then Philippines, Vietnam, and Indonesia (which it hit worst of all).
followed by South Korea and to a lesser extent Taiwan and Japan.
Months later it would bring down Russia, which also brought down LTCM.
What most people don't remember is that the risks continued in the system until Brazil was forced to devalue in January 1999. This caused a recession in South America which effected its largest trading partner - Argentina.
Bernanke's college professor said 'we are doing everything possible to return to just before the crash'.
We must re inflate the bubble in order to maintain the status quo. Its that simple. Bail out the wealthy and blame subprime mortgages and welfare for the crash. Now that Bush is out of office drink the kool aid and blame Obama for everything. Its a very simple formula. Not that Obama has done much to pull 'us' out of this but he certainly didn't get us here.
I also love the right wing mantra that Fannie and Freddie were mostly responsible when they couldn't buy subprime mortgages by law. What killed them was 'AAA' rated CDO's filled with subprimes that were garbage sold by banks.
This really falls into the category of a non-story story -- although I appreciate the reporter at (I think it was Politico) who brought this to light (again).
They've been doing this since the Wall Streeters created and founded the American intelligence establishment dating from around WWII. They not only bounce back and forth between the top directorate jobs, but they continue working at Wall Street while working at the various intel agencies --- actually now private contractors, since the majority of the American intel community has been privatized.
Example: Stephen Friedman -- former top guy at Goldman Sachs. On several intelligence advisory boards of both Bush and now Obama administrations (he was the guy who had to leave the NY Fed chair position as he "appeared" to be involved with insider trading).
He is also involved with other intel-affiliated organizations, including the CIA's venture capital firm, In-Q-Tel, as well as having been on past intelligence boards (NRO reform panel, etc.) and is either involved with the Markle Foundation (an intel-type foundation as intel people bounce back and forth from that foundation to the CIA, etc.) and/or the Center for a New American Security (those two, Markle and CNAS are intimately connected).
An excellent accidental reference on the Financial-Intelligence Complex is the section of chapters on the Kennedy presidency from Richard Parker's outstanding bio on John Kenneth Galbraith (it is almost inadvertent since he's really not covering this subject -- it just becomes apparent with a reading of it).
A little known recondite fact is that during the first Reagan Administration, when he appointed Wall Streeter Casey as CIA director, Casey immediately moved to classify the output from their earth resource recon satellites, and freely handed said information (which had always been open to the public) over to his Wall Street investment cronies.
And the latest move to have full access to SWIFT, begun by the Bush administration and now successfully rendered by the Obama administration, isn't really about that there global war on terror, but simply financial intel.
Financial intel is what it is always about. Always.
I somehow missed that one, really a tremendous read.
And I'm not surprised at Greenberg's response -- yet another in the infinite amount of indicators as to AIG's culpability in the meltdown and continuing economic downturns.
Not to worry, though. While at the Starr Foundation, Hank has been sure to support "news" programs to bolster Wall Street's accidental perfidy.
First I think the blame should be put where it belongs: on the Central Banks and the World's Elite. They were the ones that destroyed the US economy through offshoring jobs and factories.
I say we take every dime back from TARP, TARPII etc (e.g., about 25 Trillion in reality) and give about $150,000 to each LEGAL AMERICAN CITIZEN. They will have to then pay off all debt (mortgage, credit, student loans etc.).
Next we put forward Basic Income Gauruntee's (Richard Cook), Basic Pension Gauruntees (William Grieder) and more debt forgiveness as necessary (Micheal Hudson).
Next we polish up our nuclear arsenal to ensure no external problems from China. Having done this we can retrench all the money wasted on defence . . . at least cut it by 50% over the next 10 years.
Bottom line. We got screwed by these people and now they have to pay. No more foreclosures or evictions for at least 10 years while we analyse the "crime scene" and determine how we achieve a sustainable economy.
There is still hope.
For more go to my web and check out the "New Agenda for America."
Surely you had this account for some time because new accounts are on manual approval. Well, glad you're on.
Yeah, we try and i certainly try to dot all i's and cross all t's when I feel fairly "CT" on something...
Paul Farrell on CBS Market watch I notice he writes these heavy doomsday sorts of opinion pieces...but....no statistics, no details and things need to be heavily verified...
else we'll turn into some sort of online blog version of the Glenn Beck show. ;)
I don't know if you saw this but our poorly paid CIA experts are moonlighting for big business, hedge funds and one cited area was lie detection.
So, I can imagine Paulson and others have detailed training on how to not signal body language, facial ticks and so forth to indicate they are lying scum.
;)
That said, for every lie, there sometimes is a grain of truth and I'm convinced China is waging economic war against the U.S. at least and Russia...that wouldn't surprise me either.
So, I would not be surprised that this particular story is true.
just by looking at your own paycheck stub. 27% seems more in line, plus on personal income, SS has a capped amount, around $105k (or so) and then above that isn't taxed.
So, yeah, I agree, but even the GAO can be pressured.
Want to see something on derivatives and the political attack on the GAO as a result?
interview with ex-GAO guy who did the 1995 GAO report on the derivatives ponzi scheme, time bomb. Yes, our lovely government knew about this way back when.
They cut funding to the GAO and I am sure they are probably pressured for you are right, they are the last objective hold out in many ways.
But it does seem that instead of paying attention to them, their damning reports go ignored (as do other agencies).
I saw Hank Paulson claim China and Russia were colluding to collapse the U.S. through their treasury holdings but if they are the primary lender on GSEs..
But at least that devout religionist, Hanky Paulson, didn't swallow any of those meany sleeping pills. What devotion!!!!!
Geez, that guy is such a creepazoid phoney, and so far he has failed to establish any veracity whatsoever in his public pronouncements (since so many of them have turned out to be lies).
While I wouldn't doubt Russia might have done that, given the context. Recall if you will, the Georgian president met several weeks before with Karl Rove at a international summit at Crimea, then he (Georgia) next attacks South Ossetia in the middle of the night, killing thousands of civilians with their indiscriminate bombing -- including the Russian peacekeeping force stationed there.
Correct. The dollar is based upon the mortgage loan market, and that's why they are propping it up (I've spoken with at least four individuals over the past six months who have received zero-down payment mortgage loans, and I don't get out all that much).
But I wouldn't describe the system so much as "socialized neo-facism" as a socialist plutocracy (Michael Parenti's term): socialism only for the ultra-rich, while the rest of us are on our own.
They hope to gradually reduce the vast majority to economic serfdom, if they can hold off the complete economic collapse they've engineered -- but if they can't, it may inconvenience them while being devastating to the vast majority.
THX Robert I just created an account.
I think we're on to something, but I'm not ready to put it out there yet (I sometimes get accused of being a conspiracy theorist--fancy that).
So If I can back it up, I'll post it here.
In the meantime I'll keep practicing spelling words like "then" and "phantom".
-WM http://letthemfail.us
Thanks. The GAO has enjoyed a much better track record than any other government-related stats group (such as the OMB - from whence the 2009 graph originates - and CBO), so I don't necessarily doubt them.
It just strikes me as a peculiar numerical oddity that how closely these numbers are converging. Indicative of zero economy? Social insurance - doubled under The Reagan Administration to fund the tax cuts for the wealthiest - should still be significantly under the individual tax revenues?
This should be the primary focus of the news -- not what's blanketing the PopCultureMedia right now: gays and lesbians to be allowed in the military (they were certainly in it back during the draft when I served -- although I'm mystified as to why anyone would wish to be in the military).
Would you consider creating an account and logging in? You write some insightful comments. This would give you the ability to bypass CAPTCHA plus have your own account so you can track all of your comments, replies.
I don't track as much on residential real estate as I do manufacturing, jobs and so on, so if others are giving some insight into this 'prop up' and what is the real end game here, that would be helpful. I was reading the SIGTARP and just couldn't believe the outlays here with things clearly still heading "down" and "south" on residential real estate.
I don't see any end game but eventually it has to stop and because people plain don't have any money, it has to all go significantly down in value. (at minimum).
But if there are others, who are more expert digging around in this, it would be useful for us!
I saw Hank Paulson claim China and Russia were colluding to collapse the U.S. through their treasury holdings but if they are the primary lender on GSEs, that adds just a whole other dimension.
I'm not sure that I would count on the Fed exiting their MBS purchasing plan at the end of March as they say they will.
They run a kiting scam (credit Chris Martensen) between central bank custody accounts to fund purchases with our own money.
Them they protect GSE debt at all costs, since China (mostly) and Russia hold nearly a trillion in agency debt, much of it Fannie and Freddie originated bonds.
In the long run, it all comes back to the "household sector" in an ironic twist of socialized neo-facism. The taxpayer is the phanton holder of 1.88 trillion in debt issuance for year-end 2009.
http://letthemfail.us/archives/3204
The area I live only recently (in the last year or two) saw a rise in housing prices. Cruise ships stop at our little port and thousands of tourists swarm our 'quaint' little town. They help the local shops and restaurants, but they also noticed how inexpensive our homes were. They are mostly restored victorians and quite beautiful. Many were bought sight unseen and the people came in droves to buy them. Overnight, housing prices almost doubled leaving the regular workers here unable to buy a home. The greed of sellers upset the balance. Now the market is sluggish with overinflated prices. We are just waiting.....for the tourists to leave.
It might be time to drag out the conspiracy theories. I have several up my sleeve.
1. The banks are taking over the country and will ultimately own us all. (oh wait that happened already)
2. China will buy up so much of our debt they will own us (oh wait that's happening now).
3. We are headed toward a one world government and since we have so many war toys we get to be the police.
4. The President is just a figurehead and makes no decisions, ultimately the ones with the money (globally) really run things (ulminatai? bilderbergs?)
5. We are so distracted by threatened plagues (swine flu), wars (every generation gets to have one), and natural disasters we miss the really important news. However, the news media in prime time and morning shows only show us the "distractions". (Real news, if discovered, is quickly turned into a conspiracy theory.)
Since all our jobs are being outsourced and wages being driven down to the lowest common denominator, it sure would be nice if the government would allow housing prices to equalize... so then we workers could reasonably afford ONE OF THE BASIC REQUIREMENTS FOR HUMAN SURVIVAL: SHELTER.
The government wants to have it both ways - overpriced housing AND globalization (causing depressed wages and unemployment). How are these not mutually exclusive? You can keep pumping tax dollars into Fannie and Freddie but eventually something has got to give - globalization or housing. People cannot buy houses they cannot afford.
I just read this post on the Financial times blog, which goes over shadow bank losses.
One huge issue is foreclosures are not on normal housing inventory and the way NCO are accounted for, there might be a hell of a lot of restructured loans, with high redefault rates, that are not currently "on the books".
It went like this:
Thailand
then Philippines, Vietnam, and Indonesia (which it hit worst of all).
followed by South Korea and to a lesser extent Taiwan and Japan.
Months later it would bring down Russia, which also brought down LTCM.
What most people don't remember is that the risks continued in the system until Brazil was forced to devalue in January 1999. This caused a recession in South America which effected its largest trading partner - Argentina.
Wasn't Russia in 1998 also a case of contagion? I think there are 3, S. Korea, the S. Asian crisis and Russia.
I've been reading "EU will bail out Greece" and then "not" and then "labor unions in Greece to blame, yada, yada" and then "oh we're all ok".
But when I saw debt ratios Spain sure looks bad, but the UK sure doesn't look very good to me either.
Ford pays out $10 an hour for wages AND benefits to its workers in Mexico.
Now with Nafta who can compete with that here really?
Bernanke's college professor said 'we are doing everything possible to return to just before the crash'.
We must re inflate the bubble in order to maintain the status quo. Its that simple. Bail out the wealthy and blame subprime mortgages and welfare for the crash. Now that Bush is out of office drink the kool aid and blame Obama for everything. Its a very simple formula. Not that Obama has done much to pull 'us' out of this but he certainly didn't get us here.
I also love the right wing mantra that Fannie and Freddie were mostly responsible when they couldn't buy subprime mortgages by law. What killed them was 'AAA' rated CDO's filled with subprimes that were garbage sold by banks.
This really falls into the category of a non-story story -- although I appreciate the reporter at (I think it was Politico) who brought this to light (again).
They've been doing this since the Wall Streeters created and founded the American intelligence establishment dating from around WWII. They not only bounce back and forth between the top directorate jobs, but they continue working at Wall Street while working at the various intel agencies --- actually now private contractors, since the majority of the American intel community has been privatized.
Example: Stephen Friedman -- former top guy at Goldman Sachs. On several intelligence advisory boards of both Bush and now Obama administrations (he was the guy who had to leave the NY Fed chair position as he "appeared" to be involved with insider trading).
He is also involved with other intel-affiliated organizations, including the CIA's venture capital firm, In-Q-Tel, as well as having been on past intelligence boards (NRO reform panel, etc.) and is either involved with the Markle Foundation (an intel-type foundation as intel people bounce back and forth from that foundation to the CIA, etc.) and/or the Center for a New American Security (those two, Markle and CNAS are intimately connected).
An excellent accidental reference on the Financial-Intelligence Complex is the section of chapters on the Kennedy presidency from Richard Parker's outstanding bio on John Kenneth Galbraith (it is almost inadvertent since he's really not covering this subject -- it just becomes apparent with a reading of it).
A little known recondite fact is that during the first Reagan Administration, when he appointed Wall Streeter Casey as CIA director, Casey immediately moved to classify the output from their earth resource recon satellites, and freely handed said information (which had always been open to the public) over to his Wall Street investment cronies.
And the latest move to have full access to SWIFT, begun by the Bush administration and now successfully rendered by the Obama administration, isn't really about that there global war on terror, but simply financial intel.
Financial intel is what it is always about. Always.
I somehow missed that one, really a tremendous read.
And I'm not surprised at Greenberg's response -- yet another in the infinite amount of indicators as to AIG's culpability in the meltdown and continuing economic downturns.
Not to worry, though. While at the Starr Foundation, Hank has been sure to support "news" programs to bolster Wall Street's accidental perfidy.
First I think the blame should be put where it belongs: on the Central Banks and the World's Elite. They were the ones that destroyed the US economy through offshoring jobs and factories.
I say we take every dime back from TARP, TARPII etc (e.g., about 25 Trillion in reality) and give about $150,000 to each LEGAL AMERICAN CITIZEN. They will have to then pay off all debt (mortgage, credit, student loans etc.).
Next we put forward Basic Income Gauruntee's (Richard Cook), Basic Pension Gauruntees (William Grieder) and more debt forgiveness as necessary (Micheal Hudson).
Next we polish up our nuclear arsenal to ensure no external problems from China. Having done this we can retrench all the money wasted on defence . . . at least cut it by 50% over the next 10 years.
Bottom line. We got screwed by these people and now they have to pay. No more foreclosures or evictions for at least 10 years while we analyse the "crime scene" and determine how we achieve a sustainable economy.
There is still hope.
For more go to my web and check out the "New Agenda for America."
Great web (Economic Populist) by the way!!!
Bruce W. Cain
Surely you had this account for some time because new accounts are on manual approval. Well, glad you're on.
Yeah, we try and i certainly try to dot all i's and cross all t's when I feel fairly "CT" on something...
Paul Farrell on CBS Market watch I notice he writes these heavy doomsday sorts of opinion pieces...but....no statistics, no details and things need to be heavily verified...
else we'll turn into some sort of online blog version of the Glenn Beck show. ;)
I don't know if you saw this but our poorly paid CIA experts are moonlighting for big business, hedge funds and one cited area was lie detection.
So, I can imagine Paulson and others have detailed training on how to not signal body language, facial ticks and so forth to indicate they are lying scum.
;)
That said, for every lie, there sometimes is a grain of truth and I'm convinced China is waging economic war against the U.S. at least and Russia...that wouldn't surprise me either.
So, I would not be surprised that this particular story is true.
just by looking at your own paycheck stub. 27% seems more in line, plus on personal income, SS has a capped amount, around $105k (or so) and then above that isn't taxed.
So, yeah, I agree, but even the GAO can be pressured.
Want to see something on derivatives and the political attack on the GAO as a result?
interview with ex-GAO guy who did the 1995 GAO report on the derivatives ponzi scheme, time bomb. Yes, our lovely government knew about this way back when.
They cut funding to the GAO and I am sure they are probably pressured for you are right, they are the last objective hold out in many ways.
But it does seem that instead of paying attention to them, their damning reports go ignored (as do other agencies).
But at least that devout religionist, Hanky Paulson, didn't swallow any of those meany sleeping pills. What devotion!!!!!
Geez, that guy is such a creepazoid phoney, and so far he has failed to establish any veracity whatsoever in his public pronouncements (since so many of them have turned out to be lies).
While I wouldn't doubt Russia might have done that, given the context. Recall if you will, the Georgian president met several weeks before with Karl Rove at a international summit at Crimea, then he (Georgia) next attacks South Ossetia in the middle of the night, killing thousands of civilians with their indiscriminate bombing -- including the Russian peacekeeping force stationed there.
Wouldn't you be kind of pissed off, too?
Correct. The dollar is based upon the mortgage loan market, and that's why they are propping it up (I've spoken with at least four individuals over the past six months who have received zero-down payment mortgage loans, and I don't get out all that much).
But I wouldn't describe the system so much as "socialized neo-facism" as a socialist plutocracy (Michael Parenti's term): socialism only for the ultra-rich, while the rest of us are on our own.
They hope to gradually reduce the vast majority to economic serfdom, if they can hold off the complete economic collapse they've engineered -- but if they can't, it may inconvenience them while being devastating to the vast majority.
THX Robert I just created an account.
I think we're on to something, but I'm not ready to put it out there yet (I sometimes get accused of being a conspiracy theorist--fancy that).
So If I can back it up, I'll post it here.
In the meantime I'll keep practicing spelling words like "then" and "phantom".
-WM
http://letthemfail.us
Thanks. The GAO has enjoyed a much better track record than any other government-related stats group (such as the OMB - from whence the 2009 graph originates - and CBO), so I don't necessarily doubt them.
It just strikes me as a peculiar numerical oddity that how closely these numbers are converging. Indicative of zero economy? Social insurance - doubled under The Reagan Administration to fund the tax cuts for the wealthiest - should still be significantly under the individual tax revenues?
This should be the primary focus of the news -- not what's blanketing the PopCultureMedia right now: gays and lesbians to be allowed in the military (they were certainly in it back during the draft when I served -- although I'm mystified as to why anyone would wish to be in the military).
Would you consider creating an account and logging in? You write some insightful comments. This would give you the ability to bypass CAPTCHA plus have your own account so you can track all of your comments, replies.
I don't track as much on residential real estate as I do manufacturing, jobs and so on, so if others are giving some insight into this 'prop up' and what is the real end game here, that would be helpful. I was reading the SIGTARP and just couldn't believe the outlays here with things clearly still heading "down" and "south" on residential real estate.
I don't see any end game but eventually it has to stop and because people plain don't have any money, it has to all go significantly down in value. (at minimum).
But if there are others, who are more expert digging around in this, it would be useful for us!
I saw Hank Paulson claim China and Russia were colluding to collapse the U.S. through their treasury holdings but if they are the primary lender on GSEs, that adds just a whole other dimension.
I'm not sure that I would count on the Fed exiting their MBS purchasing plan at the end of March as they say they will.
They run a kiting scam (credit Chris Martensen) between central bank custody accounts to fund purchases with our own money.
Them they protect GSE debt at all costs, since China (mostly) and Russia hold nearly a trillion in agency debt, much of it Fannie and Freddie originated bonds.
In the long run, it all comes back to the "household sector" in an ironic twist of socialized neo-facism. The taxpayer is the phanton holder of 1.88 trillion in debt issuance for year-end 2009.
http://letthemfail.us/archives/3204
The area I live only recently (in the last year or two) saw a rise in housing prices. Cruise ships stop at our little port and thousands of tourists swarm our 'quaint' little town. They help the local shops and restaurants, but they also noticed how inexpensive our homes were. They are mostly restored victorians and quite beautiful. Many were bought sight unseen and the people came in droves to buy them. Overnight, housing prices almost doubled leaving the regular workers here unable to buy a home. The greed of sellers upset the balance. Now the market is sluggish with overinflated prices. We are just waiting.....for the tourists to leave.
It might be time to drag out the conspiracy theories. I have several up my sleeve.
1. The banks are taking over the country and will ultimately own us all. (oh wait that happened already)
2. China will buy up so much of our debt they will own us (oh wait that's happening now).
3. We are headed toward a one world government and since we have so many war toys we get to be the police.
4. The President is just a figurehead and makes no decisions, ultimately the ones with the money (globally) really run things (ulminatai? bilderbergs?)
5. We are so distracted by threatened plagues (swine flu), wars (every generation gets to have one), and natural disasters we miss the really important news. However, the news media in prime time and morning shows only show us the "distractions". (Real news, if discovered, is quickly turned into a conspiracy theory.)
6. There is no wind on the moon.
Since all our jobs are being outsourced and wages being driven down to the lowest common denominator, it sure would be nice if the government would allow housing prices to equalize... so then we workers could reasonably afford ONE OF THE BASIC REQUIREMENTS FOR HUMAN SURVIVAL: SHELTER.
The government wants to have it both ways - overpriced housing AND globalization (causing depressed wages and unemployment). How are these not mutually exclusive? You can keep pumping tax dollars into Fannie and Freddie but eventually something has got to give - globalization or housing. People cannot buy houses they cannot afford.
http://jims-blog.com
I just read this post on the Financial times blog, which goes over shadow bank losses.
One huge issue is foreclosures are not on normal housing inventory and the way NCO are accounted for, there might be a hell of a lot of restructured loans, with high redefault rates, that are not currently "on the books".
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