BEHIND THE PANIC: Financial Warfare over future of global bank power

[keep_it_real]

In this banker’s view, the ongoing attempt of Italian Prime Minister Silvio Berlusconi and France’s Nicholas Sarkosy to get an EU common ‘fund’, with perhaps upwards of $300 billion to rescue troubled banks, would de facto play directly into Paulson and the US establishment’s long-term strategy, by in effect weakening the banks and repaying US-originated Asset Backed Securities held by EU banks.

the UK Government will at least partially nationalize its most important international banks, rather than buy their bad loans as under the unworkable Paulson plan. Under such an approach, costs to UK taxpayers once the crisis abates and business returns to more normal conditions, the Government can sell the state shares back to a healthy bank at perhaps a nice profit to the Treasury. The Brown Government has apparently realized that the blanket guarantees it gave to Northern Rock and Bradford & Bingley merely opened the floodgates of government costs without changing the problem.

The battle lines drawn

What has emerged are the outlines of two opposite approaches to the unfolding crisis. The Paulson plan is now clearly part of a project to create three colossal global financial giants—Citigroup, JP MorganChase and, of course, Paulson’s own Goldman Sachs, now conveniently enough a bank. Having successfully used fear and panic to wrestle a $700 billion bailout from the US taxpayers, now the big three will try to use their unprecedented muscle to ravage European banks in the years ahead.

http://www.financialsense.com/editorials/engdahl/2008/1009.html

[dkf]

1. Does the Citi failure to take Wachovia mess the plan up?

[Celebration]

4. it just makes things a little more messy n/t

[James Quillian]

2. Facts are hard to come by

This situation is said to be a crisis. Credit is said to be tight but I haven't been able to uncover any facts as to who is being denied credit.

On the other hand there is plenty of hard evidence that banks are lending with both hands. M1 has rocketed to a new high for two weeks in a row. It is mathematically impossible for the money supply to increase unless credit is expanding.

At any given time various individuals and organizations are being denied credit. But, if on balance the amount of money being lent is growing, there is no credit crunch.

It is ludicrous to think a financial dictator is going to implement an emergency scheme that will save a faltering economy.

Thanks for posting on the topic. I hope that folks don't drop it.

James

[Joanne98]

3. Wouldn't you love to be a fly on the wall?

[Dover]

5. My question is, where would an Obama administration stand on this?

He endorsed the bailout, so what's the story?