It’s not. And from the looks of it… it won’t any time soon.
The world economy is losing strength halfway through the year as high oil prices and fallout from Japanâ€™s natural disaster and Europeâ€™s debt woes take their toll.
Goldman Sachs Group Inc. now expects global economic growth of 4.3 percent in 2011, compared with its 4.8 percent estimate in mid-April, while UBS AG has cut its projection to 3.6 percent from 3.9 percent in January. Downside risks also include a shift to tighter monetary policy in emerging markets.
It certainly makes you wonder just how bad it really has to get before the Administration or Democrats actually admit its getting bad? I mean, right now the entire thing is collapsing and all we hear from these thugs is how it’s all ok.
Just last month he claimed we’re seeing progress and there were “glimmers of hope.”
President Barack Obama said Friday the economy is beginning to show â€œglimmers of hopeâ€ despite remaining under stress and signaled more steps are coming to brighten the business climate. Obama commented to reporters after meeting at the White House with members of his economic team, including Treasury Secretary Timothy Geithner, economic adviser Larry Summers and Federal Reserve Chairman Ben Bernanke. Here, the full text of Obamaâ€™s
This isn’t the kind of hope we had hoped for.
Consider this post one of MANY to follow yesterday’s post about the greatest theft in the History of mankind. For those who haven’t yet read it, please take a moment to read “The Real Housewives of Wall Street” at the Rolling Stone. (Hard to believe I’m linking to an RS article…)
But if you want to get a true sense of what the “shadow budget” is all about, all you have to do is look closely at the taxpayer money handed over to a single company that goes by a seemingly innocuous name: Waterfall TALF Opportunity. At first glance, Waterfall’s haul doesn’t seem all that huge â€” just nine loans totaling some $220 million, made through a Fed bailout program. That doesn’t seem like a whole lot, considering that Goldman Sachs alone received roughly $800 billion in loans from the Fed. But upon closer inspection, Waterfall TALF Opportunity boasts a couple of interesting names among its chief investors: Christy Mack and Susan Karches.
Christy is the wife of John Mack, the chairman of Morgan Stanley. Susan is the widow of Peter Karches, a close friend of the Macks who served as president of Morgan Stanley’s investment-banking division. Neither woman appears to have any serious history in business, apart from a few philanthropic experiences. Yet the Federal Reserve handed them both low-interest loans of nearly a quarter of a billion dollars through a complicated bailout program that virtually guaranteed them millions in risk-free income.
Those of you wondering where your social security benefits went, along with how the coming collapse of Medicare and Medicaid is happening… this post should shed some light on the outcome.
The bottom line is that big corporate bankers not only stole your money, they did it through the U.S. Treasury. What’s worse is they did it through legal means. In fact, they did it with the blessing and blank check of the U.S. government.
The case of Christy Mack is significant, but only a very small part of the pie. It’s important to study what happened with Mack, though, because when you consider that she’s just one of MANY who are in on this scam, you start to see where all the money went.
TALF, or “Term Asset-Backed Securities Loan Facility,” is a program run out of the Federal Reserve Bank of New York and has the following definition on its website:
The Federal Reserve created the Term Asset-Backed Securities Loan Facility (TALF), to help market participants meet the credit needs of households and small businesses by supporting the issuance of asset-backed securities (ABS) collateralized by auto loans, student loans, credit card loans, equipment loans, floorplan loans, insurance premium finance loans, loans guaranteed by the Small Business Administration, residential mortgage servicing advances or commercial mortgage loans. The facility was closed for new loan extensions against newly issued commercial mortgage-backed securities (CMBS) on June 30, 2010, and for new loan extensions against all other types of collateral on March 31, 2010.
The scam was set up with virtually zero accountability. According to WikiPedia:
Under TALF, the Fed lent $1 trillion to banks and hedge funds at nearly interest-free rates. Because the money came from the Fed and not the Treasury, there was no congressional oversight of how the funds were disbursed, until an act of Congress forced the Fed to open its books. Congressional staffers are examining more than 21,000 transactions.
The TALF program was launched on March 3, 2009, just after Barack Obama took office. Christy Mack, who’s husband is Chairman of Morgan Stanley, and close friend Susan Karches launched “Waterfall TALF Opportunity” in 2009.
As pointed out in the Rolling Stone piece, Mack and Karches had virtually no experience or History in business. Outside of their obvious connections to the financial industry, there was no reason for risks to be taken on them and their business plans.
Furthermore, TALF appears to have been set up to assist small businesses with credit and loans to help “stimulate” the economy. With this in mind, how in the hell did Mack and Karches move to the front of the line and secure almost a quarter of a BILLION dollars in no-interest taxpayer funded loans that had zero Congressional oversight?
The loans were given to Mack and Karches in or around June of 2009. Two months later Mack and her husband started making some interesting purchases.
a 107-year-old limestone carriage house on the Upper East Side of New York, complete with an indoor 12-car garage, that had just been sold by the prestigious Mellon family for $13.5 million.
Now keep in mind this is the same Federal Reserve Bank of New York that criminal (now Secretary of the U.S. Treasury) Timothy Geithner was in charge of when the rich bankers got their $700 BILLION dollar “bailout.” And remember, that bailout was “needed” because the bankers scammed America out of billions through the mortgage bubble and watched their companies crumble under an unsustainable outcome.
In other words, they ripped us off for billions, then when the money ran out they came back and robbed us again through TARP. Then, when that wasn’t enough, they once came back and started robbing us through TALF.
The bailout theft happened very quickly. In a matter of years Americans were robbed of everything, leading to a depression (yes, we’re in a depression and government is printing money to hide it). The steps are pretty easy to see.
They started out small, with the government throwing a few hundred billion in public money to prop up genuinely insolvent firms like Bear Stearns and AIG. Then came TARP and a few other programs that were designed to stave off bank failures and dispose of the toxic mortgage-backed securities that were a root cause of the financial crisis. But before long, the Fed began buying up every distressed investment on Wall Street, even those that were in no danger of widespread defaults: commercial real estate loans, credit- card loans, auto loans, student loans, even loans backed by the Small Business Administration. What started off as a targeted effort to stop the bleeding in a few specific trouble spots became a gigantic feeding frenzy. It was “free money for shit,” says Barry Ritholtz, author of Bailout Nation. “It turned into ‘Give us your crap that you can’t get rid of otherwise.’ “
If someone came to you with a Chevy Corvette that was gutted, had no engine and the frame was bent up in an unrepairable manner, would you buy it? Not only did the government buy it, they paid an amount that would have been accurate if the car was in perfect condition.
That my friends is insanity. Well, it appears to be insane, but it would only be insane if it wasn’t intentional. Don’t forget, Henry Paulson, Ben Benanke, Timothy Geithner and the rest of the thugs running the game are all in on it.
Their circle of friends include all the people running the big financial institutions in New York. And those friends are now once again stealing taxpayer dollars through programs like TALF.
Before you stand up and walk away from your computer in disbelief, there is more… and it’s much, much worse.
A key aspect of TALF is that the Fed doles out the money through what are known as non-recourse loans. Essentially, this means that if you don’t pay the Fed back, it’s no big deal. The mechanism works like this: Hedge Fund Goon borrows, say, $100 million from the Fed to buy crappy loans, which are then transferred to the Fed as collateral. If Hedge Fund Goon decides not to repay that $100 million, the Fed simply keeps its pile of crappy securities and calls everything even.
You see how it’s all a set up? Come on… these guys aren’t idiots. When they created this beast they knew full well there was no incentive to actually pay back the money.
Going back to the Chevy Corvette analogy… If instead of purchasing that car, you asked me for a loan at the “perfect condition” value and I gave it to you, what incentive is there for you to pay me back? In fact, you would be stupid to buy back the car. And I would be an absolute idiot for giving you the loan in the first place.
Unless, of course, the money I used to give you the loan was not my money. In that scenario, nether of us really lose anything. The only party that loses is the party the money originally belonged to.
And that party is the American taxpayers.
Christy Mack is still sitting on some $150 MILLION of that initial “loan.” Again, there is no incentive to ever pay it back. And there is no oversight to ensure it’s all being used for its intended purpose.
Meanwhile, how is Christy’s husband doing over at the bank?
Those kinds of deals were the essence of the bailout â€” and the vast mountains of near-zero government cash turned companies facing bankruptcy into monstrous profit machines. In 2008 and 2009, while Christy Mack was busy getting her little TALF loans for $220 million, her husband’s bank hauled in $2 trillion in emergency Fed loans. During the same period, Goldman borrowed nearly $800 billion. Shortly afterward, the two banks reported a combined annual profit of $14.5 billion.
The Rolling Stones article should be damning and should have Congressional hearings happening right this second. Someone should be in handcuffs and the entire mob should stand trial.
But where is the outrage? Where is Michele Bachmann and all the other “tea party” members of Congress?
Wake up, America. Your future and the future of your entire family is being stolen right in front of you. And our Congress isn’t doing a damn thing about it.