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The Bailout is A FRAUD

Discussion in 'Business & Economics' started by Stalin, Oct 1, 2008.

  1. Stalin

    Stalin Active Member

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    Seems the Federal Reserve already has the power to prop up the tottering farce that is Wall Street..

    "... Sept. 29 (Bloomberg) -- The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.

    The Fed increased its existing currency swaps with foreign central banks by $330 billion to $620 billion to make more dollars available worldwide. The Term Auction Facility, the Fed's emergency loan program, will expand by $300 billion to $450 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities.

    The Fed's expansion of liquidity, the biggest since credit markets seized up last year, came hours before the U.S. House of Representatives rejected a $700 billion bailout for the financial industry. The crisis is reverberating through the global economy, causing stocks to plunge and forcing European governments to rescue four banks over the past two days alone.

    ``Today's blast of term liquidity will settle the funding markets down, and allow trust to slowly be restored between borrowers and lenders,'' said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. On the other hand, ``the Fed's balance sheet is about to explode.''

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aP5hzUWla7Jg&refer=home

    So why all the fuss about passing the BailOut ??

    "...NAOMI KLEIN: Well, the thesis of my book, what I mean by the “shock doctrine,” is that it is in times of crisis, it is in times when people are panicked, when we’ve seen again and again the right push through radical pro-corporate policies, what they call “free market reforms,” precisely because it is in a crisis where the space for debate rapidly closes, and you can invoke this state of emergency to say we have no choice.

    And I think we’re seeing a very dramatic example of this tactic right now with this really extortionist kind of tactics playing out in Washington. You know, “Sign this blank check, or we’re all going down, or Main Street is going down, or taxpayers—you know, the sky will fall in on them.”

    I’m also arguing that this is only stage one of the shock doctrine. They’re getting this—they’re lobbying for this huge bailout, obviously, but this bailout is a kind of a time bomb, because it’s all these bad debts, and they are going to explode on the next administration. I mean, we know that the Bush administration has already left the next administration with huge debt and deficit problems. They’ve just exploded those, expanded them. And what that means is that whoever the next president is is going to be inheriting this economic crisis that is being exacerbated by this bailout.

    So, in the case of McCain, I think—if he’s the president, then I think we know what he’ll do, because we know he wants to privatize Social Security, which is something that Wall Street’s been wanting for a long time, another bubble. We know he has said in the next—in the first 100 days of his administration he’ll look at every program and either reform it or shut it down. This is really a recipe for economic shock therapy. So, while you have all of these trivial issues being discussed in the election season, I think what we could—what we’re really—you know, under the surface, they’re actually being quite clear. They’re going to take—if they take power, it will be in the midst of an economic emergency. They’ll invoke that emergency to push through very, very radical changes. So, you know, what I’ve been saying is, this is not four more years of Bush; it’s much, much worse in the case of another Republican administration.

    But there’s huge problems for Democrats, as well, if they win this election, because, you know, we need to only think back to the situation in which Clinton took power, where he ran an election on an economic populist platform, promising to renegotiate NAFTA. Then there was an economic crisis. Clinton came under intense lobbying by people like Robert Rubin, who’s also advising Obama right now, and by the time he took office, he had embraced economic austerity.

    So, people need to understand these tactics, need to put pressure on the candidates, the parties, and reject this tactic. And I’ve actually been really heartened, Amy, that people are onto these shock tactics and aren’t falling for it. And, you know, to the extent that we’re seeing a little bit of spine from the Democrats, it is only, as Chris Dodd said, because they are hearing it from their constituents. So people need to keep up this pressure right now.


    http://www.democracynow.org/2008/9/24/naomi_klein_now_is_the_time
     
  2. roger2008

    roger2008 New Member

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    Critics of such proposals quickly rebuffed the idea of government bailouts and calling such bailouts irresponsible. They further argued that bailouts would only promote imprudence in the future. bailout of the U.S. housing market for homeowners unable to pay their mortgage debts.
    ___________________________________________________________________
     
  3. roger2008

    roger2008 New Member

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    Critics of such proposals quickly rebuffed the idea of government bailouts and calling such bailouts irresponsible. They further argued that bailouts would only promote imprudence in the future. bailout of the U.S. housing market for homeowners unable to pay their mortgage debts.
    ___________________________________________________________________
    Carhartt Clothes budapest property
     
  4. foggedinn

    foggedinn New Member

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    This is one of the few times that I agree with my own congressman (bluedog democrat Gene Taylor). "We just poured 700 to 800 billion dollars down a rathole."

    I believe the bailout/rescue plan represents the final looting of the US treasury by the FOB. (Friends of Bush)
     
  5. bododie

    bododie New Member

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    Give credit to FOBF too. (Friends of Barney Frank).
     
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