Obama's bank plan is 'doomed to failure'



The Panic Button Has Been Pushed Posted: Jan 22 2010 By: Jim Sinclair Post Edited: January 22, 2010 at 1:55 pm
Filed under: General Editorial
Dear Friends,
This administration has its head in rarefied Wall Street air. They honestly believe the reason they lost Mass. was public anger at the banksters alone. Now they have set things in total flux both for the re-nomination of Bernanke and the loss of their bankster’s backing, but also at a time when the Supreme Court declared no limits on corporate political giving.
Unleashing those corporate political funds will result in a battle bigger than the health bill in the sense of lobbyists over new banking rules.
All of this is meaningless looking forward to the November 2010 elections. All that counts is jobs, jobs and more jobs.
What is clear here is that the panic button has been pushed by the administration who still thinks they live in Wall Street, not Main Street. Be assured that Volcker understands the systemic disaster we are in, and will do nothing to pull the plug on the mountain of OTC derivatives. He is simply too smart for that.
Getting the banks out of the guaranteed risk business is a long term correction, but still not the basic problem. The horse is out of the barn, the damage has been done and there is no immediate or medium term fix in taking the banks out of the OTC derivative business.
The basic problem that still exists is the fraudulent OTC derivatives produced since 1991 that are yet to be addressed in any manner or form except through the capitulation of FASB, which permitted falsified values. All that did was make the situation worse.
Nothing that has occurred is dollar positive.
The economic reason for the dollar rally was the bullish Christmas financial party prediction that is simply non-existent and therefore not sustainable. It is a business activity bottom bouncing experience that can easily have its bottom plug pulled now that everything has been sent into a state of flux.
Stay the gold course. Things are becoming more, not less of a mess, and it is not hard to see. Only gold can guarantee you against the madness of our financial leadership. Remember the big economic lie works if repeated loudly again and again, but when the public feels the pain of the big lie it collapses in on itself. The man who invented MOPE made that statement. It proved true politically in the German campaign against the Russian winter. It imploded in Germany in 1944.
Economically it is appearing thin now. The voters have rebelled.
Respectfully, Jim


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