All I do is stay focused looking straight forward at the world, and beyond. I feel people pulling me down, I feel some pulling me up I can't get stuck. I just keep moving forward, I have places to go.
Showing posts with label Federal Reserve. Show all posts
Showing posts with label Federal Reserve. Show all posts
"It says that we are in a liquidity crisis, credit crunch. All we need is more credit. The federal reserve has already injected a trillion dollars in credit which has not seemed to help a whole lot. Injecting another 600 700 million dollars wont solve the problem....You will guarantee a depression"
Ron Paul
Strong word from one of the peoples representative
Thomas Jefferson, declared, "If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.
This Bailout or RESCUE of the American economy is clearly an example of taxation without representation. It is just not morally wrong but it is goes against one of Americas’ most deeply held ideals. What are the people going to receiving in exchange for the 700 billion dollar tax leveled against the people? We are not receiving anything else more that what has already been budgeted for, though large corporations are receiving money in exchange for debt. The same companies that once back on their feet will profit off of the American people while the future generations of this country pay for the debt Wall Street accumulated. It is not a question if or how they accumulated the debt, it is merely a question of why? And the answer to that question is greed. It was not enough to make a good profit, companies wanted insane profits. One way of accomplishing that is to continually sale debt along with tangible assets for money. As companies continue to due this they are able to tell their investors that though they have sold assets they have also unloaded debt and convinced another person to pay for the debt along with the assets. That is alright due to the fact that I can insure this debt to make sure if it starts devaluing more I can write it off and get real money back from the insurance company. As this process continued the last 12 years in the economy insurance companies continued to take a loss until they stopped insuring wall street debt, and wall street decided to start hiding their debts within their overpaid for assets. The companies that were profitable when insurance was paying out claims were merely manipulating the system and got caught up in their own deception and are looking for a free pass from taking responsibility. The threat that there is no money is preposterous, has anyone looked at JP Morgan’s price lately its down only $0.28 cents from its 52 week high and up $20.48 from a 5 year low. Look it up here is the stock price. So it is clear that the money exists in the market it is only in the hands of a few and they won’t release it unless the American people buy 700 billion dollars in debt and wooden arrows. That is not capitalism that is a monopoly when one institution the Fed can control the market. No, the Fed is not a government institution. It is a private company made up of the biggest banks. Here is the address if you want to go see yourself: 33 Liberty Street New York, NY 10045 United States Founded in 1913 Phone: 212-720-5000 Fax: 212-720-7459 www.ny.frb.org That’s ORG not GOV.
For the politicians’ to merely make this economic crisis, red and blue talking points is dumb and counterproductive. At least when it comes to identifying the problem that caused this crisis, fixing the identified problem and truly rescuing our economy. Now all of them are using this crisis for vote, either to say see I finally listened to what you had to say. See I stopped the bleeding and saved you from us. They are all responsible for the present state of the economy, Republicans and Democrats. Let us not forget at one time in the last decade our government had a 1.4 trillion dollar surplus. Now they say we lost 1 trillion in a day and it’s the fault of the politicians who voted against this ridiculous bill. It’s Dumbo and Ass politics that got us into this problem, and it is going to take common sense to get us out of this problem. It is apparent that they need to listen to the people instead of trying to line their pockets with the money of the people. Stop this Bailout, Stop this Politicking and Save the American People.
Bear Stearns investors cried and cried and finally was able to convince JP Morgan to revise their offer from $2 per share to $10 per share. CNBC reports
"JPMorgan has raised its much-scrutinized bid for Bear Stearns to $10 a share in an effort to appease shareholders unhappy with the fire-sale price set in the deal last week. But its efforts may not be enough." CNBC
The crazy part, investors are crying like it is there right to be fully compensated for investing in a company that has no liquidity to any of their assets. Just the name of Bear Stearns.
"major shareholders including British entrepreneur Joseph Lewis are apparently preparing to challenge the new deal, which hands JP Morgan 39.5 percent of Bear Stearns stock and gives them a virtual lock on getting a majority of shareholders on board to approve the deal. Lewis' position is that if JP Morgan is on the hook for Bear's liabilities under the old deal, shareholders could reject it, and JP Morgan would be forced to raise the bid to more than $10 bucks a share, sources close to major shareholders said." CNBC
I understand that I may, scratch that, I am out of line for saying this to the share holders of Bear Stearns. I would like to cordially say Fuck You, how could you reject money to keep the company afloat. Without JP Morgan, the board is worth nothing. With JP Morgans original bid at least you received 2 million dollars back Mr. Lewis a fraction of your investment, with the revised deal you will receive 10million dollars in JP Morgan Stock for your floundering investment. Hey You win some you lose some. Their investors are only talking shit and whining because they know that the fed bailed them out, they should take what they can and shut up.
Once again this entire arrangement proves the power and liability of words. "Bear Stearns employees are angry with Jamie Dimon, JPMorgan's chief executive, because he stated at an internal meeting that he would not increase the orignal $2 per share bid. Because of this, many Bear employees sold stock at the then-market price of roughly $6. Legal action is a possible avenue.CNBC"
I understand that in normal cases a lawsuit would be warrented. This is anything but normal, to the people that sold it at 2 dollars. Are you stupid? JP Morgan was going to compensate you with their stock in exchange for yours. If you wanted to go ahead and sell your bear stearns stock on the open market, then that is your fault. It is assumed that JP Morgans value will go up with a federally insured loan. Now that the FED invested 30 BILLION, there is no way they are going to let JP Morgan fell. In summarry Bear Stearns Stock Crashed, JP Morgan offered $2 dollars a share in compensation. The inpatient idiots who already lost a shitload of money liquadated their $2 shares, after the Fed announced their loan. In my opionion which doesnt mean much, I dont think they have anyone to blame.
Bear Stearns - The Bear Stearns Companies, Inc. is the parent company of Bear, Stearns & Co. Inc., which was one of the largest global investment banks and securities trading and brokerage firms in the world. The firm's main businesses included capital markets (equities and fixed income), investment banking, wealth management, and prime brokerage clearing services.(Wikipedia) Just a couple weeks ago, the investment banking company was worth $62.69 per share - $100.00 per share for their stock holders. The next couple days would become a pattern the American public is growing to comfortable in seeing. This story has all the makings of a hit movie with lies and deceit and broken lives. Once again the victims are all the hardworking American families just looking for that sure bet. Or a gamble on the advice of you favorite television personality. On February 20th 2008 Bear Stearns Chairman James Cayne declared that he owned 4.79 percent of Bear Stearns in the form(reuters) of 7.01 million shares the equivalent at the time a share was worth about $95 per share. That would be $665,950,000.
On March 10th the president of Bear Stearns advised stockholders that it was such a strong stock.
"Bear Stearns (NYSE:BSC) Cos. late Monday issued a statement denying 'market rumors' about the firm's liquidity. The New York-based financial services firm said 'there is absolutely no truth to the rumors of liquidity problems that circulated today in the market.' 'Bear Stearns' balance sheet, liquidity and capital remain strong,' said Alan Schwartz, president and chief executive. The company's shares closed at $62.50, down 11%."(CNN Money)
On March 11 the genius that is Jim Cramer had some answers for JIM
Dear Jim: Should I be worried about Bear Stearns Bear Stearns Co Inc BSC 4.81 -25.19 -83.97% NYSE [BSC 4.81 -25.19 (-83.97%) ] in terms of liquidity and get my money out of there? --Peter
Cramer says: “No! No! No! Bear Stearns is not in trouble. If anything, they’re more likely to be taken over. Don’t move your money from Bear.”(CNBC Jim Cramer)
On one note, he was right, they were taken over. At 2.00 dollars a share by JP Morgan.
No worries though, how was Cramer supposed to know, its not like the SEC (Not the Football conference) thought anything was wrong. They let Bear Stearns accumulate more debt just a day later.
"On March 12 Bear Stearns purchased 15% the Canadian based securities company Tembec at $15.04."(North Bay Nugget)
That is $225,600,000. They can't be broke, is anyone monitoring these imaginary exchange of money that doesn't exist.
On Friday Bear Sterns admitted that they lied this whole time and need a lot of money, a lot of money, 15 billion dollars worth. That is 9 zeros after the 15, to bail out their board, and screw their investors. Forbes.com reports
BAILOUT: JPMorgan Chase will lend Bear Stearns money for 28 days, with a backup guarantee from the Federal Reserve Bank of New York. No one has disclosed how large the financing is. NO CASH: Bear Stearns (nyse: BSC - news - people ) says it ran into problems within 24 hours amid a spike in demand from people trying to get their cash out of the firm. Earlier in the week Bear denied rampant market speculation that it had cash problems. PLUNGING VALUE: As of midday Friday, Bear Stearns had lost more than $5 billion in market value and was trading at its lowest point in nine and a half years. The company said it hired Lazard (nyse: LAZ - news - people ) to help it explore alternatives.(Forbes.com)
I guess the Federal Reserve felt bad with their assumed made up power that Bear Stearns should get 100% help vs the million of consumers with bad credit should get $600 to help cushion the value homeowners lost in the preceding months. Mind you that this super loan helps the Bear Stearns chairman recover his 600,000,000 million lost since his stock is no longer worth $665,950,000 but a meager $14,020,000. Why doesn't the Fed help consumers, o yeah because their not rich(Bunch of Suckers!).
:( boo fed reserve, get rid of the fed reserve or get really really rich.
If you still feel like listening to the stream of garbage that comes out of the presidents mouth, you can listen to his speech at the New York Economic club. Bush thinks that more tax cuts to rich people is the answer. How do we get out of debt by creating more, war, tax cuts, corporate bailouts? Pisssssssh its not possible, we are going to be broke for a long time.
The Economic Envy of the world, you champion the free market and yet you don't believe in it? This ain't the first time, your track record is looking a lot worst then i remember. How can anyone vote for someone who wants to continue this economic policy. The only reason our economy bounced back, is because we have been using credit to buy everything since the start of your Rule. Just watch the first 5 minutes and you will understand what I am talking about.Stop pissing on me and calling it rain. that is all this speech is.
part 2,blah blah blah blah
Here is a logical assessment I found on the internet.
BSC (Yahoo Finance)