Thursday, October 16, 2008

Economics

Okay, I have a theory. I’ve been thinking about the current economic situation. What does the privately-owned, non-taxed, for-profit, Federal Reserve gain by this whole economic situation, besides a larger loan out to the government and the interest they will achieve off of that loan? Obviously, I’m thinking more money to roll in is not their endgame. I was watching Ben Bernanke give a speech on C-Span. He made it clear that he wanted every large bank to be regulated by a board-and guess who is on that board. Yep, the private for-profit company, which is not regulated, audited or taxed, gets to regulate all of the large banks that the US government has helped with their financial package. They get to set rules, approve mergers, approve policy, approve pay and retirement packages for these banks. The Wall Street Journal reported on the meeting that the government held with some of these large banks. “While the program is voluntary, Treasury essentially forced nine major U.S. banks to agree to take $125 billion from the federal government. Treasury will buy $25 billion in preferred stock from Bank of America -- including soon-to-be acquired Merrill Lynch -- as well as from J.P. Morgan and Citigroup; $25 billion from Wells Fargo & Co.; $10 billion from Goldman Sachs Group Inc. and Morgan Stanley; $3 billion from Bank of New York Mellon; and about $2 billion from State Street. The remainder will be available to small and medium-size institutions that apply for an investment.” And “Wells Fargo & Co. Chairman Richard Kovacevich, who attended Monday's meeting at the Treasury, expressed reservations about the plan, insisting that his company wasn't in need of government funding, according to a person briefed on the meeting.”
http://online.wsj.com/article/SB122398468353632299.html So, the large banks, which didn’t need help and had not even gotten into to the sub-prime lending, nor want government money were forced into signing, while the smaller banks, which do need help have to apply. We know that Federal Reserve and the Treasury have created a union, much like that of a domineering husband who controls all the movements of his wife and now this union gets to control the large banks. So, I’ve got to ask what happened that ticked off the Federal Reserve so much that they put this in place? Did one or all of these large banks have the audacity to disagree with the Federal Reserve when it said contract or stop loaning or something else? And then I have to ask what is their plan for the future that they needed the unity of all of these large banks for, but that the large banks would not agree to? Is it the collapse of the dollar and the emergence of the Amero? http://www.fraserinstitute.org/Commerce.Web/publication_details.aspx?pubID=2512, Or do they want something else? Whatever it is they have no pesky huge banks to stand in their way now.

Here is good video about the history behind the Federal Reserve http://video.google.com/videoplay?docid=-515319560256183936.

Okay, I promise to get back to homeschooling and family topics soon. This has just been one of mine and my husbands major areas of study right now, plus it's kind of important.

1 comment:

Avatar said...

Look at the annual reports from the companies that the government is forcing them to sell shares to the government and the Federal Reserve. They have either fudged their books or they really don't need the money. Seems like a nationalizing program or is it something different. http://nomedals.blogspot.com