What financial crisis?
By Gerald: Internet Anthropologist Think Tank
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
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
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
We are all whores.
Series 7 and 13
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