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Carlos

”Privatizing Profits and Socializing Losses” - Nouriel Roubini referring to the stealth bailout of Countrywide but it applies to the whole Alan Greenscum inspired exuberant banking model and his tenure at the Fed from 1996 on.

Elaine Supkis

Yes, he is correct and he put it in words anyone can understand. Britain is doing the exact same thing, by the way.

HARRY SUBPRIME

THESE BANKS SHOULD BE PUNISHED LIKE ALL COMMON THIEVES. THEY PROMULGATED THIS OVERWHELMING, UNJUSTIFIABLE, SUB PRIME LOAD OF LOANS FOR THEIR OWN GREED & SELF INTEREST. WHY SHOULD THEY RECEIVE ANY SPECIAL HELP FROM THE RISK THEY TOOK TO FILL THEIR POCKETS, SHOULD IT BACKFIRE?

NO ONE DOES THAT FOR MY BUSINESS. IF I LOAN OR LEASE MORE THAN CAN BE PAID, I GET STUCK WITH THE LOSS AND HAVE TO EAT IT RAW!!

WHY SHOULD THESE GREEDY, SLIMY, SNAKES CALLED BANKS OR LENDERS GET SPECIAL ASSISTANCE TO HELP THEM OUT WITH A PROBLEM THEY KNEW ALL ABOUT AND WERE WILLING TO TAKE ALL RISKS? THEY WERE BIG KNOWLEDGEABLE
WELL INFORMED TRAINED BANKERS THAT WANTED TO MAKE A KILLING ABUSING ALL THE POOR CUSTOMERS AS BAIT, WELL AWARE THAT THEY HAD A GREAT CHANCE TO HAVE TO FORECLOSE ON THESE SUB PRIME LOANS.

WHY DOES THE REST OF OUR COUNTRY, UNRELATED TO THESE SLIMY SNAKES, HAVE TO GIVE UP OUR HARD EARNED MONEY TO BAIL THESE PIGS OUT OF THE PROBLEM THEY CREATED WITH FULL 100% FORESIGHT?

THEY WILL NEVER LEARN AND CONTINUE DOING THIS AS LONG AS THEY CAN, SINCE THE FED. WILL ALWAYS BE THERE TO ASSIST THEIR GREEDY, parsimonious, SOCIOPATHIC, UNLIMITED, GREED.

OUR ECONOMY MUST SUFFER FOR THOSE WHO PURPOSELY PROMULGATED THIS FRAUD ON THE PUBLIC AT LARGE!!
why?
WHY SHOULD THEY ALL NOT BE SENTENCED, JAILED, FILE CHAPTER 7, ETC. AND LOSE ALL THEIR ASSETS FIRST, THEY PROBABLY HAVE ENOUGH MONEY THEY CRIMINALLY TOOK FROM THESE OBLIVIOUS BORROWERS.

OUR GOVERNMENT SHOULD GIVE THEM NOTHING BUT A SINGLE JAIL CELL!!!!


R. D. SIRO, M.D.

hans blink

Whose article is this, I read something very similiar here http://www.informationclearinghouse.info/article19324.htm

Elaine Supkis

Hans, I put Mike's name in huge letters at the top. Mike Whitney and I are friends. I publish him because of this. Unlike the others, I publish my own cartoons and we both put in graphics. This is why he wants me to publish him too.

Also, if anyone wishes to support his work, do feel free to donate money and make certain you mention his name and I pass this on to him.

None of the other sites online pay him a PENNY. This fine writer gets nothing at all. Thanks in advance.

Elaine Supkis

Also, Mike isn't a professor. He should be one but isn't. His intelligence, ability to write, analyze things and entertain all should be honored and I am glad he is being published around the web.

There are so many good writers coming out of the woodwork! In my own case, I used to have 'writer's block' all the time until the web came along and I wrote every day. Now, I nearly never get it.

The same is true with Mike. And many commentators at web sites and certainly, many here, are also good writers. Thank goodness for the web.

Grandma pkk

Many alive now will not realize the implications of our having conned the world.
If we bring down the economies of those with whom we already have so-so relationships, tinged with some measure of distrust both ways or resentment towards our hubris, we could find ourselves on the receiving end of another Pearl Harbor. Wars have been started on the basis of economic malfeasance, and I think we have hoodwinked the banks and financial institutions of the world. I think it's too late; the best we can hope for is modification of the disaster sliding our way like an ugly coal heap, and the operational word there is hope, which is of no use when reality is on a real tear.

Grandma pkk

Many alive now will not realize the implications of our having conned the world.
If we bring down the economies of those with whom we already have so-so relationships, tinged with some measure of distrust both ways or resentment towards our hubris, we could find ourselves on the receiving end of another Pearl Harbor. Wars have been started on the basis of economic malfeasance, and I think we have hoodwinked the banks and financial institutions of the world. I think it's too late; the best we can hope for is modification of the disaster sliding our way like an ugly coal heap, and the operational word there is hope, which is of no use when reality is on a real tear.

Elaine Supkis

I agree, Grandma. And this is why I talk about this. Ignoring that slag heap heading our way is stupid.

mike

we? as a bank shareholder. my ten year holds on a "quality" bank have pitiful returns, but you should see the twenty year hold returns starting just before i bought in.,,,,,,,,,,,,,,perhaps another disgruntled sheeple

CK Younng

A Red-Capitalism monetary system is distinguished from that of classic capitalism by the substitution of an arbitrarily created fiat currency which exclusively supplants an actual gold or silver currency, or a gold or silver backed, and redeemable, currency.

● Red-Capitalism is a political-economic system enabling clandestine taxation that most citizens are unaware is caused by their own government. Ask people you meet, “What causes inflation?”
● Politicians and dictators who embark on this perilous economic adventure inevitably bring ruin to their nation’s monetary system through hyperinflation, and not infrequently, precipitate a collapse of their nation’s government.
● As the red-capitalist regime grows desperate to maintain order, the citizens within are increasingly subjected to further erosions of their rights and liberties. Slowly, the nation is suffocated caused by the pollution of its life-blood—its monetary circulatory system.

MONETARY & FISCAL POLICIES IN A RED-CAPITALIST ECONOMY

MONETARY POLICY
Monetary management within a Red-Capitalist system is effected by the arbitrary manipulation of a nation’s fiat currency, i.e., ‘money,’ by the central ministry’s bankers. In the U.S., this conspiracy of bankers does business as the Federal Reserve Board.

PROPAGANDA ALERT: The use of the word ‘reserve’ is a misnomer. It is a calculated propaganda term used to assuage public concerns concerning the reliability of the paper money in circulation. Reason?—there is no reserve of substance, since neither the paper money, actual fiat currency, nor the ‘money’ that materializes on the ledgers of the ministry-affiliated banks, is backed by, or redeemable in, gold or silver. Our fiat currency is simply created at the direction of bankers operating within the conspiracy of the so-called Federal Reserve Board. In true-speak, the Federal Reserve Board, is the Ministry of Taxation by Inflation (MTI). ‘Reserve,’ as used by the MTI, is the amount of fiat currency that the Board requires member banks to have at hand in order to create—out-of-thin-air—and lend—large multiples of their ‘reserve.’ The bankers, of course, charge interest on this out-of-thin-air money.

The MTI is a tax-confiscating system that is perpetrated in stealth. This insidious form of taxation—a surreptitious confiscation of a portion of our money—is accomplished by creating and distributing vast sums of fiat currency. In the U.S., our fiat currency, the dollar, is comprised of Federal ‘Reserve’ Notes (FRN).

INFLATION TAX TRAP 1: The printing of an excess amount of paper dollars taxes us by diluting the value of the dollars we hold. Prices go up when there are new dollars competing against old dollars. Thus, when a government increases the paper money, we are taxed as prices go up. That’s why they do it. This out-of-thin-air paper money becomes debt as bank loans. We citizens must repay this debt with interest—billions of hours of work. Many economists—outside of government—refer to this fraudulent scheme as legalized counterfeiting.

The basic operations of the Ministry of Taxation by Inflation include Open Market Committee meetings, where behind closed doors:
1. The ‘reserve’ requirements of banks, is arbitrarily changed.
2. The discount rate is arbitrarily changed—with enforced compliance. This is the interest rate that the MTI charges for newly created ‘money’—FRN loans—to ministry-controlled banks.
3. The federal funds rate is arbitrarily changed, also with enforced compliance. This is the interest rate that the MTI requires ministry-controlled banks to lend and borrow among themselves.

INFLATION TAX TRAP 2: When we hapless citizens deposit our hard-earned fiat money within the ministry controlled banks, we are again victimized; the rate of interest that the banks pay us is inadequate to compensate for the loss in value of our savings caused by the inflation tax. When our savings accounts accrue interest, the Central Ministry of Taxation (the IRS, in the U.S.), working in conspiracy with the MTI, ruthlessly subjects our interest to an income tax—in spite of the fact that the purchasing value of our deposited funds has deteriorated with respect to the paltry interest awarded to our bank accounts. Further, if we don’t ‘volunteer’ to pay ‘income’ tax, we just might go to jail.

INFLATION TAX TRAP 3: In the U.S., the nation’s ‘law’-makers, operating in collusion with the MTI, and the Central Ministry of Taxation, have created yet another mechanism to swindle us citizens. The perpetually increasing quantities of fiat money steadily moves us into higher and higher tax brackets. Thus, the MTI’s excessive creation of bogus money allows the central ministry to usurp a continually increasing proportion of our wealth.

INFLATION TRAP 4, DISPOSSESSION & AGGLOMERATION: If the MTI bankers keep the rate of interest too low for too long (Alan Greenspan), a ‘bubble’ economy (excessive economic expansion), develops. Altho this increases the taxes that the central ministry can levy, eventually it causes an overheated run-away economy, and hyperinflates the fiat currency. Then, in a belated effort to control spiraling out-of-control cost increases, the MTI bankers will hike the rate of interest. If executed too rapidly (Ben Bernanke), economic activity is choked and a recession or depression is induced. This orchestrated circumstance sets up the central bankers, along with any elitist insiders who hold vast sums of hyperinflated dollars, the opportunity to increase their holdings by buying everything of value that the financially strapped citizens mired in a stagnating economy are forced to sell. Thus, periodically, the middle-class citizens are dispossessed of their real-estate, their businesses, and their gold, as these assets are agglomerated by the super-rich.

FISCAL POLICY
Fiscal management within a Red-Capitalist system is implemented directly by a nation’s central ministry, in the U.S., (and now the former U.S.S.R.) the ‘Federal’ Government. Fiscal management entails either the arbitrary alteration in the rates of direct taxation, and—for a more rapid effect—government spending, in such areas as infrastructure, or socialistic largess, in an attempt to either stimulate (nourish), or depress (starve) the economy.

In an economic upturn, but only when the rate of expansion becomes excessive, aka, a ‘bubble,’ the central ministry bankers, in an attempt to forestall the danger of an imminent monetary collapse due to hyperinflation, may initiate a fiscal policy that curtails the fiat money supply. In this scenario, our taxes are increased, and government spending is reduced.

In an economic downturn, aka, a recession, an expansionary policy is implemented. This involves lowering our taxes and increasing government spending—including deficit spending—in an attempt to stimulate the economy. Occasionally the central ministry will dole various sums of money to its needy citizens to stimulate the economy.

PROPAGANDA ALERT: The dole, in new-speak, is rebate. This soft propaganda term is sometimes used to spare embarrassing those who receive a dole, but who have never paid taxes towards the so-called rebate. Use of this term encourages profligate spending, rather than responsible saving.

NOTE A: When quoting government statistics on the rates of inflation, the word ‘official’ ought ALWAYS be placed before the statistic, and ALWAYS contained within accent marks, as the govern-ment’s statistics are egregiously falsified. Falsification distorts all of the ‘official’ economic data.

NOTE B: There is ongoing debate among economists as to whether the so-called fractional reserve system, or, merely printing fiat money by the central ministry—in manner similar to the ‘Banana Republics’ is to be preferred. On the one hand, having a reserve requirement tempers the potential for reckless and extravagant excesses of fiat currency. On the other hand, negative consequences can arise: the Ponzi-like debt-pyramid can collapse uncontrollably, wreaking havoc and destabilizing the entire political system. Of course the MTI can secretly lower the interest rates and the reserve requirements (of the U.S. Toys-Я-Us ‘money’) to zero nullifying the possibility of a debt-pyramid collapse. NOTE C: Because the value of artificial ‘money’ deteriorates, it violates, Article 1, Section 10, Clause 1: (No state shall…impair the obligation of contracts….).

Johnny Pierce

While we're on the topic of excoriating everyone in sight, shouldn't we also blame the morons who took the mortgages knowing full well they couldn't afford a new house?

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