Follow along now because it's going to get a whole lot worse before it gets better. From the Guardian in the U.K.:
The news broke before Wall Street opened on Friday and was greeted with predictable mayhem. It was, however, only the start of a weekend that would eventually see an agreement to sell Bear Stearns - worth $160 a share at its peak last year - to JP Morgan for just $2 a share.
The bankers were worried that what had happened to Bear Stearns might happen to them, so, by Sunday evening in New York, just minutes before Asian markets opened for the first time since the Bear bail-out, the Fed announced an extraordinary cut to its discount rate and opened its lending facilities to investment banks for the first time. (rest the rest here).
From CNN:
WASHINGTON, Mar. 19, 2008 (Thomson Financial delivered by Newstex) -- The Federal Reserve's rate cutting campaign is benefiting banks and financial institutions, but the interest rate declines have yet to pass through to the average American.
'If you are waiting for real interest rates to bail us out, its probably not going to happen that way,' said Bob Brusca of FAO Economics.
Even with the federal funds rate now at 2.25 pct, homeowners are seeing little relief as high interest rates on mortgages and declining house prices continue. Worsening the situation are banks, who are unwilling to loosen their lending standards. 'They too can see the collateral in the market is getting less and less,' Brusca said.
Some politicians have been reluctant to offer 'bailouts' to homeowners who made poor investments and lenders who were too loose in their standards. 'Meanwhile there's a hole in the ship,' Brusca said. Even as the Fed scoops water out of the metaphorical hull, water keeps pouring in 'because the government is not trying to fill the hole.' (read the rest here)
And on 11-08-07 we posted this here
Amazingly, analysts on the on the left, who have been following the scent of American imperialism, are meeting up with analysts on the right, who have been tracking American macroeconomics. Both are arriving at the same conclusion: the US economy is headed for serious trouble. Former Federal Reserve Chair Paul Volcker, who infamously jacked the prime rate up to 21 percent in 1981, now warns of a "75 percent chance of a dollar crash in the next five years." Asian countries hold approximately $2 trillion in dollars and dollar denominated securities. China has already announced its intention to diversity its foreign asset holdings, and India is considering a similar course. The Iranian oil bourse could be the pebble that starts an avalanche. Petrodollar Warfare will help you pick through the rubble.
IN OTHER WORDS: The government is using 400 BILLION dollars of YOUR tax dollars to bail out a bunch of rich folk and ain't doing squat for you or me! Now int the past a wholelot of folk didn't worry about this garbage because, hey what the hell, that will be my kids or my grandkids problem. Well wake up dudes and dudettes, cause it is our problem right now. And as soon as they can get oil denominated in "Euro's" we are toast! But then we can always invite China to a fire sail, hell they got all our money.
Jesus said: “Render unto Caesar the things which are Caesar’s, and unto God the things that are God’s” Matthew 22:21)
But he also made himself up a whip and took to whooping up on the money changers. Matthew 21:12, Mark 11:15, John 2:8
WHEN WILL WE TAKE UP THE WHIP? Or will we continue to allow America to be the new "robbers den"Add to Technorati Favorites
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