Monetary System Collapse Coming Soon!?

Discussion in 'Financial Cents' started by Shinmen Takezo, Sep 17, 2009.

  1. Shinmen Takezo

    Shinmen Takezo Monkey+++

    Some of you may have been following my posts on other boards.
    Some of you don't know me from your supermarket checker.
    This is okay.

    I am going to start the mother of all financial threads on this site if no one objects.
    And I am going to post in the next day or so many, many links so that most of you can do some very shocking home-work and catch up on what is really going on.

    So for the first post on this thread...

    We are approaching a financial Rubicon.
    A line in the sand so to speak.
    At the end of this month and through the end of October and into november... this all marks the end of the fiscal year.
    And the bad numbers are starting to pour in.
    Everything you have been seeing and reading in the news papers is propaganda.
    It is window dressing. It is happy-happy, joy-joy talk to keep the pumps running in the bilges of the Titanic.

    A week or so ago China has told its financial institution that "they may" default on their dervatives contracts if they wish to do so.
    The are also begining the process of repatriation of thier gold stock stored overseas, and returning them to China.
    They are in the process of slowing duming their US treasuries and bonds (slowly and quietly)... and from the articles I have read to do so now means that you must take a 40% loss on the face value.

    Ditto with other countries hold US debt instruments.
    And when the damn breaks--it will be like a financial Jones Town flood hitting the USA.
    The USA, in fact, may not even survive as the USA--not the USA as we know it now.
    During an interview with Ron Paul, Glenn Beck played a clip of George Sorros being asked what is going to happen financially (the outcome) of the current mess, and Sorros is quoted on camera saying that, "it will resemble what happened to the Soviet Union" very soon.
    In another on camera interview a couple weeks before this he was asked does he know "what will happen to the dollar?"
    And Sorros smiled and said, "yes, but I can't tell you" --then he walked away.

    So I am going to start off this thread with this short video to warm you up to the subject.
    If you don't like what you see--let me know fast.
    The information that will follow in this thread will most likely be very disturbing.
    It will pull you completely out of your comfort zones.
    It will challenge your reality.
    I am not going to start a new thread with each new bit of news that published.
    It's going to be tacked onto the end of this thread--mainly to help the mods keep track of things, and also not to run over other people and slide their stuff down the posting que.

    So I just finished watching this vid.
    It is somewhat disturbing....

    YouTube- CAUTION: Monetary System Collapse

    Supporting previoius links and vids will be posted soon.
  2. Tango3

    Tango3 Aimless wanderer

    You'd love these guys:,5.0.html

    Ya, know I'm not saying we aren't in a pickle or approaching a major "restructuring"...and I don't understand alot of this financial stuff though I do read alot of the "latoc financial doom board", (andstayed in a holiday inn multiple times...)

    We take motorcycle travel vacations late summer and early fall; seems every year for the last two or three we have had "certain doom" scheduled to occur while we are on the road. To the point each year I seriously consider cancelling our trip, to not be caught 5 states away for ts h'ing tf. Karl Denniger( market ticker blog) has pronounced "final warning". More times than I can count. It could verywell happen...

    Bush set the stage for martial law. It could very well happen...

    Obama has not veered far off course from from the "neocon agenda", Alot of people with more wealth and power than I can even imagine are "heavily invested" in the dollar remaining viable.(status quo)
    There's not a hell of alot I can do other than put some preps up. keep the ammo locker stuffed,. I eat out of our local supermarket, the summer garden is mostly an experiment. If the dollar instantly became useless paper, we'd all be screwed; but we still need food, farmers still need labor, protection and and fuel; Some sort of rudimentary economy would inevitably rise out of the collapse.( imho its human nature) people left with cash will still wave it around and be totally flabbergasted they can't buy a can of cling peaches in heavy syrup from our pantry for any amount of paper ( ...but; but; I'm offering you $1200 Dollars!!!) Yes I see that.

    what can you do to preparefor the value of your entire life's accumulation of wealth to be stolen.
    We told congeress "no bailout" in no uncertain terms. They were threatened and scared by the largest criminal cabal in in the country. Appointed officials were handed the keys to the u.s. treasurey. and we watched golf.
    force and Violence, however justified or rationalized will not release our financial obligations.The system has built in flaws, one of which is a preordained collapse at thetime debt and growth run up against the hard ceiling.

    For every dollar that is put into circulation by the fed, we "owe" them a dollar + interest, to pay the interest we "borrow" more dollars(+interest) and pay it in dollars.. the inevitable outcome is an expanding debt we can't pay.
    I'll be reading the thread, but I don't know if there;'s a solution, we are just gonna ride the train into the ground with the rest of the free world....or eat a 230 grn ball.(?),52235.0.html
    Just reserving my seat.

    Will bump and add links as I see things continue to unfold.

    The easy one is the recent run up in gold and SILVER.

    China and the new global currency (the SDR)...

    and well we all know the oil story.

    Oh well - Karl predicted a crash in the bond market...still waiting...

    Karl figured out amerika is run by krooks...yah think karl...??

    ( <table border="0" width="100%"><tbody><tr><td valign="middle">[​IMG]</td> <td valign="middle"> Denninger Issues Final Warning...again
    « on: September 15, 2009, 11:49:03 PM »
    </td> <td style="font-size: smaller;" align="right" valign="bottom" height="20" nowrap="nowrap">
    </td> </tr></tbody></table> <hr class="hrcolor" size="1" width="100%">

    he is learning that it was all planned...

    he has more learning to do...

    enjoy the die off!,52920.0.html

    <table style="table-layout: fixed;" border="0" width="100%"><tbody><tr> <td colspan="2" class="smalltext" width="100%">
    </td> </tr><tr> <td class="smalltext" id="modified_763530" valign="bottom">
  3. Shinmen Takezo

    Shinmen Takezo Monkey+++

    For every dollar that is put into circulation by the fed, we "owe" them a dollar + interest, to pay the interest we "borrow" more dollars(+interest) and pay it in dollars.. the inevitable outcome is an expanding debt we can't pay.

    It's not that we can't pay it--it's that it is mathamatically impossible to pay it. With debt and liabilities we owe over 90 trillion dollars... and that is more than the entire North Amercan continent is worth, and everyone's savings, 401k's, homes, businesses, factories, dogs, cats, etc. --several times over.

    So how can an ammount like this be paid?!
    It cannot.
    Ergo default, and coming very soon.

    And this guy who's video I posted is not the person I am going to base most of my stuff off of.
    There will be lots and lot of links coming in a day or so.
    Hours of reading and viewing.
    Then I will start to add to it as things unfold.

    This video would have gone at the end of this list of links.
    But I thought that I should kick off things early.

  4. Tango3

    Tango3 Aimless wanderer

    Cool, carry on: I'm not disbelieving as much as just lost on what the proper response is to a financial asteroid turning all of our wealth into toilet paper.(Pardon me if I am am completely untrusting of any solution provided by big financial/investment gurus...(i.e. buy gold) I think they are all insiders out to milk the last pennies out of our couch cushions).After all "cds's" were admittedly based ON COMPLEX ALGORITHMS that were purposely indecipheral to the institutions that bought them.
  5. Quigley_Sharps

    Quigley_Sharps The Badministrator Administrator Founding Member

    Shinmen Takezo
    Welcome aboard I got your e-mail a few days ago and just had time to read it tonight.
    It looks like the out come worked out for you.
  6. overbore

    overbore Monkey++

    I like your posts and plans; well done Sir!!! It is time we stopped with the pap and political promises and face hard facts as you present them.
    Just look at the litany of endless broken promises politicos make, have made and will continue to make as the astute among us will soon see that the end of fiat paper money is very, very near.

    Laus Deo
  7. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

  8. Shinmen Takezo

    Shinmen Takezo Monkey+++

    Celente: There is no Recovery!

    Alright I have a lot of links coming soon.
    Someone is working on retriving them for me.

    In the meantime I found this interview with Gerald Celente.
    He predicts revolution for this country.
    But I don't think this is going to be a hard "r" revolution.
    I think this is going to be a soft "r" revolution... like Latvia, Estonia and the rest of the baltic states leaving the Soviet Union after the collapse.

    But anyways Celente is always spot-on.
    I love his analysis.
    And why do we have to tune into "Russia Today" to hear the truth....
  9. Shinmen Takezo

    Shinmen Takezo Monkey+++

    If you want to read a great article on some of this stuff, this is a good one:

    This is one of the many links I was trying to recover.

    The telling part of this is that the Chinese government is telling their financial institutions that they may default on derivatives contracts if they choose to do so--which would be throwing more good money into the the USA toilet.

    This is one of the most important developments to date.
    It reveals all the intentions and motivations of the Chinese gov.
    They do not intend to go down on the financial titanic with the USA.
    They are positioning themselves for the collapse.
    Yes they will get hurt, but they will not turn into "Thunderdome" like much of the USA will.

  10. Gray Wolf

    Gray Wolf Monkey+++

    I've heard it all before, from "when the Dow goes over 10,000 it will all collapse like a house of cards", to Y2K, which turned out to be Y2what?
    to "August 26th the US monetary system will collapse"
    And it all keeps chugging along one way or another.
  11. Tango3

    Tango3 Aimless wanderer

    'Zactly what I was trying to say ( without being too rude);
    but you said it better...[beer]
    Inflationary spiral ? Deflationary spiral??
    Pick your poison...
  12. Shinmen Takezo

    Shinmen Takezo Monkey+++

    Here's another article on the Chinese pulling their gold stocks...

    World to America: We Want Our Gold Back
    September 15, 2009 | From

    It is not just China that is attacking the Anglo-Saxon financial system.

    The world is preparing to abandon the U.S. dollar and the UK pound. Pronouncements from Hong Kong, the United Arab Emirates, Switzerland and Germany have made clear that the Anglo-Saxon financial system’s doom is only a matter of time. A huge announcement out of Hong Kong rattled the financial world on September 3. Although big media relegated the story to the back pages, it should have been front and center! What’s the news? China is demanding its gold back.

    “Hong Kong is pulling all its physical gold holdings from depositories in London,” reported MarketWatch (emphasis mine throughout).
    The announcement, coming in the midst of the global economic crisis, is sending a clear signal: Britain is in far worse economic shape than generally realized, and China thinks it needs to get its gold out while it can—before something happens to it. Gold closed at a new record high of $1,006 per ounce on Friday.

    Governments have a notorious history of confiscating precious metal reserves during times of crisis—even in America. In 1933, in order to stabilize the monetary system, President Franklin D. Roosevelt issued an executive order confiscating all privately owned gold in the United States. Later, in 1968, President Johnson issued a proclamation that all Federal Reserve Silver Certificates were merely fiat legal tender and could not be redeemed in silver. Then in 1971, the U.S. government closed the gold window completely and declared that foreign nations would no longer be allowed to exchange U.S. dollars for the gold that was supposedly backing them.

    But China’s decision to demand its gold back is more than just a vote of no-confidence against the pound. It is a direct challenge to the whole global Anglo-Saxon-dominated financial system.

    China wants its own gold bullion money center. Toward this end, it also announced that it has created bullion storage facilities in Hong Kong to compete with London and New York. Chinese officials said they will soon launch a marketing drive to convince Asian central banks to transfer their gold reserves from overseas money centers to a storage complex closer to home in Hong Kong.

    In today’s world of fiat paper currencies, many have forgotten the golden rule: He who has the gold rules.
    Beijing hasn’t forgotten—it has just been playing along.

    The Chinese administration is not against fiat currencies in principle. It too relishes the ability to print fiat money. It loves the power it gives it to essentially confiscate the wealth of the country’s tax base. However, China also knows that the United States and Britain can print money too.
    America and Britain owe China and other countries trillions of dollars. As long as Washington and London did not overtly abuse the ability to create money, Beijing was happy to keep lending. But with the global financial situation still teetering on the precipice, both Britain and the U.S. have publicly admitted to “quantitative easing” (the technical term for creating new money out of thin air) to intervene in the bond market and pay back borrowed money. The dollar is at risk of a major devaluation—and China knows it.

    Once countries start down the funny-money road, confidence deteriorates rapidly. How valuable is that $100 bill when the government is creating hundreds of billions to give to big banks? It is often a short trip to the paper currency recycle bin. At that point, you have a free-for-all. Once it gets ugly, nations will go to extremes to avert economic collapse.
    Thus, China wants its gold. As much as possible, as soon as possible, before the world’s monetary system falls apart.

    On September 6, Ambrose Evans-Pritchard reported in the Telegraph his conversations with Cheng Siwei, former vice chairman of the Chinese Communist Party Standing Committee. According to Evans-Pritchard, Cheng, who now acts as sort of an unofficial economic ambassador to the world, says that China is alarmed by U.S. money printing.

    Cheng stated on the record that China has lost confidence in the U.S. dollar and is moving toward a partial gold standard through reserve accumulation. “The U.S. spends tomorrow’s money today,” he said. “We Chinese spend today’s money tomorrow. That’s why we have this financial crisis.”
    “If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in U.S. bonds, and this is very difficult to change, so we will diversify,” he said. “Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not to stimulate the markets.”

    But China doesn’t seem too overly concerned about the price—it just wants the gold. The Chinese government has even unleashed an advertising campaign through its state-run media to encourage people to purchase gold and silver as a way to invest and protect their wealth. The theme seems to be: Get as much gold into the country as possible before the crash comes.
    Other nations are grabbing their gold and heading for the exits too. A few months ago, the United Arab Emirates announced that it had begun constructing a major gold storage facility that would be marketed to members of the Gulf Cooperation Council. The uae said it had requested its gold currently stored by the London Bullion Market Association to be sent home.
    Bob Chapman’s International Forecaster reports that Germany stores significant portions of its gold with the U.S. government. He says that Germany has asked that its gold stored in the U.S. be transferred back home. Economic analyst Jim Willie also mentions unconfirmed reports that Germany has requested that its gold be sent back.

    Even Switzerland has threatened to remove its gold from custodial accounts in the U.S. Reuters reported in February that the populist Swiss National Party (Switzerland’s largest political party) said that if Washington decided to go ahead and force Swiss Banking Giant ubs to divulge names of its banking clients that Switzerland should, among other things, pull all of its national gold reserves from America. America has since pressed ahead with its case. In August, ubs said it would release approximately 10,000 client names.
    Everywhere you look, big events are occurring in the global economy. Last week, the United Nations said that the dollar’s unique role as a global currency was at an end. Although China, Brazil, Russia and India have all called for a new economic system not based on the dollar, this is the first time that a multinational institution has suggested scrapping the greenback. Also last week, the U.S. administration was forced to ask Congress to raise the debt ceiling again—this time to over $12 trillion—a level that will be breached by October. On Friday, three more banks failed in the U.S., bringing the total to 92 this year. The Federal Deposit Insurance Corp. recently increased the number of problem banks on its watch list to 400—up from around 300 during the first quarter of the year. In Britain, last week, the World Economic Forum listed Britain’s economy as less stable than Peru’s.

    The world is awaking to the possibility that America and Britain face real collapse. The part that stings the worst is that one can’t blame them for getting their gold while they can. They are right: The facts indicate America’s and Britain’s economies are going down. It is just a question of time.
  13. Shinmen Takezo

    Shinmen Takezo Monkey+++

    I've heard it all before, from "when the Dow goes over 10,000 it will all collapse like a house of cards", to Y2K, which turned out to be Y2what? to "August 26th the US monetary system will collapse"

    To many people financial talk is just completely abstract.
    It's all yammer and hyperbole.
    Most people tune-out when the talking heads on TV and radio start talking about numbers and percentages.
    This is the reason why Ross Perot used those pie charts on his debates in the early 90's.
    If someone can visualize what is going on, they get it suddenly.

    This is why this is the tone of the above response.
    And to answer that...

    The stock market is not an indicator of the economy.
    It is just a casino.
    And the financial games played inside are not different from games played with dice, cards, chips and felt in Las Vegas.
    In fact the games played inside the Wall Street Casinos are incredibly crooked.
    In Vegas if you get caught cheating--you go to prison.
    In Wall Street if you cheat, you get promoted to the President's staff of advisers.

    The dollar is just a boxtop now.
    It's like a casino chip. A bottle cap. Monopoly money.
    It's an idea, which for now people accept as money.

    In fact like casino chips which divorce you from the reality of playing with federal reserve currency, the dollar is also a casino chip divorcing you from the reality of real money (gold and silver).

    All fiat currencies fail.
    All of them introduced in history have gone down with disasterous results.

    The US dollar is soon to implode.
    There are some analyists that are saying that the process will begin sometime this fall.
    Perhaps it could--I am not sure, only sure that it will happen in the short term (not distant future).

    If the process begins, it could (actually will) happen swiftly.
    As in a matter of weeks at the most.

    There is a direct, dire and pressing reason that the Chinese government is moving all their gold stocks back to their homeland.
    The secondary reasons given in the article (to open their own gold storage facilities) is propaganda--and put there so as not to alarm people.

    Once panic and reality sets in, there will be no going back.
    The percieved value of the US dollar will vanish quickly.

    I think this is the single greatest threat to our country.
    It is a threat that could very well dissolve our country (see fall of Soviet Union).

    There were statements going back into 2007 and slightly earlier by all the turd world thugs saying that "the USA was about to fall."
    I (like all of you) dismissed all of this as posturing and propaganda.
    But over the last seven months or so I began to realize that these guys knew what was comming.
    They/them also have access to all the financial data, and have access to smart people who can add and subtract.
    If one of these people tells says that you are heading for bankruptcy and that it is unavoidable--they are most likely correct.

    The only question is not "if," but "when."

    Then yesterday on the Glenn Beck show I saw solid proof that the Federal Reserve is buying back US issued debt instruments.
    He had it all on the big screen and it was undisputable.

    This is also a key indicator. This is the signal that the titanic is about to make its final plunge.
    This says that few are one is willing to throw their money away on us anymore.
    And once this process stops, we are completely sunk.

    Imagine one Monday morning you wake up to a phone call, and it's a good friend tell you to turn on the television.
    You do so and it's President Seotoro telling the nation not to panic--that the banks and bank teller machines will soon be open again.
    Then you rush to the store with your credit card in hand--but this does not work, because all of the big credit card companies are banks and they are insolvent and incapable of issuing credit.

    Now extrapolate this outward--to food production, delivery, farmers, etc. who have no money or credit to plant or produce.
    Extrapolate this out to oil deliveries, gas stations, and so on.

    You will see what could happen to this country in short order.
    When this does happen there will be a collapse in authority in DC.
    They will cease to be relevant, as did the Soviet Government during their economic collapse.

    Extrapolate this outward to how it will affect your life personally.
    Your job.
    Your family.
    Your home.

    Yes keep some stuff around in case of earthquakes, hurricanes, tornadoes and floods--this is important.
    A natural disaster will not unmake the USA.

    But when this economic disaster unfolds there will be no relief coming from anywhere or anyone.
    Because this will completely unmake the USA as we know it.

  14. Hess

    Hess Monkey++

    If you stick with the Gerald Celente camp you will not go wrong. I recently listened to his predictions from July 9, 2009 and he has hit the nail 100% on the head.

    Good thread ST
  15. Tango3

    Tango3 Aimless wanderer

    Long as we;'re throwing an unmitigated "DOOMFEST" ohno

    I'LL TOSS THIS POST IN (From the LATOC BOARD) :THE IMF HAS CREATED sdr'S (SPECIAL DRAWING RIGHTS) AN EMBRYONIC easily convertable world currency to replace the current reserve ( the u.s. dollar)

    EDIT: I am stickying YET ANOTHER BIG MOMENT IN HISTORY(if it turns out to be true, I am investigating). This is what we have talked about at naseum. THE SDR(Special Drawing Rights at the IMF or International Monetary Fund) is being made convertable into other currencies and the IMF beefing up their ability to service this type of request. If the article is even close to being right, the IMF is looking to increase their ability to leverage by a factor of 15 or more.. Going from gold reserves of 33bln to 283bln is HUGE and should be shouted from the rooftops if true..

    Please read the article and THANK YOU ORGINAL POSTER FOR FINDING THIS!!! Great find...

    In a new article on kitco, analyst Paul Nathan cites a report in Bloomberg that the IMF and representatives from China, Russia and Brazil voted to make the SDR (special drawing right) convertable to any currency. The first reserve of SDR's was created out of nothing at that vote, and is now availble to act as a neutral medium to move international currencies through. Anyone with a large horde of cash can now move it around the world at will, as long as the IMF give the say so. As I see it, this act cocks the gun for a bullet of massive, nation destroying inflation. Here's what Nathan says...

    “A number of members with sufficiently strong external positions” have already said they are ready to set up or expand existing arrangements enabling the sale or purchase of SDR's, the IMF said. The lender typically acts as a broker and arranges transactions between parties at no cost. (End News Release)

    What this means is that for the first time in history we have a world central bank capable of creating money out of thin air. No longer does the IMF need to borrow money with a vote of all members plus the consent of the US congress. It can simply create whatever amount of money it needs through the creation of SDRs. Not for itself, mind you, but for the world. The SDR has been around since 1967, but never as a convertible asset. That changed Friday, August 28th, 2009. The SDR has quietly mutated.

    The decision was made August 7th, in an IMF vote. According to the IMF "global reserves will increase from just USD33bn to USD283bn or about 4% of global reserves excluding gold. In addition, the IMF will start issuing SDR notes later this year (China, Brazil and Russia will be the main buyers). These SDR notes can be counted as part of currency reserves and hence SDR assets could reach 5% of total reserve assets later in 2009 and possibly surpass GBP, JPY and CHF in importance as reserve assets." This is a foot in the door.

    the rest of the article is here
  16. Hess

    Hess Monkey++

    Good post Tango3. Looks like the 'House of Rothchild' will end up owning the whole world.
  17. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    Looks like an interesting way for a Bank to collect interest on money they never had on money that was created out of thin air in the first place all while sucking away world $ reserves slowly from the system so that the monetary system doesn't collapse, but rather sets the world up for a single currency that would be able to swallow up all the others.
  18. Tango3

    Tango3 Aimless wanderer

    Thanks needed that...
    All hail Octavia!!!! "
    "costumes they stayed up last night making themselves!" Love it!!!![applaud][rofllmao][rofllmao]:lol:
  19. Shinmen Takezo

    Shinmen Takezo Monkey+++

    Re: Here's your homework

    Yeah, there's a lot of information to consume here.
    Wade through it and get an idea of where we are going.
    These are links from another thread which I started on another site.
    I started posting them early in August.
    But all contain very, very interesting and important information.

    I do believe that we are headed for a severe collapse.
    But the time frame?!!!
    This is the only factor in dispute now

    Mankow summarized some very interesting stuff in one article...

    Then Larouche stated churping in on this subject last month.
    Yes he used to be a socialist. Yes his organization is somewhat cult-ish.
    And no I do not agree with many of his solutions, but I do agree with his analysis of the current situation.
    Here's is what he published last month....

    Emergency statement to Barry Seotoro by Larouche...

    Long, long video on the subject by Larouche....

    Webster Tarpley article on the comming problems...

    An interesting (almost tinfoil) interview with the director of the Web-bot...
    China Defense minister speech on USA extermination

    Good interview with Celente...

    A great vid to help you grok the situation....

    China to default on deravities contracts....

    Interview by Glenn Beck with Ron Paul.
    Listen to what George Sorros says in the clip.
    Listen very closely!.....

    Now if you can't connect all the dots with this information, I don't know what!

    More to follow as it breaks...
    Last edited by a moderator: Jan 26, 2015
  20. Tango3

    Tango3 Aimless wanderer

    Go you one better GOV to ask banks to bailout FDIC! weirder and weirder...

    Tired of the government bailing out banks? Get ready for this: officials may soon ask banks to bail out the government.

    FDIC Chairwoman Sheila Bair
    Senior regulators say they are seriously considering a plan to have the nation’s healthy banks lend billions of dollars to rescue the insurance fund that protects bank depositors. That would enable the fund, which is rapidly running out of money because of a wave of bank failures, to continue to rescue the sickest banks.
    The plan, strongly supported by bankers and their lobbyists, would be a major reversal of fortune.
    A hallmark of the financial crisis has been the decision by successive administrations over the last year to lend hundreds of billions of taxpayer dollars to large and small banks.
    “It’s a nice irony,” said Karen Shaw Petrou, managing partner of Federal Financial Analytics, a consulting company. “Like so much of this crisis, this is an issue that involves the least-worst options.”

    Bankers and their lobbyists like the idea because it is more attractive than the alternatives: yet another across-the-board emergency assessment on them, or tapping an existing $100 billion credit line to the Treasury.
    The Federal Deposit Insurance Corporation, which oversees the fund, is said to be reluctant to use its authority to borrow from the Treasury.
    Under the law, the FDIC would not need permission from the Treasury to tap into a credit line of up to $100 billion. But such a step is said to be unpalatable to Sheila C. Bair, the agency chairwoman whose relations with the Treasury secretary, Timothy F. Geithner, have been strained.


    Current DateTime: 04:21:35 22 Sep 2009
    LinksList Documentid: 32962013

    “Sheila Bair would take bamboo shoots under her nails before going to Tim Geithner and the Treasury for help,” said Camden R. Fine, president of the Independent Community Bankers. “She’d do just about anything before going there.”
    Bankers worry that a special assessment of $5 billion to $10 billion over the next six months would crimp their profits and could push a handful of banks into deeper financial trouble or even receivership. And any new borrowing from the Treasury would be construed as a taxpayer bailout that could open the industry to a political reaction, resulting in a wave of restrictions like fres

    FDIC May Ask Banks for a Bailout
    Last edited by a moderator: Jan 26, 2015
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