Thursday, October 09, 2008

US Government May Take Part Ownership in Banks

On the same day; same time we see this:

October 9, 2008, 3:22 pm
Dow 9,000!
Paul Krugman, Conscience of a Liberal Blog

Stock prices are, however, the least of our worries. The money markets are frozen; the TED spread is 4.14%.

G7 meeting tomorrow, IMF-World Bank over the weekend. Now is the time for major action - an announcement of coordinated capital injections, liquidity measures, and more. If we’ve had nothing except vague assurances by Monday...

We see this.....

- AP writers Joe Bel Bruno and Anne D'Innocenzio in New York, Christopher S. Rugaber in Washington and Pan Pylas in London contributed to this report.


For eight years the Bush administration and Republican rubber-stampers have pulled few punches in systematically drowning U.S. socialism in the bathtub. They've starved our States...only to realize they're all drowning us and future generations with the worst kind of socialism - the looming possibility of State-run banks. The collectivist society the Right has been warning you about seems to have been brought to your door by the Right and the leaders who've paid witch hunt-level lip service to it all these years. Go figure! Talk about creating, whether or not it's come down to being a necessary step, this final proof of no confidence in our banking system! In this, we see the stark revelation that we've been no better than a Banana Republic while corporations were given free reign to pillage innocent and trusting citizens while the financial institutions' pals in government looked the other way.... until it all fell out. Are you sick yet? As economist Paul Craig Roberts has said, the U.S. economy is "rudderless and reeling" due, in major part, to ill-advised financial deregulation.

Excerpt from economist Paul Craig Thomas:

"A country that had intelligent leaders would recognize its dire straits, stop its gratuitous wars, and slash its massive military budget, which exceeds that of the rest of the world combined. But a country whose foreign policy goal is world hegemony will continue on the path to destruction until the rest ... Read Moreof the world ceases to finance its existence.

Most Americans, including the presidential candidates and the media, are unaware that the US government today, now at this minute, is unable to finance its day to day operations and must rely on foreigners to purchase its bonds. The government pays the interest to foreigners by selling more bonds, and when the bonds come due, the government redeems the bonds by selling new bonds. The day the foreigners do not buy is the day the American people and their government are brought to reality.

This is not the financial position of a superpower."

You can hand me all the talking points you'd like about the benefits of this move by U.S. government. I know one inescapable fact: We've lost a lot more than MONEY by our leaders failing to look out for the public's best interest for so long.