[kj] Latest Blog Post from Youth:

Brendan bq at soundgardener.co.nz
Thu Mar 11 08:54:03 EST 2010


I don't think that's the way it is. There were so many banks hugely
leveraged that there was a risk of a 'bank run' which is where consumer /
lender sentiment gets so grim that a large percentage of folks want to
withdraw their money simultaneously, and fractional reserve being what it is
means banks can't accommodate that. They go belly up overnight because in
that climate interbank lending dries up and they can't borrow enough
short-term to service the witrhdrawals. This is exactly what happened,
regards interbank lending...it completely dried up for a period, and the
govt had to provide it. Hence Lehmans couldn't borrow and no one was
prepared to bail them out (B of A and Barclays were investigating it but
discovered they had such a fucked balance sheet they didn't want anything to
do with it).



The list of troubled banks included those deemed 'too big to fail' - which
is a consequence in part to the Clinton govt reversing the post-Depression
era legislation - Glass Stegal - that was enacted to separate investment and
retail banking. The issue being that investment banks are inherently more
risky / leveraged, so if those funds are combined with Mum and Dad retail
banking deposits and mortgages, the risky part of the market can bring the
entire market down.



So if JPM / Goldmans / B of A / Morgan Stanley / Barclays etc fell over, the
entire banking market, and financial system would have gone tits up. Lehmans
was allowed to fail early on, ostensibly because they were about the most
aggressive and risky bank, with leverage ratios of 60:1 and higher, and the
problem with bailing banks out is that they'll become complacent and if
there's no stick to balance the carrot, the same thing will happen again.
The financial sector refers to it as 'moral hazard' or some such. Closer to
the truth is that the head of Lehmans (Richard Fuld) and the chairman of the
reserve bank didn't get along.



Goldman was converted to a bank holding company virtually overnight so that
it could receive govt (taxpayer) funds. They requested emergency funding
from the Fed. They're trying to say now that they never needed it. Two
possibilities, a) they're lying and they needed it, b) they didn't need it
but profited (immensely) from it anyway.



From: gathering-bounces at misera.net [mailto:gathering-bounces at misera.net] On
Behalf Of nicholas fitzpatrick
Sent: Thursday, 11 March 2010 8:33 PM
To: gathering at misera.net
Subject: Re: [kj] Latest Blog Post from Youth:




>>>>>As I remember it, American taxpayers forked out hundreds of billions to

keep JPMorgan, Goldman, and other big Wall Street banks afloat through most
of 2009. Had we not done so, Dimon, Blankfein, and most other top executives
on Wall Street would not have earned a dime last year.


It's not quite like that, at least as I understand it.



A number of US banks were in severe trouble. A number of them weren't.
However, the US government wanted to mask the ones that were in trouble by
forcing all US banks to take TARP (bail-out money) even if they didn't need
it. This was to maintain confidence overall in the market.



Goldmans and JP Morgan, I believe, were among the ones that didn't need it.
Goldmans lost relatively little in the sub-prime crash and has been very
profitable since. JP Morgan was strong enough to acquire Bear Sterns, albeit
at a low share price. These banks have been quick to point out that they
paid back the TARP promptly.



Correct me if I'm wrong but I think this is the case.





_____

From: folk.devil at hotmail.com
To: gathering at misera.net
Date: Mon, 8 Mar 2010 13:23:21 -0800
Subject: Re: [kj] Latest Blog Post from Youth:

Nice linkage :)


"In the midst of this paralysis, the President was asked about the giant pay
packages of Jamie Dimon, CEO of JP Morgan Chase & Co. ($17 mullion for 2009)
and Lloyd Blankfein, CEO of Goldman Sachs ($9 million). "First of all, I
know both those guys," Obama said. "They're very savvy businessmen. And I,
like most of the American people, don't begrudge people success or wealth.
That's part of the free market system."

Free market system? As I remember it, American taxpayers forked out hundreds
of billions to keep JPMorgan, Goldman, and other big Wall Street banks
afloat through most of 2009. Had we not done so, Dimon, Blankfein, and most
other top executives on Wall Street would not have earned a dime last year.
In fact, some would be out on the street, reather than sitting pretty on the
Street."



Can I have a refund? People really do have short memories...or are just too
dumb to know what actually happened...



http://www.youtube.com/watch?v=fK86BNhjDxI



Now, back to the Bilderbergs....s'all business as usual.


_____

Date: Mon, 8 Mar 2010 13:03:39 -0800
From: saulomar1 at yahoo.com
To: gathering at misera.net
Subject: Re: [kj] Latest Blog Post from Youth:

There are Jerry Garcia and the Grateful Dead(heads),

and there are the Beautiful Dead. Who also need their own flavor of ice
cream.



a joke:

Okay, so there was once a rich guy* who stole from and otherwise managed to
financially break most everyone in the village. When the mayor was asked
what he thought about that, the mayor answers thus, "Yeah; hey, firstly, I
know the guy - and he is smart; shrewd. I am sure the villagers will not
begrudge him his money that he makes; I know I don't. I mean, c'mon, it's
'bizniss.' Wass'amattuh wi' you?" (2nd
<http://readersupportednews.org/opinion/82-economy/992-wall-streets-not-so-f
ree-market> paragraph)



* http://www.youtube.com/watch?v=ZzZIRMXcxRc

(yeah,iluvthisvid)



... ... ... ... ... ...


[looking at the current state of things..]



'Who has the fun..

..is it always a man with a gun...?

Someone must have told him if you work too hard... you can sweat"





_____

From: folk devil <folk.devil at hotmail.com>
To: gathering at misera.net
Sent: Mon, March 8, 2010 11:37:14 AM
Subject: Re: [kj] Latest Blog Post from Youth:

Revolt?

If you can pull them all away from their Oprah and Big Macs...


_____

Date: Mon, 8 Mar 2010 11:35:25 -0800
From: saulomar1 at yahoo.com
To: gathering at misera.net
Subject: Re: [kj] Latest Blog Post from Youth:


> ..that the new American president is every bit the fascist his predecessor

was.



So what can the people do now?




... ... ... ... ... ...


[looking at the current state of things..]



'Who has the fun..

..is it always a man with a gun...?

Someone must have told him if you work too hard... you can sweat"








_____

Hotmail: Free, trusted and rich email service. Get it now.
<http://clk.atdmt.com/GBL/go/201469228/direct/01/>



_____

Hotmail: Free, trusted and rich email service. Get it now.
<http://clk.atdmt.com/GBL/go/201469228/direct/01/>

_____

Hotmail: Powerful Free email with security by Microsoft. Get it now.
<http://clk.atdmt.com/GBL/go/201469230/direct/01/>



This communication may contain information that is confidential and legally
privileged. It is for the exclusive use of the intended recipient(s). If you
are not the intended recipient(s), please note that any form of
distribution, copying or use of this communication or the information within
is strictly prohibited and may be unlawful. If you have received this
communication in error, please return it to the sender, then delete and
destroy any copies of it. The Health Informatics Service disclaims any
liability for action taken reliant on the content of this message. This
communication is from the Health Informatics Service serving Barnet Enfield
& Haringey Health Communities.



This communication may contain information that is confidential and legally
privileged. It is for the exclusive use of the intended recipient(s). If you
are not the intended recipient(s), please note that any form of
distribution, copying or use of this communication or the information within
is strictly prohibited and may be unlawful. If you have received this
communication in error, please return it to the sender, then delete and
destroy any copies of it. The Health Informatics Service disclaims any
liability for action taken reliant on the content of this message. This
communication is from the Health Informatics Service serving Barnet Enfield
& Haringey Health Communities.



_____

Do you have a story that started on Hotmail? Tell us
<http://clk.atdmt.com/UKM/go/195013117/direct/01/> now

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://four.pairlist.net/pipermail/gathering/attachments/20100312/cabffbd0/attachment.html>


More information about the Gathering mailing list