Friday, June 19, 2009

History of the Melt Down by

The folllowing is taken from
The red text are my thoughts in retrospect of the unfolding events.

March 28, 2007

“The problems in the subprime market seems likely to be contained.”
— Ben Bernanke, Federal Reserve chairman,

This unfortunate collection of words by Bernanke has been quoted over and over again as proof the Fed chief did not grasp the gravity of the subprime debacle. He made this comment as part of testimony he gave to the Joint Economic Committee of Congress, and it came back to haunt him when the financial sector began to collapse.

July 31, 2007

Two Bear Stearns funds that invested in mortgage securities file bankruptcy.
(About 6 months after Goldman made major bets against sub prime with the ABX Index)

Aug. 9, 2007

French bank BNP Paribas freezes three funds with U.S. mortgage exposure, helping to spark a worldwide credit squeeze. (So we have a French Bank, doing Goldman's dirty work. )

Oct. 11, 2007

The Dow hit its all-time high of 14,279 during the afternoon. It’s all downhill from here. (Slowly at first, until we Goldmans people at the exchanges would quitely raise margin requirements at each exchange forcing a a sell off in commodoties which would spill over into the stock market a few months later)

Oct, 30, 2007

Amid mounting losses, Merrill Lynch CEO Stan O’Neal resigns. (Jumps the titantic that he helped create. What is he up to these days? So, Thain his replacement as the new CEO is to make sure they gobbled up by BofA. Bury those toxic assets, deep into the vault at Bank of America.) Bank of America is obvioulsy one of the "fall guys" in the scheme. Why else would they buy Countrywide? So they can throw those loan files, into the trash before the FEDS get there. Then they, way over pay for Merrill, which Thain is still looting for another 2 billion in the background. Thain is obviously one of the "insiders" and knew before ehe got there, his mssion was to merge with Bank of America. Citigroup and AIG, are the 2 other obvious "fall guys."

Nov. 4, 2007

Citigroup CEO Charles Prince steps down.
Citi was choosen to "be long and heavy" real estate , (the counter party to every one else). Charles Prince mission was to "balloon" Citi into a big fat pig, for a feast of the the next BilderBerg gathering of bankers. Charles Prince, succeeds in his mission, resigns, and meets the other bankers in Europe for "his take" or new position of CEO at some European bank. Rubin was put at Citi as a Trojan Horse, purposely giving them bad advise to get heavy in real estate, so they would eventually implode. He even had to tie up 100 million dollars in this sinking ship. But when it's your turn to act, (for the biggest heist) ever, and you are the head of the FED, throwing a 100 million into the fire is a damn good act, the best yet in this series.

Dec, 2007

US recession officially begins (but won’t be announced until Dec. 1, 2008). [link] When multiple CEO 's are steeping down at the same time, we should have been very supicious.

Jan. 11, 2008

Countrywide Financial insolvent. Bank of America agrees to buy them out, saving them from bankruptcy. Why would BofA want to buy a piece of garbage like Countrywide? And turn around and do the same stupidity and buy Merrril? The reason is BofA is "chop shop" for criminal companies. That's why I think of BofA like the little "garbage can" icon on my desktop!

Feb. 1, 2008

Exxon Mobil posts the largest annual profit by a U.S. company in history of $40.6 billion — a record that will not be broken for decades. After selling all their oil "forward" to airlines and city buses, at the highest possible price. Exxon could care less that that oil is $100 off from its high. Airlines and buses still continue to play the high prices of last year! --Just might also say here that Goldman controls the oil market -- they have pretty much since Enron gave on the job.

Feb. 12, 2008

General Motors announces losses of $38.7 billion last year, the largest annual loss in automotive history, and offers buyouts to 74,000 hourly workers. It is a sad state when when Wall Street gets 700 billion and the car companies can't even get 10% of that. At least they create something. I look into my "crystal ball" and I see new green car companies moving into the old factories of Detriot. Owned by none other than, George Soros. ---If the oil market had not been manipulated last year-----maybe the car companies would have survived?

Mar. 12, 2008

We don’t see any pressure on our liquidity, let alone a liquidity crisis.”Alan Schwartz, former CEO of Bear Stearns, March 12, 2008.Schwartz was fending off speculation that the investment banking giant was in a cash crunch when he made this statement, trying to reassure investors that Bear Stearns was doing OK.

March 16, 2008

Bear Stearns dies. JPMorgan Chase snatches them up at firesale price. The FED coughs up $30 billion to sweeten the deal. Gold & silver are hitting new highs every other day. It was part of the conspiracy, for JP and a few others to snatch up a few of the other players, after the crash. So, they made sure to encouarge these banks to pile on the real estate so when GS popped the bubble, by shorting sub prime, these other banks would have to fold.

March 16, 2008

“We have more capital than we need, so we can say to the market that we don’t need more injections. We can confirm that we have tackled the problem.”John Thain, former CEO, Merrill Lynch,

Merrill Lynch would become insolvent 4 months later, Sept. 15.
So John Thain , who has been here just a year: His plan is to make sure they get swallowed by the Garbage can BofA. Im not really sure why? That way they can park those toxic assets in the vault. Thain would make the "scam" known by sneaking an extra 2 billion to his brokers as retention pay. -------John Thain is one of those guys that lives in a castle in Europe. I am not even sure if has an American passport.

July 11, 2008

IndyMac Bank dies, becomes the third-largest bank failure in U.S. history. Check out this video of angry customers from Encino, CA on TV station KTLA [link]

IndyMac, Fannie Mae and Freddie Mac were all "fall guys." Part of the conspiracy was for these governmnet agencies to be the counter party, and blow up as big as possible in the few years they had. Through bonuses and commissons, Wall Street made sure these agencies were constantly in the sucking position.

July 11, 2008

Oil prices reach all-time high of $147 a barrel. Gas at the pump over $5/gallon.
July 15, 2008 Everyone was told at the last Bilderberg meeting to sell oil after America's Independence Day. Goldman would trade oil $15 higher in 2 days to kill big time trader Semgroup. Then oil would start its $100 descent

I don’t think the government ought to be involved in bailing out companies.”George Bush, President of the United StatesBush made this statement in a press conference where he reiterated he felt the economy was basically sound. But when it's part of the master plan, that's what we do. ------Or when Paulson pulls me into a room, alone, and says, "we are going of a cliff" or "there was a run on the banking system today"

By the end of the year the gov’t would be involved in the bailouts of AIG, Fannie Mae, Freddie Mac, CitiGroup, GM, Chrysler, Ford, every one of the 10 largest banks (through TARP and the Fed loan window). 80% of the "give away money" of TARP went to 5 merchant banks. The rest was strewn around to add more confusion as to what is really going on, and to get small regional banks locked into a painfull relationship in the future.

July 16, 2008

“I think the system basically is sound, I truly do,” Bush said. “And I understand there’s a lot of nervousness. . . . But the economy is growing, productivity is high, trade is up, people are working. It’s not as good as we’d like, but . . . to the extent that we find weakness, we’ll move.” [link]George Bush, President of the United StatesWith three more financial outlets collapsing under the economical meltdown last week, queues of angry people outside banks with no access to their money, inflation at its highest rate in 27 years and scores of economists predicting a recession may tip into a full blown depression, president Bush reacted by declaring that the economy is still fundamentally sound. Just goes to show, the position of President has zero influence on the economy and sometimes even zero understanding. The position of Presdient is to sell to the American public, whatever agenda Bilderberg group made 4 years ago. Policy has already been decided 4 -10 years ago.

July 24, 2008

Ford Motor Co. posts worst quarterly performance in its history, losing $8.67 billion, and plans to quickly change focus from trucks to small cars.

Sept. 5, 2008

Silver State Bank is closed in the 11th bank failure of the year.

Sept. 7, 2008

Fannie Mae and Freddie Mac on the ropes. The government seizes them at a cost of $200 billion. Now, who do you think is the counter party to these gov agencies??

Sept. 11, 2008

Sudden $550 billion drawdown in money market deposits. (This unexpected event was revealed to Congress in secret on Sept. 15, 2008 and not made public until Feb. 6, 2009. This may have been the “trigger event” for the US banking crisis. [
What You Weren’t Told on 9/11/2008].)

So you have Goldman, triggering a bank run to $550 billion in a matter of hours, or they are lying about to "fear monger." Either way, it never made the news!!

Sept. 15, 2008

158 year-old Lehman Brothers files bankruptcy. At $630 billion it’s the largest bankruptcy in US history. This sparks a chain reaction that sends credit markets into disarray.Merrill Lynch in trouble, Bank of America agrees to buy them out for $50 billion. (Hank Paulson alone with George Bush make this decision)

Sept. 16, 2008 (Not even a day later)

World’s largest insurer AIG insolvent.
Government takes control of them for $85 billion. AIG is replaced by Kraft Foods as a component of the DJIA index.The nation’s first money-market fund collapses when it “breaks the buck” and is frozen. Two days later Paulson & Bernanke extend federal insurance to some $3.4 trillion in money-market funds.

AIG was the "biggest" fall guy. The lynch pin of the conspiracy. Being as insurance company, they fell through the loop hole, of the already underregulated CDS market. Now they could sell an unlimited amount of insurance on these bogus pool of bad mortgages. Never having an intention on paying out. Their intention was to get as big as possible, and position themselves counter party from GS, in time for the bailout.

Sept. 17, 2008

Stock market down 9% in two days. Gold posts its biggest 24-hr gain (percentage and actual $ amount) in history. Russian stock market is closed for two days after it dives 25%.

Sept. 18, 2008

Sec Treasury Paulson proposes the biggest financial bailout in US history. It grows from an estimated $300 billion to $700 billion in three days. Paulson pitched the plan that he received at the last Bilderberg meeting in 08, which he attended. You can still see the wine stains on the paper entitled "TO BIG TO FAIL" that he pulled from his back pocket.

Sept. 19, 2008

SEC temporarily bans short sales of 800 stocks from today through October 2.Sec Treasury Paulson asks for unprecedented and unrestricted authority to use taxpayer money to bailout any financial entity. How many times has Paulson said "We can't do this or that ...........because it will "spook the markets." How many times has Paulson told other bankers how to act, on behalf of NOT "spooking the markets"? You think announcing a ban on short sales is going to spoke the whole market? and spoke the bank sector after that ban is lifted? The fact is Paulson wanted a "bank raid" becasue he knew GS and the other key bankers would survive and come out much stronger.

Sept. 21, 2008

Eager to be eligible for the Fed’s bank-only billion dollar handouts, Goldman Sachs and Morgan Stanley suddenly transform themselves into deposit-taking banks. To bad the car compaines didn't do the same thing.

Sept. 25, 2008
Washington Mutual, the US’s largest S&L, becomes the largest bank failure in history. It is seized by the Feds and sold off to JPMorgan Chase. And one more prize goes to JP!

Sept. 27, 2008

Legislative” Martial Law is declared by the Speaker of the House in an effort to ram through the $700 billion Bailout Bill. This attempt fails. Paulson tells congress in that if they don't pass this, we will have martial law and civil inrest as a result of the depression.

Sept. 29, 2008

Wachovia, the nation’s 4th largest bank, in trouble. The FDIC brokers its sale to CitiGroup (eventually Wells Fargo beats out CitiGroup).The DJIA suffers its biggest point-drop in history; the VIX “Fear Index” sets a new all-time high at 48.40. The MORE volitile the market, the MORE the merchant bankers make.

Oct. 3, 2008

House passes $700 billion Bankster Bailout Bill. President immediately signs it into law. The Executive Branch now has unrestricted control over who gets what for bailouts. All according to the master plan.

Oct. 6, 2008

The VIX “Fear Index” sets another new all-time high at 58.24. Dow drops to 9,955, first close below 10,000 since 2004.

Oct. 7, 2008

Russia, Brazil and Peru suspend trading when their stock markets fall nearly 20% at open.Prime Ministrer of Iceland warns of impeding bankruptcy of his country.

Oct. 8, 2008

The Federal Reserve, European Central Bank and four other central banks lowered world-wide interest rates in an unprecedented coordinated effort to ease the economic effects of the worst financial crisis since the Great Depression.

Oct. 9, 2008

Iceland suspends trading on its stock market for the rest of the week. Its three largest banks have failed.European Central Bank announces “unlimited” amount of cash available to banks.

Oct. 10, 2008

The Dow had its worst week in both point and percentage terms and is down 40.3% since reaching a record high close of 14,164.53 on Oct. 9, 2007. In the last 8 trading days alone, the blue chip index has lost a staggering 22.1% of its value. The past week’s (October 6 – 10) 18% decline “and Friday’s 1018.77 point swing from low to high were the biggest since the Dow was created in 1896.”Britain was just three hours away from going bust today after a secret run on the banks. This wasn’t revealed until Jan 24, 2009 by one of British Prime Minister Gordon Brown’s ministers. [link]

Oct. 11, 2008

Top 9 US banks nationalized. Emergency meeting called by Sec Treasury Paulsen. He tells the CEOs of the nation’s top 9 banks, from Bank of America to Wells Fargo, that the financial system is in trouble and he is nationalizing them. Each CEO receives a single sheet of paper saying they agree to receive a total of $125 billion in exchange for shares. [NY Times, Oct 14, 2008] Blanks spaces for numbers to be filled in later because we woudn't want to "spoke the markets." The first pot is only 9 banks, but with the help of the FDIC, there should be another 100 closings of small banks for the big 5 to feast on.

Oct. 13, 2008

Dow chalks up its biggest-ever one-day point gain to close over 9,000 after last week’s devastating losses.US Fed authorizes unlimited dollars for distribution by European Central Banks. The flood of new dollars is estimated at $2.3 trillion worldwide.

Oct 15, 2008

Monday’s huge Dow gain is countered by today’s huge loss of 733 pts. Shake out those small time S & P mini traders.

Oct 16, 2008

Oil prices fall below $70 a barrel, less than half the July peak.
Mission Accomplished

Nov 6, 2008

U.S. Stocks Tumble in Market’s Worst Two-Day Slump Since 1987 ( S&P 500 down 10%. I bet Goldman made a killing this week.

Nov 7, 2008

Unemployment jumps to 14-year high of 6.5%.

Nov 19, 2008

Dow dives under 8,000 — lowest close since March 2003.

Nov 23, 2008

Citigroup, once the nation’s largest and mightiest financial institution, has been brought to its knees by more than $65 billion in losses. Citigroup’s stock has plummeted to its lowest price in more than a decade, closing Friday at $3.77. At that price the company is worth just $20.5 billion, down from $244 billion two years ago. Waves of layoffs have accompanied that slide, with about 75,000 jobs already gone or set to disappear from a work force that numbered about 375,000 a year ago. $65 Billion in loses. Could you have lost more if you tried? I get it! Citi gets caugth holding the bag, the counter party to GS and JP.

Nov 26, 2008

With the gov’t bailout of Citicorp, US bailouts now total almost 35% of GDP. First it was the banks. Then Fannie Mae and Freddie Mac followed by AIG, Citigroup and now possibly auto companies, the home builders and the legacy airlines. Increasingly, the American government is becoming Corporate America’s largest investor. The U.S. government now owns or operates 35% of the entire economy’s production or gross domestic product (GDP).

It's called a "black swan" when it happens in just one industry. But when it happens in multiply industries at the same time (concurrently) that is "conspiracy. " Real Estate people, conspiring with Wall St, conspiring with, deregulation efforts, conspiring with rating agencies, conspiring with shady mortgage brokers. This was no "black swan." This is a conspiracy.

Dec 1, 2008

Announcement: US recession officially started in Dec 2007. The National Bureau of Economic Research declared, “The committee determined that the decline in economic activity in 2008 met the standard for a recession.” The 1.2 million drop in payroll employment so far this year was the biggest factor in determining that start of the contraction. [link]

Dec 17, 2008

A panicked Ben Bernanke cuts the Fed Funds Rate to zero, it’s lowest in history.From Bloomberg: “The Federal Reserve opened a new era in U.S. monetary history, cutting interest rates to as low as zero and pledging to buy unlimited quantities of securities, after conventional policies failed to arrest what may be the worst recession since World War II.”
Can you say "hyper-inflation?"

Dec 23, 2008

Median home sales price fell 13.2 percent — the largest amount on record — to $181,300, from $208,000 a year ago. Biggest drop since the Great Depession. [link] When they fall 50% and the merchant bankers own 30% of all the homes, the depression will be official over.

Dec 30, 2008

Consumer confidence hits all-time low in Dec.The Conference Board’s Consumer Confidence Index fell to 38 in December from a revised 44.7 in November. [link]

Jan 2, 2009

US manufacturing shrinks as orders hit 60-year low. [link] Things haven’t been this bad since 1948.Billionaire Warren Buffett’s Berkshire Hathaway slumped 32 percent last year, the worst performance in more than three decades. [link] Goldman got Warren's attention. You either "trade with us, or you trade against us". Now go get your check book and cut a check for 5 billion.

Jan 8, 2009

Bank of England cuts interest rate to lowest since 1694. Yes, that’s the lowest rate in 300+ years, since England’s central bank was founded. [link]

Jan 9, 2009

US: highest job losses for year since WWII.Battered by the worst housing market collapse in the country’s history and by an ever-deeper credit crunch, the US economy shed 2.6m jobs in 2008, the largest decline since a 2.75m drop in 1945, when the dole queues were briefly swelled by servicemen being demobilised. [link]

Jan 16, 2009

After filing for bankruptcy protection in Nov 2008, Circuit City throws in the towel today and announces it will liquidate all its remaining inventory and close its stores. 35,000 to lose jobs. [link]

Jan 19, 2009

Royal Bank of Scotland announced the biggest loss in British corporate history today. The news triggered fears the bank would be nationalised and caused a bloodbath in shares across the sector, overshadowing the Government’s latest financial bailout. [link]

Jan 21, 2009

Iceland sinks further into economic oblivion as violent protesters are gassed by police (1st time in 60 years). [link]

Jan 22, 2009

Toyota overtook General Motors in global vehicle sales for the first time, bringing to an end GM’s 77-year run as the world’s largest automaker. [link]

Jan 26, 2009

Bloody Monday: 71,400 job layoffs announced in US. Seven companies announce massive job cuts in a scary start to the week. [link]

Jan 27, 2009

US consumer confidence hits all-time low.The Conference Board’s index of consumer confidence fell to 37.7, the lowest rating since records began in 1967. [link]

Jan 29, 2009

US unemployment checks set record.The Labor Department reported that the number of Americans continuing to claim unemployment insurance for the week ending Jan. 17 was a seasonally adjusted 4.78 million, the highest on records dating back to 1967. [link]

Jan 30, 2009

The FDIC closes 3 more banks today, bringing the total to 31 since the start of the credit crisis. The failure of Utah’s MagnetBank was different: it became the first time in five years the FDIC was forced to directly refund depositors after being unable to find another institution willing to take over its operations. [link] The whole purpose of TARP was to consolidate the industry at the expense of the tax payer. FDIC's job is to break up small banks into small bit size pieces for Goldman and JP. Another purpose of TARP was to give each bank some spending cash in buying other banks, and add confusion to the over all picture.

Feb 5, 2009

Credit Suisse posts largest annual loss ever. [link]

Feb 13, 2009

Four U.S. Banks Seized, Bringing Total for Year to 13. Banks in Florida, Illinois, Nebraska and Oregon were shut by state regulators, boosting the toll of failed institutions to 13, as a worsening economy and slumping housing market pushes home foreclosures to records. [link]
Feb 18, 2009

New home construction drops to record low. The Commerce Department reported that construction of new homes dropped 16.8 percent last month, and was the slowest pace on records dating back a half-century. [link]

Feb 20, 2009

DJIA and S&P 500 give back all gains for past 11 years (1997). This, on top of the S&P 500’s worst start to a year EVER, down 17% so far in 2009. [link]

Feb 23, 2009

A total of 288 US companies cut or suspended payouts last quarter, the most since Standard & Poor’s records began 54 years ago, when Dwight D. Eisenhower was president. This is the fastest reduction in U.S. dividends since 1955. [link]

Feb 24, 2009

Confidence among U.S. consumers plunged to a record low in February. The Conference Board’s index declined more than forecast to 25 this month, the lowest level since data began in 1967, from a January reading of 37.4. [link] Bloomberg also reports, “Home prices in 20 U.S. cities declined 18.5 % in December from a year earlier, the fastest drop on record, as foreclosures climbed and sales sank.” [link] Amazingly enough, sub prime was mostly contained to 5-8 cities.

Feb 27, 2009

General Electric announces it will slash its quarterly dividend 68% beginning in the 3rd quarter. As recently as January, GE CEO Jeffrey Immelt, told CNBC that he had no plans to cut the dividend, which the company has paid for over 100 years. The last time GE decreased its dividend was 1938. [link]

Mar 2, 2009

DJIA plunges below 7,000 as investors grow increasingly pessimistic about the health of banks, and in turn the economy, around the world. The Dow hadn’t traded below 7,000 since Oct. 28, 1997, and last closed below that mark on May 2 of that year. [link]
[link]AIG posted the largest quarterly loss in history, $61.7 billion. AIG was once the world’s largest insurer. It received a $150 billion bailout in 2008, and is about to receive another $30 billion from the gov’t. [link] Hmmm...... Citi loses 60 billion, Aig loses 61 billion,, whats the pattern here. 60 Billion must be the threshold for "TO BIG TO FAIL."

Mar 5, 2009

With today’s 4% drop in the DOW, the current Dow correction already ranks as the second worst on record. Only the correction that began in 1929 was worse. [see the chart]

Mar 6, 2009

U.S. jobless rate soars to 8.1%. 651,000 lose their jobs in February; unemployment at highest level since 1983. 4.4 million jobs have been lost since the start of the recession in Dec. 2007. Half of those job losses have happened in the last 4 months. [link]

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