Each depository institution can maintain zero reserves against its transaction accounts? You put it right there in writing! Sure you buried it across three bills, but you are now allowing for the possibility that banks can hold zero reserves!
No one can believe in the omniscience of central bankers anymore. Global financial markets are definitely crashing, even when the impact is momentarily softened through massive injections of artificial money -- "artificial" because the fiat
"You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out." -- Andrew Jackson, the seventh president of the United States, who said these fiery words to a delegation of bankers in 1832.
Mayer Amschel Rothschild, a very influential banker of the 18th Century, made the comment, “Let me issue and control a nation’s money and I care not who writes the laws.” That observation could not be more apropos for today’s economic climate.
Credit markets have seized up, tipping lenders toward insolvency and forcing U.S. and European governments to rescue five banks in the past two days, including Dexia SA, the world's biggest lender to local governments, and Wachovia Corp.
The next step of this panic could become the mother of all bank runs, i.e. a run on the trillion dollar plus of the cross border short-term interbank liabilities of the US banking and financial system as foreign banks as starting to worry about the s
The Fed threw $630 billion into the market before the vote, and yet the S&P 500 was down 40 handles anyway, and in fact tanked after the vote.
There is an additional danger associated with government intervention in the stock market. Once the feds become actual and potential holders of stock, they will exercise inordinate control over the companies themselves. As owners, they can influence
National Debt has increased a stunning $895 billion over the last 12 months (from Sept 26, 2007 to Sept 26, 2008). Shocking.
"I think you definitely lose money on this $700 billion structure," Whitney said. "There's no idea where house prices bottom, and as a result how can you make money on this transaction?"
A security is not worth what someone will pay for it, but what a mathematical model says it will be worth if held to maturity based on assumptions chosen by the banks. This is mark to make-believe.
The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.
After Hannibal had crossed the Alps and beaten the Roman army twice, the alarmed Roman Senate spent the nation's treasure and sent eight legions against the invader. Up to then, Rome had rarely thrown more than two legions into battle. But when t
The global financial system the U.S. designed had anticipated that American banks and financial firms would be the world's financial lifeguards; now those institutions are like exhausted swimmers a stroke or two away from drowning.
The Nazi Germany play book is being followed line by line.
The government may have to spend a nearly unlimited amount of money to bail out “the system.” We’re talking well north of a trillion dollars. That’s money the Feds don’t actually have. They have to borrow it. What if they can’t?
This is again a case of privatizing the gains and socializing the losses; a bailout and socialism for the rich, the well-connected and Wall Street.
In this video Karl Denninger explains why their is a complete lack of trust in the financial sector due to Fed involvement in the dismemberment of financial institutions not on it's favored list.
The question we all must ask ourselves is, what do we do if the Congress passes this $700 billion Bailout of Wall Street? Do we call a strike?
Joan Veon "In short, we have been set up! Laws were designed and passed to specifically get us into this position! We are the sheep, but our shepherd is not Moses, King David or the Great Shepherd".
I’ve been speculating all week that the pressure being used on the Congress to pass the Paulson Plan is the threat of Fed illiquidity. As of two weeks ago, the Fed had lent out more than $600 billion of its $800 billion balance sheet
His tactics are to carpet-bomb the banking system with federal funds. The upshot, in Jeffersonian terms, is that US taxpayers are about to be enrolled in an economic chain gang.
"Fast food is convenient. This $700 billion package must ease the concerns and build up confidence. But if you only take this, it doesn't agree with your stomach. You should think about Chinese slow cooking and slow food," he said, prom
For who cares if Goldman Sachs and Morgan Stanley endure if the issuance of $700 billion more in government bonds drives interest rates way up, diverts credit from the private economy, devalues the already sinking dollar...
“So now they try to solve the problem by having this credit bubble actually extended and I think the $700 billion will be like a drop in the bucket because the total credit market in the U.S. is something close to $60 trillion,and the CDS market of $
By Friday, after almost a week of marathon talks between Treasury Secretary Henry Paulson and key lawmakers in both parties, the working version was up to 102 pages.
This plan is nothing less than the full-scale humiliation of the middle & working classes in addition to the non-financial sectors to support the transition of the primary dealers into full-scale banking monoliths.
It is a disgrace that no professional economist was consulted by Congress or invited to present his/her views at the Congressional hearings on the Treasury rescue plan.
Judiciary Scuttles Motions Demanding U.S. Produce Evidence of Constitutional Authority: What Constitutional authority exists for the U.S. Government or Federal Reserve to use public (taxpayer) funds for definitively private purposes?
There is no nice way to say this, so I will be blunt: Our credit markets had contracted a hideous STD—a securitization transmitted disease—for which lowering the funds rate to negative real levels seemed to me to be not only an ineffective treatment