Wednesday, November 12, 2008

Fed Covers Up Financial Crisis

The China connection to Goldman Sachs figures prominently in the current crisis

Per Canada Free Press: "Fed Covers Up Financial Crisis". Excerpts from yesterday's highly enlightening Cliff Kincaid opinion piece:
Our “adversary” media have been extremely deferential toward those promoting the looting of the American taxpayers during the ongoing economic and financial crisis. However, Bloomberg News should be congratulated for filing suit against the Federal Reserve in an effort to disclose the securities the central bank is accepting on behalf of American taxpayers as collateral for $1.5 trillion of loans to banks such as Goldman Sachs.
“The American taxpayer is entitled to know the risks, costs and methodology associated with the unprecedented government bailout of the U.S. financial industry,” said Matthew Winkler, the editor-in-chief of Bloomberg News.
Another way that the media can begin to fix the blame for the financial meltdown is to cover the views of those who predicted the crisis and understand how it happened.
Consider watching this video of a debate that financial analyst Peter Schiff had with Arthur Laffer on CNBC back on August 29, 2006. Schiff predicted the deep recession that is now underway and made mention of China’s role in our unfolding economic troubles. Laffer’s talk about our economic policies “working beautifully” makes him look utterly ridiculous in today’s climate. “The United States economy has never been in better shape,” he declared:

More from yesterday's CFP article:
The China connection to Goldman Sachs figures prominently in the current crisis. Because China owned $376 billion of Freddie Mac and Fannie Mae paper, it played a big role in the financial crisis, and Treasury Secretary Henry Paulson, with his own personal and financial ties to China, admittedly tried to reassure the Chinese through this process that their investments would be protected. They are being “protected” in the sense that the American taxpayers are now on the hook for these government mortgage companies, which have been nationalized. On top of this, Paulson, a former CEO of Goldman Sachs, made sure, as part of the bailout legislation, that he could bail out Chinese banks holding other troubled U.S. assets. Schiff, who blows the whistle on these schemes, is not very popular in the media, which have been telling us consistently that things would get better after Wall Street was bailed out. But Schiff was on Bloomberg on October 28 talking about how the problems will get worse if we continue to follow the current tax, spend and bailout policies. His basic message is that the U.S. is broke and that the situation will get worse under an Obama Administration because of its commitment to more federal interference and involvement in the economy.
Flash forward two years and don't miss the October 28, 2008 Bloomberg video interview, mentioned in the preceding paragraph: Peter Schiff October 28 2008 Bloomberg - Open Exchange Update 11/12/08 8:51 a.m. MT: Just for laughs, check out Art Laffer Regarding his Challenge & Bet Made With Peter Schiff And don't let the cat get your tongues, Weber County Forum economics wonks.


RudiZink said...

Two Curmudgeon comments moved to main articles

sheesh said...

What a weasel Art Laffer is.

I wanna be in on the commie bailot said...

Stocks skid on news gov't won't buy banks'assets

Well... the goverment can't bail out every LOSER corporation in America, right?

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