“We are now in the golden age of thieves. And where I come from we put thieves in jail, we don’t bail them out.”
– Congressman Pete Visclosky, Democrat, Indiana
“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.”
– Thomas Jefferson, 1802
Here is a step by step account of how Pauslon has orchestrated this in order to give his Goldman Sachs buddies the keys to the kingdom. Another insightful missive from the Chumpzilla Awards.
http://chumpzilla.wordpress.com/2008/10/06/chumpzilla-goes-to-treasury-head-paulson/
Here’s my analogy of the economic situation, particularly in the U.S. It came to me at that most auspicious time, while in the shower.
First, you have to know what the collapse of the Tacoma Narrows Bridge was all about, and most importantly what it looked like. Its lifespan was from 7/1/1940 to 10/1/1940. The collapse was spectacular. Here’s footage: http://www.youtube.com/watch?v=3mclp9QmCGs
So, the bridge is our economy, of course. Imagine as it begins to oscillate slightly. The architects (Wall Street in my analogy) all stand around on the banks collecting their tolls and say “oh, keep on driving on it, it’s fine!”
Things get worse, the oscillation is worse. The architects say “keep on driving on it, it’s fine! And we can even increase traffic!” (and tolls).
Then the thing is swinging like a garden gate. The architects huddle. They announce that past all projections by them the bridge may, just may, be in trouble.
Now the bridge is swinging so much it’s about to fly away and crash into the gorge. The architects come up with a plan!
Up drives a large bus, double-decker. The architects get on a bullhorn to tell the frightened crowd that’s gathered to watch that they have a plan! They must fill this bus to bursting with brave folks so that it can be driven right out into the center of the span in order to stabilize it! This will work! It will not only put a damper on the oscillation, it will show everyone watching that there is confidence in this bridge and show others how to handle their own swinging bridges.
We all know the next part of the story by now. The architects took all of the brave volunteers’ valuables “to keep them safe” as they were boarding the bus. They shoved it all into unmarked bags that were then whisked away. Then they watched as the bus was flung straight into the air and then down past sight as the bridge collapsed while they stood safely on the banks and watched.
This is a very flexible analogy and I’ve had a great time embellishing it, adding things and taking away – but it’s a grim exercise to be sure.
My best to everyone out there, and my profound thanks to Catherine and this website and all her work and the work of others that helped me wake up so that I can at least observe intelligently. Not to mention act prudently.
Good day,
Since new money is created when banks create debt (lend money) then is it possible that by refusing to lend eachother money at normal rates, banks are deliberately shrinking the money supply? It would provide an opportunity for some incredibly wealthy people and their organizations to buy up shares of corporations cheaply. Some stock prices are lower than anyone would rationaly expect possible, so I expect many people will be getting margin calls. Even people who were careful in their margin use. Those who can’t make their margin calls will see their stocks sold and this will push stock prices down even further. I’m sure this has happened already on previous days, but if stocks close around where they were tradign this morning, I expect a lot more margin calls today. If I’m not mistaken, companies use their stock prices as leverage to buy other companies to legitimize illicit cash flows, and to raise capital (issue bonds). So with lower share prices, it’ll be difficult for companies to raise capital (issue bonds) thus shrinking the money supply even further. A chain reaction seems to be in motion that only the banks can decide when to stop.
Have I got this wrong? I’m very interested in your opinion about this.
I wish I’d been more careful (less greedy), but I’m grateful I had the humility (more like lack of complete arrogance) to stop using margin a few weeks ago. I could be in the group getting margin calls they can’t make. As it is I’m down almost all of the 67.5% profit I made since I started investing in April of this year, and perhaps my very recent losses will in time only be on paper (pun not intended). So far I must be one of the lucky ones.
What was I thinking when I bought a stock a few days ago? Greedy thoughts to be sure. On the one hand I wanted to run on my bank, but I thought if I did, I’d be too late anyways. It would take days to get the money from my brokerage account and I don’t even know how I’d go about buying precious metals near spot price and taking possession of them in a short time-frame. So I did nothing. Worse, I bought a stock, lol. It’s a very uncertain time to me with my limitted understanding and abilities.
And here I’m worried about a few years of savings and the profits I recently made on them, while millions of people are losing their homes. I’ve noticed that being able to manipulate money in a brokerage account has had hardening effects on me. It is such an indifferent and unaccountable way to exchange power. I can invest in and thus help make profitable, just about any sort of business operating almost anywhere in the world, more easily than I can buy Export Processing Zone made clothing at Walmart. It’s so abstract that it’s easy to lie to myself that it doesn’t matter. At least at Walmart I have to physically go there (a choice each time), physically put on the shoes, and consider that a real person (hundreds of people in piecemeal fashion actually) made the shoes, and then go to the counter and pay for them, thus supporting the process down to the 12 teens sleeping in a fire-trap room, and working 75 hours or more per week for several months until they’re burnt out and told not to come back. With my brokerage account. I just read about the company, and then press a few keys. It’s another level of abstraction beyond the dollar. Makes a good case for all money being issued by individuals for their labour, and money being invested locally by law, in my opinion.
Sorry it’s so long. Thanks and good luck.
Once We were Sparta. Once We were a Republic. Now we are a democracy;ruled by the new socialists.
Yet,I place hope in the American People; If the majority wanted the bailout voted down AND they new the consequences AND were willing to pledge their Lives ,their Fortunes, and their Honor as our Founding Fathers did, We the People might yet rebuild our Republic. VOTE THEM OUT!
brgds
rene