Jim Quinn – “The Mugging of America”

http://www.lewrockwell.com/orig9/quinn8.html

The Mugging of America

Jim Quinn | September 23, 2008

On Wednesday afternoon Harry Reid, Democratic Senate Majority Leader, spoke the first truthful words from a politician during this entire crisis:

“No one knows what to do. We are in new territory here. This is a different game.”

I respect him for this comment. We have been listening to Hank Paulson tell us that our banking system was sound for over a year. He was the CEO of Goldman Sachs. He knew the extreme risk taking that was going on. He was lying to the American public. Today, he is being hailed as a hero in saving our country. We should be very careful in declaring men such as Paulson a hero. Union Colonel Joshua Chamberlin, who led his men in a charge down Little Round Top at the Battle of Gettysburg and saved the Union army, is a hero. Hank Paulson, has committed our future generations to trillions in obligations for the sins of his buddies on Wall Street. I know many heroes, and Hank Paulson is no hero.

Andrew Fisher – “Top Economist Mishkin: Worse Than the Depression”

http://www.cnbc.com/id/26850473

Top Economist Mishkin: Worse Than the Depression

Andrew Fisher | September 23, 2008

Economics scholar and former Federal Reserve Governor Frederic Mishkin says the shock that continues to rip through the nation’s economy is actually worse than what was felt during the Great Depression.

“The difference is, we have people on the ball,” the Columbia University professor told CNBC.

Mishkin said he was impressed by the way his former colleagues at the Fed handled crises.

Dave Lindorff – “The Bailout Will Kill the Dollar”

http://www.counterpunch.org/lindorff09232008.html

The Bailout Will Kill the Dollar

Dave Lindorff | September 23, 2008

What nobody in the corporate media is mentioning amid all the blather about the $700-billion Paulson bailout proposal is the impact it will have on the US dollar.

We are told that this huge gift to the financial sector—the assumption, at top dollar, of all the bad debt they’ve piled up–will be at taxpayer expense, but that’s only the half of it. (Really only the quarter of it because since the US government is technically bankrupt already, spending more than it takes in each year, all that money will be borrowed, and will be added to the national debt, meaning that just as the real cost of the $500-billion Iraq War is closer to $2 trillion, the real cost of the $700 billion bailout will be more like $1.5-2.5 trillion.)

But besides the direct bill handed to taxpayers for this gigantic con, there is the fact that adding that much to the national debt is also going to drive the dollar down precipitously against foreign currencies. We’re already seeing that happen, even while they’re just talking about the bailout. The dollar is falling against all major currencies—the Euro, the Yen, the Renminbi and the British pound. And it will continue to fall as the details of the bailout come out.

Paul Singer, Jennifer Yachnin and Casey Hynes – “The 50 Richest Members of Congress”

http://www.rollcall.com/features/Guide-to-Congress_2008/guide/28506-1.html?type=printer_friendly

The 50 Richest Members of Congress

Paul Singer, Jennifer Yachnin and Casey Hynes | September 22, 2008

Everything that you are about to read might be wrong.

Roll Call’s annual attempt to rank the riches of Members of Congress is hampered by one fundamental flaw: It is based on the lawmakers’ financial disclosure forms, which are extraordinarily unreliable sources of information.

The disclosure rules allow Members to report assets in broad categories, so there is no way to tell the difference between a $20 million investment and a $5 million investment. The top category on the Members’ forms is “over $50 million,” so it is impossible to accurately account for anything worth more than that — like a professional sports team, for example. There is also a gaping loophole for assets owned by the Members’ spouse or dependent children; anything worth more than $1 million in value can be reported as “over $1 million.” There is no way to tell whether that is $1.2 million or $1.2 billion.

Jason Linkins – “Dirty Secret Of The Bailout: Thirty-Two Words That None Dare Utter”

http://www.huffingtonpost.com/2008/09/22/dirty-secret-of-the-bailo_n_128294.html

Dirty Secret Of The Bailout: Thirty-Two Words That None Dare Utter

Jason Linkins | September 22, 2008

A critical – and radical – component of the bailout package proposed by the Bush administration has thus far failed to garner the serious attention of anyone in the press. Section 8 (which ironically reminds one of the popular name of the portion of the 1937 Housing Act that paved the way for subsidized affordable housing ) of this legislation is just a single sentence of thirty-two words, but it represents a significant consolidation of power and an abdication of oversight authority that’s so flat-out astounding that it ought to set one’s hair on fire. It reads, in its entirety:

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

In short, the so-called “mother of all bailouts,” which will transfer $700 billion taxpayer dollars to purchase the distressed assets of several failed financial institutions, will be conducted in a manner unchallengeable by courts and ungovernable by the People’s duly sworn representatives. All decision-making power will be consolidated into the Executive Branch – who, we remind you, will have the incentive to act upon this privilege as quickly as possible, before they leave office. The measure will run up the budget deficit by a significant amount, with no guarantee of recouping the outlay, and no fundamental means of holding those who fail to do so accountable.

David Goldman – “Mad as hell – taxpayers lash out”

http://money.cnn.com/2008/09/21/news/economy/readers_on_bailout/?cnn=yes

Mad as hell – taxpayers lash out
We asked you what you had to say about the bailout, and we heard you loud and clear: ‘No way!’

David Goldman | September 21, 2008

“NO NO NO. Not just no, but HELL NO,” writes Richard, a reader from Anchorage, Alaska.

“This is robbery pure and simple,” Anna from Denver posted on CNNMoney.com’s TalkBack blog this weekend.

“It’s our money! Let these companies die,” added Claudio from Plainville, Conn.

After President Bush petitioned Congress Saturday for the authority to spend up to $700 billion to to bail out a financial industry on the verge of collapse, he said the high price tag was not only justified, but essential.

Alison Fitzgerald and John Brinsley – “Treasury Seeks Authority to Buy $700 Billion Assets”

http://www.bloomberg.com/apps/news?pid=20601087&sid=a1hr1v2FUeAg

Treasury Seeks Authority to Buy $700 Billion Assets

Alison Fitzgerald and John Brinsley | September 20, 2008

The Bush administration asked Congress for unchecked power to buy $700 billion in bad mortgage investments from U.S. financial companies in what would be an unprecedented government intrusion into the markets.

The plan, designed by Treasury Secretary Henry Paulson, is aimed at averting a credit freeze that would bring the financial system and economic growth to a standstill. The bill would bar courts from reviewing actions taken under its authority.

Bob Chapman – “Half a Trillion Bailout For The Creators of the Market Crisis”

http://www.theinternationalforecaster.com/International_Forecaster_Weekly/Half_a_Trillion_Bailout_For_The_Creators_of_the_Market_Crisis

Half a Trillion Bailout For The Creators of the Market Crisis

Bob Chapman | September 21, 2008

US Mortgage bailout at half a trillion, Loss of confidence means end of credibility in the markets. Phony wars, phony values in real estate will cost all of you, financial companies bought out, power consolidated in financial markets, Gold on the rise, stock markets as volatile as a drunken sailor, why are the markets rallying after the big bailout.

Michael S. Rozeff – “The SEC’s Second-Hand Socialism”

http://www.lewrockwell.com/rozeff/rozeff221.html

The SEC’s Second-Hand Socialism

Michael S. Rozeff | September 20, 2008

Every day brings a new surprise or two from our home-grown financial central planners. Did they study some Soviet theorists? They didn’t have to. They merely had to grow up in the American political, educational, and media system, our democracy being the disguised socialism-communism-fascism-plutocratic-kleptocracy that it is. They merely absorbed their socialism second-hand.

Once in power, which means once placed in the closed circle of power, our commissars act accordingly. People like Paulson and Bernanke and Cox can act in no other way, being the cowards and creatures of the system they are. They cannot withstand the pressures to conform and survive in the circle of power when combined with their own warped understanding.

What is that closed circle? It is the to-and-fro movement of money among: banker-investment banker-central banker-campaign contributor-lobbyist-Congressmen-regulators.

Peter Schiff – “Paulson Commits Trillions of Tax Payer Dollars to the Mother of All Bailouts”

http://www.marketoracle.co.uk/Article6355.html

Paulson Commits Trillions of Tax Payer Dollars to the Mother of All Bailouts

Peter Schiff | September 19, 2008

Best Financial Markets Analysis ArticleJust three days ago, after looking at the prospect of bailing a string of distressed financial institution in the country, the government seemingly drew a line in the sand, and refused to bail out Lehman Brothers. The authorities clearly saw Lehman’s demise as a trial balloon to see how the markets would react if the government stayed on the sidelines. That trial balloon quickly turned into the Hindenburg. Immediately reversing course, the Government has decided to go “all in” and bail out every institution with financial exposure to U.S. mortgages.

Simply put, Americans will not be allowed to visibly suffer losses after the greatest asset bubble in U.S. history. But make no mistake, the losses are real and Americans will pay one way or another.

Eric D. Hovde – “Calling Out the Culprits Who Caused the Crisis”

http://www.washingtonpost.com/wp-dyn/content/article/2008/09/19/AR2008091902808.html

Calling Out the Culprits Who Caused the Crisis

Eric D. Hovde | September 21, 2008

Looking for someone to blame for the shambles in U.S. financial markets? As someone who owns both an investment bank and commercial banks, and also runs a hedge fund, I have sat front and center and watched as this mess unfolded. And in my view, there’s no need to look beyond Wall Street — and the halls of power in Washington. The former has created the nightmare by chasing obscene profits, and the latter have allowed it to spread by not practicing the oversight that is the federal government’s responsibility.

Kurt Nimmo – “Both Sides of the Banker Party Argue Taxes”

http://www.infowars.com/?p=4716

Both Sides of the Banker Party Argue Taxes

Kurt Nimmo | September 20, 2008

Once again, Joe Biden opened his mouth and inserted a foot, this time declaring paying taxes is somehow patriotic. Joe has a caveat, of course — only the “rich” will pay these new taxes. For Joe, the rich make over $250,000.

Joe, let’s talk reality here. $250,000 is not rich. In this day and age, with government and banker imposed inflation, funny money devaluation, and all kinds of taxes already in place, $250,000 is middle class, not rich.

Joe knows this, he also knows this sort of rhetoric will get the ill-educated plebs all worked up, those who make $40,000 or $20,000 per year. Socking it to the “rich” (upper middle class) always works like a charm. Meanwhile, the real rich will avoid taxes, as they always do.

Llewellyn H. Rockwell, Jr. – “Understanding the Crisis”

http://www.lewrockwell.com/rockwell/understanding-the-crisis.html

Understanding the Crisis

Llewellyn H. Rockwell, Jr. | September 20, 2008

What caused this? It is a simple question, and yet answers are all over the map, as you might expect. Here’s mine in two words: fiat money. The word fiat means: out of nothing. Money out of nothing is money that is eventually worth nothing. The possibility of precisely that happening emerged on August 15, 1971. Since Nixon severed the last tie of the dollar to gold, the world’s monetary system has not been restrained by anything physical. We’ve depended on the discretion of central bankers. We can’t trust that, and this crisis shows precisely why.

Of course there are subsidiary factors. The lifting of restrictions on Freddie and Fannie. Subsidized lending. The Fed’s artificially low interest rates. The Community Reinvestment Act. Financial “deregulation.” The war. Bush profligacy. Debt. There is much more besides. But fighting each of these forces individually is like battling down flies at the garbage dump. The core issue is that there is nothing to restrain money creation.

George Washington’s Blog – “We Have DAYS To Stop the $700 Billion Stick-Up (and Fascist Power Grab)”

http://georgewashington2.blogspot.com/2008/09/we-have-days-to-stop-700-billion.html

We Have DAYS To Stop the $700 Billion Stick-Up (and Fascist Power Grab)

George Washington’s Blog | Sunday, Sept 21, 2008

Congress hopes to pass the $700 Billion bailout bill by Friday, according to an article in Bloomberg.

In case you haven’t heard, the bill would not only stick up American taxpayers for an additional $700 billion, but would literally give Paulson and the government fascist powers.

Don’t believe me?

George Washington’s Blog – “The Market is Now Pricing In the Genuine Possibility that the US will Default on Its Debt”

http://georgewashington2.blogspot.com/2008/09/market-is-now-pricing-in-genuine.html

The Market is Now Pricing In the Genuine Possibility that the US will Default on Its Debt

George Washington’s Blog | Sunday, Sept 21, 2008

You’ve heard of “credit default swaps”. They are a type of derivative where one person places a bet that a certain company will go out of business, and another person on the other side of the contract places a bet that the company won’t go out of business (see this and this).

Well, people are now starting to increase their use of credit default swaps to bet that the U.S. will default on its ability to pay on its treasury debt.