World Sounds Off On American Casino Minds

US 'casino' mentality blamed for planet's meltdown

SOURCE

SAO PAULO, Brazil - Astounded by the U.S. government's failure to resolve the financial crisis threatening the foundations of the global free market, fingers of blame are pointing at America from around the planet.

Latin American leaders say the U.S. must quickly fix the financial crisis it created before the rest of the world's hard-won economic gains are lost.

It's harder for European leaders to point the finger directly at the United States since many of their financiers participated in the recklessness. London was home to the division of failed insurer AIG that racked up huge losses on credit-default swaps, and many reputable European banks disregarded risk to load up on higher yielding subprime assets.

In an unusually blunt statement from the 27-country European Union, EU Commission spokesman Johannes Laitenberger said: "The United States must take its responsibility in this situation, must show statesmanship for the sake of their own country, and for the sake of the world."

The crisis also has strengthened voices in France and Germany calling for EU regulations to eliminate highly deregulated financial markets, despite objections from Britain, which along with the U.S. is considered by some to practice a freer form of "Anglo-Saxon" capitalism.

"This crisis underlines the excesses and uncertainties of a casino capitalism that has only one logic — lining your pockets," said German lawmaker Martin Schulz, chairman of the Socialists in the EU assembly. "It also shows the bankruptcy of 'law of the jungle' capitalism that no longer invests in companies and job creation, but instead makes money out of money in a totally uncontrolled way."

Numerous Politicians worldwide have now sounded off with their opinions on the state of Wall Street and their 'casino style' business practices.

Now I wish to present the post from Karl Denninger today, I think it speaks to us all. Apologies to Mods for full quoting due to the nature of the information.

You have heard that its all "American Gambles"

You have been told repeatedly by George Bush and Henry Paulson that this bill is about a "rescue" of Main Street, not Wall Street.

You have been lied to repeatedly.

The bill The Senate intends to try to ramrod down your throat is neither about Main Street or really even about Wall Street.

You are going to get VERY angry. Sit down before you read further.

""Hundreds of billions of dollars are going to bail out FOREIGN INVESTORS. They know it, they demanded it, and the bill has been carefully written to make sure that can happen." - Brad Sherman , D-California"

That's right folks. You are going to have $700 billion - about 25% of the total federal budget - put on your personal credit card (via taxes forever) in order to bail out foreign investors.

Oh, and the best part of it is that the underlying assets involved do not even have to be in the United States!

Here is the definition of a "troubled asset", right from the bill:

"(9) TROUBLED ASSETS.—The term ‘‘troubled assets’’ means— (A) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability;

and (B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress."

Notice that conspicuously missing from the definition is the requirement that the asset's underlying thing (that is, the property that was mortgaged, etc) lies within the United States. Also note that Treasury must tell Congress if they add "new types" of debt, but that Congress has no right of review or censure.

That is, it is perfectly legitimate under the bill for a foreign bank to sell or swap any "crap sandwich" it may hold (irrespective of how or where it originated, so long as a mortgage is the basis for it somewhere) with a bank domiciled in the United States, and said bank may then "PUT" it into the TARP.

Note also that Representative Sherman said on Kudlow last night that when this was raised with Secretary Paulson he was told that if Congress tried to restrict the ability of the Secretary to purchase assets "laundered" in this fashion from foreigners, that the bill would be vetoed.

Here 'ya go folks.

You better make this viral and spread it to everyone you know.

Right here, right now.

You better get on the phone to your Congressfolk at www.house.gov... and www.senate.gov... and make clear that you will not stand for this bill being passed.

IF THIS BILL PASSES YOU WILL WIND UP EATING $700 BILLION OR MORE - REMEMBER, THIS IS A REVOLVING CREDIT LINE, NOT A MAXIMUM AMOUNT - OF FOREIGN BAD DEBT FROM THE CHINESE AND ELSEWHERE.

THAT'S RIGHT - THE PURPOSE OF THIS BILL IS TO SCREW YOU, THE AMERICAN TAXPAYER, BUT OFFLOADING ALL OF THE TROUBLED DEBT AROUND THE WORLD ONTO YOUR HEADS!

ARE YOU GOING TO LET CONGRESS GET AWAY WITH THIS?

YOU HAVE LESS THAN 48 HOURS TO STOP IT.

NOW YOU KNOW WHY IT WAS SUCH A "RUSH JOB" - THE AMERICAN PEOPLE WERE BEING CONNED OUTRIGHT BY BOTH PAULSON AND BUSH.

PERIOD.

48 hours ...

Wednesday and Thursday for Congress to return from the Jewish New Year.
Friday through Monday to change the bill and vote.
Tuesday, October 7, 2008 -- The financial Titanic sets sail.

Ha! Every single other country with a privately owned central bank is in on it too. Not just the US. That is why Europe and Japan are in deep doo doo also.

The US banks couldn't sell the mortgage-related junk securities domestically -- everyone knew that it wasn't good. So the banks unloaded them world wide. Why would Americans who don't speculate but work for living bail out stupid foreign investors who wanted to get richer but were not smart enough and bought that junk? The message to German President Angela Merkel who has the nerves to council the Congress what to do is this: Bail out your own ass, hon.