Show Notes

• Archived Blog Post

  Date / Time: 9/26/2008 1:39 PM UTC

  Panic in America! Economic calamity, baffled constituents and rebellions within the parties
  

  
  

  Crisis, Financial Crisis, Threat, Financial Pearl Harbor, Financial Panic, Market Crash, call it what you want. 

  AAPP: It's ugly folks... My thought is, think about where your liquid assets (cash) is right now, and handle your business accordingly.

  OK, let me be more specific, Get your money and place it in a fire proof home safe.

   

  

  In America yesterday it' was like "The Day the Earth Stood Still - Part 1." A divided Republican Party as reported by Politico.com with "some House Republicans are saying privately that they'd rather 'let the markets crash' than sign on to a massive bailout." More HERE. All of this going on, as the dollar slipped throughout the world. 

  Newspapers, like the San Franciso Chronicle are reporting on how "The United States Congress faced on one side the possibility of economic calamity and on the other angry and baffled constituents and rebellions on the flanks of both parties. At the White House five weeks before the election, the two presidential candidates, Democrat Barack Obama and Republican John McCain, met to hash out the plan with a deeply unpopular president who soon will hand over to one of them the responsibility for carrying out a rescue of the world's biggest financial system." More HERE

   

  

  Now we learn that there is a big problem with the Bush administration's pitch for a sweeping bailout of the financial system.

  As reported by The Washington Post, "almost 200 academic economists -- who aren't paid by the institutions that could directly benefit from the plan but who also may not have recent practical experience in the markets -- have signed a petition organized by a University of Chicago professor objecting to the plan on the grounds that it could create perverse incentives, that it is too vague and that its long-run effects are unclear. Sen. Richard C. Shelby (Ala.), ranking Republican on the Budget Committee, brandished that letter yesterday afternoon as he explained his opposition to the bailout outside a bipartisan summit at the White House. The petition did not advocate any specific plan, including that offered yesterday by House Republicans" READ More HERE.

  This is crazy folks, now we learn that Washington Mutual was shut by the federal Office of Thrift Supervision, and the Federal Deposit Insurance Corp was named receiver. The closure happened after customers withdrew $16.7bn from accounts since Sept 15, leaving the bank "unsound,'' according to the OTS.

  The seizure and sale of WaMu is the latest step by the US government attempts to save a banking industry brought to its knees by toxic mortgage debt, while negotiations over a $700bn bailout of the entire financial system stalled in Washington last night.

  Since the sub-prime crisis started, a series of bank takeovers and failures have transformed the American financial system and wiped out hundreds of billions of dollars of shareholder value.

  These include the rushed acquisitions of Bear Stearns and Merrill Lynch, government takeovers of mortgage companies Fannie Mae and Freddie Mac and the insurer AIG, and the bankruptcy of Lehman Brothers. More HERE

  
  

  As I said, It's ugly folks... Get your money and place it in a fire proof home safe.
  
  
  

  Read more at African American Political Pundit.com
  
  
  • Tags:
  • Crisis
  • Financial Crisis
  • Threat
  • Financial Pearl Harb
  • Financial Panic
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