By: Devvy
September 18, 2008

© 2008 - NewsWithViews.com



few more comments about the financial meltdown because it's moving fast and fluid:

"About $2.8 trillion of market value was erased from global stocks this week as Lehman Brothers Holdings Inc. filed for bankruptcy, Bank of America Corp. purchased Merrill Lynch & Co. for $50 billion, and the U.S. government took control of American International Group Inc. in an $85 billion takeover to prevent the biggest financial collapse ever. Russian Banks. Russia halted stock trading for a second day and poured $44 billion into its three biggest banks in a bid to halt the worst financial crisis in a decade." [1]

The underlying debt is still there even though the average American really has no idea what all this means, yet. Yesterday gold jumped dramatically

"Gold surged the most in nine years as investors sought the safety of precious metals on concern that the credit crisis will deepen, leading more financial institutions to fail. [2]

While the incompetent Nancy Pelosi sputters the Democrats had nothing to do with this current crisis, [3] she left out

"The current mortgage crisis came about in large part because of Clinton-era government pressure on lenders to make risky loans in order to “make home ownership more affordable for lower-income Americans and those with a poor credit history,” the DC Examiner notes today. “Those steps encouraged riskier mortgage lending by minimizing the role of credit histories in lending decisions, loosening required debt-to-equity ratios to allow borrowers to make small or even no down payments at all, and encouraging lenders the use of floating or adjustable interest-rate mortgages, including those with low ‘teasers.’

"The liberal Village Voice previously chronicled how Clinton Administration housing secretary Andrew Cuomo helped spawn the mortgage crisis through his pressure on lenders to promote affordable housing and diversity. “Andrew Cuomo, the youngest Housing and Urban Development secretary in history, made a series of decisions between 1997 and 2001 that gave birth to the country's current crisis. He took actions that—in combination with many other factors—helped plunge Fannie and Freddie into the subprime markets without putting in place the means to monitor their increasingly risky investments.

"He turned the Federal Housing Administration mortgage program into a sweetheart lender with sky-high loan ceilings and no money down, and he legalized what a federal judge has branded ‘kickbacks’ to brokers that have fueled the sale of overpriced and unsupportable loans. Three to four million families are now facing foreclosure, and Cuomo is one of the reasons why.” (See Wayne Barrett, “Andrew Cuomo and Fannie and Freddie: How the Youngest Housing and Urban Development Secretary in History Gave Birth to the Mortgage Crisis,” Village Voice, August 5, 2008)." [4]

There can be no financial stability as long as we have a debauched currency and a corrupted monetary system:

"To be sure, when Americans are told that "justice" and "the rule of law" require them to forfeit their accumulated savings and economic security to the very institutions and individuals who enticed them out on the financial limb that the Establishment then sawed off, justifiably violent animosities towards the powers that be will arise among some citizens. For most victimized Americans, though, politicians, bankers, high finance, big business, and the intelligentsiia will finger scapegoats on whom wrongly to pin the blame for the crisis and its aftermath. This will generate increased confusion, recriminations, conflicts, and social chaos; and further divide, disarm, and ultimately defeat the forces that, if united, might effectively oppose the Establishment.

"In addition, rather than disseminating demands for sound money and honest banking in order to deal with the crisis, the controlled media will orchestrate calls for massive increases in the supply of fiat currency and credit, ostensibly in order to enable common people to pay their debts. Of course, this will necessitate the maintenance of fractional-reserve central banking to emit the new currency, as well as the creation of more, more, and even more debt to serve as "security" for these emissions--thereby perpetuating the cause of the crisis and ensuring that further crises will break out later on. In this way, credulous Americans will be duped into chaining themselves to new debts in order to pay off their old ones, rendering permanent their financial indentured servitude to the Establishment. March 21, 2005 [5]





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