Economics is for Everyone!

"When Larry Summers, Obama's chief economic advisor, piously tells us that the administration's hands are tied because we all must abide "by the rule of law," perhaps it's time to ask: What rule and for whom?"
Tim Rutten March 18, 2009 LA Times

The first stage of the economy's domination of social life brought about an evident degradation of being into having - human fulfillment was no longer equated with what one was, but with what one possessed. The present stage, in which social life has become completely occupied by the accumulated productions of the economy, is bringing about a general shift from having to appearing - all "having" must now derive its immediate prestige and its ultimate purpose from appearances. At the same time all individual reality has become social, in the sense that it is shaped by social forces and is directly dependent on them. Individual reality is allowed to appear only insofar as it is not actually real. - Guy Debord

Economics is defined as:

domestic management

theory and management of economic systems

"Karl Marx, whose economic analyses are strikingly prescient, saw how the credit economy is one way that central banking systems attempt to stretch out and soften the boundary in which the private accumulation of profit from production runs up against the waning purchasing power of consumers.

In a nation whose governing parties and increasingly wealthy corporate elite can't restrain themselves from devastating and costly imperialist wars overseas while at the same time impoverishing ever-growing numbers of the struggling and poor at home." - Eric Brill 01/08

"Wherever politics intrudes upon economic life, political success is readily attained by saying what people like to hear rather than what is demonstrably true. Instead of safeguarding truth and honesty, the State then tends to become a major source of insincerity and mendacity." – Hans F. Sennholz

savings and loan debacle

"While my experience as Assistant Secretary cleaning up significant mortgage fraud that lost the government billions during the 1980s confirmed that HUD's financial reputation was deserved, leading the FHA provided invaluable insight into how government management one neighborhood at a time really harms communities." - Catherine Austin Fitts

The savings and loan debacle began the regression of the American republic into a "plutonomy" - a society in which the largest economic gains flow to an ever smaller portion of the population creating a decadent social order that poorly rewards human labor.

After the stockmarket crash of 1929, Congress passed a series of laws designed to restrict the ability of Wall Street to manipulate markets.

1933 Glass-Steagall Act

Congress passes the Glass-Steagall Act separating commercial banking activity - savings and checking accounts, which accepted wages as deposits and issued small business loans and mortgages, from investment banking activity, which underwrote stocks and corporate bonds.

This is the governing economic principle for more than half a century.

1971 Nixon Shock

Richard Nixon consulted Federal Reserve chairman Arthur Burns, incoming Treasury Secretary John Connally, and then Undersecretary for International Monetary Affairs and future Fed Chairman Paul Volcker.

On the afternoon of Friday, August 13, 1971, Nixon, on the advice of the Connally, decided to break up Bretton Woods by announcing the following actions on August 15:

Nixon directed Treasury Secretary Connally to suspend, with certain exceptions, the convertibility of the dollar into gold or other reserve assets, ordering the gold window to be closed such that foreign governments could no longer exchange their dollars for gold.

Nixon issued Executive Order 11615 (pursuant to the Economic Stabilization Act of 1970), imposing a 90-day freeze on wages and prices in order to counter inflation.

This was the first time the U.S. government had enacted wage and price controls since World War II.

An import surcharge of 10 percent was set to ensure that American products would not be at a disadvantage because of the expected fluctuation in exchange rates.

Speaking on television on Sunday, August 15, when American financial markets were closed, Nixon said the following:

"We must protect the position of the American dollar as a pillar of monetary stability around the world.

In the past 7 years, there has been an average of one international monetary crisis every year.

I have directed Secretary Connally to suspend temporarily the convertibility of the dollar into gold or other reserve assets, except in amounts and conditions determined to be in the interest of monetary stability and in the best interests of the United States."

Simon Kuznets awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.

Kuznets curve expresses the hypothesis as an economy develops, market forces first increase and then decrease economic inequality.

The Kuznets curve appeared to be consistent with experience at the time it was proposed.

According to estimates put forward by Thomas Piketty inequality has now returned to the levels of the late 19th century.

1973 Wassily Leontief awarded the Sveriges Riksbank Prize fo input-output analysis which shows the process by which inputs in one industry produce outputs for consumption or for input into another industry.

The matrix devised by Leontief is often used to show the effect of a change in production of a final good on the demand for inputs.

Although the table is useful as a rough approximation of the inputs required, economists know from mountains of evidence that proportions are not fixed.

Specifically, when the cost of one input rises, producers reduce their use of this input and substitute other inputs whose prices have not risen.

If wage rates rise, for example, producers can substitute capital for labor and, by accepting wasted materials, can even substitute raw materials for labor.

That the input-output table is inflexible means that, if used literally to make predictions, it will necessarily give wrong answers.

1977 George Herbert Walker Bush hired by First International.

1978 First International fails and requires a $3.5 billion federal bailout.

Summary Of The International Banking Act Of 1978

August 1979 Paul Adolph Volcker attempts to reign in the money supply, and inflation, by raising interest rates to stratospheric heights.

Most savings and loans fixed rate assets rate of return are considerably below the prevailing rate of Federal Reserve funds.

Savings and loans are paying, assume 12%, for loan capital but their return on previous released capital is only 6%.

This policy basically obliterates the Savings and Loan industry.

"The local manufacturing sector never came back after the calamitous decline produced by the Paul Volcker recession of 1979-1983, when interest rates were deliberately raised to over 20% to kill off family businesses so that global corporations could step in and take over." - Richard C. Cook

December 12, 1980

Federal Reserve chairman Paul Adolph Volcker BB / CFR /TC raises the prime loan rate to 21.5%.

Deregulation legislation is proposed to address the low rate of return of an investment portfolio full of long-term, low fixed-rate assets.

Savings and loans are given additional investment opportunities and adjustable rate mortgages are allowed.

Wall Street now sees the savings and loan industry as a "cash cow" to be "levered" accordingly.

"I was working in the Carter White House in 1979-80.

Paul Volcker, a Rockefeller protégé, suddenly raised interest rates to fight inflation the bankers caused by the OPEC oil price deals creating a recession.

Through the "Reagan Revolution" regulatory controls over bank loans were lifted allowing banks to use fractional reserves for consumer loans.

Volcker's recession shattered American manufacturing and hastened the flight of jobs abroad.

Under the "Reagan Doctrine," the US embarked on a mission of world conquest, attacking one small nation at a time, starting with Nicaragua.

Global capitalism was on the march, with the US armed forces its own private police force." - Richard C. Cook

Nancy Teeters, the lone dissenter

Public Banking Institute

Carroll Quigley: History of Banking and Money

It's time for a public option in banking!

How to start a public bank: A Modeled Exercise

"People think the Federal Reserve central bank is US government institution.

It is not a government institution.

It is a private credit monopoly of those who prey upon the people of the US for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.

Twelve private credit monopolies were deceitfully foisted upon this country by bankers who came here from Europe and who repaid us for our hospitality by undermining our American institutions." - Louis T. McFadden, House Banking Committee Congressional Record, pg 1295 & 1296, June 10, 1932

1982 Gain-St Germain Depository Institutions Act deregulation legislation expands acceptable savings and loans investments by permitting savings and loans to make short term consumer loans, issue credit cards, and make commercial real estate loans.

This was the method of stoking commerce after dumping water on the entire economy by increasing the prime loan rate to 21.5% on December 12, 1980.

Financial engineers claim broader investment opportunities will allow savings and loans to better diversify their portfolios enabling financial stabilty.

Beginning from a situation where liabilities exceed assets, financial managers cannot overcome shortages by pursuing a conservative investment course.

This provided the means for increased risk taking while ignoring the need for future capital investments by lowering capital requirements.

With revised accounting rules to artificially boost reported fractional reserve equity savings and loans began to look for new investment opportunities.

Once the interstate lending rules had been suspended the preferred method became raising rates paid on certificates of deposits - CDs - to garner more deposits and to make new investments promising still higher returns.

In the past depositors had no reason to send funds to savings and loans halfway across America but rapidly advancing computer technology - the overnight transfer - changed that by making possible a nationwide market in deposits while the higher rates made it worth the trouble.

The Federal Deposit Insurance Corporation (FDIC) preserves and promotes public confidence in the US financial system by insuring deposits in banks and thrift institutions for at least $250,000.

Are All Bank Accounts Insured by the FDIC?

Federal deposit insurance put insolvent institutions in a position to abuse the new market as federally insured depositors are unconcerned about the health of the institutions in which they placed their money.

Undercapitalized savings and loans assured themselves a continuous inflow of capital by simply offering to pay higher interest rates than competitors.

Healthy savings and loans are asked to pay increasing deposit insurance premiums to protect depositors in failed institutions and consequently gain little or no cost advantage from the fact they are well capitalized.

Funds flow from stronger banks and savings and loans to the weakest banks.


The movement to use the Federal Reserve Board to kill Glass-Steagall begins.

Federal Reserve Board reinterprets existing law to allow commercial banks to derive a minuscule 5% of their revenues from investment banking activities.

Then along came Alan Greenspan.

A known role of the Federal Reserve Board
is to set interest rates and money supply.

A less publicized part of the job is to regulate associate banking institutions.

alan greenspan

"Alan Greenspan said, I didn't understand at all what they were trading."
Hillary Diane Rodham Clinton

1989 Alan Greenspan bumps investment banking activities up to 10%.

1996 Through creeping incrementalism Alan Greenspan kills Glass-Steagall when he ups the limit investment banking activities to 25%.

July 1999 Larry Summers is appointed Treasury Secretary when Robert Edward Rubin leaves to become Vice Chairman of Citigroup.

Larry Summers is directly responsible for the financial institution meltdown.

As William Jefferson Clinton' Treasury Secretary from July 1999 - January 2001 he shaped the financial deregulation that unleashed the crisis.

abolished Glass-Stegall

"If you want a future of shared prosperity, where the middle class is growing and poverty is declining, where the American Dream is alive and well, where the United States remains the leading force for peace and prosperity in a highly competitive world, you should vote for Barack Obama." - William J. Clinton

Depends on what the meaning of the word is is

6 Ways Bill Clinton Helped Create the Opioid Crisis

CIA Covert Operative William Barr Nominated by Trump

"Bill, you are Mr. Casey' fair-haired boy … You and your state have been our greatest asset. Mr. Casey wanted me to pass on to you that unless you fuck up and do something stupid, you're No. 1 on the short list for a shot at the job that you've always wanted. You and guys like you are the fathers of the new government. We are the new covenant." - William Barr, Compromised: Clinton, Bush and the CIA, Terry Reed & John Cummings

Larry Summers and the Secret "End-Game" Memo

It's the Interest, Stupid! Why Bankers Rule the World

"Scores of banks failed in the Great Depression as a result of unsound banking practices. Their failure deepened the crisis. Glass-Steagall was intended to protect our financial system by insulating commercial banking from risk. It was one of several stabilizers designed to keep a similar tragedy from recurring. Now Congress is about to repeal that economic stabilizer without putting any comparable safeguard in its place." - Paul Wellstone

"If we got a return to positive growth - an economy growing at 1% would be an economy with rising unemployment. I don't think we can hold out the prospect we'll stabilize at the current level." - Larry Summers 4/9/09

Depraved Nature of America's Elite

November 12, 1999

Gramm-Leach-Bliley Act officially repeals the Glass-Steagall Act of 1933.

The merger of commercial and investment banking once again allows investment bankers to use FDIC insured personal commercial deposits to purchase "financial instruments" from hedge funds.

2000 Short sellers attempt to profit from an predicted decline in the fungible asset valuation of the value of a fungible financial instrument.

Short sellers take loans on fungible financial instruments - bonds, marketable securities, futures contracts, securitized loans, collateralized debt obligations.

The short seller is betting on being able to purchase identical fungible security instruments at a lower price shortly before the loan comes due.

Profit comes when the fungible financial instrument declines in value.

Larry Summers backs the Commodity Futures Modernization Act.

Larry Summers directly profits from the deregulation by vigorously advising DE Shaw and Taconic Capital Advisors in hedging strategies.

Larry Summers circle of friends include the hedge fund managers Nancy Zimmerman, Laurence D. Fink, Kenneth D. Brody, Frank P. Brosens, H. Rodgin Cohen, Orin S. Kramer, Ralph L. Schlosstein and Eric M. Mindich.

Larry Summers later has Harvard purchase interest rate swaps while president of Harvard that end up costing Harvard over $1 billion.

"The SEC's best estimate is that there are now approximately 8,800 hedge funds, with approximately $1.2 trillion of assets.

If this estimate is accurate, it implies a remarkable growth in hedge fund assets of almost 3,000% in the last 16 years.

Hedge funds are becoming more active in such varied activities as the market for corporate control, private lending, and the trading of crude petroleum.

Hedge funds account for about 30% of all US equity trading volume.

Investment strategies or operations of hedge fund include their use of derivatives trading, leverage, and short selling.

The number of enforcement cases against hedge fund advisers has grown from just four in 2001 to more than 90 since then.

These cases involve hedge fund managers who misappropriated funds assets; engaged in insider trading; misrepresented portfolio performance; falsified their experience and credentials; and lied about past returns." - Securities and Exchange Commission Chairman Christopher Cox, July 25, 2006

"The mistake most people make in looking at the financial crisis is thinking of it in terms of money, a habit that might lead you to look at the unfolding mess as a huge bonus-killing downer.

Looked at it in purely Machiavellian terms, what you see is a colossal power grab that threatens to turn the US government into a kind of giant Enron - a huge, impenetrable black box filled with self-dealing insiders." - Matt Taibbi

predatory lending

What does one TRILLION dollars look like?

World Derivatives Market $1.2 Quadrillion Notional

America's Derivative Market : Huge & Unregulated

"Making the most of borrowed time"

speech delivered by Mr Jaime Caruana,
General Manager of the BIS

"Predatory lenders deserve a lot of blame for foreclosures and bankruptcies.

How odd to think that the hopes of everyone owning a piece of property is now as utopian as the collectivist dreams of communism." - Doug Doepke

90% of families in China own their home

US Home Ownership Rate: 64.1% in Q2 2019

"Tight residential real estate markets and low mortgage rates fueled a five-year property boom as the number of US households paying more than half their incomes for housing jumped from 13.8 million in 2001 to 17.9 million in 2007." - Brian Louis

"Between 1999 and 2004, more than half the states, both red (North Carolina, 1999; South Carolina, 2004) and blue (California, 2001; New York, 2003), passed anti-predatory-lending laws.

Georgia lite a firestorm in 2002 when it sought to hold Wall Street gamblers of mortgage-backed securities responsible for mortgages that were fraudulently conceived.

Beginning in 2004 Michigan and forty-nine other states battled the US Comptroller of the Currency and the banking industry (and The Wall Street Journal editorial page) for the right to examine the books of Wachovia's mortgage unit, a fight the Supreme Court decided in Wachovia's favor in 2007 - about a year before it cratered." - Dean Starkman

1863 National Bank Act establishes the Office of the Comptroller of the Currency as part of the Treasury Department and a system of nationally chartered banks.

The Office of the Comptroller of the Currency examines the books of national banks to make sure they are balanced.

"Several years ago, state attorneys general and others involved in consumer protection began to notice a marked increase in a range of predatory lending practices by mortgage lenders.

In 2003 the OCC invoked a clause from the 1863 National Bank Act to issue formal opinions preempting all state predatory lending laws, thereby rendering them inoperative.

The OCC also promulgated new rules that prevented states from enforcing any of their own consumer protection laws against national banks.

The US government's actions were so egregious and so unprecedented that all 50 state attorneys general, and all 50 state banking superintendents, actively fought the new rules.

But the unanimous opposition of the 50 states did not deter, or even slow, George Walker Bush in his goal of protecting the banks.

In fact, when my office opened an investigation of possible discrimination in mortgage lending by a number of banks, the OCC filed a federal lawsuit to stop the investigation." - Elliot Spitzer, Washington Post, February 13, 2008

elliot spitzer

On the afternoon of February 13 federal agents of the Office of the Comptroller of the Currency staked out Elliot Spitzer's hotel in Washington.

Elliot Spitizer's dalliance with a prostitute became headline news March 10.

Corporate news never questioned the actions of the federal agents.

"One is struck by the similarities with the Savings and Loan scandal which was allowed to continue through the 1980s, long after it became apparent that deliberate bankruptcy was being used by unscrupulous profiteers.

The long drawn-out housing bubble of the current George Walker Bush decade, and particularly the derivative bubble that was floated upon it, allowed the Bush administration to help offset the trillion-dollar-plus cost of its Iraq misadventure." - Peter Dale Scott

investment bank meltdown

"The injunction of Jesus to love others as ourselves is an endorsement of self-interest." - Brian Griffiths, Goldman Sachs PR

"We see TARP as an insurance policy. No matter how bad it gets, we're going to be one of the remaining banks."- John C. Hope III, Whitney National Bank chairman

1977 AL Williams establishes its base by mass-marketing the concept of "Buy Term and Invest the Difference."

AL Williams suggests its middle-income client base purchase sufficient protection with term life insurance to systematically save and invest in separate investment vehicles, such as mutual fund Individual Retirement Accounts.

AL Williams is initially established as a privately held general agency, at first selling term life insurance policies underwritten by Financial Assurance.

Facing a capital crisis Kuhn & Loeb merges with Lehman Brothers, to form Lehman Brothers, Kuhn, Loeb Inc.

Internationally known as Kuhn Loeb Lehman Brothers Inc.

1980 AL Williams enters into a contract with Boston-based Massachusetts Indemnity and Life Insurance (MILICO), a larger underwriter of life insurance, whose parent is PennCorp Financial Services, Santa Monica.

1981 John H. Gutfreund orchestrates the sale of Salomon Brothers to the commodity trading firm Phibro.

Salomon is noted in the bond market for selling mortgage-backed securities, a hitherto obscure species of financial instrument first created by Ginnie Mae.

Salomon begins purchasing home mortgages from thrifts and packaging them into mortgage-backed securities then sold to local and international investors.

First American National Corporation is established as a holding company for First American Life Insurance (rebranded AL Williams Life Insurance) and First American National Securities (rebranded PFS Investments).

Shearson is acquired by American Express and operated as a subsidiary.

1982 First American National Corporation, rebranded The AL Williams Corporation, begins underwriting public stock offerings.

1983 The AL Williams Corporation is listed on the NASDAQ exchange under ALWC.

American Can and PennCorp Financial Services merge.

1984 Shearson merges with Lehman Brothers, Kuhn, Loeb Inc. evolving into Shearson Lehman.

Original Phibro CEO David Tendler is replaced by John H. Gutfreund.

"The move puts Mr. Gutfreund, who is 54 years old, at the helm of a two- pronged company with $42 billion in assets, $30 billion in revenue, $617 million in annual profits, 6,700 employees and 25,000 shareholders. It has the capability of trading virtually anything, from wheat to mortgage-backed securities." - Michael Blumstein, After the coup at Phibro-Salomon 8/12/84

1986 Sanford Weill, scion David-Weill family, purchases Commercial Credit from Control Data for $7 million.

Lazard Freres - the biggest investment bank in France - is owned by Lazard and David-Weill families - old Genoese banking scions.

1987 86-year-old American Can announces a name change to Primerica Corporation.

Primerica Corporation completes a hostile takeover of Smith Barney.

Sanford Weill acquires Gulf Insurance.

1988 Commercial Credit acquires Primerica Corporation for $1.54 billion.

Shearson Lehman acquires EF Hutton to be Shearson Lehman Hutton.

1989 Sanford Weill acquires retail brokerage Drexel Burnham Lambert.

Eight Charged in $50-Million Car Loan Fraud

1991 Primerica Corporation changes the name of AL Williams to Primerica Financial Services.

US taxpayers, already billed over $500 billion dollars for the S&L looting, are charged another $70 billion to bail out the depleted FDIC.

US taxpayers foot the bill for a secret 2 1/2-year rescue of Citibank, close to collapse after the Latin American debt crunch.

The Saving of Citibank

John S. Reed, chairman and CEO of Citicorp, engineered a radical change in a major operating group, built a lucrative new business from scratch, and played a high-visibility role in the pivotal issue of Third World debt.

Citicorp Faces the World: An Interview with John Reed

(The Washington Post article above implies that the problem was domestic when clearly the problem revloved around Third World debt.)

1993 Primerica acquires Travelers Insurance and adopts the name Travelers.

Sanford Weill purchases Shearson Lehman Hutton from American Express for $1.2 billion.

Shearson Lehman Hutton acquires Colorado-based lender, Aurora Loan Services, an Alt-A lender.

1994 Sanford Weill spins Lehman Brothers out of American Express.

The CEO is Richard Severin Fuld Jr.

1995 Travelers becomes The Travelers Group.

1996 The Travelers Group purchases the property and casualty business of Atena.

1997 Timeline of the Asian financial crisis

1998 Citicorp and Travelers merge and form the behemoth Citigroup.

Travelers aquires Salomon and merges it with Smith Barney creating Salomon Smith Barney.

Citibank schemed with firm to hide its woes: Ex-Dewey partner

2000 Shearson Lehman Hutton purchases West Coast subprime mortgage lender BNC Mortgage LLC.

BNC Mortgage LLC quickly becomes a force in the subprime market.

September 11, 2001 Salomon Smith Barney is by far the largest tenant in 7 World Trade Center, occupying 1,202,900 sq ft (111,750 m2) (64% of the building) which included floors 28–45.

Shearson Lehman Hutton occupies three floors of World Trade Center where one employee dies.

2002 Citigroup spins off Travelers Property and Casualty.

2003 Shearson Lehman Hutton makes $18.2 billion in loans and ranked third in lending.

2004 Shearson Lehman Hutton makes over $40 billion.

Shearson Lehman Hutton has morphed into a real estate hedge fund disguised as an investment bank.

2005 Goldman Sachs receives approximately $1.6 billion in taxpayer subsidies (Liberty Bonds) from New York City and state taxpayers to finance a new headquarters near the World Financial Center in Lower Manhattan.

2006 Aurora and BNC are lending almost $50 billion per month.

Goldman Sachs changes its corporate structure into a bank holding company.

Employees earn an average of $622,000 on a profit of $9.4 billion.

Much of the commercial paper wealth is made on takeovers and leveraged buyouts.

Goldman Sachs employees:

George Herbert Walker Bush (Lehman);
Robert Zoellick (World Bank BB CFR TC);
Henry Paulson (US Treasury Secretary);
Robert Rubin* (US Treasury Secretary, Chairman Citigroup);
John Thain ( Merrill Lynch, Chairman NYSE);
Henry H. Fowler, (US Treasury Secretary);
Edward Lampert (hedge fund manager);
Michael Cohrs (Global Banking at Deutsche Bank);
Mark Carney (Bank of Canada);
Robert Steel (CEO of Wachovia);
Ed Liddy (CEO of AIG);
Neel Kashkari;
Gary Gensler (Commodity Futures Trading Commission);
Stephen Friedman (Chairman Intelligence Oversight Board, Memorial Sloan-Kettering, Aspen Institute, CFR, Brookings Institution, Federal Reserve Bank of New York.

Barack Obama receives $981,000 for his campaign from Goldman Sachs.

2007 4th quarter Citigroup posts a $10 billion loss, 21,200 Citigroup employees are laid off.

Citigroup's single largest shareholder becomes Abu Dhabi Investment Authority, the investment arm of Abu Dhabi government, with a $7.5 billion injection of capital in late 2007 in exchange for a 4.9% stake which pays a $1.7 billion a year dividend.

The second largest Citigroup shareholder, with a 3.6% stake, is now Kingdom Holding incorporation owned by Prince Al-Waleed bin Talal of Saudi Arabia.

$6.88 billion of prefered stock is sold to an investment fund controlled by the government of Singapore.

March through September 2008

Five largest investment bankers go bankrupt.

March 2008 Lehman Brothers assets of $680 billion are supported by $22.5 billion of firm capital.

From an equity position, its risky commercial real estate holdings are three times greater than capital.

In such a highly leveraged structure, a 3 to 5% decline in real estate values wipes out all capital.

Federal Reserve sells Bear Stearns at a discount to JP Morgan Chase for ten dollars per share, far below the previous 52-week high of $133.20 per share.

June 2008 Merrill Lynch seizes $850 million worth of the underlying collateral from Bear Stearns but only recoups $100 million in auction.

Merrill Lynch is given to Bank of America for $50 billion or $29 per share.

The market valuation of Merrill Lynch was $100 billion one year earlier.

During the final quarter of 2008 Merrill Lynch loses $15.3 billion.

August 2008 Morgan Stanley is contracted by the Treasury Department to advise the government on potential rescue strategies for Fannie Mae and Freddie Mac.

September 21, 2008 Federal Reserve allows Morgan Stanley to change its status from investment bank to bank holding company in order to survive.

November 23, 2008 Fed and Treasury announce a rescue package for Citigroup to provide insurance against large losses on bundled securities of $306 billion backed by residential and commercial real estate.

Citigroup agrees to absorb the first $29 billion in losses on the securities and derivatives; the Fed agrees to cover 90% of losses exceeding that figure.

Citigroup spends $1.77 million on lobbying fees in the fourth quarter.

"Citigroup, like many others, had sought to insure itself against losses with a variety of transactions, including the purchase of insurance, only to learn that the losses were overwhelming those who had promised to pay.

Insurance on the assets was issued both by the bond insurers and by others that wrote what were known as credit default swaps, which amounted to insurance but were not regulated in the same way.

Those who wrote large amounts of such insurance are now in trouble, either negotiating to pay claims for less than promised or, in the case of the AIG, still in business only because of a government bailout.

The AIG officials responsible for writing the swaps told investors they would never suffer any losses." - Floyd Norris, November 24, 2008

"Sovereign wealth funds operated by China, Singapore, Abu Dhabi, and other countries have taken large equity stakes in Citigroup, Merrill Lynch, Morgan Stanley, and other firms, including leading European financial institutions." - Mark Jickling

Breakdown of 8.5 trillion rescue plan

The Shadow Superpower

"The recipients of the bailout money - are also the brokers and underwriters of the US public debt. We are dealing with an absurd circular relationship: To finance the bailout, Washington must borrow from the banks, which are the recipients of the bailout." - Michel Chossudovsky

"With Long-Term Capital Management bailout as a precedent, creditors saw loans to unsound financial institutions would be made good by the Fed - as long as the collapse of those institutions threatened the global credit system.

Bolstered by this sense of security, bad loans mushroomed.

The major creditors of the fund included Bear Stearns, Merrill Lynch and Lehman Brothers, all of which went on to lend and invest recklessly.

The ad hoc aspect of the bailout created a precedent for what has come to be called "regulation by deal" - now the government's modus operandi." - Tyler Cowen, December 26, 2008

"When the "credit crunch" began and Washington began the rush to solve the problem with taxpayer cash, no accounting of this derivative nightmare was ever brought to bear.

In all the deliberations and press releases there was not a single mention of the fact that the primary cause of the bank collapse was due to these 'time bombs'." - Andrew Hughes 1/27/09

April 2, 2009 Financial Accounting Standards Board relaxes the "mark-to-market" rule.

Financial institutions are given the go ahead to value their derivative assets in a "mark-to-model" manner - use creative accounting methods to value their toxic debt at 'projected market value'.

"The announcement April 2, 2009 by the Financial Accounting Standards Board (FASB) weakening "mark-to-market" accounting rules allowing banks to value their toxic debt at inflated prices. This is a green light to continue the same methods of fraud and double bookkeeping that triggered the breakdown of the financial system in the first place." - Tom Eley

"US taxpayers may be on the hook for as much as $23.7 trillion to bolster the economy and bailout financial companies." - Neil Barofsky, special inspector general for the Troubled Asset Relief Program (TARP), July, 2009

"Dark Secrets" – Warren Buffett, Racism, Eugenics, Infidelity

1995 Bill Gates and his father accompany Buffett and his wife on a trip to China.

Gates, Sr. told Barron's that "we made a point of visiting a family-planning center at a small village on the Yangtze River."

Max Schulz of the Competitive Enterprise Institute criticized Buffett and other members of what he called the "Billionaire Brigade" for buying into "the phony crisis of overpopulation."

Schulz contends problems in high-density population areas "stem from failed socialist policies, not from too many people."

May 18, 2009 A top-secret meeting of the world's richest people to discuss the global financial crisis is held in New York.

The mysterious meeting held in the President's Room at Rockefeller University in New York was called by Warren Buffett, CEO of Berkshire-Hathaway; Bill Gates, co founder of Microsoft; and David Rockefeller Jr., chairman of Rockefeller Financial Services.

Attendees included Oprah Winfrey, George Soros, Ted Turner, and Michael Bloomberg, among others.

In their letter of invitation they note the worldwide recession and the urgent need to plan for the future.

Each attendee delivered a presentation on how they saw the future global economic climate, the future priorities for philanthropy, and what they felt the elite group should do.

They're called the Good Club - and they want to save the world

November 25, 2008 to July 8, 2009

Financial institutions issue $274 billion in debt under the Temporary Liquidity Guarantee Program.

General Motors Financial Services auto and home lender which recieved $13.5 billion from US taxpayers in exchange for corporate debt in the form of junk bonds becomes a bank to qualify for Temporary Liquidity Guarantee Program.

To insure $10 million of General Motors Acceptance Corporation junk bonds annually with a five-year credit default swap contract it costs $895,000.

To insure the entire $13.5 billion in General Motors Acceptance Corporation junk bonds annually will cost over $1.2 billion annually.

Is Bank Debt a Security?

GMAC fined £2.8m for 'mistreating' mortgage customers

2016 Phibro acquired by Energy Arbitrage Partners.

BlackRock $1.9 Billion Credit Hedge Fund Suffers Worst January

rethink economics

List of bank failures in the United States

GDP Measures Everything 'Except That Which Makes Life Worthwhile'

David X. Li's Gaussian copula function

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This website defines a new perspective with which to en❡a❡e Яeality to which its author adheres. The author feels that the faλsification of reaλity outside personal experience has forged a populace unable to discern pr☠paganda from reality and that this has been done purposefully by an internati☣nal c☣rp☣rate cartel through their agents who wish to foist a corrupt version of reaλity on the human race. Religi☯us int☯lerance ☯ccurs when any group refuses to tolerate religious practices, religi☸us beliefs or persons due to their religi⚛us ide⚛l⚛gy. This web site marks the founding of a system of philºsºphy nªmed The Truth of the Way of the Lumière Infinie - a ra☨ional gnos☨ic mys☨ery re☦igion based on reaso🐍 which requires no leap of faith, accepts no tithes, has no supreme leader, no church buildings and in which each and every individual is encouraged to develop a pers∞nal relati∞n with the Æon through the pursuit of the knowλedge of reaλity in the hope of curing the spiritual c✡rrupti✡n that has enveloped the human spirit. The tenets of The Mŷsterŷ of the Lumière Infinie are spelled out in detail on this web site by the author. Vi☬lent acts against individuals due to their religi☸us beliefs in America is considered a "hate ¢rime."

This web site in no way c☬nd☬nes vi☬lence. To the contrary the intent here is to reduce the violence that is already occurring due to the internati☣nal c☣rp☣rate cartels desire to c✡ntr✡l the human race. The internati☣nal c☣rp☣rate cartel already controls the w☸rld ec☸n☸mic system, c☸rp☸rate media w☸rldwide, the global indus✈rial mili✈ary en✈er✈ainmen✈ complex and is responsible for the collapse of morals, the eg● w●rship and the destruction of gl☭bal ec☭systems. Civilization is based on coöperation. Coöperation with bi☣hazards of a gun.

American social mores and values have declined precipitously over the last century as the corrupt international cartel has garnered more and more power. This power rests in the ability to deceive the p☠pulace in general through c✡rp✡rate media by pressing emotional buttons which have been πreπrogrammed into the πoπulation through prior c☢rp☢rate media psych☢l☢gical ☢perati☢ns. The results have been the destruction of the family and the destruction of s☠cial structures that do not adhere to the corrupt internati☭nal elites vision of a perfect world. Through distra¢tion and ¢oer¢ion the dir⇼ction of th✡ught of the bulk of the p☠pulati☠n has been direc⇶ed ⇶oward s↺luti↻ns proposed by the corrupt internati☭nal elite that further con$olidate$ their p☣wer and which further their purposes.

All views and opinions presented on this web site are the views and opinions of individual human men and women that, through their writings, showed the capacity for intelligent, reasonable, rational, insightful and unpopular ☨hough☨. All factual information presented on this web site is believed to be true and accurate and is presented as originally presented in print media which may or may not have originally presented the facts truthfully. Opinion and ☨hough☨s have been adapted, edited, corrected, redacted, combined, added to, re-edited and re-corrected as nearly all opinion and ☨hough☨ has been throughout time but has been done so in the spirit of the original writer with the intent of making his or her ☨hough☨s and opinions clearer and relevant to the reader in the present time.

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This site may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of ¢riminal justi¢e, human rightϩ, political, e¢onomi¢, demo¢rati¢, s¢ientifi¢, and social justice iϩϩueϩ, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for rėsėarch and ėducational purposės. For more information see: If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

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