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Governments are instituted among Men,
deriving their just powers from the consent of the governed,
That whenever any Form of Government becomes destructive of these ends,
it is the Right of the People to alter or to abolish it,
and to institute new Government

Tuesday, February 09, 2016

The term NEGATIVE INTEREST RATE is precisely why Lehman 2008 Occurred

Well, since we killed Glass Steagal, beginning with J Carter’s stripping of FDR’s redlining higher risk mortgages to protect banks, as racist, and then killed it off completely making savings banks and commercial underwriting operations one and the same (and it was sold at the time in order to make American banks more ‘competitive’) - we all know the orgy of ‘financial product’ invention, marketing and orgy of derivative products and the insurance industry this spawned (the movie follows the book almost exactly - which is a factual bio of the people who saw through it all).
We then bailed out the people who invented the worldwide disaster to the tune of $13,000 for every American family.

So now things have REALLY gotten so bad as a result of  (in order) the bubble, bailout, higher capital requirements of banks (killing loans), loss of confidence, loss of demand, loss of production, loss of savings and then loss of more loans, all of which required the fed to nearly STOP charging interest since while injecting (printing) $$ into the system … the Feds now want to CHARGE you for you HOLDING your money in a bank.

NEGATIVE INTEREST RATE. CDO, Credit default swaps, Tranche, Collateralized Security .. all terms which obfuscate the reality of the ‘product’ or action.

Telegraph UK:
The Bank of Japan joined the negative interest rate club at the end of January. Japan, along with Denmark, Sweden, Switzerland and the eurozone are effectively penalising commercial banks…. Negative rates, coupled with weak earnings growth in some of the world’s largest lenders, and concerns over new EU “bail-in” laws designed to force investors to take the hit from bankruptcies, all weighed on bank shares.
You may have heard this is ‘LIMITED’ to commercial banks, but this will have to be passed on sooner or later, and we all should remember CYPRUS, where desperate commercial and other banks levied private accounts because the govt could NOT bail them out, and the EU WOULD NOT..

I have been seeing articles for a week indicating this is REALLY under serious consideration, because these people are PETRIFIED it’s all going to go to pieces (right in front of a presidential election…AGAIN), and they will have BOTH an economic crisis (WORLDWIDE) and a political crisis. So their brians are screaming at them “DO SOMETHING”.

Ergo, this brilliant idea, which Americans who retain ANY confidence in banks will interpret as a ‘get all your cash the day it arrives by pay or from your 401ks safe deposit box stimulus program‘ or we will see the home safe and gun industries EXPLODE into the sunshine of ever more rapid growth.
The govt will get its wish of cash not laying around in banks doing nothing, and instead we will hoard every cent we can, away from the govt eye because we will be certain the next step or the one after that will be … COMPULSION.

Negative interest is already confiscation.

The banks have been named TBTF. This mean they CANNOT fail. This means the govt of the political class will act to ensure they do not.

One way or the other. They will BELIEVE in what they do. They will BELIEVE their own words.

You know, the Arab Spring.

Say, isn’t it funny where libertarian, true conservatism and Marxian verbage meet?

One hope is that some people think the Feds don;t have a legal basis for this

Fed May Lack Legal Authority for Negative Rates: 2010 Memo

But that’s never really been a problem for this current version of govt which exists by executive fiat, justified in its own head by lack of willingness to compromise with it, and depending on the opposition to stop them by court invention on behalf of that ‘flawed document’

This time, though, they are talking about something that white, black, asian, latino, muslim, christian, jew, zoroastrian, sikh, buddhist, and every bokononist cares about.

YOUR MONEY YOU GET EVERY 2 WEEKS. Your pension  and social security you get once a month.

Is there ANY confidence left in the the govt of the USA?
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posted by Epaminondas at permanent link#


Anonymous Anonymous said...

I'm fuming! On Feb 2nd I made a mobil $2,068 deposit on a USAA checking account. The money left my bank on the 3rd. The money was put on hold of TEN DAYS on that account. I just called USAA because I figured USAA was using the money for seven days, while my daughter is fuming at school, and asked them to lift the hold. It turned out it is the Federal Reserve who is holding the money. USAA has not received the money yet! The hold for local checks used to be two to three days. When was it changed to ten days?

In the end, Bernie is right ... They are bleeding us to death.

Tuesday, February 09, 2016 6:20:00 pm  
Blogger Pastorius said...

Yeah, I'm starting to feel more and more like you.

Yesterday, Trump went off on a total Socialist rant against "big business, Pharma," etc.

I find that is just another reason to vote for the guy.

I know he's not anti-Capitalism. So I suspect his solutions would, at the least, be closer to being things I would agree with.

Tuesday, February 09, 2016 6:33:00 pm  

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