Comments | ontd_political: Paul Kanjorski: USA was 3 hrs away from Economic, Political Collapse in September 2008

saphron_girl in ontd_political

Paul Kanjorski: USA was 3 hrs away from Economic, Political Collapse in September 2008

Feb 10, 2009 18:56

Start watching at the 2:10 mark:

More here.

Allegedly, this was caused by the collapse of the Reserve Primary fund, which was caused by the collapse of Lehman Brothers, etc. Is it bad that I hope this is a case of organized extortion and not the reality of the situation? A financial system this fragile will inevitably collapse.

economy, capitalism, credit, conspiracies, banking

Comments 6

squid_ink February 11 2009, 01:36:51 UTC

the Reserve Primary fund is really just a big ol' money market, it's supposed to be very stable. When confidence was lost in September, it “broke the buck,” namely your money was worth less than what you had put in.

this didn't happen overnight, IndyMac and the collapse of Bear Sterns lead up to it, and with Lehman, that usre didn't help.

I still think the market would not have gone insane, credit markets would not have frozen up to the extent that they had if Lehman had been bailed out. It would have saved alot of money and prevented alot of heartbreak down the line.

it was a really really bad call

BTW many people use money markets as a savings account. Imagine going to the bank and finding out you LOST MONEY overnight in what you thought was your safest asset? Bad news all around :(

morbidoutlook February 11 2009, 01:39:45 UTC

D:

But will we still have the internet?

mindrtist February 11 2009, 02:17:50 UTC

Biggest bank heist in the history of the world!

Skank Paulson's wife (if he's married) should up his life insurance policy.

bord_du_rasoir February 11 2009, 02:59:17 UTC

What I am most concerned about is this:

( ... )

Chuck Todd's question to Obama last night was on point. bord_du_rasoir February 11 2009, 03:00:04 UTC

TODD: In your opening remarks, you talked about that if your plan works the way you want it to work, it's going to increase consumer spending. But isn't consumer spending, or over-spending, how we got into this mess? And if people get money back into their pockets, do you not want them saving it or paying down debt first, before they start spending money into the economy?

OBAMA: Well, first of all, I don't think it's accurate to say that consumer spending got us into this mess. What got us into this mess initially were banks taking exorbitant, wild risks with other people's monies, based on shaky assets. And because of the enormous leverage, where they had $1 worth of assets and they were betting $30 on that $1, what we had was a crisis in the financial system.

That led to a contraction of credit, which in turn meant businesses couldn't make payroll or make inventories, which meant that everybody became uncertain about the future of the economy ( ... )

bord_du_rasoir February 11 2009, 03:16:17 UTC

As of Jan. 2009, credit market debt was $52 trillion relative to $14.6 trillion in GDP. So, it's grown from 350% to 356% in the past 10 months.

“Initially, the Fed’s attempt to inflate was akin to using a garden hose to refill Lake Mead after the Hoover Dam collapsed. Over the past five months the chart shows that the Fed has graduated to a fire hose. But creating just over $2 trillion in the face of a contracting pool of $52 trillion in total credit market debt is just not going to get the job done, and the only thing getting hosed right now is us.”

http://www.whiskeyandgunpowder.com/the-swift-and-violent-rise-of-oil/