A time capsule of the greatest financial mania in the history of mankind, told in real-time by regular folks and patriots. May future generations better understand the madness of crowds, and how power and money corrupt.
Here's Schiff:While Fannie and Freddie were arguably quasi-government agencies that deserved special protection, no such status exists with AIG. Where does the Fed get the authority to use the money it prints to take over private companies? Congress never gave such authority and, even if it had, it would be unconstitutional, as Congress itself has no such authority to delegate. What about the shareholders? Why didn’t they get to vote on this acquisition? Whatever happened to private property rights?Where does this stop? What other troubled companies will the Fed nationalize, and how much will it cost? Why stop at troubled companies? If the Fed can buy into a sick company, why not a healthy one? Now that we have allowed the Fed to take over any asset it wants, private property rights are meaningless. When oil prices get really high, why bother with a windfall profits tax when the Fed can simply nationalize Exxon-Mobil with a few cranks on its printing press. Who needs Bolsheviks when you have the Fed?AIG is not a bank; it is not even an investment bank. The “lender of last resort” power was supposed to apply only to banks, to prevent runs. It was not meant to apply to any company that had been declared “too big to fail”.http://www.europac.net/#
http://www.bloomberg.com/apps/news?pid=20601103&sid=a7qdBFTyKnU4&refer=usU.S. Government Debt Risk Jumps to Record After AIG BailoutBy Abigail MosesSept. 17 (Bloomberg) -- The cost to hedge against losses on U.S. government debt rose to a record after the Federal Reserve rescued American International Group Inc. to avert the worst financial collapse in history.Benchmark 10-year credit-default swaps on Treasuries increased 4 basis points to 30 today, according to BNP Paribas SA prices. The contracts have risen from below 2 basis points at the start of the credit crisis in July 2007 and are more than double those on government bonds sold by Austria, Finland or Sweden.
(a)What other troubled companies will the Fed nationalize, and (b)how much will it cost?a. Automakersb. Billions
So if the free market works, but only in theory, does it work, or doesn't it? No honor among thieves.
THE FEDERAL RESERVE IS F#%ING BANKRUPTThe Federal Reserve has virtually no reserves, now has NO reserves!!!!! Treasuries are the last place left where the money people can park their loot. And Treasury bills collapsed in value below 0.05%.The dread 0% down, 0% interest and 0% principal paid? That is the domain of the Depression.http://www.reuters.com/article/bondsNews/idUSNYG00128420080917
Is goldman a buy here?I was vert tempted yesterday at 100.Is abby hot or what?
I see from the video that the PIGS (aka police) still get to keep their jobs in an economic depression. Note: Why not privatize the police and fire departments, thereby getting rid of their unions that are raping the taxpayers? We would save billions in state property taxes and could even Improve our public safety by holding them accountable for once so they cant hide behind their bureaucratic unions.
What a rogues gallery.No Justice.
Paulson should of never started this Bail Out shit . In fact I think Companies have not been selling out assets to meet their losses in the last 7 months in hopes of getting these bail-outs and it has caused the very log jam that we see . I saw one of the rich Talking Heads go into a rant on TV this morning about more bail-outs from the Government . This crisis has always been about Wall Street/Lenders/Investment firms not wanting to take their losses.The point is the stressed Companies would have to sell out assets or merge with stronger companies , as the correct free market remedy for excess or bad gambles . I say to bad so sad for the gamblers ,but the government feels different and no doubt will try to re-spike the punch bowl of easy money to try to stop the free market correction of falsely inflated real estate . No rule of law ,no prosecutions of the criminals.The excesses of the market was based on a mania that went so far as to become criminal in loan underwriting . These Lenders and investments firms breached their duty to stop loan crimes for the sole purpose of short term profits and Congress backed them and didn't regulated them .These bail- outs are a act of violation of the constitution and they are a act of discrimination in that the tax payers pay by taxes and inflation to serve the self-interest of private companies,the very Companies that created this mess . The savers are deprived of a decent rate of savings so banks can have cheap costs .Inflation is killing every ones buying power because its coming in the areas that really hurt .So ,from the day that the bribed Senator Dodds started painting this market correction crisis as a problem for the government to bail out ,no doubt to take the heat off himself ,as well as his friend Mozilo,the government has made one bad choice after another . Get rid of those bribed jerks in Congress and the Senate .Realize that Big Business has been pulling the strings all along with no regard to the public with the backing of the politicians .
Might as well call our country USSA. Except this kind of socialism doesn't benefit the people at all. All neatly hidden under the guise of "we're trying to protect the people." What utter crap.
I wanna see Goldman Sachs fail in the worst way. They're a bunch of arrogant schmucks - Paulson's buddies. If they go under, Paulson will have to stand by and do nothing or use taxpayer $$$$ to bail out his friends. Either way Paulson loses.
What a powerful video! Another great one keith. Also all of the comments are well thought too. Not trying to be cheerleader today but I don't have anything else to sayUh that rhymes!!rich in fl
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