Wednesday, June 17th, 2009
To say that it’s the ‘free market’ that creates the business cycle – the endless sequential cycles of boom and bust which we call bubbles (the tech bubble, the real estate bubble, the derivatives bubble, etc.) – is breathtakingly misinformed and highly deceptive. There are no free markets in the world, only markets under varying degrees of state control. Now, more than ever, the financial system needs to be placed on a sound footing, which means – real money and minimal interference in trade while stringently enforcing laws against fraud, including the derivatives fraud that brought down this house of cards. That would go a long way towards curing the ills introduced by Keynesian macroeconomics and the inflationary bubbles that result from money that is not priced to market. Instead, as a cure for these distortions introduced in the fabric of the market we’re given only one choice – bigger government, the nauseating spectacle of the Fed posing as America’s saviour, and rampant corruption as the banking industry seizes control of the economy in one of the most dangerous experiments in social engineering to be undertaken in many years.
Flashback: 10 U.S. banks to repay U.S. bailout money | Federal Reserve To Be Given Sweeping New Powers | 10 U.S. banks fail stress test, but regulators confident | Fed says U.S. banks breezed through stress tests | US to put conditions on bank bailout repayments | Barclays, Lloyd’s, RBS join Goldman-Sachs in the black | Goldman-Sachs to repay TARP loan, resume private operations, bonuses, at “earliest time” possible | Which Banks Will Rule? | Wall Street’s Big Takeover | Obama appoints architects of economic collapse, financial globalism to economic team | Behind the panic: Financial warfare over the future of global bank power | Goldman-Sachs Alumni Hold Reins of Financial System | What Really Killed Bear Stearns? | Bilderberg Seeks Bank Centralization Agenda | Banks face “new world order,” consolidation: report
June 17, 2009
U.S. President Barack Obama on Wednesday unveiled a series of changes to the oversight of the American financial system, in a move meant to avoid a repeat of the collapse that helped drag the economy into recession.
“While this crisis has had many causes, it is clear now that the government could have done more to prevent these problems from growing out of control and threatening our overall economy,” Obama said
Obama called his proposed changes a transformation that has not been seen since the reforms that followed the Great Depression, but he said it would be a mistake to scrap the financial system entirely and start again.
The president said the reforms would give more power to the U.S. Federal Reserve to oversee bank holding companies and other large firms that could pose a risk to the entire economy in the event they collapse.