Bailout: It's On

A grave mistake and a sad day for all of us that this bailout was passed.

http://www.campaignforliberty.com/blog.php?view=1084

> Shares of several [...] companies that should benefit from the bailout -- fell on the news ... go figure

Ooh, figuring, I was always good at that. I figure: good money after bad. Not that US dollars really count as good money these days, of course...

This bailout is taking a handful of aspirin to cure cancer. The market is still down this morning. It senses that the agony of deleverage, reversing the excesses of 30 years and more since Nixon made the dollar into fiat money, will require far more than a second stab at a quick fix.

Sighs of relief will meld into groans of apprehension.

Early in the current spasm of panic, the Fed injected $630bn into the system without any oversight or drip-feeding like the Paulson plan. It vanished like a cup of water in a blast furnace. Why should $700bn sort it?

Read the link "AvensisTom" supplies.

Rep. Ron Paul and the crusaders for a return to sound money, probably based on gold, and the abolition of the secretive, self-serving cartel known as the Federal Reserve have been proved right-- both by the way the crisis blew up and by the irrelevance and corruption of the measures that ignorant, credit-besotted Congressmen have chosen to try to cure it.

Dr Paul said fiat money creation was stoking unnatural booms and could end only one way. If only the Republican Party had adopted as its presidential candidate this honest, fearless, anti-warmongering spokesman for the best of America: for self-reliance, individualism and honest money.

But the system is shot. The globalist businessmen, international financiers and their tame mainstream media and paid-for pols dare not tell the people the truth about how close to bust they are.

The potential liabilities of the US government on welfare programmes such as Social Security and Medicaid make Paulson's remedies for the bankers' ills look like ointment on a graze. In the foreseeable future there will be a $40 trillion deficiency, as the population of the USA explodes and ages and there are more and more poor or pensionable claimants queuing with their hands out.

Basically America is bust; the dollar is propped up by hope and foreign hot money. Dealers sense a malaise they cannot bear to articulate.

The near-decade-long bear market on Wall St. discounts awareness that the torch of world economic leadership is passing to Asia. The 2008 rictus is the first of the death throes.

And THAT won't be fixed for seven hundred billion bucks.

"But that certainly doesn't mean we're out of the woods just yet. Shares of several banks, including Bank of America (NYSE: BAC), JPMorgan Chase (NYSE: JPM), and Goldman Sachs (NYSE: GS) -- companies that should benefit from the bailout -- fell on the news ... go figure"

...perhaps, because they've now lost opportunity to profit from acquisition of organisations that will now longer fail as they would have, had the bail-out not gone through.

It is a dire day in US econonomic history, when you hear comments like those quoted of Buffett too. I recall watching he and Munger answering questions several years back at their AGM's on these very topics that ultimately panned out as they and many of us saw, yet have been powerless to prevent ...and punished for maintaining morals in the face of financial hedonism. The 70's might have been about 'free love', the 'naughties' clearly have been about 'free money' ...until now.

"supasap" because our leaders would not want it that way.. that would be too good a solution to get out of the current mess - and they would lose control of the people/sheep ;) debt is a form of social control .. and they want to keep it that way. A savings based economy would of course be far better and fairer for all.. unfortunately we are rather stuck with what we have got until there is some sort of a revolution of our monetary system.. and therefore system of governance.