In last night's speech to the nation, President George W. Bush spoke from the Hall of Shame of the Presidential Chicken Ranch. He promised to answer the following question:
First, how did our economy reach this point?
Bush: Investment banks such as Bear Stearns and Lehman Brothers found themselves saddled with large amounts of assets they could not sell. They ran out of the money needed to meet their immediate obligations. And they faced imminent collapse.
Recall these firms had access to billions in borrowings from the Federal Reserve. What cratered so badly, that borrowing billions wasn't seen as a viable alternative from their leaders and board members?
Bush: Other banks found themselves in severe financial trouble. These banks began holding on to their money, and lending dried up, and the gears of the American financial system began grinding to a halt. With the situation becoming more precarious by the day,
The Fed pumped $30 billion of liquidity into our economy last week, and lending still dried up? Why did rich banks and Wall Street houses stop loaning to each other? Why didn't they trust each other to make good on their debts. The "coverage" for credit, derivatives known as credit default swaps, soared last week. A year's "insurance" on Morgan Stanley's debt rose to $900,000 for $10 million of their credit. A year ago Goldman Sachs associated swaps went for $100,000 for the same amount of debt.
The government's top economic experts warn that without immediate action by Congress, America could slip into a financial panic, and a distressing scenario would unfold:
The big money boys already panicked, as they faced payday loan rates for their borrowings. They don't pay those kinds of rates, so the credit market froze up. The bailout will buy up Wall Street produced junk debt and their fake insurance of credit default swaps. Since no poor people buy mortgage related securities or $100,000 derivatives, the Bush administration added second liens, student loans, credit cards debt and car loans to what the Treasury will buy.
They need the common debt welcher as a diversion for funneling trillions in taxpayer money to their big money friends. From their words, Lehman Brothers failed because some welfare mother drove her Cadillac (with her big screen TV in the back seat) through the front window of Lehman's Wall Street high rise, before detonating her credit bomb. That's but a ruse for other shenanigans. Today, John McCain and Barack Obama make their pilgrimage to the Corporawhorehouse on Pennsylvania Avenue. Is it 1600 or 1001? The White House or The Carlyle Group's corporate office?
First, how did our economy reach this point?
Bush: Investment banks such as Bear Stearns and Lehman Brothers found themselves saddled with large amounts of assets they could not sell. They ran out of the money needed to meet their immediate obligations. And they faced imminent collapse.
Recall these firms had access to billions in borrowings from the Federal Reserve. What cratered so badly, that borrowing billions wasn't seen as a viable alternative from their leaders and board members?
Bush: Other banks found themselves in severe financial trouble. These banks began holding on to their money, and lending dried up, and the gears of the American financial system began grinding to a halt. With the situation becoming more precarious by the day,
The Fed pumped $30 billion of liquidity into our economy last week, and lending still dried up? Why did rich banks and Wall Street houses stop loaning to each other? Why didn't they trust each other to make good on their debts. The "coverage" for credit, derivatives known as credit default swaps, soared last week. A year's "insurance" on Morgan Stanley's debt rose to $900,000 for $10 million of their credit. A year ago Goldman Sachs associated swaps went for $100,000 for the same amount of debt.
The government's top economic experts warn that without immediate action by Congress, America could slip into a financial panic, and a distressing scenario would unfold:
The big money boys already panicked, as they faced payday loan rates for their borrowings. They don't pay those kinds of rates, so the credit market froze up. The bailout will buy up Wall Street produced junk debt and their fake insurance of credit default swaps. Since no poor people buy mortgage related securities or $100,000 derivatives, the Bush administration added second liens, student loans, credit cards debt and car loans to what the Treasury will buy.
They need the common debt welcher as a diversion for funneling trillions in taxpayer money to their big money friends. From their words, Lehman Brothers failed because some welfare mother drove her Cadillac (with her big screen TV in the back seat) through the front window of Lehman's Wall Street high rise, before detonating her credit bomb. That's but a ruse for other shenanigans. Today, John McCain and Barack Obama make their pilgrimage to the Corporawhorehouse on Pennsylvania Avenue. Is it 1600 or 1001? The White House or The Carlyle Group's corporate office?
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