We Need New Banks. Black Swan My Ass.

If our crummy government is not willing to nationalize the banks in the way Bill Seidman wanted, then we need new banks. The new banks could be capitalized to the max by the government, and they could provide lending and then with good underwriting, keep the loans. They can bypass the entire securitization market which is frozen.

The government could just let the old banks wither or succeed (unlikely) on their own. The government could just let the banks die for their evil plans of easy money without sound underwriting cooked up at Basel 2.

And while I am at it, I want you to know that the concept of this bank scam and toxic bubble in real estate was not a Black Swan. Nassim Nicholas Taleb wrote a book called "The Black Swan" which attempted to explain all this financial turbulence as being a random unforseen event. Nothing could be further from the truth. I have explained at www.dontpaycreditcards.com/NWO.html that this was a preplanned scam, and that it was established in the western world as an override of the sovereignty of the nations.

So folks, don't be fooled, the financial bubble that tripled your house price was a scam. It ended up doing major damage and the banks are not lending properly because of it. That is why we need a new banking system. We need to start over.

I hope the stock market doesn't go to 1000 in the Dow before we realize that the international banks must be terminated in some way by the FDIC.

We are either facing a winter of deflation, lasting many years or a massive inflation due to the spending on the bank and insurance company bailouts. If the dollar tanks, if assets like gasoline rise through the roof and if interest rates rise, there will be a steep decline in economic activity, only topped by absolute deflation. I for one will be very upset if I have to pay terrible prices for this inflation effort by the fed.

The treasury has to issue 2 trillion dollars in treasury bond debt in two years, at over 30 billion per every ten days. That is at least twice the normal level. I don't see how the world can swallow the demand. Then if the fed buys the bonds to try to lower interest rates, there will be massive inflation as a result. The "Black Swan" which was really a scam will hurt the average Joe unnecessarily. This scam never had to happen. It never had to go this far. I would like to see those involved prosecuted to the fullest, but don't hold your breath. You won't see any Goldman Sachs guys or alums going to jail.