On Tue, 11 Mar 2008 15:52:30 -0800, "Jim Insolo"
wrote:
This whole discussion sounds like a bunch of buggy whip makers in 1903
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How about the coffee shop in November 1929?
Huge raids on the federal treasury [i.e. the taxpayers] starts.
See below for the gory details.
To locate your representative and to use their web mail click on
http://www.house.gov/
Be sure to bookmark this and your representative's web-mail site
To locate your senators and to use their web mail click on
http://senate.gov/
Be sure to bookmark this site and your senators' web-mail sites.
Feel free to use any or all of the following email I just sent to
my Senators and Representative. The money you save may be your
own...
============
Not only no -- but HELL NO! -- A THOUSAND TIME NO!!
It is sickening (but expected) to see the same individuals that
vehemently opposed Social Security, Medicare, Food Stamps, and
WIC [Women's, Infant's and Children's] food programs, now first
in line at the Federal money trough. These individuals are also
the ones directly responsible for the financial implosion
currently sweeping the economy, and to a large degree the
elimination of the U.S. Dollar as a reserve currency.
These are the same "masters of the universe" that bitterly
opposed and evaded reasonable regulation such as prudent loan
reserve requirements and accountability efforts such as
Sarbanes-Oxley, which if enforced would have at least contained
if not prevented many of their problems
Bear-Stearns is simply the first in a long, long line of "high
roller" institutions including brokers, banks, private equity
funds, and hedge fund that are insolvent and desperately need
money.
While the bonds and other obligations/guarantees covered by the
"full faith and credit of the United States," must be protected,
there is no logical, moral or ethical reason that the
organizations and individuals responsible for the current debacle
should be rescued to repeat their market manipulation and
speculation activities resulting in yet another disaster.
NONE OF THESE INDIVIDUALS OR INSTITUTIONS SHOULD GET EVEN A
SINGLE DIME OF TAX PAYER FUNDS.
I suggest the following when any of these "tin cup" organizations
enters receivership:
(1) All existing officers and directors should be removed, and
their offices and records are sealed, including emails.
(2) All bank accounts should be frozen, existing signature
authority over checking accounts rescinded, and all company
credit cards revoked.
(3) All company assets such as laptop computers and proprietary
software should be inventoried and secured, and removal must be
prevented.
(4) A bankruptcy administrator with RICO experience should be
appointed to liquidate all operations with-in 180 days, with all
records made available to the appropriate enforcement and
regulatory agencies such as the SEC, FBI, IRS, etc. for possible
criminal prosecution.
(5) All existing employment contracts should be voided, and all
deferred compensation and undistributed bonuses are at least
sequestered.
(6) All executive and director pension plans should be voided,
the assets transferred to the PBGC, and any recipients are paid
by the PBGC according to the established schedule. Any company
paid "trust funds" or annuities benefiting officers or directors
should be sequestered
(7) Compensation or guarantee payments are made from the
"bottom up," that is the small investors and creditors are paid
first.
The news items that caused this email to be sent include:
http://news.yahoo.com/s/ap/20080314/...ZgQp8fSyBhI F
Fed pledges to supply cash
By MARTIN CRUTSINGER, AP Economics Writer
WASHINGTON - The Federal Reserve invoked a rarely used
Depression-era procedure Friday to bolster troubled Bear Stearns
Cos. and said it will provide even more help to combat a serious
credit crisis.
snip
Senior Federal Reserve staffers said the arrangement allows JP
Morgan Chase to borrow from the Fed's discount window and put up
collateral from Bear Stearns to back up the loans. JP Morgan, a
bank, has access to the discount window to obtain direct loans
from the Fed, but Bear Stearns, an investment house, does not.
This type of procedure, Fed officials said, dates back to the
Great Depression of the 1930s but has rarely been used since that
time.
===========
http://news.yahoo.com/s/ap/20080314/...ItkyEeLZGs0NUE
Bear Stearns bailed out by Fed, J. P. Morgan
By STEPHEN BERNARD, AP Business Writer
NEW YORK - Bear Stearns Cos., one of Wall Street's venerable
investment banks, received a bailout Friday by the federal
government and JPMorgan Chase & Co. in a surprise, last-ditch
effort to save the 86-year old institution.
The Federal Reserve responded swiftly to pleas from Bear Stearns
that its coffers had "significantly deteriorated" within a
24-hour period. Central bankers backed an arrangement to bolster
the company, and stood ready to provide extra resources to combat
a credit crisis that now threatens one of America's biggest
financial institutions.
Bear Stearns, the nation's fifth-largest investment bank, made
its fortune dealing in opaque mortgage-backed securities - a
strategy that might be its undoing amid the worst housing slump
in a quarter century. The bank has racked up $2.75 billion in
write-downs since last year, and faced a possible collapse
without some kind of lifeline.
Bear Stearns lost half of its value within 30 minutes of the
market open, before clawing back a bit to be down 41 percent, or
$23.51, at $33.49 by midday. The news rattled investors, pushing
the Dow Jones industrial average down about 150 points.
==========
Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?
Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).