First!!!!!!!!!!!!!!!!!!!!!!!

Is this what they call "corporate welfare"?

B

Anyone sense a run on the banks coming? Where is George Bailey and that Savings and loan? I'm tired of living in Pottersville and Mr. Potter getting all of my money.

This is what happens when a Republican is President.

Isn't this par for the course for this administration? We don't need no stinkin' rules unless we are the one's making them.

OK... I won't be a lazybones: Aaron Russo's "America: Freedom To Fascism," about the farce that is the Federal Reserve.

http://video.yahoo.com/video/play?vid=543343&fr=moz2

Dang Fdog, great minds think alike! :)

Great post and information. This is where the rubber meets the road in my opinion. Hope to see more regarding this story and outcome. thanks.

I keep asking myself why the Fed is allowing these Banks to lend out so much of the Fed’s own capital reserves? It’s not that this is an exorbitant amount for these institutions, but it represents a significant percentage of outstanding Federal Reserve Capital. Why now?

The consumer credit and mortgage crunch is the tip of the iceberg for potential US Dollar concerns. We got suckered into borrowing too much, and much like the interest-only mortgage loans tied to a bad interest rate, the US Govt bill is going to be due soon. It’s like the 1920’s margin loans all over again, except this time China holds the notes…

Yeah, e. We're geniuses... now if I could just capitalize on that ;)

this is part of using the government to fund the interests of the wealthiest people. It also serves the purpose of helping to postpone a crash until the country is in the hands of a democrat. only it really appears to be too late.

has anyone noticed that the price of gas is coming down even after the mexican refineries were hit? at least 15% drop in the last 60 days.

this is corporate welfare and bush/cheney are determined to fuck up everything.

the whole group of incompetent bastards bush/cheney have installed
for political reasons will sink this country into the labrea tar pits without
any chance of surfacing.

bush is set on destroying the United States of America.

dadams @ 24:

this is corporate welfare and bush/cheney are determined to fuck up everything.

the whole group of incompetent bastards bush/cheney have installed
for political reasons will sink this country into the labrea tar pits without
any chance of surfacing.

bush is set on destroying the United States of America.

That’s already been done. As mentioned in recent articles about Iraq spending and corruption, the no-bid cost-plus contracts are used up. The money has been spent, to a tune of 600 million. Every bit of this borrowed, and nothing to show for it. Now as OPEC (including Iran and Saudi Arabia) and China threaten to convert to the Euro and sell off US Bonds, the bill is looming. I think this Fed deal is a late attempt at a hedge against the pending Dollar sell-off – to get some loans back on our side of the ledger.

A*P*C said I could post a controlled opposition style comment.

[Deleted-Sitemonitor]

Citigroup? Aren’t they Saudi owned?

http://www.archive.org/details/Who_Killed_John_ONeill

citigroup where they not in WTC7?
did christine todd whitmans son/relitives work there?

No investigation into inside trading is made even though it is solid evidence for 9/11 preknowledge. A Canadian list of 38 companies is published and lists many companies inside the World Trade Center, defense contractors, almost all major airlines and several other companies with connections to either AIG or Citigroup (WTC7 was mainly occupied by Salomon Smith Barney who is a part of Citigroup. Deutsche Bank was the biggest inside trader of the all and that is maybe because the US CEO, "Buzzy" Krongard, is also the #3 man at the CIA, it would have been the intelligence community itself who used their own bank because they would never say who was doing it.

[Deleted. Off topic-Sitemonitor]

[Deleted. Off topic-Sitemonitor]

[Deleted. Off topic-Sitemonitor]

[Deleted. Off topic-Sitemonitor]

From the article:

Don't forget: The Federal Reserve is in crisis management at the moment. However, it doesn't want to show any signs of panic. That means no rushed cuts in interest rates. It also means that it wants banks to quickly take the big charges that will inevitably come from holding toxic debt securities. And it will do all it can behind the scenes to work with the banks to help them get through this upheaval. But waiving one of the most important banking regulations can only add nervousness to the market. And that's what the Fed did Monday in these disturbing letters to the nation's two largest banks.

It's definitely in the public interest for the banks to fess up to these bad loans and take the write-offs sooner rather than later. We know from observing the result of Japan's foot-dragging what the alternative will lead to. No cause for panic just yet, but it warrants a close watch.

There is a recession comming big time and than a world wide depression. I really don't know what to do to prepare for it.

There is a recession comming big time and than a world wide depression. I really don’t know what to do to prepare for it.

1. Buy gold and silver.
2. Start purchasing things that you will be able to trade for both food an fuel.
3. Learn how to shoot a gun.....Not kidding.

Andrew @ 46:

There is a recession comming big time and than a world wide depression. I really don’t know what to do to prepare for it.

1. Buy gold and silver.
2. Start purchasing things that you will be able to trade for both food an fuel.
3. Learn how to shoot a gun.....Not kidding.

Between Sept 3rd and Sept 17th (I’m guessing September 9) another “event” will take place. It will take place in the International Financial Sector, most likely stemming from the conversion or call-in of Chinese owned US Bonds. This conversion will create a stock-market tumble and immediate US Dollar inflation will commence. If will be followed by a world-wide conversion of reserve currency from US Dollars to the Euro.

Because of our currencies’ problems (including mortgage and Credit-Card problems) the US Govt will halt all interest payments on the Dollar (both private and public), which will be hailed by the general populace as a victory. Unknown to most of the population however, associated with this will be the enactment of the Continuity of Government Reforms that have been put into place over the last 2 years, establishing a Bush/Cheney autocracy.

By January 2008, the US Fed based US Economy will announce that Dollar payments to US Govt officials will be halted, effectively halting all but Executive Branch operations. November ’07 Elections will be postponed due to cost and “other factors”.

FOX will be on 24/7 with experts who “predicted” such terrorist activities, lending credence to the public perception of foreign “WAR” with the US. The military-based hubs of the Internet will be shutdown, and cost of access to the Internet will skyrocket, effectively shutting down the remaining free-speech outlets.

“Financial Terrorism” will become the new buzz word, and will be used as a Clarion Call for the Invasion of Iran and the rest of OPEC. US Military numbers will have increased because of an increasing number of civilians enlisting to overcome financial burdens (the US Govt will enact full debt forgiveness for new recruits), but a nationwide draft may still be enacted.

Divestiture in the US Stock Markets will cause the DOW to fall below 3000 by Nov ’08, focusing news stories away from the cancelled elections. Bush will step down and appoint a “nationally agreed upon successor” in lieu of elections, but Cheney will stay on “temporarily” as VP in order to ensure continuity of government.

Health Care reform will be the first course of action taken by the newly appointed Executive. All Americans will be given free timely health/dental/emergency care in a non-profit system, coordinated by a US ID Card, required by all participants. This ID card will be tied into new US Govt “Barter Payments” using mandated “Barter Points” instead of Dollars to conduct commercial transactions. These barter systems will be touted as the only means of countering international financial terrorism, will not be taxed like Dollars were, but the “newFed” will be responsible for determining actual “value” (just like the old Fed). People will cheer!

ok ok - I made it all up. But it shows what you can do if you let your mind meander down this path...

The Federal Reserve....now there's an Orwellian term if there ever was one. It's not run by the government nor does it have sufficient reserves. It's really a bank cartel which controls the money supply by being able to loan out more money than it has on reserves (thanks to 'fractional reserve banking'). If the reserve ratio is 10:1 then the bank can lend out $10,000 by just having $1000 on reserve. That's 9000 dollars created out of thin air.
This is brand new money created by the federal reserve from DEBT. 95% of all the money in the economy is created through banks loaning money.

So if most of the money is created through the issuing of debt...then where does the money to pay the interest come from? That money doesn't exist in the overall money supply because the banks create the money and they only create the principal. So the only way to get the money to pay the interest is to get more loans. The system is set up in a way that requires the economy to constantly rely on bank credit to sustain itself. However, by continuing to borrow more and more it causes the money supply to continuously expand thus resulting in constant inflation. Inflation is a hidden tax because it lowers the purchasing power of everyone and there is no way to avoid it.

Now why would the Fed continuously lend out money to a government that is trillions of dollars in debt? The answer is because the government uses the federal income tax to pay for the interest on this debt. The Fed doesn't want the government to pay off the loans...they just want the government to keep making those interest payment. Besides the Federal Reserve doesn't care if the principal ever gets paid because they created most of it out of thin air through fractional reserve banking.

So federal income taxes go straight to the Federal Reserve. Americans work 4 or 5 months of the year for the Fed. Just think what those taxes could actually provide if it weren't going to the Fed.

This is why monetary reform should be the NUMBER ONE issue in the election.

[Deleted. Off topic-Sitemonitor]

This is no surprise at all. This has been going on ever since the bankers were able to seize the Federal Reserve which isn't even a federal agency. There is something much greater going on in this country and it has more to do with the political divide between democrats and republicans. The backers of the Central Bank are bankrolling this country into submission. There is an outstanding documentary I recently viewed which provides a historical perspective as well as explains in detail what is going on not only in this country but around the world. Anyone heard of the North American Union? How about the Amero? Fdog is right when he speaks of Aaron Russo. Russo was a close friend of Rockefeller's until Rockefeller divulged what him and other world bankers have been striving for.

http://video.google.ca/videoplay?docid=497251819335380093

What is wrong with you people?
Citi and BofA opened their big hearts and lent money to everybody and their dogs (in some cases, JUST the dogs).
Now that these deadbeats cannot pay the money back under the EXTREMELY GENEROUS terms they were given, don't you feel it is in our best interest to help these guys out?
I mean, c'mon, they'd do it for you, wouldn't they?

I wonder if the Federal Reserve will bend some rules for me. I am going to get my PHd and I am piss broke--will they help?? Oh yeah, I forgot. I live in a fascist state. Mussolini would be so proud of us......

rob @ 50:

The Federal Reserve....now there's an Orwellian term if there ever was one. It's not run by the government nor does it have sufficient reserves. It's really a bank cartel which controls the money supply by being able to loan out more money than it has on reserves (thanks to 'fractional reserve banking'). If the reserve ratio is 10:1 then the bank can lend out $10,000 by just having $1000 on reserve. That's 9000 dollars created out of thin air.
This is brand new money created by the federal reserve from DEBT. 95% of all the money in the economy is created through banks loaning money.

So if most of the money is created through the issuing of debt...then where does the money to pay the interest come from? That money doesn't exist in the overall money supply because the banks create the money and they only create the principal. So the only way to get the money to pay the interest is to get more loans. The system is set up in a way that requires the economy to constantly rely on bank credit to sustain itself. However, by continuing to borrow more and more it causes the money supply to continuously expand thus resulting in constant inflation. Inflation is a hidden tax because it lowers the purchasing power of everyone and there is no way to avoid it.

Now why would the Fed continuously lend out money to a government that is trillions of dollars in debt? The answer is because the government uses the federal income tax to pay for the interest on this debt. The Fed doesn't want the government to pay off the loans...they just want the government to keep making those interest payment. Besides the Federal Reserve doesn't care if the principal ever gets paid because they created most of it out of thin air through fractional reserve banking.

So federal income taxes go straight to the Federal Reserve. Americans work 4 or 5 months of the year for the Fed. Just think what those taxes could actually provide if it weren't going to the Fed.

This is why monetary reform should be the NUMBER ONE issue in the election.

Great comment!

Corporate Welfare.

These corporations participated in high-risk loans and derivatives... and are being rewarded.
The share-holders and corporate officers should take the hit, not the US taxpayers. Criminals.

...

the economic caste system in action

Ron Paul is the only candidate that cares about the scam that is the federal reserve.

And this move shows exactly how little they really care about keeping the economy stable, and how much they care about bailing out their friends.

Friends who last year were pulling down billion dollar Christmas bonuses.

A Richard Head @ 59:

Pumping money into a pyramid or ponzi scheme from the top down only serves to keep the investors confidence up. Allowing a couple of the top tier players to skirt the rules is alright, as long as the scheme survives.

I truly believe that's why housing prices soared to the levels that it did. For every $1 loaned at the top, the bottom owes $300,000. I have read in the past the Mortage Market Hedge Fund is leveraged to the tune of 370 Trillion dollars. It's said if you took all the money, in all the banks in the WORLD, it wouldn't total that much. It's all on paper. So when it does collapse, and it will, the bail out won't happen because even the whole planet doesn't have that much money.

I'll try to find the link later.

it is believable, the 370 trillion IS a stretch, but the scenario holds.

the point is to completely destroy the domestic economy and make fascism palatable here. the wealthy hope to have enough hoarded away to be able to afford private armies, a la NOLa after Katrina.

governments won't have enough money for domestic or local programs because the rich control the lawmakers and won't pay taxes while the poor won't have enough income to provide revenue (through taxes) for domestic infrastructure and social programs.

guns or butter is what that will come down to. and blackwater is practicing their pacification techniques in Iraq(over 120,000 of them) under cloak of media silence. they even shoot at US military with impunity and are better equipped. think THAT wasn't planned? a citizen with a weapon is simply a more justifiable target to blackwater.

Mark this post.

It will go down as THE BIG MISTAKE of this Depression. Because they broke the rules for these two banks, they had to do it for others, etc.

The slope is treacherous, and slippery. But, we're deep into it now, and we haven't even gotten down to the waterline of this iceberg.

It is truly going to be a Blue Christmas... or more likely a crummy February / March for most... That will be the start of the biggest, worst of the hurtin'.

--mf

There is nothing federal about the The Federal Reserve.
It's a private bank, run by private people (think Bush Sr. has stocks in it)-they print the money you spend. I had to scroll down a way to find that some of the comments actually address this FACT. Glad to see that some are "in the know". I really wish this FACT could be addressed in a post on the main page of C&L, instead of buried in the comments. If Americans really want this addressed in a presidential debate pay attention to who says what and then do your homework on who has, or has had relations with the Council on Foreign Relations. I think that there are only one or two per side actually running.

The banks are clearly bankrupt and the Fed is trying to bail them out at the expense of the American taxpayer. The problem is there are very few American taxpayers left and we're about to see something that will make 1929 look small time.

Bending the rules to preserve profits and make the balance sheet look good. Friggin creeps!

Help the economy and shop more.

Better call up the US Treasury and have them turn up the printers. Oh yeah, that won't work either. Can't we just borrow against the oil reserves in Iraq? After all, It's ours now.

If a depression comes no one will recall doing this. Why, I bet it'll be like it never happened at all. Every file and e-mail will disappear mysteriously. (Are the shredders still parked at Cheney's house?)

If it's alright for the banks to do this, shouldn't they let Bernie walk? He could resume his role at the top of WorldCom (now Verizon) and could give me my job back.

I was always taught that financial institutions merited their function in society by carefully balancing risk vs. potential profit and making a thin margin on a large volume of transactions.

Now, they need not worry about risk because the Federal Govt. will find a way to help them out of their blunders. So, it's guaranteed profits. Show me a financial institution, including insurance companies affected by Katrina, that lost money during the Bush administration.

I wish I had a deal like that with my employer or with my mortgage company... "sorry I can't pay, but the Feds will cover it."

Americans work 4 or 5 months of the year for the Fed. rob (#50)

That's just wrong. For it to be true, interest payments on the Fed. debt would exceed 40 or 50% of revenue and interest payments (including interest to the Social Security Trustee) are less than 10% of revenue. Nice story for the paranoid innumerates, but completely wrong. See here

Now WHO are all the crooked Rethugs. behind this mess?

Oh, but we can't have welfare for the poor, the sick and the needy, can we.

rob @ 50:

The Federal Reserve....now there's an Orwellian term if there ever was one. It's not run by the government nor does it have sufficient reserves. It's really a bank cartel which controls the money supply by being able to loan out more money than it has on reserves (thanks to 'fractional reserve banking'). If the reserve ratio is 10:1 then the bank can lend out $10,000 by just having $1000 on reserve. That's 9000 dollars created out of thin air.
This is brand new money created by the federal reserve from DEBT. 95% of all the money in the economy is created through banks loaning money.

So if most of the money is created through the issuing of debt...then where does the money to pay the interest come from? That money doesn't exist in the overall money supply because the banks create the money and they only create the principal. So the only way to get the money to pay the interest is to get more loans. The system is set up in a way that requires the economy to constantly rely on bank credit to sustain itself. However, by continuing to borrow more and more it causes the money supply to continuously expand thus resulting in constant inflation. Inflation is a hidden tax because it lowers the purchasing power of everyone and there is no way to avoid it.

Now why would the Fed continuously lend out money to a government that is trillions of dollars in debt? The answer is because the government uses the federal income tax to pay for the interest on this debt. The Fed doesn't want the government to pay off the loans...they just want the government to keep making those interest payment. Besides the Federal Reserve doesn't care if the principal ever gets paid because they created most of it out of thin air through fractional reserve banking.

So federal income taxes go straight to the Federal Reserve. Americans work 4 or 5 months of the year for the Fed. Just think what those taxes could actually provide if it weren't going to the Fed.

This is why monetary reform should be the NUMBER ONE issue in the election.

So glad this topic is finally be covered on C&L! The easiest way to solve the problem is to get our Congress to print money to pay off the debt while forcing the banks to raise their reserve requirements to 100% at the same time to stave off inflation. Using this method, we would pay off all debts, banks would no longer be ble to create money, and I'm sure the bankers would try to kill whoever passed such a reform.

Since when has the FED ever served anyone other than bankers or anything other than the banks??

wasaperson @ 72:

There is nothing federal about the The Federal Reserve.
It's a private bank, run by private people (think Bush Sr. has stocks in it)-they print the money you spend. I had to scroll down a way to find that some of the comments actually address this FACT. Glad to see that some are "in the know". I really wish this FACT could be addressed in a post on the main page of C&L, instead of buried in the comments. If Americans really want this addressed in a presidential debate pay attention to who says what and then do your homework on who has, or has had relations with the Council on Foreign Relations. I think that there are only one or two per side actually running.

Exactly. To the above I would add: when the "Federal" Reserve Bank makes a move like
this, ask yourself who benefits and how do they benefit? What happens, when will it happen, and why now?

"Since when has the FED ever served anyone other than bankers or anything other than the banks??"
Who would you rather have in charge of your monetary system...Plumbers?

I am shocked that Crooks and Liars would choose to talk about the Federal Reserve rarely. This is a HUGE problem with our country. The Federal Reserve needs to be dismantled/abolished. I do not want another currency when the depression hits.