The role of central banks: Bail Outs via debasing

Hein-Verbruggen

Myths exploded:
http://www.mises.org/story/1627

1) Cental bankers are independent of each other. FALSE, they act in concert
2) Central bank never intervene in matters of private equity. FALSE Long Term Capital, the and the law of big numbers disproved this
3) Prudent Man doctrine influences central bankers FALSE, they react to market meltdowns as any caged rat would to a flame
4) Central bankers will NOT interfere with bankcruptcies resulting from failed judgment. FALSE, case by case basis exceptions, LTC was bailed out,

Modern central banking policy: Bailout economics, steroids for sick rich patients.

1) 1987 stock market crash fallowed by the Alan Greenspan legacy action
October 19, 1987 Policy statement: "The federal reserve, consistent with its responsibilities as the nation's central banker, affirmed today its readiness to serve as a source of liquidity to support the economic and financial system."
2) LTCM hedge fund was bailed out in October 1998
3) Wall Street equity melt down in 2000
4) Fixed market commercial credit crisis (present bailing underway)
5) CDOs, SIVs, off-shore hedge funds, Big Bank loans to sick hedge funds (underway with open market purchases of junk notes by both ECB and US fed)

'It was merely a question of how you would do it, not if' Big Al.

We're off the Gold standard for a reason. So that central bankers can override currency and debase consumers, in order to subsidize fraud and hedge fund errors of judgment and out-and-out off-shore crimes.

The legacy for all central bankers is to act to debase currency as needed. To be the lender of last resort. Wall Street will NO LONGER trade in CDOs, therefore, central banks must buy them and hold them until maturity/or default. ($5 TRILLION US might get that done, maybe)

Today, junk paper bailouts are needed bigtime, along with rate cuts.

Wurm

Corruption, deregulation, and manipulation. It's all good!





NOT.

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"Bush is the first President to admit to an impeachable offense."

- John Dean, former Counsel to the President (Nixon)

The aim of big corporations is to separate fools from their money all of the time and ordinary folks from their money most of the time. The rest of us must fend for ourselves.

Crankyfeet

So your summation is this statement. I thought your whole post was saying the opposite.

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Originally posted by Frigo's Luggage...

"[Calling him] 'dickcheese' is the insult of a master. Some people work in oil, some people work in clay. He [thoughtforfood] works in profanity. Open your mind and enjoy its beauty."

Crankyfeet

Oh yeah. And all the world's big money insiders know about the dark times ahead, including the strapped out hedge fund managers. That's why they're all madly BUYING US stocks and treasuries at the moment. They're getting ready for the hard times ahead.

So the world's banks are conspiring to deny you the financial crisis you so desire. What Bustards.

How's your property doing in San Francisco? The high end sales are going up and up in my neck of the woods. Then again we don't have people who gave up their day jobs to become "Real Estate Investors/Flippers" overnight.

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Originally posted by Frigo's Luggage...

"[Calling him] 'dickcheese' is the insult of a master. Some people work in oil, some people work in clay. He [thoughtforfood] works in profanity. Open your mind and enjoy its beauty."

Wurm

"Good times coming" my ass.



http://globalresearch.ca/index.php?context=va&aid=6816

Meanwhile, the Kool-Aid Drinkers will keep on as if nothing's amiss.

__________________
"Bush is the first President to admit to an impeachable offense."

- John Dean, former Counsel to the President (Nixon)

The aim of big corporations is to separate fools from their money all of the time and ordinary folks from their money most of the time. The rest of us must fend for ourselves.

Crankyfeet

The market of millions speaks louder than one doomsdayer who is so inept at predicting the market that he has to get a day job as an economic commentarist.

Doomsdayers are a dime a dozen. They've been around since Adam and always manage to attract a fearful ignorant crowd. Just reading a small portion tags it so.

Watch the market closely. It is telling you how the smart money is voting on this issue.....

Sometimes you wonder how others don't see it. It's not a given obviously. It just sways the odds. Hearing all this SELL...SELL...SELL stuff is so reassuring when you are trying to assess the domino risk in this crisis.

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Originally posted by Frigo's Luggage...

"[Calling him] 'dickcheese' is the insult of a master. Some people work in oil, some people work in clay. He [thoughtforfood] works in profanity. Open your mind and enjoy its beauty."

Wurm

Yes, the "smart money" has voted so well lately.

The "doomsdayer's" - many of them - have been predicting the current results for quite some time now, and have proven to be correct.

__________________
"Bush is the first President to admit to an impeachable offense."

- John Dean, former Counsel to the President (Nixon)

The aim of big corporations is to separate fools from their money all of the time and ordinary folks from their money most of the time. The rest of us must fend for ourselves.

thoughtforfood

There is a difference between an economic slowdown and an economic meltdown, and the "doomsdayers" see a world in which Mel Gibson will have a souped up Interceptor to police the mutant hoards. On the other hand, there are many who see this as the inevitable outcome of lose credit, but far from being a colapse. Just as with the dot.com boom/bust, there is a correction going on, but as a whole, the economies of the world are still on the rise, and are still well above being controlled by any one given entity be it the Fed, World Bank, or the local Hooters. Unrealistic panic is the real problem here, and "doomsdayers" are only delaying the positive growth that is and will continue to happen in many markets. Stop buying into the Road Warrior scenario, it is not real. The land and homes associated with this market are not going anywhere, and eventually people will develop safer ways to get back in because there is money to be made.

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If this van is a'rockin, don't come a'knockin

Wurm

As ugly as it often is, I prefer to observe reality...not delude myself with false optimism and cheery minimization.

YMMV.

__________________
"Bush is the first President to admit to an impeachable offense."

- John Dean, former Counsel to the President (Nixon)

The aim of big corporations is to separate fools from their money all of the time and ordinary folks from their money most of the time. The rest of us must fend for ourselves.

thoughtforfood

The reality is the there was an over correction in the housing/mortgage derivatives market because of opinions such as yours. However, getting people to understand that is very difficult. People prefer pessimism because the fall is much shorter if they take one.

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If this van is a'rockin, don't come a'knockin

Crankyfeet

Ahh.....so.....

Wurm = Polyheme.boost = Hemopure = Hein-Verbruggen = Holocaust = Doctor.House = flyer.

Now the penny drops, and all those little mutual back-patting conversations make sense. Now you've opened yourself up a bit because Mr. Wurm has talked a lot more than the other preudonyms you use to spam the threads.

Mmmmm........

Haven't you had fun now on your little alter-ego charade

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Originally posted by Frigo's Luggage...

"[Calling him] 'dickcheese' is the insult of a master. Some people work in oil, some people work in clay. He [thoughtforfood] works in profanity. Open your mind and enjoy its beauty."

Crankyfeet

It pains me to think how much you are suffering in San Francisco. And how much you want the rest of the world to share in your misery.

Keep watching HKEX&Clearing in Asia (stock code # 388 on the HK market). Bought 2001 for HK$7.80. Still holding it at HK$235. It is up from $150 a little over a week ago. Keep watching this space. I'll fill you in on other treasures you may have missed while you went searching for negative karma in the world.

Should I get out of it now . I mean you did warn us some time ago and especially two weeks ago. Luckily I had the sense to stay focussed on fact and not deluded prognostication.

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Originally posted by Frigo's Luggage...

"[Calling him] 'dickcheese' is the insult of a master. Some people work in oil, some people work in clay. He [thoughtforfood] works in profanity. Open your mind and enjoy its beauty."

jhuskey

Wurm, I don't think so. Wrong person and wrong coast but I won't discount your other theories.

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Whenever I can't get excited about riding I just fantasize about someone else's bike.

thoughtforfood

I was so happy to have your inane, psychotic ravings gone. Has anyone ever suggested that you seek help immediately. I don't really care what kind of help either. Writing, psychiatric, substance abuse, economic, someone, anyone, please help him.

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If this van is a'rockin, don't come a'knockin