Excellent Financial Article

In case you have not yet read this excellent post by the Wandering Economist, I strongly, strongly suggest that you do. I wish I could copy and paste the entire article here, but when the post is merely a click away, why not just see it? I'll give a sample.

Hundreds of Billions of dollars have been directly injected into the largest banks in the country with more than a Trillion more in guaranteees. What has happened so far? Banks reserves have gone up, way up, but lending has only inched forward by the tiniest fraction.

... My quess is that the banks are totally insolvent. That’s right, the banks have huge loads of unfundable liabilities because of their leveraging against sub-prime and other bad debt. The debt snowball that has been created is sneaking up behind them to bite them in the behind.

... I suspect the FED will inject LUDICROUS amounts of capital into the system. I also suspect that this money will not be made real by the external purchase of U.S. Treasuries. Nope, I susupect they will begin to monitize their own debt on behalf of the good people of the United States.

The Wandering Economist hit the nail on the head with this:

They are trying to prop up a system that is, or should be, at the end of its useful life. Keep in mind that I am not one of those people who hopes for the end of this system. I know the two likely outcomes and they both stink. Outcome #1, we all end up in debt slavery to a private banking system. Outcome #2, we end up in anarchy. I’m too old to play Mad Max. I’ll take a crash that injures us all bad enough that we stand a chance against the evil banking system when its all over. If we end up with outcome #2, I’m afraid we won’t even get a chance to play.

This essentially sums up, in a perfect little nutshell, all that I have been warning about the crash, the bailouts, and the eventual outcome of this economic setup. And yes, I am calling it a setup- it is nothing less. There are powers-that-be that have a vested interest in destroying America Land of the Free and creating America, Inc. That's just a nicelittle word for fascism, the fascism that has been so neatly and perfectly planned and is chugging along right on schedule.