The army of paid hacks working for the major media are frightened by the rage of the masses, those pitiful people who live outside the bubble, those mere peasants who, just the other day, took literal flaming torches and stormed the government of Pakistan and forced the US-backed dictator to restore the Rule of Law. So it is here: our hacks want us to know, our bankrupt bankers need to be coddled and petted and fed very expensive French cuisine or they will perish! And French waiters will get no tips! And mistresses will have to work for a living and their wives can’t shop until we drop.
This is different from American International Group, beneficiary of more than $170 billion in bailout funds, paying bonuses to high-ranking executives who presided over policies that tanked the company and sent it running to Uncle Sam for succor.
Take sales meetings, which aren’t the same thing as paying bonuses to incompetents. If you have any concept of how business works, you know that you motivate salesmen with aspirational things like plush retreats for top producers. The cost is more than covered by the business the producers generate in trying to qualify for the trips.
Unlike President Obama, who warned, “You can’t go take a trip to Las Vegas . . . on the taxpayers’ dime,” I have no problem with Goldman Sachs’s plans to hold a conference there. I’ve just been to Vegas, and it’s a mess — housing, casinos and resort travel are heading downhill fast. Meeting there produces work for folks like taxi drivers, maids, and cabana guys — the kind of people we’re trying to help via stimulus legislation. Having Goldman move its meeting to San Francisco means more jobs in the Bay Area, fewer in Vegas. Does that help us as a country? I don’t see how.
Demonizing Goldman for its Vegas plans and Northern Trust for sponsoring a golf tournament is hurting taxpayers rather than safeguarding the money we’ve lent companies under the Troubled Assets Relief Program. Here’s why. The flogging being inflicted on TARP recipients has led a growing number of sound organizations (Goldman, Northern, U.S. Bancorp, M&T Bank, Iberia, and TCF Financial, among others) to talk about repaying their TARP money to avoid being stigmatized.
Here is my reply to this garbage: EMS News here!
We have an obligation to attack bankrupt organizations that are still acting as if they are solvent and thus, free to spend money on frivolities. Sponsoring golf games are under the heading of ‘frivolities’. Sending staff to very expensive resorts to have fun is also a ‘frivolity’ if the entity is bankrupt and the sales staff has nothing good to sell and if what they ARE selling—this is key, here—is being sold to the US taxpayers!
The entire system was loaded down with a lot of looting at the top. This is why it went bankrupt. When I was young, bankers and insurers didn’t need $50 million bonuses to do their simple jobs, for example. The luxurious lifestyle developed by these losers and dead beats didn’t appear out of thin air, after all.
It grew bit by bit, over the years. While the US public and private sectors went deeper and deeper into debt, as our trade deficit got worse and worse, day by day, while our general economy was deindustrialized, while this went on, the guys running the financial sector got richer and richer and ended up living like royalty.
Now, they whine because they can’t support French wine auctions, go to the finest resorts on earth or buy very expensive fashion model mistresses! Well, tough!
The ridiculous prices paid for expensive wine, women and song [remember how much Spitzer paid for his sex encounters???] is directly due to the bankers and others padding their incomes at our collective expense.
True, art auctions, the sales of private jets and yachts, the price of expensive prostitutes, the cost of mansions will now decline. Good. About time, I say.
I like it when people notice the many connections here. The US is running deep in the red due to the very things this poster, Mibrooks27 talks about. Yes, we can tax ‘services’ that are relentlessly being moved offshore along with nearly all of our industries except for when international entities like Toyota need to keep us quiet, so they put up a few token factories here, for political leverage.
The rage is incredibly intense over rewarding the very same people who destroyed our entire international financial systems and who are now running up vast charges against our future taxes. The major media are scared of this rage. It looks like AIG’s headquarters in Connecticut are being swamped with death threats and denunciations. I am not at all surprised. This is the normal human reaction when nobility or the rich get carried away with their power.
AIG and others of their ilk ran riot. They owned our political representatives from the President all the way down to the bottom. They ruthlessly used this power to twist the courts into servicing them, to corrode all restrictions and controls over the flow of money, the creation of debt and the disposition of public funds. They used their power of bribery to change laws to suit them so they could loot the system and enrich themselves.
Now, after wrecking absolutely everything, they want to be rewarded? This is insanity. They even dare to talk about ‘morals’ while living like Caligula. These goofy gnomes are outraged that we are outraged. More than one person has pointed out, the US taxpayers now are stuck with ownership of 80% of AIG. We should be the Board of Directors. And the consensus is nearly unanimous: we want the previous staff and especially, the executives, put in prison.
Executives forget their very name comes from the executioner’s axe. This is why they call their many bouts of firing the lowly staff, ‘Axing’ people. But the executioner also can swing down on the heads of the heads of corporate America! And if they deserve anything, they richly deserve to be executed. After a fair trial, of course.
Finance chiefs from the biggest developed and emerging economies pledged a “sustained effort” to end the global recession and to cleanse banks of toxic assets.
“We were seized by the fact that there was a sense of urgency,” U.K. Chancellor of the Exchequer Alistair Darling told reporters after the Group of 20 finance ministers and central bankers met in southern England yesterday.HAHAHAHA. U.S. counterpart Timothy Geithner said there was a “clear commitment to do what’s necessary, to keep at it, to get the economy on track.”
I must question the sanity of Geithner. The LAST thing our economy needs is to be kept on its present track. It has been off the tracks much of my long life. We are now off the cliff, as well. Going onwards is not an option for us.
Such promises marked a compromise at the end of a week in which U.S. calls for governments to spend more were rebuffed by euro-region ministers. The International Monetary Fund predicts the first global contraction in six decades and yesterday won a commitment to have its resources at least doubled to help it better fight the spreading turmoil.
The very first step when dealing with viral diseases is to kill off the germs. In this case, we haven’t even begun this process. Once we are rid of the germs, we have to restore the health of the organism. This requires rest and feeding. Feeding germs simply makes them grow worse. The previous rescues done in the last 35 years since Nixon broke the gold hinge on world trade, only made future problems much, much worse.
We now have an impossible snarl. We can’t fix things by spending money in the US. This simply moves forward the Chinese 50 Year Plan to bankrupt the US and become the sole world imperial power! Even though our trade partners dearly wish for the Old World Order of free trade and wild overspending and outrageous debt building based on faux interest rates based on fake inflation statistics, we can’t do this. The US has to survive. To protect ourselves, we must tell our allies and trade rivals, ‘No, we are NOT going to keep on doing this.’
Of course, the Chinese and Japanese will retaliate. They will dump US dollars and debts. SO WHAT!!!! This will force us to turn inwards and deal with several things: our ridiculous abuse of oil resources and rebuilding our own industrial base again, from scratch. Both things are excellent for our future survival so we may as well do it.
Bernanke May Need to Ramp Up Fed’s Asset Purchases
Chairman Ben S. Bernanke and Federal Reserve policy makers may have to ramp up their purchases of mortgage securities and other assets after the economy and job market deteriorated further since they last met.
It is obvious now, the queer creature created at Jekyll Island has finally become our owners as well as our bankers. They are buying up EVERYTHING. And this is bad. First of all, it is a private bank, not a public bank. Secondly, it is doing these things by tapping into our IOU public money via the fiction of ‘Treasuries’ which are NOT treasures at all but are future debts we have to pay.
The Federal Open Market Committee, gathering today and tomorrow in Washington, needs to redouble its efforts after the central bank’s balance sheet shrank 17 percent from a $2.3 trillion December peak, Fed watchers said. The retreat came even as Bernanke acknowledged the chance that the unemployment rate will exceed 10 percent for the first time in a quarter century.
“It takes massive balance-sheet expansion to generate significant easing in financial conditions,” said Andrew Tilton, an economist at Goldman Sachs Group Inc. in New York who used to work at the Treasury. “More needs to be done.”
In other words, the Fed will grow and thus, save us. But I remember the entire excuse for creating the Fed: it was to PREVENT bubbles and PROTECT us from recessions and depressions. The track record of this goofy organization is as stinky as AIG’s track record for securing insurance for industry and finances! Instead of examining this, the idiots who created bubbles want to fix bubbles by doing the exact same things that created the previous 6 bubbles and in addition to this, do it twice as much and twice as hard.
This week’s FOMC meeting could mark a shift toward more aggressive monetary expansion to fight deflation after demand waned for many of the Fed’s existing programs. One top consideration is an increase in the pace and size of a $600 billion program to buy bonds issued and backed by U.S. housing agencies such as Fannie Mae, analysts said.
So, the US government owns Fannie Mae and Freddie Mac after our gnomes ran up immense amounts of faulty loans to deadbeats who couldn’t pay the mortgage for even 2 years. And on top of this, 30% of the new refinances created this last three months went belly-up without the deadbeats paying even ONE month’s payments! And so the Federal Reserve will be the banker to the Federal Government who has to sell these deadbeat mortgages! This is Ouroboros, yet again. No one is CAPITALIZING anything.
The US government has no surplus at all. The Federal Reserve has few reserves to tap and already used up all our capital in that sector. Both are conspiring to create the ILLUSION of wealth by printing money and passing bad debts between each other, back and forth. This is intolerable and totally malfunctional.
The very first paper money ever issued on earth was in China, in the Sung dynasty, over a thousand years ago. At first, it worked. There was a ‘shortage’ of coins. By claiming to hold the remaining coins in a vault, the government issued papers against this supposed hoard. Within 50 years, inflation was raging, of course. This is because it costs the exact same amount for a government to print a $1 bill as it costs them to print a $1,000,000 dollar bill. Of course, it is a tremendous temptation to print the bigger bills by adding zeros, an effortless measure that reaps temporary profits.
But once people realize this, they demand more zeros when exchanging paper money. This is ‘inflation’. The Fed and the Treasury can both pretend they are buying and selling stuff to each other but this is all a farce and it fools no one except people who don’t understand how money works…which is most people, alas.
U.S. Bailouts Add to Risk of Depression, Rogers Says
“The U.S. is taking assets from competent people and giving them to incompetent people,” said Rogers, chairman of Singapore-based Rogers Holdings and the author of books including “Investment Biker” and “Adventure Capitalist.” “That’s bad economics.”
HAHAHA! Give Rogers a hand! That is a good line! And how did a bunch of incompetents get a hold of our entire financial systems? This is the real challenge. Is Rogers being used as a source of information by either the GOP or the DNC? No.
The U.S. government should let American International Group Inc., whose fourth-quarter loss was the worst in corporate history, go bankrupt, Rogers added in a Bloomberg Television interview today. Congress approved a $700 billion bank bailout package in October, and President Barack Obama’s administration has suggested it may need an additional $750 billion.
The U.S. is repeating the mistakes made by Japan in the 1990s and risks creating “zombie banks” by rescuing failed financial services companies that should have been allowed to go under, Rogers said.
Actually, the Japanese knew that the entire business of banking is a farce which is why they put in their ZIRP system and kept it there, no matter what the inflation rate was, no matter that it flooded the entire planet with funny money via the Japanese Carry Trade. People forget how zombies operate: they live and they BITE. They turn everyone who they visit, into zombies.
Now, what has happened to international finance ever since the Japanese got away with creating their ZIRP Zombies? Why, the contagion spread! Are the G20 demanding Japan stop? NO! And this is why our economic condition will worsen.
Englander, Barclays Capital Inc.’s chief U.S. currency strategist, estimates foreign purchases of American assets have reached record levels, with individuals buying $133 billion a month on average since November, based on government statistics. Central banks were net buyers of Treasuries for 29 of the past 30 weeks, a streak unmatched since at least January 1983, data compiled by Bloomberg show.
Again, what do ZIRP Zombies do? They eat things. They are part of the same dynamics that created the Derivatives Beast: they eat and eat money and wealth and the US has to create more money to feed into these monsters and it vanishes. The Japanese used their ZIRP Zombie banks to destroy our industrial base and to move themselves forwards as the top industrial giants on earth. But the downside to associating with Zombies is easy to spot: they eat everything and everything DIES! And so, global trade died.
Below is a good editorial from Gnazzo:
Douglas V. Gnazzo
Honest Money Gold & Silver Report
Board of Governors of the Federal Reserve
Flow of Funds Summary Statistics
Fourth Quarter 2008
Debt of the domestic nonfinancial sectors is estimated to have expanded at a seasonally adjusted annual rate of 6¼ percent in the fourth quarter of 2008, almost 2 percentage points less than in the previous quarter. The deceleration was evident in all sectors. For 2008 as a whole, domestic nonfinancial debt rose 5¾ percent, about 2¾ percentage points below the 2007 pace.
Household debt contracted at an annual rate of 2 percent in the fourth quarter, following two quarters of very weak growth. In the fourth quarter, home mortgage debt decreased at an annual rate of 1½ percent, while consumer credit decreased at an annual rate of 3¼ percent. In 2008, household debt increased ½ percent, 6¼ percentage points less than in the previous year.
Nonfinancial business debt rose at an annual rate of 1¾ percent in the fourth quarter, 2½ percentage points less than in the previous quarter. The slowdown was concentrated in commercial paper, loans, and commercial mortgage borrowing. The 4¾ percent increase in nonfinancial business debt in 2008 was over 8¼ percentage points less than in the previous year.
State and local government debt increased at an annual rate of 1¼ percent last quarter, and expanded 2¼ percent over all of 2008. Federal government debt surged at an annual rate of 37 percent in the fourth quarter, similar to the third-quarter pace. In 2008, federal government debt rose more than 24 percent, after a 5 percent increase in 2007. At the end of the fourth quarter of 2008, the level of domestic nonfinancial debt outstanding was $33.5 trillion; household debt was $13.8 trillion, nonfinancial business debt was $11.1 trillion, and total government debt was $8.6 trillion.
Look at the numbers! Gnazzo has many good graphs and charts with this editorial. The ONLY THING GROWING is Federal debt. A growth rate of 35% is pure insanity. This is on top of a 25% rate in 2008 which mostly came from the post-AIG bail out period. We are increasing global debt at a mad rate. This has only one end: bankruptcy. The Chinese are begging us to not go bankrupt, incidentally. They want us to do this in 15 years, not 2 years! After they remove the last of our industries with the assistance of the Japanese ZIRP Zombie banking entities.
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