Bear Stearns was the first sacrifice of many to come - We want more blood

Source: www.sfgate.com.../c/a/2008/03/23/MNOMVOG0E.DTL

Faced with the threat of a massive economic meltdown last week, the Federal Reserve ... offered emergency loans to securities firms, agreed to take mortgage debt as collateral, and brokered a fire sale of collapsing Wall Street giant Bear Stearns.

Now that the Fed has calmed the economy's troubled waters, investors and economists are left wondering whether the fix will prove to be a Band-Aid or a breakthrough.

Simply put, much of Wall Street has become gun-shy about lending money as the infection has spread from the defaults of risky, subprime loans that lie at the heart of the economic problems. That crisis of confidence brought Bear Stearns to the brink of bankruptcy. It also has hammered consumers applying for mortgages and businesses seeking loans. Precious little liquidity is available.

Step right up folks, come see the great American ponzi scheme in action.



Bear Stearns sold for 1% of it's previously assessed value. Why did the fed decide to devalue the securities giant, Bear Stearns, to 1% of it's value? Well 1% is the amount of money that the Federal Reserve bank keeps as security on the money that it lends to the biggest banks. Essentially the fed repossed Bear Stearns assets when the smaller bank became unable to pay it's other creditors on demand.

The fed wanted to make sure that the whole house of cards didn't come tumbling down all at once as banks lost confidence in eachother.



Now all of the other smaller banks are running scared. They all loaned out more money than they should have. They are all supposed to keep 10% of the money that they loan out to consumers on reserve. I suppose that means that they are supposed to re-invest in the federal reserve with short term treasury notes, keep cash or gold on hand or invest in short term bonds. With falling real estate values thier reserve is dwindling and they are calling loans due on each other. Basically they don't trust each other. They sold each other bad debts in bad/good faith. During the good times thier cash registers were ringing and the banksters wives were a singing.

Quite frankly the banking failure is just one element of a failed system. Wall street thinks that it will be business as usual. I have news for them, it's not over.

The greed epidemic has spread into every corner and facit of our society. Greed, born out of a lack of security, has infected everything.

Here I wrote a poem about it.

Poison the food and water supply, land and air, sell them drugs; all in the quest for profit. Prey upon the people, destroy thier lives, put them in debt, take away thier hope; all in the quest for profit. Feed them propaganda, warp thier minds, destroy thier ability to reason; all in the quest for profit.

Pass more laws, restrict thier freedom, spy upon them; all in the quest for profit. Sue thier business', tax everything, let them extort eachother; all in the quest for profit. Bribe thier officials, export thier jobs, create oppressive regulations; all in the quest for profit. Start more wars, kill thier children, destroy thier cities; all in the quest for profit.

Imprision them upon this planet forever; all in the quest for profit.

Subjugate them to your will lord; all in the quest for profit.

Enjoy your future for as long as it lasts.

"Federal reserve bank to implode 4 years ahead of schedule"
www.abovetopsecret.com...

They play hardball, we play hardball.

Here's a short recommended video.
"Evil International Bankers are Running The World"
www.youtube.com...

[edit on 23-3-2008 by In nothing we trust]

The real facts will never be disclosed, the Fed and JP Morgan-Chase
will see to that....


i doubt that the buying BearStearns for $30Billion had anything to do
with stopping a domino effect of Bank-Runs, (as in Lehman & Goldman Sachs to follow)
that makes for a nice cover story that's all.


No, the Fed was also punishing BearStears (after allowing a lot of the top stockholders in BSC to unload a sizeable ammount of the $180+ billion
in shares, before the $2.00 agreed upon sales price) punishing them for
not being a team player in the last two crisis' (LTCM was one).



There is something more than meets the eye going on with the London
& Swiss Banks who are pulling the strings of the US Fed.



achieving a well tuned, orchestrated financial organ appears to be a major point....(weeding out the rogue elements of the system)...
then amassing paper debt which is based on a real asset, rather than
'IOUs' in the form of Treasuries....As The Dollar continues the process of a Managed Devaluation !

www.muckraked.com...

Bear Stearns CEO Blames Media: Echo of “Rumors and Speculation”

"When it comes to assigning blame for his firm’s collapse, Alan Schwartz, the president and CEO of Bear Stearns, borrows a page from Countrywide CEO Angelo Mozilo:

Blame the media.

While Bear Stearns was “adequately capitalized and had a substantial liquidity cushion,” the firm imploded due to the weak credit market and “the unprecedented speed at which rumors and speculation travel and echo through the modern financial media environment, the rumors and speculation became a self-fulfilling prophecy,“ writes Schwarz in his prepared testimony for today’s Congressional hearing. "

That's it. Blame it on the media and, ultimately, the little guy. Way to kick 'em when their down! (oh, crap... I'm in that kickee group...)