To: Bill on the Hill who wrote (16394) 3/20/2009 1:59:40 PM From: SliderOnTheBlack 2 Recommendations of 16397
Did anyone hear Bernanke talking about...
- "the mixed message" that some small community banks are receiving from the Fed?
He had to address, and spin that - because small community bankers are finally telling the public what's going on.
I've been pounding the table on this for months, and I wish I could find the words to say it better...
There is no "mixed message" here people.
The Federal banking regulators are in these banks, and they are literally turning off the credit spigot.
Meredith Whitney also confirmed this live on CNBC. She said "50% of all existing, available consumer credit is being cut off."
I wrote a couple of months ago, about a VP I know at a large Regional Bank who told me about this. It was "his words" not mine... that quote: "This is going to drive a stake in the heart of the US economy."
And small community banks are being crushed by the explosion in FDIC fees. I read a story online about a small bank that had to turn down a multi-million dollar cash deposit, because they couldn't afford to pay the new FDIC fee's upfront out of earnings.
The FDIC is also adding a new "emergency fee" to small banks:
"Clearly it's going to pull capital from banks at a time when they need capital," said Keith Leggett, a senior economist at the American Bankers Association. "I think it really requires the FDIC to have the judgment of Solomon here."
From the WSJ article, here's a comment from a former FDIC regulator, who's now a small banker:
" I was there, too as a regulator for the FDIC. Now, I'm a banker - trying to employ people, lend money, pay competitive rates, innovate, etc. Two years ago, we paid under $40,000 in FDIC Insurance premiums. Now, we will pay close to $1 million. -- Mike Murphy"
A $960,000.00 increase in FDIC insurance for a small bank!?!?
Every small bank in America is suffering to some degree by this economic collapse... but, those types of fee increases are taking solid, sound, profitable banks -- and bankrupting them.
...by design.
Small community banks can't access money as cheaply as the "TARP Bailout Banks" and now they are being forced to pay for it via 20-fold increases in FDIC fee's that can bankrupt, or wipe out all, or most of the operating earnings of small sound banks.
...by design.
Only 5-7 major banks currently dominate approx 75% of all mortgage loan origination and consumer credit card lending.
The Government is now consolidating that even further via crushing small community banks by these policies.
Fed Ex just did more job cuts, so did CAT.
Remember Obama saying how this stimulus package would save 20,000 jobs at CAT, and the same day the CEO of CAT had to do a Press Conference and say - no, this would not stop those layoffs?
Now what did the stimulus package really do for CAT?
-- not a damn thing.
All campaign bullshit hype.
And it was never intended to.
Because it's not about jobs, it's about the transfer of America's national wealth and sovereignty to a group of globalist, one world government bankers.
And Nucor's CEO said steel demand - "has just fallen off a cliff."
Unemployment may rise another 50% from present levels over the next 6 months, simultaneous to credit is being shut off to the consumer.
And here's another thing...
Remember how they reformed the US Bankruptcy Act (just before the credit bubble burst)?
One of those provisions allowed credit card lenders to now "retroactively" hike rates, and minimum payments on credit card balances.
The banks are doing this from the bottom up, and these are to customers who have paid as agreed and who are NOT having ANY credit problems.
They are starting now, with the lower credit grades, and people who were paying 18% with a 3% minimum payment, are now being jacked up to 29% or state ursery limits, and minimum payments hiked to 5% of the balance. Again, these people are paying their bills - all of them, and on time.
This is pure profiteering by the banks.
The working middle class can not just close out those accounts, and open a new account with another bank, because the other banks are doing the same thing.
Middle America families who are being hit hardest by the economic collapse, and who need and depend on credit the most - are being squeezed. Literally having their payments raised by $100-$300 per month, which is all pure profit to the banks.
And the banks will start doing this to the upper tier credit customers next. It will start with cuts to existing open credit balances, then rate hikes, then minimum payment increases.
Now, where do you think the US Economy is going?
There is no significant job growth, or infrastructure build out going to come from the "American Recovery & ReInvestment Act."
It will no more lead to reinvestment, and recovery; than the Patriot Act was patriotic.
And most importantly, "they" are done writing Think Tank white papers, done giving speeches, and done planning.
What we are seeing now, is the execution of those policies and plans.
Conspiracy theory has finally become reality, and America now has two choices...
To: Eva who wrote (16474) 3/23/2009 1:36:36 PM From: SliderOnTheBlack 1 Recommendation of 16478
Populist Anger, Diversions, And The End Game...
re:
["Populist anger" is a condescending label pundits use to suggest an irrational, unruly temperament. But what's really going on is deeper and potentially more forceful. It will not be contained with good rhetoric or symbolic gestures."]
The book "None Dare Call It Conspiracy" by Gary Allen spelled this out....
First they ignore it.
Then they ridicule it as "conspiracy theory".
And when they are finally forced to address it, they do so with condenscending sarcasm.
They managed to misdirect and distract the public from the "real heist" of billions of dollars in taxpayer bailout money going out the back door to Goldman Sachs, foreign banks and private hedge funds.
In a game of 3 card monte, they managed to focus the public's attention on millions (for which Chris Dodd already created a loop hole for - at the behest of the Obama administration), while they stole billions.
Now they're looting the earnings of your small community banks with outrageous hikes in FDIC Insurance premiums, to backstop and fund the same bankers we just bailed out, so they can now step back in and buy up assets at pennies on the dollar.
Instead of liquidating and closing down the bad banks with a Resolution Trust redux...and pumping money and liquidity into local community banks, and the remaining sound Money Center Banks to keep the economy moving... and then unwinding, or calling force majure on the derivatives monster...they did the exact opposite.
Now America is finally waking up to the fact that a group of bankster gangsters, bribed and corrupted both our government and the regulatory system, and just looted the national treasury.
And while Obama inherited the economic crisis from Bush, America is finally awakening to the fact, that Obama isn't changing anything as it relates to the continued looting of America. But, is merely "that magnetic personality" that Zbigniew Brzezinski said would be used to lead the sheep to slaughter.
A smiling front man, who told you he would give you back your rights that Bush & Cheney stole from America in the dark of night, under the cover of the Patriot Act, and a War on Terror where the cannons were turned on the people.
He stood at that podium and looked you in the eye and also told you that there would be no more bailout, or stimulus packages "bum rushed" through Congress.
He promised you that all new bailout, or stimulus packages would be posted online for at least five days, so that Congress could debate it, and the American people could have a voice.
Obama promised America one thing, and then did another.
No hope, no change, just the baton being passed from one frontman, lackey pitchman to another.
But even those are mere distractions and diversions to a much grander plan.
It is not by coincidence that these first two bailouts went directly into the pockets of the derivatives mafia, and not into the economy.
Soon America will have to focus on how to pay for all of this, and they will be "all too conveniently" standing by with a ready-made solution for the very problem they created.
And those solutions will include carbon taxes which will further gut America's manufacturing & industrial base, send jobs overseas, and enrich International Bankers.
Also look for the promise of Social Security to be broken, a promise which they never intended to be delivered upon.
...just another lock box they have looted and have no intention of repaying.
And watch for the Pension crisis to continue to unfold.
All the while...
No repeal of Bush's oppressive Patriot Act, or Executive Orders.
No end to torture, or rendition.
No end to warrantless spying on US citizens.
No defense of our borders...just "Constitutional Free Zones" that harass American citizens.
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