As the entire banking system collapses due to the Derivatives Beast, all the things wrong with the system are not being fixed, they are being transfered to the future. The hope is, our infants and children in school today will be smarter than us and figure out some way to bail us out from all the debts we are accumulating. HSBC is now going under and AIG gets another $30 billion bail out and it should occur to our rulers, you can’t bail out a bunch of sinking Titanics using a sieve. We have to destroy the Derivatives Beast. And punish those who made this possible.
President Barack Obama’s administration will seek congressional approval for as much as $750 billion in new aid to bolster U.S. financial institutions if it is needed, White House budget director Peter Orszag said.
“If additional efforts become necessary, we’ll work with Congress on the scale and scope of them,” Orszag said today on ABC’s “This Week” program. “The budget is intending to be responsible. We put a placeholder in there just as an insurance policy.”
Obama’s first budget, a plan to spend $3.55 trillion during fiscal year 2010, seeks standby authority for $750 billion for financial firms while planning for a health-care system overhaul and almost $1 trillion in higher taxes for 2.6 million of the richest Americans.
On top of several trillion dollars already, they are talking about another trillion! This madness has to stop! Saving a bunch of con artists shouldn’t be shoved onto our children. Saving banks is not noble, it is stupid. When a collapsing bank threatens to collapse a country, the banks have to be closed and the country has to take strong, swift measures to protect itself from falling apart.
About taxes on the top 1% of this nation: it should be a 90% tax. When we pay off all this mess, they can then thank the gods, they are not in China where people who screwed up this badly are shot. We had a 90% tax on the top incomes to pay for WWII and the Great Depression. This only lasts a few years. So the rich could thank the gods, they are not in China and will be used for entertaining the masses in stadiums where they get shot!
Generally speaking, we are given limited choices in life: we can choose to be greedy and self-centered or we can choose to share. We can choose to be traitors or choose to be patriots. There are many such choices. For 35 years, the upper class in the US chose to be traitors and to be greedy. Greed is good, they claimed and free trade is great. Now, we see that greed is terrible and free trade is a disaster.
Not one of these things are being fixed. No one twisted the arms of the richest people on earth and forced them to open the unregulated casino in over-the-counter counter-party betting ‘industry’. No one forced them to create the derivative ‘interest rate swap’ swap meet. No one put a gun to their heads to create the credit default options markets. Or the SIV market. Or the slice and dice home loan business.
These jerks created these things, themselves! They did this with eyes wide open and mouths even wider open. They thought, these stupid things THEY invented would open wide, the portals to the Cave of Wealth and Death! And using these tools, they could circumvent all rules, regulations and systems set up to prevent infinite inflation. And they ran with it: in less than a decade, these stupid things they created became bigger than all wealth on earth.
Since the system has now collapsed, they pretend this monster is nothing much. And the super-rich tell people like Obama, all he has to do is patch the hole in the bottom of this pit and all the wealth of the world would cease flowing down and vanishing into nothingness. So Obama and before him, Bush, dutifully poured in trillions of US taxpayer IOUs into the gaping maw of the Derivatives Beast and he ate it all. And burped. And demanded more.
The business of using debt to stop a negative system based on too much debt means more debts, not less debts. The demands for ‘liquidity’ are really demands for more debts. And we are getting more debts! The US itself is madly creating more debts. I fear that this will continue until the amount of debts held against our future taxes will equal the value of the Derivatives Beast itself: $66 trillion. To do this, we have to make the dollar worthless in the real world.
The company is expected to announce the divestment of its US consumer lending business. Shares are expected to begin trading again on Tuesday.
These banks are going under and frankly, good riddance. When FDR took over the mess in 1933, he immediately closed all the banks and had them audited. We must do that now, not next year. All banks running in the red must be closed. This includes the entire Federal Reserve. Shutting them down is paramount.
Both the Fed and the key owners of the Fed don’t want this so they would rather we take on many trillions in debt for the Fed to hold as ‘money’ in lieu of sovereign wealth items like gold. In the mainstream media, they are not even talking about this. Of course, they will not talk about it since the owners of the Fed work hand in glove with the owners of the media. By the way, the media is going bankrupt, too. This is not a shock, this is due to them also being a negative system. No news is good news, to them. They report the obvious. Only after it happens.
— Goldman Sachs Group Inc., JPMorgan Chase & Co. and the eight other banks underwriting HSBC Holdings Plc’s record rights offer will share about $500 million in fees during the slowest year for European stock sales since 2003.
Europe’s biggest bank will pay the sale managers a fee of 2.75 percent of the 12.85 billion pounds ($18.3 billion) it’s raising in a rights offering, London-based HSBC said in a statement today. The sale is the U.K.’s biggest, surpassing Royal Bank of Scotland Plc’
s 12.3 billion-pound June fundraising.
Rights offerings are generating more fees for investment banks this year as revenue from advising on initial public offerings and takeovers shrinks. The HSBC payout is more than twice what all banks earned from managing IPOs in Europe in the second half of 2008, according to data compiled by Bloomberg.
“It’s good news, but it’s not enough to offset the collapse of commissions in M&A and IPOs,”said Alain Dupuis, a banking analyst at Oddo & Cie in Paris.
The bankers make money on ‘deals’ where they get a percentage so they want big deals, all the time. To make these big deals, they have to have access to sources of easy loot to use as a basis for lending money for big deals so they can collect billions of dollars in fees. This loot came mostly from the Japanese carry trade since no bank had lower interest rates then the ZIRP 0% rates in the Bank of Japan!
This means, to make money out of nothingness, they would go to Japan, borrow money, use this to make a loan, have this loan dumped on some physical business and then take a cut of the loot made out of thin air, this way! Lovely! They need these ‘commissions’ and the staff hired to create this negative money flow mess grew rapidly as more and more people were hired to push for deals involving immense amounts of debt being created via the Japanese carry trade.
McGee started 2008 as head of investment banking at Lehman Brothers Holdings Inc., a post that by September seemed like the fastest way to a pink slip as Lehman collapsed in the biggest bankruptcy in U.S. history. Now McGee has the same job atBarclays Plc, which bought Lehman’s North American assets.
Barclays’s “Earn Success Everyday”motto streams across the navy blue screen that wraps around the base of the former Lehman headquarters just north of Times Square, where McGee occupies a 27th-floor corner office.
Taking over Lehman helped London-based Barclays’s investment banking unit, Barclays Capital, rise to No. 9 from No. 18 among the world’
s best-paid investment banks in 2008, according to data compiled by Bloomberg. Barclays Capital, when combined with Lehman, took in $1.91 billion in fees from underwriting securities and advising on corporate takeovers.
The No. 1 fee earner in the world was JPMorgan Chase & Co., which also ranked first in the underwriting of stocks and tied with Citigroup Inc. for first place in bonds. Citigroup was No. 2 in total fees.
Even as Barclays and other deal-making giants go again and again and again to the central banks for cheap loans so they can make more expensive loans to dump on capitalist businesses, they boast about how much money they are making, doing this! The authors of this mess are slithering from failed investment banks to investment banks that are failing. The $2 billion Barclays Capital made last year should be confiscated to restore the balance to the public purse.
Citibank’s fees should be confiscated, too. The bank is bankrupt. We are the bank, ergo, these fees should go to us, not a bunch of ‘traders’ who make these damn ‘deals’. If they want to make money, they can pool their own capital and do it with that, not with taxpayer IOUs.
Warren Buffett’sBerkshire Hathaway Inc. posted a fifth-straight profit drop, the longest streak of quarterly declines in at least 17 years, on losses from derivative bets tied to stock markets.Fourth-quarter net income fell 96 percent to $117 million, or $76 a share, from $2.95 billion, or $1,904 a share, in the same period a year earlier, the Omaha, Nebraska-based firm said in its annual report. Book value per share, a measure of assets minus liabilities that Buffett highlights in his yearly letter to shareholders, slipped 9.6 percent for all of 2008, the worst performance since Buffett took control in 1965.
When a million crazed banking casino dealers play with infinite money flowing from a ZIRP central bank, anyone can get rich, quick, if they are insiders to this system. As it collapses, all the ‘geniuses’ go under, one by one.
I have a huge memory. I remember how, as this system collapsed, each time a sector fell, all the others would say, ‘This won’t affect us! We are solvent! We are profitable!’ And then one by one, they fall. I remember when the Bank of Japan, one of the major contributors to this catastrophe, claimed that Japan was not involved in this collapse and would feel no effects.
Japan is now in full collapse. I remember when JP Morgan claimed, they had no problems. Now, they are beggars for US taxpayer IOUs so they can barely stay afloat. Same with Citibank. On and on it goes: most of the hedge funds and investment funds that claimed to be above all this turned out to be Ponzi schemes and are collapsing faster than banks!
(Own report) – Through its nuclear alliance with Moscow, the German Siemens Corp. now has the perspective of participating in military nuclear projects. This is the outcome of the most recent talks held by the corporation’s leaders with the prime minister of Russia. According to these talks, contrary to the initial announcement, this rapidly initiated cooperation will not be restricted to the state-owned Atomenergoprom, which consolidates the entire civilian nuclear economy of Russia. It extends mainly to the Rosatom nuclear administration, which is also in control of the military nuclear sector. Rosatom has currently drawn public attention because it is completing the Iranian Bushehr nuclear power plant, whose construction had been initiated by Siemens. This new perspective for Siemens cannot come as a complete surprise. For over a year Siemens has held a considerable amount of shares in a Russian turbine producer that produces also components for nuclear submarines and the arms industry. The German-Russian nuclear alliance is projected to last for decades and is due to be contractually finalized this spring….Strategic PartnershipSiemens and Rosatom are further accelerating the development of their alliance. Last week, just a few days after the meeting in Moscow, Rosatom’s General Director, Sergei Kiriyenko, arrived in Berlin, seeking reassurances of the German government’s approbation and announcing finalized agreements for the end of April or the beginning of May. Kiriyenko explained that the objective is a “strategic partnership” covering at least 25 years. Together with Siemens, the intention is to become the leader on the world market in the construction of nuclear power stations. Besides the French Areva, the main rivals are the US-American-Japanese joint ventures, Toshiba/Westinghouse and General Electric/Hitachi. As kickoff for the German-Russian nuclear alliance, Moscow is suggesting that a measure be undertaken at a very symbolic location. The Russian Minister of Energy, Sergei Shmatko declared, Siemens should take its first step together with Russian companies by building a nuclear power plant in Kaliningrad, the former Koenigsberg.
Building has not stopped. Despite everyone screaming that Russia is collapsing, they are building because they still have a sovereign wealth fund. This is not an IOU system like the US has. The US wants to build nuclear power plants but can’t, anymore. Also, the German/Russian ties are still growing again due to Germany’s need to have contracts and business with others and the need to make a profit.
European Union leaders rejected pleas for an aid package for eastern Europe and EU funds for carmakers, bowing to German concerns over budget deficits as the economic slump deepens.
EU leaders vetoed a call by Hungary for loans of 180 billion euros ($228 billion) for ex-communist economies in eastern Europe, and told automakers such asGeneral Motors Corp.’s European arm to look to national governments for help.
“I would advise against taking huge numbers into the debate,” German ChancellorAngela Merkel told reporters at an EU summit in Brussels today. “I see a very different situation — you can compare neither Slovenia nor Slovakia with Hungary.”
Germany is refusing to take on the burden we are picking up in the US. The Germans understand the concept of ‘sovereignty’ and therefore, are NOT going to Russia and China for loans but are going there for DEALS. I can’t emphasize this enough! We can’t go to China and make a nuclear power plant deal. We don’t have the business, anymore.
We have to recognize that we need to develop businesses that are not all about piling on IOUs and borrowing money from nations with sovereign wealth, we need to do business with them, not make stupid paper deals! We need INDUSTRIES. And engineers, designers, systems creators, not bankers and lawyers. We don’t need more of them, we need what we are losing. Boeing, for example, one of our last export items, now makes over 70% of the plane parts in China, Japan and Europe, not here. We only assemble the parts here so we can have the fiction of Boeing being an American business.
The Bank’s governor, Mervyn King, will be granted approval by the Treasury within days to create up to £150bn in new money in the coming months to buy up everything from corporate bonds to government debt. It will pave the way for the Bank’s Monetary Policy Committee effectively to “start the presses” at its interest rate setting meeting this Thursday.
The move is the latest stage in the Bank’s efforts to prevent the economy from sliding towards deflation.
The MPC is likely also to cut interest rates at its meeting to a new unprecedented low of 0.5pc at its meeting this week, with some anticipating that it may reduce them to a nominal point just above zero.
The central bank of Britain is now going ZIRP, too. And is also running up much more in IOUs to keep a negative-flow banking system going. Not one penny of sovereign wealth from capitalist production is going into this. Marx is laughing his head off as his ghost wanders about the Marx Memorial Library in London.
And now for a WARNING to anyone buying gold:
February 27, 2009
by Brian Harring
With the collapsing American economy, many Americans are rushing to invest in gold; either coins or bar, and also silver. One of the most popular forms of this investment are American coins. Where there is a need, there is always someone to fill it and in this case, the filling consists of the massive counterfeiting of gold coins, silver coins, and even Swiss gold bars inChina. Initially, it appeared they were only faking Morgan dollars, but then it turned out they were also making $20 Liberty, and Indian Head gold $2.50, $5, and $10 coins, of all dates. Evidently, this is extremely easy with today’s computer-and-laser-die-cutting technology, and the fakes are being die-struck in vast quantities, not cast, and visually at least, are superb copies.
Buyer beware! There are a lot of cheaters and swindlers out there. In ancient times. people handling money would weigh it. We have to continue this tradition. Another reason why I say, ‘Libra is Gold.’ Honoring the weighing of the scales and the role of government in keeping weights honest: this is a good thing! This is why the modern metric system most of the world uses today was a product of the French Revolution.
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