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This Is Not A Normal Recession: Moving on to Plan B
- Text size
Mike Whitney
Global Research
November 21, 2008
“The Winter of 2008-2009 will prove to be the winter of global economic discontent that marks the rejection of the flawed ideology that unregulated global financial markets promote financial innovation, market efficiency, unhampered growth and endless prosperity while mitigating risk by spreading it system wide.” Economists Paul Davidson and Henry C.K. Liu “Open Letter to World Leaders attending the November 15 White House Summit on Financial Markets and the World Economy”
The global economy is being sucked into a black hole and most Americans have no idea why. The whole problem can be narrowed down to two words; “structured finance”.
Structured finance is a term that designates a sector of finance where risk is transferred via complex legal and corporate entities. It’s not as confusing as it sounds. Take a mortgage-backed security (MBS), for example. The mortgage is issued by a bank (the loan originator) which then sells the mortgage to a brokerage where it is chopped up into tranches (pieces of the loan) and sold in a pool of mortgages to investors that are looking for a rate that is greater than Treasurys or similar investments. The process of transforming debt (”the mortgage”) into a security is called securitization. At one time, the MBS was a reasonably safe investment because the housing market was stable and there were relatively few foreclosures. Thus, the chance of losing one’s investment was quite small.
In the early years of the Bush administration, Wall Street took advantage of the gigantic flow of capital coming into the country ($700 billion per year via the current account deficit) by creating more and more MBSs and selling them to foreign banks, hedge funds and insurance companies. It was real gold rush. Because the banks were merely the mortgage originators, they didn’t believe their own money was at risk, so they gradually lowered lending standards and issued millions of loans to unqualified applicants who had no job, no collateral and a bad credit history. Securitization was such a hit, that by 2005, nearly 80 percent of all mortgages were securitized and the traditional criteria for getting a mortgage was abandoned altogether. Subprimes, Alt-As and ARMs flourished, while the “30 year fixed” went the way of the Dodo. Lenders were no longer constrained by “creditworthiness”; anyone with a pulse and a pen could get approved. The mortgages were then shipped off to Wall Street where they were sold to credulous investors.
The disaggregation of risk–spreading the risk to many investors via securitization–was as much of a factor in the creation of “the largest equity bubble in history”, as the banks lax lending standards or Greenspan’s low interest rates. By spreading risk throughout the system, securitization keeps interest rates artificially low because the real risks are not properly priced. The low interest rates, in turn, stimulate speculation which results in equity bubbles. Eventually, credit expansion leads to crisis when borrowers can no longer make the interest payments on their loans and defaults spiral out of control. This forces massive deleveraging and the fire-sale of assets in illiquid markets. As assets lose value, prices fall and the economy enters a deflationary cycle.
There are many types of of structured instruments including asset-backed securities (ABS), mortgage-backed securities (MBS), collateralized debt obligations (CDOs) and collateralized loan obligations (CLOs) all of which provide a revenue stream from loans that were chopped into tranches and turned into securities. There are many problems with these complex securities, the biggest of which is that there is no way to unravel the individual pools of loans to isolate the bad paper. That’s why subprime mortgages had such a destructive affect on the secondary market, because–even though subprimes only defaulted at a rate of roughly 5 percent–MBS sales slumped nearly 90 percent. Why? Former Secretary of the Treasury Paul O’Neill explained it like this: “It’s like you have 8 bottles of water and just one of them has arsenic in it. It becomes impossible to sell any of the other bottles because no one knows which one contains the poison.”
Exactly right. So why weren’t these structured debt-instruments “stress tested” before the markets were reworked and the financial system became so dependent on them?
Greed. Because the real purpose of these exotic investments is not to provide true value to the buyer, but to maximize profits for the seller by increasing leverage. That is the real purpose of MBS, CDOs and all the other bizarre-sounding derivatives; higher profits with less capital. It’s a scam. Here’s how it works: A mortgage applicant buys a house for $400,000 and puts 10 percent down. His mortgage is sold to Wall Street, chopped into pieces, and stitched together in a pool of similar loans. Now the brokerage can use the debt as if it were an asset, borrowing at ratios of 20 or 30 to 1 to fatten the bottom line. When Fannie Mae and Freddie Mac were taken into conservatorship by the government, they were leveraged at an eye-popping 100 to 1. This shows that nearly an infinite amount of debt can be precariously balanced atop a paltry amount of capital. This explains why the $4 trillion aggregate value of the 5 big investment banks and the $1.7 trillion value of the hedge funds is now vanishing more quickly than it was created. Once the mighty gears of structured finance shift into reverse, deleveraging begins with a vengeance pulling trillions into a credit vacuum.
It all started when two Bear Stearns hedge funds defaulted in July 2006 and there were no offers for their MBS and other structured investments. Panic quickly spread to every corner of Wall Street as the alchemists of modern finance began to see that their worst nightmare might be realized, that trillions of dollars of Frankenstein investments could be worth nothing at all.
- A d v e r t i s e m e n t
Since the Bear Stearns funds fiasco, there have been huge explosions in the financial markets. Fannie Mae, Freddie Mac, Wachovia, Washington Mutual, Indybank, AIG, Lehman Bros and other industry giants have either gone under or been forced into shotgun weddings by the FDIC. The stock market has plunged over 40 percent and suffered wild gyrations not seen since the 1930s. The entire Wall Street landscape has changed completely. Investment banking is no longer a viable business model; the Big 5 have either vanished or transformed themselves into holding companies to escape short sellers. The hedge funds have been deleveraging with a ferocity that has sent sent stocks and commodities crashing. In one day last week, the stock market plunged 300 points in the morning only to bounce back 550 points a few hours later; a whopping 850 point-spread in one trading day! No one but a madman would dabble in this market. Cautious investors have pulled up stakes and moved to the safety of Treasurys. Meanwhile, the financial tsunami is roaring through the real economy where consumer confidence has plummeted, unemployment is soaring and retail sales have fallen to historic lows. The downdraft from the financial markets has flattened Main Street and set the stage for a humongous $500 billion stimulus package to be delivered in the first few months of the Obama administration. The meltdown appears to be playing out much like Henry Paulson anticipated. According to Bloomberg News : “Shortly after leaving Wall Street as Goldman Sachs’ CEO, Henry Paulson was at Camp David warning the president and his staff of “over-the-counter derivatives as an example of financial innovation that could, under certain circumstances, blow up in Wall Street’s face and affect the whole economy.” (PAUL B. FARRELL, “30 reasons for Great Depression 2 by 2011″, MarketWatch)
So far, the Federal Reserve has provided nearly $2 trillion through its lending facilities just to keep the financial system upright. The Treasury is currently distributing $700 billion to key banks and other financial institutions that are perceived to be “too big to fail”. In truth, the “too big to fail” mantra is a just public relations hoax to conceal the web of counterparty deals that make it impossible for one institution to fail without dominoing through the rest of the system and wreaking havoc. That’s why AIG is still on life-support with regular injections of taxpayer money; because it had roughly $4 trillion of credit default swaps (structured “hedges” that are not traded on a regulated exchange) for which AIG does not have sufficient capital reserves. In other words, the taxpayer is now paying the debts of an insurance company that didn’t set aside the money to pay its claims. (As yet, No SEC indictments for securities fraud) In fact, the Fed and Treasury are now providing a backstop for the entire structured finance system which is frozen solid and shows no sign of thawing any time soon.
This is not a normal recession, which is a downturn in the business cycle and “a period of reduced economic activity” usually brought on by a mismatch between supply and demand. (that ends in two quarters of negative growth) The present situation is much more grave; it is the utter destruction of a system that was developed fairly recently and has proven to be thoroughly dysfunctional. It cannot withstand the effects of tighter credit or adverse market conditions. This is not a cyclical downturn; the structured finance system has collapsed leaving behind a multi-trillion dollar capital hole that is bringing the broader economy to its knees.
One by one, we have seen the structured instruments fail; mortgage-backed securities (MBS), collateralized debt obligations (CDOs), credit default swaps (CDS), commercial paper (CP), auction rate securities. Now we are seeing investors boycott anything related to structured investments. This is from Mish’s Global Economic Trend Analysis:
“There were NO sales of bonds backed by credit-card payments in October, the first time since 1993, when the asset-backed securities market was in its infancy. Yields on top-rated credit card bonds relative to benchmark interest rates reached a record high of 525 basis points more than the London interbank offered rate, or Libor, last week, according to Bank of America Corp. data.”
Wall Street has turned off the faucet for securitized investments. That market is toast. The only reason that Libor and the other gauges of interbank lending have normalized is because the Fed guaranteed money markets and commercial paper. It has nothing to do with trust between the banks themselves. There is no trust. Even so, the banks are not capable of making up for the vast amount of credit which was produced by the now-defunct investment banks and hedge funds which are constrained by losses of nearly $3.5 trillion; half of their total value. In the best case scenario, bank credit will only shrink 15 or 20 percent, which will put the US on track for a deep “18 month to 2 year” recession rather than another Great Depression.
Paulson’s attempt to divert $30 billion to non-bank financial institutions to revive loan securitization when there is no appetite among investors for such structured junk is pure folly. More troubling, is that neither Paulson nor Bernanke have a Plan B; an alternate scheme for rebuilding the financial markets on a solid, sustainable foundation rather than low interest rates and pools of debt. Everything they have done so far, suggests that they are focused on one thing alone; inflating another equity bubble. “Inflate or die”, as the saying goes; and Bernanke intends to achieve this objective using the same tools that brought us to the brink of catastrophe. Here’s a clip from a recent speech by Bernanke which shows his determination to prop up the broken system:
“The ability of financial intermediaries to sell the mortgages they originate into the broader capital market by means of the securitization process serves two important purposes: First, it provides originators much wider sources of funding than they could obtain through conventional sources, such as retail deposits; second, it substantially reduces the originator’s exposure to interest rate, credit, prepayment, and other risks associated with holding mortgages to maturity, thereby reducing the overall costs of providing mortgage credit.”
Sorry, Ben, the funding has dried up and the banks have shown no interest in going back to the days of conventional “30-year fixed” mortgages. It’s a dead letter. The Fed and Treasury need to stop looking for ways to reflate the bubble and work to restore confidence in the markets by increasing regulation and reducing the amount of leverage that’s allowable to 12 to 1. After all, it’s no coincidence that AIG, Fannie and Freddie, Lehman Bros, General Motors, General Electric have all fallen off a cliff at the very same time. They are all victims of the same low interest, easy money finance swindle which allowed them to roll over huge amounts of short-term debt at artificially low cost. When Bear blew up; lending tightened, demand weakened, and credit was flushed from the system at an unprecedented pace. Borrowing short for long-term investments is not feasible when credit becomes scarce, but it’s not because the banks aren’t lending. That’s just another myth that keeps the public from seeing what’s really going on. As Jon Hilsenrath points out in his Wall Street Journal article, “Banks Keep Lending, but that isn’t easing the crisis”, that is not the case:
“Banks actually are lending at record levels. Their commercial and industrial loans, at $1.6 trillion in early November, were up 15% from a year earlier and grew at a 25% annual rate during the past three months, according to weekly Federal Reserve data. Home-equity loans, at $578 billion, were up 21% from a year ago and grew at a 48% annual rate in three months….The numbers point to one of the great challenges of the crisis. The credit crunch is surely real, but it is complex and not easily managed. Banks are lending, but they’re also under serious strain as they act as backstops to a larger problem — the breakdown of securities markets..The worst of the credit crisis is being felt not in banks but in financial markets…”
The banks are not to blame. There is a generalized contraction of credit in the non-bank financial system where structured finance has blown up and taken half of Wall Street with it. It’s the end of an era. Here’s how economist Henry C. K. Liu sums it up in his “Open Letter to World Leaders attending the November 15 White House Summit on Financial Markets and the World Economy”:
“Neoliberal economists in the last three decades have denied the possibility of a replay of the worldwide destructiveness of the Great Depression that followed the collapse of the speculative bubble created by unfettered US financial markets of the ‘Roaring Twenties’. They fooled themselves into thinking that false prosperity built on debt could be sustainable with monetary indulgence. Now history is repeating itself, this time with a new, more lethal virus that has infested deregulated global financial markets with ‘innovative’ debt securitization, structured finance and maverick banking operations flooded with excess liquidity released by accommodative central banks. A massive structure of phantom wealth was built on the quicksand of debt manipulation. This debt bubble finally imploded in July 2007 and is now threatening to bring down the entire global financial system to cause an economic meltdown unless enlightened political leadership adopts coordinated corrective measures on a global scale.”
Rome is burning. It’s time to stop tinkering with a failed system and move on to “Plan B” before it’s too late.
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November 21st, 2008 at 12:23 pm
It’s well pass time to acknowledge a system for extorting the many and pandering to the opulent few. Native Americans can identity with this. What we’re facing are the results of decades of manipulation running its course. The sub prime was just the ruse, fuse, mechanism and initial scapegoat to hide the real cause. Is history about to repeat itself?
The Great Depression was a worldwide economic downturn originating in the U.S. The decline in the American economy was a factor that pulled down most other countries.
The first depression could be considered a fluke. But twice in less than a century, 1929-2008, fails the smell test. Close scrutiny points to some of the same scrupulous forces and common denominators in play. Notice how specific people, families and institutions (vultures for life) come out shining while others end up dying. Coincidence you say? Like fire collapsing and vaporizing several skyscrapers in their own foot prints! The best place to hide something is right under your nose.
November 21st, 2008 at 1:42 pm
Another way to paraphrase the problem & solution: end fractional reserve banking.
November 21st, 2008 at 1:44 pm
Great view in this article.
There is no Plan B when it is deliberate.
Everything is going just as planned.
The real kick in the crotch. Is that even during the depression.
The government did not take advantage of the situation to profit and incur a debt greater than the problem itself.
When and How did the first discussions of government bailout come up at the big 3 companies board reviews when told of their financial losses??
Why? would any company that has screwed up so bad think, that’s o.k., we can get the government to bail us out??
Seems very coordinated the way all 3 of them came together with same solution for their mistakes!!!
Everything is controlled. This gives peace and mind from the fact that tomorrow the dow could drop to 0%.
You can rest assured the government plunge group will insure it stays exactly where they want it.
They have a Plan B, but it is not better.
November 21st, 2008 at 1:47 pm
The chemtrails in Los Angeles are turning me into an idiot. You should see what is happening here over the last couple of days. It is like the government is playing a giant game of tic-tac-toe. WTF! Poisoning our water, our air, our children and our money supply and most people are totally clueless.
November 21st, 2008 at 2:48 pm
Thanks AJ for posting this VERY informative article, its one of the best on the derivatives meltdown that I have read. However I would say in response to the author’s ending question for a forward thinking leader that saw through the smoke and leaders, the GOP failed to fully support their only hope, i.e Ron Paul.
I am afraid that it is too late, the damage is done and the repercussions are just beginning. Now just a few natural disasters and then some planned wars will bring the U.S. to its knees and the globalists will enter into the final stages of their plans. However, we should find hope in the realization that they are as lost in terms of real genius for leadership as we the American people are. God is not joking about His Word, those who profit from usury will reap the fruits of their labor, unfortunately the rest of the world is involved, I suppose that is their only hope as they go down the rest of us will as well and we will be willing to subject ourselves to their control.
November 21st, 2008 at 2:54 pm
WANT TO SEE INTO THE FUTURE????????
LOOK AT THE PALESTINIANS………THAT’S THE FUTURE OF HUMANITY
November 21st, 2008 at 3:20 pm
Yeesh, somebody trying 2 blab & fill up lots of space just 2 say ‘the derrivative ponsy scheme is America’s death nail’. Was looking 4 some new info, but that’s all it’s saying.
November 21st, 2008 at 3:38 pm
so what’s plan B?
November 21st, 2008 at 3:42 pm
#5 I’m glad someone brought this up sorry it’s off topic and the above story was excelent.
I’m visiting burllington Iowa and the trails are so thick here every day for two weeks.
I took pictures and do not go outside.
My sister in AZ sent me pic text last night and she’s being bombarded as well.
Must note: IT’S FREAKING ME OUT!!!!!
November 21st, 2008 at 3:55 pm
If the US GVT had stayed out of the “financial game” and stood within it’s bounds as the US COnstituion requires.. well.. the People would have prevailed.
Once in.. the bankers took over the host(GVT) and now we will slowly die a miserable death as a nation. ALl is not lost.. some will survive.. unfortunately those in power will always stack the deck in their favor. This will be a way of life forever until some major catastrphe ends the “modern way of life”.
It is a shame that such a natiion came so far only to be destroyed, primarily, from an internal source and with the consent of an apathetic and ignorant population.
We deserve this.
November 21st, 2008 at 4:17 pm
I wrote about chemtrails in Phoenix being the worst ever and I was immediately taken off Rawnuts format, Thier new sponser is Chase the killer beast.
November 21st, 2008 at 5:13 pm
Well put #11 Casual Observer, I fully agree we do deserve this in a way, but is our ignorance our own or was it manufactured into us? I’m not trying to deny responsibility, humankind could have done better than this and have very realistically dissappointed me. By the way I would like to mention that I don’t think AJ is a black-op, the man is passionate about what he does and he’s been warning us meanwhile hardly anyone else has, and I commend that.
November 21st, 2008 at 5:48 pm
United States Constitution, Section 10
“ No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility. ”
November 21st, 2008 at 5:58 pm
#5—#10—-Out here in mt, out in the middle of nowhere the trails are THICK. Sometimes I can’t see blue sky on a sunny day.
November 21st, 2008 at 6:16 pm
I live here in oregon and the chemtrails are everywhere. PEOPLE THE EVIDENCE IS IN THE SKY!
LOOK UP!
IF the GVT would just stay out (which they wont cause they want frest slaves)
November 21st, 2008 at 6:53 pm
I live here in oregon and the chemtrails are everywhere. PEOPLE THE EVIDENCE IS IN THE SKY!
LOOK UP!
IF the GVT would just stay out (which they wont cause they want fresh slave) we would all be fine.
ALL AMERICANS SHOULD BE CHECKING INTO THE BACK WOODS RAILWAY LINES FOR HUMAN CATTLE CARS, WITH BUILT IN SHACKLES. THEY ARE REAL AND ARE IN PLACE TO IMPRISON AMERICAN CITIZENS. FIGHT THE FEMA CAMPS. STAND UP FOR WHAT YOU BELIEVE IN.
November 21st, 2008 at 7:33 pm
Our financial system was designed to fail. It was mathematically impossible for it to succeed and the elite private banksters knew this.
Btw, the CHEMTRAILS were thick here in Kansas City today. Those lil bastards!
November 21st, 2008 at 7:37 pm
Wow…. Never knew that we were going through such a huge thing….. Do you think we can be helped?
November 21st, 2008 at 7:53 pm
We are spiraling down into a deflationary depression. The supply of money is falling fast.
November 21st, 2008 at 8:36 pm
#2: I have no identity crisis and my moral compass and lensatic compass work fine. Yes. The United States is a Corporation. Yes the Corporation has authority in the D of C. and over those who say they are citizens thereof. Blah blah blah. Were you born in DC? DO not confuse or delude yourself with the corporation crap, because it’s just that. Crap. Unless you are dragged into a court and then they wont admit it. That is what it’s meant to do. Lead you astray. Smoke screen. Next you will notice the flag behind the judges bench and make the argument that the gold fringe on the flag is an admission of martial law and you would be right. But you will never get them to admit it. You need to do some homework. The last thing you should do is place your faith in a group of corrupt people, lawyers, judges too, that are all members of the same union called the Bar. You cant, CANNOT trust a lawyer, period. They are there to lead you down the wrong path and make lots and lots of money. You cant explain it to most people because they do not want to know the truth. They fear the truth. Your faith should be with yourself. Let YOUR instincts work. If you truly believe that a piece of paper would fix all the problems of this nation. Dont you also believe someone would have filed that piece of paper long ago and this would be a non issue. Naw a lawyer. Pillar of the community, a person of trust and veracity would never make you believe that you could do it with paper if paper wont work. Without violence or the threat thereof things will not happen to correct this problem.
Everybody else. Buy food, guns, ammo, and educate yourself, your friends and children. Read and understand the Constitution. Know this the Government and all the people that work for it are there to lie and deceive you to their own benefit. DO NOT trust them for any reason.
Carry on.
November 21st, 2008 at 9:01 pm
We the American people cant solve this catastrophe. The Congress has proven they will not listen to us. It was voted in contrary to the wishes of the public. So. What are the options? The ultimate power has already been given to the Federal Reserve as if we could give them MORE power than to control our money. Paulson has it all now. He wont stop till he can completely bleed us dry. He’s a vampire. I know of only one way to stop this looting though I doubt many are willing to do that which we all fear is the answer.
November 21st, 2008 at 10:36 pm
We don’t want your paper. We want gold and silver to be legal tender and will fight for our Constitutional rights to the death.
November 21st, 2008 at 10:49 pm
It’s true what the article implies and it’s that the TRUST is gone. For every side of the coin imaginable. We must restore the trust in order to stabilize ourselves. Over spending, illegal invasions, greed, etc… must end. As citizens, we should grab hold of our values and move forward amongst ourselves. It all starts from our own backyard. Inform your neighbor about the truth of this evil manipulation and gather as many people as possible. We in essence don’t need BIG government but rather a fraction of it to maintain “order”. I say order for a lack of a better word. But we the people have the power to rule and by God we don’t have minute to lose….
November 21st, 2008 at 11:07 pm
It is stunning the pace in which they are obviously accelrating this thing. It is truely Stunning! Even more so would be the total ignorance most common fools have of the entire situation.
It is and will be a very swift face lift of the worlds entire social and economic make up! I am sick to death of all the Obama supporters who can’t see past their own desire to sink further into their slumber as long as they can still watch TV and eat garbage everyday!
I fear that there is no turning back at this point. There will be substantial change in every sector! Those who oppose it will be dealt with quickly.
November 21st, 2008 at 11:09 pm
Yes, the United States is defined as a “Corporation”
From the U.S. Code
§ 3002. — Definitions. http://law.justia.com/us/codes.....c3002.html
“United States” means–
(A) a Federal corporation;
(B) an agency, department, commission, board, or other
entity of the United States; or
(C) an instrumentality of the United States.
Same tryants that the Pilgrams ran from are the same ones operating the corporation of the United States. I don’t understand how people can be so complacent.
People have been so used to working to pay for the basic necessities, for so long, they actually don’t realize that they have been slaves all the long. They accepted this for generations on end. WHY? Thinking that they are FREE. I say more like “STUPIDITY”.
The NWO will now work you without you having to pay for the basic necessities. The ideal of NO WORK equates to NO EAT. If you rebel you will die, or live the rest of your life in a mental institution where you will be used for experiments. That way they can claim their fame by seeking ownership over the whole world.
November 21st, 2008 at 11:10 pm
If Plan “B” dosen’t work, then what?
November 21st, 2008 at 11:10 pm
Yes, the United States is defined as a “Corporation”
From the U.S. Code
§ 3002. — Definitions. http://law.justia.com/us/codes.....c3002.html
“United States” means–
(A) a Federal corporation;
(B) an agency, department, commission, board, or other
entity of the United States; or
(C) an instrumentality of the United States.
Same tryants that the Pilgrams ran from are the same ones operating the corporation of the United States. I don’t understand how people can be so complacent.
People have been so used to working to pay for the basic necessities, for so long, they actually don’t realize that they have been slaves all the long. They accepted this for generations on end. WHY? Thinking that they are FREE. I say more like “STUPIDITY”.
November 21st, 2008 at 11:23 pm
I am all for ending the fed but please, everyone, improve your grammar. You’re making us look like products of the American education system. Subject and predicate, erratic coma usage, you know… the basics.
November 22nd, 2008 at 12:43 am
How’s this #30? Are all my predicates in line?
The first dumbass that knocks on my door demanding my gun will get it…bullet first.
November 22nd, 2008 at 2:31 am
http://www.expansions.com
November 22nd, 2008 at 9:53 am
If there’s a time to move on to Plan B…this would be it.
November 22nd, 2008 at 9:55 am
Am I getting a grade???
Bushie is on the tube,he’s at APAC Summit, telling all of the nations how he’s going to take all of our $$$ and give it to them.
Unbelievable!
November 22nd, 2008 at 11:02 am
When the cats away…the mice will play. Weapons of mass distraction. He’s cunning with this moves and knows way to much to ever be in office. Eight years is plenty of time to set himself up personally without the taxpayers even knowing. We haven’t seen the last of GWB. He’ll make true history once he’s out of office when compared to his time spent being employed at the white house. I believe that was the intention anyways.
November 22nd, 2008 at 11:14 am
I don’t know about plan “B”.. But Roosevelyt initiated Plan “A” a long time ago.
A short FREE internet book that lays out the details. Read it and come to your own conclusions.
http://www.reformation.org/wall-st-fdr.html
November 22nd, 2008 at 1:09 pm
HERE IS YOUR PLAN A-B- C- ALL THE WAY TO -Z. NATIONALIZE ALL BANKS, SELLING OFF OF HARD ASSETS TO OUR LENDERS. CLAIM DEFAULT, NEW CURRENCY. FASCISM. bringing in kissinger’s boy geithner and summers will assure this.
November 22nd, 2008 at 4:04 pm
#21 John Galt, I have read your other posts, and you are dead on except for one thing. It’s not that you can’t trust a lawyer, it’s that a lawyer can’t help you. I can assure you that most lawyers are f---ing clueless. That is what is most discouraging. I have to deal with it every day. They are just as oblivious as Joe Sixpack. In some respects lawyers are in greater denial because it’s harder for them to accept the fact that despite their training and experience, they have bought into the lie and been punked just like Joe.
November 22nd, 2008 at 6:13 pm
#38— I have to disagree—My lawyer won me $206,000 in ‘04. If there’s money in it for them, they’ll work their ass off.
November 22nd, 2008 at 7:17 pm
My experience is that both post #38 and #39 are right..
the choice is up to the lawyer.
I live in a small town area where all the lawyers have their own little world. None of the lawyers or Judges want to rock the boat because the citizens are clueless and won’t even look up thelaws on the Inet now that they have access. Learning the laws is just too much trouble for some.. and not as interesting as TV.
Those lawyers who do care about the laws have it over such corrupt individuals if they are willing to go the mile. Corrupt lazy lawyers don’t want their little world exposed..
There is no doubt in my mind, at leats in small towns that Judges and lawyer all attend the same fish fry. I hired a lawyer.. he wanted to gire me.. until I started putting his ass on the line with the laws that are on the books.
I got railroaded quickly… and found llawyers outside the little world where I live who would not take cases.. not mine or many others..even simple divorce cases.. because they knew the Judges were the final word… and too much time could be wasted fighting the good ole’ boy network.
I even represented myself.. which I found out is not acceptable by a Georgia Judge.. and don’t bother with the Constitution..either GA or the US.. they won’t hear that argument.
I wish I could expiose the system.. but I do not have the assets..If I had a million dollars I would spend it all to expose the corruption. My life would not change and the money would not be as important as the truth.
November 22nd, 2008 at 8:46 pm
THE WHOLE GOVERNMENT (COPS, COURTS, JAILS, LAWYERS, JUDGES, CONTRACTORS, FEDERAL, STATE CITY EMPLOYEES, TEACHERS, GARBAGEMEN, HOSPITAL WORKERS, TAXIDRIVERS, ACCOUNTANTS DOCTORS, ETC.) HAVE A GREATER AND GREATER STAKE IN PERPETUATING THE SYSTEM EACH DAY! AS ‘PRIVATE’ SECTOR JOBS ARE LOST, I DON’T SEE ANY DECREASE IN GOVERNMENT!
THE ONLY BRIGHT LIGHT IS THAT SINCE THERE MUST ALWAYS BE SOMEONE TO BLAME, AT SOME POINT, THEY’LL HAVE TO BLAME EACH OTHER! I’LL PROBABLY BE GONE BY THEN.
FROM THE BEWILDERNESS–THANKS FOR COMING!
JAMES MANSFIELD
SEE BRYCE CHRISTIANSON’S BOOK ABOUT THE AMERICAN FAMILY FOR MORE DETAILS
November 22nd, 2008 at 8:52 pm
OH NO I NEARLY FORGOT:
OBAMA WILL SAVE US BY SPENDING MORE FIAT MONEY! I JUST HOPE I CAN GET ONE OF THOSE JOBS! BUT ALAS THOSE JOBS WILL BE GIVEN ACCORDING TO THE BUDDY SYSTEM! HOORAY!
WAITING PATIENTLY,
jAMES MANSFIELD
November 22nd, 2008 at 11:28 pm
There is so much bulls--- in the world it makes my head hurt. I mean I actually have a bad f---ing headache from all this s---. 2012 is it and I think we may be at a point of no return. I think maybe I’ll be glad when it’s all over. Evil is a hell of a thing. Why else would these demons in government, in corporations, in the Illuminati be doing this unless they were really evil. Money and power are not things you can take with you when you die so I think it actually goes against human nature for them to be doing this. I’m not convinced God or the Devil are real, or for that matter Heaven and Hell but I am convinced that real evil exists and the perpetrators of all this are demons.
November 23rd, 2008 at 12:22 am
Looks like Obama is going to reinvent the old WPA program we had from the 30s “The Great Depression”
Put people to work building roads, sewer systems etc.
November 23rd, 2008 at 12:38 am
Harper compares economic crisis to 1929; APEC pledges to shun trade barriers
http://posmedprod.webs.com/economiccollapse.htm
November 23rd, 2008 at 7:25 am
Those who bless Rebellious Israel will be cursed and those who curse the abomination we call Israel will be blessed.
America is solid proof.
November 23rd, 2008 at 8:34 am
“Looks like Obama is going to reinvent the old WPA program we had from the 30s “The Great Depression”
Put people to work building roads, sewer systems etc.”
that’s a good idea. the only way out of this is to create jobs and reduce debts.
November 23rd, 2008 at 9:24 am
#44 Joanie #47 Neal, definitely real productivity is the answer. the near 5 trillion to the banksters divided to 200 million homes would be over 22,000 each. enough to put solar panels and windmills on every rooftop, hooked to the grid and providing green power, no need for carbon tax or its non-productive youth brigades. GM and other automakers could build low rpm permanent magnet alternators cheaper than aftermarket companies on a HUGE contract and not need a bailout. big energy wont go out of business, theyed need more techs for installation and servicing. mass producing grid feeding controllers would drive the cost of those units down. the people would save 1000 a year on electricity, times 200 million is 2 trillion every year, the government will end up with half of that one way or another, they always do. 5 trillion invested returning a trillion a year for 20-25 years (is the life expextancy of the solar cells), plus providing cheap energy to BE manufacturing. nuclear plants could be replaced with geothermal so we dont have the depleted uranium to be throwing at each other, Iran could have power without nuclear plants and Isreal could STFU about the potential for nuclear weapons. all the jobs and good that spending the same kind of money could do, with even more positive returns, also less power outages to homes.
November 23rd, 2008 at 11:47 am
The hyper-inflation resulting from the 8 trillion in “liquidity” injected into the system recently will demolish what’s left of capitalism.
All that so-called “stimulus” is the economic equivalent of “making the rubble bounce.” Inflation is coming and soon.
The bubble will reflate but so much and only for a very short while. Adjusting for that burst of inflation will produce in reality, a flat line, then a continuation of downward asset values.
November 23rd, 2008 at 12:56 pm
#48 From casually watching events unfold my entire career I have to say that those in control have absolutely no desire to see sustainable solutions to our economic and energy woes. Rather, they design failures into the system to drive everyone further into debt. Any real and innovative solutions will be suppressed since those solutions would offer sustainability and prosperity.
November 23rd, 2008 at 2:51 pm
Thanks, Sees Things, for the best solution I’ve seen to the current messes. Would that we had a Congress or Admin. that could see things.
November 24th, 2008 at 3:51 am
yipes, this too shall pass. even if we could fix the economy, what about rex 84, pnac and population reduction, operation red sky, gandalf and echelon. further, cern is a major concern in relation to planet nibirus approaching orbit. You snaky elites/demons have a date with final destiny on pentecost 2012. thanks for nearly nine months of surveillance and harassment. you failed to take into account that i have been preparing for this day since before i was born. you further know who has my back………….got a little expose coming out on you, all of it from before the garden. hope i didn’t miss much. enoch helps me out. signed, the remnant/ Pamela
November 24th, 2008 at 9:44 am
Web of Debt by Ellen Hodgson Brown gives a good overview analysis of the current situation as well as a way out via a return to interest free ‘grrenback’ dollars. http://webofdebt.com
November 24th, 2008 at 11:40 am
well, well, something “strange” happened in the wee hours of the morning it seems : I posted here, probably between 2-3 am EST, before # 51, I know for a fact, and, I believe, before #50…guess I must’ve pissed-off the “Special People”, and their Christian-Zionist puppets, who knows?…it was on-screen, though, last time I looked…and, low and behold, this morning, it ain’t here now!
Naw, there’s no censorship here…funny thing, I see many posts with ruthless hate, and peppered with plenty of gutter-English posted to Infowars, but I reckon that’s okay-as long as you don’t speak the Truth about The Self-Chosen Tribe, right?
Freedom of speech, a cultural tradition of European Peoples, is truly on it’s death-bed, when it’s censored HERE!
And it wasn’t “heavy load” on the server, I saw the damn thing before I shut-down at around 0300-don’t give me that bulls---!