FDIC looting local banks to bail out Wall Street Mafia...
I spoke about this a couple of months ago...
Message 25510342
And yesterday Barry Ritholz's Big Picture blog had an article
about how small community banks are literally being systematically
looted to bailout the hyper-leveraged derivitives mafia
from Goldman, and JP Morgan et al.
ritholtz.com
"How the Bailouts Screw Smaller Banks"
By Barry Ritholtz
May 12th, 2009
Front page story of today’s NY Times...
Indeed, as Chris Whalen has so frequently noted, the vast
majority of banks in the United States are Triple A by his
standards.
Its just that these 6,500 banks hold a minority of the total
deposits in the nation, with biggest dozen or so banks sitting
on 65% or so.
Talk about burying the lead: The Times also noted — in the
very last paragraphs — how the big incompetent banks and their
very pricey bailouts are screwing these small healthy banks:
“At DeMotte [State Bank, an 11-branch operation in the
northwest part of Indiana, Bank President] Mr. Goetz is
bracing for a steep increase in a crucial overhead cost:
the bill from the Federal Deposit Insurance Corporation,
which is basically an insurance fund underwritten by banks.
Last year, DeMotte paid $42,000 into the fund. This
year, because of failures in other parts of the country and
particularly among national banks, that sum will rise to
$500,000 or more.
“Isn’t that the American way?” he says, folding his arms.
“Whoever is left standing, whoever was prudent, is always the
one who has to pick up the pieces.”Thus, yet another reason
why these bailouts are so absurd:
They punish the risk averse and reward the irresponsible . . .
UPDATE, May 12, 2009 10:20am
I emailed William Dunkleberg, who is chairman of Liberty
Bell Bank, in Cherry Hill NJ. It has 4 branches, runs the
bank conservatively, (i.e., only makes loans to people who
will pay them back). The FDIC bill more than doubled to
$400k range, basically wiping out profits for this
year.
Bill writes:
“They ask us to build capital, lend more, but steal all
the “material” we would use to do exactly that! And who wants
to buy our shares when we keep reporting virtually no earnings
even tho we grow 30%!! and have no unusual loan problems!
Last year, FDIC also made us (and thousands of others I am
sure) add a few hundred thousand to loan loss reserves. We
wont lose the money, so eventually get it back, but this
clobbers earnings.
Then, adding insult to injury, Ben Bernake takes 500bps off
of prime, with a third of our loans tied to prime. I have to
write letters to our savers saying “because mega banks need
cheap money, I have to cut the rate we pay you on your savings”.
More screwing of the little ones in the economy, little banks,
little savers!
Why do we have to pay for the big bad banks who finance their
assets with 25 cents of domestic deposits on the $1 while we
have to use $1 of domestic deposits and pay insurance on that?
I guess if we could issue debt like the biggies, we’d get a
guarantee but of course small banks can’t economically do
that. We can’t permanently keep a block of free federal funds
on the balance sheet. So, we don’t have that “cheap money” to
boost our profits.
Gave a talk to Haverford Trust people yesterday and several in
attendance were investors in and/or attended little bank board
meetings and report the same hits on profits. bummer!
Source: "We’re Dull, Small Banks Say, but Have Profits"
DAVID SEGAL
May 12, 2009
nytimes.com
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1. The government now owns Fannie & Freddie, which means it
owns 70-75% of the entire US mortgage market.
2. The government owns 2 out of the 3 "Big Three" auto makers
which means it now owns a 35% marketshare of the US auto market.
3. The government owns the worlds largest insurance company AIG.
4. The government owns chunks of the largest 14 banks in America.
5. The government is in the process of taking over the
US healthcare industry.
6. And the final death blow to the US economy is waiting in
the wings in the form of cap & trade carbon taxes, which
will send more US industry and jobs overseas, and add $4,000
per year in additional costs and taxes, to every American household.
7. But, perhaps most unsettling of all, is the rapid "federalization"
of state, county, and local government agencies.
Because tax revenue is collapsing at the state and local
government levels, the Federal government is bailing them
out with your tax dollars.
But those bailouts come with BIG strings attached.
And now State & local governments are finding out their
policies and actions are controlled by the Obama administration.
California is a great example, where the state is mandated
to balance it's budget and wants to make $77 million in
pay cuts to state workers, but if it does so... will lose
$6.8 billion in Federal stimulus money (YOUR TAX money) in
which this administration is using to destroy freedom,
capitalism and common sense, in order to institute socialism.
huffingtonpost.com
Yeah... the "S" word.
The word that has been spoken quietly and in private, is now
being spoken openly and in public.
Larry Kudlow has used it.
Lou Dobbs has used it.
Glenn Beck has used it.
Even stalwart liberal leftist, Keith Olberman has recognized
it... different puppet pitchmen - same puppeteers:
youtube.com
-- Socialism
Too hyperbolic?
Can't happen here?
Just Republican rhetoric?
Well, they've used the same formula for over a hundred years
to institute it. It's always slow and incremental at first,
and that's why the majority of the population does nothing...
they just pull the denial blanket up over their eyes, and
try to convince themselves that it isn't really happening,
or, that it's going to just go away.
Only it is happening.
And it's not going away.
It's like boiling a frog...
It you throw the frog into a pot of boiling water, he'll
immediately jump out in order to save his life. But, if
you put him in a pot of warm water and then slowly bring it
to a boil... he'll slowly be lulled to his own death.
Naomi Wolfe laid out the 10 steps on how socialism has always
been installed.
It's a formula.
It's always worked, and they've never deviated from it.
And any time it's been implemented, socialism, totalitarianism,
and fascism have been the end result.
Every single time - without exception.
And for those who still think this administration is about
CHANGING Bush policies... please review the 10 steps below,
and ask yourself if Obama is reversing them, or solidifying,
and accelerating them?
"The End Of America And The 10 Steps To Fascism"
Message 25605124
1. Invoke a terrifying internal and external enemy.
-- the war on terror.
2. Create a gulag.
-- Gitmo, Guantanamo, CIA rendition camps in Poland, Egypt,
and Pakistan. And FEMA camps for domestic dissidents.
3. Develop a thug caste.
-- Homeland Security and the coming Obama domestic security
force that he said would be "equally as large, and equally
as well funded as the military."
4. Set up an internal surveillance system.
- NSA, FBI data mining & cross referenced data base of all
public and private citizen information from bank records, to
financial transactions, internet searches, emails, telephone
calls and medical records.
5. Harrass citizens groups.
- labeling Tea Party & End The Fed demonstrators as racists,
or potential terrorists. Calling anyone who supports the
US constitution, or a candidate from other than the Democrat,
or Republican parties - as a modern day militia member and
a potential domestic terrorist.
6. Engage in arbitrary detention and release.
-- The Patriot Act.
7. Target key individuals.
-- Ron Paul, or Chuck Baldwin supporters. Returning troops,
gun owners, those supporting the Constitution, criticizing
the Fed, the Banker Bailouts, and those who express public dissent.
8. Control the press.
-- New Hate Speech Bill, Internet censorship, and enemies lists.
9. Dissent equals treason.
-- Hate speech bill and Homeland Security Enemies Lists
singling out criticism of the government, criticism of the
Fed, criticism of the bailout, or stimulus packages, and
support of Ron Paul, the US Constitution, Gun Rights.
10. Suspend the rule of law.
-- The Patriot Act, the Presidential Executive Orders, PD 51,
the shredding of the Constitution, the trampling of contract
law and capitalism...and governmental grabs on everything
from your guns to your water rights.
-----------------------------------------------------------------------------
It's all happening at a rapid rate right before your eyes, but
because YOUR front door hasn't been figuratively, or literally
kicked in yet, you're being lulled into apathy and denial by
the gradually warming water, slowly being brought to a full boil.
What do you think all these enemies lists from Homeland Security are about?
What do you think Homeland Security itself is all about?
The data mining and data basing of all personal information?
The surveillance of all your phone calls, both landline and cell?
The data basing of all of your internet searches, the web
sites you've visited, all of your emails?
All your credit card transactions, your banking records,
your stock accounts, your mutual funds, your 401K holdings,
and your credit report - all accessible to the police state?
All of your private medical records, including your wife
and children's?
Do you really think this flood of bills pouring out of Congress
that eliminates your privacy, that confiscates your rights and
freedom, that has turned from being a War on Terror & radical
Islamic extremism into a War on Freedom - is a coincidence?
Do you think it's a coincidence that now, after the banksters
and corrupt politicians have looted, and bankrupted this
country and mortgaged our childrens future... that now,
they're rapidly building a police state and turning the
guns inward on the people?
Is it a coincidence that government "services" are rapidly
being turned into government "authorities?"
Have you noticed that we no longer have a government that fears
the electorate, but now, an electorate that fears it's government?
A government that that extorts Congress and bum rushes
$800 billion dollar banker bailouts and stimulus bills
bills through Congress without them getting a chance to
even read the bills, or the American people getting a
chance to see the bills?
And now, the Fed refuses to even answer where all the money
went, or how it was spent?
Naomi Wolfe left one thing off of her list.
-- the looting of the National Treasury and the confiscation of
private wealth.
Every socialist, totalitarian, fascist state has looted
both the national treasury and private wealth.
And they've always made sure that the people were not
in a position to resist, to fight back, or to bring to
justice - those responsible.
This weekend I will show you, your future.
It's already scripted.
The police state is being rapidly put in place.
All 10 steps to fascism are complete.
The looting is accelerating and the final steps for wealth
confiscation are now being put in place.
America is bankrupt.
Our debt can never be repaid.
Social Security, medicare, and pension promises can not be,
and will not be delivered.
The list of bankrupt State and local governments is rising
exponentially as tax revenue is collapsing.
Foreigners now recognize all the signs of America's final
collapse. They see the rampant looting by insiders and
politicians, and they are no longer willing to finance
debt that can not, and will not be repaid.
But yet the masses remain apathetic, in denial, and do
nothing about it.
Even after 40% of the private wealth that America had
stored in it's homes, in it's 401K's, in it's mutual
funds and pension plans, has been looted and destroyed.
Even as millions of middle class, working Americans lose
their jobs, their homes, and become the new homeless.
Even as government rapidly encircles them in an oppressive
police state that labels them as enemies of the state if
they dare speak up in protest, or resist.
The majority of America remains in denial, or apathetic,
because the boot of fascism has not yet kicked in their
front door, or stepped on their neck.
But, it will...
You may not feel that you need to speak up for gun rights,
because you are not a gun owner.
And you may not feel that you need to speak up against
the "Hate Crimes" bill, because you do not speak out publicly.
Just keep this in mind...
When the Nazis came for the communists,
I remained silent;
Because I was not a communist.
Then they locked up the social democrats,
I remained silent;
Because I was not a social democrat.
Then they came for the trade unionists,
I did not speak out;
Because I was not a trade unionist.
Then they came for the Jews,
I did not speak out;
Because I was not a Jew.
And finally when they came for me,
there was no one left to speak out.
--------
This weekend I'll show you, your future and a picture
of what lies ahead for America.
It will be your & America's final wakeup call.
SOTB |
