Wednesday, October 1, 2008

Another one, a week too late

I've been sitting up here at this end of the planet watching everything unwind and collapse.  After all this reading, maybe I've got a clue .... I hope.

Anyway.

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Honorable Senator:

Soon the administration will try again to force through what is an actually communistic total control of the markets, when good old-fashioned common sense and a renewed Glass-Steagall act would go far indeed toward repair of the underlying rot in our market system. They will rename it, likely call it a "rescue" or such other BS, but it will still privatize profit and publicize loss. Unacceptable.

The present administration has lied, lied, and lied, and I see no reason to any longer believe anything they say. Paulson and Bernanke are two of the people who got us into this mess. They should be fired, investigated, and put on trial should that be legally possible. Those two are from Wall Street, think Wall Street, and expect to return to Wall Street. Their past and ongoing connections to the hubristic fools who lied us into all this more than suggest conflict of interest and corruption. These are the people who got us into this mess, and they didn't see it coming! That's expertise?  

Why does anybody listen to these guys?

The true cost of this bail out will easily reach a Trillion dollars! There is at least $1000 trillion (one QUADRILLION!) of various leveraged markets deleveraging right now, and losing value fast, and putting up $1 trillion against that just won't work. The entire economic system is in fact a house of cards which now, as past predicted by many, collapses of its own weight. Throwing money at this just won't work.

' "The interbank market has collapsed," said Hans Redeker, currency chief at BNP Paribas. "We're now seeing a domino effect as the credit multiplier goes into reverse and forces banks to cut back lending to clients," he said.'

The entire world credit market is being forced to deleverage since banks are refusing to roll forward new short term credit. The present serious credit crisis is due to this; no bank will lend to another, for no bank knows how much bad debt another has. Thus, the Fed is helpless, as the Libor soars, thus extinguishing any effect of rate cuts by the Fed. BTW; The Federal Reserve is a private corporation owned and operated by banks. And these stock holders want to help their own banks, NOT US! There's your conflict of interest. Have you noticed yet?

We are inevitably heading towards, at the least, a serious and long recession, and I feel we should just bite the bullet and get it over with. Such selective bailouts may temporarily postpone a financial disaster, but not eliminate it. And, when that disaster inevitably does come, it will have been worsened and deepened by a further (if possible) erosion of public trust in government and finance.

Any bailout of any kind will indeed be a waste of money, because it just won't work. And we won't see any profit, either. It's all a crock of lies. The crisis is NOT Wall Street thieves, but TRUST. Nobody trusts the financial or governmental sectors of society any more. A bailout, or indeed anything suggested by Bernanke, Paulson, the Fed, or this administration would prove that "Crony Capitalism" now rules in America. They have no credibility, help their friends, and protect their own futures, not ours.

This is all theft and corruption on a scale so grand that it's actually breathtaking.

No. Bailout. Period.
 

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