Greenspan Suggests Yet Another 750 Billion For Banks!

Greenspan Suggests Yet Another 750 Billion For Banks!

moneynews.newsmax.com

Former U.S. Federal Reserve Chairman Alan Greenspan said on Friday that U.S bank lending will not return to normal without a big injection of public or private capital.


"The restoration of normal bank lending by U.S. banks will require a very large capital infusion from private or public sources," Greenspan said in a conference at the Mexican resort of Acapulco.


Bloomberg reports that Greenspan estimated that banks will need “north of $750 billion” in fresh capital. While some of that may be raised by increased bank cash flows, he said a “deep hole” remains.

(visit the link for the full news article)


Related News Links:
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What??
This is insane! I thought that we just gave ??? I can't even keep up with what the current figure is, and this nimrod is already saying that we will have to pay even more?

Is there a reason that this number 750 Billion keeps coming up. Is it so that we will loose count of just how many 750 billion dollar bailouts there are?

How much money is there in the world? I wonder what percentage of the wealth currently on earth has been spent in the last month?

Is this really just a sign of those in the know getting what they can while they can, before the dollar is totally useless?


moneynews.newsmax.com
(visit the link for the full news article)

This will never stop now.. we have invested so much into these corrupt banks that the government riks collapse if the banks fail.. america is being sold to the bankers. the american people will now be forced to pay the never ending bill, we cant stand for this...this spells the end of our country

I guess Mr. Bubbles wants a bubble of money for the banks. I hope we all have given up on the bubble machine theroy that this guy believes in because it just makes things worse. Its time for the pipper let them fail if they fail break them into tiny peice. We can't afford to big to fail or bubbles anymore.

they will keep spending and spending and spending until we live in shacks with no money at all. greenspan should be dropped off a bridge

$750 billion? You don't say. That's awfully convenient, don't you think?

The budget blueprint President Obama will present to Congress on Thursday leaves open the possibility that he will need an additional $750 billion in bailout money, according to senior administration officials familiar with the plan.

Link

just goes to show you anyone can be an economist. you dont even have to complete high school. amazing these people have the highest degrees in economics and dont know crap

reply to post by Swatman


They're in denial. They're looking at this and saying, 'we're too smart for our system to blow up in our faces like Zimbabwe.'

They still think they can find a fix. They can't. The best move is to let it happen. The cure is worse than the disease in this case. We're all going to be far worse off in the long run with these stimulus packages and bailouts than had they done nothing at all.

This is the best line from the article:

"The restoration of normal bank lending by U.S. banks will require a very large capital infusion from private or public sources," Greenspan said in a conference at the Mexican resort of Acapulco.

So, as the citizens of this country worry themselves sick about financial stability the people responsible for this fiasco are ON VACATION IN ACAPULCO!! I'm glad Greenspan could take the time off from chewing peeled grapes to suggest that we give $750 billion more dollars to corrupt, arrogant and inefficient banks.

That one sentence really says it all for me, the plebeians toil and die while the patricians drink and copulate. God bless America

Talk about a fleecing.

I found this snippet today too and it'll be interesting, if true, to see where it leads.

www.opednews.com...

I noticed that several prominent financial services firms that received TARP funds last year also appear on the recently-released list of counterparties to be paid by AIG from bailout funds.

These firms include AIG International, Bank of America/Merrill Lynch, Goldman Sachs, JP Morgan Chase, Morgan Stanley, Wells Fargo/Wachovia, and possibly others. The total of counterparty payments due to these firms from AIG appears to be at least $30,900,000,000.

This presents the possibility that some of these firms could have applied for and received TARP funds last fall, in anticipation of defaults by AIG; and are now in line to receive payment by AIG. Thus, they stand to be paid twice, with the money for both payments coming from taxpayers.

reply to post by Britguy


That's the next shoe to drop. The media has made some mention of it, but it appears they aren't quite sure how to play it yet. The political fallout from that one is going to be huge compared to this bonus mess.

[edit on 21-3-2009 by vor78]

reply to post by vor78

$750 billion? You don't say. That's awfully convenient, don't you think?

Link to quoted story

Do ya think?
We should know by now that when there is a possibility that they can get Another ahem.. 750 billion. That it will just so happen that they need 750 billion. I'm quite sure that if the possibility was for 10 million or say 10 Trillion it would magically be just the amount needed. Hmmmm

I myself would rather face the depression that is going to happen anyway.
Stop spending now and push through it and emerge with a sound economic model with something of actual value supporting our currency.

I really do think that we are seeing a Wealth Grab here to steal as much of the value as they can from the dollar before it collapses. If they then used these trillions to invest in something tangable now Before the dollar is fully collapsed, something like gold perhaps. They will be Bazillionairs.. And WE THE PEOPLE Will be penniless and destitute..

101st ranger's with parachute in.
You wont even know what hit hit you.
2nd SAS will smash you.
China you don't have a hope.

Great. Wonderful.

How much of this are they going to siphon off to their CEO's as bonuses this time?

150 million? Maybe 200?

Goes to show what a vice-like grip the Banking institutions have on the United States government, when even in a financial recession they instigated, we're still paying them money through the a**.

If anyone had anyone doubts at all that Banking houses don't run politics, well, eat your heart out.


[edit on 21/3/09 by The Godfather of Conspira]

With out a full accounting of where the money is going it is hard to say if this is simply the last act of a government looting the treasury or if this is a desperate act of a government who foolishly through successive administrations both democrat and republican argued the virtues of a virtual global economy.

The truth is that the big banks similiar to AIG who wrote a huge percentage of their policies to underwrite and insure foreign loans on foriegn property have themselves made foreign loans on foreign property and taken loans from foreign banks and lenders to do so.

When our domestic banks engaged in this practice become insolvent and collapse the loans they have taken out from foreign entities then of course default and worsens the economic crisis internationally. As those countries then scramble to try to bailout their own systems creating inflation in their own currencies in the process and possibly increasing taxes on their own citizens to pay for it, the citizens of those countries loose purchasing power along the way that then further erodes the global economy as well as ours because they can no longer afford to buy foreign made products, goods, or services.

The isolationist trade policies favored by most governments during the first Great World Wide Depression lengthened it, as poor people from nations around the world could not afford to or in many cases were not allowed to buy foreign made goods. Many countries desperately tried to grow their economies from within their own borders and all of them failing at it because without the infusion of foreign capital for exportable goods and services all they could do is print more currency domestically and further erode it's value through inflation in the process.

It seems an unfair burden on the American citizen and taxpayer to pay for the foolish practices of our banks and insurers to help minimize the damage to the global economy their risky practices have and are causing.

The reality is our nations road to recovery is going to be a lot longer and harder if it includes measures that don't consider the impact our business practices have had on the global economy and make their roads to recover a lot longer and harder in the process too. The currency they print to bail themselves out of our broken contracts and missed payments only creats an errosion of their currency and inflation in their markets as well, making it harder for their average citizen to make purchases that then in turn would have contributed to global recovery.

America has foolishly put to many eggs in one basket by promoting an economy that is almost entirely built on lending, insurance and service.

The problem domestically is that lenders and insurers get paid on the front end of transactions not when loans and policies mature. If you write a 100,000 loan you are going to get paid for writing it the day the loan goes through, what matters to you is writing the loan, not that the loan preforms. The same thing with insurance, like AIG, if you write a 100,000 policy you get paid the commission and profit for doing that the day the policy is put into effect. Banks, lenders, insurers pushed loan after loan, and policy after policy through, because each one represented a pay day on the day it went through. The bigger the loan and the bigger the policy and the riskier the loan and the riskier the policy the bigger the pay day!

In fact they pushed so many through that to recapitalize they would sell the loans and policies as investments often to foreign investors and governments with cash on hand who wanted to cash in on the seemingly never ending money to be earned by simply loaning money to others who would pay back more than they were given in time and in theory.

The banks and lenders instead of keeping capital on hand to service bad loans and to pay and ensure their depositors and investors, just kept lending and lending and looking for more and more capital to lend.

The people making all this money not only had plenty of money to spend in restaurants and retailers but so much as to make service segments of the economy profitable enough to sustain large numbers of people employed in them at lower wage jobs able to live on and budget those wages for a lesser form of independent but seemingly secure existence.

The construction boom kept many more people working and the wages it created kept many more service industries moving along domestically as well.

The reality is that the people in the service industries simply aren't paid enough money to maintain the debt they were taking on to compete with the Jones family and enjoy a quality of life every advertiser kept pushing on them and every lender kept figuring out a way to lend them the money to enjoy.

With no real manufacturing base of our own, to earn lucrative profits, to pay a living wage, the only people making better than a living wage were those people pushing loan after loan and policy after policy not because the loans or policies made good business sense, but because each one earned the individuals making it happen a lucrative payday that someone else further down the line would have to take the responsibility on.

The line stretched so far that the people at the end of the line were as often or not living in China or Europe who kept investing their living wage and profits in a system that to everyone seemed good enough to be true even though it wasn't.

I do believe the big banks are afraid to admitt to Americans their consumer base just how much money they do owe to foreign investors and how undercaptilized they truly are as a result. As the secretive Fed prints up batch after batch of money to pass it to them so they can maintain their individual foreign debt for the sake of maintaining a global economy we still are not positioned or working on positioning ourselves to have a secure and productive and truly profitible role in, we are individually now being saddled with the burden of bailing everyone else out in the world for taking advantage of our own foolishness.

The real scandal here is not that all this is taking place or the money they are pumping into this system of global commerce to maintain our credit ratings and good standing in it.

The real scandal is no one is speaking to the truth of it or admitting the scope of it, and the biggest scandal of all is that as a result no policies or procedures are really being put in place to ensure the risky practices don't continue on in the future, and to restore in the meantime the kind of manufacturing base that has made China rich enough to be America's worried creditor, that our Tax dollars are having to pay off funelled through the banks that created the debt with them. The debt to fuel our own foolish system, that imagines American's don't really have to create and build things, but just loan and insure to others while the rest of us say coffee, tea or me, to those engaged in the process, if we aren't otherwise engaged in some support function of that primary process.

The scandal is that all this is being used as an excuse to once again make the government bigger and to give it more control, that though doesn't make it more efficient or run anywiser, it just ensures we will always bail out their foolish mistakes because they have so much control on us.

The real scandal is most of the bailout money going into worthless government programs when it should be simply made available to any American who wants to create a manufacturing business that could create goods for sale internationally to earn currency instead of borrowing currecny to sustain our economy.

Everyone else is being rewarded in this system that is fueled off of the average Americans ignorance and complacency. That's the real scandal!

reply to post by ProtoplasmicTraveler
WOW,
Your whole entire post is amazing.
Phenomenal insight to our situation. I only regret that I have but one star to give.

Superb.

So now, How do we get out of it, or can we?

This is why you dont feed Bears, cause they will keep comming back for more! If Obama goes along with this I think it will leave little doubt that he is atempting to destroy our county, then maybe we wil see how stupid we where for leting the enemy in the front door!

Originally posted by AlienChaser
reply to post by ProtoplasmicTraveler
WOW,
Your whole entire post is amazing.
Phenomenal insight to our situation. I only regret that I have but one star to give.

Superb.

So now, How do we get out of it, or can we?

Thanks my friend! I just call it like I see it, and the sad thing is no one really wants us to see it, but to profit off of the confusion and fear such crisis create in the minds of most people.

Ultimately it's only the truth that sets anyone and even a nation free. Those who refuse to see the truth, speak to the truth, and accept the truth are bound as slaves in the dark that a palatable lie consigns them too.

The truth is if you shop at Walmart you are just as responsible for the mess as CitiGroup, AIG or the government. We all bristle that they won't take responsibility for their actions honestly, even while we refuse to not only take our fair share, but refuse to even see how our own individual shortsightedness and lack of awareness played right into everyone elses hands.

Rome wasn't build in a day and it wasn't destroyed in a day. It took a lot of days to destroy Rome by the citizens and rulers whose personal glory and wealth came to mean more to them than admitting the truth of their own limitations and wisely factoring them in.

The sky is only the limit, when you have limitless ways, supplies, and ability to get there.

Staying there...well that requires even more! After all cloud nine is not what you would call the sturdiest of foundations!

Great job Alien Chaser of chasing down the subjects and actions that are turning our world the wrong way!

reply to post by ProtoplasmicTraveler

As a side note:
I used to work for a company that refers to itself as "see edit", well I still do but my division of about 300 people were told 6 or 7 weeks ago that we will be "experiencing a reduction of force" which is the corporate way of saying you no longer work here.

They were very pleased to tell us that they were able to find a way to keep us employed through the end of April which just so happens to also be the end of tax season which is an extremely busy time for us considering that nearly all policies nowdays are owner allocated into the stock market. Yes people dicovered during the Clinton years that you could make A LOT of money from your insurance policy by investing in the right stocks.

I constantly feel the pain of front end commisions, and so do my clients. All an agent wants to do is write new business, so much so that it led to the creation of my very department. Which is basically a clean up crew for the agents messes. We try to save the people from having to surrender policies that should never have been written. it is very similar to the housing crisis in that the agent(bank) is more than happy to write a policy(loan) without regard to the clients ability to maintain(repay) the contract. the trap is that while the stock is good the policy can support itself and even generate profit, sometimes a great profit.

But as with all thing bubble. When it rains it pours and the only way out is to surrender the policy. Do you know what happens when a policy is surrendered? An URGENT memo is sent to the managing director of the local agency, and an agent is dispatched to solicite new business from the same client who has just lost everything they had invested. Touting the virtues of the latest and greatest product, and getting paid again for the new contract.

I truly get emotional at some of the heartbreaking stories, especially the elderly who are more easily convinced, and who are devestated when they find out that they are now left with nothing after they had spent 20, 30 or more years of their life working for and counting on the promise that was presented by an agent who certainly new that it was unaffordable at the time of sale.


**decided against posting company name**

[edit on 3/21/2009 by AlienChaser]

Originally posted by AlienChaser
reply to post by ProtoplasmicTraveler
WOW,
Your whole entire post is amazing.
Phenomenal insight to our situation. I only regret that I have but one star to give.

Superb.

So now, How do we get out of it, or can we?

The only way out of it is hard. It's hard because it requires citizens and not just government to be responsible. We have to stop buying foreign made goods and make it unprofitible for domestic companies to manufacture abroad to increase their profits that they don't reinvest then in wages and increased facilities and jobs domestically. We have to stop supporting retailers domestically who pander these goods.

It's important to understand that what these goods have really done is hide inflation from the American consumer. You could buy a button down dress shirt at Woolworth for 12.00 made in America in 1970 that was a good quality shirt, with good buttons, and stitching and cloth that would last several years. In 2008 you could still buy a 12.00 button down dress shirt at Walmart that was made with inferior workmanship and materials in China with buttons that will easily crack and break, stitching that will pull apart after a few wearings and washings and cloth that will discolor and wear thin in less than a year.

You think wow, life is great, I can still buy a shirt for 12.00 dollars all these years later. The reality is that if you could find an American made shirt made to the same quality and durability as that 12.00 American made shirt in 1972, it would cost you about 120.00 dollars.

That's the real rate of hidden inflation. They hide true inflation in producing cheaper and cheaper goods from cheaper and cheaper sources, while maintaining their own overall profitibility but never having to increase the living wage along the way.

They do that in part for two reasons, one is the greedy manufacturers, and retailers, but also just importantly is pressure from the lenders who want to loan you that 12.00 for the cheap shirt and make 18% off of it too in the process that know your non-living wage can in theory pay them back for a 12.00 cheap foreign made shirt, but could not afford to pay them back for 120.00 quality made in America shirt without either demanding a living wage yourself, the the service industry most Americans work in work on a much smaller profit and can't afford to pay as high of wages as manufacturers can and performance based payers like banks, insurers and investment brokerages do.

The reason service industry segments can't charge higher in their markets is because they do are burdened with the cost of hidden inflation. You can't hide the inflation in gasoline and tomatoes that need gasoline to be harvested and shipped and packaged.

The real rate of inflation is evident in gasoline and farm and grocery products that are dependent upon it and most service industries revolve around using gasoline and food products.

It really is a conspiracy by the rich and the government to keep wealth or as much of the wealth concentrated in as few as hands as possible and to keep the average person out of the political and policy making process in the meantime. Politicians have to by their own nature consider the few with the wealth to make or break their careers, they don't have to consider the people of little or no means that can't make or break their career, and they don't have to worry about people who can't afford gas to get to work, to get all the way to washington to rebel.

The late sixties proved to the Government and Powers that be, that an overly afluent America could be a poltically active America and nothing ruins a President's day more than looking out the oval office window and seeing half a million people who had enough money to get there and enough money to leave at their leisure waving signs that say WE DON'T LIKE YOU. It makes them very nervous and that radical political mobilization of the young was only made possible by and large through the affluence of their parents who even as blue collar workers had a real living wage, with real disposable income through manufacturing jobs that unions negotiated a living wage.

Everyone kinds of gets real upset when you shoot live bullets into their children at the Universtity like at Kent State. Solution, slowly erode the quality of life and purchasing power of the average American so the average American can no longer be a threat to the insitution of government or big business when they take exception to how it's running.

Let crime soar as a result so that today the average American would be afraid to hitchhike to Washington D.C. to protest, because they sure can't buy a ticket there in this economy and they sure can't risk loosing their job by taking time off if they are lucky enough to have a job, and they sure can't borrow any more money because the banks have cut them off.

The solution lies actually in each American stopping the constant game of pretend that one party or one president is going to change a system that is bigger and more entrenched than one party's or one man or woman's ability to challenge.

The solution lies in seige warfare. The government and big business has conducted seige warfare against us, keeping our wages deliberately low, keeping us in debt, and seeing that the average person has access to enough cheap illusionary junk, and distracting entertainment to not notice just how eroded the foundation of their individual castle has become.

The reverse is Americans finding creative ways not to pay any more in taxes than they absolutely have to, to stay out of trouble, and to not support any business that erodes the overall way of life. If they sell foreign goods, don't buy the foreign made goods, don't buy any good they sell. If they engage in risky lending practices keep your money in a small local one or two branch bank that can't and won't take those chances with your money. If the restaurant employs illegal immigrant labor, don't eat at that restaurant.

They have our system under seige, we reward their system for it.

America can be prosperous again and free again when the people themselves realize it's each and everyone's responsibility to employ common sense in that proposition and that our government has no common sense but is an entity that simply wants to perpetuate, expand and increase it's own control for its own sake.

Reverse the seige and starve out the players who have us under seige. Don't work if it's not for a living wage. If no one will work or shop at a business that doesn't pay living wages then...guess what, they won't have a business.

America has ceased being America because Americans no longer want to responsibly act like Americans. The Government and big business couldn't get away with the majority of this stuff if it weren't for us rewarding them by paying them.

It took the powers that be 38 years slowly chipping away at the stone to make America this weak and pliable.

It would take 10 to 15 very hard years of Americans, being Americans to restore it.

The government is not going to give us the answers or solutions that empower or free individual citizens, they are only going to give us the solutions that weaken and make citizens dependent upon it.

Anyone who believes otherwise at this point is going to continue being part of the problem. People wise enough to see that can be collectively part of the solution by redevoting themselves to the responsibility of being a citizen, not a citizen that just complains while doing all the things that enable the errosion of their livelihood and freedoms, but one that does the things that makes it impossible to erode their livelihood and freedoms.

That is the only solution.