The incoming Obama administration is considering setting up a government-run bank to acquire bad assets clogging the financial system, a person familiar with the Obama team’s thinking said on Saturday.
The U.S. Federal Reserve, Treasury and Federal Deposit Insurance Corp have been in talks about ways to ease a banking crisis that is once again deepening — and a government-run “aggregator bank” is among the options.
Outgoing Treasury Secretary Henry Paulson and FDIC Chairman Sheila Bair both said on Friday a government bank was one of a number of ideas U.S. regulators had been discussing.
(Article continues below)
The source said advisers to President-elect Barack Obama, who takes office on Tuesday, were also considering the idea of an aggregator bank among a range of options that could be pursued.
David Axelrod, a top adviser to Obama, told Reuters the new administration would have something to say about a fresh approach to the financial crisis in “the next few days.”
January 18th, 2009 at 9:24 am
July 3, 2009 -The threat of social unrest is growing across America as the financial crisis boosts unemployment and economic pain, with both the instability itself and government reactions threatening foreign investors.
Demonstrations were reported turning violent in New York, Detroit and LasVegas this week as well as Miami, potentially a sign of more to come with ruling coalitions coming under threat and future policy becoming unpredictable.
Analysts say states from Michigan to California are already bracing themselves for potential social upheaval, with the more authoritarian leaders most willing to use force to hold their position and with investors facing a range of potential policy shifts that could endanger their positions.
At the same time, if governments fail to contain discontent then that too would be negative for foreign money managers who already yanked record amounts of money out of America, last year, giving American stock markets their worst performance on record.
“At a time when there is already less money in the system, this will really put people off,” said Lars Christensen, head of American markets research at Danske Bank. “These events are happening because of the financial crisis but in some of these markets they are also going to make it worse.”
Some governments such as America have already increased capital controls as they try to protect faltering or free-falling currencies or prevent capital flight, cutting off investors from their money and prompting some to try and get out of such markets before it is too late.
Desperation to avoid a sudden mass devaluation of America’s dollar – which would slash the savings of American individuals – has been the defining factor in America’s scheme to make a series of “mini-devaluations” and spend roughly a quarter of its reserves defending the currency.
That has inevitably unnerved investors who had been counting on those reserves to insulate the country, prompting them to question its creditworthiness.
“It’s a short-term approach,” said Andrew Brown, who helps manage about $7-billion (U.S.) in emerging markets for Aberdeen Asset Management and is underweight on America. “It’s bad for foreign investor sentiment because they should be focusing on improving domestic demand instead of propping up the greenback.”
With hundreds of unpaid workers reported clashing with riot police in eastern America, yesterday, even authoritarian states may see unexpected changes.
Some analysts even ask whether, as the economic crisis touches ever more American and falling oil prices bite, it could begin to erode the two-man “tandem” of Obama and Biden.
But most expect the government to take a strong line with any demonstrations, with the arrest of dozens in America’s eastern port of New York after a demonstration against car import tariffs seen as a potential sign of things to come.
It is unclear whether investors would be more spooked by increased demonstrations or a greater clampdown, with the mass exodus of funds that followed war with Iraq in August a clue to the possible reaction to either.
America had one of the worst performing stock markets in markets last year, damaged by slumping oil prices and worries of political interference, as well as the more general shift in sentiment against markets. Most still see it as one of the riskiest stock markets in 2009.
Analysts expect the American state as a result to boost its support for strategic industries – such as state gas giant Haliburton and defence industries – and possibly bring in other industries under the state in an attempt to boost employment.
“That is likely to be bad news for small to medium-sized firms,” said Tsymur Huseynov, head of the American desk at risk consultancy Executive Analysis. “And it will be even worse news for foreign firms who have factories or investments there.”
Whether a poorer, more troubled America will be more likely to be a more destabilizing or more conciliatory influence is almost impossible to say, analysts warn.
The war in Iraq cast a long shadow across investment in the region, marking the beginning of a sharp deterioration in American assets and a reassessment of risk as far as Florida.
“On the one hand, it might lead to the American leadership becoming more aggressive towards their neighbours,” said Danske’s Christensen. “On the other hand, with less money they may decide they need the West more.”
Looking back to the lessons of the last Great Depression of the 1930s, Goldman Sachs warned America’s economies were already repeating a previous generation’s mistakes by moving toward at least light protectionism.
America has announced tariffs on imported cars, Michigan and Ohio are also considering raising tariffs, Texas has slapped restrictions on at least 500 products and Montana imposed duties on soybean imports to protect domestic farmers.
“One of the key lessons of 80 years ago is that freeing up trade, rather than restricting it, would more likely help a fragile world economy,” Goldman Sachs said in a research note.
Goodam Reply:
January 18th, 2009 at 3:43 pm
That’s exactly what the Elite want, a general unrest, so they can carry out their agenda to it’s completion, so that will give them a big excuse to declare a martial law, and use those concentration camps, they’ve been building for years.
Unless the whole American population rises at the same time, if only pockets of people here and there, nothing is going to change, the population must overwhelmthe police and the army, and every US city has to rise at the same time.
That’s the kind of civil unrest the Elite hates, I don’t know how many of you, remembers the 1989 in china, when the police shot hundreds of people, and which was a very peaceful demonstration, the police deliberately provoked the protestors, and there were over 1/2 of a million people.
Anyway the bottom line is that people have to rise up and literally kick these bastards out of their offices, out of their houses straight to jail where they belong.
pick them individually and toss them in jail, one by one or a group by a group, without letting them operate or communicate between them.
if everybody does his/her bit, we will be able to fight them, like David icke said there are 7 billion of us and really a handful of them.
January 18th, 2009 at 10:14 am
How about a “We The People” bank?
(click my name for protest music)
who am i Reply:
January 18th, 2009 at 10:55 am
I think “they ” shut that one down.
Goodam Reply:
January 18th, 2009 at 3:49 pm
that’s the only way to beat them is for us to stop using their system, we should let it collapse and them with it. if we are using their system we are feeding it.
which means we are keeping them in power, which ever angle you look at it, you’ll come to the same conclusion, we must starve their system, drown their engine, and eventually collapses.
Few things we can do, let’s say even if it was for a little while, we trade within the community, we buy our food from local farmers, every town, every city, every urban area, will do the same, cutting out the middle man, the superstores, supermarkets and so on.
I promise you they need us more than we need them, yes it will probably make our lives slightly inconvenient for a little while, but what are we men and women or mice?
it will get a little difficult before it gets better and confy.
starve the banks, starve the financial system, starve the large corporations, we leave it strictly between people.
January 18th, 2009 at 10:35 am
a bank full of bad assets!!!!!!! shit were do i invest????
January 18th, 2009 at 11:55 am
Does this mean that this Federally based bank will take bad debts and pursue the people with no jobs and jail them if they can’t get their money? Sounds Englandesque to me? Or take family assets etc from people, endenture you to work off your debt?
Goodam Reply:
January 18th, 2009 at 3:52 pm
That’s exactly their intention, and this is nothing compared to the other things they have in store for us.
January 18th, 2009 at 1:18 pm
This is redistribution of wealth!
Energy is not created or lost, it just changes state; this is the most basic law of nature. And, when it does change there is some energy lost in friction; this is also a basic law, which, though we do not know the cause, is real, and beyond our power to change.
Economics is nothing more than energy transfer, from one state to another. Though rarely directly taught in mainstream academia, money or “currency” is the unit of energy in socio-economic systems. It is a “note” or IOU backed indirectly to work product. Theoretically, the base or unit worth of money should be relatively constant over time, improving or increasing only as productivity and life span increases.
Humans create wealth by producing more than they consume; which is done through leveraging of nature and reality. Again, energy cannot be created, so the excess energy, or at least what is being saved at that moment, goes into the system as potential capital. This capital is loaned out, and to make a profit it must be loaned out at an interest rate higher than inflation. The capital that is borrowed must be used to at least break even on the original capital investment, or lose that work product forever.
The United States of America is bankrupt. The capital created by American citizens and industry has been squandered by greedy “executives” both in corporations and government. Wealth cannot be created by printing money, only the dilution of it. As currency is printed each dollar in the world loses it worth proportionally.
There is no such thing as a bailout, only the redistribution of energy, or wealth. As the governments of the world bailout the economies, they are really moving energy or money from one group of humans to another. Not only does this not address the real problem, but exacerbates it, taking money from those that produced more than they consumed, and saved and paid back their debt, and giving it to those that made bad decisions, and by definition do not deserve more capital to squander.
Like usual, the underlining problem, or issue has to do with a society that is consumming much more than it produces, eventually emptying the system of energy, going into deep debt, and then eventually defaulting on their obligations.
What happens from here is anybodies guess, but one thing is for sure, these criminal politicians are not the solution but the problem.
January 18th, 2009 at 1:19 pm
Edmund Burke “An empire is the aggregate of many states under one common head”
They choose their words well!
January 18th, 2009 at 2:05 pm
Free State created jobs and welfare for everybody! ROFLMAO. Got change alright, changed to Communism.
January 18th, 2009 at 2:18 pm
This insanity has to stop. We cannot have someone that is not a natural citizen for President. It is past time to stop this. The man has lied about everything he has said. He changes his mind on each and everything he has said.
We have had too much in the last 8 years to last a life time and here comes something even worse.
Even foreign leaders are commenting on the fact that this man is not from America. What a disgrace and a joke our country has become to the rest of the world.
I realize that this could cause racial wars but it has nothing to do with color and everything to do with legality. Go to http://www.crimesagainstobama.com
My ancestors were here long before the white man came to this country. My husband’s also.
My husband has posted here several times today and yet his comments were pulled and all he quoted was the truth.
We are members and want the truth to get out. We want the constitution upheld.
The Cherokees had their own constitution and our own was in large part based on theirs. My ancestors sat as representatives in the house in Texas.
Please let’s not let this thing happen. We do not and do not want a foreign president.
We need to erase all bad debt and start from scratch. The credit card companies were told time and again the last twenty years to lower their interest rate and they refused. Now they get to to pay the piper with their greed. The American people can no longer pay these payments and if you sit down and look at it you have probably paid off your debt 8 or 9 times before a card is paid off.
We also need to can the derivatives and eliminate them completely. Our money needs to be backed by tangible assets and not make believe money.
Goodam Reply:
January 18th, 2009 at 5:45 pm
Would it be ok if the replacement is a white blond hair and blue eyed man/woman?
the issue has nothing to do with a true citizen or not, Bush was born in the USA, do you see any difference?
Do you think because he is born american citizen it’s ok if he’s going to screw you?
Your comment is off course, find a solid argument, I don’t have a problem with Obama being a Black man, I have a problem with him being crooked, and he works for his masters.
We don’t care if he is white, red, green, black or yellow, but you obviously sound like that’s the only thing bothering you.
Goodam Reply:
January 18th, 2009 at 5:46 pm
The whole system is screwed
Goodam Reply:
January 18th, 2009 at 6:53 pm
RED
I agree with you on one issue, though, the illegalite of this man being a foreigner and wound up president, but it has not yet been established that he is a foreigner, if he has the American citizenship, he is therefore by law entitled to run for presidency.
They say he was born in Hawaii, I am not sure, but I don’t believe you understand where the real problem is.
I think you still believe in the government? you think if you had, a born American citizen for president everything will be ok?
The problem is much deeper, it goes beyond the government, the constitution, the congress, the politicians, and the US, it’s world problem.
January 18th, 2009 at 2:40 pm
This is like letting Bill Clinton hand out the towels in the freshmen girls locker room!
Or maybe letting Bushy doing the same in the boys locker room!
January 18th, 2009 at 3:02 pm
Hey, everybody, take special notice of the ethnicity/religion of ALL the government power brokers mentioned in this article:
Hank Paulson(Jewish) – Secretary, U.S. Treasury Department
Sheila Bair(Jewish) – Chairman, Federal Deposit Insurance Corporation(FDIC)
David Axelrod(Jewish) – Senior Adviser, Barack Obama Administration
Benjamin Bernanke(Jewish) – Chairman, Federal Reserve System
WTF?!
Goodam Reply:
January 18th, 2009 at 5:37 pm
Yes ?
and don’t tell me you just noticed that?
for many generations it was the case there’s absolutely nothing new
same thing in Hollywood, and many other places, and that’s world wide
so where’s the surprise here?
but these are the forefront people, the ones behind are the real owners.
January 18th, 2009 at 3:16 pm
Everywhere you look on prisonplanet, you see the message: Obama = change.
Alex Jones wants you to feel sleepy, sleepy…
You WILL believe that Obama = change. You will NOT remember the jewish holocaust of non-jews in Gaza.
You WILL believe that Obama = change. You will NOT remember the jewish holocaust of non-jews in Gaza.
You will NOT notice how hard Alex Jones is pushing the message of his sponsors.
You will NOT notice how hard Alex Jones is pushing the message of his sponsors.
Goodam Reply:
January 18th, 2009 at 6:29 pm
Innocent until proven guilty
if you can provide some proof, to run a radio show, requires money, it’s good to be suspicious, it’s also good to keep an open mind.
Here’s something to chew in meantime, if you are one of the reptilian or alien theorists
Why do they sell mars bars, is it a sign, is it a manifestation?
hummmm I wonder, because I do not believe that things happen by pure chance.
January 18th, 2009 at 3:27 pm
So Obama wants to set up a special government bank to buy bad assets. In other words you and I the tax payer will now be part owner of a bank that only invests in shit. Hmmmm interesting idea.
January 18th, 2009 at 3:44 pm
This report is way too vague.
One thing that wasn’t announced was, if this government run bank would be able to issue any new kind of currency to ‘acquire’ these ‘bad assets’. This could be the way the elite will try to offer their new Amero. And if they do, will this currency be debt based, fiduciary, or simply fiat. (Most likely debt based….again.)
The other major questions are (if there is no new currency talked about):
1. What good would it do for the government to ‘acquire’ bad assets? The government has no money. It can only print more or tax the public. If taxes go to acquire these bad assets, then it’s more typical Communism in America. More printed money is Communism plus a nice dose of more inflation.
2. What would be the repercussions, if any, to the people whose bad assets were ‘acquired’?
Would this be an option open to the people who owned the assets, or would it be forced on them? Also, the government could easily use a new law (that would be created along with their new government run bank) to its advantage to propose anything from harsh repayments (with more interest and penalties) to prison time.
I’m disappointed in Reuters, usually their articles are more specific than this. If anyone has any answers to these questions free to reply.
January 18th, 2009 at 4:57 pm
The only solution is to return to God
http://www.youtube.com/watch?v=M35c–rBrQI
Goodam Reply:
January 18th, 2009 at 6:40 pm
Yes, but remember God will only help those who help themselves
January 18th, 2009 at 5:31 pm
The one thing, that we all must agree on, is this Elite always denies charges, and always places symbols around us, as a reminder of their power, which automatically puts us to sleep.
The only reason that this “so called depression” is affecting people is because they haven’t freed themselves from it, until they do, nothing will ever change.
This is slightly off topic, for many many years, their symbols all around us, and yet many people can see them without realising what they’re there for.
Let’s take an example, US always denies not trying to build an Empire, can anyone here explain to me, why is the tallest and probably oldest building in the USA is called “The Empire State Building” ??
which empire are they referring to?
The money that is printed out of the thin air is not backed with any valuable metals, this Elite made the system, by putting the Federal reserve, taking over the bank of england, creating the world bank, the european bank, and so on they are all linked, they put some money into circulation, but there’s never enough of that money to pay back the debts.
The Corrupt government will borrow and borrow.
It’s like someone goes out and borrows money under your name, and spends that money, when it’s time to pay it back, they will knock on your door, he gets away with the money, they will recover that money, which is printed out of thin air, as well as taking away all your possessions.
You house which is real
you car which is real
your belongings which are real
that is exatly what the federal government is doing and 99.99% of governments around the world do.
Basically if you look at your government as a prostitute, nothing less, they prostitute themselves for a fake power, and try to be a good boy in the eyes of their Masters.
The real masters are not just the Banksters, but they are only one portion of the Elite, the head of the Elite, could be found in a place called the Vatican.
The black pope, his generals, the Cia, the SS, the MI5, the Mossad and many more around the world.
The SS gave birth to the CIA, the FBI, and many sub divisions.
Anyway corruption is the key for their success, but they other means too.
Intimidation, assassination, double crossing, any evil thing you can think of and more…
January 18th, 2009 at 6:12 pm
The whole concept of a “bad debt” bank is anathema to a capitolist society.
We have already shown that the gov’t has no concept of banking (moneylending) through it’s misusue of Fanny and Freddy and such misconceived notions as CRA (Community Reinvestment Act)- all of which were geared towards making loans to people who had no business borrowing money from “We The People”
We The Peope have no business being in the banking business. These Lawyers (LIARS) that are running Congress have no business straying from their Constitutional limits.
Instead of a new “Debt Bank” that we will all be responsible for, it’s time to rescind the Fed, Fanny and Freddie, and put the monetary policy squarely in the lap of congress, where it belongs. Then we can hold these bastards responsible, and they will have nowhere to shift the blame!
BTW- Call your senators and tell them to vote no on the SCHIP funding increase. It’s time to tighten Washingtons belt, not feed it more!
GOD, please give me back my 10th ammendment!
January 18th, 2009 at 6:38 pm
I am not an American citizen myself, but as I said before this concerns every human being on the planet, it’s time to all of us come together, because we are faced with a common enemy.
For the Americans, it’s time to get together forget the differences, there’s no such thing as democrat and repulican, it’s all BS, you are all Americans, as Lurker above said
“it’s time to tighten washington’s belt” and take the power back, before it’s too late.
And every country should do the same, yes to say no to the microchip, but that’s not enough
you need to make clear to these bastards, that to never again to mention this microchip.
And pull out of their system, or we will remain slaves we can only change things if we do not use their system.
January 18th, 2009 at 8:50 pm
Barack Obama’s Economic Appointments
Timothy Geithner(Jewish) – Secretary, U.S. Treasury Department
Lawrence Summers(Jewish) – Chairman, National Economic Council
Paul Volcker(Jewish) – Chairman, Economic Recovery Advisory Board
Peter Orszag(Jewish) – Director, Office of Management and Budget
Gary Gensler(Jewish) – Chairman, Commodity Futures Trading Commission
Mary Schapiro(Jewish) – Chairman, Securities and Exchange Commission
Christina Romer(Jewish husband) – Chairman, Council of Economic Advisers
Melody Barnes(Black) – Chairman, Domestic Policy Council
January 18th, 2009 at 8:50 pm
The Jews Behind Barack Obama
Rahm Emanuel(Jewish), 48, This Illinois Congressman and former Clinton White House adviser has been named White House Chief of Staff for President Elect Obama, bringing a wealth of experience with him. A dual citizen of Israel and lifelong Mossad operative, Emanuel has been a stalwart ally and liaison to the Jewish community. In Washington he is known to be hot-tempered, foul-mouthed, and extremely effective.
David Axelrod(Jewish), 52, The chief strategist behind Mr Obama’s historic win, David Axelrod has been named a senior adviser in the new Obama Administration. He engineered Mr Obama’s election to the US Senate in 2004 and stuck with him all the way to the White House. Axelrod’s hard-hitting style is largely responsible for the Obama campaign’s extremely aggressive approach to traditionally Republican strongholds. Whether or not he will move there now to join the administration in a Karl Rove-style role is the source of much speculation.
David Plouffe(Jewish), 41, Barack Obama’s somewhat reclusive campaign manager, Plouffe is the man who engineered the surprise victory in the Iowa caucuses and reigned over one of the most disciplined campaigns in modern history. When Mr Obama trailed John McCain in the national polls in early September, Plouffe was the man reminding everyone to remain calm. In the end, he was right. Asked whether he’d take a job in the new administration, Plouffe responded: “I’ve done my part.”
Penny Pritzker(Jewish), 49, The chair of Mr Obama’s national finance committee, Penny Pritzker is perhaps the most powerful woman in America and also one of the richest, as heiress to part of the Pritzker family fortune(believed in excess of $40 billion). Chosen by her late uncle to help oversee the family’s vast portfolio of investments that includes Hyatt hotels, real estate investments, and 40% of the Marmon Group. According to Bloomberg, Penny gets much of the credit for getting Obama elected and for “organizing the best-financed campaign in US history.”
John Podesta(Jewish), 59, Bill Clinton’s White House Chief of Staff from 1998 through to the end of his term, Podesta has been tapped to head President-elect Obama’s transition team. In his new role, he will help Mr Obama to identify Cabinet officials and key members of the incoming administration. Head of the liberal think-tank Centre for American Progress, Podesta stayed largely out of the Democratic primaries.
Pete Rouse(Jewish), 62, Obama’s chief of staff in the Senate, Rouse has been named Deputy White House Chief of Staff for President Elect Obama and appointed co-chairman of Obama’s transition team. Rouse helped prepare a memo, “The Strategic Plan,” for Obama’s first year in the Senate. Having worked on Capitol Hill for more than 30 years, Rouse has come to be known as “the 101st Senator” for his knowledge and skills.
January 19th, 2009 at 12:02 am
Want to end the Federal Reserve and a whole heck of a lot of government BS? Here’s what to do:
1. Carry a pen on you at all times.
2. Whenever you use a public washroom, take the pen out of your shirt pocket and write on a wall: GOOGLE: AMERICA: FREEDOM TO FASCISM.
3. Do the above whenever you use a public washroom until the Federal Reserve is no more.
January 19th, 2009 at 12:24 am
BARK O’CLINTON WILL DO WHAT HE IS TOLD BY THE NWO OR HE WILL MEET THE SAME FATE AS JFK HE IS JUST A PUPPET LIKE THE REST SINCE JFK THE LAST PRES THAT CHALLENGED THE NWO.WE ARE FINISHED AS THE USA WE ONCE NEW.BUT DONT COUNT THE CLINTONS OUT, REMEBER ALL THAT DIED AROUND THE CLINTON CRIME FAMILY DURING THERE LAST TERM OF TERROR. TO MAKE IT WORSE BARK O WILL BRING WITH HIM TO THE KINGDOM MANY CROOKS FROM CROOK COUNTY THE MOSY CORUPT IN THE NATION GOOD LUCK AMERICA YOU WILL NEED IT