Sovereign defaults and global inflation will meet each others.

Their order of arriving has been random earlier in the economic history. This time sovereign defaults comes first.

Let everyone not well connected go bust, then the favored few acquire their assets at pennies on the dollar.

One huge consolidation of wealth and power--the country and its people be damned.

They create money out of thin air, reposses real assets.

I did inhale.

We are giving the cash to help steal what is left. Give the theives Finacial Weapons of 18 wheelers filled with U.S. Treasury Notes

"There are two types of folk music:
quiet folk music and loud folk music.
I play both."

Dave Alvin

Unless the Fed places some restrictions on bailout cash, these banks are doing precisely what is in their own interests:

1. Keep choking the credit markets
2. Drive stock prices down
3. Ask for bailout money from the feds
4. Use it to buy companies at fire-sale prices

I'd do the exact same thing if I were a banker...

I think Numerian had the solution a while back in his "shot of adrenaline" post... Banks that don't start making loans will be nationalized. "Too sick to loan is too sick to live."

That should light a fire under their feet...

--
http://bexhuff.com
Of COURSE you can trust the US Government! Just ask the Indians.

This is what the financiers did previously in the boom-bust cycles in American history, and it's what the Federal Reserve was supposed to avoid. Instead, the Fed creates this huge credit bubble and now bust, and is again taking the side of financiers to profit from crisis, as usual.

"There's nothing new under the sun."

I'm shocked that the banks are too lazy to even set up friendly investing companies, which they finance, for their vulture investing purposes.

"Your brother was your mortgage. But bank manager's brother was in your foreclosure auction"

Set a policy that tells those banks that can lend, that they should be lending, and not hoarding.

Because it is very clear that the problem was not confidence.

the public got this from the get-go. Nocera, Hudson, and Klein have laid it out clearly. There is a lot more going on here than just banking, which is only a smokescreen.

The bailout is a multi-trillion dollar rip-off meant to secure the rule of the oligarchy, impoverish the Treasury, and drive a stake into the heart of US "socialism" (SS, Medicare, Medicaid and other social programs).

This wholesale of transfer of wealth and power has got to be stopped.

Don't expect to Obama to get in the way without a huge outcry. His likely Treasury sec will be either Rubin or Summers, both of whom are at the heart of the problem right along with Phil Gramm.

previous threads with links:
http://agonist.org/20081025/pnc_buys_national_city_with_taxpayers_money#new

http://agonist.org/don/20081026/can_i_have_another_choice_please

ON the other hand, Mish thinks there is no conspiracy involved, just stupidity having unintended consequences.
http://globaleconomicanalysis.blogspot.com/2008/10/ny-times-lending-conspiracy-madness.html

And now there is currency crisis developing on top of it all.
http://globaleconomicanalysis.blogspot.com/2008/10/currency-crisis-meltdown-in-europe.html

I just learned of him when he appeared on WNYC's Leonard Lopate Show last week, with Joseph Stiglitz.

Audio available.

Earlier, Naomi Klein gave a succinct summary of Brown's plan's differences from Paulson/Bernanke's--and said the British banks were trying to get a do over, seeing as how well their American brethren were making out and getting away with things...haven't heard much about that since her comments. Sadly brief interview bcz of pledge week.

Audio and video available.

1, Michael Hudson's site
At the top are links to interviews, articles, speeches, etc.

2. Michael Hudson video BAILOUT: 850 Billion? Try FIVE TRILLION! YouTube (9.45 min)

3. Here's a link to Kucinich's economic speeches, which reflect Hudson's thinking.

4. Naomi Klein interviewed by Rob Kall

Pass it on.

A wealth of links!

nice to see Dennis K. getting some traction on this blog. a man i have admired for many years.

1700: "Abolish slavery!"
1800: Woman's Suffrage!"
2000:"World Peace!"

There's also a wealth of Michael Hudson articles over the last few months in CounterPunch. See link below:

http://www.google.com/search?q=michael+hudson&btnG=Google+Search&domains=http%3A%2F%2Fwww.counterpunch.org&sitesearch=http%3A%2F%2Fwww.counterpunch.org

AP, By Jennifer Loven, October 28

White House tells banks getting federal aid to quit hoarding money and start lending it

WASHINGTON -- An impatient White House prodded banks and other financial companies Tuesday to quit hoarding billions of dollars flowing into their vaults from Washington and start making more loans. Wall Street soared nearly 900 points on bargain-hunting and hopes of a hefty interest rate cut by the Federal Reserve.

[...]

"What we're trying to do is get banks to do what they are supposed to do, which is support the system that we have in America. And banks exist to lend money," White House press secretary Dana Perino said. While there are limits to Washington's power to affect banks' behavior, the White House decided it was time to use its bully pulpit.

"They (regulators) will be watching very closely, and they're working with the banks," Perino said.

[...]

"As these banks and institutions are reinforced and supported with taxpayer funds, they must meet their responsibility to lend, and support the American people and the U.S. economy," Ryan told the annual meeting of the Securities Industry and Financial Markets Association. "It is in a strengthened institution's best financial interest to increase lending once it has received government funding."

Rep. Henry Waxman, D-Calif., chairman of the House Oversight Committee, asked the banks getting the $125 billion to detail what they are paying their executives and employees, including bonuses.

"I question the appropriateness of depleting the capital that taxpayers just injected into the bank through the payment of billions of dollars in bonuses, especially after one of the financial industry's worst years on record," Waxman said.

As you've likely heard, Henry Waxman has sent letters to nine banks demanding that they justify pay and bonuses. The representative from California wrote, "I question the appropriateness of depleting the capital that taxpayers just injected into the banks through the payment of billions of dollars in bonuses, especially after one of the financial industry's worst years on record. Some experts have suggested that a significant percentage of this compensation could come in year-end bonuses and that the size of the bonuses will be significantly enhanced as a result of the infusion of taxpayer funds." Apparently the institutions are to get back to him by November 10 with answers. I have to say, this legitimately frosts my cookies...

eom

that *didn't* give the sense of thrashing about wildly?