COMMENTS
Posted,
Monday, October 6, 2008 4:52 pm
The
analysis assisted me in my understanding the intrigues in America electoral
system.
Thanks.
Hon. MAF member Federal House of Rep. Nigeria
Posted,
Tuesday, September 30, 2008 1:00 pm
I enjoyed reading your article (“The Bush
Administration's Banking Rescue Plan”) in Global Research.com. I have attached
an Email that I sent to the Glenn Beck show in New York as well as a friend. I
feel the root cause of this financial mess is unregulated trading in the
derivatives market. Your article seems to back up my thinking.
The strange thing is that most of the political and
economic pundits I have heard in the media do not see the same thing. I
understand that the Quebec government has Bill 77 “The Derivatives
Act” which received royal assent on June 20 2008. This is a time for
Canada to take the lead and put forward a proposal similar to Bill 77 for the
world derivatives market which stands at $500 trillion. I am interested in
reading your thoughts on this subject.
________________________________
Answer by R. T. :
I totally agree with you that derivatives are a time bomb
which is exploding under our very eyes. This is a monster that threatens to
destroy the world economy.
Politicians were bought in order to not regulate this
house-of-cards market and even regulators were pressured to look the other way.
You are right. The Quebec government approved last June
20, 2008, a law regulating derivative activities in order “to foster
honest, fair, efficient and transparent derivatives markets and to protect the
public from unfair, improper or fraudulent practices and market
manipulation.” This is a law that all governments should pass.
In Canada, savings & loans, brokers and many
insurance companies are under provincial juridiction. Only large banks and
large insurance companies fall under federal juridiction. Therefore, the new
law will protect investors by making it harder for sellers of derivative
products to sell such products without placing a guarantee behind them.
In the U.S., sellers of subprime mortgage-backed
securities were allowed to transfer the risk to unaware buyers. This practice
has to be unwound. And that's what the Bush-Paulson plan should have proposed.
[See my article http://www.thenewamericanempire.com/tremblay=1098]
Posted,
Wednesday, October 1, 2008 4:25 pm
What a great article. I was not aware that Canada had a
sub-prime mortgage backed securities problem. My suspicion is that many
Canadians were, and still are, unaware that this problem existed. Thank
goodness the principal players here in Canada saw this coming. I am glad we
have the Internet as a source of information.
Just
thinking off the top of my head. How would a person go about getting your article
to the principal players in the U.S.? Perhaps Michael Hudson who agrees that
the $700 billion bailout will not work (see U.S. Seizes Control of AIG with $85
Billion Bailout - Michael Hudson September 17, 2008) could persuade the
principal U.S. players to take a path such as yours. I understand that about
200 Economists have already voiced their displeasure with the proposed bailout.
Perhaps I am being foolish and naive but surely we have a duty to try.
I think if Sen. Barack Obama reversed his thinking on the
bailout and stated this on National television he would gain the majority
support of the American electorate. From what I am reading the majority of
Americans do not want this bailout to occur. They want sensible regulation in
place and the market to wash out the casino game that is being played on Wall
Street and World Markets.
Dave
Posted,
Monday, September 29, 2008 3:48 pm
Can you please direct me to information on how to protect
my assets in this meltdown? Do any of your books address this subject?
Anne
____________________________
Answer by R. T. :
Although one should always be prudent, the fact that bank
deposits or savings in Savings & Loans banks under $100,000 ($200,000 for
joint accounts) are guaranteed by the FDIC means that this money is secured,
even if the bank closes its doors. The FDIC says it mails checks 48 hours after
a bank bankcrupcy. It has been announced that this ceiling will be increased to
$250,000.
In any case, it is a good general idea to keep some cash
for at least a few weeks of living expenses.
In March 1933, for example, the Roosevelt administration
closed the banks for one full week. I do not anticipate such a drastic event
today.
A well balanced portfolio (cash, as little as possible
debt, bonds, some domestic and foreign stocks, realestate and gold) remains the
best protection against unforeseen events.
Posted,
Monday, September 29, 2008 10:55 pm
I would like to thank you for your articles I read on
Global Research.com.
As a bank worker of an institution that suffered severe
losses due to Lehman Brothers bankruptcy, I am very worried about the present
situation.
Please keep up the non easy job of writing such well done
articles.
I just wished to thank you personally.
Andrea
Posted,
Sunday, September 28, 2008 12:28 pm
There
will be a market crash and the US will go into an economic depression,
regardless of what is done now or anytime in between. Remember that "the
Unites States of America" is a corporation that was bankrupted in the '30s
and since a corporate bankruptcy lasts 70 years, they must be bankrupted again.
Nobody can solve the problem, because the people that are
really in power, the international bankers need this financial terrorism in order to
enable their agenda, which is the North American Union.
________________________
Answer by R. T.:
I do think the financial situation is serious in the U.S.
And, I don't think the Bush-Cheney administration will
solve the problem.
That is why I expect a market crash by mid-October when
third-quarter earnings are published.
Posted,
Sunday, September 28, 2008 7:13 pm
It appears that the same 'Our Crowd' group of mostly
Jewish financers, banking and Investment Houses whose analogues trashed the
Russian economy in the early 90's are now bringing down the united states. The
bailout sets up a financial dictatorship. We the goyum are about to be
seriously looted. No wonder Bush is putting regular army forces on American
streets beginning Oct. 1st. The final chapter for the united states has begun.
Matthew
Posted,
Saturday, September 27, 2008 5:06 pm
American fascists are not interested in solving general
welfare problems, but in exploiting them to their own advantage -- as their
small, myopic minds perceive it.
Thus, as with '9/11', every crisis is seen as an
opportunity to expand fascist power and control -- and material wealth. It's
the fascist version of 'turning lemons into lemonade'.
Thus, unless they 'get it wrong', all Neocon public
policy solutions would be horrible -- but only for the many, the 'people who
don't matter'. But those close to Bush, either patrons or clients with
portfolio, are literally 'making out like bandits'.
Looking ahead, it's nice that Canada has been saved, but
what about 2010? Isn't that the year for full implementation of the SPP and the
'amero'?
It's time to defend your sovereignty, and rethink
becoming the raw materials warehouse for American capital and Mexican labor.
It might be safer for you to ally with your large arctic
neighbor than the overbearing rich guy to the south.
John
Posted,
Saturday, September 27, 2008 5:49 pm
Wasn't the unique part of the Canadian situation that
there was a loophole the banks used so that they didn't have to back the ABCP
they were supposed to back because the failure didn't meet some definition of
"complete" market collapse? If I recall correctly, that's why the world
credit crunch started in Toronto with Coventree freezing.
Another difference is protection of investors. The American
ARS situation seems to be a similar problem to Canadian ABCP, and the NY
Attorney General, etc. forced the issuers to buy back a lot of that paper a
couple of months ago. They used e-mails and so on to assert fraud, while
the judge in Ontario, on the other hand, mostly protected the lenders from
lawsuits. Perhaps that's why so many big institutions in the US seem to
be falling over this month. So is the horse already out of the barn there?
John
__________________
Answer R. T. :
Of course, you are right. The Canadian big banks found a
loophole to shamelessly walk away from the crisis.
While they did salvage their own money market funds, they
did not collaborate with the Crawford Committee.
In the U.S., the situation is much worse because the
banks never guaranteed their toxic paper. Now, a lot of money market funds are
stuck with it and a run on them began ten days ago.
I don't think the Bush-Cheney will solve the problem. I
expect a market crash by mid-October of this year.
Overall,
in the U.S., we have to remember that there is an 18-year housing cycle
from top to top, as far as prices are concerned. The last two tops were in 1987
and 2005. After 2011, housing prices should begin to rise again and they will
slowly catch up with replacement costs. The next top (and bubble) could be in
2022-23, if the cycle holds.
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