I keep receiving reports that banks are cutting lines and refusing to loan to healthy businesses. There are more reports of profitable car dealerships that had the plug pulled in a manner that does not make economic sense. The oil price is running up through speculation. Appraisals are much stricter as required by new rules and may be slowing the real estate market.
This does not look like stimulus. This looks like the banks have their war chest in place and now they are coming in for the kill. The lower the price of assets and the more desperation on Main Street, the more they and their syndicates can pick up assets for cheap, the greater their ultimate control.
Yes, there are some stimulus funds trickling out – a few jobs totally dependent on Wall Street-Washington largesse. Other than that there is a series of actions designed to intentionally stop and implode the heart of the economy.
The supporting “green,” “social innovation and venture,” “entreprenuership,” and “citizen empowerment” aspects of shock doctrine are emerging as well. While you are bankrupting thousands on Main Street, it is always great PR to trickle back a small % of the profits in promoting the very thing you are destroying and doing it in a way that makes you money.
Where are the foundations and not-for-profits arguing that what communities need are sound money, real transparency, circulation of local equity and a cessation of covert operations, hard narcotics trafficking, mortgage fraud, and bank bailouts? The ones that do are typically not first in line for funding and grants.
It’s looking more and more like a major economic hit is underway.
Sorry, here is the correct link:
Apology of an Economic Hitman – A film by John Perkins
Watch it here:
http://tinyurl.com/apologyjp
Speaking of “bank holiday”, someone opinined:
The actual report said originally that the U.S. Embassies around the globe have been instructed to purchase enough U.S. Dollar bills to last for a year.
This does not automatically mean that a bank holiday is being planned. In fact, it is much more likely that these instructions were given because of the possibility of political unrest around the globe. Embassies which find themselves virtually cut off from the outside world will still be able to operate as long as they have cash on hand. That makes a lot more sense to me than a planned bank holiday.
Catherine,
What are your thoughts on preparing for food (and water?) shortages? My understanding is that once the “hit” occurs, the average citizen will want to dispose of their US dollars by buying up hard assets, which means the grocery stores will be emptied in a hurry. Have any suggestions for stocking up, or when the actual “hit” might occur? I’ve seen Leap 20/20 and FAPSI-based intel that suggests November is the time to expect the hit. I’ve also heard lots of rumors about a bank holiday but no mention of how long the shut-down is expected to last. US embassies are being told to stock up on massive amounts of currency, which leads me to believe the holiday will last a few months. Thoughts? Please post any related links, as well. Thanks in advance!
Hit – As Kind of like last fall when the FED suddenly (or conveniently) drained money from their wall street buddies when the $700 billion the world is going to hell in a hand basket, we need this done now, don’t ask questions bailout bill didn’t pass.
http://www.calculatedriskblog.com/2009/06/fdic-104-cease-and-desist-orders.html
The FDIC has been very busy issuing Cease and Desist orders this year. Through May, the FDIC has issued 104 Cease and Desist orders and this does not include any orders by the OCC or OTS. (ht Terry)
Most of these oreders are very similar – here is an excerpt:
IT IS HEREBY ORDERED, that the Bank, its institution-affiliated parties, as that term is defined in section 3(u) of the Act, 12 U.S.C. § 1813(u), and its successors and assigns, cease and desist from the following unsafe and unsound banking practices, as more fully set forth in the FDIC’s Report of Visitation …:
a) operating with management whose policies and practices are detrimental to the Bank and jeopardize the safety of its deposits;
(b) operating with a board of directors which has failed to provide adequate supervision over and direction to the active management of the Bank;
(c) operating with a large volume of poor quality loans;
(d) engaging in unsatisfactory lending and collection practices;
(e) operating in such a manner as to produce operating losses; and
(f) operating with inadequate provisions for liquidity.
emphasis added
All of these institutions are ordered to make changes – and some do, and then the cease and desist order is terminated (15 orders have been teriminated). The remaining are BFF candidates.
Where’s the cease and desist order for Goldman, Morgan, Citi, etc?