Archive for the Banks and Banking System Category

Losing Faith: MF Global and Kodak (January 9, 2012)

Posted in Bankruptcy, Banks and Banking System, Economics, Housing, Judges on January 9, 2012 by e-commentary.org

. . .

K          “With each passing day, the American dream is being stolen from more and more proverbial hard-working and law-abiding Americans.  When enough ordinary Americans lose their few investments, there will not be enough Americans who are invested in America.”

J          “MF Global and Jon Corzine stole money and did the American thing.  They fraudulently filed Chapter 7 of Title 11, the Bankruptcy Code, as a securities dealer rather than a commodities broker to provide powerful creditors access to the company’s cash before its ordinary citizen clients.”

K          “The picture at Kodak is not pretty.  The retirees will discover that the pensions they worked a lifetime to build are vaporized or at least reduced in a moment via Section 365 of Title 11.  Even the Bankruptcy Code is economically and morally bankrupt.”

J          “And distorted and prostituted at every opportunity by bankruptcy lawyers and judges.  For so many other ordinary Americans, their house is a cage, a prison and a leg-hold trap.  The owners are drowning and can neither fight nor flee, neither tread water nor swim away.  Housing prices still must drop substantially to achieve market clearing prices.”

K          “If everyone acknowledged the real market value of houses, the house of cards would collapse.  Big Banks and most homeowners would be forced to admit that everyone is hopelessly insolvent.  Local governments would not be able to raise enough tax revenue unless they raised the mill rate to a crippling percentage of purported market value.  The only way for the Republic to survive the day is to nourish a collective national delusion that everything really is alright.”

J          “Is it better to nourish a collective national delusion?”

. . .

Bumper sticker of the week:

When you ain’t got nothin’, you ain’t got nothin’ to lose.

Standing Up In America (December 5, 2011)

Posted in "Fiat ______", Bailout/Bribe, Banks and Banking System, Courts, Credit Unions, Crime/Punishment, Housing, Kleptocracy, Law, Locke Gary, Perjury/Dishonesty, Politics on December 5, 2011 by e-commentary.org

. . .

L          “We now learn that while he was Secretary of Treasury, Henry Paulson tipped off some of his hedge fund buddies of the Fannie Mae bailout.  Everyone in power is quick to proclaim that his statements and actions are not illegal and declare that nothing can be done.  His statements and actions are illegal, but those in power refuse to enforce Title 18, the criminal provisions of the United States Code, because they do not want to bring charges against their compatriots in power even their competitors in the other party.”      

O         “They cop out and refuse to send the cops out.  Because otherwise someone could bring charges against them some day.  The Great Ruling Class Truce.  And no one asks any follow-up questions or demands answers.”

L          “However, a federal judge in New York, Jed S. Rakoff, took a stand from his seat on the bench and rejected a settlement between the Big Banks and the SEC that would have let the Big Banks substantially off the hook.” 

O         “I read a blurb that the state attorney general in Massachusetts, Martha Coakley, took a stand and demanded that the Big Banks follow standards.  The lawsuit may put the Big Banks on the hook.”

L          “And in developments overseas, America’s standard-bearer in China, Gary Locke, is America’s stand-up guy in China.”

. . .

[Henry Paulson:  http://www.bloomberg.com/news/2011-11-29/how-henry-paulson-gave-hedge-funds-advance-word-of-2008-fannie-mae-rescue.html]

[Jed S. Rakoff:  http://www.npr.org/blogs/thetwo-way/2011/11/28/142856070/judge-blocks-citigroup-sec-settlement]

[Martha Coakley:  http://www.washingtonpost.com/business/economy/massachusetts-attorney-general-sues-big-banks-over-foreclosure-practices/2011/12/01/gIQAgwnUIO_story.html.  See the “e-ssay” titled Fire Your Attorney General (November 7, 2011)]

[Gary Locke:  http://www.washingtonpost.com/lifestyle/style/gary-locke-is-star-in-china-as-first-us-ambassador-of-chinese-ancestry/2011/11/28/gIQA703DEO_story.html?hpid=z2.  See the “Category” denoted “Locke, Gary”]

Bumper stickers of the week:

America Is Exceptional / When America’s Exceptional

Take a stand

Take a few fiat dollars out of your credit union and put them in your pocket for safe keeping.

Boycott Big Banks – Vote Your Dollars (November 21, 2011)

Posted in Bailout/Bribe, Banks and Banking System, Boycott Series, Civil Rights/Civil Liberties, Credit Unions, Guns, Occupy Movement on November 21, 2011 by e-commentary.org

. . .

X          “The money you withdraw from a Big Bank and deposit in a credit union does not matter to the Big Bank.  The Big Banks get free money from the Federal Reserve.  The Federal Reserve has already given away more than 16 Trillion with no Congressional approval and no prospect of every receiving any of the money.  However, when you withdraw your money from a Big Bank, you are surrendering your serfdom and asserting your freedom.  The Big Bank can no longer fleece you.  All the little fees are little fleas that pester and annoy and destroy you.  The Big Banks are five and ten dollaring you to death.”

Y          “When I moved my money to my local credit union, I was already in the lobby when I thought about applying for a car loan.  They offered the best rate.”

X          “Never borrow money from a Big Bank; only borrow money from a credit union or community bank.  When too many Americans did not deserve credit, the Big Banks and their surrogates fooled them and forced credit on them.  Now when a few deserving Americans desire and deserve credit, the Big Banks are unwilling to lend.  A credit union is willing to loan.”

Y          “The brochure says that I may even be able to apply for a home improvement loan.”

. . .

[See Senator Bernie Sanders at http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3]

[See the “e-ssay” titled “O’Bama Arming Industry (November 22, 2010).”  The benchmark price of .22s in November is $21.99.]

Bumper stickers of the week:

The spray seen ’round the world – UC Davis, 11/18/11

The pen is not mightier than the sword, but the video camera may be as moving

A video is worth ten thousand words

Banks got bailed out; people got sold out

Boycott Big Banks; Support Credit Unions

Lend To Credit Unions; Borrow From Credit Unions

Vote Your Dollars

http://www.occupycafe.org/

http://caselaw.findlaw.com/us-9th-circuit/1332957.html

An “Occupy Primer” (November 14, 2011)

Posted in Bailout/Bribe, Banks and Banking System, Economics, Kleptocracy, Law, Occupy Movement on November 14, 2011 by e-commentary.org

. . .

?          “The Bonus Marchers sought what?”

!           “Bonuses owed to them by the government.”

?          “The civil rights advocates sought what?”

!           “Civil rights.”

?          “The women’s rights proponents sought what?”

!           “Women’s rights.”

?          “Those who sought to end the war in Vietnam sought what?”

!           “To end the war in Vietnam.”

?          “Those in the Occupy Movement seek what?”

!           “Simple.  They seek to end a game that is rigged at every step against everyone except a very small elite.  They seek to change a political and financial and legal and schooling scheme that is corrupt and decadent from top to bottom and from right to left.  They seek a build a future but suspect that there is not one.  They seek to replace the current vacuous kleptocracy with a viable democracy.  They seek to start a discussion and a dialogue among equals in an outdoor Academy to supplant the lies foisted on them from those in power.  That type of stuff.”

?!         “They want a fair chance.  I get it.”

. . .

[See the “e-ssays” titled Occupy America (October 10, 2011) and Occupy America: The “Bonus March/Chicago Police Riot/Kent State” Of 2011? (October 17, 2011)]

[See the “e-ssay” titled America Recycles Day, November 15 (November 15, 2010) and celebrate “America Recycles Day” tomorrow by doing something.]

Bumper stickers of the week:

We are the 99.9%

Occupy Jenkins Hill; Occupy Capitol Hill

Occupy [our small burg]

(Neoclassical) Economics – “The Dismal Religion”

(Neoclassical) Economics – “The Delusional Religion”

I won’t believe that a corporation is a person until Texas executes one

Fire Your Attorney General (November 7, 2011)

Posted in Banks and Banking System, Courts, Crime/Punishment, Health Care, Housing, Kleptocracy, Law, O'Bama, Occupy Movement on November 7, 2011 by e-commentary.org

. . .

U          “A state attorney general represents the people of the state in legal matters.  The attorney general is your attorney representing you as a citizen.  What are all these state attorneys general doing maintaining frivolous litigation against Romney – O’Bama Care?  They are tying up the courts and wasting tax dollars.”

V          “Their acts of commission are matched by their acts of omission.  Too many attorneys general are ready to give immunity to banks for all their crimes and fraud rather than doing their job and taking the banksters to court.  We need to fire the state attorney general before he can do more harm.”

U          “In my state, do we need to fire her or will she do her duty?”

V           “Do we need to fire the Attorney General?”

. . .

[See Gretchen Morgenson, “A Deal That Wouldn’t Sting,” The New York Times, October 29, 2011 at http://www.nytimes.com/2011/10/30/business/a-foreclosure-settlement-that-wouldnt-sting.html?]

[On Saturday, good citizens withdrew their funds from national banks and deposited them in credit unions and community banks as part of “National Bank Transfer Day.”  See the “e-ssay” titled “Boycott Big Banks (February 1, 2010)” and the “e-ssay” titled “Carefully Courting “Romney – O’Bama Care” Through The Courts (August 15, 2011).”]

[Wall, Berlin – 8-13-1961 – 11-9-1989]

Bumper stickers of the week:

Boycott Big Banks

Divest nationally; invest locally   

Fire your attorney general

Occupy America: The “Bonus March/Chicago Police Riot/Kent State” Of 2011? (October 17, 2011)

Posted in Banks and Banking System, Boycott Series, Economics, First Amendment, Journalism, Kleptocracy, Newspapers, Occupy Movement, Politics, Society on October 17, 2011 by e-commentary.org

. . .

a          “They will only tolerate it as long as they regard it as harmless.  When they regard it as a threat to their domination, they will do harm.”

A          “Another inevitable repeat of history.  But when the Chicago police rioted in ’68 outside the Democratic National Convention and beat and tear gassed the populace, at least they only used night sticks and tear gas as weapons.”

a          “There are videos you can download to your tube with a few clicks.  You can see that the police even beat the press.  Back then, the press got it and got in the way and got it from the police.”

A          “Today, the authorities are armed with far more dangerous armaments and arsenals.  Even toll booth operators and beach patrols sport their own SWAT (Special Weapons And Tactics) Teams equipped with grenade launchers and flame throwers.  In an old black and white tv show, Barney Fife, a deputy sheriff in a small North Carolina town, carried one bullet, probably a .38, in his shirt pocket and was required to ask Andy, the sheriff, before he could even chamber it.  Different times.”

a          “Not many police officers realize that the kids are trying to protect the police union while the governor is trying to kill it.  When the federal government begins providing Homeland Security grants to allow local libraries to acquire armed drones, will anyone care or comment.”

A          “Not to worry, they are closing the libraries.  It might be Oak Park, it might be Oakland, it might occur on some other park or land that will become part of our national lore.”

a          “Even if the kids keep their heads, the authorities are going to bust them.  The problem is that one person may make a threatening comment that will provide the police with a pretext.  An undercover police officer could make a threatening comment to one of his colleagues and provide the pretext for a police riot.”

A          “A few young Boomers got their heads busted and then when older busted a booming economy.  Now the Boomers will bust some concerned youngsters’ heads – the youngsters who must endure the long bust but will never experience a lingering boom.”

. . .

[See the “e-ssay” titled “Ohio – Not Forgettin’ Ohio; The Battleground State Battles On (May 2, 2005)” and the “e-ssay” titled “The Residue of Unrelenting Fear: PTSD Afflicts The Populace (August 28, 2006).”]

Bumper stickers of the week:

Do you want the kids to be activists or pacifists?

Occupy Mayberry, R.F.D.

Kids (and older kids) who know and care are doing something

The kids are alright

“Those who make peaceful revolution impossible will make violent revolution inevitable.” – John F. Kennedy

Occupy America (October 10, 2011)

Posted in Banks and Banking System, Boycott Series, Economics, First Amendment, Journalism, Kleptocracy, Newspapers, Occupy Movement, Politics, Society on October 10, 2011 by e-commentary.org

. . .

A         “Commentators are having a hard time because there isn’t one spokesperson to interview nor one manifesto to mine.”

a          “Most commentators don’t understand what has happened in America over the last decade, so I don’t expect them to understand what is going on today.  I am aware enough to know that something’s clearly wrong, yet it is hard to describe.  What I do know is that I don’t have a future.”

A         “It’s simple and obvious.  The ruling class is strip mining the middle class.  And then accusing those who dare to point out the obvious truth that the astute observer is instigating class warfare.”

a          “They are clearcutting the kids.  They are not allowing a college grad let alone the ordinary Joe to immanentize the eschaton, although they are immanentizing the eschaton in a big way at my expense.  I really don’t have much hope of improvement or advancement.”

A         “Listen carefully.  That may be the big difference this time – an underlying absence of hope and a more pronounced sense of desperation.” 

a          “Hope died a few years ago.  Hope is so 2008.  Yet what do you have if you don’t have hope.”

A         “When hope totally disappears, an individual who can’t take it often takes one of three paths.  At the extreme, he takes his life, takes someone else’s life, or takes someone else’s life and then takes his life.”

a          “Someone sure took the life of the American Dream.”

. . .

[See the “e-ssay” titled “Boycott Big Banks (February 1, 2010).”]

Bumper stickers of the week:

Occupy Wall Street; Occupy Our America

You don’t need a sportscaster to know which way the ball bounces.

Carefully Courting “Romney – O’Bama Care” Through The Courts (August 15, 2011)

Posted in Banks and Banking System, Constitution, Crime/Punishment, Health Care, Kleptocracy, Law, O'Bama, Supreme Court on August 15, 2011 by e-commentary.org

. . .

Y          “I don’t really like it either.  But it is constitutional, isn’t it?”

X          “Yup.  No big deal, really.  The Constitution does not create a likeability test.  The Constitution establishes a constitutional test.  Governments have been requiring individuals to acquire automobile and other insurance and to undertake duties for decades without whining.  No one opts out of fire protection and thus we all pay for it.  If each of us is left to obtain private fire insurance, all of us must be compelled to obtain and pay for fire insurance.  At its core, health insurance policy clearly involves interstate commerce.”

Y          “It really is about personal liberty and property.  If you don’t have health coverage, I must pay for your health coverage because other laws not challenged as unconstitutional mandate that you receive health care.  Making me pay restrains my liberty and deprives me of my property.  And you know me, a proud taxpayer.  Why all the fuss?  And why all the rampant litigation?”

X          “Someone observed that we are dealing with judges trained in American law schools who want to play legislator without running for the legislature.  More judicial arrogance.  More judicial activism.”

. . .

Bumper stickers of the week:

– 11 + 6 = 5:  The Eleventh Circuit says NO*; the Sixth Circuit says YES; the Five Supremes will enact health care policy

A 207 page decision?  Not even 207 words are required.

What are all the state attorneys general doing pursuing the legal challenge to Romney-O’Bama Care while capitulating to the Big Banks and surrendering the major legal issues?

There is no law, there is only ideology

I hope laughter is the best medicine – it is all I can afford

(M)End The Fed (July 11, 2011)

Posted in Antitrust, Banks and Banking System, Bernanke, Crime/Punishment, Federal Reserve, Language, Law, Monopoly, O'Bama, Politics on July 11, 2011 by e-commentary.org

. . .

K          “The vocal critics of the Fed are missing the point.  Stated simply, every nation needs a central bank, but the Big Banks own and operate the Federal Reserve.  Stated another way, the country tolerates a misunderstood institution – the Federal Reserve – that is an unrestrained cancer and at the same time lacks an institution it desperately needs – a central bank independent of excessive political and any private interference.”

L          “A transparent central bank?”

K          “Call it whatever you want.”

L          “A responsive central bank?”

K          “Responsive to something other than Big Banks.  Bernanke* should have the intellect to understand the problem and the integrity to compel change, yet even he may take his marching orders from others.”

L          “He, Geithner and the others either assisted in creating the problem or allowed it to fester and permutate.  Now O’Bama is serving the interests of the financial industry at a time when his Department of Justice should be serving members of the financial industry with sub poenas and criminal indictments.  What incentive it there for him to reform the financial industry or the Fed.  Simply look at who he is soliciting for campaign contributions.”

K          “He was caught.  He simply could not get elected and cannot get reelected without the money.  No one is able to identify one industry in America that is not completely monopolized today.  Banks are among the biggest offenders.  Without a market, there is not a market and are not market forces.  Change likely will not come until there is a complete economic collapse.  That situation may generate enough sustained interest and desperation among those who can change affairs to reform the system.”

L          “Or the catastrophe may not leave any choice.” 

. . .

Bumper stickers of the week:

Antitrust Chief Flees; Monopolies Reign Freely

Because you don’t have to do the time, do the crime

Big sticker; small font sans serifs; big bumper:

UNITED STATES OF AMERICA

BEFORE THE

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

WASHINGTON, D.C.

___________________________________

Written Agreement by and between

BIG BANK,

New York, New York

And

FEDERAL RESERVE BANK OF NEW YORK,

New York, New York

___________________________________

.          WHEREAS, in recognition of their common goal to maintain the financial soundness of Big Bank (the “Big Bank”), a nationally chartered bank that is a member of the Federal Reserve System, the Big Bank and the Federal Reserve Bank of New York (the “Reserve Bank”) have mutually agreed to enter into this Written Agreement (the “Agreement”).

.          NOW, THEREFORE, the Bank and the Reserve Bank agree as follows:

  1. Within ninety (90) days of this Agreement, the board of directors of the Big Bank shall submit to the Reserve Bank a written plan to divest itself of any and all deposits and assets in excess of one hundred billion dollars ($100,000,000,000.00) . . . .

Our “Fiat Future” (June 13, 2011)

Posted in "Fiat ______", Banks and Banking System, Debt/Deficits, Economics, Gold Standard, Peak Land, Peak Oil, Spending on June 13, 2011 by e-commentary.org

. . .

Y          “So we live in an economy driven by ‘fiat money.’  Should we use the money to buy a Fiat car?  You know it is an acronym for ‘Fix It And Trade’?”

X          “Our fiat currency rolls along, but it is not a convertible vehicle.  I would like to fix it and trade, but we are just trading it.  A ’fiat’ is an order and a directive.  The United States Government orders and directs the citizens to accept ‘fiat money’ or ‘fiat currency’ or ‘fiat dollars’ for ‘for all debts public and private.’  The order and directive are backed by the ‘full faith and credit’ of the United States Government.  See, no worries.”

Y          “But I’m worried.  The credit of the United States government on paper is non-existent.  Why take its paper?  Who has even ‘half faith’ in its credit?”

X          “Only fools and citizens.  Only you and me.”

Y          “Why have faith when the empirical evidence is so clear and so clearly to the contrary?”

X          “Think about it this way.  I will accept the dollar if and because you will accept the dollar.”

Y          “Well then I will accept the dollar if and because you will accept the dollar.”

X          “That is the rationale.  It has worked and it works, but it may not work.  I don’t know if I want to accept the dollar.”

Y          “If you want to get rid of them, I will take them off your hands.”

X          “I will use them for the time being if and because you will accept them.  Half of the physical dollars are in circulation outside the United States and serve as the de facto currency in some countries and regions.  At the same time, the banks and financial institutions in America may have one tenth of one percent of the physical dollars necessary to cover the deposits in the banks and financial institutions.  Our fractional-reserve banking system is fractured, but it has not yet fractured.  A run on the banks, for rational reasons or irrational whims, would confirm what no one denies.”

Y          “So is the refusal to raise the debt ceiling a rational or an irrational triggering event?”

X          “An understandable reaction, but an irrational and dangerous response.  In a country awash in electronic dollars, there are no real dollars and not even enough fake dollars.  When the populace resorts to gold, everyone will discover that it is ‘fiat gold’ even if we are not ordered and directed by the government to accept it.”

Y          “The government took gold out of the equation decades ago.  And if you want to get rid of any gold, by the way, I will take it off your hands.”

X          “Others have put their full faith and credit in gold.  And then fail to see the irony in denominating the value of gold in . . . ‘fiat dollars.’”

Y          “So the dollar is not backed by gold, but gold is backed by dollars.”

X          “Seems to be.  However, there is no fiat bread.”

Y          “So when everyone realizes that the government ‘bread’ is stale, we will yearn for real bread.” 

X          “Bread is the real bread.  But we can’t print it.”

. . .

Bumper stickers of the week:

Bake Bread

Know how to bake bread

He Who Has The Gold Makes The Rules