Last Bank Standing

The Wall Street Mega - Crash

Dateline Washington, October 19th ( get it? ) 2010: the Peoples Bank & Trust of America has right now established itself as the only bank of sliver kind in the USA, totally owned and managed by the US House of Representatives. A 2 / 3 majority must now approve all investment banking transactions; your district representative ' s staff reviews individual mortgage applications; and all 401 ( k ), IRA, and remaining employer pension assets have been rolled into the Social Utopia Slush Fund. Unaccompanied federal and report elected officials are exempt from the 45 % all purpose Income Impost. The estimated time to channel new companies public is 4. 5 years; all individual account dividends and matter are paid directly into your IRS " grabber " invoice; CEO ' s salaries are hardly any to 50 % of the amount paid to a first year congressman, and any domination budget shortfalls are fearful from corporate earnings before portion corporate obligations can be dealt with. All employees reap the federal mandated minimum bread, except senior executives who are limited as mentioned considerable. Mean? This is a scenario that could privilege out if Congress ( or the SEC ) does not come to the rescue of the credit markets. You missed your probability to avail stop it, but chances are a fix is on its way. How many more businesses, jobs, and hopes will be killed by this irresponsible Conference? When will the standard blogger recognize that when a corporation fails, we all will suffer? One would think that the informed and enlightened could booty time out from their texting for a little sift and education. Instead, they showboat their power by influencing pronounced imagining numbers and the marshmallow politicians who worship them. As economist Irwin Kellner and I have pointed out, this is no bailout and we are not halfway approaching a recession. Kellner ' s September 28th Market Watch article points out ten major differences between today and then: ( 1 ) In 1929, the DJIA plunged 40 % in two months vs. around 30 % in about a year. ( 2 ) In 1933, the jobless rate was 33 % vs. 6 % today. ( 3 ) The GDP shrank 25 % then, but has increased 6 % instanter. ( 4 ) Consumer prices actually fell 30 % then but haven ' t ever since. ( 5 ) Home prices dropped 30 % then, but only 16 % from the recent bubbly highs. ( 6 ) 40 % of all mortgages were in default then vs. only 4 % now. ( 7 ) 9, 000 banks failed in the 1930s compared with just 25 or so ( bigger and broader based ones ) recently. ( 8 ) The Governmental Reserve reduced the money supply, ( 9 ) raised interest rates, and ( 10 ) raised taxes on foreign imports. Further, Kellner points exterior, we now have automatic stabilizers, deposit insurances, and market trading restrictions as protective elements. Right away ' s Congress however, has never been good at connecting dots, has accomplished naught unbefitting an unpopular president, and is ignoring its role as the primary hep vigor in today ' s problems. This transfusion is considered necessary because: bad laws have buried the values on financial institution stability sheets, and have created coagulate in the credit arteries that keep the financial system alive. Educate yourselves on the Accounting Rule ' s that require institutions to book paying assets at pennies on the dollar. Find out why institutions are shy to loan money to one spare - - - over black, at any rate of diversion - - - strangling the credit markets. Doing nothing is killing jobs, comical companies, and deferring retirements for those who were counting on 401 ( k ) and IRA dollars to provide them with income. Congress, of course has an aged - fashioned pension plan, so it is unaffected by such financial realities. Investigate the passion of lending standards that Assemblage orchestrated over the past few administrations, before blaming the companies that then long credit to numberless speculators and other buyers who falsified application papers. Learn how the SEC was forbidden from regulating the CDOs and other compound - leveraged credit market speculations. Crack are as many culprits outside the corporate executive suite as in it. Engagement is bursting with pride over bringing some of the Rich and A-1 to their knees, and capping some of their obscene compensation arrangements at still shareholder pillaging levels. I ' ve spoken about how these salaries necessitate to be controlled. But the multi - level - mortgage - marketing schemes that Congress encouraged must be unbundled somehow, and a buy over is the tailor-made vehicle. Congress has punished the entire nature with its attack on Wall Street, and both parties are to blame. Representatives of the states listed below voted " no " to the credit transfusion, causing death and destruction that, in bounteous instances, cannot be recouped. We have to substitute them with better pronouncement makers, representatives who can think in financially viable terms when they have to. The number and letter code after the interpret designation indicates the number of representatives and their binge: AL - 1R, AK - 1R, AZ - 4D4R, CA - 15D9R, CO - 2D2R, CT - 1D, FL - 1D13R, GA - 4D7R, HI - 2D, ID - 1R, IL - 4D5R, IN - 3D3R, IA - 1D2R, KS - 1D2R, KY - 2D2R, LA - 2D3R, ME - 1D, MD - 2D1R, MA - 3D, MI - 3D6R, MN - 2D2R, MS - 3D, MO - 2D3R, MT - 1R, NE - 3R, NV - 1D1R, NH - 2D, NJ - 3D4R, NM - 1D1R, NY - 3D1R, NC - 3D5R, OH - 3D7R, OK - 3R, OR - 3D, PA - 3D7R, SC - 1R, SD - 1D, TN - 1D4R, TX - 8D14R, UT - 1D1R, VT - 1D, VA - 1D5R, WA - 1D3R, WV - 1R, WI - 1D2R ( Names clouded, but available from the author. ) On Friday evening, candidates Obama and McCain gave their support to the Capital infusion, but neither bothered to point out why - - - a huge audience was ready to soak up the information. Over the trek, both attended meetings to support the plan and to do support from their respective parties. Is ace enough time left to find a hero?