General I wish to know your timeframe for this french type revolution - what country and governments you think it will transpire in? In the 20's britain had to get the US to come off gold standard and float and take part in conspiracy - it seems west is prodding china to do similar today and they also have come off fixed exchange and joining the banking cartel. I read that this fixed exchange is a major reason they not hurt so bad in 97 asian financial crisis.
I have watched much congressional deliberation with east and west businessmen excited about such co-opertaion. I already posted how poor in Africa recognize the banks and thier cartels are what is robbing thier citizens of nice life - yet I do not expect a few hundred million poor in Africa to convince east or west government or banks to stop the system - why do you? They may reset debts every so often - but the tower of Babel always seems to get rebuilt fairly quickly. The macro problem the africans talk about is the whole banking soft currency cartel - resetting debts does little to change fundamental evil.
General again this is main focus of derivatives blog guy:
Ever since paper currency was invented in the West in 1691 the informed have used these bubbles to take buying power from every one else. 314 years is a powerful statement of world events. In the end the people in the know take all the money because they make the rules.
The real question you should be asking yourself, do banks really lose buying power of their money when bailouts, hyperinflation, or deflation occurs. If they make all the rules, they always come out on top.
President Jackson understood this boom bust cycle that was used to rob the common man - he even succeeded for a time in disbanding fractional reserve banking - but as Big Helmet said in Spaceballs - evil will always triumph over good - because good is stupid. And less than a generation after Jackson broke up the central bank - we were back to old evils that Jefferson warned about and on central bank type system again - the tower of Babel rebuilt.
Now I read some of the France history written by historian - and I suppose if we had same technology, politics, social, legal, military systems as then poor people would revolt and take rich people down. Did you give me the same courtesy and read some of the soft currency economist papers from modern day policy maker types? www.mosler.org
Derivatives blog guy make the case that back in france of yesteryear they didnt have credit cards, 401K's, mainframe IBM with databases on every person alive, chinese tanks a la tia eminem square - etc etc.
I see many pacified poor people in USA - even after thier family died in hurricanes and gubbment failed them - they are still very pacified. Taking bernanke money and buying oprah line of jewelry and strippers. Oprah still talking about latest hairstyles and not how poor people getting stiffed and we need to stop using US paper and use gold shiny metal instead. When Oprah start talking like you do - then I will believe the common man getting tired of the printing press Bernanke style and the robbing the rich do of them through boom bust cycles and soft currency economics. Poor people in africa see this - but they cant make difference that poor voters in western countries can.
Derivatives guy makes the point that gubbment, politicians, and bankers of today have CHOICE how they going to STEER the herd - in Japan they had many old people they did not wish to STEAL from and therefore chose thier deflationary policy to HELP thier CITIZENS at the cost of rich phoenix fund types.
This does not seem to be the course the USA is going to take with helicopter bernanke - I do not see bush/clinton types helping the poor people at the cost of the rich and thier banking friends. Mr. Countrywide CEO seems to agree with me:
hotboards.com
In truth, of course, graduates of less-than-elite colleges are well represented at many large financial institutions. At Wells Fargo, the big San Francisco-based bank, for instance, Richard M. Kovacevich, chief executive and a Stanford man, in August named as his No. 2 and apparent successor John G. Stumpf, who has an accounting degree from St. Cloud State University in Minnesota.
What sets Countrywide apart is the us-versus-them feeling that Mr. Mozilo draws from his life story and his ability to tap into the same feelings in others. Indeed, many of his employees are drawn to what he sells as a free-wheeling meritocracy, and they bring the chips on their shoulders with them.
'I did,' said Brian Hale, who left Wells Fargo four years ago. A Countrywide managing director in charge of retail loan production, he is a graduate of the State University of New York at Plattsburgh. 'In many organizations I compete with, that would disqualify me for the job I have at Countrywide,' Mr. Hale said of his schooling. True or not, it motivates him.
'The key people I depend upon - that chip is so ingrained,' Mr. Mozilo said. 'They're sort of my apostles in that regard.'
...While he is sanguine about the stock price, Mr. Mozilo remains volatile about so much else. Particularly irksome are calls by Alan Greenspan, the Federal Reserve chairman, to shrink Fannie Mae and Freddie Mac, the quasi-government institutions that buy huge numbers of mortgages from financial institutions, notably from Countrywide.
'Fannie and Freddie are a threat to his banks,' Mr. Mozilo said of Mr. Greenspan, whose agency regulates big bank holding companies. By buying his mortgages and thus freeing up his capital to solicit even more business, Fannie and Freddie are a big reason Mr. Mozilo has driven Countrywide past the Citigroups and the Wells Fargos to the top of the mortgage heap. 'If it wasn't for them,' he said of Fannie and Freddie, 'Wells knows they'd have us.'
...As the 1980's wore on, the savings and loan crisis cleared away many of Countrywide's bigger rivals. And the rise of Fannie Mae and Freddie Mac allowed Countrywide and others to grow rapidly by selling their loans at a profit and recycling the capital into making new loans. In the refinancing boom of 1993, 'we really came into our own,' Mr. Mozilo said.
When boom turned to bust, ((Jackson rolling in his grave)) Countrywide and others laid off workers. And with the likes of Wells Fargo, Citigroup, General Motors Acceptance and other larger companies piling into the national mortgage market, Countrywide briefly considered a takeover offer from Lloyd's Bank about five years ago. But the buyer backed away, Mr. Mozilo said, punctuating the story with, 'Thank God.'
...The timing was great. Low interest rates led to a huge refinancing boom, which peaked in 2003. Soaring home prices also led consumers to stray in huge numbers from 30-year fixed-rate mortgages to adjustable-rate loans, interest-only loans and, more recently, 'pay-option' loans that allow payments for a period of time that don't even cover the owed interest, resulting in a rising loan balance, or negative amortization. These mortgages tend to be more profitable than old-style loans. Nonprime loans, those made to less-creditworthy borrowers, brought it nearly four times as big a gross profit - 3.64 percent of the loan amount compared with 0.93 percent for prime mortgages - last year.
Now General in previous US depression - loans were for 5 -7 years - towards the end they had to go up to 30 year loans - mortgage insurance industry was created in the 20's and went bust in the 30's - Remember Japan - loans went up to 100 year multi generational loans eh? derivatives blog guy makes the case that today PMI and counter party risk will not be enough to save multiple countries real estate markets deflating. Many say this is why bush and cronys in gubbment pushed through bankruptcy laws - to save the banks at the cost of little guy for the coming storm - you claim little guy will not take this - I see little guy taking it - oprah not mad yet
...That volume of such loans has never been tested in a sharply rising interest-rate environment, a situation feared by some though not yet on the horizon. While Countrywide sells most of its loans, passing the credit risk to others, it had $15 billion worth of pay-option adjustable rate mortgages on its own books at the end of June, and almost one in five of them had experienced negative amortization. If delinquencies on those loans or others rise, Countrywide's ability to sell loans in the future could be damaged. For this reason, Wells Fargo has so far shied away from pay-option mortgages.
Who wants to take bets that at some time in the near future - 5-7 years Wells Fargo owns countrywide and the guy who left wells fargo to be big shot at countrywide find you can only get away from the BEAST for so long?
In the past the founding fathers flee europe to escape oppression - unless we get QUICK on Elroy Jetsons Anti Grav ship and fly to MARS - I don't see how you going to flee the banking system - you say with time it will slowly erode and we will go back to gold - how you can be so ingrained in current fiat money system, soft currency econmics, fractional reserve banking, asia welcoming western overlords cartel structure, and think this makes you look silly. Derivatives guy tried in court multi billion corporate cases and have very good fundamental understanding of what is happening - he give 4 points why what happen in france cannot happen today. I try to find flaw with his arguement - I try to believe Oprah gonna come on the TV one day and say stop using green paper and stop letting rich bankers, politicians, men with guns stop robbing you, I don't see it happening. You see modern day robin hood coming and claim because that is the only way it can happen - but from biblical times we have references in bible of financial oppression - it is part of modern life - and again - the main point:
Ever since paper currency was invented in the West in 1691 the informed have used these bubbles to take buying power from every one else. 314 years is a powerful statement of world events. In the end the people in the know take all the money because they make the rules.
The real question you should be asking yourself, do banks really lose buying power of their money when bailouts, hyperinflation, or deflation occurs. If they make all the rules, they always come out on top.
President Jackson was the only one to try to stop this - Bush today and whatever follows him east or west - are just embracing it more and more. |
