Protest the HUGE BAILOUT of American Banks by the Fed last week!

Nobody is calling it what it REALLY is.

They're afraid to mention the word.

But that huge infusion of cash into the money supply by the Federal Reserve last week is nothing but a BAILOUT of US banks that were hurt by the mortgage credit crunch.

Supposedly the Fed just went and bought the nearly worthless paper that represented failed mortgages. Paper that was issued by financial institutions making risky mortgages. So who is going to PAY for this bailout? So far (and it ain't over yet by a long shot), it's cost the US gov't about $65 billion. And that's only over the course of two days!

There was absolutely no discussion of this in Congress as far as I know. The Fed supposedly just took action on its own. But it solves nothing at all, and only delays the inevitable credit showdown, which everyone is ignoring.

In case you're not up to speed the Fed had to inject fresh cash into the markets on Thursday (once) and again three more times on Friday, to prevent a loss of confidence (read STOCK MARKET & BOND MARKET CRASH).

In fact we may be on the EDGE OF A PRECIPICE right now, just waiting for one more thing (like a terror attack or oil related disaster) to push the American economy over the cliff.

And of course Europe is in as deeply as we are cause they've been financing our debt so we could buy new cars and homes and keep everyone else's economy floating high.

Meanwhile these threats from China to sell off their $1 Trillion in US Treasury bonds and currency would indeed be pushing America over the cliff with a bulldozer!

It won't take much now. The US is over a BIG BARREL, and we are about to get our KAPITALIST KARMA shoved up our asses in spades.

Get ready ppl, cause you ain't seen nothin' yet...

CAPITALISM, It was fun while it lasted....

Oh, and I loved this statement "The Fed can provide a almost limitless amount of cash if necessary".

Of course, they just print the stuff up! Ah, but what does it do to those dollars in your hand is quite a different story.

The more dollars, the less they are worth.

They saw this coming a LONG TIME AGO. That's why they've been begging China to devalue their currency.

Better buy those imports while you can still afford them....

 

"there is no better way to wage war on the public than through the economy"

Yes, again it is the KAPITALIST SYSTEM that is flawed. To allow a few to control the wealth of so many is a Crime Against Humanity...

 

I really doubt they're gonna make much of a profit from the dead mortgages they just bought! Somehow you KNOW it's us and our children who will be paying for this Bailout, which has only just begun, in years to come. Probably thru the reduced value of the US $.

Think about this...

If the world dumps dollars, and no one wants to purchase our debt anymore, just HOW POWERFUL will the Fed be on the world stage?

It derives its power from its ability to produce US$, as the value of the US $ declines, so does the power of the Fed.

In fact the Fed might be just ONE STEP away from being as useless as Robert Mugabe's gov't in Zimbabwe. He's just been printing more money to cover his country's expenses (and his own no doubt), meanwhile his people get poorer and poorer everyday. THIS IS NO DIFFERENT FROM WHAT IS HAPPENING IN THE USA NOW!

Print more money to cover AMERICA'S ENDLESS WARS, and see HOW POOR AMERICANS ARE BECOMING!

Millions of Americans are right on the verge of losing their homes right now. In Mugabe's Zimbabwe, most of the big land owners lost their land too (but not thru default). The gov't took over their land and gave it to the peasants.

Now the FED is buying America's defaulting homes, no doubt at a cut-rate price. Just so that there will be MORE MONEY to lend to MORE people. The banks that sold the paper can now take that money and make more loans to keep the system going. But this is such a short-term fix, it will indeed make the crash worse when it does happen...

We've only seen the tip of the iceberg! The Titanic US DEBT is gonna sink this country as fast as the Titanic went to the bottom of the North Sea...

 

It's far more involved than you make it seem. It has mostly to do with currency valuations. More and more the US dollar has been underpinned by the housing market in the US. That's because we borrowed money from Europe and China and Japan to finance the US housing "boom" or rather to just keep it alive AND to finance ONE WAR AFTER ANOTHER!

All that money moving around from bonds to loans to contruction to consumer keeps the damn economy afloat. But NOW that money must cross borders more than ever before cause the ASSETS to finance all America's WASTEFUL WAYS, are no longer IN AMERICA. It's just another sign of HOW POOR THE US is becoming as we shift our wealth overseas to purchase today what we pay for tomorrow.

We are the ONLY country in the world with so much consumer debt. Which means we owe more than any other country, esp. per capita.

So all that money moving around eventually finds it way into the US stock markets. No one has yet been able to explain just WHERE all this money is coming from that has taken the US markets to new heights (Dow, not nasdaq) and bonds as well as commodity futures like oil.

Back to the banks. An investment bank can only survive if it has the FUNDS to invest. The sad truth is, once the US can no longer sell its treasuries due to falling demand (as is starting to happen now), it must raise interest rates to keep attracting money into our failing system. But that causes inflation, creating a dilemma for the Fed.

So if the investment banks find CREDIT TIGHTENING, and they can only give loans to the most creditworthy, who even then present a growing risk, they might as well shutdown.

And indeed that was the case until the Fed stepped in. See the media and gov't have been soooo downplaying what is really going on in the markets. It's almost chaos at this point.

First they wanted you to believe it was only those with the subprime mortgages who were gonna default.

Then they wanted you to believe it was only those with loans below prime who were gonna default

Then it was even prime loans that were defaulting...

That is when the Fed stepped in.

Why?

Cause the next step would've spread it beyond the HOME LOANS into ALL types of loans, esp. those to big businesses.

You GOTTA HAVE A CASH FLOW to stay in business!

With all the defaults, even the most diversified investment bank was suddenly facing their own dismal future.

That is why the Fed finally stepped in.

They couldn't GIVE ONE SHIT about all those American families losing their homes, nor about those individuals invested in Mutual Funds.

No, as soon as BANKS and other big businesses started to see the writing on the wall they no doubt DEMANDED the Fed step in...

Once again you see this whole economy & society is prioritized around business interests, the INDIVIDUAL and HIS/HER FAMILY BE DAMNED!

And PR, I know you think it's all a vast conspiracy, but I say it's thousands of overlapping small conspiracies with no end and no beginning...

However, if the same ppl who brought you the War in Iraq are the ones managing this economic fiasco, we have nothing to worry about from a new world order because it will fail due to incompetence and greed.

In a world where resources are becoming more scarce as demand rises, it would seem to be the perfect situation for KAPITALISTS. However, as this GAME of KAPITALISM becomes further removed from reality, it looses its ability to be controlled by anyone.

However you can only concentrate so much wealth (most of it exists only on paper) before the people take to the streets and overthrow the system taking back what is rightfully theirs. That day is coming soon...

Viva Chavez!