The Language of Looting - What "Nationalize the Banks" and the "Free Market" Really Mean ...

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SamLinder's picture
SamLinder
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Joined: Jul 10 2008
Posts: 1499
The Language of Looting - What "Nationalize the Banks" and the "Free Market" Really Mean ...

What "Nationalize the Banks" and the "Free Market" Really Mean in Today's Looking-Glass World

The Language of Looting

By MICHAEL HUDSON

"Banking
shares began to plunge Friday morning after Senator Dodd, the
Connecticut Democrat who is chairman of the banking committee, said in
an interview with Bloomberg Television that he was concerned the
government might end up nationalizing some lenders “at least for a
short time.” Several other prominent policy makers – including Alan
Greenspan, the former chairman of the Federal Reserve, and Senator
Lindsey Graham of South Carolina – have echoed that view recently.”

--Eric Dash, “Growing Worry on Rescue Takes a Toll on Banks,” The New York Times, February 20, 2009

How
is it that Alan  Greenspan, free-market lobbyist for Wall Street,
recently announced that he favored nationalization of America’s banks –
and indeed, mainly the biggest and most powerful? Has the old disciple
of Ayn Rand gone Red in the night? Surely not.

<more>: http://www.counterpunch.org/hudson02232009.html

Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
Re: The Language of Looting - What "Nationalize the Banks" ...

How is it that Alan  Greenspan, free-market lobbyist for Wall Street, recently announced that he favored nationalization of America’s banks – and indeed, mainly the biggest and most powerful? Has the old disciple of Ayn Rand gone Red in the night? Surely not. Alan Greenspan has always operated against the people and in favor of the banks.  Just my gut feeling but I think the big banks are getting ready to blame this entire mess on the federal government that way the finger doesn't get pointed at the people who are really to blame.  The bankers.  If I was a betting man, I would bet that the big banks are about to pull some sort of scheme to consolidate(force out of business) the smaller banks and have less compitition.  If I was a state chartered bank I would imediatly demand that states regulate their state banks to have the state chartered banks create money free of debt, bonding, or taxation, on permanant infastructure, as a means to keep the economy alive and a way to secure their staying in business.  History shows us that the federally chartered banks tried to force all the state chartered banks out of business before, and I'm sure they are preparring to do so again.

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machinehead
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Joined: Mar 18 2008
Posts: 1077
Re: The Language of Looting - What "Nationalize the Banks" ...

The largest black hole of looting is in the 'garbage barge,' AIG.
They have made a complete mess of it. Bloggers are mocking Usgov for
having a 79.9 percent stake ... but no seat on the board, and not a
clue that more losses were coming. Here is Denninger, delivering a
punch in the face for their manifold wickedness --

What else is there to say? The last time we were here it was May of 1997.Ten full years of market gains are gone. Evaporated. Finished.

Confidence is absolutely destroyed. The government, which is an 80%
owner of AIG, failed to warn prior to the company claiming that it will
report a $60 billion loss next week and if it doesn't get more
government money by Monday it will file for bankruptcy.

This aborted a nascent rally off the lows and shoved us to NEW lows - the closing lows.

Folks, this is the government. It is not an "ordinary correction."
It is the intentional hiding of losses and the truth from the American
people along with investors worldwide.

These acts are pure evil; they are premeditated, intentional,
and have destroyed confidence, and unless the government stops this
right now we are going to be seeing the DOW at 3,000 before the end of
the year ...

http://market-ticker.denninger.net/

Here's something to think about. As the economy spirals down and
defaults increase, the payoffs from all the CDS contracts that AIG
foolishly wrote to insure debt become larger and larger. But instead of AIG itself
going bankrupt, the Treasury now subsidizes and guarantees its payments
to the credit shorts. In some cases, these obligations are many times
the size of the outstanding bonds that were shorted.

Effectively, pulling the plug on the economy and letting it spiral
down more produces a fountain of government cash for AIG's
counterparties. What do you think Mr. Market is going to do, given this
incentive? Right, you got it ...

DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: The Language of Looting - What "Nationalize the Banks" ...

The language from the fed and the banksters is always misleading - a double speak that is intended to imply that something good is occurring when it is actually grand theft by any sensible measure.  For example, the "stimulus" package is really a "depression" package that will assure that our nations will fall into a great depression that will make the 1930's look like prosperity.

How can you tell when the fed, the newly anointed treasury czar and our president is lying?  Easy, their lips are moving.

AIG. Nobody Wants to Hear it Anymore 

I think I can speak for a lot of people, maybe most people when I say,
I don't want to hear about AIG's problems anymore.  Their systemic risk
should be eliminated by now.  If it's not then current Secretary of the
Treasury and former President of the New York Federal Reserve, Timothy
Geithner should resign immediately.  This country, through $60 billion
of loans, $40 billion of direct investments and $52 billion of asset
purchases has squared AIG away with regard to causing a collapse of our
banking system.  Mr. Geithner has been involved in the AIG fiasco every
step of the way, including a failure to recognize just how much of a
risk AIG posed to the money center banks and investment banks that his
organization was supposed to be monitoring.  Maybe not regulating but
certainly monitoring.  And if there's more systemic risk then I demand
names of counterparties that will fall if AIG falls.

 

 

 

 

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