bobomite

The Last Days of Morgan Stanley

Wow listen to the day traders gettin' all uppity when a bank nationalization is discussed.

Don't hear that kind of "that is irresponsible" tone when other, non-bank company futures are discussed on this blog.

Let the banks fail, next banks will remember what a 9-1 reserve ratio is.

Is the $700 Billion Really for Bailing Out the Fed?

This is one of the better articles I have read on the root of the problem.

Interestingly no one has proposed issuing actual, debt free US currency to simply buy these distressed banks. The US had a very successful debt free currency from the Revolutionary War until it was eliminated in 1971. It was called the Greenback.

The largest of these distressed banks who need a bailout are the owners of the shares of the Federal Reserve System. These shares pay a 6% annual dividend. This is information available on the Federal Reserve website.

This bailout is simply the Fed desperately trying to stay alive by sucking cash directly from the taxpayer. If we demand equity from these banks for this cash, we will start buying back the right to issue our own currency.

Don't let them get this money without handing over equity.

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PS, Wyoming: The Treasury does print the paper, and the "Fed" buys it for the cost of printing, and then sells it back to the US at interest. This is the beginning of the debt spiral we now see unwinding.