[Iowa-dx] Wouldn't you like unlimited credit?-"Corporate socialism" at work

[dr_pac-man@mchsi.com]

It's been an exciting week, if you've been following the financial crisis in the
New York Times.

First, the Federal Reserve gives a $200 Billion credit line last Tuesday to 
shore up the investment banks that hold subprime mortgages.    

Second, the crash of Bear Stearns, which had survived the Depression, but not 
the subprime mortgage crisis.  Margin calls were made on Bear-ie. "show me the
money".  A frantic call from the CEO of Bears Stearns to his couterpart at JP
Morgan Chase Thursday night, who understandbly called the Fed for help to take
over the investment bank by the start of trading on Wall Street Friday morning. 

Third, Sunday night's fire sale of Bear to JP Morgan Chase at $2/share, which 
was $170+/share recently.  All the negotiations were done by Sunday night so as
not to crash the Asian financial markets.  The Fed kicked in $30 Billion for 
that, plus taking over all the subprimes that Bear held.

Finally, after a survey of the other investment banks on Wall Street, the Fed
decided to offer the top 20 investment banks unlimited credit!

A real socialist would have nationalized the investment banks.  Instead the
Federal Reserve gives them unlimited credit(our tax money)!

Peace,

Bob


----------------------  Original Message:  ---------------------
From:    "GreenParty Ron" <greenpartyron@activist.com>
To:      iowa-dx@gp-us.org
Subject: [Iowa-dx] Sagging Stock Market Causes Buildings To Slump
Date:    Mon, 17 Mar 2008 21:02:02 +0000

> From: Libris Fidelis   DemocracyDefender@activist.com
> To: RepublicanPsyche@yahoogroups.com
> CC:
> Subject: [RepublicanPsyche] Sagging Stock Market Causes Buildings To
> Slump
> Date: Mon, 17 Mar 2008 20:43:23 -0000
> Show Full Headers Back To [INBOX]
> 
> 
> 
> Sagging Stock Market
> ====================
> 
> 
> 
> Causes Buildings To Slump
> =========================
> 
> 
> 
> After Bear Stearns Bailout
> ==========================
> 
> Monday, March 17, 2008 10:01:52 AM[IMAGE]
> 
> Stocks tumbled last Friday after a plan to alleviate a liquidity crisis
> at Bear Stearns Companies touched off concerns about the severity of
> credit troubles that they had been playing around in as a capitalist
> game. That caused the Dow Jones industrial average to fall almost 175
> points.  As the corporate monoliths then tried to cover up the
> improprieties, the pressure caused many building in the Wall Street area
> to lean and slump as a result of the financial pressure.  No one knows if
> New York City can withstand the financial pressure caused by the Bear
> Stearns financial fun and games!
> 
> A wild-ass plan was hatched by the New York Federal Reserve, to use the
> credit of the United States Government and JP Morgan Chase & Company to
> team up to provide interest-free corporate wellfare to Bear Stearns
> provided Bear Stearns pretends to be so overwhelmed that they would be
> willing to throw in the towel and merge with JPMC.  Having practiced
> "typical business practices" that corporations in our nation have been
> exploiting since the Republicans took over our country in 1980, the Bear
> Stearns sandbox debacle also caused the stock market to take a double
> tumble after the housing mortgage collapse and commercial
> credit debacle.  Bear Stearns went from a sudden capital deficit that
> went far beyond its liquidity deficit that analysts presume could have
> broken the camel's back of the bond house into the company's position of
> falling from the precipice of financial disaster to complete collapse,
> which has many investors trembling in fear and has revealed that
> the troubles in the financial credit market are in the mud.
> 
> [IMAGE]
> 
> "Whoooo... whoooo... whoooo..." stammars Federal Reserve Chairman Ben
> Bernanke, hyperventilating in shock after receiving "Boy" George's note,
> unable to come up with words as he urgently tryies to inspire confidence
> in our USA's financial markets.  He said, "Oh-h-h-h-h this is serious! 
> Oh my god!"
> 
> Unwilling to bail out the homeowners losing their homes to the immoral
> lending practices of the home mortgage businesses, the the US Federal
> Reserve dedicated itself on Monday to be the interest-free creditor of
> last resort for Wall Street investment houses, who backed the home
> mortgage debacle by financing the banks and lending companies who wrote
> the dishonest contracts which bankrupted homeowners.  However, on Wall
> Street, savvy investors were so worried over what was being revealed
> as stocks took a nose-dive for more than a 180 point loss during the
> first few minutes of trading.  One anonymous Federal Reserve employee
> said, "The cat is now out of the bag!  Now we have a huge cover-up job to
> do so the public won't be scared of what we've let be done by big
> business!"
> 
> In a police "Code-3" move, puppet handlers made President Bush hurriedly
> issue a message to calm the unpredictable financial and investment
> situation on Monday morning.  Bush was teleprompted into hailing the
> Federal Reserve's action and saying: "We've taken uh strong deesisuv
> actshun.  I've met with Treazzury Sec'etary Henry Paulson and somma his
> othur members of his economic teem.  I don't under-stand what they all
> said, but it was importunt, and I accep' ever-thing they said, whatever
> it was.  Don't worry about uh thing!  I know what I'm doing!  Just look
> at all of thuh victorees we've been having in Iraq the past five years,
> don't worry about your fie-nanshul sitchyuashun, I'm firmly in control
> here." As Bush spoke, his nose began to grow noticeably longer!"
> 
> Other Top Headlines Photos
> [IMAGE]"Oh boy, what can we do... what can we do?"asks floor trader after
> Bear Stearns deal, "Wecan't keep covering this up... the public's onlygonna
> realize what's really going on sooner orlater, this stupid George
> Bush Wizard of Ozeconomic sham can't continue on like this!"
> 
> "Let me explain what Bush does not understand," Federal Reserve Chairman
> Ben Bernanke told reporters in a brief conference call Sunday evening. 
> "These steps will provide the gambler's aid to the financial institutions
> who have messed up our economy, with a greater assurance of access to
> funds, these assurances that we could not offer to the defaulting
> mortgagees who are now losing their houses all over our country due to
> dishonest mortgage contracts.  Don't look at this as being caused by the
> huge trillions of dollars of deficits that have been caused by the war in
> Iraq, this is just financial institutions doing what the Republicans have
> been doing for the past twenty-eight years."  At this point, he inferred,
> Bush is really out of the picture and now an emergency monetary fund
> ambulance has been dispatched with advisors to try to save the economy
> before the patient dies.
> 
> After the
> 
> Other Top Headlines Photos
> [IMAGE]Congress worried over interference by Bush,vows to let big
> business run the country'sfinancial problems the way they want, as usual.Quipped
> one senator, "After all, big businesshas virtually owned this country
> ever sinceManifest Destiny!  We have to let thoseinternational
> corporations rule our nation, asthey have been for the past two
> centuries,they're the experts, not us!"
> Federal Reserve Chairman Ben Bernanke assured Friday that he would do
> what he could to aid struggling homeowners, but that the homeowners were
> small potatos so they did not deserve any real help until the mortgage
> industry could shake the worms out of the tree so they can resell those
> foreclosed houses for more profit, whereas, Bear Stearns is a major
> brokerage in our nation's financial system, so the Fed is obligated to
> bail them out.  It's a matter of corporate rights!
> 
> __._,_.___ [IMAGE]
> 
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