, based mostly on offshore tax havens, will suffer and through them, our economy will flounder. But only for a brief moment. If we arrest all the cheats who refuse to pay taxes and who took multi-million and even multi-billion bonuses in the last 7 years, the money we get back will cover some of the cost of unwinding the messes they made trying to earn these bonuses. Morally, I am very offended by this latest rescue operation. Worse, the lowering of interest rates to rescue all these idiots is going to weaken our nation, destroy our currency and steal money from savers!
Why should America be destroyed in order to save the very people who are eating up our infrastructure, our finances and our industries? Eh? This should be topic #1 rather than glossed over.
Bear Stearns Gets Emergency Funds From JPMorgan, Fed
Bear Stearns Cos., teetering on the brink of collapse from a lack of cash, got emergency funding from the Federal Reserve and JPMorgan Chase & Co. in the largest government bailout of a U.S. securities firm.
After denying earlier this week that access to capital was at risk, Bear Stearns Chief Executive Officer Alan Schwartz said today that the 85-year-old company's cash position had ``significantly deteriorated'' in the past 24 hours. The central bank agreed to provide financing through JPMorgan for up to 28 days, the bank said in a statement today.
Arrest Schwartz. Arrest anyone who so blatantly lies! This con man was selling stocks based on total fabrications which he knew were lies. Trusting investors were told, all was well, the books were balanced, etc. But this was false and the man who said these things wasn't ignorant of the truth. He was an insider using his position to boost stocks he knew were worthless. This duplicity is at the heart of the mess we see. Goldman Sachs recently gloated that they shorted the exact same instruments and funds they were peddling to trusting investors who lost everything. This sort of thinking infests all these hot shot big shots.
If a used car salesman tells you a car is running just fine and mechanics have checked it out and given it an AAA rating but then a week later the engine blows and you discover the mechanic was a drunk who was paid to give it the AAA rating, this is criminal and the two can go to jail or at the least, lose their license to sell used cars. Of course, Bear Stearns bosses had to keep up the fiction that their car had 8 cylinders, not 7. So they lied about it."(snip)
Please understand what's really going on here. Via the primary dealer bank JP Morgan Chase, the Fed is now trading newly minted US Treasuries and newly printed US dollars for toxic derivative paper held by wheeler-dealer hedge fund enabler Bear Stearns in order to save their asses from bankruptcy. These 'trades' have come under the guise of being 28 day loans, but in reality there is little chance that any of these 'loans' can ever be redeemed. So the US Fed will be stuck taking however many hundreds of billions of dollars worth of losses on the toxic derivative paper it is accepting as collateral for 'emergency loans' to Bear Stearns.
Of course, US taxpayers have already been signed up as unwitting co-signers. So besides the ongoing destruction of the US dollar caused by yet more hundreds of billions of dollars worth of new T bonds and US dollars being printed out of thin air to finance 'emergency loans' to Bear Stears - that will stick US taxpayers with ever higher prices for oil / food / everything - those US taxpayers will also wind up being stuck with a massive tax increase sooner or later in order to cover the Fed's losses when the hundreds of billions of dollars worth of toxic derivatives paper collateral from Bear Stearns now held by the Fed (and 'purchased' at face value) will have to be dumped at a price of pennies on the dollar.
The ultimate insult is that Bear Stearns isn't even a bank, it is a financial investment firm. As such, Bear Stearns does not have too many customers who are working class people, such that if Bear Stearns were allowed to fail hundreds of thousands of individual working class Americans might wind up taking hits on their credit cards / car loans / home mortgages. Instead Bear Stearns caters to 'qualified' investors (i.e. $1 million+ net worth), Bear Stearns caters to (offshore) hedge fund investors, Bear Stearns caters to merger and acquisition speculators etc. Under any sort of normal circumstances, Fed rules would NOT permit intervention to save such a 'non-bank'. However, the Fed has called on emergency situation laws left over from the 1930's to facilitate this bailout, which will forestall Cayman Islands tax avoiding multi-millionaire Bear Stearns investors from taking losses at the expense of regular Americans who DO have to pay taxes.
If regular Americans were being told what's really going on with the Bear Stearns bailout by mainstream financial media, they would probably be screaming. This is exactly the reason that the whole bailout is going down with little more than a single paragraph appearing in mainstream financial news reports.
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(Going broke does tend to have that effect on your cashflow...)

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