Posted on 09/27/2008 5:55:27 PM PDT by dragnet2
I think that PJB is right on target here, and quite nutty when it comes to other things (like the history of WWII.) But unlike many others, he is in a perfect position to point out what’s happening now. (Ann Coulter is another. ‘Affirmative Action mortgages’ she said the other day. McCain could guarantee his election if he dared to use this phrase.)
B/S. Pull the plug and drain the socialist tub, er, swamp.
I can agree with that, Pat B is one of the few who have been consistent in speaking out.
And his book on WWII....that is a head shaker...
Think that would make them nervous?
A day of no liquidity is enough to cause a panic & crash. The reason he got behind the solution he did has to do with his belief in the advice he's been given. Doubtful China threatened to pull the plug, cuz they're in deep enough, their economy would be part of the cascade.
I suggest that Karl Denninger has a good solution that PJB might find acceptible.
The solution is simple, it is elegant, and it will work.
- Force all off-balance sheet "assets" back onto the balance sheet, and force the valuation models and identification of individual assets out of Level 3 and into 10Qs and 10Ks. Do it now. [Denninger calls this 'transparent balance sheets']
- Force all OTC derivatives [i.e. credit default swaps] onto a regulated exchange similar to that used by listed options in the equity markets. This permanently defuses the derivatives time bomb. Give market participants 90 days; any that are not listed in 90 days are declared void; let the participants sue each other if they can't prove capital adequacy.
- Force leverage by all institutions to no more than 12:1. The SEC intentionally dropped broker/dealer leverage limits in 2004; prior to that date 12:1 was the limit. Every firm that has failed had double or more the leverage of that former 12:1 limit. Enact this with a six month time limit and require 1/6th of the excess taken down monthly.
Once 1-3 are put in place then send in the OTS and OCC examiners and look at every financial institution in the United States. All who are insolvent and unable to raise private capital immediately are forced through receivership where the debt is converted to equity and existing equity is wiped out. With the CDS monster caged the systemic risk is removed, the bondholders provide the cushion for recapitalization (as it should be) and the restructured firm emerges with no debt while the former bondholders are now the owners (of the equity) in the resulting firm.
Yeah it gets old .
Even the PJB haters have to love him for this , it just doesn’t get any better :
http://www.youtube.com/watch?v=K9BJwKA8nkU
So when the polls were going upside down and it looked like “The World’s Messiah maybe wasn’t going to get his Crown,” did “Holders of Wealth” {not the US}, play their Economic Terrorism Card?? The timing of this very interesting.
America is getting MUGGED and is too cowardly to fight back..
Ahem, PJB may have a point. Bin Laden 9/11 cost the US 80 billion, political correctness and not enforcing existing regs cost us 700 to 1000 billion. Nothing beats the enemy from within. Liberals and investment bankers did ten times more damage than Bin Laden. Read what the Minister of Finance of Germany recently published. He warned the US in a G8 meeting two years ago that the US philosophy of not monitoring the activity of investment bankers is both simple and dangerous. Today he sadly reported that the year 2008 is the year that will mark the end of the US as a dominant financial center and relegated to only a revelant financial power. I hate to say it but PJB and the German minister is right. The US will need time to recover, and financially strapp we will be unable to launch democracy crusades and will be forced to defend only our core strategic areas and subject the rest to diplomacy and realpolitik. Hopefully the rest of the competing powers (EU, China, Russia and India) will let us recovery to reemerge (don’t hold your breath). We have over 70 trillion in debt obligations (wars, entitlements, bank bailouts) and in the future main street (average Joes) will face inflation caused by devalued US dollar because the only way we will reduce this debt is to inflate our way out of it, otherwise social instability and dictatorship.
Send to all your friends and family, to your Congressman, to blogs, local news orgs, the RNC, churches, etc.
Well, he is right.
We are going to pay the piper one way or another.
There are plenty of people who need real FBI investigation. Raines, Gorelick, Frank, Dodd, ACORN heads, and any other Democrat or Republican CongressCriminal (TM) or Wall Street Criminal (TM) who are up to their ears in this.
I hope W is just an innocent dupe, but he is all too quick to adopt the Paulson/Bernanke plan (not that he's ever tried to force a bill down our throats AMNESTY before), and they weren't screaming this to the rooftops years ago, as they should have if they were decent. They are insiders with thousands of analysts at their disposal, they knew this was coming. Otherwise, he can rot in prison too, as far as I'm concerned, and stuff his "legacy" where the sun don't shine.
I agree Cat. Buchannan has become all twisted up with his job at msnbc and conservative past. He defends BHO as a capable CINC on msnbc, then goes to conservative outlets to send a different message. He sounds afraid to call BHO an empty suit while on the msnbc set which is strange...unless he really needs the money.
As far as the above article....nothing new IMO. Books going back years on the upcoming financial crisis facing the US. Ron Paul thrown under the bus...he knew the deal yet mocked and dismissed. “People get the government they deserve”...and we are.
Sorry to disappoint you but I don’t rely on the gobierno for my sustenance. Free market means just that. Ya don’t make it, you fail. I know it’s a tough life and I have helped thousands thru my coerced donation to the government, but the market rule under capitalism is make a profit or fail. Let it fail. It’ll be a painful but good lesson to all coerced donors and willing recipients that the last several decades of largesse have been an anomaly.
Interesting thought.
DING DING DING DING DING DING!!!!!!!!!
You have identified the white elephant in the room that nobody is talking about!
Thats exactly what has happened.
How much is China’s loan?
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