Fed Seize WAMU & Bail Out In Shambles
Bail Out In Shambles:
Plutocrats, by that I mean the punters on Wall Street and the plunderers in D.C. have underestimated the will of the general public. Protests are breaking out all over the country, especially in D.C. and on Wall Street. Congressmen and Senators have their phone lines, fax lines and email inundated with calls, faxes and emails from their constituents.
Republicans have grown cojones ( pardon my French ) and decided to not go along, at least for now. Even if that is just a political stunt, if it really works, there is still hope for the rest of us mere mortals.
WAMU No More:
In the mean time, in an instance of biggest retail banking collapse in history, the Feds have seized the operations of Washington Mutual. A deal has been struck to transfer most of the operations to JP Morgan Chase.
Your Daddy's Financial Crisis?
The best case scenario for a way out of the current mess, at least as this amateur sees it, is a 1970s style high inflation decade. If the bail out goes through, there is a real possibility of a currency collapse. America is addicted, not just to foreign oil, but to foreign credit.
If bank collapses cascade, that in itself is negative for confidence in the dollar. Shrinking government revenues at local, state and federal level is enough incentive to run the printing presses. When push comes to shove, some form of bail out will happen anyway. But 700 billion price tag is a staggering start, not counting all the bad paper that the Federal reserve has already accumulated.
In conclusion, daddy's Financial Crisis is the best possible scenario. Let's hope that it doesn't get any worse.
Plutocrats, by that I mean the punters on Wall Street and the plunderers in D.C. have underestimated the will of the general public. Protests are breaking out all over the country, especially in D.C. and on Wall Street. Congressmen and Senators have their phone lines, fax lines and email inundated with calls, faxes and emails from their constituents.
An email from Manhattan: "I just walked by the New York Stock Exchange. Hundreds of demonstrators have gathered to protest the government's bailout of Wall Street. Several were holding placards that read "Stop the bailout! Read The Road to Serfdom by FA Hayek. Read mises.org " They were also handing out copies of Ron Paul's 2003 speech introducing his bill to eliminate subsidies to Fannie Mae and Freddie Mac. ( from blog.mises.org/blog )
Republicans have grown cojones ( pardon my French ) and decided to not go along, at least for now. Even if that is just a political stunt, if it really works, there is still hope for the rest of us mere mortals.
WAMU No More:
In the mean time, in an instance of biggest retail banking collapse in history, the Feds have seized the operations of Washington Mutual. A deal has been struck to transfer most of the operations to JP Morgan Chase.
Your Daddy's Financial Crisis?
The best case scenario for a way out of the current mess, at least as this amateur sees it, is a 1970s style high inflation decade. If the bail out goes through, there is a real possibility of a currency collapse. America is addicted, not just to foreign oil, but to foreign credit.
If bank collapses cascade, that in itself is negative for confidence in the dollar. Shrinking government revenues at local, state and federal level is enough incentive to run the printing presses. When push comes to shove, some form of bail out will happen anyway. But 700 billion price tag is a staggering start, not counting all the bad paper that the Federal reserve has already accumulated.
In conclusion, daddy's Financial Crisis is the best possible scenario. Let's hope that it doesn't get any worse.
Labels: banking, central bank, credit bubble, deficits, derivatives, dollar, economy, forex, inflation/deflation
posted by Oil Shock at 8:38 PM
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/quotes_special.gif)
1 Comments:
We have more power than we think, we just need to use it! We could in theory do a run on all banks over a couple of week timeframe. It would have to be somewhat orchestrated and drawn out because if the govt sniffed out the plan, they would close the banks. But if we start drawing down our accounts and drain enough cash out of the system and into our mattreses, then we eventually shut down the entire banking system and close their doors. The only thing that they run on now is faith. Yet they only hold 10% or less of the cash that their customers have deposited. So if we are able to draw down 10% or more of all depositors cash from the banks, they are insolvent. If you look at M1, M2...it shows that there is about 14 Trillion in total cash, but hard paper cuurency is only slightly above 1 Trillion. The rest was created by the banks lending and is completely electronic without any cash to back it up. It is known that about half of this 1T cash is already off shore, so to bring down the entire banking industry all we have to do is take the 500 billion home and the banking system will fail. So if the govt passes this bailout over our 95% objection, we just shut them down by taking away their cash reserve. (thank you fractional reserve banking)The only response would be to print more, taking months, or shutting down banks before it all disappears. either case, it shows them that we have had enough. So go to your bank, draw oout 50% of your savings, keep minimum balance to pay the bills. If half the people drain half their savings, it will cause the banks to shut down. if they print the money, then we will do it again and again until they get then idea that we have had it with their crap.
have fun.
Post a Comment
Links to this post:
Create a Link
<< Home