Archive for November 2009

Courage

November 28, 2009

One of the bravest acts of all human history…

Americans would do well to remember, and truly honor through their own actions, the great courage and resolve of the men and women who created our republic.

Advertisements

20th Anniversary of the Fall of the Berlin Wall

November 9, 2009

The message for today’s Freedom Movement in America is this – peaceful revolution is possible in modern times. Never give up, never stop spreading the positive message of freedom and liberty.

Germany Wall Anniversary

Germany Wall Anniversary 2

Germany Wall Anniversary 3

Germany Wall Anniversary 5

Germany Wall Anniversary 6

Is There Really an H1N1 Vaccine Shortage?

November 4, 2009

This clip comes directly from a session of the Council on Foreign Relations. The full video and transcript are on the CFR web site.

Conspiracy theory? Or conspiracy fact? You decide.

Bernanke’s Secret Plan To Raise Rates Too Late

November 4, 2009

Business Insider’s Henry Blodgett explains:

Explainer: Bernanke’s Secret Plan To Raise Rates Too Late (3 min):

Why is Ben Bernanke being so slow to start talking about raising rates, much less start raising them?  Because he has a secret plan that he can’t talk about.

What’s Ben’s secret plan?

Intentionally keep rates too low for too long, thus encouraging uncomfortably high inflation.

Why would Ben want that when he keeps talking about the importance of managing inflation?

Two reasons:

  • Faster economic growth, which leads to more jobs, fewer angry constituents, and a Congress that’s happier with Ben Bernanke
  • Faster erosion of the real value of our debts.  Consumers and the government are drowning under a massive debt load.  One way to make paying off this debt easier is to make the dollars it is denominated in worth less.  Bernanke will try to hasten this process as much as possible, taking it right to the point where our creditor China is mad as hell–but not quite to the point where China actually stops lending to us.

Click for video.

Constituents? Happier Congress? But I thought the whole argument against a full audit of the Fed is that it is supposed to be independent of politics. So which is it?

“Consumers and the government are drowning under a massive debt load. One way to make paying off this debt easier is to make the dollars it is denominated in worth less.”

That works for government and the biggest of the TBTF bankers (GS, JPM) because the dollars aren’t really devalued until they are released into the economy at large. By the time they reach the consumer, the prices of everything consumers might buy have already risen in response to the inflated money supply.

CIT Files Bankruptcy

November 1, 2009

mushroom_cloudThis has been a long time coming. CIT became a bank-holding company in December 2008 in order to qualify for a bailout from the Treasury taxpayers.  And what about the $2.3 billion of bailout money CIT received? You weren’t really expecting to ever see that again, were you?

Asian markets are in a tailspin after this announcement. I expect tomorrow will be another blood bath on Wall Street. 

This filing is significant not only because it is the fifth largest US bankruptcy ever, but also because CIT was a major source of financing for small and mid-size businesses. The pain from this collapse is going to spread all up and down Main Street.

Nov. 1 (Bloomberg) — CIT Group Inc., a 101-year-old commercial lender, filed for bankruptcy to cut $10 billion in debt after the credit crunch dried up its funding and a U.S. bailout and debt exchange offer failed.

CIT listed $71 billion in assets and $64.9 billion in debt in a Chapter 11 filing in U.S. Bankruptcy Court in Manhattan. The U.S. Treasury Department said the government probably won’t recover much, if any, of the $2.3 billion in taxpayer money that went to CIT.

The bankruptcy “will allow CIT to continue to provide funding to our small business and middle-market customers,” said Chief Executive Officer Jeffrey Peek in a statement.

CIT, which filed the fifth-largest bankruptcy by assets, said it plans to exit quickly due to support from bondholders, who voted in favor of a so-called prepackaged plan. None of CIT’s operating subsidiaries, including Utah-based CIT Bank, were included in the filing, and operations will proceed as normal, CIT said in a statement.

CIT has $1 billion from investor Carl Icahn to fund operations while it reorganizes. The credit line, to be drawn on until Dec. 31, will be a so-called debtor-in-possession loan. It also expanded its $3 billion credit facility by another $4.5 billion on Oct. 28.

Continue reading