News Anchor Completely Loses It For The Best Possible Reason Ever
” On Wednesday, the Dow hit a brand new record high, and Wall Street celebrated. Since the financial crisis of 2008, stocks have been on an unprecedented run. The top performers in the market have not just made millions of dollars – they have made billions of dollars. Luxury apartments in Manhattan and beachfront homes in the Hamptons are selling for absolutely astronomical prices, and it seems like life in the good parts of New York City is one gigantic endless party these days.
Meanwhile, life is quite good down in Washington D.C. as well. The wealth is spread more evenly, but on average the D.C. region actually has the highest standard of living of any major U.S. city. The reason for this is the obscene growth of the federal government. Over the past couple of decades, the U.S. government has ballooned in size and so have government salaries. During one recent year, the average federal employee living in the Washington D.C. area received total compensation worth more than $126,000.
If we truly did have a free market capitalist system, the entire country would be a land of opportunity and things would be getting better for everybody. Unfortunately, that is not the case at all. The following are 21 facts about “wealthy America” and “poor America” that are hard to believe…
#1 The lowest earning 23,303,064 Americans combined make 36 percent less than the highest earning 2,915 Americans do.
#2 40 percent of all American workers (39.6 percent to be precise) make less than $20,000 a year.
#3 According to the Pew Research Center, the top 7 percent of all U.S. households own 63 percent of all the wealth in the country.
#4 On average, households in the top 7 percent have 24 times as much wealth as households in the bottom 93 percent.
#5 According to numbers that were just released this week, 49.7 million Americans are living in poverty. That is a brand new all-time record high.
#6 In the United States today, the wealthiest one percent of all Americans have a greater net worth than the bottom 90 percent combined.
#8 According to Forbes, the 400 wealthiest Americans have more wealth than the bottom 150 million Americans combined.
#9 The homeownership rate in the United States is at an 18 year low.
#10 The six heirs of Wal-Mart founder Sam Walton have as much wealth as the bottom one-third of all Americans combined.”
This is not about class warfare or breeding resentment or a rant against the rich … This is about a free market system that has been turned on it’s ear by corruption from our leadership and the crony capitalism which they nurture and facilitate with everything they do . We begrudge no one their riches , no one who earned them the honest way at least , but increasingly the rich become so through connections , legislation and graft , leaving the average citizens with one hand tied behind their backs struggling to stay above the rising crony tide that lifts only the connected few’s boats .
The DC Clothesline has the rest of the story .
“ As we approach the 100 year anniversary of the creation of the Federal Reserve, it is absolutely imperative that we get the American people to understand that the Fed is at the very heart of our economic problems. It is a system of money that was created by the bankers and that operates for the benefit of the bankers. The American people like to think that we have a “democratic system”, but there is nothing “democratic” about the Federal Reserve. Unelected, unaccountable central planners from a private central bank run our financial system and manage our economy. There is a reason why financial markets respond with a yawn when Barack Obama says something about the economy, but they swing wildly whenever Federal Reserve Chairman Ben Bernanke opens his mouth. The Federal Reserve has far more power over the U.S. economy than anyone else does by a huge margin. The Fed is the biggest Ponzi scheme in the history of the world, and if the American people truly understood how it really works, they would be screaming for it to be abolished immediately. The following are 25 fast facts about the Federal Reserve that everyone should know…
#1 The greatest period of economic growth in U.S. history was when there was no central bank.
#2 The United States never had a persistent, ongoing problem with inflation until the Federal Reserve was created. In the century before the Federal Reserve was created, the average annual rate of inflation was about half a percent. In the century since the Federal Reserve was created, the average annual rate of inflation has been about 3.5 percent, and it would be even higher than that if the inflation numbers were not being so grossly manipulated.
#3 Even using the official numbers, the value of the U.S. dollar has declined by more than 95 percent since the Federal Reserve was created nearly 100 years ago.
#4 The secret November 1910 gathering at Jekyll Island, Georgia during which the plan for the Federal Reserve was hatched was attended by U.S. Senator Nelson W. Aldrich, Assistant Secretary of the Treasury Department A.P. Andrews and a whole host of representatives from the upper crust of the Wall Street banking establishment.
#5 In 1913, Congress was promised that if the Federal Reserve Act was passed that it would eliminate the business cycle.
#6 The following comes directly from the Fed’s official mission statement: “To provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded.”
#7 It was not an accident that a permanent income tax was also introduced the same year when the Federal Reserve system was established. The whole idea was to transfer wealth from our pockets to the federal government and from the federal government to the bankers.
#8 Within 20 years of the creation of the Federal Reserve, the U.S. economy was plunged into the Great Depression.
#9 If you can believe it, there have been 10 different economic recessions since 1950. The Federal Reserve created the “dotcom bubble”, the Federal Reserve created the “housing bubble” and now it has created the largest bond bubble in the history of the planet.
#10 According to an official government report, the Federal Reserve made 16.1 trillion dollars in secret loans to the big banks during the last financial crisis. The following is a list of loan recipients that was taken directly from page 131 of the report…
Citigroup - $2.513 trillion
Morgan Stanley - $2.041 trillion
Merrill Lynch - $1.949 trillion
Bank of America - $1.344 trillion
Barclays PLC - $868 billion
Bear Sterns - $853 billion
Goldman Sachs - $814 billion
Royal Bank of Scotland - $541 billion
JP Morgan Chase - $391 billion
Deutsche Bank - $354 billion
UBS - $287 billion
Credit Suisse - $262 billion
Lehman Brothers - $183 billion
Bank of Scotland - $181 billion
BNP Paribas - $175 billion
Wells Fargo - $159 billion
Dexia - $159 billion
Wachovia - $142 billion
Dresdner Bank - $135 billion
Societe Generale - $124 billion
“All Other Borrowers” - $2.639 trillion “
” The stocks rallying on good news is normal. Rallying on bad news means it’s climbing the proverbial wall of worry and looking ahead to better days. So what portends when it dives on good news? Run while you can still get out alive. Company news and earnings are always positive at height of the market and everyone thinks this time it’s different.
Such is the case with homebuilder shares. The former high-flying iShares Dow Jones US Home Construction (ITB) and SPDR S&P Homebuilders (XHB) led the losers list Thursday, collapsing 3.37% and 1.39% while the benchmark SPDR S&P 500 ETF (SPY) ticked higher 0.25%.
Shares caved in even though D.R. Horton (DHI), MI Homes (MHO), Meritage Homes(MTH) and Ryland (RYL) all eclipsed Wall Street earnings expectations when they reported Wednesday and Thursday. Only PulteGroup (PHM) missed views although earnings doubled and sales climbed a notable 20% year over year.”
” The issue of size became important in 1984, when the government bailed out Continental Illinois National Bank & Trust (“Continental”), the seventh largest bank at the time. This bailout occurred because of concerns about systemic risk due to the bank’s size. The FDIC infused $1 billion in new capital into the Continental Illinois Corporation, the bank’s holding company, in exchange for preferred stock convertible to 80 percent of the equity. These funds were then downstreamed to Continental as equity capital to recapitalize the bank. When the government bailed out Continental, Stewart B. McKinney, a Connecticut congressman, declared that the government had created a new class of banks, those too big to fail (TBTF).2 Ever since this bailout, there has been a belief that certain banks or bank holding companies are TBTF, which we call the “TBTF problem.”
This belief that some banks are TBTF was behind the regulatory response to the financial crisis of 2007–2009, when the government bailed out the biggest banks in the country. Many individuals consider the biggest banks to have largely caused the crisis, and this belief has focused far greater attention on the TBTF problem. Indeed, the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) of July 2010 created a new federal receivership process pursuant to which the FDIC may serve as the receiver for big banks whose failure poses a significant risk to the financial stability of the United States. The FDIC’s new authority is intended to eliminate the TBTF problem once and for all.
This paper looks at the historical treatment of troubled banks by the FDIC. It examines how the FDIC resolves troubled banks and the sources of funds available to it in the event resolutions are costly. This examination focuses on the treatment of big versus small troubled banks to assess the importance of the TBTF issue. Given the enormous costs involved in bailing out the biggest banks during the recent financial crisis, we discuss the FDIC’s new receivership process to handle troubled big banks. We then assess whether this process will indeed eliminate the problem of large bank failures.”
” I’ve read a lot of doom-and-gloom analysis from financial experts over the last couple of years, but this one by former Reagan OMB Director David Stockman takes first prize for scaring the holy living beejeeses out of me.
A few highlights:
” THE state-wreck ahead is a far cry from the “Great Moderation” proclaimed in 2004 by Mr. Bernanke, who predicted that prosperity would be everlasting because the Fed had tamed the business cycle and, as late as March 2007, testified that the impact of the subprime meltdown “seems likely to be contained.” Instead of moderation, what’s at hand is a Great Deformation, arising from a rogue central bank that has abetted the Wall Street casino, crucified savers on a cross of zero interest rates and fueled a global commodity bubble that erodes Main Street living standards through rising food and energy prices — a form of inflation that the Fed fecklessly disregards in calculating inflation.
These policies have brought America to an end-stage metastasis. The way out would be so radical it can’t happen. It would necessitate a sweeping divorce of the state and the market economy. It would require a renunciation of crony capitalism and its first cousin: Keynesian economics in all its forms. The state would need to get out of the business of imperial hubris, economic uplift and social insurance and shift its focus to managing and financing an effective, affordable, means-tested safety net.”
Wall Street has us by the throat and Washington has us by a body part further south. Stockman’s advice of what to do is both frightening and depressing:
The United States is broke — fiscally, morally, intellectually — and the Fed has incited a global currency war (Japan just signed up, the Brazilians and Chinese are angry, and the German-dominated euro zone is crumbling) that will soon overwhelm it. When the latest bubble pops, there will be nothing to stop the collapse. If this sounds like advice to get out of the markets and hide out in cash, it is.”
Update : PJTV Video
” They didn’t see it coming last time either. Back in 2007, President Bush, Federal Reserve Chairman Ben Bernanke and just about every prominent voice in the financial world were all predicting that we would experience tremendous economic prosperity well into the future. In fact, as late as January 2008 Bernanke boldly declared that “the Federal Reserve is not currently forecasting a recession.” At the time, only the “doom and gloomers” were warning that everything was about to fall apart. And of course we all know what happened. But just a few short years later, history seems to be repeating itself. Barack Obama, Federal Reserve Chairman Ben Bernanke and almost every prominent voice in the financial world are all promising that the U.S. “economic recovery” is going to continue even though Europe is coming apart like a 20 dollar suit. But the economic fundamentals tell a different story. Our national debt is more than $6,000,000,000,000 larger than it was back in 2008, the number of Americans on food stamps just hit another brand new all-time record, and the bankers up on Wall Street are selling gigantic mountains of the exact same kind of toxic derivatives that caused so much trouble the last time around. But all of our “leaders” swear that everything is going to be okay. You can believe them if you want, but denial is not just a river in Egypt, and another crash is inevitably coming.
Sadly, many Americans are not even going to see the crash coming because they still have faith in the “experts”. They haven’t figured out that the “experts” really do not know what they are doing.
The blind are leading the blind, and in the end the results are going to be absolutely tragic.
The following are 10 hilarious examples of how clueless our leaders are about the economy…
#1 When I first came across the following chart the other day, it made me chuckle. It is a chart that supposedly tells us the “probability” of a recession, and it was taken from the website of the Federal Reserve Bank of St. Louis. According to the chart, right now there is a 0.16% chance of a recession… “
White, President Obama‘s pick to lead the U.S. Securities and Exchange Commission, even did legal work for former Goldman Sachs Group Inc. director Rajat Gupta, the highest-profile catch in the federal government’s crackdown on insider trading, according to disclosures White filed ahead of her U.S. Senate confirmation hearing.
If she wins approval to lead the country’s top financial watchdog, government ethics rules could force White to sit out of some SEC decisions. Potential conflicts of interest — or the appearances of conflicts — could arise from her work at the high-powered New York law firm Debevoise & Plimpton, and that of her husband John White, a partner at the prestigious firm Cravath, Swaine & Moore.
Obama’s appointment of White, a former U.S. attorney in Manhattan known for high-profile prosecutions of mobsters and terrorists, was seen as a signal the administration was getting tougher on Wall Street. Her confirmation hearing in the Senate has not yet been scheduled but is expected in the next several weeks.”
” The city’s hedge-fund executives are flying south — and it’s not for vacation.
An increasing number of financial firms, especially private equity and hedge funds, are fed up with New York’s sky-high city and state tax rates and are relocating to the business-friendly climate in Florida’s Palm Beach County.
And they’re being welcomed with open arms — officials in Palm Beach recently opened an entire office dedicated to luring finance hot shots down south.
“Florida is a state of choice,” said Thalius Hecksher, global development chief for Apex Fund Services, who moved many of his operations to Palm Beach. “It’s organically grown. There’s no need to drag people down here. It’s a zero-income-tax jurisdiction.”
” One thing, which I wish Taibbi had emphasized more is that it looks increasingly like credit would not have “seized up” across the board, for very long anyway had the big banks been allowed to fail. The mid-sized banks and the community banks, which lacked exposure to much in the way of toxic assets (because they sold them off to the big banks which then folded them into Mortgage Backed Securities) would have survived. It would have been bumpy but well run banks just outside of big bank status, BB&T for instance, would have filled in the space.
The bailout was, as David Stockman says, a Wall Street crisis. The bankers all freaked out when their bets turned terrible, and then played the information leverage game with Washington to get the tax payers to pay for their mistakes. They basically said that the entire economy was going down (it wasn’t) and therefore an unprecedented abandonment of what was left of our market based economy was justified. It was a giant con. “
Illustration By Mike Keefe
” President Barack Obama is soliciting donations from corporations and wealthy individuals for his inauguration festivities in a reversal of his previous policy, the New York Times reported.
The corporations and individuals will get special access to inaugural events in return for the donations, with the amount of access depending on the amount of money given. “
Nearly every mutual and hedge fund has piled into Apple [AAPL 525.62 -11.26 (-2.1%) ]during its spectacular rise over the past few years. Now, these same funds are scrambling for the exits as the stock goes through an equally spectacular decline.
Apple plunged to a six-month low Thursday as funds rushed to take profits on the stock before it’s too late. Shares are now off 25 percent since late September—shortly after the iPhone 5 launch and a month before the iPad Mini introduction. “
” TheBlaze is continuing to monitor the ever-growing list of companies that have announced layoffs or closings in the wake of President Obama’s re-election.
Wednesday was another tough day on Wall Street. And the stock market seems to reflect the mood of the country’s business community. Since last Tuesday, we have seen a decline in the Dow Jones Industrial Average from 13,244 to the close today of 12,570 — a loss of over 774 points in one week’s time. “
” Here is the list of domestic layoffs compiled by DailyJobCuts.com since Monday of this week:
Keep in mind the fact that this list is just this week’s contribution to the growing layoff parade . The last three days of last week … post-election … turned in some impressive layoff numbers of their own , what with Boeing , Westinghouse , Caterpillar and Harley-Davidson leading the way . Drip , drip , drip …
In a round of year-end belt tightening, NBCUniversal is cutting about 500 employees, or about 1.5% of its total workforce. The cuts are distributed throughout the media company, which boasts nearly 30,000 employees, according to a person close to the situation who asked not to be identified discussing the sensitive topic.
On Tuesday, Xerox provided some sketchy details of that restructuring: By the end of the year, 2,500 current employees will be former employees.
Citigroup Inc., the third-biggest U.S. bank, is dismissing 100 people on New York’s Long Island as the lender seeks to cut costs amid a slump in revenue. “
Read The Whole Thing . The List Goes On And On .
Illustration By Ribor Hansson
“Judging by the records of the last two Democratic administrations, just the opposite appears to be true. Certainly, President Obama and, to some extent, Bill Clinton like to talk a good game in terms of class warfare, but under both men, real corporate crime-fighting has been at best a side issue — despite the immense amounts of white-collar fraud their administrations faced. In fact, neither Obama nor Clinton can hold a candle to the corporate crime-fighting record of George W. Bush, that supposed lapdog for large corporate interests.
Consider: As we near the four-year anniversary of the financial crisis, not a single Wall Street fat cat has been charged with violations of securities laws in connection with the 2008 collapse.”
“What we need is a National Wall of Shame. A distinguished group of citizens, led perhaps by General Stan McChrystal, would serve as the
“admissions committee.” $25 million would be allocated for the acquisition of the site and the
construction of the wall itself. And on that wall would go the names of those whose actions brought disgrace upon the United States of
If a republican is raising funds in the “Hamptons” with Perelman’s help there is trouble brewing for the democrats .
” The New York Times reports that Romney had a big fundraiser at Revlon chairman Ron Perelman’s house in the Hamptons over the
weekend. But just four years ago, Perelman maxed out for Barack Obama. according to federal
records. Why the change? Well, Perelman has also given a lot to Orthodox Jewish causes, and the Times says one of the people coming to Perelman’s house for the fundraiser had Israel on her
A repudiation of the past forty years of profligate government spending ? What’s not to like ?
Combine that with the ever so slight lessening of the boot at small business’ neck and you’ve got the start of a recovery ; Not just economic but the recovery of the most precious and exceptional of commodities … the American spirit .
The significance of Governor Walker becoming the first sitting governor to survive a recall cannot be overstated.
Perhaps we’ve left the darkest part of night behind us and are seeing the first glimpse of new dawn , one that will usher in ” morning in America ” .
“You didn’t see it in the mainstream financial media Wednesday morning. But stocks loved Governor Scott Walker’s spanking of public-sector unions and Democrats in Wisconsin.
The Dow jumped about 165 points right at the opening on Wednesday, and was up over 200 points later in the day. There really was no other
There was some speculation about central bank stimulus in Europe and the United States. Blah, blah, blah. But there was nothing specific or concrete. So it’s an easy point to make: Markets love the Scott Walker landslide.”
Since we are on the subject of campaign finance perhaps now is a good time to look at Dear Leader’s donor lists in a bit more detail than the bootlickers are wont to do .
In the 2008 election cycle Wall Street ( who reaped billions from Obama’s Bailouts , see below ) gave him nearly $16 million and that trend continues. Now that is a fine return on their investment , wouldn’t you say ?
|TROUBLED ASSET RELIEF (TARP) BAILOUT PROGRAMS||FUNDS DISBURSED*
|*See Glossary at the bottom of this page for definitions of “disbursed,” etc.
This whole TARP business is very convoluted ( intentionally so ? ) and I won’t pretend to be able to understand all the numbers but it is clear that in exchange for a few paltry millions the banks reaped BILLIONS in return . If only my financial adviser could provide me those kinds of return on my investments .
This should dispel the notion that Obama is anything but a 1%er and that he shuns corporate money .
Next up from the special interest gift horse that funds this man ( and all Dems for that matter ) we have the unions . Ah yes , the working people you say , but you would be wrong . While the money comes from the worker’s paycheck they have no say as to where that money goes . Nor for that matter do they have any choice as to whether to donate at all . The big wigs ( more 1%ers ) make the decisions regarding campaign donations . The SEIU alone ponied up $60.7 mill towards his election . Surprisingly I was stumped in searching out hard numbers for the multitude of of union contributions to Obama 2008 .
Then we can take up the legal industry . As we know there is no interest group less enamored with the idea of tort reform than the legal profession . It is their cash cow and who but dems to prevent the necessary reforms . Hence Obama and the dems harvest profusely from the legal field . Yes , $45 million profusely . With that kind of money in play is it any wonder why there is nothing that you can do today where the presence of the ambulance chasers isn’t felt . We have become a litigation society at the behest of the legal industry and their future employees in congress .
We haven’t addressed the public service unions , like the teachers , bureaucrats , police , fire and such that overwhelmingly go to Barack and the dems but i’m running out of steam . Trying to find documented figures for these organizations proved more taxing even in this internet age than I thought . To be continued…