Chrysler & GM to Dealers: Drop Dead

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1. @Doug; Since the inception of Treasury Secretary Geithner’s PPIP mechanism to further the deleveraging ball down the road; imho it has been very suspect, and furthers the impression that the financial industry insiders alone( those too big to fail) are calling the shots…Clearly the WSJ and the NY Times articles mentioned by Doug have, if ever so briefly, exposed the collusion inherent in this heist….As Catherine has long pointed out the “financial coup d’etat” is nothing more than a heist….in very frank terms it’s placing the caught bank robber in charge of the bank…we are witnessing a continual corruption…a crime in plain view…But I can assure you the worst is yet to come ( with the results of the “behind closed doors” meetings this week of the Bilderberg folks in Greece; and a reported small invitation only group of selected billionaires in NYC ) one can only wonder how these highly motivated folks might progress their wealth and power in the coming months….simultaneouly, all this time the common physical economy ( where we all live and the Chysler dealers too ) faces years of deminishing value while theirs are geared to increase….Before this event the wealthy few controlled at least 80% of the world’s wealth….it appears they are not satisfied and since they have convinced the world that the derivative securitization economy ( a/ak/a PONZI SCHEME ) takes preference and superiority to all other economies they now are clawing for the entire enchilada!!! If after the progressive monthly sale of the $2 trillion in federal treasury bonds hit a glitch at some point in a few months( and the possibility that the bond rating agenncies may have to correct the governmental AAA rating to a lower one, will it again become clear that the men in charge haven’t a clue?? OR that this is an engineered plan by design all along??)…never before has the treasury offered so many auctions over a period of a year for this amount…Clearly the successful bidding and sale is not “in the bag’!!! ( Further the $3.6 trillion budget is just the start w/ more to come in this range in the future ). It appears that the Anglo-American/Dutch financial hierarchy are going to have to give up some of the fundamental underpinnings that have kept them in control for these many centuries( during the 80’a we witnessed the Japanese buying many of our icons–ie: the Empire State Building, Pebble Beach Country Club, & Rockefeller Center Building, etc…)..This time will they have to give up the sea lanes to the Chinese to unleach the $1.3 trillion in Chinese held dollars??And a continued position in future auctions? What about the Middle East? Israel’s existence depends on that alliance and strength…Will that possible change in global hegemony effect the “balance” in the Middle East and in particular Palestine and Israel?? Will other Muslim countries who have remained simmering in the background rise up and loudly oppose western hegemony ?( notice the trade alliances betwen China Russia Japan and Iran; and Chinese trade agreements with so many other countries who now accept the yuan!!) We will slowly see these changes occur…much like the former attempted “give away” to Dubai Ports World the control of our harbors by the Bush Admin…A clear attempt is underway to have the Trans Texas Corridor sold to private hands ( CENTRA? of Spain ); and in fact several of our highways are already under foreign control ( here in Florida the Alligator Alley=I-75- a 100+ mile stretch across the state is known to be exploring a private sale ). We will be silently witnessing a massive give away of resources yet to be named: OUR ONCE STRONG LABOR FORCE INCLUDED???!!! at rock bottom ( a/k/a bare existence) wages too???…we might(will?) become the labor market who the “owners” will designate as “wage slaves” much like what we witnessed in other lands over the latter part of the 20th century as “outsourced labor” and “offshored industry/manufacturing” became acceptable business practice…so in Max Keiser’s voice: RISE UP!!!! These are not former ( present?) small scale pilferings of the likes of the Pentagon Budget…This time it’s to rearrange to the global power base….Americans are a funny folk, they may not cater to foreign ( UN/NATO?) troops on our streets; nor the yuan or RMNBI as the dominant world currency!!! enuf ranting, Richard(theoldwiseman)

2. What a double standard.

   On the other hand – create the problems our country faces via fictitous financial securities that’s only “real” value are to the people who create them and which provided absolutely nothing to our actual economy – are repeatedly rewarded…when they should be given jail sentences.

   From, http://www.truthdig.com/report/item/20090519_our_loss_is_blackrocks_gain/

   How much do you know about the BlackRock hedge fund? Better bone up fast, now that the folks at BlackRock are calling the shots in the government’s trillion-dollar bailout program. As both The New York Times and The Wall Street journal reported on Tuesday, BlackRock execs are now directing key elements of the government program at a time when they stand to reap great profits from the fallout of a problem they helped create.

   The U.S. picked BlackRock to manage the assets once controlled by AIG and Bear Stearns and to analyze the assets of Freddie Mac and Morgan Stanley. And as if that were not enough on its plate, the Treasury Department has just selected BlackRock to be one of the few firms trusted with using U.S. taxpayer dollars to buy toxic assets from the banks and then resell them in a process that presents enormous conflicts of interest with other BlackRock operations.

   Bank of America, with a 47% ownership position in BlackRock, is also the owner of what was once Countrywide Financial, which led the pack in selling bad mortgages. The disposition of those failed properties under BlackRock’s tutelage will have much to do with BofA’s future profitability. As if that were not enough financial incest, the former president and other top executives of Countrywide now run a company created by BlackRock, which is profiting mightily by snapping up the sort of distressed loans that they originally had marketed.

   Confused? You’re supposed to be. That’s the point of a successful hedge fund, a totally unregulated activity in which very rich people pool their money in order to more effectively rip off the rest of us. And BlackRock is at the top of that game, managing $1.3 trillion in assets. But in this round the stakes are far higher because BlackRock, which did a great deal to cause the economic meltdown, has now been put in charge of the government recovery effort.

   But don’t take my word for it; check out the accounts of BlackRock’s leading role in managing the bailout in The New York Times and Wall Street Journal on Tuesday.

   The New York Times: “Can a company that is being paid to price and sell troubled assets for the government buy the same kinds of assets for private clients without showing preference? And should the government seek counsel from a company whose clients stand to make or lose billions if those policies are enacted?”

   The Wall Street Journal: “BlackRock helped shape the government’s toxic-asset plan, which critics have said helps vulture investors buy assets on the cheap while exposing taxpayers to the bulk of losses if the investments sour.”

   Leading the pack of vulture capitalists profiting from the misery they inspired is the Private National Acceptance Co. (PennyMac), which BlackRock bankrolled

   …

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