Panics ‘R’ Us

The Obama Adminstration undertake this Sh.ts as below.

The Outstanding Public Debt as of 30 September 2008 under Bush 10 Trillion, a US History.
The Outstanding Public Debt INTEREST for the US Defense 30% as of 30 September 2008.
The Outstanding Public Debt INTEREST for US Treasury for Bond and Notes issued with 30% for 5 Years Guarantee as of 30 September 2008.

The Outstanding Public Debt as of 29 Jun 2009 at 11:40:49 PM GMT is $ 11,399,394,698,554.

For Financing Obama Stimulus $787-billion ,a New US Bond and Treasury is now being Auction and Raise with a promise Notes and Guarantee to China as request from Premer Wen Jia Bao,which China already hold almost One trillon US treasury Bond and Notes,in which US already owes these 3 top list of Borrowers ,Japan US 650 Billion,Russia US 137 Billion others like Arabs on smaller amount.

Just imaging the Interest alone for Obama Adminstration and Americans Tax Pay needs to pay?

So Samuelson dont give your GOP craps here !!!!

Continued....

We are repeating history ladies and gentlemen. The federal government (through the Federal Reserve) plays thief by night and policeman by day, robbing our wallets and purses by causing economic bubbles and crashes, and then coming to our rescue the following day, blaming the popular members of society's untrustables for the crime. Of course Wall Street bankers are usually crooked scum but their vileness is dwarfed by the entity that which, many times, enables them to do what they do: the Federal Reserve. I encourage you all to the explore these ideas for yourselves. To start, I suggest Thomas Wood's "Meltdown", Ron Paul's "Revolution", and Robert Murphy's "The Politically Incorrect Guide to the Great Depression and the New Deal". Call your Congressman and ask he or se to support HR1207, a bill currently in the House which would allow Congress to audit the Federal Reserve so we can find out when THEY are doing with OUR money!

Continued...

Present day. The housing market is in shambles. Everyone and the boogeyman is blamed for causing such a horrific turn of events.The reckless free market is blamed. The greedy Wall Street business man is vilified and damned by everyone including our president, who claims we need tighter controls over what these horrible men are doing. Like in the 1930's, the government is going to come to our rescue. No one discusses the fact that the Federal Reserve, like in the 1920s, embarked on a policy of easy credit through incredibly low interest rates for nearly a decade. No one mentions how the sub-prime mortgage legislation helped funnel this easy credit into the housing market. No one realizes the glaring similarities between the 1920's and the 2000's in terms of governement monetary manipulations. So, of course, when the crash happens, everyone is surprised and confused. Yet, no one questions what role the Federal Reserve may have played in this episode. No one questions whether or not the FDIC encourages banks to be risky because they are guaranteed to be saved by the Federal government (with our tax dollars). Ladies and gentlemen, we can now begin to see the major reason for our current and (past) economic crises: the reckless, cheap credit provided the Federal Reserve Bank. Only an entity of this size and magnitude can exert such enormous influence on the market. Claiming that huge numbers of banks and businessmen "just did it" is like firmly believing that it is highly probable that all the drivers approaching a busy, four-way intersection could decide, all at once, to run the red light. The result would be ridiculous, just like the belief that it could happen. But what if the drivers approaching that same intersection saw green lights? Ahhhhh now we begin to see how such huge numbers of banks, borrowers, businessmen, investors, and builders can all be duped at once, just like the drivers who see a green light. The Federal Reserve, with its manipulations to provide such cheap, easy credit, provided the greenlight and the means for all these individuals to OVER-invest. However, since the boom isn't real because the interest rates aren't real, the huge demand for these products (houses) isn't real either, but more like a kind of "sugar high" experienced by the economy as a result of the easy access to cheap credit.

Articles like this one demonstrate what limited perspectives we as Americans have on issues like these. We are provided, through press and television, all sorts of reasons for the current recession: the repo market, greedy investors, risky lenders, sub-prime mortgage legislation, etc.. None of these addresses the true cause of the recession. Blaming the recession on something like the repo market is like blaming a runny nose for causing a cold. The repo market, like the runny nose, is merely a SYMPTOM. To determine the true cause (or at least gain a better understanding of it) we must ask ourselves what prompted so many individuals across so many different sectors of business to engage is such risky investments and lending practices for such a prolonged period of time. How does such a runaway train get started in the first place, and how are so many people able to jump onboard as it continues toward a path of destruction? Before we do that, join me in taking a closer look at another period in American history worth examining in light of our current economic situation: the Great Depression.

The Roaring 20's, the golden age of America's 20th century rise to power. Industry output, jobs, and wages rise steadily. The standard of living in American is rising accordingly. The newly founded Federal Reserve Bank, America's central bank and monetary monopoly, engages in a practice of providing incredibly cheap credit (lower interest rates) by inflating the money supply. In fact, the Fed is inflating the money supply so much that the overall price fall we would expect to see during this time period (because of the gold standard) is completely nullified. Keep in mind how vigorously the economy is operating at this point. This gives some idea of the inflationary measures taken by the Fed during this period. Everyone has access to credit (sound familiar?). In fact, people are suspending their usual lending and borrowing practices because the credit is so cheap. Any man would be insane not to invest money provided at such low interest rates. Then, October 1929 hits. The economy can no longer sustain this "sugar high" boom provided by the Federal Reserve's manipulation of the interest rates. It collapses in a big big way as we all know. In swoops FDR to provide us with BOATLOADS of legislation to "save" the country. He creates the FDIC, which will act as a "lender of last resort" to failing financial institutions, essentially a promise that the government will use tax payer dollars to prop up failing banks.

We have just entered the worst economic depression in history. We ain't begun to see the pain yet.

This article proves something. It was not real financial crisis.
Last year panic on the market was organized by Democrats. It was last resort to keep Obama's sinking ship afloat, and it worked. Supportive bankers all at once declared finannsial troubles - now we know it was not so bad, market improved in the first quater without any bailout. And we know that loyal CEOs were rewarded with generous bonuces by Obama administration.
History will prove that in self-interest Democrats betrayed their own country.

Unfortunately with banking the slime tends to rise to the top. In terms of greed and arrogance, this industry has earned its bad reputation and then some. While no one will bet that these people won't find some way to try to game any system put in place (as that's their nature), that's not the point. More regulation is clearly needed. The safeguards put in place with FDR prevented further panics for about 50 years until Reagan and the Republicans started dismantling them. Democrats would sometimes go along on specific votes, but the GOP had it written into the party ideology. Things will settle down when Dems go back to regulating (especially the systemic risks) and bankers use the GOP as a mouthpiece to perpetually complain, with voters paying it all no mind. That's basically what we had in the 50s and 60s, back when the USA used to make things, and financials weren't some 42 percent of all corporate profits. How can that kind of lopsidedness be sustainable in a healthy economy? It's a huge red flag that we're in a bubble.

I will not disagree that there will always be financial ups and downs. However, lack of regulation is the cause of this huge financial crisis. This is not the first time deregulation led to horrendous financial mismanagement, followed by regulation.

Will it be the last? That depends on how many times it takes for us to learn the lesson that the money handlers need oversite.

What if, indeed. "The sky will probably fall sometime although I don't know when. But when it happens, I'll tell you why. O, if only my voice in the wilderness had been heard."

Why listen to Buffett, Gates, Volker, et al, when there are people like Samuelson (great syntax chops!) ready with all the questions ("don't need to show you any stinkin' answers!")?

"The problem wasn't a lack of regulation; it was a lack of imagination."

There you go.

Thanks Bob. We'll call you.
Next.

This is old news, But I am glad you are starting to get the old news some air time.

How's that HOPE and CHANGE working out for those who have lost their job, home, retirement and soon health care?