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Years from today, when the current financial crisis is over, historians are likely to agree that it would have been far better if the Bush administration had declared a state of emergency earlier in the process so that the necessary steps could have taken to avoid a complete financial meltdown. The media could have been used to bring the American people up to date on market-related developments and educated in the bizarre language of structured finance. Knowledge is power; and power can prevent panic.

Now we're in a terrible fix. People are scared and removing their money from the banks and money markets. This is intensifying the freeze in the credit markets and driving stocks into the ground like a tent stake. Meanwhile, our leaders are caught in the headlights, still believing they can finesse their way through the biggest economic cataclysm since the Great Depression.

If something is not done to increase the flow of credit immediately, the stock market will tumble, unemployment will spike, and many businesses will grind to a standstill. We could be just days away from a severe shock to the system. Secretary of the Treasury Henry Paulson's $700 billion bailout does not focus on the fundamental problems and is likely to fail. At best, it puts off the day of reckoning for a few weeks or months. Contingency plans should be put in place so the country does not have to undergo post-Katrina bedlam. [More]

 . . read more
Chalmers Johnson, author of the Blowback trilogy and former CIA adviser, believes the USA must cut back on military spending and build green infrastructure or face ruin. . . read more

While the U.S. Senate predictably capitulated to the demands of Wall Street, for the first time in recent memory the House listened to the American people and blocked Paulson’s bailout of his rich buddies by U.S. taxpayers. The same House that refuses the public’s demand that the Bush regime be held accountable and its gratuitous wars halted refused to hand over $700 billion to the financial institutions whose irresponsibility has brought the U.S. to its worst economic crisis since the Great Depression.

We must be thankful for this sign that American democracy is not completely dead and supplanted by executive branch authority. However, whatever bailout package that emerges will fail unless it takes into account the following.

Any package that maintains the mark-to-market rule and permits the resumption of short-selling will undermine itself. In panic conditions without the existence of a market, the mark-to-market rule results in asset prices being driven below their values, thus eroding balance sheets and producing insolvencies. Short-selling permits short-sellers to profit by destroying the share prices of institutions suffering balance sheet problems, thus eliminating their ability to borrow and driving them into failure. A bailout, however large, that maintains the mark-to-market rule and permits short-selling will pour money into a black hole. [More]

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"I’m not saying this is the perfect answer. If I were dictator, which I always aspire to be, I would write it a little bit differently. I would increase the FDIC insured deposits and done some other things..." . . read more
Does Republican U.S. presidential candidate John McCain have the ability to fix the economic crisis? It was McCain and his economic adviser Phil Gramm who pushed for the deregulation that helped lead to the banking crisis, and despite his sudden populist message and support for regulation; his economic policies still favour America's wealthy elite. . . read more
Video blog The Frank Factor on the U.S. finanical crisis and the way Republicans privatize profits and socialize failure. . . read more
British PM Gordon Brown, New Zealand PM Helen Clark and Australian PM Kevin Rudd react to the U.S. House of Representatives' vote on the $700 billion bailout . . read more

Hear me, oh children of capitalism. Thou shalt not abandon thy one true God for the false idols of socialism... Satirist Stephen Colbert believes the free market is like God - if everyone just has faith it won't disappear.

 . . read more
Democrat Speaker of the House Nancy Pelosi blames the Bush administration for the mess in the U.S. financial markets. Her partisan tone has been blamed for scuttling the bailout deal in Congress. . . read more

What we are witnessing right now is the end of an era: the death of turbo capitalism, writes RENATE OGILVIE.

 . . read more
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Years from today, when the current financial crisis is over, historians are likely to agree that it would have been far better if the Bush administration had declared a state of emergency earlier in the process so that the necessary steps could have taken to avoid a complete financial meltdown. The media could have been used to bring the American people up to date on market-related developments and educated in the bizarre language of structured finance. Knowledge is power; and power can prevent panic.

Now we're in a terrible fix. People are scared and removing their money from the banks and money markets. This is intensifying the freeze in the credit markets and driving stocks into the ground like a tent stake. Meanwhile, our leaders are caught in the headlights, still believing they can finesse their way through the biggest economic cataclysm since the Great Depression.

If something is not done to increase the flow of credit immediately, the stock market will tumble, unemployment will spike, and many businesses will grind to a standstill. We could be just days away from a severe shock to the system. Secretary of the Treasury Henry Paulson's $700 billion bailout does not focus on the fundamental problems and is likely to fail. At best, it puts off the day of reckoning for a few weeks or months. Contingency plans should be put in place so the country does not have to undergo post-Katrina bedlam. [More]

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12 sep

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Re: Zeitgeist Addendum

Brilliant, mind-expanding stuff - even better than the original. The timing is perfect with the criminal U.S. financial system in a state of collapse and dragging the world down with it. These times of crisis lead to paradigm shifts - it is time for the Zeitgeist revolution.

1. Boycott Citibank, JP Morgan Chase & Bank of America and expose the corrupt Federal Reserve system

2. Boycott the mainstream media networks and protect the freedom of the internet

3. Boycott the military

4. Boycott energy companies - get off the grid, convert your car

5. Reject the current political system - the illusion of democracy in this corrupt monetary system is an insult to our intelligence

6. Spread the message, create critical mass 

All the natural resources on the planet are the common heritage of all people. We can all live in abundance if we focus on real change - J.P.

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Re: The Exorcism of Sarah

Religious belief should itself be a disqualification for executive office as it displays a complete lack of critical thinking. Will church and state ever really be separate in America? - Jesus

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Re: Sia - Buttons

Thanx for supporting Sia. She is Australia's finest - Amy

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Re: Alien Contact Coming October 14

I'm ready to believe but why would highly advanced aliens transmit their messages through such kooks. And what do the aliens have to do with 9/11? - The Truth is Really Out There

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Re: Who The Fuck is Sarah Palin?

Thanks for the biggest laugh of the day. YOU calling Sarah Palin a retard made my day. I rarely see that level of irony. That whole "hate god so deny him" mental problem you have is obviously blurring your judgement. Peace out loser! - Mr Happy Bottom

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Re: U.S. Economic Collapse? - From Michael Lerner

Economic collapse, I don't think so. The problem with all millenarium thinking is simply that things work at a much more glacial pace and are infinitely more complex than Michael/chicken little can get into the space of his squawk. Lehman Bros are not being singled out because they are perceived as "liberal" etc ; they are simple another of the bankstas who have hit the wall in the collapse of one of the history of money's ponzi schemes. The SCO (China)/India, resurgence of Russia and the emerging South American/Japan splintering of markets means the Wall Street pygmies now have to move out of the club house and actually perform because the game has really begun.

The banking cartel IS big news but its demise overdue and hoped for by most sentient human beings is not Economic collapse because Commerce is an essential human need and recruiter of human ability. Try one of the Economists from the USA who has been way prescient, calling these events at least two years ago to my knowledge. Dean Baker is occassionaly on mainstream media but they do not like him. The bloke really knows his stuff and while his focus is the USA his take on how Capitalism actually lurches about is fair dinkum info the world in general needs to factor in - Anthony Innes

10 aug
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