America Versus the Financial Elite

The people don’t want it (see this poll showing that only 28% support the bailout; and see this).

Most economists don’t want it (see this and this).

Many congress people don’t want it (see here and here).

So who wants the bailout?

The only people who want it are the big money boys, the ultra elite, including the Wall Street fat cats and Fed who got us into this mess, and their counterparts abroad who would also be bailed out (see this and this).

It is literally America versus the financial elite.

Posted by George Washington
Monday, September 22, 2008

Source: George Washington’s Blog

Crude Oil Has Biggest Gain Ever as Dollar Drops Against Euro


Traders work in the crude oil options pit on the floor of the New York Mercantile Exchange in New York, on Sept. 22, 2008. Photographer: Jin Lee/Bloomberg News

Sept. 22 (Bloomberg) — Crude oil climbed more than $25 a barrel, the biggest gain ever, as the dollar weakened the most against the euro since January 2001, boosting the appeal of commodities as a hedge.

The October contract, which expires today, rose almost $12 more than the contract for November delivery, as traders rushed to close positions. Oil, gold, corn and other commodities climbed as the dollar dropped on concern that a U.S. proposal to buy $700 billion of troubled assets from financial firms will deepen the budget deficit.

Read moreCrude Oil Has Biggest Gain Ever as Dollar Drops Against Euro

China toxic milk sickens 53,000 as scare spreads

BEIJING (AFP) – China’s tainted milk scandal spiralled into uncharted territory Monday with the government announcing that up to 53,000 children had been sickened and its top product-quality inspector sacked.

In a dramatic update of previous figures, the health ministry said a total of 52,857 children were taken to hospital after drinking milk thought to have been contaminated by the industrial chemical melamine.

Most had “basically recovered” after developing kidney stones, the main symptom of drinking the tainted milk, but 12,892 of them remained in hospital, a health ministry official told AFP.

Read moreChina toxic milk sickens 53,000 as scare spreads

Dollar May Get `Crushed’ as Traders Weigh Up Bailout


U.S. one dollar bills are displayed for a photograph in New York, April 15, 2008. Photographer: Daniel Acker/Bloomberg News

Sept. 22 (Bloomberg) — Treasury Secretary Henry Paulson‘s plan to end the rout in U.S. financial markets may derail the dollar’s three-month rally as investors weigh the costs of the rescue.

The combination of spending $700 billion on soured mortgage-related assets and providing $400 billion to guarantee money-market mutual funds will boost U.S. borrowing as much as $1 trillion, according to Barclays Capital interest-rate strategist Michael Pond in New York. While the rescue may restore investor confidence to battered financial markets, traders will again focus on the twin budget and current-account deficits and negative real U.S. interest rates.

``As we get to the other side of this, the dollar will get crushed,” said John Taylor, chairman of New York-based International Foreign Exchange Concepts Inc., the world’s biggest currency hedge-fund firm, which manages about $15 billion.

Read moreDollar May Get `Crushed’ as Traders Weigh Up Bailout

Russian warships set sail for manoeuvres near US waters

MOSCOW (AFP) – A fleet of Russian warships led by a massive missile cruiser set sail from their Arctic base on Monday for naval exercises off Venezuela near US waters that have not been seen since the Cold War.

“They left at 10:00 am (0600 GMT). It’s the nuclear-powered guided missile cruiser Peter the Great, the anti-submarine warship Admiral Chebanenko and other accompanying ships,” Russian navy spokesman Igor Dygalo told AFP.

Dygalo said he could not reveal how many ships were involved in the deployment or when they would arrive. The exercises in the Caribbean Sea are expected to take place in November or December, officials said.

The deployment follows the arrival of two Russian Tu-160 nuclear bombers in Venezuela earlier this month also for exercises, an event that Venezuelan President Hugo Chavez branded a “warning” to the US “empire.”

Read moreRussian warships set sail for manoeuvres near US waters

Goldman Sachs, Morgan Stanley Become Banks, Ending an Era for Wall Street


U.S. flags fly outside the headquarters of Goldman Sachs Group Inc., in New York, Sept. 16, 2008. Photographer: Gino Domenico/Bloomberg News

Sept. 22 (Bloomberg) — The Wall Street that shaped the financial world for two decades ended last night, when Goldman Sachs Group Inc. and Morgan Stanley concluded there is no future in remaining investment banks now that investors have determined the model is broken.

The Federal Reserve’s approval of their bid to become banks ends the ascendancy of the securities firms, 75 years after Congress separated them from deposit-taking lenders, and caps weeks of chaos that sent Lehman Brothers Holdings Inc. into bankruptcy and led to the rushed sale of Merrill Lynch & Co. to Bank of America Corp.

“The decision marks the end of Wall Street as we have known it,” said William Isaac, a former chairman of the Federal Deposit Insurance Corp. “It’s too bad.”

Goldman, whose alumni include Henry Paulson, the Treasury secretary presiding over a $700 billion bank bailout, and Morgan Stanley, a product of the 1933 Glass-Steagall Act that cleaved investment and commercial banks, insisted they didn’t need to change course, even as their shares plunged and their borrowing costs soared last week.

Read moreGoldman Sachs, Morgan Stanley Become Banks, Ending an Era for Wall Street

The Bailout Is NOT Limited to $700 Billion, Paulson Could Spend UNLIMITED Taxpayer Money

Most people think that the proposed bailout will cost $700 billion. In fact, it is not limited to $700 big ones, and will probably go much higher.

Specifically, Paulson’s draft bailout plans says:

“The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time.”

That means that Paulson could buy a couple hundred billion worth of assets one day, sell them, and then the next day buy another couple hundred billion, and so on.

The maximum price tag?

There is no maximum. Paulson could literally spend unlimited taxpayer monies. And remember that Paulson has already broadened the proposal to include the purchase of non mortgage-related assets.

Read moreThe Bailout Is NOT Limited to $700 Billion, Paulson Could Spend UNLIMITED Taxpayer Money

Safe Haven

1. Problem: The elite created the problem.

2. Reaction: The elite made sure through corporate media that people will react a certain way. “We need to do something!”

3. Solution: The elite offers the “only” solution, which is “to safe” Wall Street’s elite who created the problem in the first place, relieving the major banks and investment firms of their mountainous rotten assets and let the taxpayers pay for it.

The much bigger problem is that the derivatives market is unwinding and that problem is to big to bail-out:
According to the International Swaps and Derivatives Association, $62 trillion is the notional value of credit default swaps (CDS) out there, somewhere, in the market.

And so in the not too distant future the Dollar and the U.S. will most probably fail.

I would buy gold and silver and stock up food and water (etc.) to prepare myself for such an event.

Silver might be even the better investment. I see it not so much as an investment to make money, but rather as an investment to protect my future.

Sept. 22, 2008
The Infinite Unknown

Treasury Seeks Asset-Buying Power Unchecked by Courts!

Sept. 21 (Bloomberg) — The Bush administration sought unchecked power from Congress to buy $700 billion in bad mortgage investments from financial companies in what would be an unprecedented government intrusion into the markets.

Through his plan, Treasury Secretary Henry Paulson aims to avert a credit freeze that would bring the financial system and the world’s largest economy to a standstill. The bill would prevent courts from reviewing actions taken under its authority.

“He’s asking for a huge amount of power,” said Nouriel Roubini, an economist at New York University. “He’s saying, `Trust me, I’m going to do it right if you give me absolute control.’ This is not a monarchy.”

Read moreTreasury Seeks Asset-Buying Power Unchecked by Courts!

Top 8 Large Hadron Collider Videos

The Large Hadron Collider has become fodder for tons of viral videos. Some are hilarious, others are informative, and the best are somewhere in between. Here are our favorites:

8. CERN Explained in 3 Minutes
A great introduction to the whole European Center for Nuclear Research, not just its highest profile project.

Read moreTop 8 Large Hadron Collider Videos