PODCAST-TRANSCRIPT-WEEKLY-UPDATE-2009-APRIL-17 (FRANCONOMICS.COM)
Anatomy of the hidden bailout of $6.7 trillion by the Federal Reserve, California Unemployment is at 11.2%, etc.
Obama went on his scheduled tour to the Carribean and to Mehico, and we at Franconomics.com got to most of the trillions of dollars that the greedy bankers looted, are looting, and will loot, until they are satiated. So, if the U.S. GDP is close to $14 trillion US Dollars, guess how much value the greedy pigs from Wall-Street, and their associates, as in mortgage loan companies like IndyMac and Insurance agencies like AIG looted from the gullible American? Hold your breath ---- our initial estimates point to more than $7 trillion dollars from the Fedreal Reserve, and at least $2.5 trillion from the US treasury. Hmm, almost $10 trillion dollars in real bailouts??? But won’t you think that is fair, considering that banking gave 40% of all corporate profits last year? Now what do these banks do again? Well, they don’t manufacture anything. Well, you are wrong Sam. They manufactured the Credit Default Swaps. Didn’t you read that in Finance? Hmmmm….
So, until we publish the second in our Value Drain series of articles, these numbers are rough estimates. But they provide a glimpse into how the elites, the real inside traders, are looting the gullible American. Oh Yes, it is not Martha Stewart who should have gone to jail for insider trading, it should be these thains and blankfeins who should be jailed instead… for these are the real inside – traders…. Again, we are attacking a free market gone greedy and corrupt beyond redemption; and we are not attacking any individual per se. So, please chill…
In the last few podcasts, we zoomed in on how AIG bonus was attacked, but the Goldman bonus was allowed to be consumed, right? In similar vain, while the media has been raising hue and cry over the $700 billion bailout and the $787 billion stimulus --- these are two different and separate bailouts by the way; what needs to be uncovered, unraveled, and brought to the forefront of this financial crisis is the extra-ordinary multi-trillion dollar complex rescue package by Dr. Bernanke and the Federal Reserve --- $1.8 trillion to buy commercial paper, $540 billion to buy mone market funds short of cash, one trillion dollars in TALF-term asset backed securities loan facility, $1.45 trillion in housing related purchases from Freddie and Fannnie, This totals to $4.8 trillion in Federal Reserve’s plan to buy up toxic assets --- and this is over and above the pPiP which we uncovered last week. Additionally, $1.9 trillion have been planned as new LENDING by the Fed: included are $620 billion in expansion of SWAP lines, and $900 billion in Term Auction Facility. 4.8 trillion plus 1.9 trillion adds up to 6.7 trillion, or close to 7 trillion dollars in bailout or rescue by the Federal Reserve… Let me say it in different words, 7 trillion dollars is 10 times the 700 billion dollar bailout of 2008.
So folks, before listening to the mainstream media that the economy is turning around and a new bull market is on its way --- we will cover the markets, this time globally, towards the end of this podcast --- let’s digest the fact that this financial scam which originated with mortage fraud and mortgage backed securities being fraudulently sold and resold by Wall Street Bankers; is huge, huge. The Federal Reserve is pumping in almost 7 trillion dollars, I just did the math for you, the treasury will be pumping in at least $2.5 trillion in pPiP of $1 trillion, the TARP bailout of $700 billion, and the bailout stimulus of $ 787 billion. And everything, except miniscule portions from the stimulus, are targeted at directly benefiting the financial sector. Now you tell me, should these Goldman bankers be allowed to digest their multi-million dollar bonuses they pocketed last year? And should they be given golden parachutes when the are let go, because they mis-managed their businesses??? Why should the American taxpayer or the Federal Reserve fund the Goldman bonus? If I were the Secretary of the Treasury, I would pull this bonus money back into treasury by putting a punitive tax of 100% on all Wall Street bonus for 2007 and 2008.
Now let’s add some fuel to the fire. California unemployment is now at 11.2%, and unemployment officially in Silicon Valley, where this podcast is going out from, is at record 11%. Hmmm. On the housing front, foreclosure moratoriums are over. Nationwide, One in every 159 U.S. households with mortgages got a foreclosure filing in the first three months of this year, as per RealtyTrac. We have a saying here in California, as goes California, so goes the nation…. California, Florida, Arizona, Nevada and Illinois accounted for nearly 60 percent of U.S. foreclosure activity in the first quarter, with a combined 479,516 properties receiving filings. That is half a million families, folks. For the records, foreclosure Filings for the quarter marked a record high, jumping 24 percent from the same period a year ago. OK, let’s combine the unemployment data of 6 million Americans drawing unemployment, an all-time record, with half a million new foreclosures this past quarter, and what have we got? A recovery, or riots on the streets?
Now, lets take a look at markets world-wide. For the week, the stock and bond markets were mostly flat, with Dow Jones climbing less than 50 points to close at 8131, the 10-year treasury yields staying put at 2.93%, and the 30-year treasury yields going up five basis points for the week to close at 3.80%.
The Dow has now climbed for six weeks in a row, and is now up 22.7% since its weekly low of 6626.96 set six weeks ago on March 6, 2009. Let’s see how the markets have faired world-wide in the same time period. Our calculations show that for the last six weeks, the London FTSE has been up 15.9%, China’s Sanghai SSE Composite has climbed 14.18% and India’s Bombay Stock Exchange Sensex has shot up 32.4%. In the southern hemisphere, the last 6 weeks have been good to stock buyers and bad to short-sellers as well, with the Australia All Ordinaries going up 19.8% and Brazil’s Sao Paulo Bovespa Index rising 23.4%.
OK, as always, let me leave you with a question. In a hurry, if you sweet bad stuff under the rug, at some point you have to take the rug out and vacuum the bad stuff out, right? By buying up toxic assets and lending money to offload more of the same toxic waste which is now sugar-coated as legacy assets, is the Fed, that is the Federal Reserve plus the Treasury; is the Fed sweeping under the rug what is a more fundamental problem --- greedy bankers lunching in White House instead of being subpeaoned, banks with greed as the business model as opposed to service being allowed to continue their unethical and immoral business as usual instead of being regulated and penalized for the financial misery they have brought on millions of Americans; Wall Street in collusion with Washington elites, stealing from you, the American taxpayer in the name of free markets and capitalism, and depositing it in their bank accounts as nice bonus? What can you do to stop this robbery? Is it fair to you??? In your answers are hidden real solutions to this crisis, not in bailouts and stimulus and TALF and TARP and pPIP….
Until we meet again, keep blogging, keep reading, keep talking, don’t take this lying down. I am Sam Mishra from Franconomics.com, and I thank you for listening to our weekly podcast. You have a great week ahead, and stay well. Thank you.
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