Posted on 12/22/2008 3:45:25 PM PST by TexasCajun
RUSH: I want to expand my thought process on this whole Madoff thing and take it into the realm of the current economic crisis, because, quite naturally, all this fascinates me. It's about money. Well, it's all of our money here, folks, that's literally being tinkled away, and I've been asking myself, "How in the world did we get to this point when it all seemed to happen so overnight?" Now, I understand that there were foundational problems that we were being told of as far back as last summer and in spring, but if you search your memory bank you will conclude that a lot of this appeared to happen within a month, starting in October. Now, the Madoff thing is larger and more vast than anybody realizes. The New York Times on Saturday had a front-page story. I printed it out, and it was 11 pages, had 11 contributors. It was written by one person, had 11 different reporters around the world digging up data. Money from Abu Dhabi was put into Madoff's fund, from China, from Indonesia, from Singapore. He was in the process of shaking down the Chinese when the thing blew up, Chinese businessmen. It was huge. It was so huge no one person could possibly have done this for all these years. This required a whole team of people, even with false and phony monthly statements to the so-called investors.
(Excerpt) Read more at rushlimbaugh.com ...
"Schumer's decision to go public with those comments," I'm reading from the LA Times, "triggered a firestorm in Washington. Regulators on July 2 said he was contributing to 'rumors and innuendo' about the bank that could hasten its demise. On Friday, regulators specifically fingered Schumer for IndyMac's failure."
But then, the Rats don't care how much damage is done the country, as long as they can consolidate power and twist "rights" and "law" for use by themselves alone. The goal, after all, is the United Socialist States of America, where the rights of the government are protected from infringement by the subjects.
Even moreso, they actually WANT damage and discontent. The cries of "DO SOMETHING" from a cowardly nation are music to their ears.
Well said.
Precisely!
You never want a serious crisis to go to waste. it’s an opportunity to do things that you think you could not do before.
FINGERED Schumer? That is a term normally associated with handcuffs and frog marches. Accusations are nice, but with the Democrats rising, does anyone REALLY think there will be any controlling legal authority?
NOt a chance — unless the people grab thier pitchforks and squirrel guns.
(Or headcheese... or the head cheese of headcheese.)
Mr. niteowl77
Tinkled away. I would say the faucets have been opened wide and full force.
I think we would be appalled if we could somehow wave a magic wand and reveal all the shenanigans this administration has fallen prey to.
Truthfully, I consider it a miracle George Bush has accomplished as much as he has in the face of the constant attempts to discredit him and sink his plans.
The sad part is that you have to wonder how much he could have accomplished if he had gotten even the cooperation that Democratic presidents have gotten from Republicans over the years. Sure, the Republicans have fought the president tooth and nail, but there's never been the outright attempts to destroy a president and his administration regardless of how badly it damaged the country.
Regarding IncyMac - Schumer’s comments hastened the inevitable. The bank was going to fail, regulators had it on a watch list and were monitoring it, anticipating a need to intervene. What might have been a month or two glide path to takeover became a precipitous decline after Schumer’s public remarks - and that short-circuited what would have been a more orderly takeover or transfer of the bank operations. Some might say - it would have failed anyway, what’s the difference? The difference is enormous - and the dollar amount difference between doing it the way Schumer did it and the way it would have happened in the absence of Schumer’s remarks is very large. The losses to the FDIC and to employees of the bank were significantly larger as a result.
Repeating successful tactics: John Pierpont Morgan again used rumor and innuendo to create a panic that would change the course of history. The panic of 1907 was triggered by rumors that two major banks were about to become insolvent. Later evidence pointed to the House of Morgan as the source of the rumors. The public, believing the rumors, proceeded to make them come true by staging a run on the banks. The public thus became convinced that the country needed a central banking system to stop future panics, overcoming strong congressional opposition to any bill allowing the nation’s money to be issued by a private central bank controlled by Wall Street; and the Federal Reserve Act was passed in 1913.
Right on the money re IndyMac. I’ll just add that the damage Schumer brought on was not just limited to bigger financial losses to FDIC and the bank, but tremendous public panic of all depositors and shaken confidence in financial system and solvency, resulting in other “runs” on the smaller banks and media headlines and stories. After all, unlike Bear Stearns which was relatively smoothly and orderly turned over to JP Morgan (not “bailed out”), IndyMac was a commercial bank, not investment bank, and affected a large number of ordinary depositors.
It also set in place the later attack, starting in September (”Surprise!”), on Lehman, Merrill Lynch, Morgan Stanley et al, which resulted not only in huge financial losses for shareholders but also complete freezing of loan activity along with huge LIBOR and TED spreads, pretty much killing any business that rely on financing and banking relationships.
Good to hear Rush (and others) starting to get a clue. It was not just one or two “bad” over-leveraged institutions that were under attack, it was (and still is, to an extent) a threat to the entire financial system and economy of US and consequently to the rest of the civilized world.
Belgian government just resigned due to collapse of Fortis (Benelux largest financial depository and insurance institution) and Dexia in September.
http://www.freerepublic.com/focus/news/2152693/posts?page=289#289
(with link to article on Bank of England)
Rush, very interesting.
I like that idea of Madoff causing the Financial Collapse by using ultra shorts, then loosing it all because it spun out of control.
In the process, the country is sunk, a president elected, and the Madoff exposed.
It looks to have been very much well "under control", timed and executed and consequences (crisis and panic) understood and desired, keeping in mind what Rahm Emanuel said. Entire Clinton period was series of manufactured real or made up "crises". "Global Warming" / "climate change" is a manufactured Big Lie crisis. Taking control of political and financial systems through natural or manufactured crisis is trademark of socialists everywhere.
Good to see Rush and other people starting to wake up to just how "manufactured" this real crisis was. They can start here:
Anatomy of Morgan Stanley Panic and Defusing the Credit Default Swap Bomb
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.