By The Daily Bail
UPDATE – Chcek out regulator William Black’s blistering reaction to this story HERE.
This story from Bloomberg just hit the wires this morning. Bank of America is shifting derivatives in its Merrill investment banking unit to its depository arm, which has access to the Fed discount window and is protected by the FDIC.
This means that the investment bank’s European derivatives exposure is now backstopped by U.S. taxpayers. Bank of America didn’t get regulatory approval to do this, they just did it at the request of frightened counterparties. Now the Fed and the FDIC are fighting as to whether this was sound. The Fed wants to “give relief” to the bank holding company, which is under heavy pressure.
This is a direct transfer of risk to the taxpayer done by the bank without approval by regulators and without public input.
By Numerian posted by Michael Collins
The consensus is in and there is strong agreement: the US economy is on the path to a sustained recovery. 2011 will be a year of surprises on the upside, and 2012 will be even better. Among a list of the top 25 economists surveyed, not one of them predicts a recession in 2011. There is hardly any investment strategist or economist to be found who sees any risks serious enough to derail the US economy. Here is just a sample of the consensus thinking that is to be found in end-of-the year forecasts: (Image)
*Economists in universities and on Wall Street have raised their growth projections for next year. Retail sales, industrial production and factory orders are on the upswing, and new claims for unemployment benefits are trending downward. Despite persistently high unemployment, consumer confidence is improving. Large corporations are reporting healthy profits, and the Dow Jones industrial average reached a two-year high this week. – New York Times Continue reading
By David Reilly
The idea of secret banking cabals that control the country and global economy are a given among conspiracy theorists who stockpile ammo, bottled water and peanut butter. After this week’s congressional hearing into the bailout of American International Group Inc., you have to wonder if those folks are crazy after all.
Wednesday’s hearing described a secretive group deploying billions of dollars to favored banks, operating with little oversight by the public or elected officials.
We’re talking about the Federal Reserve Bank of New York, Continue reading
Posted in Economy Economics, Neoliberalism, NWO, Obama and Company
Tagged AIG, bailouts, bank crime, banksters, bernanke, class war, federal reserve, Geithner, secret government
By Jim Hightower
Great news, America! Having just celebrated Labor Day, we can now bask in the revelation that our long economic nightmare is over. Forget recession, much less a depression, our country is poised to spring into a new era of financial prosperity!
We know that this is so because we’re being told so by top economists, Wall Street bankers and others in the know. To put the icing on this happy economic cupcake, President Obama even interrupted his Martha’s Vineyard vacation late last month to announce that he was reappointing Ben Bernanke to a second term as chairman of the Federal Reserve banking system.
Posted in Economy Economics, Labor, Neoliberalism, NWO, Obama and Company
Tagged bankster bailouts, banksters, bernanke, class war, corpo-gov, New World Order, obama corporatism
By Jeff Wilson
Results of a recent survey released by Rasmussen Reports show that 75% of Americans support thoroughly auditing the Fed.