Archive for the ‘Red Headlines’ category

Chronicles Of Depression 2.0: #436: HYPERINFLATION!

November 24, 2008

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Bloomberg: Fed Pledges Top $7.4 Trillion to Ease Frozen Credit (Update1)

Nov. 24 (Bloomberg) — The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago.

The unprecedented pledge of funds includes $2.8 trillion already tapped by financial institutions in the biggest response to an economic emergency since the New Deal of the 1930s, according to data compiled by Bloomberg. The commitment dwarfs the only plan approved by lawmakers, the Treasury Department’s $700 billion Troubled Asset Relief Program. Federal Reserve lending last week was 1,900 times the weekly average for the three years before the crisis.

Emphasis added by me.

God Almighty!!!

It gets worse:

“The thing that people don’t understand is it’s not how likely that the exposure becomes a reality, but what if it does?” Issa said. “There’s no transparency to it so who’s to say they’re right?”

The worst financial crisis in two generations has erased $23 trillion, or 38 percent, of the value of the world’s companies and brought down three of the biggest Wall Street firms.

The Dow Jones Industrial Average through Friday is down 38 percent since the beginning of the year and 43 percent from its peak on Oct. 9, 2007. The S&P 500 fell 45 percent from the beginning of the year through Friday and 49 percent from its peak on Oct. 9, 2007. The Nikkei 225 Index has fallen 46 percent from the beginning of the year through Friday and 57 percent from its most recent peak of 18,261.98 on July 9, 2007. Goldman Sachs Group Inc. is down 78 percent, to $53.31, on Friday from its peak of $247.92 on Oct. 31, 2007, and 75 percent this year.

Emphasis added by me.

Twenty-three trillion! Poof! GONE!

Worse still:

The money that’s been pledged is equivalent to $24,000 for every man, woman and child in the country. It’s nine times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office figures. It could pay off more than half the country’s mortgages.

Emphasis added by me.

That $24,000 is on top of the existing debt.

Even more worse:

The commitment of public money is appropriate to the peril, said Ethan Harris, co-head of U.S. economic research at Barclays Capital Inc. and a former economist at the New York Fed. U.S. financial firms have taken writedowns and losses of $666.1 billion since the beginning of 2007, according to Bloomberg data.

Emphasis added by me.

Near three-quarters of a trillion! Poof! GONE!

And yes, even worse:

Bernanke’s Fed is responsible for $4.4 trillion of pledges, or 60 percent of the total commitment of $7.4 trillion, based on data compiled by Bloomberg concerning U.S. bailout steps started a year ago.

Emphasis added by me.

Thank you, Bernanke, for turning us into the next Zimbabwe!

OK, here’s the fatal shot to the head:

Requiring the Fed to disclose loan recipients might set off panic, said David Tobin, principal of New York-based loan-sale consultants and investment bank Mission Capital Advisors LLC.

“If you mark to market today, the banking system is bankrupt,” Tobin said. “So what do you do? You try to keep it going as best you can.”

“Mark to market” means adjusting the value of an asset, such as a mortgage-backed security, to reflect current prices.

Emphasis added by me.

There! It’s been said! The house of cards has collapsed. Economic orthodoxy is over.

What is not being said: This is going to destroy us. Under economic orthodoxy, Bernanke has just set the stage for a lethal hyperinflation crisis next year. That is the consequences of a Central Bank printing massive amounts of funds. There is no escaping that. Nation after nation has suffered this inevitable consequence. We are not immune from it.

And let me remind everyone again: $23 trillion is nothing. There’s a quadrillion total out there. That’s one thousand trillion dollars.

There is now only one way out.

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Blog Notes: No Red Headlines!

October 16, 2008

You would think after yesterday’s disastrous plummet of the stock market, the headlines would be screaming that.

No.

They’ve all gone with last night’s Presidential candidate debate!

Makes the timing rather neat for Wall Street, doesn’t it?

Hey, now they can time the complete crash for Election Day, so the next day’s headlines scream the winner — instead of all of us as the losers!

Red Headlines For October 14, 2008

October 14, 2008

Giving new meaning to the term coined by former Chairman of the Fed Alan Greenspan: Irrational Exuberance …

Two notes:

1) Laissez-faire is dead
2) This won’t work

Red Headlines For September 30, 2008

September 30, 2008

Only two newspaper covers need red banners to point out the financial areas:

The New York Post chooses to kiss the ass of Bloomberg the Public Library Ripper (NYPL is always a favorite target of his budget cuts; he is like the Anti-Carnegie):

The New York Times goes full-page, something I think they last did for 9/11:

Red Headline For September 25, 2008: PM

September 25, 2008

The short version: The Bailout scam has hit a snag. The Republicants apparently have a different view of things. Rumor is this is the doing of McCain. Election politics?

And you all thought they were looking out for us?

Red Headlines For September 25, 2008

September 25, 2008

The Daily News goes stupid on their headline, but I like the fact they use the phrase “teeters on financial abyss.” What the fuck have I been saying for over nine months?

Notice the red in the Newsday headlines. You think I’ve been using hyperbole calling these posts Red Headlines? Before all this is over with, you’ll see a red headline on this paper:

Red Headlines For September 22, 2008

September 22, 2008

The NY dailies were pre-occupied with the final game at Yankee Stadium (let it never be rebuilt!), so some didn’t have finance on the front page.

The New York Daily News interior cover was black and white because the wraparound in color was for Yankee fucking Stadium.

Of particular interest is Drudge Report. This is from this morning, before I left for an appointment:


Drudge composite. Click = big

And then over eight hours later:


Drudge composite. Click = big