What financial crisis?

What financial crisis?

By Gerald: Internet Anthropologist Think Tank

11.02.09

Paradigm Intel on the economic problem.

What financial crisis?

I don't see any financial crisis?

Money is harder to borrow .

Well what is the Government talking about?

This mess started over a year ago.

When some banks realized some of their

liquid securties ...weren't.

Some of the sub-prime paper got into

the liquid assets. And started to fall in price.

Suddenly other banks were not playing nice.

With holding transactions and didn't want

some of the paper of other banks.

And knew much of their liquid assets

money markets for instance had toxic paper

in them Sub-prime paper.

And that sub-prime paper if marked to market

would cause losses in the money markets.

The Federal Reserve stepped in and provided

liquidity by flooding the banks with cash.

And "they " just kept quiet about the liquid funds

not being marked to market, just carried on the

books at 100% Value.

Then the Government announced they would be

buying the toxic paper, Plan "A".

and just hold it.

The Government had not realized the banks had

flooded the market

with Trillions of dollars of sub prime paper.

I have seen estimstes of between 10 trillion and

50 trillion dollars of toxic paper. ( And we could

be low by several magnatutides. )

The Government and the Federal Reserve,

realized they couldn't buy up the paper. They

didn't have that much money.

So between the bailout and the Federal Reserve

they GAVE the banks around 3 trillion dollars to

hold them over.

Till they could put in place paln "B".

Set up an economy based on Federal

Government spending, and Government provided

jobs to stop the economy from

freezing up when they did announce the

breath and depth of the sub prime paper.

At some point they will have to mark that bad

paper to the market. And that is going to hurt the

worlds economys real bad.

They know the crash is coming and are trying to

cushion it.

Best they can. Provide some jobs to try and stop

a total meltdown.

Currently they don't care about the criminal activities

by the banks, they have much bigger problem to deal with.

And Volker has told them this.

Obama knows this small 1 trillion dollar jobs program

won't divert the disaster, but just hopes it will make it

surviable.

Cash is King, and this is going to hurt, Alot.

Hold on its going to be quite a ride.

Prepare : the normal "doom and gloom" stuff.

Stock up on food, meds, water etc.

And there are ways to make a profit from the

coming disaster.

We are all whores.

Gerald

Series 7 and 13

Wall Street wasteland
.