A look at the financial crisis-1/3
November 12, 2008
Bailout for Mortgage Giants, IndyMac Bank Collapse, Dollar Hits New Low, Inflation at 26-Year High, Dow Falls Below 11K…A Look at the Financial Crisis
It has been a tough seven days for the US economy. On Friday, the FDIC seized control of the failed California-based IndyMac Bank. It was second largest bank failure in US history. Analysts project another 150 banks could collapse. On Sunday, Treasury Secretary Henry Paulson announced extraordinary moves to bail out the mortgage giants Freddie Mac and Fannie Mae. On Tuesday, the Dow Jones Industrial Average dipped below 11,000 for the first time since 2006 and the dollar hit a record low against the euro. And Wednesday, it was announced that inflation is now rising at its fastest pace in twenty-six years. We take an in-depth look an the economic crisis. [includes rush transcript]
Financial Bailout Fallout: Man Carjacks NYC Taxi Driver
November 11, 2008
This story just hit the wire and is the strangest story I have ever read. A man by the name of Anthony Johnson lost his job as the company he worked for went under. His family like many Americans was living check to check. When he found out he lost his job he pretty much temporarily insane and carjacked a NYC Taxi Driver. He forced him out of his car and locked him in the trunk. The suspected literally stole his job and started picking up passengers. The driver who again was locked in the trunk called the police who eventually tracked down and arrested the suspect. If this story could any stranger it does, the driver filed a lawsuit not because he was carjacked and locked in a trunk, but for lost fare. He claimed that the suspect just charged a flat $5 per ride and didnt run the meter. He is suing him for the money he made that day and the estimated difference he would have made if he charged the full fare. This has to be one of the strangest stories I have ever read. What you think?
Jim Rogers on America Financial Crisis Bailout
October 23, 2008
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The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States. Created in 1913 by the enactment of the Federal Reserve Act, it is a quasi-public (government entity with private components) banking system[1] composed of (1) the presidentially appointed Board of Governors of the Federal Reserve System in Washington, D.C.; (2) the Federal Open Market Committee; (3) twelve regional Federal Reserve Banks located in major cities throughout the nation acting as fiscal agents for the U.S. Treasury, each with its own nine-member board of directors; (4) numerous private U.S. member banks, which subscribe to required amounts of non-transferable stock in their regional Federal Reserve Banks; and (5) various advisory councils. As of February 1, 2006, Ben Bernanke serves as the Chairman of the Board of Governors of the Federal Reserve System.
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Bailout in economics and finance is a term used to describe a situation where a bankrupt or nearly bankrupt entity, such as a corporation or a bank, is given a fresh injection of liquidity, in order to meet its short term obligations. Often bailouts are by governments, or by consortia of investors who demand control over the entity as the price for injecting funds.
Often a bailout is in response to a short term cash flow crunch, where an entity with illiquid, but sufficient, assets is given funds to “tide it over” until short term problems are resolved. However, often bailouts are merely delaying the inevitable, as a government or investment structure attempts to avoid putting a large quantity of illiquid assets on the market, which would force other similar entities to write down their assets.[citations needed]
The bailing out of a corporation by government is controversial because bankruptcy can be seen as being caused by the failure to satisfy consumer demand; the bailing out is thus an instance of government intervention on the market overruling the will of consumers. “All this talk: the state should do this or that, ultimately means: the police should force consumers to behave otherwise than they would behave spontaneously.”[1] According to the Austrian School of Economics the appearance of monopolies can often be blamed on such acts of government intervention that preserve overstretched and badly managed corporations which market forces would have broken into smaller and more specialized companies.[citation needed]
Government bailouts of corporations are usually reserved for cases when a corporation is considered “too big to fail” - justified by the argument that failure of certain corporations would cause unacceptable short term economic repercussions throughout the economy.[2]
A financial bailout may also describe an external intervention into the economic affairs of a nation, industry, corporation or citizen, typically for the purpose of enhancing their financial circumstances for public benefit. Bailouts have occurred globally and with some frequency since the early 20th century. In general, the needs of the entity bailed-out are subordinate to the needs of the state. Further, a bailout presents the challenge of moral hazard, by rewarding excessive risk taking.
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Jim Rogers on America Financial Crisis Bailout
Go to mysilvercoins/american-eagle-silver-coins.html
and protect your family standard of life.