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Congresswoman Kaptur: There Has Been a Financial Coup D'Etat

George Washington's picture





 

Washington’s Blog.

In Michael Moore's new film Capitalism: A Love Story, Congresswoman Kaptur says there has been a financial coup d'etat, and that Wall Street - rather than Congress - is in charge.

In a must-watch interview with Bill Moyers broadcast Friday night, Kaptur also said:

  • The
    Federal Housing Agency used to insure 1 in 50 mortgages. But FHA now
    insures 1 in 4 mortgages, as the debt for bad mortgages has been dumped
    on the American people
  • "Banks have the power to create money". This again confirms and verifies that banks create money out of thin air, not based on the amount of reserve deposits on hand. See this and this
  • While
    - on paper - there are reserve requirements, banks have gone from 10 to
    1 leverage (where they could lend out 10 times their reserves) to - in
    the case of JP Morgan - 100 to 1 leverage. But with derivatives,
    leverage might be much higher
  • Instead of holding
    hearings on the core problems with the financial system, Congress is
    holding hearings solely on arcane, peripheral issues
 


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Mon, 10/12/2009 - 16:27 | Link to Comment Anonymous
Mon, 10/12/2009 - 15:54 | Link to Comment Anonymous
Mon, 10/12/2009 - 15:25 | Link to Comment Anonymous
Mon, 10/12/2009 - 17:08 | Link to Comment SWRichmond
SWRichmond's picture

In February 1864 Congress revived the rank of lieutenant general, which until then had been held only by George Washington and Winfield Scott. On March 9, President Lincoln nominated Grant for that top rank. Then, relieving General Halleck as general in chief, he made Grant supreme commander of all Union forces. Grant assigned his command of the western armies to General Sherman.

Mon, 10/12/2009 - 12:29 | Link to Comment SWRichmond
SWRichmond's picture

"Progressive" Congresswoman Marcy Kaptur says, and can be quoted as saying, since it is in the transcript:

"Why should the people who did it right be penalized for those that did it wrong"

Why indeed? 

While she is listed / labeled as "progressive", maybe she is starting to get it.

Edit: At the point now in the interview where she says this: "When Lincoln ran into trouble, during the Civil War, he got new generals. He brought in Grant. I hope that President Obama will bring in some new generals on the financial front."

Bad choice of analogies, unless she actually means sending Grant reincarnated to the offices of JPM and GS, and doing to them what Grant did to Georgia, in which case I think it's a fine idea.  Yankees ransacking, raping and pillaging Yankees?  Better late than never.

 

Mon, 10/12/2009 - 09:44 | Link to Comment docj
docj's picture

Gee, if only this Congresscritter were in a position to, you know, do something about this coup.

Oh, wait...

Mon, 10/12/2009 - 05:37 | Link to Comment Hephasteus
Hephasteus's picture

Good post. The only things banks truley create is economic problems. Which is why they needed a bailout they wanted to try to fix it with honest money. LOL But the FIRST thing they did was take 100 million of the bailout and fraction it 10 times to a trillion. If you are fractioning withing fractioning how many iterations do you run that before the accounting paradoxes start exploding the universe?

Mon, 10/12/2009 - 03:53 | Link to Comment loup garou
loup garou's picture

Uh-huh.

More like, “the piano player at the whorehouse”…

Mon, 10/12/2009 - 00:19 | Link to Comment Anonymous
Sun, 10/11/2009 - 22:30 | Link to Comment Anonymous
Mon, 10/12/2009 - 15:57 | Link to Comment ZerOhead
ZerOhead's picture

""Give me control of a nation's money and I care not who makes the laws." - Mayer Amschel Rothschild

How true... except this time they also get to make the laws.

Sun, 10/11/2009 - 21:56 | Link to Comment bugs_
bugs_'s picture

With computerized Monopoly you don't even need to make

slips of paper - the bank never runs out.

Sun, 10/11/2009 - 20:55 | Link to Comment DrPsycho
DrPsycho's picture

 

    The Moyers interview with Kaptur and Simon is amazing, I sent it to all my friends, many thanks for the link.

Sun, 10/11/2009 - 22:14 | Link to Comment agrotera
agrotera's picture

Simon Johnson is a truth teller extraordinaire.  And Congresswoman Kaptur is a hero to not be subject to the forces that purchase/rule most of her colleagues.

Sun, 10/11/2009 - 20:24 | Link to Comment JR
JR's picture

And this?

In Ty Andros’2009 Outlook, Part 2:Bonds,”posted January 30, 2009 on Financial Sense University, he graphed the “Total Credit Exposure to Risk Based Capital %” in the forth quarters from 2001 to 2007, and in the first three quarters of 2008. A graph shows that the percentage of risk-based capital for the top five banks in 01Q4 was $185.2%, and in 08Q3 was 317.4%.

 It also shows that JP Morgan led the pack in risk capital.  My question, why is JP escaping the implosion? Does the fact that Jamie Dimon and his board of directors held a board meeting in the nation’s capital for the first time on July 20, 2009 have anything to do with it, i.e., a transference of power from the people to the financials? Here are the 08Q3 exposures:

JPMORGAN CHASE – 400.2%; BANK OF AMERICA – 177.6%; CITIBANK – 259.5%; WACHOVIA – 85.2%; AND HSBC – 664.2%.

It is worth noting that JP’s exposure in 01Q4 was 438.8% as compared to BAC’s 94.7%. Said Andros: “These banks are representative of the problem they all face: INSOLVENCY. For a complete look at the picture, you can link to this report from the Office of the Comptroller of the Currency Administrator of the United States outlining the unbelievable LIABILITIES and LOSSES these banks face. This is a nightmare on WALL STREET and MAIN STREET.” 

It would have been interesting to have the figures on the new bank holding companies: Goldman Sachs and Morgan Stanley.  In truth, Goldman was probably insolvent, too, for it was Goldman that was using the most leverage on the upswing, Goldman that was out the farthest on the ledge.

http://www.financialsense.com/fsu/editorials/andros/2009/0130.html

Sun, 10/11/2009 - 21:13 | Link to Comment agrotera
agrotera's picture

BINGO!

Considering the price action of GS and MS stock alone makes one think they were bankrupt prior the the devil's deal -- letting Lehman fail, with the promise of free money from the back door of AIG, more money from the big bet on Lehman going down, halt on shorting their stocks and instant bank holding status, all gave the sacred brothers of Paulson enough of a promise to get them to the money fest at treasury the weekend after TARP was passed....

When paulson insisted that AIG be "GIVEN" 85billion right after refusing Lehman 6 billion, it was quite obvious what had occurred...i still don't know why he isn't in jail for treason!

Sun, 10/11/2009 - 21:59 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

I'm waiting too. Paulson is a crook. I'm hoping disclosures in the BofA trial might at least smear his name by time they're done.  Too much to hope for the perp walk he so richly deserves for serving the interests of GS before the needs of his country.  Another fuckwad.

Mon, 10/12/2009 - 01:42 | Link to Comment Miles Kendig
Miles Kendig's picture

Indeed Ned.  Paulson should be just one more 016 or 053.

Sun, 10/11/2009 - 22:11 | Link to Comment agrotera
agrotera's picture

paulson won't necessarily go free-- i am sure he has a cosmetic surgeon on call, money stashed in all the right places, and a tanked up jet ready to head for an "new life" somewhere!  You cant be a master criminal his size and not be ready for the game to be over...and i am not willing to believe that justice can NEVER be served on that man, and his accomplices.

Sun, 10/11/2009 - 19:23 | Link to Comment Anonymous
Mon, 10/12/2009 - 13:19 | Link to Comment reading
reading's picture

Well anon,

Since you admitted that your reading skills are challenged as it takes you all day to read the information on ZH, I would suggest you perhaps visit You Tube and listen to what the woman says.  Perhaps take off you conservative cap first and strap on some headphones for better sound quality and you'll see she's recommending accountability at all levels and most importantly, she would like for the taxpayer to stop having to foot the damn bill for broken and corrupt financial system.

Obviously, she strikes a chord as she really brings out the assholes.

 

Mon, 10/12/2009 - 07:37 | Link to Comment Anonymous
Mon, 10/12/2009 - 01:38 | Link to Comment Anonymous
Sun, 10/11/2009 - 23:25 | Link to Comment Anonymous
Mon, 10/12/2009 - 01:41 | Link to Comment Miles Kendig
Miles Kendig's picture

hahahahahaha.

Go back to the government for another handout troll.

Mon, 10/12/2009 - 00:43 | Link to Comment TumblingDice
TumblingDice's picture

turd sandwich. btw shes standing up against the people who funded the bolsheviks so your analogy is an epic fail.

 

 

let me re-iterate here, just so were clear, the conclusion from all this is...

YOU=FAIL

Mon, 10/12/2009 - 01:03 | Link to Comment Anonymous
Mon, 10/12/2009 - 12:03 | Link to Comment TumblingDice
TumblingDice's picture

ooops. in that case, i apologize to the anon. my rage will be channelled with better discretion next time.

Mon, 10/12/2009 - 11:43 | Link to Comment gmrpeabody
gmrpeabody's picture

+1

Sun, 10/11/2009 - 21:55 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

Another fuck wad.  This lady is really bringing them in today.

Sun, 10/11/2009 - 23:22 | Link to Comment Careless Whisper
Careless Whisper's picture

Just another JPMorgan V.P. trying to discredit Kaptur. You know the drill by now.

Sun, 10/11/2009 - 19:21 | Link to Comment JR
JR's picture

Remember this? On Zero Hedge 07/28/2009

Fitch: Financial Companies Hold 99.7% of All Derivative Contracts

Fitch has released a comprehensive study on derivatives held by various corporations and has come out with some disturbing results: as Zero Hedge's recent disclosure of data from the Office of the Comptroller of the Currency confirmed, the bulk of the derivative risk is concentrated not merely in the "financial company" category (99.7%) but in a subset of just five companies, which account for an "overwhelming majority" of derivative assets and liabilities.

The companies in question (Total Notional Derivatives: Assets & Liabilities, $ in Trillions)

  • JP Morgan:$81.7;
  • Bank of America:$80.0;
  • Citigroup:$31.5;
  • Morgan Stanley:$39.3, and of course
  • Goldman Sachs: $47.8 (this is an OCC estimate: Goldman has not disclosed notional amounts in their derivative book, only # of contracts);

If you want a preview of what the Basel III definition of "Too Big To Fail" will look like, the above five companies is a great place to start.

http://www.zerohedge.com/article/fitch-financial-companies-hold-997-all-...

Sun, 10/11/2009 - 20:31 | Link to Comment Anonymous
Sun, 10/11/2009 - 19:01 | Link to Comment George Parr
George Parr's picture

Why is Kaptur or anyone else surprised?

I am not making up what.

We spent a lazy afternoon playing a family game of monopoly.

It had been a long time, so I read the rules again, and also the "Questions people often ask about Monopoly game rules". Here is number 11, an exact quote.

What if the bank runs out of money?

Some players think that the Bank is bankrupt if it runs out of money. The bank never goes bankrupt. To continue playing, use slips of paper to keep track of each player's banking transactions - until the Bank has enough paper money to operate again. The banker may also issue "new" money on slips of ordinary paper.

So there it is. The financial practices of the united States are based on the rules of Monopoly. And fittingly, we will all end up owing monopoly money, formerly known as dollars.

 

Mon, 10/12/2009 - 00:39 | Link to Comment TumblingDice
TumblingDice's picture

now this is just awesome, great exprapolation. we need to switch games soon. good old fashioned chess will do, other wise the next step is risk.

...amazing how telling this is.

Sun, 10/11/2009 - 18:12 | Link to Comment RockyRacoon
RockyRacoon's picture

Term limits... now!  Phase these folks out.  Think about it.

The problem is how do you convince someone to terminate their own job?

Sun, 10/11/2009 - 18:02 | Link to Comment Anonymous
Mon, 10/12/2009 - 13:09 | Link to Comment reading
reading's picture

Anon,

Frankly I don't know what the hell point you are trying to make but the congresswoman's position isn't new asshole. 

Sun, 10/11/2009 - 23:09 | Link to Comment Anonymous
Sun, 10/11/2009 - 21:53 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

Nice try, dickwad.  Now, go find the WSJ-Blankfein interview to whack off to. Dick.

Sun, 10/11/2009 - 17:16 | Link to Comment Shylock81611
Shylock81611's picture

Timothy Mc Veigh's services are needed.

Mon, 10/12/2009 - 17:19 | Link to Comment Anonymous
Sun, 10/11/2009 - 23:28 | Link to Comment Anonymous
Sun, 10/11/2009 - 16:31 | Link to Comment Careless Whisper
Careless Whisper's picture

Props to Kaptur. No banksta gonna roll her.

Sun, 10/11/2009 - 15:43 | Link to Comment gossamer
gossamer's picture

The movie was my first introduction to Marcy.  That chick has some cahunnies.  We need about another 300 congressmen just like her and maybe we have a chance.  I have a feeling she's not a favorite of the MSM because she doesn't don the corporatocracy colors, hence our limited exposure to her.

Sun, 10/11/2009 - 16:20 | Link to Comment Ruth
Ruth's picture

You should watch her stuff on Youtube, good stuff

Mon, 10/12/2009 - 01:38 | Link to Comment Miles Kendig
Miles Kendig's picture

Indeed.  Been a presence for some time.

Sun, 10/11/2009 - 14:12 | Link to Comment Sqworl
Sqworl's picture

I saw the movie and her speaking candidly will hurt her chances of re-election and doing anything for her constituents in the future.  sad.

Mon, 10/12/2009 - 14:59 | Link to Comment Anonymous
Mon, 10/12/2009 - 06:14 | Link to Comment Anonymous
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