Conflict of Interest Pervades Bail-Out Plan
source: http://www.nytimes.com/2008/10/18/business/18system.html?_r=1&pagewanted=2&th&emc=th&oref=sl...
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- pissedoffinarkansas
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The federal government’s initiatives are all carefully cast as emergency measures that will be phased out in months or years. “It’s explicitly temporary, but we don’t really know where this crisis ends yet,” said Robert E. Litan, an economist at the Brookings Institution. “The logic of intervention is that the more ownership the government has, the greater the regulation and management control.”
The $250 billion bank investment plan is but one sign of the government’s expanding role. The Federal Reserve, for example, has traditionally been the lender of last resort to banks. Yet the Fed announced this month that it would become the buyer of last resort for commercial paper — short-term financing that many businesses issue to finance their daily operations — acting as a backstop in that $1.6 trillion market.
The Federal Deposit Insurance Corporation, as its name suggests, is charged with insuring the savings of bank depositors. The agency not only sharply increased deposit insurance limits, but also said it would guarantee debt issued by banks. The move is an effort to give banks greater confidence to lend to each other and thus get money flowing again. The F.D.I.C. places a ceiling on that guarantee program of $1.5 trillion.
The funds committed for everything from the bailouts of Fannie Mae and Freddie Mac and those of the Wall Street firm Bear Stearns and the insurer American International Group, to the financial rescue package approved by Congress, to providing guarantees to backstop selected financial markets is a very big number indeed: an estimated $5.1 trillion.
Under the plan, the government is seen as a “silent partner” in the banks, without board seats. But analysts expect the government to be more quiet than silent, operating as an adviser that must be consulted. Should the bank sell these mortgage-backed securities for 10 cents on the dollar today or wait a few months and hope to get 40 cents on the dollar? A discrete call to the Treasury or the Fed, analysts say, would seem in order.
“I think the government will be a risk manager extraordinaire,” said Mr. Litan of Brookings. “They’re not going to tell banks where to lend. But in high-risk kinds of things, they have the role of saying no, no, not there.”
Excerpts from linked story/ Read more at link
So , who's interests are the gov. going to protect, the People's who's money they already have? Or the bank's,who's money they hope to collect for future wars,bail-outs, tax cuts for the rich, etc.
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WhiteNoise
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The first American coup d’état happened in 1913 when the Federal Reserve took over the printing press. The second was JFK’s assassination. The third strike is fuming down towards home plate…
America's Coup D'État in the Making
Deception and Self-Deception
By Claes G. RynPeople of great ambition who want to exercise the power being abdicated by Americans are trying to make us accept and even welcome the final disappearance of American constitutionalism and its culture of modesty and self-restraint.
http://www.informationclearinghouse.info/article21040.h..."The New Kleptocracy"
"The largest financial theft in American history"
This is a must listen Interview -- By Guns & Butter
Economist Dr. Michael Hudson on TreasurySecretary Hank Paulson's "Plan" passed by Congress on October 3, 2008. We discuss what is being purchased, the congressional vote, what this means for the oligarchs, and what this means for the rest of us.
http://www.informationclearinghouse.info/article21041.h..."Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies." - Groucho Marx
- 3 years ago
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WhiteNoise
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WhiteNoise
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Who is Behind the Financial Meltdown?
Market Manipulation and the Institutional Speculator
http://www.globalresearch.ca/index.php?context=va&aid=10529The market is heavily manipulated. The driving force behind the meltdown is speculative trade. The system of "private regulation" serves the interests of the speculators.
While most individual investors loose when the market falls, the institutional speculator makes money when there is a financial collapse.
In fact, triggering market collapse can be a very profitable undertaking.
There are indications that the Security Exchange Commission (SEC) regulators have created an environment which supports speculative transactions.
There are several instruments including futures, options, index funds, derivative securities, etc. used to make money when the stock market crumbles.
The more it falls, the greater the gains.
Those who make it fall are also speculating on its decline.
With foreknowledge and inside information, a collapse in market values constitutes a lucrative and money-spinning opportunity, for a select category of powerful speculators who have the ability to manipulate the market in the appropriate direction at the appropriate time.
First they stole 2 elections… the first by perverting the supreme court…nothing happened…Then 9-11 & a war based on a 1000 lies & the treacherous hoisting of a CIA agent… nothing happened… they proceeded to shred the constitution, kidnapped imprisoned & tortured the world over, spied on us & fired the best US attorneys… nothing… conducted a thinly veiled ethic cleansing during Katrina…nada…now they are taking us to the cleaners…
Is there a limit to the damage this executive branch can inflict to the USA ?
It seems not !
Fear & Greed Corp reigns under the guise of Mindfuck Inc. no wonder the average citizen is under stress !
Get a third job ! Sell a vital organ ! Move in a card box by the river, but stop your whining buba ! You are but a victim of your own imagination, you suffer from a severe case of "mental recession"... Now get over it !
* WAR IS PEACE, FREEDOM IS SLAVERY, IGNORANCE IS STRENGTH *
"The history of our race, and each individual's experience, are sown thick with evidence that a truth is not hard to kill and that a lie told well is immortal" - Mark Twain Advice to Youth
- 3 years ago
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WhiteNoise
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dkincheloe
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Please! Neither the government nor the banks give a damn about you and me. Don't be naive. We don't matter.
- 3 years ago
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dkincheloe
