The FED Pays Banks Not to Loan TARP Funds!

You have to watch this video. Hat Tip to the Market-Ticker.org forum for pointing this one out:

http://www.youtube.com/watch?v=qvZRVNZ5zeY

It spells out in CLEAR language that banking institutions are being PAID for parking the TARP funds at the Federal Reserve via interest earned.

This is OUTRAGEOUS! In one corner, we have Obama telling the sheeple that the recession is nearing "the beginning of the end." In the other corner, there are Federal Reserve personnel that are purposefully holding up TARP funds from entering the market.

There are TONS of small businesses that need funds to MEET PAYROLL. But they can’t get the funds because the banks would rather earn interest from the FED than use the money for the purpose intended!

Lies on top of theft on top of fraud on top of misdirection...it will not end until you get mad enough to stop paying for this insanity!!

If they lie about the money and where it goes, what makes you think that you can trust them with YOUR AND YOUR FAMILY'S HEALTH!!

My take on the July Rally...

First off, this is not financial advice. These are my OPINIONS and,
being they originate from a human, are prone to errors of understanding.

This recent run up is simply a case of short covering and a massive bear
market rally.

There is nothing FUNDEMENTAL holding this thing up. Which means if you
are buying into it, your position is very likely to turn into something
that resembles Wiley Coyote right after he runs off a cliff and hangs in
mid air for a split second.

Stop watching Jim Cramer and turn off CNBC. Do your own research!

2Q09 = 4th Qtr of Declining GDP

MarketWatch reported this little gem on Sunday: GDP Declines for 4th
Consecutive Qtr
<http://www.marketwatch.com/story/gdp-set-for-4th-straight-decline-econo
mists-say-2009-07-26>

The story goes on report that the last time this happened was during the
great depression.

The math says that we have to experience an explosion of economic
growth, not Gov't related, for GDP to catch up to the burgeoning
deficit. But reality says that is not going to happen.

Why? That is a VERY good question.

1. The consumer (70% of GDP) is still cutting back.
2. Financial losses have not been recognized and priced into the
market
3. Consumers + Businesses are waiting to see what legislation
passes before they spend any cash
4. Continuing Federal Deficit as tax revenues decline

Tighten up your belt Chuck; this winter is going to be long and cold.

Its economics STUPID!

Here is the proof that the Congressional leaders of our country do not fundamentally understand the laws of macroeconomics.

House.Gov HealthCare Flow Chart

I circled where our Reps in Washington D.C. start to go astray:

Notice how they plan for tax revenue to come from two sources: Businesses and Consumers.

MORONS! Businesses simply pass their tax burden onto consumers through price increases! End the end, the consumer pays TWICE!

Here’s the real kicker. There is no value added! All those new taxes do not add efficiency or value, but instead go to pay for that bureaucracy labyrinth shown in the PDF file. So WTF are we paying for?

One word…Socialism.

The Black Swan event in front of US

There are so many happenings over the past few days:

-- Sotomayor praised for her “empathy”

-- Cap and Trade and all that insanity

-- Universal Healthcare…so many issues with this one

-- GoldmanSach’s publically documented shenanigans

-- $2 Trillion Gov’t deficit by the end of ‘09

-- Just today the www.Market-ticker.org points to the possibility of a $23 Trillion exposure to the US via the bailout bill

I might come back and say a few things about each of the above topics, but my past today is to acknowledge a Black Swan event is coming. I personally think it is the total and complete reset of American society, as we know it today.

The reason I say this is due to all efforts taken by The Powers that Be (TPB) to decrease this nation’s standard of living by destroying its capacity for creating REAL and VALUABLE assets in the future.

The increase in the standard of living is the measurement by which economists measure the true economic growth of a nation. You could have a 150% increase in GDP YOY for 10 years, but if 99.99% of all the citizens in that nation are missing the basic elements to SURVIVE, the true economic value of that economy is almost nothing.

You cannot deny that the incentives to become a self-sufficient, value-adding member of society are QUICKLY disappearing. As soon as enough people stop adding value to the system, it can no longer support itself or its people. We are moving ever more rapidly toward this event.

Why Consumer Spending Reports are Misleading

This was presented by Karl Denninger on his BlogTalk Radio show and I present it to you.

But first, 3 main points to remember when tackling this little piece of truth:

First, know that the Consumer Spending Report is a report that “reports” to how well you and I are spending our disposable income.

Second, know that the moratorium on banks foreclosing on properties is coming to an end.

Lastly, know that a “non-performing” mortgage and the way it is report on bank financials can be redefined because and there fore changes the $ impact of the reporting QTR. A pre-crisis non-performing mortgage was delinquent in 30 -60 days. Not any more, it is delinquent whenever the bank feels like reporting it as non-performing.

Why the Consumer spending reports are a farce:

If the bank, by Presidential mandate, halts the foreclosure process, that puts the (would be) mortgage payment back in the pocket of the consumer. Since one out of 10 people (rounded up) don’t have a job, they are doing two things with that cash. They are either buying necessities or they are paying off debt.

Here is where the report starts fibbing. If you have a credit card with a $10K limit and your monthly unemployment check is ½ of your recent salary (or worse, your check has stopped coming), the credit card is now the breathing tube keeping said household alive.

The mortgage payment is used to pay off the life line credit card to sustain a standard of living. What would normally look like discretionary credit card spending is actually necessity spending and does nothing to GROW the economy.

Now the other side. If you were the bank (assuming the bank is the originator of both the mortgage and the credit card), would you rather foreclose on and write down a loss for said property or keep the occupant there and have them pay their 25% APR credit card every month? One is a performing line of unsecured credit and the other one is secured debt but is an instant loss if foreclosed and collected..

Decisions. Decisions.

Right now, the accounting rules say that the secured debt does not have to be recorded, so bank hold off. Hey, they are just following the rules. And you really don’t want to piss off the stock holders with that nasty little right down on the foreclosed property.

OK FINE, BUT WHAT IS THE POINT, you ask?

The whole point of this little thought experiment is to show that either way, a loss is a loss is a loss. More and more people are living off DEBT than creating value in the economy. Anytime debt rises in an economic environment, the assumption is that new more valuable goods and services will be created.

What the US is facing now is a formula for economic reversal: exponential growing amount of debt combined with crashing asset values. Take that and apply a future that does not promise an increased standard of living for several generations.

Ok, so what is the solution?

I will get back to you…in the mean time, try Atlas Shrugged by Ayn Rand as a little lite reading.

TARP will NEVER end per Geithner

This video is an EYE OPENER. It is originally posted on www.Market-ticker.org

Watch the whole thing but especially pay attention to the last little bit with Timmy Geithner

He admits that the 700+ Bailout legislation that was past is a NEVER ENDING line of credit that can be used for any economic purpose the Treasury deems is crucial to support.

What is truly horrible is the questioning representative says, “This is the way you understand the bill that was passed.” Does this rep (and by extension the ENTIRE House and Senate) not understand the inner workings of the bill?

If so, WHY WAS IT PASSED?!

This is a must see.

Its No Joke: Stimulus 2 is Being Kicked Around

You people are insane. Yes, I am talking to all the SHEEPLE who think Universal Healthcare is cool, the economy is growing “green shoots”, and “climate change” is caused my humans.

You are being spoon fed rubbish because either 1)you are too stupid/ignorant to say “hey, this isn’t right” or 2) you actually think Obama (and his cronies) has the answer to everything!

Well, I have news for you. The next spoonful is coming so stretch out those cheeks because this is one heaping load.

According to CNBC, Stimulus Two is being considered. http://www.cnbc.com//id/31772150

Here is a question that the Obama Presscorp would never allow: WHERE IS STIMULUS ONE!!! Hello! McFly!!

Where are all the “shovel ready projects” that Obama promised? Where are the 500K+ jobs that were supposed to be created (not saved)? Why is the unemployment rate screaming past 8.9% and is now 9.5%? Why is ACORN scheduled to receive BILLIONS of dollars in aid while Americans are losing their jobs?!?!

Folks, this stuff is not rocket science (as you are lead to believe). Last summer I told my peers that a New New Deal was coming and the unemployment rate was going to 8% - 10%. If a free thinking, actively investigative, capitalist minded American can see this stuff 12 MONTHS IN ADVANCE, why can’ our overlords in CONgress and the SINate do the same!?!?

It is simple, because they think you are sheep that love to be lead around. Only this time, they are leading you to the rear of the barn to be pillaged and slaughtered!