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To: ldo79 who wrote (353217)	1/11/2008 6:25:48 PM
From: Secret_Agent_Man	Read Replies (3) \| Respond to of 436258

BAC buying CFC and JPM buying WM. BAC and JPM are 2 of the original Fed-owner banks. We have always said (at least I have been) that the Fed would use its resources to monetize the massive debt problem this country faces. I can't see any other motive behind these two acquistions. It is inconceivable that CFC or WM could withstand a rigorous marking to market of the assets on their balance sheets and have anything but a signinficantly negative net worth and insolvency. These deals will allow BAC and JPM to absorb the distressed/worthless debt at CFC/WM and avoid the market transparency of big, publicly visible liquidations of the CFC/WM balance sheets, which would give everyone market observed pricing on the leveraged debt vehicles (CDO's, SIV's and other subprime securitized-related assets) that the big Fed-member banks are hiding, and to prevent mark to market pricing of similar distressed assets at these banks, and the subsequent massive balance sheet write-downs, and in some cases lethal, that would be required. The one extraordinarily valuable and significant piece of market information that can be inferred from these Fed-motivated and back-stopped deals is that the banking system is perilously insolvent. The hallmark of the Bernanke-led Fed is contained in his infamous "helicopter" comment, in conjunction with his stated view that the banking problems of the 1930's Depression could have been avoided if the Fed had injected massive amounts of liquidity into the system back then. We are now witnessing the implementation of Bernanke's monetary policy views into reality in many ways, and these two merger deals give us a glimpse into the lengths that Bernanke's Fed will go in order to flood the financial system with "helicopter cash" and to perpetuate the exceedingly opaque and corrupt banking system. The good news for goldbugs is that it means Bernanke-led Fed will continue to implement policies that will drive gold higher than most people can imagine. In "street" parlance, it would be said the Ben Bernanke "has no shame"...Dave in Denver lemetropolecafe.com