When the car is headed to a brick wall at 100 mph and is only five feet from the wall, brakes do no good. That is where we are right now concerning how this financial crises has been managed till now. Three events this week alone point to this reality graphically. First, regulators on Friday shuttered banks in Florida, Illinois, Maryland and Utah, boosting to 26 the number of bank failures in the U.S. so far this year following the 140 brought down in 2009 by mounting loan defaults and the recession. The Federal Deposit Insurance Corp. took over Sun American Bank, based in Boca Raton, Fla., with $535.7 million in assets and $443.5 million in deposits. Also seized were Bank of Illinois of Normal, Ill., with $211.7 million in assets and $198.5 million in deposits; Waterfield Bank in Germantown, Md., with $155.6 million in assets and $156.4 million in deposits; and Centennial Bank in Ogden, Utah, with $215.2 million in assets and $205.1 million in deposits.
What was even more telling was for Waterfield Bank, no buyer was found, so the FDIC will set up a new savings institution that will operate until April 5 to allow customers access to their deposits and give them time to open accounts at other banks. The FDIC was also unable to find a buyer for Centennial Bank, and it approved the payout of the institution’s insured deposits. As a result, checks to the retail depositors for their insured funds will be mailed on Monday. Zions First National Bank in Salt Lake City agreed to accept the failed bank’s direct deposits from the federal government, including Social Security and Veterans’ payments.
Further, unannounced in MSM is the fact that there is nearly 3,000! additional mid and small banks in trouble on the commercial real estate loan portfolios. What this means in perspective is that 3000 out of the remaining 8000 small and medium banks in America are on the verge of collapse. The big get bigger and kill all the rest. If you have been following my blog, I have been warning for months now that this is not just poor management or a twist of economic fate, it is in fact an assault on the monetary backbone of our economy and not just our economy, but the world economy.
When you start putting the pieces together, you can only shake your head at the hubris and greed that is being demonstrated by the PTB in this all out assault. Right out in front of God and everybody! Amazing really. Here is another little factoid thanks to Webster G. Tarpley over at GCN Radio to support my assertion.
This is what emerged during the first week of December with a speculative assault or bear raid against Greek and Spanish government bonds as well as the euro itself, accompanied by a scurrilous press campaign targeting the “PIGS (Portugal, Italy, Greece and Spain),” an acronym for the countries just named, coming from inside the bowels of Goldman Sachs. Now comes concrete proof of this conspiracy in the form of a Feb. 8 “idea dinner,” held at the Manhattan townhouse of Monness, Crespi, Hardt & Co, a boutique investment bank. Among those present were SAC Capital Advisors, David Einhorn of Greenlight Capital (a veteran of the fatal assault on Lehman Brothers in the late summer of 2008), Donald Morgan of Brigade Capital, and, most tellingly, Soros Fund Management. The consensus that emerged that night was that Greek government bonds were the weak flank of the euro, and that once a Greek debt crisis had been detonated, all outcomes would be bad for the euro. The assembled predators agreed that Greece was the first domino in Europe. Donald Morgan was adamant that the Greek contagion could soon infect all sovereign debt in the world, including national, state, municipal and all other forms of government debt. This would mean California, the UK, and the US itself, among many others. The details of this at dinner were revealed in the headline story of the Wall Street Journal on Friday, February 26, 2010. (See article)
Nor was this the only cabal in town intent on attacking the euro through the week Greek flank. The article cited suggests that GlobeOp Financial Services and Paulson & Co. are also piling on. The zombie banks were also heavily engaged. The article reported that Goldman Sachs, Bank of America-Merrill Lynch, and Barclays Bank of London were also assisting speculators in placing highly leveraged bearish bets against the euro. Note that these zombie banks are alive today because of US taxpayer money, in Barclay’s case through AIG.
It amounted to a deliberate attempt to create a large-scale world monetary crisis which would certainly bring with it the dreaded second wave of the current world economic depression. The creation of monetary chaos in Europe through the convulsive destruction of the euro under speculative attack would cripple commodity production in western Europe, severely undermining one of the dwindling areas of the world economy which are still functioning. The genocidal implications for humanity ought to be obvious, but the assembled hedge fund hyenas were not concerned with these consequences.
So here we are no jobs, those that are working are seeing decreasing incomes. No banks are loaning because they need every dime they take in to cover their exposures on commercial loans. If you can get a loan you are going to pay a much higher interest rate and finally you are facing a much higher tax rate in 2010. Do you see how hopeless this situation is getting? I am doing this article though, not because of these situations, but to point to what happens as an end result of these facts. When the second wave hits, people are going to panic and be angry. The PTB are counting on it. As I have also pointed out, everything is in place to contain the social unrest and declare martial law. We are seeing a microcosm of this in Greece today. The Glenn Becks and Michelle Bachmans of the world are inciting us to revolt.
DON’T DO IT. Don’t play into that hand as the cards are stacked against us. The one contingency that the PTB can not counter is an informed and involved voter. If we want to revolutionize our country, it should be at the ballot box. Throw these bought and paid for politicians out on their ears and let’s allow honest people to once again govern by our consent. We should insist that anyone going to Washington will do three things. First, legislate a public campaign finance law. End this unbalanced influence game. Secondly, tax derivatives heavily. End this predator speculation where the banksters win on both ends. Third, break up these “too big to fail” institutions and segregate banking from investments. There were reasons for those regulations and we should restore them. Then maybe we have a chance to come out of this downward spiral. Maybe.