What did the Bush administration do in response?
Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye.
Then, on Wednesday of this week, the unthinkable happened. Carlyle Capital went bankrupt. Who? That's Carlyle as in Carlyle Group. James Baker, Senior Counsel. Notable partners, former and past: , the Bin Laden family and more dictators, potentates, pirates and presidents than you can count. was off 38%, not pleasing to the Gulf sheiks who now control its biggest share blocks.
By Mike Whitney
March 20, 2008
Presently, the banks are hoarding
cash to cover the losses on their mortgage-backed investments and to
shore up their skimpy capital reserves. As a result, consumer
spending is sluggish and GDP is beginning to shrink.
The Fed's cover story is that
this infusion will enable the banks to resume lending to 'get the
economy moving again.'But the banks are using the money to bet
against the dollar. They are borrowing from the Fed at a low interest
rate, and buying foreign euro-denominated bonds yielding a higher
interest rate -- and in the process, making a currency gain as the
euro rises against dollar-denominated assets. The Fed thus is
subsidizing capital flight, exacerbating inflation by making the price
of imports (headed by oil and other raw materials) more expensive.
These commodities are not more expensive to European buyers, but only
to buyers paying in depreciated dollars."
The banksters are "buying foreign euro-denominated bonds" during an
economic crisis in America? Whoa. Now there's an interesting take on
The Fed's strategy has even failed to lower mortgage rates which are
pinned to the 30-year Treasury and which has actually gone up since
Bernanke began slashing rates. This inability to pass on the Fed's
rate cuts to potential mortgage applicants ensures that the housing
meltdown will continue unabated well into 2009 and, perhaps, 2010.
No wonder so many people believe that the
merely an extension of the banking establishment. The Bear bailout