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The Forum > Article Comments > Uncertainty is creating and driving fear > Comments

Uncertainty is creating and driving fear : Comments

By Keith Kennelly, published 21/10/2008

The banking system that served us well for nearly 80 years through economic growth and change has been wrecked.

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On croneyism: you could mention that Paulson was effectively Malcolm Turnbull's boss at that den of transparency, justice and overall brilliance Goldman Sachs, if I'm not mistaken.

But my full support on Keith's call to effect bankruptcies. Many of us have been calling for the need to push bankruptcies through for all of the failed banks, but commentators keep ignoring this obviously practical, logical and moral outcome, so necessary as a prelude to reorganizing the entire system. I say again: if the entity is BANKRUPT, you put it into BANKRUPTCY PROCEEDINGS and RECEIVERSHIP! This ongoing bail-out heist is only going to make the situation harder to overcome.

I agree too in locating blame to at least some of the "idiots" he names, though I understand that the terms "misanthrope" and "Ayn Rand admirer" may better explain their personalities, if not their idiocy too.

However, Clinton and Carter, in particular, are unnecessary targets - probably due to some quaint caricature about them somehow being "lefties" and therefore "bad". In Clinton's case, the pressure went the other way as he was all but openly blackmailed into dumping Glass-Steagall. If any is most culpable in Clinton's administration on that point it would be Al Gore.

One other major concern over the piece: Keith misses the scale of the enormous derivatives bubble waiting now to get called in. The estimates of 5562 trillion only cover the barest of such toxicity; the totals far exceed the hundreds of trillions, as even very patient analysts realize that the "quadrillion" figure becomes necessary! So Keith's comment about hyperinfaltion may be understated: it is more "welcome to Weimar Germany 1923" which, of course, was the prelude to the most febrile expression of fascism.

The US election is heading for a Soros presidency via Obama. That aspect is important to understand just why Obama backed the bail-out scams immediately, and why Clinton 1 and 2 (Hilary) have been misrepresented and vilified so persistently. Hilary's vast popular support is being insulted cruelly and continuously by one of the most corrupt nominations in history.
Posted by mil-observer, Tuesday, 21 October 2008 10:06:55 AM
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I think there is a serious mistake on page 1. The old concept of Reserve Banks holding statuatory reserves was dispensed with under the Basle Agreement so that now all that is required is that individual banking conglomerates meet a capital adequacy ratio. That has led to banks seeking extraordinary profits as any excess profit adds to the capital adequacy base and has a multiplier effect on the groups lending capacity.
Australian banks have been expanding their loan (asset) books by 12-15% compound for many years (15?) using even special loans from overseas to do so. No wonder there has been a housing and sharemarket bubble and people have been priced out of buying their own first home.
An American recently argues that debt swaps are important in the market. They aren't! They are a recent invention and international trade in real goods and services functioned well in the recent past without such instruments. If some one takes on a risk they should not be able to camouflage the risk and pass it on. To allow them to do so is to open the flood gates to rogues.
Posted by Foyle, Tuesday, 21 October 2008 11:01:49 AM
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its funny how the deception goes
all fed reserves were removed from govts in the 30's [understand that the bankers CONtrol the fed reserve]

we have just heard ms bishop talking about the fed on lateline saying the fed reserve is the regulator [bull]

its 12 bankers lending govt its own money [in return for our income tax ,noting income tax was the cost to govt after wars [ww1] bankrupted the countries to repay the war debt

know the ressesion was via limiting money supply [the very thing that was not supposed to happen with a private owned fed reserve system ] the same thing was beginning again [this is what has been averted for now ,but for how long?]

fed reserves still issue fiat currency at whim of the bankers [noting the pres dont nominate them all [but takes recomendations from guess who [the reserve bankers taking our tax as well as hording our legal tender [coin ;gold and silver coin [the only legal tender acording to the constitution [115]

it is a sham
and its a shame

no one writes the truth about how our gold and silver [and now our REAL assets have become securities [paper securities] we now hold instead of our gold and silver [they even had to steal our copper coin]and our taxes ,while securitising defaults into our supper[we are forced to pay to cash up the stock market every week.

bankers bah!
Posted by one under god, Tuesday, 21 October 2008 11:30:58 PM
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As a retired blue collar worker but still in possesion of all my marbles & an honours graduate of the university of practical experience, I do not wonder at the financial meltdown so ably explained in this article. Not being wise after the event, but surely it is obvious to the most uneducated that the foreign/financial policies of the Howard/Costello government with their blind obedience to the quite disastrous foreign/financial policies of the G.W. Bush/Cheney led US government must eventually lead to financial chaos? The Australian banks although bleating that they are not exposed( said to be: "not to any great extent"?)are still culpable to the valid charge of very poor conservative banking practise & blatant greediness, perhaps negligence? The Federal government & the Reserve Bank should have put the brakes on the economy at least three years ago, dampened down the rampant consumer demand, particularly in the housing market which is so Australian in its huge economic impact upon the Australian economy. Howard/Costello asleep at the wheel? Mal Turnbull with his past banking history is surely part of the problem? & most surely is not the white knight riding to the rescue??
Posted by Jack from Bicton, Tuesday, 21 October 2008 11:52:32 PM
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its time govt[and MEDIA]told people the whole truth ,know for a certainty this was all planned[every bit of it]

we allowed govt to NOT regulate the so called regulators,
margin lending ,fractional reserve,write downs,inflation,hyper-inflation,stagflation are all words that must be taught in school.

so must the truth that EVERY war ever fought was financed[if not in the beginning at the end]by bankers,who finance both sides,then cut off funds to one or the other.

ceaser was killed by the money changers[for daring to issue HIS own currency]we recall jesus and the money changers tables ,just as now we have the banker created fictional securities tables that rate bb securities at AAA at whim

know it is OUR[the lenders]SIGNATURE that creates the security the iou]that was bundled into the blue ink copy that underwrote it[but any thing[ANYTHING] we 'signed in blue ink',has become an AAa security' from your birth certificate ,your licence, checks, credit reciept,loan application[rates,fines ,any piece of paper YOU signed ,was turned into a 'security]even prisoners in jail ANYTHING they can bundle and lable'AAA'[our super is these securities[the bankers used the 'securities' cash to buy up REAL assets]

control of all assets [resources] industry,money and person ,govt legally owns your auto[the 'origonal' reciept they sold on to become a security ,your rego pays the 'dividend',your speed fines the bonus [because under the terms of bankruptsy of our nations demand these taxes .fees and charges to be GIVEN to the red reserve[who then via fractional reserve lending turn that 850 billion us into 50 trillion [and yet more bonds][911'resque' last time made the easy credit that now defaults 10,000 us families EACH DAY; created this bursting bubble]said to approach 2 quadrillion $us[based on 100 billion mortgauge securities ,and a whole lot of signatures on paper.

but it is that NO_one knows where YOUR mortgauge document is [the ORIGONAL must be presented to seize your house[they havnt got the ORIGONAL]people are losing their houses on PHOTO copy[but the judges are accepting this fraud and leaving people homeless[while cashing up the bWankers for their next ursury fraud
Posted by one under god, Friday, 24 October 2008 10:27:25 PM
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in the intrests of understanding for a certainty
that removes the uncertainty [thus removes the fear [as well as the danger read the creature from jeckle island [explaining how this fed reseve [neither a public nor govt agency] has no oversight ,and is little more than a tax authority [that by inflation ENSURES our money buys EVER less goods]

here is a relitive audio file

also note there is a end the fed movement affoot [a protest is planned worldwide at EVERY fed reserve [on nov 22!]
Posted by one under god, Saturday, 25 October 2008 1:58:28 PM
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