Moody's is lagging so far behind the times & REALITY, they've recently issued a warning to the Confederate States of America that the Confederate Dollar will be downgraded UNLESS they start winning some battles.
In the meantime, smart investors WORLDWIDE have ALREADY 'downgraded' the shytty American dollar MONTHS AGO.
Not that I do not believe the U.S. is burdened in beyond belief debt, refusing to do the right types of Keynesian moves, etc. that will lead this country to economic ruin...
but my immediate thought was do these credit rating agencies have more power than sovereign states?
We haven't seen even a fine, nothing on their inside ratings game on CDOs, not even from subprime, no major government investigations, such a bunch of economists, blogges and a few journalists bringing it up...
yet they can downgrade entire nations so their interest payments skyrocket or threaten it?
Yeah, in comparison of GDP to debt ratios, tax revenues to debt and so forth, how does the U.S. stack up to the rest of the world paying the Banksters?
Maybe they think they will give AAA to China and India who now have our industries and jobs?
The rating agencies don't control interest rates. More importantly, who are investors going to run to? Where is all that money going to go if America gets downgraded?
Besides, the rating agencies have proven themselves to be cowards when push comes to shove. I think this is an empty threat. They will continue to rate America AAA right up to our currency implosion.
Thats what is perplexing. No we won't guarantee them till you buy them but we'll pay out $138 billion a day or two later for no apparent reason other than because we are support someone who threw their money away?
My Senator is on the Senate Banking Committee and he has responded to me in the past with personal responses so I am going to run this by him also.
Its interesting that JP Morgan would bail out a business they helped crush the Friday before isn't it?
There were some fancy sleight of hand moves made that weekend and the first few days also.
I imagine the Fed was not authorized to extend any credit to Lehman never mind any none bank especially one that already declared bankruptcy but its also highly likely there was no such instrument as a Federal Reserve backed advance to a bank aiding a bankrupt company either.
One cannot believe that the powers that be decided to let Lehman go under without providing for themselves to get everything they were owed out from the burning house before the fire department and arson investigators arrived.
October 5, 2008
JP MORGAN has been accused by its Wall Street rivals of dealing the final hammer blow that forced Lehman Brothers into collapse in a sensational claim that threatens to spark a colossal legal battle.
The giant American bank is alleged to have frozen $17 billion (£9.6 billion) of cash and securities belonging to Lehman on the Friday night before its failure.
According to Lehman’s biggest creditors, this was what precipitated the liquidity crisis that embroiled the firm, forcing it into Chapter 11 bankruptcy protection on the morning of Monday, September 15.
This was handled by the New York Fed also. I saw this that Monday or Tuesday the week Lehman dumped and did a double take.
I'm betting this was arranged over the weekend at the September 13-14 Whitehouse meetings and the money went right back to JPMorgan and then was 'repaid' by the Fed giving Morgan $138 billion to shore them up.
Can't happen? How did Citigroup hide the early 90's government bailout from investors? Their books are cooked. No other way they can hide their real financial health and huge influxes of money in the form of a bailout.
Certainly all conjecture but has anyone ever heard of this type of Fed transaction?
This is from Sept. 2008 for anyone else reading it and that is strange to give such sums when a business is in bankruptcy. It says it was an advance and was repaid to "settle transactions" but without knowing the specifics ...
your guess is as good as mine.
It was such a fine idea tying all our boats together in the spirit of globalization, except when one boat sinks it drags the rest underwater. Ooops. The double dip will be upon us by late summer, Commercial Real Estate is collapsing, more Alt-a loans are defaulting, the census temp workers will be laid off, and the evidence of widespread fraud by Lehman, Geithner, Bernanke, Goldman and the usual suspects will become common knowledge to the point where some people will pull money out of the rigged game of Wall Street. The government will continue to pour money into Wall Street through its backdoor/inside connection with Goldman & other big banks but it will become so glaringly obvious that only the greedy fools of Wall Street will continue to believe in the bull market of 2010.
Between Peak Oil, Peak Aging, and outsourcing, the economy doesn't have a chance - the fraud is just the normal looting that takes place at the end of an empire, of course Wall Street has figured out a way to amplify it to nose bleed levels, but thats what the big crooks do for a living.
The mere demographics of our aging population, our declining output of oil and gas, and the wholesale outsourcing of entire economic sectors like manufacturing to overseas markets, means this little jitney is barrelling down the mountain with no brakes and no steering wheel. I'm investing in canned goods, and the only silver lining I expect to find is in the silver coins I've been buying. I said good bye to wall street when they said goodbye to main street, its food and silver from here on out.
Good luck and God bless, the times ahead will be very trying and the new nation will not much resemble this one.
Between this vote and the situation in Greece I can see where that would frighten some of them.
What happens in Iceland though without an outside aid package?
Nuclear Winter?
Detroit just sold $250 million in bonds with no financial statements since 2008 and a warning attached that they are danger of filing Chapter 9 bankruptcy yet they sold out in less than 6 hours and they could have sold twice that amount since $500 million was offered.
So no matter how dire the situation here is borrowing continues unabated. I mean selling long term bonds to pay this years shortages doesn't seem like a credible strategy when overseas countries with less debt percentage wise are being told they have to cut expenses to get help.
We seem bullet proof as long as we continue to borrow more more more and Wall Street loves it so far.
Now if I loan someone money will the Fed pay me back later?
It is beyond strange that the Fed needed someone to act for them here.
My tinfoil hat tells me this was a ruse to disguise a cash payment to JPMorgan and maybe others that went through Lehman Brothers somewhat similar to the AIG back door payments imo.
JPMorgan Chase & Co. gave $138 billion this week in Federal Reserve-backed advances to the broker dealer unit of Lehman Brothers Holdings Inc. to settle Lehman trades and keep financial markets stable amid the biggest bankruptcy in history, according to a court filing.
One advance of $87 billion was made on Sept. 15 after the pre-dawn bankruptcy filing, and another of $51 billion was made today, Lehman said in court documents. Both advances were made to settle securities transactions with customers of Lehman and its clearance parties, according to the filing.
The advances were necessary ``to avoid a disruption of the financial markets,'' Lehman said in the filing.
The first advance was repaid by the Federal Reserve Bank of New York on the night of Sept. 15, Lehman said. JPMorgan said in a statement that the $51 billion advance was also repaid and the process will zero out the advances at the end of each day.
There are no constraints left to halt America's slide into a totalitarian capitalism. Electoral politics are a sham. The media have been debased and defanged by corporate owners. The working class has been impoverished and is now being plunged into profound despair. The legal system has been corrupted to serve corporate interests. Popular institutions, from labor unions to political parties, have been destroyed or emasculated by corporate power. And any form of protest, no matter how tepid, is blocked by an internal security apparatus that is starting to rival that of the East German secret police. The mounting anger and hatred, coursing through the bloodstream of the body politic, make violence and counter-violence inevitable. Brace yourself. The American empire is over. And the descent is going to be horrifying
There is now disclosed a veritible litany of outrageous misdeeds by the investment banking community. And the shock value of each one dissipates as the number grows greater over time. Does anyone here truly believe that the pattern we've been witnessing will ever respond to the exercise of the franchise? If so, why? Why would it be that a Congress and President owned lock, stock and barrel by the interests have even the slightest concern for the public will? Do they now? Have they recently? The American people wish to see an even hand extended by the United States in its dealing with the Middle East peace question yet Vice President Bo-Jangles not unexpectedly gets his nose rubbed in it with this week's settlement insult and that because even foreign nationals know that so much a creature of lobbies are our politicians that nothing will come of these slights. Who is it that really wishes to engage this charade any longer by participating? Not me, thank you. I'm gone and have been so since 1992. Wake me for the general strike, kindly.
which can be directly touched on by referencing Veblen's differentiation between industry and business. According to Veblen, industry creates wealth, while business accumulates and manipulates wealth. What we've done in the U.S for the past half century is churn out tons of business managers, but hardly any industrialists.
We compounded the problem by deregulating finance and giving favorable tax treatment to debt and capital gains, from which emerged the socially useless mergers and acquisitions booms, the even more harmful leveraged buy outs, and the corporate raider. Then, to top it off, we lavished praise and wealth on the manipulators of wealth, while deriding the creators of wealth.
I also think a "country club mentality" of hostility to labor set in. It obviously didn't help that Cosa Nostra was allowed to take over many of the unions after World War 2 (I think it's Michael Rupert who delves into that a bit, and asserts it was the pay off for the intelligence assistance the mob provided in the Sicilian and Italian campaigns in World War 2). But American management clearly becomes bitterly hostile to labor by the late 1960s, and by the 1980s is quite happy to sell the U.S. industrial base down the river to get cheaper labor overseas - and screw over American labor in the bargain. Jeff Faux, in his book The Global Class War, has some outrageous quotes from business managers, including why they sided with Reagan, even though Reagan refused to do anything about unfair trade practices in steel: because Reagan was cutting their taxes.
What all this adds up to is that anyone who had the misfortune of thinking they could make a good living in manifacturing, while the rest of the U.S. tooks its acid trip down the rabbit hole of "post-industrial society," was pretty much shunned as a fool and a wierdo. The smart kids from Yale and Princeton and Harvard went to Wall Street, not to the bases of old wealth like Weyerhauser or Phelps Dodge.
They own the internet domain anthembluecrosssucks.com, not leaving any stone unturned are they?. BTW: the registration was done through an Australian registrar, just to stay of of sight. Talk about devious! Is this the image a company that we are supposed to entrust our health to is supposed to act like?
THE PROOF: http://www.whois.net/whois/anthembluecrosssucks.com
I've seen more than one article/post try to claim something is completely out of the woods due to a sudden percentage change over a month or even a year....
never looking at the absolute numbers themselves or the ratio to overall economic sectors.
The one that scared the shit out of me is seeing financial, our Banksters being 63% of the economy.
That's just unreal. But yeah, good to point out one spike up does not an aggregate or absolute make!
I think our manufacturing friends plain do not have enough bribe money, in comparison esp. to the Banksters to have a policy/legislation impact in D.C....
They really make a hell of a lot of sense, not only for jobs but also the overall national interest....
a hell of a lot of posturing, but how about the details? It seems they are busy attacking labor instead of currency swaps and loan-lease deals to not only hide debt but create gobs more of it.
This is so disturbing because I know we have all sorts of similar deals in the U.S., esp. with municipalities and how under the radar is this, i.e. actual hidden and increased debt through selling off public assets or leasing them and getting a loan and so on?
See Hazel Henderson's editorial "A win-win plan for Iceland" at www.ethicalmarkets.com/2010/03/10/a-win-win-plan-for-iceland-britain-and.... There are definitely better options that will benefit everyone involved.
Moody's is lagging so far behind the times & REALITY, they've recently issued a warning to the Confederate States of America that the Confederate Dollar will be downgraded UNLESS they start winning some battles.
In the meantime, smart investors WORLDWIDE have ALREADY 'downgraded' the shytty American dollar MONTHS AGO.
Here is something from Krugman's blog, Dean Baker's new, soon to be famous term, China's water pistol for what is pointed at the U.S. head.
Krugman pulls out some debt info, so you can see China is more of an idle threat. Backs up the op-ed.
Not that I do not believe the U.S. is burdened in beyond belief debt, refusing to do the right types of Keynesian moves, etc. that will lead this country to economic ruin...
but my immediate thought was do these credit rating agencies have more power than sovereign states?
We haven't seen even a fine, nothing on their inside ratings game on CDOs, not even from subprime, no major government investigations, such a bunch of economists, blogges and a few journalists bringing it up...
yet they can downgrade entire nations so their interest payments skyrocket or threaten it?
Yeah, in comparison of GDP to debt ratios, tax revenues to debt and so forth, how does the U.S. stack up to the rest of the world paying the Banksters?
Maybe they think they will give AAA to China and India who now have our industries and jobs?
The rating agencies don't control interest rates. More importantly, who are investors going to run to? Where is all that money going to go if America gets downgraded?
Besides, the rating agencies have proven themselves to be cowards when push comes to shove. I think this is an empty threat. They will continue to rate America AAA right up to our currency implosion.
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I found a forum that appears to discuss nothing but the Lehman bankruptcy. I'm trying to join so I can ask about this transaction.
The New York Fed that weekend torpedoed a Barclay Bank bailout apparently. A good short discussion of that below
WSJ Blog Discussing the Botched bailout/buyout the weekend before the collapse
Thats what is perplexing. No we won't guarantee them till you buy them but we'll pay out $138 billion a day or two later for no apparent reason other than because we are support someone who threw their money away?
My Senator is on the Senate Banking Committee and he has responded to me in the past with personal responses so I am going to run this by him also.
Because I agree with you, this does not make much sense on the surface and thus is smelly, but why and for what is the question I guess.
Its interesting that JP Morgan would bail out a business they helped crush the Friday before isn't it?
There were some fancy sleight of hand moves made that weekend and the first few days also.
I imagine the Fed was not authorized to extend any credit to Lehman never mind any none bank especially one that already declared bankruptcy but its also highly likely there was no such instrument as a Federal Reserve backed advance to a bank aiding a bankrupt company either.
One cannot believe that the powers that be decided to let Lehman go under without providing for themselves to get everything they were owed out from the burning house before the fire department and arson investigators arrived.
October 5, 2008
TimesOnline October 2008 Article Here
This was handled by the New York Fed also. I saw this that Monday or Tuesday the week Lehman dumped and did a double take.
I'm betting this was arranged over the weekend at the September 13-14 Whitehouse meetings and the money went right back to JPMorgan and then was 'repaid' by the Fed giving Morgan $138 billion to shore them up.
Can't happen? How did Citigroup hide the early 90's government bailout from investors? Their books are cooked. No other way they can hide their real financial health and huge influxes of money in the form of a bailout.
Certainly all conjecture but has anyone ever heard of this type of Fed transaction?
This is from Sept. 2008 for anyone else reading it and that is strange to give such sums when a business is in bankruptcy. It says it was an advance and was repaid to "settle transactions" but without knowing the specifics ...
your guess is as good as mine.
It was such a fine idea tying all our boats together in the spirit of globalization, except when one boat sinks it drags the rest underwater. Ooops. The double dip will be upon us by late summer, Commercial Real Estate is collapsing, more Alt-a loans are defaulting, the census temp workers will be laid off, and the evidence of widespread fraud by Lehman, Geithner, Bernanke, Goldman and the usual suspects will become common knowledge to the point where some people will pull money out of the rigged game of Wall Street. The government will continue to pour money into Wall Street through its backdoor/inside connection with Goldman & other big banks but it will become so glaringly obvious that only the greedy fools of Wall Street will continue to believe in the bull market of 2010.
Between Peak Oil, Peak Aging, and outsourcing, the economy doesn't have a chance - the fraud is just the normal looting that takes place at the end of an empire, of course Wall Street has figured out a way to amplify it to nose bleed levels, but thats what the big crooks do for a living.
The mere demographics of our aging population, our declining output of oil and gas, and the wholesale outsourcing of entire economic sectors like manufacturing to overseas markets, means this little jitney is barrelling down the mountain with no brakes and no steering wheel. I'm investing in canned goods, and the only silver lining I expect to find is in the silver coins I've been buying. I said good bye to wall street when they said goodbye to main street, its food and silver from here on out.
Good luck and God bless, the times ahead will be very trying and the new nation will not much resemble this one.
Between this vote and the situation in Greece I can see where that would frighten some of them.
What happens in Iceland though without an outside aid package?
Nuclear Winter?
Detroit just sold $250 million in bonds with no financial statements since 2008 and a warning attached that they are danger of filing Chapter 9 bankruptcy yet they sold out in less than 6 hours and they could have sold twice that amount since $500 million was offered.
So no matter how dire the situation here is borrowing continues unabated. I mean selling long term bonds to pay this years shortages doesn't seem like a credible strategy when overseas countries with less debt percentage wise are being told they have to cut expenses to get help.
We seem bullet proof as long as we continue to borrow more more more and Wall Street loves it so far.
Now if I loan someone money will the Fed pay me back later?
It is beyond strange that the Fed needed someone to act for them here.
My tinfoil hat tells me this was a ruse to disguise a cash payment to JPMorgan and maybe others that went through Lehman Brothers somewhat similar to the AIG back door payments imo.
Bloomberg Story Here
.
Read the entire article here. It is Chris Hedges at his thought provoking best.
There is now disclosed a veritible litany of outrageous misdeeds by the investment banking community. And the shock value of each one dissipates as the number grows greater over time. Does anyone here truly believe that the pattern we've been witnessing will ever respond to the exercise of the franchise? If so, why? Why would it be that a Congress and President owned lock, stock and barrel by the interests have even the slightest concern for the public will? Do they now? Have they recently? The American people wish to see an even hand extended by the United States in its dealing with the Middle East peace question yet Vice President Bo-Jangles not unexpectedly gets his nose rubbed in it with this week's settlement insult and that because even foreign nationals know that so much a creature of lobbies are our politicians that nothing will come of these slights. Who is it that really wishes to engage this charade any longer by participating? Not me, thank you. I'm gone and have been so since 1992. Wake me for the general strike, kindly.
which can be directly touched on by referencing Veblen's differentiation between industry and business. According to Veblen, industry creates wealth, while business accumulates and manipulates wealth. What we've done in the U.S for the past half century is churn out tons of business managers, but hardly any industrialists.
We compounded the problem by deregulating finance and giving favorable tax treatment to debt and capital gains, from which emerged the socially useless mergers and acquisitions booms, the even more harmful leveraged buy outs, and the corporate raider. Then, to top it off, we lavished praise and wealth on the manipulators of wealth, while deriding the creators of wealth.
I also think a "country club mentality" of hostility to labor set in. It obviously didn't help that Cosa Nostra was allowed to take over many of the unions after World War 2 (I think it's Michael Rupert who delves into that a bit, and asserts it was the pay off for the intelligence assistance the mob provided in the Sicilian and Italian campaigns in World War 2). But American management clearly becomes bitterly hostile to labor by the late 1960s, and by the 1980s is quite happy to sell the U.S. industrial base down the river to get cheaper labor overseas - and screw over American labor in the bargain. Jeff Faux, in his book The Global Class War, has some outrageous quotes from business managers, including why they sided with Reagan, even though Reagan refused to do anything about unfair trade practices in steel: because Reagan was cutting their taxes.
What all this adds up to is that anyone who had the misfortune of thinking they could make a good living in manifacturing, while the rest of the U.S. tooks its acid trip down the rabbit hole of "post-industrial society," was pretty much shunned as a fool and a wierdo. The smart kids from Yale and Princeton and Harvard went to Wall Street, not to the bases of old wealth like Weyerhauser or Phelps Dodge.
They own the internet domain anthembluecrosssucks.com, not leaving any stone unturned are they?. BTW: the registration was done through an Australian registrar, just to stay of of sight. Talk about devious! Is this the image a company that we are supposed to entrust our health to is supposed to act like?
THE PROOF: http://www.whois.net/whois/anthembluecrosssucks.com
I've seen more than one article/post try to claim something is completely out of the woods due to a sudden percentage change over a month or even a year....
never looking at the absolute numbers themselves or the ratio to overall economic sectors.
The one that scared the shit out of me is seeing financial, our Banksters being 63% of the economy.
That's just unreal. But yeah, good to point out one spike up does not an aggregate or absolute make!
I think our manufacturing friends plain do not have enough bribe money, in comparison esp. to the Banksters to have a policy/legislation impact in D.C....
They really make a hell of a lot of sense, not only for jobs but also the overall national interest....
So, why is it they are ignored frankly?
a hell of a lot of posturing, but how about the details? It seems they are busy attacking labor instead of currency swaps and loan-lease deals to not only hide debt but create gobs more of it.
This is so disturbing because I know we have all sorts of similar deals in the U.S., esp. with municipalities and how under the radar is this, i.e. actual hidden and increased debt through selling off public assets or leasing them and getting a loan and so on?
See Hazel Henderson's editorial "A win-win plan for Iceland" at www.ethicalmarkets.com/2010/03/10/a-win-win-plan-for-iceland-britain-and.... There are definitely better options that will benefit everyone involved.
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