it’s happening in every country in the world at the same time. Money is being stuffed into every government issued debt. What does it mean?
I’m not 100% positive, but I think the global banking system is going to collapse within a few days. Banks are trying to not be caught lending to other banks when the end comes – they’re willing to lose 10% over paying for government bonds to avoid losing it all or have the money tied up in bankruptcy.
“I’m not 100% positive, but I think the global banking system is going to collapse within a few days.”
So what exactly does that mean for the average U.S. citizen? A collapse of “free trade” and fewer imported goods? That could be a good thing in the long run. But given our current leadership it’ll likely mean TARP II, international style, with the U.S. trying to prop up everyone until the dollar is completely devalued. Then communist China will be the last man standing.
The immediate problem is the FDIC has no money left to stop bank runs. Bank of America is pathetic shape. What I suspect is going on is TARP without the involvement of the US Treasury – the Fed is loaning money to all the banks with liquidity problems. The Tea Party can’t stop the Fed from creating more and more dollars.
Banks and other folks on the wrong side of interest rate swap contracts are in a world of hurt after the past week. The fact the 30 year rates are plunging 10 to 20 basis points on the yield in a day is unprecedented. The media are fixated on the Dow and missing the big story – in part because they don’t understand it, and in part because the mass TV audience can’t understand it. TV audiences like a villain like on a soap opera – trying to explain cross currency interest rate swap derivatives would have people turning the dial to American Idol or looking for some simple scapegoat. I’m getting really uncomfortable with the right cheerleading for financial collapse in order to blame Obama.
I read in a blog comment (unconfirmed) that the Financial Reform bill included a provision that allows the Fed to print up to $4 trillion in dollars to “save” the banking system
>“I’m not 100% positive, but I think the global banking system is going to collapse within a few days.”
Holy Crap Batman ! The G. D. Riddler just got away!
Well when ‘Flash Dance Mob’ shows up at the FED they will be calling out the Maryland National Guard cause there will be no Marines around.
I heard on the radio news that the Marines are being told to reduce levels across the board, a lot of them will not be allowed to re-up. Completely stupid,we have guys doing two or three or four combat tours. This is crazy, we won’t have a military like the UK dosn’t have one. But I saw on the news , those ‘Locust’ over there in the streets of London & they were ‘Muzzies’ !
There was not a woman to be seen anywhere. Just like Cairo last spring ! Get ready people, Cause when the SNAPS cards run out and no mo money for the ACORN’s and the Locust stationed over here, they will be dancing in the streets of U.S cities
like ‘Kansas City Fagots ‘ !
KC “bundles of sticks” — I’m surprised that the DVD’s of Blazing Saddles haven’t been “corrected” to remove all the “insensitive” speech they contained. Movies like that can not be made in 2011. What a pity.
http://www.youtube.com/watch?v=FAfDDtNRlfQ
I miss when Americans (regardless of ethnicity or national origin) knew who to appreciate each other and laugh at themselves.