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Another refreshing voice in the wilderness--From Der Spiegel:


Finance CEOs in Freefall as Subprime Losses Mount
By Frank Hornig
The subprime crisis has dealt a huge blow to the financial industry. As a nervous Wall Street waits to see the full extent of the damage, CEOs are under pressure to explain what went wrong -- and to justify their plump salaries....The case is symptomatic of the worldview, self-image and the day-to-day reality of many top bankers, especially in the mecca of high finance, Manhattan. They were once the kings of the world, the bonus gods and rainmakers, the super-rich in the cosmos of big money -- simultaneously employees and kings.

Their equity capital was ultimately nothing but a promise: the promise of reputable financial transactions and the pledge that everything would go well in the debits-and-credits world of global finance. But nothing went well. For a long time -- far too long -- the public was appeased, the industry was glorified and promises were made, and the underlying problems were covered up with lies.

Since last summer, however, the entire industry has increasingly proved to be little more than a gambling den. Part of what was being gambled away was the trust that customers and small investors invested along with their money. Many bets were lost. So was a lot of money -- and even more trust.

The gentlemen in their pinstriped suits proved to be bank robbers.

Record sums went up in smoke. In the second half of 2007, Citigroup alone had to write off more than $24 billion (€15.4 billion) in bad debt as a result of its speculative ventures. No gang of thieves could ever steal that much money from a bank vault.

The eternal question "If a tree falls in a forest and no one is around to hear it, does it make a sound?" Elaine, you were one of the few who first heard the sound. Now that all the trees are being felled the cacophony of "TIMBER" is being heard worldwide.


A friend in Nigeria told me he just got this email from a email address in the U.S.:

From:Mr Ben S. Bernanke

Tel: 234-80-33058356


I am Mr Ben S. Bernanke of the Federal Reserve of
Finance U.S., an economist by profession and
also currently Chairman of recovery fund set up by the
Federal Government in conjunction with the
IMF and World Bank. A presidential committee
on derivatives contract payment was inaugurated last year,
after the visit of Bear Sterns and JP Morgan CEOs.

The aim of the committee is to verify delays of non-
payment of free money loans due to
successive economic instability and inconsistency in
their policies expediting financial speculation where sagacity
was needed.

In view of this, we discovered a lot of money floating
without claim from any of our bond auctions.

These was as a result of private FRB decision to award
part of the 30 Billion dollars in smaller awards
in money worth $120,000,000 ( one hundred and
twenty million dollars) and determined by blind auction process
to a savings accounts overseas or domestic for disbursement.

Therefore, I was mandated to negotiated with a domestic or foreign
partners who will be trusted to keep the secret of the
deal to transfer the money to his or her account
within 14 days of approval. This was as a result of
our inability to own account overseas since we are
still serving civil servants. In view of this, your
company name will be gazetted for immediate payment,
your banking particulars will be required for approval
for transfer by the Federal Reseve Bank of America (FRBA).

Confirm the receipt of this letter for immediate
answer for acceptance. You have only 25% of the total
sum transferred and received by you. Call me
immediately as soon as you receive this message by
phone or E-mail.

Yours Faithfully,

Mr. Ben S. Bernanke.


Paulson warns US house prices must plunge
The US Treasury Secretary gave warning today that there is more pain ahead in the American housing market after he said prices must be allowed to drop before the economy can stabilise.

Lets see, homes were artificially inflated deliberately to doubled, tripled, and quadrupled prices to line the pockets of the greedy investment and comerical banks, lenders, speculators, etc... And our GDP that hinges on 78% consumerism would be propped up via home equity loans. Keep the economy running as jobs flew out of the country via NAFTA and WTO and imports crammed our closets and drawers full of chinese crapola. Not to mention wars and a out of control pentagon budget and tax cuts for the wealthy. Fortified and defended tax-free havens for the greedy bastards who cooked up this ruse. Now the schmucks-US homeowners- are to bend over and grab our ankles and bite the bullet again in losing whatever home equity is left as the housing prices depreciate and commodities inflate due to the Feds generous discount window as the banks borrow and dump into gold, oil, and grains.

Heaven forbid if instead they raise people's wages and offer higher interest rates for savers. Or better yet, roundup a posse and hunt down all them bank robbers. thieves, and liars, and bring em' to the justice tree. What the heck we're living in an era of BANKS GONE WILD, might as well impose WILD WEST JUSTICE.

The Good, the Bad, and the Ugly


Hi Elaine, have you seen these foreign ownership statistics for the US industries?

This is the scam, move everything you can offshore, everything else sell off.

Elaine, as a literary person, you must know the story of Madame Bovary. The wealthy wife (US Public) of a town doctor (USA) is loaded up with debt by the sneaky town vendor (Fed, Wall Street), then he pulls a margin call and she runs away with wealthy foreigner (China) goes crazy and commits suicide (US fighting WWIII).

Quite simply, I would say the Rothschild family is pulling the "Madame Bovary Plan" on the USA.


Foreign ownership percentages of Selected US Industries:

* Sound recording industries 97%
* Commodity contracts and brokerage 79%
* Motion picture sound industries 75%
* Metal ore mining 65%
* Motion picture and video 64%
* Wineries and distilleries 64%
* Database and other publishers 63%
* Book publishers 63%
* Cement, concrete, lime product 62%
* Engine, turbine and power 57%
* Rubber product 53%
* Nonmetallic mineral product 53%
* Plastics and rubber products 52%

Article below also from his site Economy In Crisis

America in is a major state of decline. Few realize its causes & the source of our problems. This email alert will highlight one main reason for our inability to be able to compete, our inability to support ourselves, and for our rapidly declining living standard -- N.A.F.T.A.



Elaine Supkis

Yes, sweetheart deals to foreign powers so they can locate $7 an hour jobs here in America. While American-owned factories move to Asia.

That was the game. And all the profits flow either offshore or to Asia. And Germany, of course. Can't forget them.


Here's another wrinkle in the import/export imbalance: Last night I met two guys here in Oregon who have started a business in which they export used European cars from the US to Europe by way of E-Bay. Two things are fueling this. First the plummeting value of the dollar means that the Europeans can buy things cheaply here. Secondly, Americans have grown increasingly desperate for cash and are willing to part with a European car if it means paying for the absolute necessities. This is increasingly the nature of US exports. We're no longer capable of manufacturing valuable goods, so the only way we keep going is to sell off all of our assets bit by bit. Clearly the operations of our federal government are for sale. And more and more our state and municipal assets, like highways and drinking water, are being privatized too (sold to foreign capitalists). And if you have to sell your old BMW to pay the electric bill, well that's just more of the same. If a couple of guys in Oregon are making a modest living for themselves by selling off American assets, then I have no doubt that Wall Street is already playing this game to the hilt but on a much grander scale. They sure did an effective job of converting our houses into credit "securities" to be sold off to foreign investors. It makes me wonder how much of America is actually owned by Americans anymore.



Truly well-played sir!

All others-

Yes, god forbid we let the working people of this country get a taste of the wealth they have created for the capitalist pigs.

That's why there is currently more economic mobility in the Scandinavian countries. How dare those filthy social democrats usurp the land of Horatio Alger!


Red shoes,

The secret to stability for a country is be run by a man who likes to wear dresses and red shoes. The country should also preferably be surrounded by Italy. The major export is salvation.

Any discussion of Robert Calvi, Banco di Ambrosiano, Archbishop Paul Marcinkus and the idea that the Catholic Church could ever have been involved in money laundering could imperil your immortal soul.

Market Watcher

The situation is clear.

To fix the problems we face requires higher interest rates, higher than inflation, which is something in the order of 8-10%. Secondly an accross the board import tariff is necessary. 10% would be a place to start. 30-50% would be more like it.

This is politically impossible now. Lots of people would be much less wealthy very quickly, including many considering themselves middle class. Many businesses would be exposed as bankrupt. Employment would shrink greatly. The banking system as it currently exists could not survive.

Elaine Supkis

Either we save the present rotted banking system or we save our nation. A banking system servicing a dead nation is pretty useless. If the nation is bankrupt, it doesn't matter if banks are solvent. Especially if the banks are OFFSHORE banks! They are being saved by destroying our nation.

This is, for me, totally unacceptable. Are Americans going to get good jobs by running up infinite red ink? Ha! Of course not!

The JOBS ARE LOST ALREADY. We might say, 'Dead jobs walking' in this case. Alas. So at some point, we must bit the old bullet. We did this in the past. We can do it in the future. NOT doing it is fatal.


Rob - Nice one

Elaine Supkis

I agree. Rob's satire is spot on.


Yes, it is. Shouldn't be long before Bernanke actually dies this. Then, when people complain, the Republicans might let us arrest him. For mail fraud.


Opps... does this, not dies this.

Elaine Supkis

Actually, you were correct with the 'dies this'. Heh.


Interesting how two words with completely different meanings can mean one and the same, given the right context. ;-)

Bear of Little Brain

I seem to remember reading that the Fed Chairman is, effectively, above the law. Couldn't find anything that specific, but came across this:


which contains this opinion:

This appeal presents a single question of law: whether the Board
of Governors of the United States Federal Reserve System (the
"Board") can be sued in contract in federal court. The district court found that the doctrine of sovereign immunity shielded the Board from contract suits in federal court and dismissed this case for lack of subject matter jurisdiction. Because we can find neither an express waiver of sovereign immunity in the Board's governing statutes nor the Board's inclusion in a more general Congressional waiver of immunity, we agree with the district court's finding, and affirm its dismissal of the case.

Another factoid that I remember, but haven't checked, is that the "Axis of Evil" (Iraq, Iran, North Korea) had one particular thing in common - no "proper" central banks. I also recall that the Russian Tsar refused to allow the same. A lot of Wall Street money (maybe from elsewhere as well, I don't know) poured in to support the communist revolution. The Romanov line, of course, was terminated en masse in a cellar. Don't know if Lenin ever established a central bank or not. Draw your own conclusions about the otherwise totally illogical "Axis of Evil".

Paul S

Elaine: Thanks for the article, more true but depressing news. The fact that the red ink is deliberately left out is telling though not surprising. (Should we expect honesty from "Dubaya' and his confederates? Silly question). The Bushes know full well what is actually happening; they're just going to dump this mess on the next President. By then, 'Dubaya' will be bunkered down in Crawford and the only decisions he will be making is what kind of BBQ sauce he wants on his chicken. This will ONLY be resolved when the guilty parties face some sort of tangible, REAL punishment. Meaning like being impeached, jailed, sent to prison, etc. The system in my view is so corrupt, it will not fix itself. Rome burned while Nero fiddled and the US of A flushed down the tubes while 'Dubaya' was President. History repeats itself.

Paul S

Elaine; I just re-read this article and I agree with you re your concern about WW3. I think this country's ruling class--if they think of it at all--are GROSSLY underestimating their future potential opponents, like Russia and China. With these opponents, this country's ruling class will be facing formidable adversaries. These potential enemies won't be bribed OR intimidated and a corrupt, incompetent Federal government doesn't faze the Chinese or Russians one little bit. Is our ruling class so suprememly arrogant they do not realize this? OR: do they not know that our military resources are--because of 'Dubaya's' self financing war-- severely strained? We would have a tough time going to war with Monaco, let alone a tough, hard nosed potential adversary like China or Russia. Re the Presidents Economic "Report", what do you expect from a President who told us the war would be self-financing, then upped the cost to $50-$100 billion? You would have an easier job with the Presidents report if you searched in the report for things that were true. There are fewer of those and it would save you time. Sorry if this post veers off the topic.


Mentioning foreign investment do we know who is buying all of these mining companies lately? Is this not hoarding on a global scale?

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