Mr. Dixon felt it was his duty to blame the war in Iraq, an enormous U.S. trade deficit, greedy individuals seeking higher profits, short selling, high energy prices, irrational pressures on corporations, money managers, and hedge fundies seeking more profits. He did admit that depressed interest rates was a factor in the creation of the housing bubble, yet he did not take one grain of responsibility for being a part of it. Very psychopathetic.
This week the largest financial banks published their earnings data. What we heard from the television Bobbleheads that blow out their optimistic steamy vapors clouding the truth, which they called information, was “Oh boy, look at Citi’s, as well as the other’s bank earnings. Better than expected!” Geewow!! Their better than expected earnings were based on “no-expectation” earnings projections, so anything better than flat was good. But remember, they received taxpayer dollars to improve their balance sheets, so the taxpayers pumped up these delusional earnings statistics.
At the same time, TimmyG unveiled some of the information regarding his stress testing circus act. His procedure is to reveal if the banks can hold up under irregular economic pressures and if they need taxpayer cash to stay alive. Instead of telling the zombie banks that they have a certain amount of time to find their own capital sources before being taken over by the FDIC, Geithner stated that any bank that showed a weak stress test will be pumped up with more cash by him-by us; no big deal? It is time to stuff the pig. Does this bring on the Pandemic Infection? Darn! The Pandemic Infection actually originated in the United States by the diseased banking industry. Their version of Swine Flu spread quickly throughout the world. The infection seems unstoppable. The richest Americans have gotten some of the financial serum to prevent their own widespread infection.
So, what does this do for the working American? NOTHING! This is not about people but the bankster economic ruling class. Goldman Sachs appears to be the master-thief and oligarch running the Treasury and the Federal Reserve. Goldman Sachs has installed their own people into the control of our monetary system. Hank Paulson was Bush’s Treasury Secretary and principal designer behind the financial extortion plan that forced Congress to authorize Treasury to hand over $700B in TARP cash to the masterminds running the Wall Street mega-banks. Congress was told by Paulson and Bush, as well as by a panicking John McCain after he had suspended his presidential bid, that the economic sky was falling upon the head of Chicken Little!! Without TARP funds the nation would fall into a depression. Goldman Sachs’ Neel Kashkari was asked to head the TARP (Troubled Assets Relief Program). Goldman Sachs’ Jon Corzine, governor of New Jersey rushed into to offer support. Goldman Sachs kept Robert Rubin on the payroll for 26 years before he was installed into the Clinton administration in order to begin the deregulation process, which was signed into law by the BoyBush. Robert Zoellick is Goldman Sachs’ presidential mole in the World Bank, and served in the neo-con administration of DaddyBush. Now we have Larry Summers, Obama’s senior economic advisor as he heads the National Economic Council. Also, we have Tim Geithner who did not work at Goldman Sachs but was trained by their propaganda school headmaster by Rubin and Summers. Goldman Sachs trained John Thain well enough to be CEO of Merrill Lynch before a discounted purchase was arranged by Paulson to Bank of America. Then Goldman Sachs trained Robert Steel who heads Wachovia Bank. This defines Goldman Sachs and their deeply seated control of the United States of America’s financial system.
Since 1986, our financial sector grew from a modest 19% of corporate profits, to a current level of 41% of corporate profits. This has been a strong incentive for Goldman Sachs and the others to make sure Treasury and the Federal Reserve act on their behalf at every turn. Remember, Hank-the Paulie-Paulson made $38 million his last year as CEO as the leader of the oligarchy financial bank—Goldman Sachs. According to Paul Farrell, “Jack Bauer Can’t Stop The ‘Goldman Conspiracy’” he wrote, “Then during the market meltdown six months ago the $700 million personal fortune he [Paulson] built at Goldman was threatened by Goldman’s huge $20 billion derivatives exposure at AIG. Suddenly, his responsibilities at Treasury merged with a strong self-interest in protecting his personal fortune. AIG was saved.” He went on to say…John Whitehead, former Goldman Sachs chairman, former chairman of the New York Fed, former Reagan deputy Secretary of State, warned America’s problems will take years, burn trillions, result in massive deficits, which is a “road to disaster”. Mr. Whitehead then said in Farrell’s piece, “I’ve always been a positive person and optimistic, but I don’t see a solution here.” Farrell concluded with, “He [Whitehead] did see a depression at the end of the road, once you can call “Depression 2.”
How has any of this helped the real economy and the 300-plus million Americans? It isn’t helping. But, it is making life worse for everyone, but those at the top of the economic tier. Michael Whitney wrote in his piece called “Housing Bust Comes Roaring Back, Worse Than Ever”, “that more than 2.1 million homes will be lost this year because borrowers can’t meet their loan payments, up from about 1.7 million in 2008.” In his piece, Rick Sharga V.P. of RealtyTrac, said “We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market.” If the banks decide to put those properties on the market all at once, there would be further depreciation and carnage in the housing market. Mr. Whitney said, “One thing is certain, 600,000 “disappeared” homes means that housing prices have a lot farther to fall and that an even larger segment of the banking system is insolvent.” The article went on to say, “Ten’s of thousands of foreclosures are only 1-5 months away from hitting that and will take foreclosure counts back to all-time highs. This will flood an already beaten-bloody real estate market with even more supply just in time for the Spring/Summer home selling season.” Whitney quoted Ruth Simon, “The Housing Crisis Is About to Take Center Stage Once Again, WSJ”. She said in his piece, “Another 20% carved off the aggregate value of US housing means another $4 trillion loss to homeowners. That means smaller retirement savings, less discretionary spending, and lower living standards. The next leg down in housing will be excruciating; every sector will feel pain. Obama’s $75 billion mortgage rescue plan is a mere pittance; it won’t reduce the principle on mortgages and it won’t stop the bleeding….The housing market is going under and it’s going to drag a good part of the broader economy along with it. Stocks, too.” These assessments sure don’t make the housing future look promising, nor does it make the economy appear to be stabilizing anytime soon.
“So far, the meltdown has wiped out more than $11 trillion of household wealth, ignited soaring unemployment, and pushed millions of people from their homes.” Whitney included Newsweek, “Don’t Buy The Chirpy Forecasts”, “If the United States follows the norm of recent crises, as it has until now, output may take four years to return to its pre-crisis level. Unemployment will continue to rise for three more years, reaching 11-12% in 2011.”
What we now hear is General Motors will layoff more workers and idle around 19 plants. That means their total goal of 47,000 layoffs will likely be realized. For every one autoworker layoff, a ripple effect of a loss of 10 other jobs is felt. With idle plants throughout the summer, and massive layoffs, small business closures, bankruptcies, business downsizing affecting the economy, the summer will be painful for many families. This will affect the tourism and entertainment industries. A deeper recession will likely be realized.
Congress and President Obama are all up in arms over the rip-off by credit card companies as they gouge the card users with higher fees, and interest rates. What is upsetting is that any reforms and pressures placed upon these financial corporate thieves will take over a year to be implemented, yet Team Obama and Congress sure acted fast to stuff the pockets of the largest financial American banking cartel operators. It only took days for hundreds of billions of dollars to hit their balance sheets. Wow!!! They sure act fast to serve the financial needs of the banking predators, but they move at a snails pace to help working America, who are the only ones that can improve the economic conditions.
Can they be that stupid and inept to not understand that unless working Americans psychologically feel that their economic livelihoods are stable, their retirement is back on track, their children have an opportunity to be financial independent, and their jobs are once again stable, there will be no economic recovery? I don’t believe they are either stupid or inept. Our top level government officials have chosen to serve those corporate kleptocrats, those bankstas, those corporate insurgents who are controlling and manipulating those operating inside the government that control the money.
It is clear that the Treasury will be finding fewer tax dollars coming in because working Americans have much less to be taxed on. This same problem will trickle down to state and local tax collectors. Revenues will be down and all taxing bodies will be having to tighten up their declining budgets, which means more layoff, or Pink Slips, leading to more unemployed and less tax revenues, less spending, more shop closures, leading to empty shopping malls and strips, and commercial foreclosures and bankruptcies, while Obama allows his Economic Team to serve the master crime syndicate leader—Goldman Sachs and sidekick Citigroup.
The only way Team Obama will bring about “Change That We Can Believe In” is if hundreds of thousands of protesters decided to ‘March On Washington’ demanding that this economic recovery start at the bottom and work its way up, instead of the other way around.
thanks for reading, jerry
View a Youtube summing all of this up!