pharma

Warren Buffett Is Wrong on Fed Intervention in Bear Stearns

People sometime forgot that Mr. Buffett is a businessman. He runs and takes care of a very large investment company. His company is not much different from Goldman Saks and other investment banks. Therefore, the Fed is his business partner.

Consequently, the main driver behind every single statement he makes is well-being of his own company. So, do not be fooled by his appearances. He is not a monk. He is a very shrewed businessman.

Finally, big businessmen are all politicians! Do you trust them?

Bear Stearns’ Bailout by the Fed, JPM: A Century Old Conspiracy

"Of course no one can present any facts about this so-called conspiracy because there is no conspiracy."

Wowed by Fed, do you need a signed by Fed Chief confession?

Fed is NOT a part of the federal government. Fed is a private entity. Therefore, it defends and promotes special interests of its members [that is major banks].
Do you need any other proof?

Bear Stearns’ Bailout by the Fed, JPM: A Century Old Conspiracy

"if you do not trust the politicians, who do you vote for?"

The answer is simple: I vote for the least evil or don't vote at all.

Bear Stearns’ Bailout by the Fed, JPM: A Century Old Conspiracy

Just a brief note.

What a coincidence:

- In 1913, the Federal Reserve Act was passed. The banking cartel was born with the full protection of our own government as its partner.

- The First World War started in 1913

Bear Stearns’ Bailout by the Fed, JPM: A Century Old Conspiracy

"How about all the other central banks in the world, are they also conspiring with the US Fed?"
No, but they have their own governments to "guide" them in a "right" direction.

During the last few years, US iBanks distributed to their employees and owners through compensations and bonuses well over $100B. Not bad.

Closely working with hedge funds, iBanks rip off zillions $$$ from the US economy and its citizens. Good many hedge funds managers were getting billions dollars in annual compensations. Did these people do anything useful to the society in general? Hell no!

This time, these "rubber barons" did not rip off just Americans. This time, they rip off the entire world.

Consequently, the era of US dollar, as the world reserve currency [or a very useful credit card for the US government], is about over. The USA may have a huge domestic trade deficit but US foreign trade deficit is about to shrink dramatically. Not too many will be ready to extend credit to a thief.

Bear Stearns Shareholders Sacrificed for the Economy

Were Bear Stearns problems so catastrophic? I don't think so.

Everything is looking very fishy:
- Wednesday, BSC CEO said there was no any liquidity problem
- Thursday, the CEO said it was a liquidity problem
- Friday, JPM and Fed inject liquidity into BSC. The BSC liquidity problem is solved? No, BSC declared a run on the bank.

How convenient:
- JPM got all BSC assets for just $235M and Fed took all $30B+ liabilities.
- BSC management gets their $1B is severance payments and bonuses
- Fed create a new entity: Banks can get as much cash as they need and/or want [Why could not Bear Stearns get liquidity from this Fed entity]
- Look at Fed's timing
-- Fed moved against BSC late Sunday
-- Monday, there is a general panic with rumors that Lehman was about to go under...
-- Tuesday, before the market opening, both Lehman and Goldman Saks report there are NO any liquidity or any other problems. Fed knew it!!!

It appears that
- There was no any run on BSC
- Fed needed a "good" excuse to cut interest rates by 1% and engage $-printing presses to max speed and, at the same time, protect American banks from potential foreign takeovers

Conclusion
BSC was just a fall-guy to scare everybody into more rate cuts, printing more money, and selectively bailing out banks including iBanks. [Note that iBanks are not regulated by Feds.]

Mr. and Ms. America were just ripped off big time one more time. Well, Feds don't give much about America, its economy and/or its people.

The great Con game is going on!

PS
I am 100% sure that Bear Stearns affair is not over yet. It will be very messy.

Bad News for Bear Shareholders Is Good News for the Markets

Poor Ben...This lying scumbag told us just 6 months ago: "Sub-prime problem is no-problem"

- He prints money like there is no tomorrow.
- He bails out Wall-Street whose thieves enriched themselves beyond comprehension and ruined the US economy and its industrial base. Ben does NOT ask them to return their loot!
- The totally bogus inflation numbers are keeping a lying game to go on
- Wall-Street rating agences are still in business and still are cooking lies

If these lies are the solutions to a catastrophe the USA is in then there is "no light insight"!