The Lie That Failed–Ben Bernanke and The Federal Reserve Monetization Of Treasury Debt With Quantitative Easing–Robbing The American People–Videos

Posted on December 6, 2010. Filed under: Banking, Blogroll, Culture, Demographics, Economics, Education, Federal Government, Fiscal Policy, government, Investments, Language, Law, liberty, Life, Links, Monetary Policy, Money, People, Philosophy, Politics, Taxes, Technology, Video, Wisdom | Tags: , , , , , , , , , , , |

Fed Chairman Bernanke On The Economy

60 minutes Ben Bernenke Interview December 5 2010

Quantitative Easing Only Tool Left for Fed

Quantitative Easing Explained

Quantitative Easing — How Does it Work in the Real World?

Quantitative Easing, the Fed, Finance, and Inflation — QE

Quantitative Easing Bernanke — History & Objectives of QE

Quantitative Easing (QE) 2010 — 2011 Why is the Fed printing money?

Quantitative Easing Explained — Who Gets Fed’s Printed Money?

QE2: Quantitative Easing Investing & Stock Market Consequences

Kroszner Interview on Bernanke’s CBS Appearance – Video – Bloomberg.flv

 

Jim Rogers on QE2 – ‘It has never worked’

 

Federal Reserve Debt Monetization Explained.

 

“Looks Like Magic” – Ron Paul on the Fed’s Money Machine

 

Peter Schiff : Dollar not mighty any more

 

CNBC: Fed’s Big Gamble–What Could Go Wrong?

 

Peter Schiff Proves He Is A Baboon By Claiming QE2 A Government Conspiracy To Support Treasuries

 

Peter Schiff : It’s Scary How Clueless Bernanke Is!

 

The FED’s magic with money

 

FED Was Liquefying The World

 

Peter Schiff : Dollar not mighty any more

 

Fed Bank Documents Revealed

 

Background Articles and Videos

Introduction to Monetary Policy

The Chairman Part 1

 

The Chairman Part 2

 

 

 

 

FED using foreign banks to monetize debt behind closed doors

 

Reply to Quantitative Easing Explained

 

Black Friday, the Federal Reserve, & The Global House Of Cards

Money supply

 

“…Empirical measures

Money is used as a medium of exchange, in final settlement of a debt, and as a ready store of value. Its different functions are associated with different empirical measures of the money supply. There is no single “correct” measure of the money supply: instead, there are several measures, classified along a spectrum or continuum between narrow and broad monetary aggregates. Narrow measures include only the most liquid assets, the ones most easily used to spend (currency, checkable deposits). Broader measures add less liquid types of assets (certificates of deposit, etc.)

This continuum corresponds to the way that different types of money are more or less controlled by monetary policy. Narrow measures include those more directly affected and controlled by monetary policy, whereas broader measures are less closely related to monetary-policy actions.[6] It is a matter of perennial debate as to whether narrower or broader versions of the money supply have a more predictable link to nominal GDP.

The different types of money are typically classified as “M”s. The “M”s usually range from M0 (narrowest) to M3 (broadest) but which “M”s are actually used depends on the country’s central bank. The typical layout for each of the “M”s is as follows:

Type of money M0 MB M1 M2 M3 MZM
Notes and coins (currency) in circulation (outside Federal Reserve Banks, and the vaults of depository institutions) V[8] V V V V V
Notes and coins (currency) in bank vaults V[8] V
Federal Reserve Bank credit (minimum reserves and excess reserves) V
traveler’s checks of non-bank issuers V V V V
demand deposits V V V V
other checkable deposits (OCDs), which consist primarily of negotiable order of withdrawal (NOW) accounts at depository institutions and credit union share draft accounts. V[9] V V V
savings deposits V V V
time deposits less than $100,000 and money-market deposit accounts for individuals V V
large time deposits, institutional money market funds, short-term repurchase and other larger liquid assets[10] V
all money market funds V
  • M0: In some countries, such as the United Kingdom, M0 includes bank reserves, so M0 is referred to as the monetary base, or narrow money.[11]
  • MB: is referred to as the monetary base or total currency.[8] This is the base from which other forms of money (like checking deposits, listed below) are created and is traditionally the most liquid measure of the money supply.[12]
  • M1: Bank reserves are not included in M1.
  • M2: represents money and “close substitutes” for money.[13] M2 is a broader classification of money than M1. Economists use M2 when looking to quantify the amount of money in circulation and trying to explain different economic monetary conditions. M2 is a key economic indicator used to forecast inflation.[14]
  • M3: Since 2006, M3 is no longer tracked by the US central bank.[15] However, there are still estimates produced by various private institutions. (M2 +large deposits and other large, long-term deposits)
  • MZM: Money with zero maturity. It measures the supply of financial assets redeemable at par on demand.

The ratio of a pair of these measures, most often M2/M0, is called an (actual, empirical) money multiplier.Fractional-reserve banking

Main article: Fractional-reserve banking

The different forms of money in government money supply statistics arise from the practice of fractional-reserve banking. Whenever a bank gives out a loan in a fractional-reserve banking system, a new sum of money is created. This new type of money is what makes up the non-M0 components in the M1-M3 statistics. In short, there are two types of money in a fractional-reserve banking system[16][17]:

  1. central bank money (physical currency, government money)
  2. commercial bank money (money created through loans) – sometimes referred to as private money, or checkbook money[18]

In the money supply statistics, central bank money is MB while the commercial bank money is divided up into the M1-M3 components. Generally, the types of commercial bank money that tend to be valued at lower amounts are classified in the narrow category of M1 while the types of commercial bank money that tend to exist in larger amounts are categorized in M2 and M3, with M3 having the largest.

Reserves are deposits that banks have received but have not loaned out. In the USA, the Federal Reserve regulates the percentage that banks must keep in their reserves before they can make new loans. This percentage is called the minimum reserve requirement. This means that if a person makes a deposit for $1000.00 and the bank reserve mandated by the FED is 10% then the bank must increase its reserves by $100.00 and is able to loan the remaining $900.00. The maximum amount of money the banking system can legally generate with each dollar of reserves is called the (theoretical) money multiplier, and, following the formula for the sum of an infinite convergent geometric series, can be calculated as the reciprocal of the minimum reserve. For example, with a reserve of 20%, the money multiplier would be 5, as 20% divided into 100% makes 5.

Example

Note: The examples apply when read in sequential order.

M0

  • Laura has ten US $100 bills, representing $1000 in the M0 supply for the United States. (MB = $1000, M0 = $1000, M1 = $1000, M2 = $1000)
  • Laura burns one of her $100 bills. The US M0, and her personal net worth, just decreased by $100. (MB = $900, M0 = $900, M1 = $900, M2 = $900)

M1

  • Laura takes the remaining nine bills and deposits them in her checking account at her bank. (MB = $900, M0 = 0, M1 = $900, M2 = $900)
  • The bank then calculates its reserve using the minimum reserve percentage given by the Fed and loans the extra money. If the minimum reserve is 10%, this means $90 will remain in the bank’s reserve. The remaining $810 can only be used by the bank as credit, by lending money, but until that happens it will be part of the banks excess reserves.
  • The M1 money supply increased by $810 when the loan is made. M1 the money has been created. ( MB = $900 M0 = 0, M1 = $1710, M2 = $1710)
  • Laura writes a check for $400, check number 7771. The total M1 money supply didn’t change, it includes the $400 check and the $500 left in her account. (MB = $900, M0 = 0, M1 = $1710, M2 = $1710)
  • Laura’s check number 7771 is accidentally destroyed in the laundry. M1 and her checking account do not change, because the check is never cashed. (MB = $900, M0 = 0, M1 = $1710, M2 = $1710)
  • Laura writes check number 7772 for $100 to her friend Alice, and Alice deposits it into her checking account. MB does not change, it still has $900 in it, Alice’s $100 and Laura’s $800. (MB = $900, M0 = 0, M1 = $1710, M2 = $1710)
  • The bank lends Mandy the $810 credit that it has created. Mandy deposits the money in a checking account at another bank. The other bank must keep $81 as a reserve and has $729 available for loans. This creates a promise-to-pay money from a previous promise-to-pay, thus the M1 money supply is now inflated by $729. (MB = $900, M0 = 0, M1 = $2439, M2 = $2439)
  • Mandy’s bank now lends the money to someone else who deposits it on a checking account on yet another bank, who again stores 10% as reserve and has 90% available for loans. This process repeats itself at the next bank and at the next bank and so on, until the money in the reserves backs up an M1 money supply of $9000, which is 10 times the M0 money. (MB = $900, M0 = 0, M1 = $9000, M2 = $9000)

M2

  • Laura writes check number 7774 for $1000 and brings it to the bank to start a Money Market account (these do not have a credit-creating charter), M1 goes down by $1000, but M2 stays the same. This is because M2 includes the Money Market account in addition to all money counted in M1.

Foreign Exchange

  • Laura writes check number 7776 for $200 and brings it downtown to a foreign exchange bank teller at Credit Suisse to convert it to British Pounds. On this particular day, the exchange rate is exactly USD $2.00 = GBP £1.00. The bank Credit Suisse takes her $200 check, and gives her two £50 notes (and charges her a dollar for the service fee). Meanwhile, at the Credit Suisse branch office in Hong Kong, a customer named Huang has £100 and wants $200, and the bank does that trade (charging him an extra £.50 for the service fee). US M0 still has the $900, although Huang now has $200 of it. The £50 notes Laura walks off with are part of Britain’s M0 money supply that came from Huang.
  • The next day, Credit Suisse finds they have an excess of GB Pounds and a shortage of US Dollars, determined by adding up all the branch offices’ supplies. They sell some of their GBP on the open FX market with Deutsche Bank, which has the opposite problem. The exchange rate stays the same.
  • The day after, both Credit Suisse and Deutsche Bank find they have too many GBP and not enough USD, along with other traders. Then, To move their inventories, they have to sell GBP at USD $1.999, that is, 1/10 cent less than $2 per pound, and the exchange rate shifts. None of these banks has the power to increase or decrease the British M0 or the American M0; they are independent systems.

The Federal Reserve previously published data on three monetary aggregates, but on 10 November 2005 announced that as of 23 March 2006, it would cease publication of M3.[15] Since the Spring of 2006, the Federal Reserve only publishes data on two of these aggregates. The first, M1, is made up of types of money commonly used for payment, basically currency (M0) and checking account balances. The second, M2, includes M1 plus balances that generally are similar to transaction accounts and that, for the most part, can be converted fairly readily to M1 with little or no loss of principal. The M2 measure is thought to be held primarily by households. As mentioned, the third aggregate, M3 is no longer published. Prior to this discontinuation, M3 had included M2 plus certain accounts that are held by entities other than individuals and are issued by banks and thrift institutions to augment M2-type balances in meeting credit demands; it had also included balances in money market mutual funds held by institutional investors. The aggregates have had different roles in monetary policy as their reliability as guides has changed. The following details their principal components[19]:

  • M0: The total of all physical currency, plus accounts at the central bank that can be exchanged for physical currency.
  • M1: The total of all physical currency part of bank reserves + the amount in demand accounts (“checking” or “current” accounts).
  • M2: M1 + most savings accounts, money market accounts, retail money market mutual funds,and small denomination time deposits (certificates of deposit of under $100,000).
  • M3: M2 + all other CDs (large time deposits, institutional money market mutual fund balances), deposits of eurodollars and repurchase agreements.

When the Federal Reserve announced in 2005 that they would cease publishing M3 statistics in March 2006, they explained that M3 did not convey any additional information about economic activity compared to M2, and thus, “has not played a role in the monetary policy process for many years.” Therefore, the costs to collect M3 data outweighed the benefits the data provided.[15] Some politicians have spoken out against the Federal Reserve’s decision to cease publishing M3 statistics and have urged the U.S. Congress to take steps requiring the Federal Reserve to do so. Libertarian congressman Ron Paul (R-TX) claimed that “M3 is the best description of how quickly the Fed is creating new money and credit. Common sense tells us that a government central bank creating new money out of thin air depreciates the value of each dollar in circulation.”[20] Some of the data used to calculate M3 are still collected and published on a regular basis.[15] Current alternate sources of M3 data are available from the private sector.[21] However, some would argue[citation needed] that since the Federal Reserve has even less control over the fluctuations of M3 than over those of M2, it is unclear why this number is relevant to monetary policy.

As of 4 November 2009 the Federal Reserve reported that the U.S. dollar monetary base is $1,999,897,000,000. This is an increase of 142% in 2 years.[22] The monetary base is only one component of money supply, however. M2, the broadest measure of money supply, has increased from approximately $7.41 trillion to $8.36 trillion from November 2007 to October 2009, the latest month-data available. This is a 2-year increase in U.S. M2 of approximately 12.9%.[23] …”

http://en.wikipedia.org/wiki/Money_supply

 

 

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Heads Up To American People: A Permanent Bailout Fund Institution–American People To Political Class–No More Bailouts–Time To Throw The Bums Out

Posted on December 16, 2009. Filed under: Blogroll, Communications, Economics, Education, Employment, Energy, Fiscal Policy, government spending, Investments, Law, liberty, Life, Links, media, People, Philosophy, Politics, Quotations, Rants, Strategy, Technology, Video, Wisdom | Tags: , , , |

 

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The Progressive Radical Socialist Democratic Party wants to establish a permanent bailout slush fund of $200 billion as part of so-called financial regulation reform.

The American people have repeatedly made it clear they do not want any businesses or financial institutions to be bailedout by the Federal Government.

No more bailouts.

The progressive radical socialists are deaf, dumb and arrogant.

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The American people will vote out of office any Representative or Senator that votes for this bill.

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Commit political suicide.

Rest In Peace.

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On top of that, 56% of Americans oppose the passage of another economic stimulus package this year. While House Speaker Nancy Pelosi and other congressional Democrats are hoping to spend more to combat unemployment, just 33% favor another stimulus plan. …”

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“…U.S. officials ultimately decided CIT’s problems were too severe to be solved by any of the plans under review, said a Treasury spokeswoman. Government officials didn’t want to pump more money into the company because it didn’t seem to have a viable business plan, she said.

Whatever the eventual outcome, Treasury officials believe they will have lost their entire $2.3 billion investment in CIT, made last year under TARP, the spokeswoman said. That would be the first acknowledged loss of public money injected into financial companies.

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Second American Revolution–Tea Party Celebrations–Washington Fair–July 4, 2009–An Open Invitation To The American People 

American People’s Plan = 6 Month Tax Holiday + FairTax = Real Hope + Real Change!–Millions To March On Washington D.C. Saturday, July 4, 2009!

Millions of Rightwing Extremists To March On Washington D.C. Fair–Celebrating Independence Day Tea Parties and Chanting “Extremism in the defense of liberty is no vice!” 

 

Please Spread The Message of Liberty

liberty_bell1

 “Proclaim liberty throughout the land to all its inhabitants.”

 

 Let Freedom Ring  

 

 

 

Thomas Paine on to Washington

 

switchfoot-dare you to move(live)

Background Articles and Videos

Defending the American Dream

The U.S. Department of Injustice

By Michelle Malkin  •  June 5, 2009 09:56 AM

doj

“…My column today looks at the political corruption of the Obama Justice Department. With the crime-coddling crony Attorney General Eric Holder in charge, no one should be surprised, of course. Members of Congress who care about electoral integrity need to press the administration on who intervened in the New Black Panther Party case and why. Members of Congress who care about voter fraud need to press the administration on its decision to undermine Georgia voter verification rules. And members of Congress need to continue connecting the dots to ACORN and the larger plan to wield power to preserve and protect a permanent Democratic majority. …”

“…Former Justice Department official and voting rights scholar Hans Von Spakovsky added: “I have never heard of the Department dismissing a case it has already won by default. They have…sent the message that hurling racial epithets and slurs at voters and intimidating and threatening voters at the polls is fine with the Holder Justice Department – at least if you are African-American. I seriously doubt that would have happened if the races had been reversed in this case.” …”

http://michellemalkin.com/2009/06/05/the-us-department-of-injustice/

Document drop: The ObamACORN-Project Vote-nutroots axis

By Michelle Malkin 

“…Have you ever wondered why liberal blogs have shown zero interest in the coordinated corruption between the Obama campaign, ACORN, and its non-profit affiliates who are barred by law from engaging in partisan political activity?

Here’s an internal e-mail from Project Vote/ACORN lead official Nathan Henderson-James addressed to his “colleagues” — all editors and writers for the Left’s leading blogs, including Ezra Klein and Greg Sargent (now both working for the Washington Post). Henderson-James asks his colleagues for help in raising $850,000 for the Project Vote registration drive and thanks them for their “continued generosity and support” and “loyalty.” …”

http://michellemalkin.com/2009/06/02/document-drop-the-obamacorn-project-vote-nutroots-axis/

 

Document drop: The ObamACORN-Project Vote-NYTimes axis cont’d.

By Michelle Malkin

project_vote_logo  

 

“…As part of our ongoing look at the coordinated corruption between ACORN, Project Vote, and the Obama campaign, here’s another internal email between staffers discussing how to use the Obama donor list — and an April 2008 New York Times piece on Florida voter registration laws — to drum up more money and bodies for the Obama-promoting network: …”

“…Remember: Project Vote is a 501(c)(3) barred by law from engaging in political campaigning.

Background on the players: Nathan Henderson-James was the research director of Project Vote who served simultaneously as ACORN’s political strategist. He currently works on online campaigns at ACORN and was director of the “Strategic Writing and Research Department (SWORD)” at ACORN non-profit affiliate Citizens’ Services Inc (that’s the same outfit that the Obama campaign paid $800,000 to last year and failed to report to the FEC.) Karyn Gillette was the Ohio-based national Project Vote development director who also served as campaign consultant to the ACORN-friendly Democrat secretary of state in Ohio, Jennifer Brunner. Michael Slater was the deputy director of Project Vote who had served as an organizing team leader for District 1199 SEIU and as executive director of Minnesota ACORN. He’s currently executive director of Project Vote. Michael McDunnah is PV’s communications director. …”

http://michellemalkin.com/2009/06/02/document-drop-the-obamacorn-project-vote-nytimes-axis/

 

Barack Obama and the History of Project Vote

 

Holder undermines Georgia’s voter verification rules; ACORN cheers

By Michelle Malkin  

obamacorn

Photoshop credit: Leo Alberti

“…First, Attorney General Eric Holder and the DOJ protect the New Black Panther Party bullies who menaced a Philly voting station last fall.

Now, Holder and the DOJ are opening the voter fraud floodgates in Georgia. The Georgia secretary of state explains:

Obama Justice Department Decision Will Allow Non-Citizens to Register to Vote in Georgia
Decision Bars Georgia From Continuing Voter Verification Process

Georgia Secretary of State Karen Handel issued the following statement following the U.S. Department of Justice’s denial of preclearance of Georgia’s voter verification process:

Atlanta – “The decision by the U.S. Department of Justice (DOJ) to deny preclearance of Georgia’s already implemented citizenship verification process shows a shocking disregard for the integrity of our elections. With this decision, DOJ has now barred Georgia from continuing the citizenship verification program that DOJ lawyers helped to craft. DOJ’s decision also nullifies the orders of two federal courts directing Georgia to implement the procedure for the 2008 general election. The decision comes seven months after Georgia requested an expedited review of the preclearance submission.

“DOJ has thrown open the door for activist organizations such as ACORN to register non-citizens to vote in Georgia’s elections, and the state has no ability to verify an applicant’s citizenship status or whether the individual even exists. DOJ completely disregarded Georgia’s obvious and direct interest in preventing non-citizens from voting, instead siding with the ACLU and MALDEF. Clearly, politics took priority over common sense and good public policy. …”

http://michellemalkin.com/2009/06/02/holder-undermines-georgias-voter-verification-rules-acorn-cheers/

 

“ACORN is a criminal enterprise”

By Michelle Malkin  

“ACORN is a criminal enterprise.”

“…These are the five simple words that every conservative candidate and officeholder should be repeating often and loudly.

It’s about the fraud. It’s about the coordinated corruption. It’s about the effect on housing, the economy, and the entire electoral landscape.

Does the GOP get it yet? At least one Republican candidate does.

Kris Kobach, the former Bush administration national security/immigration enforcement official and constitutional lawyer, announced that he will run for Kansas Secretary of State last week. His prime motivation: stopping the ACORN racket: …”

http://michellemalkin.com/2009/06/01/acorn-is-a-criminal-enterprise/

 

Organized Crime

“… Organized crime or criminal organizations comprise groups or operations run by criminals, most commonly for the purpose of generating a monetary profit. The Organized Crime Control Act (U.S., 1970) defines organized crime as “The unlawful activities of […] a highly organized, disciplined association […]”.

Mafia is a term used to describe a number of criminal organizations around world. The first organization to bear the label was the Sicilian Mafia, known to its members as Cosa Nostra. In the United States, “the Mafia” generally refers to the Italian-American Mafia. Other organizations described as mafias include the Russian Mafia, the Chinese Triads, the Albanian Mafia, the Japanese Yakuza, the Neapolitan Camorra, the Mexican Mafia , and the French “Milieu”.

Some criminal organizations, such as terrorist organizations, are politically motivated (see VNSA). Gangs sometimes become “disciplined” enough to be considered “organized”. An organized gang or criminal set can also be referred to as a mob. The act of engaging in criminal activity as a structured group is referred to in the United States as racketeering. In the U.S., organized crime is often prosecuted federally under the Racketeer Influenced and Corrupt Organizations (RICO) Act.

http://en.wikipedia.org/wiki/Criminal_organization

 

National Crime Syndicate

“…The National Crime Syndicate was the name given by the press to a loosely-organized multi-ethnic organized crime syndicate, started in the 1930s, by Charlie “Lucky” Luciano, Meyer Lansky and other ethnic crime bosses based in New York City and New Jersey.

As revealed by the findings of U.S. Senate Special Committee in the 1950s chaired by Estes Kefauver, it was described as a confederation of mainly Italian and Jewish organized crime groups throughout the U.S.

According to some writers on organized crime, the Syndicate was founded or established at a May 1929 conference in Atlantic City, attended by leading underworld figures throughout the country, including Al Capone, Meyer Lansky, Johnny “The Fox” Torrio, Frank Costello, Joe Adonis, Dutch Schultz, Abner “Longy” Zwillman, Louis “Lepke” Buchalter, Vince Mangano, gambler Frank Erickson, Frank Scalice and Albert “Mad Hatter” Anastasia.[1] Others describe the Atlantic City meeting as a coordination and strategy conference for bootleggers.[2]

The supposed enforcement arm of the Syndicate was what the media dubbed Murder, Inc., a gang of Brooklyn thugs who carried out murders in the 1930s and 1940s for various crime bosses. It was headed by Jacob “Gurrah” Shapiro and Anastasia, who reported to commission members Lepke and Adonis. It included many infamous mobsters such as Bugsy Siegel, the man who would later “build” Las Vegas.

In his 1991 biography of Meyer Lansky, Little Man, journalist Robert Lacey argues that no National Crime Syndicate ever existed. “[J. Edgar] Hoover’s personal position, that the Mafia did not exist, has proven to be as erroneous as the Kefauver’s Committee’s belief in a national conspiracy.”[3]

…”

http://en.wikipedia.org/wiki/National_Crime_Syndicate

 

Chicago Outfit

“…The Chicago Outfit, shortened to “The Outfit” is a crime syndicate based in Chicago, Illinois, USA. Dating back to the 1910s, it is part of the United States phenomenon known as the Mafia; however, the Chicago Outfit is distinct from the “Five Families” of New York City, though all Italian-American crime families are ruled by The Commission.

The Outfit is the only criminal organization that has a monopoly on traditional organized crime in the city of Chicago, whereas the Five Families compete with each other for control of racketeering activities in New York. The Outfit’s control reportedly reaches throughout the western United States to places as far away as Los Angeles, California and parts of Florida. The Chicago Outfit is also known to have large control over neighboring states including Iowa, Wisconsin and other areas of the midwest

Unlike the “Five Families,” the Outfit has had other ethnic groups besides Italian Americans in its upper echelons since its earliest days. A prime example of this was the Jake Guzik (“Greasy Thumb”) who was the top “bagman” and “accountant” for decades until his death. He was Jewish and either Polish or Russian depending on the source. Another mobster was Japanese-American Ken Eto. To this day, the Outfit bears the influence of its best-known leader, Al Capone. In fact for decades after Capone had left the scene, the Outfit was known as “the Capone Gang” or “the Capones” to outsiders. The Outfit’s membership is moderately estimated to be between 300-400 made members comprising a core group with more than 1000 associates estimated. …”

http://en.wikipedia.org/wiki/Chicago_Outfit

Barack Obama & Organized Crime

“…As a community organizer Obama must have personally witnessed the human suffering inflicted by the mob-tied drug, gambling and prostitution rackets on the South Side, and later as a Chicago politician he must have been keenly aware of the corrosive effect on government resulting from mob influence. Organized crime long has permeated, if not defined, the Windy City, and is the subject of Gus Russo’s 2001 book The Outfit:  The Role of Chicago’s Underworld in the Shaping of Modern America.  Indeed, the political machine which produced Barack Obama historically was a mob front as detailed by Daniel T. Zanoza in his article “Will Obama Bring Daley Machine Roots to D.C.?”  And the so-called Family Secrets trial in 2007 which resulted in the conviction of several top members of the Outfit made it convincingly clear to any doubters that the mob in Chicago remained a viable but destructive force going into the 21st century…”

http://bitterqueen.typepad.com/friends_of_ours/2008/12/barack-obama-organized-crime.html

 

State Investigation of ACORN and Citizens Consulting Inc.

“…To:  Louisiana Attorney Citizens Consulting Inc General James D. Caldwell

WE, the undersigned citizens of the state of the State of Louisiana, do hereby petition and demand the following:

WHEREAS it is known that criminal charges have been filed against employees of the Association of Community Organizations for Reform Now, or more commonly referred to as ACORN, for voter registration fraud in 14 states, including 26 charges of compensation for registration of voters and 13 charges of being a “principal” in the incident in Nevada;

WHEREAS it is also publicly known Wade and Dale Rathke, former members or employees of ACORN, were caught embezzling over a million dollars from the coffers of the ACORN organization and have to date never been criminally charged with doing so;

WHEREAS it is also publicly known that the association called “Citizens Consulting Inc.” is the financial arm of the group ACORN and all organizations and groups that fall under it;

WHEREAS it is publicly known that the association named Citizens Consulting Inc., is located at 1024 Elysian Fields Ave, in the city of New Orleans, in the state of Louisiana;

WHEREAS it is also publicly known that the group ACORN is headquartered at the same address 1024 Elysian Fields Ave, in the city of New Orleans, in the state of Louisiana as the Citizens Consulting Inc;

WHEREAS it is also publicly known that Citizens Consulting Inc. is described as “ACORN’s campaign Consulting entity;”

WHEREAS it is also publicly known that Citizens Consulting Inc. receives all contributions and donations as well as grants and state and federal funds that are directed to the group ACORN, at its offices located at 1024 Elysian Fields Ave, New Orleans, LA;

WHEREAS it is also known that Citizens Consulting Inc. charges an “administration fee” for all contributions and donations, grants, state and federal funds that it receives in the name of ACORN and all groups that fall under the umbrella of ACORN;

WHEREAS it is not publicly known how much of an “administration fee” Citizens Consulting Inc. charges for administering these funds;

WHEREAS Citizens Consulting Inc. has repeatedly refused to give that information to any member of any board of directors of ACORN, to any employee of ACORN, to any member of any group that falls under ACORN’s umbrella, or to any one else inquiring into the amount or percentage that Citizens Consulting Inc. charges for administering these funds;

WHEREAS there is clear and convincing evidence supporting allegations of embezzlement and voter registration fraud against the group ACORN as well as of the Citizens Consulting Inc.’s refusal to provide information regarding it’s administration fees, it’s refusal to provide an audit of its financial books, and in general stonewalling any questions or inquiries into how it spends the contributions, donations, and the state and federal funds that it receives on behalf of the group ACORN, the citizens of the state of Louisiana hereby demand the following: …”

http://www.petitiononline.com/ACORNCC/petition.html

 

Citizen Consulting Inc.

“…Contact Information about Citizens Consulting Inc

Address: 1024 Elysian Fields Ave
New Orleans, LA,
70117-8402
Phone: 504-943-5954
Website: www.citizenscons… 

http://www.macraesbluebook.com/search/company.cfm?company=687961

 http://www.citizensconsulting.org/

Lou Dobbs – ACORN Fraud & Obama Ties

Lou Dobbs – ACORN Fraud & Obama Ties

 

Mafia-style President Pays Back His SEIU Muscle, Puts the Screws to Calif

“…Obama paid out at least $2,250,000 to the SEIU, the Service Employees International Union – the nation’s largest labor union. And SEIU COPE-PAC spent $13,355,389.00 on behalf of Barack Hussein.

Payback time for voter fraud and illegal campaign activity.

Between the SEIU and ACORN, the Chicago gangland style politician muscle for money and protection racket is all locked up. And now he is going nationwide with it.

More illegal harassment and intimidation – more blackmail from the thug-in-chief. …”

http://atlasshrugs2000.typepad.com/atlas_shrugs/obamas-mafia-presidency/

 

Unplugged: The SEIU chief on the labor movement and the card check

He’s signaling a truce with Culinary but has harsh words for its parent, Unite Here

“…In Andy Stern’s world view, bigger is better.

And better still if the center of that world is his 2-million-member Service Employees International Union.

To hear him tell it, two of the nation’s most progressive unions would not now be at war had they only listened to his advice five years ago. Back then, as Unite, the garment and apparel workers union, and Here, the hotel and casino workers union, considered merging, Stern suggested an alternative: join SEIU, which was surging forward as the country’s largest and fastest-growing union. …”

“…We have an affiliation agreement that is crystal clear. Workers United wasn’t going to let us anywhere near their Amalgamated Bank and we didn’t want to be near that bank. This is an asset that’s been in Unite’s control for 50, 60 years. Workers United’s assets are not SEIU’s assets. They brought it to the relationship and it’s theirs.

As for SEIU, every four years, two things happen: our union’s convention and our country’s presidential election. For four years we save our money and then on the fourth year we spend it all. If we were trying to be a bank and not an advocate for our members’ interests, our members would be really disappointed. We are not a savings institution.

We spent a fortune to elect Barack Obama — $60.7 million to be exact — and we’re proud of it. …”

http://www.lasvegassun.com/news/2009/may/10/stern-unplugged-seiu-chief-labor-movement-and-card/

George Soros and Acorn in the 2008 Elections

 

Intro to SEIU from Andy Stern

 

Andy Stern talks health care with Obama

 

Obama speaks to SEIU (9/17/2007) Part 1 of 5

 

Obama speaks to SEIU (9/17/2007) Part 2 of 5

 

Obama speaks to SEIU (9/17/2007) Part 3 of 5

 

Obama speaks to SEIU (9/17/2007) Part 4 of 5

 

Obama speaks to SEIU (9/17/2007) Part 5 of 5

More Perspective – TARP Nominee – Bloomberg

 

Organized crime penetrates the movie industry in the 1930s

 

Organized crime in Los Angeles in 1930s

 

Related Posts On Pronk Palisades

Hype: The Obama Effect–Videos

The 12 Trillion–$12,000,000,000,000 Crime of The Century: The Decline and Fall of United States of America By Radical Socialist Spending–Look Before You Leap!

The Financial Crime of The Century: William K. Black On Massive Mortgage Fraud –Videos

ACORN Or Association of Community Organizations for Reform Now–Good Intentioned People Lead By Criminal Organizers–Demand A Special Prosecutor To Investigate!–Videos

Voters Beware: The Radical Rules of Saul Alinsky and Leftist Democrats

ACORN–Association of Community Organizations for Reform Now–Obama’s Red Shirts

Obama–ACORN–CRA–Congress–Democratic Party–Fannie Mae–Barrack Obama’s Kansas Values–Killing Babies in Cold Blood?

Big Bad Bureaucratic Bust: Government Intervention in Housing Caused Financial Crisis and Economic Recession–Progressive Government Failure!

US Federal Government Fails Stress Test–Insolvent: Time Has Arrived For Downsizing–Departments and Subsidies To Be Eliminated!

The Mother of All Bailouts–2 to 3 Trillion Dollars–$2,000,000,000–$3,000,000,000!–Rewarding Greed, Arrogance and Stupidity–Pay for Play!

Bailed Out Bank Trillion Dollar Derivative Exposure

Federal Government Extortion Of Sound Banks–You Decide?–Take This TARP and Shove It!

Obama Fully Supports Ending Secret Ballot For All Employees–Are Voters Next?–Employee Free Choice Act a.k.a. Card Check is Ballot Check Next?

President Obama’s Cloward-Piven Strategy of Controlled Crisis Creation Crippling Capitalism–Coup D-Etat On America

President Obama–Killer of The American Dream and Market Capitalism–Stop The Radical Socialists Before They Kill You!

Schiff, Forbers and Bloomberg Nail The Financial Crisis and Recession–Mistakes Were Made–Greed, Arrogance, Stupidity–Three Chinese Curses!

Amity Shlaes–Videos

Thomas E. Woods, Jr.–Videos

The Monetarization of The Debt and Quantitative Easing: The Federal Reserve is printing $1,000,000,000,000!–Run-Away Inflation Coming Soon!

Bailed Out Bank Trillion Dollar Derivative Exposure

Banking–Videos

Creature from Jekyll Island: The Federal Reserve System–Videos

The Monopoly Men: The Federal Reserve Bank Cartel–Videos

L. William Seidman on The Economic Crisis: Causes and Cures–Videos 

White House Memo: Carbon Dioxide Is Not A Pollutant and A Cap And Trade Program (Carbon Dioxide Tax) Serious Economic Impact –The Smoking Gun Video!

Gore Grilled & Gingrich Gouged–American People Oppose Massive Carbon Cap and Trade Tax Increase–Videos

Save Your Job and Life–Abolish The Environmental Protection Agency!

MAJOR REDUCTIONS IN CARBON EMISSIONS ARE NOT WORTH THE MONEY DEBATE–Videos

General Electric’s Jeff Immelt Either Unplugs Maddow & Olbermann on MSNBC or Gets Unplugged For Supporting Serial Baby Mass Murderer!

Barrack Obama’s Kansas Values–Killing Babies in Cold Blood?

Eugenics, Planned Parenthood, Population Control, and Designer Babies–Videos

Cap and Trade Carbon Dioxide Tax: Gore’s and Obama’s Revenge on The American People–Let Them Freeze and Sweat!

Barack Obama’s Socialist Green Commissar Carol Browner

ANWR: Pristine–Pristine–Pristine–Desolute–Desolute–Desolute–Drill–Drill–Drill– McCain/Romney: Drill Here. Drill Now. Pay Less!

Al Gore 2.0 and The Coming Renewable Energy Ice Age–The Big Chill

National Center for Policy Analysis–A Global Warming Primer

Global Warming is The Greatest Hoax, Scam and Disinformation Campaign in History

Global Warming Videos

Global Warming Books

Global Warming Sites

Al Gore: Agent of Influence or Useful Idiot of Disinformation

Al Gore: Agent of Influence and Planetary Propeller Head!

Al Gore’s Little White Lie: Man-Made Global Warming Causing Polar Bears To Drown

Al Gore’s Big Whopper–Sea Levels Rise By 2100: Gore 20 Feet vs IPCC 2 Feet?

Clinton’s Cap and Trade Tax on The American People for Consuming Electricity and Driving Cars, SUVs and Trucks!

Facing Fundamental Facts

Let Them Eat Cake Act: American Elites Killing and Starving The American People

The Heidelberg Appeal: Beware of False Gods and Prophets

A New Political Party In The United States? American Citizens Alliance Party–ACAP On Government Spending, Taxes, Debt, and Regulations!

Read Full Post | Make a Comment ( 30 so far )

The 12 Trillion–$12,000,000,000,000 Crime of The Century: The Decline and Fall of United States of America By Radical Socialist Spending–Look Before You Leap!

Posted on April 21, 2009. Filed under: Blogroll, Economics, Education, Employment, Investments, Law, Links, People, Politics, Quotations, Rants, Raves, Science, Security, Taxes, Technology, Video | Tags: , , , , , , , , |

“The ultimate test of a moral society is the kind of world that it leaves to its children.”

~Dietrich Bonhoeffer

 radical_socialists

DEBT Crisis: The Bail Out and Tarp Totals

4/18/2009 Peter Schiff On Your Money: Banking On TARP

U.S Treasury

Department Office of Financial Stability

Troubled Asset Relief Program

http://www.financialstability.gov/docs/transaction-reports/transaction_report_04-20-2009.pdf

Congresswoman Bachmann Discusses Reforms to the TARP Program on Glenn Beck

Small Banks Repay TARP, Big Banks Still Owe

Bank Stress Test Hits D.C.

Bank Stress Test Breakdown

In-Depth Look – Limits Of Bank Stress Tests – Bloomberg

In-Depth Look – Stress-Testing the Banks – Bloomberg

20/20 – Bailouts and Bull**** Pt. 1 of 6

John Stossel interview with Reason Magazine Part 1 of 2

Dennis Prager & Thomas Sowell – Part 3/3: Stimulus, Bailouts,

Glenn Beck The economy is Sinking in Debt

President Obama’s and the Democratic Party’s radical socialist agenda to takeover banking, insurance, and industry by nationalization is becoming increasing obvious, if not totally transparent.

The total in committed government spending so far exceeds 12 Trillion Dollars–$12,000,000,000,000!

Unless the American people protest these unconstitutinal bailouts, 12 trillion could just be the down-payment:

Bailed Out Bank Trillion Dollar Derivative Exposure

Where the government has a near monopoly and runs a sector of the economy, the results can be horrendous with widespread failure.

One example is public schools or more accurately government schools.

The government school near monopoly have over the last fifty years slowly but surely resulted in the decline in the level of education of US citizens in comparison to the citizens of other countries.

Stupid in America

President Obama would never put his own children in government schools.

Obamas Chose Private Sidwell Friends School

George Carlin on American Owners and Education

George Carlin – List of people who ought to be killed

However, President Obama opposes other American parents from having the choice as to where their children go to school.

School Vouchers Killed by Democrat Congress – All poor children to be left behind now – Glenn Beck

The Case for School Vouchers

President Obama and the Democratic Party oppose school vouchers or money given to parents to be used to pay for the tuition of their children at the school of their choice.

If President Obama really cared about the education of our children, he would support school vouchers and more competition in education, not less.

Instead he used the stimulus bill to fund public education–more money for failing government schools–in order to reward his political supporters the teacher unions.

Rewarding the performance of outstanding teachers, charter schools and school voucher programs received very little funding or no funding in the stimulus package.

Rhetoric and Reality in the Education Stimulus Bill

Bill Gates presses Obama on stimulus, global aid

The None Stimulus Package

Why should you send your children to government schools?

Why should you put your money in government banks?

Why indeed as long as there are competitive private schools and banks?

If you value your children and money never send them to a government controlled, owned and operated institution.

Minds are precious and money is hard to earn.

Minds and money are terrible things to waste.

Next to the unions and trial lawyers, President Obama’s biggest supporters and campaign contributors have been Wall Street financial institutions including the executives and board members of the largest commercial and investment banks.

President Obama’s and the Democratic Party’s radical socialism agenda should be boycotted not stimulated and certainly not encouraged with your tax dollars or business.

Find another bank that either did not take a bailout or TARP money or were forced to take TARP money and have already or want to pay the money back.

Then move your account and business to a private bank that serves your needs.

Shun all banks, businesses, and institutions that accept government funding or subsidies.

If you have children, home school them if you can or take a second job and send them to the best private school you can afford.

LOL

We’re Still Getting SCREWED…

Join the Second American Revolution

Second American Revolution–Tea Party Celebrations–Washington Fair–July 4, 2009–An Open Invitation To The American People

American People’s Plan = 6 Month Tax Holiday + FairTax = Real Hope + Real Change!–Millions To March On Washington D.C. Saturday, July 4, 2009!

Please Spread The Message of Liberty

“Silence in the face of evil is itself evil; God will not hold us guiltless. Not to speak is to speak. Not to act is to act.”

~Dietrich Bonhoeffer

Bonhoeffer Agent of Grace

 Background Articles and Videos

Dietrich Bonhoeffer

“…Dietrich Bonhoeffer IPA[ˈdiːtrɪç ˈboːnhøfɐ] (February 4, 1906 – April 9, 1945) was a German Lutheran pastor, theologian, participant in the German Resistance movement against Nazism, a founding member of the Confessing Church. His involvement in plans by members of the Abwehr (the German Military Intelligence Office) to assassinate Adolf Hitler resulted in his execution. Bonhoeffer was arrested in March 1943, imprisoned, and eventually executed by hanging shortly before the war’s end.[1] …”

http://en.wikipedia.org/wiki/Dietrich_Bonhoeffer

Nationalization

“Nationalization, also spelled nationalisation, is the act of taking an industry or assets into the public ownership of a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being state operated or owned by the state. The opposite of nationalization is usually privatization or de-nationalisation, but may also be municipalization. A renationalization occurs when state-owned assets are privatized and later nationalized again, often when a different political party or faction is in power. A renationalization process may also be called reverse privatization.

The motives for nationalization are political as well as economic. It is a central theme of certain brands of ‘state socialist’ policy that the means of production, distribution and exchange, should be owned by the state on behalf of the people to allow for rational allocation and operation, and rational planning or control of the economy. Many socialists believe that public ownership enables people to exercise full democratic control over the means whereby they earn their living and provides an effective means of redistributing wealth and income more equitably.

Nationalized industries, charged with operating in the public interest, may be under strong political and social pressures to give much more attention to externalities. They may be obliged to operate some loss making activities where social benefits are clearly greater than social costs – for example, rural, postal and transport services. As an instance, the United States Postal Service is guaranteed its nationalised status by the Constitution. The government has recognized these social obligations and, in some cases, provides subsidies for such non-commercial operations.

Since the nationalised industries are state owned, the government is responsible for meeting any debts incurred by these industries. The nationalized industries do not normally borrow from the domestic market other than for short-term borrowing.

Nationalization may occur with or without compensation to the former owners. If it takes place without compensation it is a case of expropriation. Nationalization is distinguished from property redistribution in that the government retains control of nationalized property. Some nationalizations take place when a government seizes property acquired illegally. For example, the French government seized the car-makers Renault because its owners had collaborated with the Nazi occupiers of France. …”

“…A key issue in nationalization is payment of compensation to the former owner. The most controversial nationalizations, known as expropriations, are those where no compensation, or an amount far below the likely market value of the nationalized assets, is paid. Many nationalizations through expropriation have come after revolutions.

The traditional Western stance on compensation was expressed by United States Secretary of State Cordell Hull, during the 1938 Mexican nationalization of the petroleum industry, that compensation should be “prompt, effective and adequate.” According to this view, the nationalizing state is obligated under international law to pay the deprived party the full value of the property taken. The opposing position has been taken mainly by developing countries, claiming that the question of compensation should be left entirely up to the sovereign state, in line with the Calvo Doctrine. Communist states have held that no compensation is due, based on socialist notions of private properties.

In 1962, the United Nations General Assembly adopted Resolution 1803, “Permanent Sovereignty over National Resources”, which states that in the event of nationalization, the owner “shall be paid appropriate compensation in accordance with international law.” In doing so, the UN rejected both the traditional Calvo-doctrinist view and the Communist view. The term “appropriate compensation” represents a compromise between the traditional views, taking into account the need of developing countries to pursue reform even without the ability to pay full compensation, and the Western concern for protection of private property.

When nationalizing a large business, the cost of compensation is so great that many legal nationalizations have happened when firms of national importance run close to bankruptcy and can be acquired by the government for little or no money. A classic example is the UK nationalization of the British Leyland Motor Corporation. At other times, governments have considered it important to gain control of institutions of strategic economic importance, such as banks or railways, or of important industries struggling economically. The case of Rolls-Royce plc, nationalized in 1971, is an interesting blend of these two arguments. This policy was sometimes known as ensuring government control of the “commanding heights” of the economy, to enable it to manage the economy better in terms of long-term development and medium-term stability. The extent of this policy declined in the 1980s and 1990s as governments increasingly privatized industries that had been nationalized, replacing their strategic economic influence with use of the tax system and of interest rates.

Nonetheless, national and local governments have seen the advantage of keeping key strategic assets in institutions that are not strongly profit-driven and can raise funds outside the public-sector constraints, but still retain some public accountability. Examples from the last five years in the United Kingdom include the vesting of the British railway infrastructure firm Railtrack in the not-for-profit company Network Rail, and the divestment of much council housing stock to “arms-length management companies”, often with mutual status. …”

http://en.wikipedia.org/wiki/Nationalization

Why Investors Should Avoid State-Owned Companies

By William Gamble

“…In the United States, I have heard talk show hosts often ask the question, “why can’t government run like a business.” The answer is simple. They have the wrong incentives and disincentives. It has to do with game theory.

Principals have to hire agents to run things. Principal are the owners, employers, shareholders and citizens. Agents are the employees, managers and government officials. Agents are supposed to act in their principals’ best interests. Employees are supposed to do their jobs. Managers are supposed to run their companies with shareholder value in mind. Politicians of all countries are supposed to implement policies that benefit all of their citizens. Often they don’t.

In the US, we are now being treated to the spectacle of AIG and Merrill Lynch bonuses. This is generally viewed as some sort of moral failure, but it is nothing of the sort. These agents are just acting naturally. They are looking after their own interests. They did not really care if the owners of their firms, either shareholders or now the US government, lost. In game theory, an agent’s best move is to act for themselves, not for the principal. The principal knows this and attempts to offer economic incentives and disincentives, to get the agent to perform. …”

“…The current economic crisis has now reversed the trend of privatization of many state owned firms all over the world. The perception of the failure of capitalism has made nationalization more acceptable. Firms from China to Russia to Dubai have received injections of capital from the state. Bolivia and Venezuela have resorted to old fashion nationalization. In China, airlines, power generation, car companies and banks have all received capital from the state. One of China sovereign wealth funds, China Investment Corporation, having been burned by investments in the west, is now focusing its attention to buying companies in China. It seems that no politician can resist expanding not only political power but economic as well.

Finally, it comes down to one thing: state firms manage for political reasons, not for profit, whether those reasons are to try and increase access to natural resources for national security or to find jobs for the unemployed. Either way, it makes little difference to investors or minority shareholders. Value and efficiency will always take a back seat. Although some growth may occur, it will only last until the needs of the state take priority. …”

http://seekingalpha.com/article/126601-why-investors-should-avoid-state-owned-companies

U.S. May Enlist Small Investors in Bank Bailout

By GRAHAM BOWLEY and MICHAEL J. de la MERCED

“…Now, it seems, they will be asked to come to the aid of their banks — with the added inducement of possibly making some money for themselves.

As part of its sweeping plan to purge banks of troublesome assets, the Obama administration is encouraging several large investment companies to create the financial-crisis equivalent of war bonds: bailout funds.

The idea is that these investments, akin to mutual funds that buy stocks and bonds, would give ordinary Americans a chance to profit from the bailouts that are being financed by their tax dollars. But there is another, deeply political motivation as well: to quiet accusations that all of these giant bailouts will benefit only Wall Street plutocrats.

The potential risks — politically for the administration, and financially for would-be investors — are considerable.

The funds, the thinking goes, would buy troubled mortgage securities from banks, enabling the lenders to make the loans that are needed to rekindle the economy. Many of the loans that back these securities were made during the subprime era. If all goes well, the funds will eventually sell the investments at a profit.

But, as with any investment, there are risks. If, as some analysts suspect, the banks’ assets are worth even less than believed, the funds’ investors could suffer significant losses. Nonetheless, the administration and executives in the financial industry are pushing to establish the investment funds, in part to counter swelling hostility against the financial industry. …”

http://www.nytimes.com/2009/04/09/business/09fund.html?_r=1&hpw

The Million Taxpayer March

By Michelle Malkin

“…If only the condescending cable TV anchors at CNN and MSNBC had paused from wallowing in gutter puns about tea bags, they might have reported an even more significant phenomenon: Tea Party protesters were as vocal in their criticism of Republicans as they were of Democrats. In Salt Lake City, Utah, a crowd of 2,000 repeatedly booed GOP Sens. Orrin Hatch and Bob Bennett, who both supported the $700 billion TARP bailout, and protested GOP Gov. Jon Huntsman’s decision to accept $1.6 billion in porky stimulus funds.

In Sacramento, Tea Party organizer Mark Meckler singled out California GOP chair Ron Nehring for waffling on proposed $16 billion tax hikes. The crowd of 5,000 greeted Nehring – who unsuccessfully tried to hitch his wagon to the Tea Party movement – with a roar of boos and catcalls. Speaker after speaker lambasted Republican Gov. Arnold Schwarzenegger for abandoning fiscal conservative principles. The loudest chant of the day: “Throw them out.” …”

“…What resonated on Tax Day were non-partisan calls to roll back pork, hold the line on taxing and spending, end the endless government bailouts, and stop the congressional steamrollers who have pushed through mountains of legislation without deliberation. This is a teachable moment for GOP public relations peddlers in Washington. While they search for the Holy Grail of Re-branding in tony salons and country club conferences, the agenda for 2010 is smacking them in the face. It’s the three T’s, stupid: Too Many Taxes, Trillions in Debt, and Transparency. …”

http://michellemalkin.com/2009/04/17/the-million-taxpayer-march/

Peter Schiff pulling no punches now – US BANKS are WORTHLESS!

Obama and Rockefeller 1

Obama and Rockefeller 2

Revelle Forum: David Rockefeller

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20/20 – Bailouts and Bull**** Pt. 3 of 6

20/20 – Bailouts and Bull**** Pt. 4 of 6

20/20 – Bailouts and Bull**** Pt. 5 of 6

20/20 – Bailouts and Bull**** Pt. 6 of 6

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Federal Government Extortion Of Sound Banks–You Decide?–Take This TARP and Shove It!

Posted on April 4, 2009. Filed under: Blogroll, Communications, Economics, Investments, Law, Links, Politics, Regulations, Video | Tags: , , , , , |

 

 
 new_rules1

 Why Is The United States Government Extorting Banks?

Glenn Beck Shorts 04-06-09 Obama Coerces Threatens Banks

 

 7 : 7 FRONTLINE: Inside The Meltdown

 

In-Depth Look – Returning TARP Funds – Bloomberg

 

 ROUBINI NATIONALIZATION OF BANKS !!!


 

 

The reason why bank nationalization hasn’t been done

cnn – lou dobbs – what foreign policy?

holders_of_the_national_debt_of_the_united_states

 

 

 

I only wish one or more bank executives would go public and demand the Federal Government take back their TARP money that many banks were extorted or forced to take in the first place.

Tell the Federal Government to take a hike and give the money back to the American taxpayers.

Looks like the politicians and bureaucrats of both political parties just wanted the bankers to shutup.

Who the hell do these people think they are?

Take your TARP and shove it!

America Moving Toward Fascism

 

AIM Award Video

 

FIX IT NOW – Plan to Actually SOLVE THE PROBLEM

 

 

Background Articles and Videos

 

The REAL REASON For The Bailout (Hint: FOREIGNERS)

 

The Potential End Of America’s Government

 

United States government debt

The United States government debt, commonly called the “public debt” or the “national debt“, is the amount of money owed by the federal government of the United States to holders of U.S. debt instruments. Debt held by the public is all federal debt held by states, corporations, individuals, and foreign governments, but does not include intragovernmental debt obligations or debt held in the Social Security Trust Fund. Types of securities held by the public include, but are not limited to, Treasury Bills, Notes, Bonds, TIPS, United States Savings Bonds, and State and Local Government Series securities.[1]

As of March 16, 2009, the total U.S. federal debt was $11,042,553,971,450.47,[2] or about $36,314 per capita. Of this amount, debt held by the public was roughly $6.74 trillion.[3] In 2007, the public debt was 36.8 percent of GDP,[4] with a total debt of 65.5 percent of GDP.[5] The CIA Factbook ranked the total percentage as 22nd in the world.[6]

Public debt is the amount owed by the government to its creditors, whether they are nationals or foreigners. External debt is the debt of all sectors of the economy (public and private), owed to foreigners. In the U.S., foreign ownership of the public debt is a significant part of the nation’s external debt. The Bureau of the Public Debt, a division of the Department of the Treasury, calculates the amount of money owed by the national government on a daily basis.[7][8][9][10]

 http://en.wikipedia.org/wiki/United_States_public_debt

 

Bankers: Take your TARP money back
Some banks say the government’s stabilization plan is actually weighing them down.

“…”Things have changed since TARP was announced. The rules have changed,” said Michael McMullan, CEO of the Bank of Florida, who withdrew his application for TARP funds Thursday. “We’re going to need to attract and retain key revenue drivers and great bankers.”

“The more restrictions that we are placed under from the Government, the less value we can deliver to our shareholders in the long run,” said McMullan.

Iberiabank in Louisiana, California’s Bank of Marin, and TCF Financial in Minnesota confirm to CNN Money that they are asking Treasury to take back their TARP funds.

“What these bank managers are saying is – listen, I want the Government out of my backyard, and I just want to give back the TARP, and I want to run my company by myself,” said Paul Miller, Financial Services Analyst at FBR Capital.

Goldman Sachs (GS, Fortune 500), Bank of New York/Mellon (BK, Fortune 500), Wells Fargo (WFC, Fortune 500), JP Morgan Chase (JPM, Fortune 500) and Bank of America (BAC, Fortune 500) – all ‘mega-banks’ that the government forced to take bailout money – say they want to return taxpayer funds “as soon as practical.” …”

http://money.cnn.com/2009/03/27/news/economy/tarp_takeback/

 

Iberiabank, Signature Among First to Redeem U.S. TARP

“…Iberiabank, the first to apply to return the money, redeemed the shares for $90 million, will record a $2.2 million first-quarter charge and a $1.1 million dividend tied to the capital, the Lafayette, Louisiana-based lender said in a statement today. Old National said it redeemed $100 million, Signature Bank bought back $120 million and Bank of Marin paid $28 million.  

The lenders are the first to redeem investments in the U.S. Treasury’s Troubled Asset Relief Program. Signature and Iberiabank had said they wanted to repay to escape limits associated with accepting the aid. The Federal Reserve has urged banks receiving bailout funds to reconsider dividends, and President Barack Obama’s administration has limited bonuses for senior executives and the next 20 most highly paid employees at companies receiving more than $500 million in TARP funds.

A February revision to the bailout as part of a federal stimulus package “adversely affected our business model and it became apparent that we should return these funds to the Treasury,” Signature Chief Executive Officer Joseph DePaolo said today in a statement.

Old National performed a “rigorous stress test” comparable with the examinations required by the U.S. Treasury, before deciding to return its TARP funds, the Evansville, Indiana-based company said in a statement. Corte Madera, California-based Bank of Marin repurchased the TARP preferred shares and paid $178,888.89 in dividends to the Treasury. …”

http://www.bloomberg.com/apps/news?pid=20601087&sid=aLs7ZzKUMxz8&refer=home

 

Banks are now eager to repay TARP

Many that have taken government money are dismayed by changing rules and public outrage.

By Christina Rexrode

“…For relatively strong banks, doing business with the government may be more trouble than it’s worth.

Banks are publicly declaring their intent to pay back loans from the Troubled Asset Relief Program, or TARP, as quickly as they can. They range from Charlotte-based Bank of America Corp., which is the country’s biggest bank, to tiny Iberiabank Corp. in Lafayette, La.

The banks complain about the rules that the U.S. Treasury keeps imposing on them retroactively, sometimes in ways that seem arbitrary or driven by constituents’ anger.

Some say they never needed the money but were cajoled into taking it by the Treasury, which wanted a show of industry support for its program.

Others say they’re dismayed by the public’s outrage toward banks that participate in TARP, which was originally touted as a reward of sorts for healthy banks.

To be sure, the government has always had regulatory power over the banks. But at the companies where it’s now a major shareholder, its grip is getting significantly tighter as it gets involved in decisions about everything from corporate jets to mortgage modifications. …”

http://www.charlotteobserver.com/business/story/622532.html

 

Suddenly, TARP money looks … bad; Update: Congress gets a clue

“…We heard a little at the beginning of the bank bailout that some were strongarmed into accepting TARP monies.  Wells Fargo reportedly was forced to take $5 billion.  Why?  The Obama administration and Treasury wanted to keep dissent from their strategy to a minimum, and seeding the industry on the widest possible scale helped demonstrate its necessity — and provided incentive for dissenters to keep their mouths shut.

Local bank TCF, run by William Cooper, had been vocal about its disillusion with the program.  Cooper had announced earlier that he wanted to give the money back, but Treasury has yet to create a payback mechanism.  Why not?  The TARP monies gave Geithner and Congress an opening to dictate compensation policies and lending practices to a much greater depth than prior regulation allowed.  They don’t want the money as much as they want the leverage to keep their fingers in the business operations at the banks. …”

http://hotair.com/archives/2009/03/26/suddenly-tarp-money-looks-bad/

 

Man detained and harassed at airport for carrying CASH!

 

  

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Obama’s Marxist Magic Mess–Big Bad Bonuses–Radical Socialist Sleight of Hand

Posted on March 19, 2009. Filed under: Blogroll, Economics, Employment, Investments, Links, Music, Politics, Quotations, Rants, Raves, Regulations, Taxes, Technology, Video | Tags: , , , , , , |

“Interventionism cannot be considered as an economic system destined to stay. It is a method for the transformation of capitalism into socialism by a series of successive steps.”

“The essence of the interventionist policy is to take from one group to give to another. It is confiscation and distribution.”

“An essential point in the social philosophy of interventionism is the existence of an inexhaustible fund which can be squeezed forever. The whole system of interventionism collapses when this fountain is drained off: The Santa Claus principle liquidates itself.”

 

 

~Ludwig von Mises

Why Are Dems Outraged Over AIG Bonuses When They Benefit Too?

 

ABC Panel Discusses AIG Bonuses

 

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Penn and Teller Explain Sleight of Hand

 

Both President Obama and the Democrats in the House and Senate are going on and on about all those big bad bonuses totaling $165 million that AIG gave its employess.

 

 

The Democratic Party’s radical socialists wanted the bailouts in the first place so they could nationalize or socialize the banking industry that is in financial crisis or trouble over their investments in mortage backed securities and related derivative securities.

I was and remain opposed to any government intervention into the financial markets by providing capital in the form of a loan to prevent a business going into bankruptcy or liquidation.

The bonuses are a contract between the company, AIG, and its employees.

If there had been no bailout of AIG, AIG would be in bankruptcy or liquidation and the the employees’ contracts would have been set aside.

Once the Federal Government bailedout AIG and the funds were now available for bonsues–the contracts were honored and paid.

The Democrats led by Senator Dodd actually put language in the bill that permitted the payment of bonuses by AIG!

 

Sen. Christopher Dodd says he was responsible for the AGI bonus loophole

 

Carl Cameron Reports Sen. Chris Dodd saved AIG Bonuses

 

liberal Hypocrisy- chris dodd The Liar On AIG Bonuses

 
 

Then the Democrats rushed the bills through Congress without even reading their own words!

Congress should be forced to return their own paychecks for not doing their own jobs.

The arrogant and clueless Democrats wanted the bailouts for their friends and campaign contributors on Wall Street.

Obama Fundraising

 

Obama Ranks Second In Freddie/Fannie Contributions

AIG executives who received the bonuses also gave Senator Dodd campaign contributions totaling over $100,000.

“…Dodd’s state of Connecticut is home to a large division of AIG, which has given the former Democratic presidential candidate more money than to any other lawmaker. Dodd received more than $101,000 in campaign donations from AIG employees in 2008 and $223,000 since 2003, according to OpenSecrets.org. …”

http://www.sfexaminer.com/local/Dodd-silent-on-language-in-stimulus-that-allows-AIG-bonuses_03_18-41404342.html

 

Blame the Democrats for this mess and its continuation.

Bailouts beget more bailouts.

Government intervention leads to more government intervention.

Ban Bailouts.

No amount of hand waving and feigned outrage over $165 million in bonuses will distract the American people from the reality that the Democrats want anywhere from $3 trillion ($3,000,000,000,000) to $4 trillion ($4,000,000,000) for the Federal Government to purchase so-called “troubled-asset” or invest additional money in failing companies.

Forget about the bonuses, focus on who AIG in turn sent to the bailout money to meet AIG’s contracts with them and the amounts:

  • Goldman Sachs:                                         $   12,900,000,000 or $12.9 billion
  • Merril Lynch:                                             $    6,800,000,000 or $6.8 billion
  • Bank of America:                                        $    5,200,000,000 or $5,2 billion
  • Citi Group:                                                $    2,300,000,000 or $2.3 billion
  •  Wachovia                                                $    1,500,000,000 or $ 1.5 billion
  • Société Générale of France            nearly  $   12,000,000,000 or $12 billion
  • Deutsche Bank of Germany            nearly  $   12,000,000,000 or $12 billion
  • Barclays of Britain                                   $     8,500,000,000 or $8.5 billion
  • UBS of Switzerland                                  $     5,000,000,000 or $5 billion

The reason AIG was “too big to fail” is that if it were not bailouted, many other financial institutions in the United States and abroad would also be signficantly impacted.

Why is United States bailingout foreign banks, the American people would like to know?

Did executives of Goldman Sachs, Merril Lynch, Bank of America, Citi Group, Wachovia, and AIG make signigicant campaign contributions to the Democratic Party and its candidates including Senator Dodd and President Obama?

You bet they did!

Who was responsible for the irresponsible mortage loans in the first place?

The Democratic Party including the Congressional Black Causus and the Congressional Progressive Causus!

 

Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis

 

 

Obama & the Congressional Black Caucus are responsible for the financial melt-down

 

The very people that are now complaining  about $166 million in bonuses  paid by AIG to their employees are also the very same people that bear a large share of the blame for causing the financial crisis in real estate mortage loans and related securites!

Keep your eyes on ball and not the the radical socialist sleight of hand.

Forget about the bonuses.

Stop all the bailouts now.

Boycott any company or bank that accepts bailout money. 

Cut Senator and Congress pay in half for financial incompetence.

Better yet fire the greedy, arrogant, stupid bastards!

 LOL

It’s not AIG. It’s the GOV…

A Special Message from Barack Obama’s Teleprompter

 

Incompetent obama’s Teleprompter Crutch- The one Seeks Dialogue With taliban


 

Tarp Song “I Want Some Tarp” by Bill Zucker ” Stimulus and tarp 2 song

 
 

Bailout Figures

Current Bailout Amount: $11,623,630,000,000

“…TARP and the bailouts of Bear Stearns and Citigroup are just the tip of the iceberg. So far, our government committed more than $11.6 TRILLION to funding failed companies (that’s over $60,000 per family in America!), and has spent $3.8 trillion of that in just a few months. (Mouse over the circles below to see the details.)
Yeah, it’s really that bad.

What’s worse? It’s not making a difference. The line for bailouts is growing, and includes the telecom industry, airlines, as well as city and state governments.
We’ve got to do something.

Obama talks a tough game about bailouts, but his own stimulus package and his bank bailout proposal hand BILLIONS more of our dollars to failed companies. …”the gent to DO WHAT’S RIGHT: Stop the bailouts!

http://www.right.org/bailout/main

 

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Huge amounts of AIG bailout went to Goldman Sachs

“Goldman Sachs (GS) seems to do everything right, even in the midst of disaster. It turns out AIG (AIG) paid it large sums of money from funds provided by the government.

According to The Wall Street Journal, Goldman got about $6 billion in the last four months of 2008. “The government’s rescue of AIG helped prevent its counterparties from incurring immediate losses on mortgage-backed securities and other assets they had insured through AIG,” the paper writes

Is it right that Goldman got the money? Almost certainly “yes”

The main reason the the government bailed out AIG was that it did not want to see dozens of financial firms that did business with the large insurer take billions of dollars in losses.

That might have put the global financial system in some jeopardy. Goldman had paid AIG to insure and hedge some of its positions. If AIG collapsed, Goldman and many other firms could have been driven to take write-offs and probably seek new capital. …”

http://www.dailyfinance.com/2009/03/07/huge-amounts-of-aig-bailout-went-to-goldman-sachs/

 

A.I.G. Lists Banks It Paid With U.S. Bailout Funds

A.I.G. also named the 20 largest states, starting with California, that stood to lose billions last fall because A.I.G. was holding money they had raised with bond sales.

In total, A.I.G. named nearly 80 companies and municipalities that benefited most from the Fed rescue, though many more that received smaller payments were left out.

The list, long sought by lawmakers, was released a day after the disclosure that A.I.G. was paying out hundreds of millions of dollars in bonuses to executives at the A.I.G. division where the company’s crisis originated. That drew anger from Democratic and Republican lawmakers alike on Sunday and left the Obama administration scrambling to distance itself from A.I.G. …”

http://www.nytimes.com/2009/03/16/business/16rescue.html

 

 

The Kabuki Theater of AIG Outrage

By Michelle Malkin

“…My syndicated column today looks at the award-winning performances of Washington hypocrites outraged by the AIG entitlement beast they nurtured through four massive bailout infusions. For added comic relief, be sure to read through the entire transcript of Robert Gibbs’ press briefing yesterday. (It’s been sanitized. Just add 25 “ums” during every exchange on AIG and you will ensure accuracy.) This morning, AIG president Edward Liddy will take the hot-seat during a congressional hearing so that his enablers can wag their fingers at him while letting themselves off the hook again. One observer expects “outright talk of nationalization.” The House Financial Services subcommittee hearing begins at 10am Eastern.

As that flogging ritual takes place, hark! Tiny Tim Geithner hears the distant sounds of yonder bus wheels thumping.

On with the show… …”

http://michellemalkin.com/2009/03/18/the-kabuki-theater-of-aig-outrage/

 

Chris Dodd confesses: Yes, I slipped in the AIG bonus protection…’cuz Treasury made me

By Michelle Malkin  

Fall, fall on your sword, ye Purveyor of Hypocritical Indignation.

Via CNN, unscrupulous borrower and No. 1 AIG benefactor Chris Dodd admits that yes, yes, he did support AIG bonus protections before he was against them: …”

http://michellemalkin.com/2009/03/18/chris-dodd-confesses-yes-i-slipped-in-the-aig-bonus-protection/

 

How AIG — read: you and I — are bailing out the world

By Michelle Malkin  

“…Bob Owens keeps his eye on the ball and breaks it down:

Barack Obama’s lack of leadership in a down economy has now hit crisis proportions, as his claimed inability to block millions of dollars in bonuses for executives of bailout recipient AIG has caused even his supporters to turn on him.

But while the ire of Congress and the media focus are on the $165 million that AIG paid out in bonuses to their executives, the president is hoping you won’t notice the $100 billion in taxpayer bailout dollars that AIG paid out to other banks, including $58 billion to foreign banks and $36 billion given to French and German banks alone.

The Obama administration is allowing AIG to bail out the rest of the world with your tax dollars.

So by all means, the president is happy to have you railing at “evil” but relatively small potatoes AIG executive bonuses, as it points your outrage away from his own far more costly executive abuses.

And of course, the re-distributor-in-chief hopes you won’t notice where much of the rest of the AIG bailout cash is being spent.

While $58 billion of your tax dollars — or more accurately, your children’s tax dollars — are being used to pay foreign banks, a substantial portion of that money ($43.5 billion) is being used to pay American banks, including Goldman Sachs, Merill Lynch, Bank of America, Citigroup, Wachovia, Morgan Stanley, AIG International, and JP Morgan. …”

http://michellemalkin.com/2009/03/17/how-aig-read-you-and-i-are-bailing-out-the-world/ 

 

Troubled Asset Relief Program

“…TARP” redirects here. For other uses, see Tarp.

The Troubled Asset Relief Program (TARP) is a program of the United States government to purchase assets and equity from financial institutions in order to strengthen its financial sector. It is the largest component of the government’s measures in 2008 to address the subprime mortgage crisis.

TARP allows the United States Department of the Treasury to purchase or insure up to $700 billion of “troubled” assets. “Troubled assets” are defined as “(A) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability; and (B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress.” [1]

In short, this allows the Treasury to purchase nonliquid, difficult-to-value assets from banks and other financial institutions. The targeted assets can be collateralized debt obligations, which were sold in a booming market until 2007 when they were hit by widespread foreclosures on the underlying loans. TARP is intended to improve the liquidity of these assets by purchasing them using secondary market mechanisms, thus allowing participating institutions to stabilize their balance sheets and avoid further losses.

TARP does not allow banks to recoup losses already incurred on troubled assets, but officials hope that once trading of these assets resumes, their prices will stabilize and ultimately increase in value, resulting in gains to both participating banks and the Treasury itself. The concept of future gains from troubled assets comes from opinion in the financial industry that these assets are oversold, as only a small percentage of all mortgages are in default, while the relative fall in prices represents losses from a much higher default rate.

The Act requires financial institutions selling assets to TARP to issue equity warrants (a type of security that entitles its holder to purchase shares in the company issuing the security for a specific price), or equity or senior debt securities (for non-publicly listed companies) to the Treasury. In the case of warrants, the Treasury will only receive warrants for non-voting shares, or will agree not to vote the stock. This measure is designed to protect taxpayers by giving the Treasury the possibility of profiting through its new ownership stakes in these institutions. Ideally, if the financial institutions benefit from government assistance and recover their former strength, the government will also be able to profit from their recovery.[2]

Another important goal of TARP is to encourage banks to resume lending again at levels seen before the crisis, both to each other and to consumers and businesses. If TARP can stabilize bank capital ratios, it should theoretically allow them to increase lending instead of hoarding cash to cushion against future, unforeseen losses from troubled assets. Increased lending equates to ‘loosening’ of credit, which the government hopes will restore order to the financial markets and improve investor confidence in financial institutions and the markets. As banks gain increased lending confidence, the interbank lending interest rates (the rates at which the banks lend to each other on a short term basis) should decrease, further facilitating lending.[2]

The TARP will operate as a “revolving purchase facility.” The Treasury will have a set spending limit, $250 billion at the start of the program, with which it will purchase the assets and then either sell them or hold the assets and collect the ‘coupons’. The money received from sales and coupons will go back into the pool, facilitating the purchase of more assets. The initial $250 billion can be increased to $350 billion upon the President’s certification to Congress that such an increase is necessary.[3] The remaining $350 billion may be released to the Treasury upon a written report to Congress from the Treasury with details of its plan for the money. Congress then has 15 days to vote to disapprove the increase before the money will be automatically released.[2]. The first $350 billion was released on October 3, 2008, and Congress voted to approve the release of the second $350 billion on January 15, 2009. One way that TARP money is being spend is to support the “Making Homes Affordable” plan that is being implemented as of March 4, 2009, using TARP money by the Department of Treasury. Because “at risk” mortgages are defined as “troubled assets” under TARP, the Treasury has the power to implement the “Making Homes Affordable” plan. Generally, the Plan will provide refinancing for mortgages held by Fannie Mae or Freddie Mac. Privately held mortgages will be eligible for other incentives, including a favorable loan modification for five years.[4]

The authority of the United States Department of the Treasury to establish and manage TARP under a newly created Office of Financial Stability became law October 3, 2008, the result of an initial proposal that ultimately was passed by Congress as H.R. 1424, enacting the Emergency Economic Stabilization Act of 2008 and several other acts.[5][6]

 …”

http://en.wikipedia.org/wiki/TARP

Our Mission at AIG: Repairs, and Repayment

By Edward M. Liddy

“The government rescue of American International Group (AIG) and other financial firms has produced a palpable wave of anger on the part of Americans and a rising public demand for accountability from corporate and government leaders.

The anger is understandable, and I share it. I have been fortunate in more than three decades in business to see firsthand the wealth creation that well-managed American companies bring to their employees and their communities. I have seen the good side of capitalism. But over the past six months, since agreeing to take the reins of AIG and reviewing how it was run in prior years, I have also seen instances of the bad side of capitalism.

Mistakes were made at AIG, and on a scale that few could have imagined possible. The most egregious of those began in 1987, when the company strayed from its core insurance competencies to launch a credit-default-swaps portfolio, which eventually became subject to massive collateral calls that created a liquidity crisis for AIG. Its missteps have exacted a high price, not only for the company and its employees but for the American taxpayer, the federal government’s finances and the global economy. These missteps brought AIG to the brink of collapse and to the government for help. …”

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/17/AR2009031703019.html

 

Tim Geithner interviewed by Rose pt 1 of 6

 

Tim Geithner interviewed by Rose pt 2 of 6

 

Tim Geithner interviewed by Rose pt 3 of 6

 

Tim Geithner interviewed by Rose pt 4 of 6

 

Tim Geithner interviewed by Rose pt 5 of 6

 

Tim Geithner interviewed by Rose pt 6 of 6

 

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The Mother of All Bailouts–2 to 3 Trillion Dollars–$2,000,000,000–$3,000,000,000!–Rewarding Greed, Arrogance and Stupidity–Pay for Play!

Posted on February 10, 2009. Filed under: Blogroll, Books, Economics, Education, Employment, Homes, Investments, Links, People, Politics, Quotations, Rants, Raves, Regulations, Resources, Video | Tags: , , , , , , , , , |

 
LOL

Bird and Fortune – Subprime Crisis

 

Bailout Prize Patrol

THE TARP SONG “I Want Some Tarp” by Bill Zucker

 

UPDATE

More and more Federal government interventions and more and more bailouts–this is national socialism/fascism–not capitalism!

The cost to the American people will be unemployment rates of between 15% to 20% within two years and inflation rates of between 25% to 50% within four years.

Let the markets work!

Do not do business with any bank or business that needs or takes a bailout or capital from the Federal government.

 Always remember it was the Federal government insisting that banks make mortage loans to people they would not normally lend to that started this mess in the first place.

 

(Part 1/2) Treasury Secretary Timothy Geithner Announces Economic Recovery Plan

 

(Part 2/2) Treasury Secretary Timothy Geithner Announces Economic Recovery Plan

 

Inside Look – Financial Stability Plan – Bloomberg

 

Reaction to Geithner Speech – Bloomberg

 

Inside Look – Geithner’s Financial Rescue Plan – Bloomberg

 

LET THEM FAIL ! NO BAILOUT ON MY BEHALF JIM ROGERS

 

Thomas Sowell – Obama’s Vision

 

Thomas Sowell – The Vision of the Anointed

 

Ron Paul on Socialism, Inflationism and the Death of the Dollar

 

Why Nazism Was Socialism and Why Socialism Is Totalitarian 1

 

Why Nazism Was Socialism and Why Socialism Is Totalitarian 2

 

Why Nazism Was Socialism and Why Socialism Is Totalitarian 3

 

Why Nazism Was Socialism and Why Socialism Is Totalitarian 4


 

First, some background information as to how did we get into this financial crisis in the first place:

Deconstructing the Subprime Crisis

 

subprime derivatives

 

Second, what lessons can we learn from the financial crisis:

Franklin Allen on Lessons from the Subprime Crisis

 

Third,the investment banks got greedy,arrogant, and stupid:

Jeremy Siegel on the Resilience of American Finance


 

Fourth, how do we get out of this massive failures of both the  Federal government and securities market?

Please note which foreign country bought significant amounts of agency or Fannie Mae and Freddie Mac securites–Communist China!

 

Wall Streets Day of Reckoning: Turmoil in the Global Market

 

Wharton Faculty Teach-In October 21, 2008

 

Finally, here comes the mother of all bailouts to recapitalize the financial institutions:

 

 

Obama: More Bank Failures Likely

The rush to getting the so-called stimulus bill through Congress with or without any Republican support was noticed by many commentors. 

Why?

Hang on to your wallets and watch the dollar depreciate some more.

The Treasury Secretary, Tim Geithner,  will be asking for between 2 to 3 trillion dollars for creation of either (1)  a “bad bank” to aggregate all those toxic investments or troubled assets to get them isolated from all US financial institutions so that lending can be rebooted or started again or more likely or (2) recapitalize the financial institution by investing money in exchange for preferred stock and warrants to be repaid sometime in the next five to ten years.

 

Creating A ” Bad Bank”?; Cleaning Up Toxic Assets – Bloomberg

 

Soros Says Bad Bank Plan Won’t Solve Lending Woes

 

Bad Bank Loses Favor – Bloomberg

 

Jim Lacamp on CNBC’s Kudlow & Co Feb 5, 2009 Part 1

 

Bernanke on Fed’s Future: More capital injections & guarantees – setup “”bad banks”


 

I agree with Eric, if a “bad bank” is what Secretary Geithner is going to recommend to Congress, just say no way pal.

Nobody is going to agree as the valuation or price for a troubled toxic asset.

Once was enough on the job training or OTJ for a Treasury Secretary.

Jim Rogers was right, why does anybody listen to Geithner?

 

Shame on you Glenn Beck – Telling the Truth about Timmy Geithner

 

Tax Cheat

 

Geithner Is Sworn in As Treasury Secretary

 

Who were some of the biggest campaign contributors to President Obama and the Democratic Party?

Follow the money–the executives and employees of the bailedout financial institutions.

No surprise there–the Chicago Way–pay for play.

Getting it right is more important than doing it fast.

When the new Treasury Secretary comes to Congress to report on TARP and then asks for another 2-3 trillion  ($2,000,000,000,000–$3,000,000,000,000) for additional authority to purchase toxic or troubled assets or recapitalize the financial institutions in trouble, the American People are going to go ballistic.

 

Inside Look – Banks Urge Quick Release of TARP 2 – Bloomberg

 

“Dr. Doom,” Nouriel Roubini about banking nationalisation and moral hazard

 

Jim Rogers: The fundamentals of Commodoties are IMPROVING!

 

It is abundantly clear that the American elites of both political parties are not telling the American people what is really going on or the scope of the problem.

What the American political class does not understand is the American People are very mad and about to revolt.

The American people will stop calling and e-mailing their Representative, Senators, and President.

Instead the American people will start marching.

So what will the Treasury Secretary recommend.

Yes, you got it, back to Treasury Secretary Paulson’s second plan to recapitalize the banks.

Again, how much is this going to cost the American people for providing a capital infusion now to be paid back latter, say in five to ten years, if not sooner.

Stay tuned.

 

 

Background Articles and Videos

 

New Bank Bailout Could Cost $2 Trillion

By DEBORAH SOLOMON, DAVID ENRICH and JON HILSENRATH

“Government officials seeking to revamp the U.S. financial bailout have discussed spending another $1 trillion to $2 trillion to help restore banks to health, according to people familiar with the matter.

President Barack Obama’s new administration is wrestling with how to stem the continuing loss of confidence in the financial system, as it divides up the remaining $350 billion from the $700 billion Troubled Asset Relief Program launched last fall. The potential size of rescue efforts being discussed suggests the administration may need to ask Congress for more funds. Some of the remaining $350 billion of TARP funds has already been earmarked for other efforts, including aid to auto makers and to homeowners facing foreclosure.

The administration, which could announce its plans within days, hasn’t yet made a determination on the final shape of its new proposal, and the exact details could change. Among the issues officials are wrestling with: How to fix damaged financial institutions without ending up owning them.

The aim is to encourage banks to begin lending again and investors to put private capital back into financial institutions. The administration is expected to take a series of steps, including relieving banks of bad loans and distressed securities. The so-called “bad bank” that would buy these assets could be seeded with $100 billion to $200 billion from the TARP funds, with the rest of the money — as much as $1 trillion to $2 trillion — raised by selling government-backed debt or borrowing from the Federal Reserve. …”

 

http://online.wsj.com/article/SB123319689681827391.html?mod=todays_us_page_one

 

Roubini Predicts U.S. Losses May Reach $3.6 Trillion (Update1)

“…U.S. financial losses from the credit crisis may reach $3.6 trillion, suggesting the banking system is “effectively insolvent,” said New York University Professor Nouriel Roubini, who predicted last year’s economic crisis.

“I’ve found that credit losses could peak at a level of $3.6 trillion for U.S. institutions, half of them by banks and broker dealers,” Roubini said at a conference in Dubai today. “If that’s true, it means the U.S. banking system is effectively insolvent because it starts with a capital of $1.4 trillion. This is a systemic banking crisis.”

Losses and writedowns at financial companies worldwide have risen to more than $1 trillion since the U.S. subprime mortgage market collapsed in 2007, according to data compiled by Bloomberg.

President Barack Obama will have to use as much as $1 trillion of public funds to shore up the capitalization of the banking sector, following the $350 billion injection by the Bush administration, Roubini told Bloomberg News. Congress last year approved a $700 billion rescue fund, of which half remains to be disbursed. …”

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aS0yBnMR3USk

 

Participants in Government Investment Plan

“In unveiling its bank-share purchase program, the Treasury Department required nine of the nation’s largest financial-services companies to sell a total of $125 billion in preferred stock to the government, and said an additional $125 billion in stock could be bought from other firms on a voluntary basis. Below, see a list of participating companies. Click the headers of the columns to sort by company, state and amount.
Last updated: 02/04/2009
  …”

http://online.wsj.com/public/resources/documents/st_BANKMONEY_20081027.html

 

Good news: TARP II coming soon

posted at 12:35 pm on January 20, 2009 by Allahpundit

“…No, not the stimulus. Another monster bailout on top of the stimulus. If the timeline here is right, Team Barry could be asking for it by mid-February, which would mean the $700 billion in TARP I lasted … five months.

Ever get the feeling like we’re just buying time?

[P]ersons close to the situation in Congress told Politico that the deteriorating economic situation leaves little breathing room. Bank losses are up and auto sales down. A top Hill staffer predicted Obama could be forced to seek more money even before the President’s Day recess in mid-February.

If so, this would be a nightmare political scenario for the incoming administration, which has focused on using the next month to muscle through its economic recovery plan…

But Obama gets one honeymoon as a new president, and waiting is not without risks. Financial newspapers reflect a growing concern that the government must do more to buy up the bad investments that hang over financial markets; with more bad earnings reports due this week, there is sense that this is a crisis that can’t be avoided…

“Congress isn’t going to step up and say, ‘Hey, can we give away another $700 billion?’” said an aide to a second Democratic House member. “But there’s a growing sense among people who are really watching this closely, I think, that it is entirely possible, six months from now, maybe even less, the administration is going to come back and say, ‘We need more; we need … more of the same.’”

http://hotair.com/archives/2009/01/20/good-news-tarp-ii-coming-soon/

 

Inside Look: A Severe Global Economic Contraction

Recession & Recovery

Jim Rogers Investment banks all gonna go to…

 

Jim Rogers on the Asian Financial Forum pt 1/2 Jan 21 2009

 

Jim Rogers on the Asian Financial Forum pt 2/2 Jan 21 2009

 

Jim Rogers Britain is Bankrupt (21.01.09)

 

Peter Schiff on CNBC Kudlow – 1:20:09 Part 1

 

Obama – The New Face of Western Imperialism [1 of 2]

Obama – The New Face of Western Imperialism [2 of 2]
 

 http://www.treas.gov/press/releases/reports/0010508105_a_report.pdf

 

Timoth Geithner

Timothy Franz Geithner [pronounced /ˈgaɪtnər/] (born August 18, 1961) is the 75th and current United States Secretary of the Treasury, serving under U.S. President Barack Obama. He was previously the president of the Federal Reserve Bank of New York and a tax chiseler.

Geithner will be directing the nation’s economic recovery from the worst financial crisis in three generations, a task that could define the first two years of Obama’s term. Specific duties include directing how $350 billion of already existing Wall Street bailout money is to be spent, then making the case to the United States Congress and the public if more is needed. In addition, Congress is working on an $825-billion economic recovery package that dedicates about two-thirds to new government spending and the rest to tax cuts. Geithner will be playing a big role in disbursing that money.[2]

Geithner’s nomination came under fire due to his failure to pay over $30,000 in taxes in the past. Geithner was able to receive Senate confirmation but he remains under deep criticism for not following the rules of the agency he now oversees.[3]

http://en.wikipedia.org/wiki/Timothy_F._Geithner 

 

Jim Rogers, Jr.

“James Beeland Rogers, Jr. (born October 19, 1942) is an American investor and financial commentator. He is co-founder, along with George Soros, of the Quantum Fund, and is a college professor, author, world traveler, economic commentator, and creator of the Rogers International Commodities Index (RICI).

Rogers, whose full name is James Beeland Rogers, Jr. was born in Wetumpka, Alabama. Rogers grew up in Demopolis, getting started in business at the age of five, picking up bottles at baseball games. He got his first job on Wall Street, at Dominick & Dominick, after graduating with a bachelor’s degree from Yale University in 1964. Rogers then acquired a second BA degree from Balliol College, Oxford University in 1966. After Oxford, Rogers returned to the U.S. and enlisted in the army for a few years.

In 1970, Rogers joined Arnhold & S. Bleichroeder, where he met George Soros. That same year, Rogers and Soros founded the Quantum Fund. During the following 10 years the portfolio gained 4200% while the S&P advanced about 47%.[1] It was one of the first truly international funds.

In 1980, Rogers decided to “retire”, and traveled on motorcycle through China. Since then, he has been a guest professor of finance at the Columbia University Graduate School of Business.

In 1989 and 1990, Rogers was the moderator of WCBS’ The Dreyfus Roundtable and FNN’s The Profit Motive with Jim Rogers. From 1990 to 1992, he traveled through China again, as well as around the world, on motorcycle, over 100,000 miles (160,000 km) across six continents, which was picked up in the Guinness Book of World Records. He tells of his adventures and worldwide investments in Investment Biker.

In 1998, Rogers founded the Rogers International Commodity Index. In 2007, the index and its 3 sub-indices were linked to exchange-traded notes under the banner ELEMENTS. The notes track the total return of the indices as an accessible way to invest. …”

http://en.wikipedia.org/wiki/Jim_Rogers 

 

Pay to Play

“Pay to Play, sometimes pay for play, is a phrase which has been used for a variety of situations in which money is exchanged for services or the privilege to engage (play) in certain activities. Some uses refer to illicit activities, such as the exchange of money for influence in politics, while others can be normal, even expected, practices. An example of the latter is the concept of No Pay No Play in auto insurance law: an uninsured driver is not permitted to recover money for property damage or bodily injury damages caused by an auto accident, even if the uninsured driver is not at fault, because the lack of pay into the system results in the revocation of the uninsured driver’s right to play when compensation is collected.

In politics, pay to play refers to a system, akin to payola in the music industry, by which one pays (or must pay) money in order to become a player. The common denominator of all forms of pay to play is that one must pay to “get in the game,” with the sports analogy frequently arising.[1]

Typically, the payer (an individual, business, or organization) makes campaign contributions to public officials, party officials, or parties themselves, and receives political or pecuniary benefit such as no-bid government contracts, influence over legislation,[2][3] political appointments or nominations,[4][5] special access[6] or other favors. The contributions, less frequently, may be to nonprofit or institutional entities,[7] or may take the form of some benefit to a third party, such as a family member of a governmental official.[8]

The phrase, almost always used in criticism, also refers to the increasing cost of elections and the “price of admission” to even run[9] and the concern “that one candidate can far outspend his opponents, essentially buying the election.”[10]

While the direct exchange of campaign contributions for contracts is the most visible form of Pay to Play, the greater concern is the central role of money in politics, and its skewing both the composition and the policies of government.[11][12] Thus, those who can pay the price of admission, such as to a $1000/plate dinner or $25,000 “breakout session,” gain access to power and/or its spoils, to the exclusion of those who cannot or will not pay: “giving certain people advantages that other[s] don’t have because they donated to your campaign.”[13] Good-government advocates consider this an outrage because “political fundraising should have no relationship to policy recommendations.”[14] Citizens for Responsible Ethics in Washington called the “Pay-to-Play Congress” one of the top 10 scandals of 2008.[15]

Incumbent candidates and their political organizations[16] are typically the greatest beneficiaries of Pay-to-Play. Both the Democratic and Republican parties have been criticized for the practice. Many seeking to ban or restrict the practice characterize pay-to-play as legalized corruption. …”

http://en.wikipedia.org/wiki/Pay_to_Play

 

Webster Tarpley

“Webster Griffin Tarpley is an author, journalist, lecturer, and critic of US foreign and domestic policy. Tarpley maintains that the events of 9/11 were engineered by a rogue network of the military industrial complex and the CIA. His writings and speeches describe a model of false flag terror operations by a rogue network in the military/intelligence sector working with moles in the private sector and in corporate media, and locates such contemporary false flag operations in a historical context stretching back in the English speaking world to at least the “gunpowder plot” in England in 1605. …”

“In January 2008, Tarpley became one of the first critics to assert that Barack Obama is actually managed by right-wing powerbrokers. Tarpley claimed that a shift in power had taken place in the ruling class, with the Zbigniew Brzezinski faction and its presidential candidate Obama ascendant over the lame-duck neocons. The targets of US imperialism would now be Russia, China and its ally Pakistan, instead of Iraq, Iran and Syria. He developed these themes in his two books on Obama.

Tarpley is also a tough critic of free market, particularly the Austrian School and Chicago School economics [12]. …”

http://en.wikipedia.org/wiki/Webster_Tarpley

 

Elizabeth Warren

Elizabeth Warren is the Leo Gottlieb Professor of Law at Harvard Law School, where she teaches contract law, bankruptcy, and commercial law. Warren graduated from the University of Houston with a B.S. in 1970 and received her J.D from Rutgers Law—Newark in 1976.

Warren is a member of the FDIC’s Committee on Economic Inclusion. She is the former Vice-President of the American Law Institute and a member of the American Academy of Arts and Sciences. She served as the Chief Adviser to the National Bankruptcy Review Commission. Warren is a popular teacher, winning awards from her students at Harvard, the University of Pennsylvania, the University of Michigan, and the University of Houston Law Center.

Warren has testified several times before House and the Senate committees on financial issues. The National Law Journal has repeatedly named Professor Warren as one of the Fifty Most Influential Women Attorneys in America, and she has been recognized for her work by SmartMoney magazine, Money magazine, and Law Dragon. …”

 

“On November 14, 2008 Ms. Warren was appointed by United States Senate Majority Leader Harry Reid to chair the five-member Congressional Oversight Panel created to oversee the implementation of the Emergency Economic Stabilization Act.[5] The reports of the Panel are available at http://cop.senate.gov. …”

 

http://en.wikipedia.org/wiki/Elizabeth_Warren

 

Jim Rogers – Super-inflation to come worldwide 

 

 Jim Rogers Britain Can’t afford it (23.01.09) 1/2

 

 

Jim Rogers Britain Can’t afford it (23.01.09) 2/2

 

Marc Faber “U S will default on debt or enter hyperinflation” 02-05-09

 

$78 Billion Financial (TARP) Bailout Scandal: Taxpayers Shortchanged on Asset Purchases

 

Elizabeth Warren Introduces COP’s Valuation Report

In this video, Chairperson Elizabeth Warren introduces COP’s third oversight report: Valuing Treasury’s Acquisitions. This report features a deal-by-deal analysis of the value Treasury received in exchange for the taxpayer dollars it spent on the ten largest TARP transactions.

 

Obama and Democrats are Responsible: Fannie Mae/Freddie Mac

 

The Democrats and Obama caused the financial crisis of 08 by supporting Fannie Mae and Freddie Mac and covering up their bad books.

 

Obama and Fannie Mae

 

 

Spendulus Alert: $50 billion for “mandatory mortgage modifications”

By Michelle Malkin 

“I uploaded the entire Sellout Substitute Amendment championed by the Turncoat Caucus this weekend. Did you read through to the very end of the 778-page legislative text? Did your Senator? If you did, then you saw this: ….

 

“…Yes, you read that correctly. $50 billion more of your money made available to tax cheat/bailout failout architect Treasury Secretary Tim Geithner to force banks to do loan modifications with homeowners deep under water on their mortgages. That’s in addition to the $20 billion already allocated by the House last month for the same purposes.

Banks have been engaged in these “mo mod” programs over the past year. The Democrats want to accelerate the pace and use the power of government to essentially provide a blanket amnesty for borrowers and lenders who made bad financial decisions. Yes, I know there are many responsible borrowers out there having trouble negotiating loan modifications. I’ve heard from some of you. But this $50 billion giveaway to the banks — the brainchild of unscrupulous borrower Chris Dodd – is exactly the wrong way to go.  …”

http://michellemalkin.com/2009/02/09/spendulus-alert-50-billion-for-mandatory-mortgage-modifications/ 

 

 

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