• Gold Money
    05/26/2016 - 14:27
    Here’s a question that might have you pondering: Is gold a commodity? More importantly, are we doing a disservice to the gold industry by calling gold a commodity? These may sound like silly...

Racketeering 101: Bailed Out Banks Threaten Systemic Collapse If Fed Discloses Information

Tyler Durden's picture




 
0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 08/27/2009 - 11:40 | 49956 RobotTrader
RobotTrader's picture

Meanwhile, investors are fleeing to the safety of these stocks while everything else is collapsing:

 





Thu, 08/27/2009 - 12:00 | 50010 AnonymousMonetarist
AnonymousMonetarist's picture

Same logic as robbing banks ... I guess.

Gosh Mr. Federales, if I'm here and you're here doesn't that make it our money, and whats wrong with frontrunning our money?

Thu, 08/27/2009 - 15:17 | 50454 Anonymous
Anonymous's picture

Thank you for considering the concerns expressed in this letter. If you have any questions or are in need of any further information, please contact Norman R. Nelson, Executive Vice President and General Counsel, at (212) 612-9205.

Thu, 08/27/2009 - 20:13 | 51037 ZerOhead
ZerOhead's picture

Hey Norman at "The Clearing House"

I still haven't heard back from you since you mailed me that letter last year telling me that I may have won $10 million...

Thu, 08/27/2009 - 15:38 | 50507 Rusty_Shackleford
Rusty_Shackleford's picture

You're absolutely right.
It is our money.  
                   
Yours, mine and everyone else's
in this country.  
                   
But it is Ben's Fed.
Vikram, Ken, Loyd, up front!
                  
Mr. AnonymousMonetarist has been kind enough
to bring us some of his investments.
                  
Be my guest.
Help yourselves.
                  
Get a good one.

Thu, 08/27/2009 - 20:10 | 51034 Anonymous
Anonymous's picture

Rusty, the last I looked, it had 'Federal Reserve Note' printed on it right at the top. IMHO this implies that any money created by the Federal Reserve beleongs to said same entity. Might as well have had FOCS printed on it, 'Federa Organized Crime Syndicate'.

The peoples' money is commerce that can neither be taxed nor confiscated by a government, monarch, dictator, or political/corporate elite.

The people no longer have free commerce because even barter is taxable by the Federal government.

Thu, 08/27/2009 - 20:46 | 51078 AndItsGone
AndItsGone's picture

I usually cross out Federal Reserve and write PYRAMID SCHEME in Sharpie on my FRNs. Y'all should join me.

Fri, 08/28/2009 - 07:59 | 51499 Anonymous
Anonymous's picture

Have the US government issue its own fiat and cut all ties to the Federal Reserve Bank and then watch what happens.

Fri, 08/28/2009 - 14:03 | 51958 Anonymous
Anonymous's picture

Skull fragments.

Tue, 09/01/2009 - 03:54 | 54838 Anonymous
Tue, 09/01/2009 - 03:57 | 54839 Anonymous
Mon, 08/31/2009 - 14:25 | 54097 hbjork1
hbjork1's picture

Anonymous:

Perfectly on target!

It is goods and services exchange that i the determinant of the quality of our lives.  Money is just a mutually agreed on medium of exchange across thousands of miles, a variety of subclimates, languages and tribal affiliations (that we call nationalities). 

Lots of public stress out there right now.  It is a time of change.  It will go a lot easier if we can retain confidence in out governmental systems including the relative value of the "Federal Reserve Note" currency.

"In a time of drastic change, it is the learners that inherit the future.  The learned usually find themselves equipped to live in a world that no longer exists." (Eric Hoffer)

For starters, we should spend some of the billions we are giving away to send the "would be" financial lights of the future to school where they must demonstrate understanding of  real world tensor math with the physicists and engineers.

One of Merton's credits in Wikipedia is "financial engineer"   

I have to think his math is a little weak.

 

 

 

 

 

 

Mon, 08/31/2009 - 14:55 | 54161 hbjork1
hbjork1's picture

Anonymous:

Perfectly on target!

It is goods and services exchange that i the determinant of the quality of our lives.  Money is just a mutually agreed on medium of exchange across thousands of miles, a variety of subclimates, languages and tribal affiliations (that we call nationalities). 

Lots of public stress out there right now.  It is a time of change.  It will go a lot easier if we can retain confidence in out governmental systems including the relative value of the "Federal Reserve Note" currency.

"In a time of drastic change, it is the learners that inherit the future.  The learned usually find themselves equipped to live in a world that no longer exists." (Eric Hoffer)

For starters, we should spend some of the billions we are giving away to send the "would be" financial lights of the future to school where they must demonstrate understanding of  real world tensor math with the physicists and engineers.

One of Merton's credits in Wikipedia is "financial engineer"   

I have to think his math is a little weak.

 

 

 

 

 

 

Wed, 09/02/2009 - 13:45 | 56348 Rusty_Shackleford
Rusty_Shackleford's picture

I guess no one actually "got" the joke here.

 

Sad, really.

 

This interchange is a play on the dialogue between Spicoli and Mr. Hand from Fast Times at Ridgemont High.

 

I've been thinking about this,
Mr. Hand.



If I'm here and you're here,
doesn't that make it "our" time?



There's nothing wrong
with a feast on "our" time.



You're absolutely right.
It is our time.



Yours, mine and everyone else's
in this room.



But it is my class.
Hamilton, Brandt, Cornfeld, up front!



Mr. Spicoli has been kind enough
to bring us a snack.



Be my guest.
Help yourselves.



Get a good one.

 

Fri, 08/28/2009 - 10:24 | 51633 Anonymous
Anonymous's picture

Who care we know who the banks are. Its no secret.69

Thu, 08/27/2009 - 15:43 | 50519 JR
JR's picture

All efforts to look inside the Fed are to be commended, but with the robbers running the banks and the regulators, how is justice to be done? Look at how many months the Fed and its hundreds of professionals have had to cook the books and obfuscate the evidence since the lawsuit was filed. Aren't they pros at mark to fantasy? Horse sense tells me that if the courts were serious, they would have impounded the Fed’s books immediately, before there was a chance for the boys at the NYFed to falsify them. In the name of justice, isn’t it too late now? The Fed didn’t reveal the books when it was needed. The fact that it’s being forced to come up with an answer now is just propaganda, IMO. Noboby will believe it. And who’s to say it didn’t have two sets of books in the first place. Or no books. This is a secret organization, with more power than the Federal government. The Fed has never been audited, and under Barack Obama--who has more central bankers in his administration than any other administration in history according to Nathan Martin of Nathan’s Economic Edge--there will be no truth exposed now.  The world will never know where these monies went--or where they are now.

Fri, 08/28/2009 - 00:48 | 51375 dot_bust
dot_bust's picture

Better yet, what's wrong with systemic collapse? If the system is inherently corrupt and doesn't allow for a fair and equitable distribution of wealth, then the system should be allowed to collapse.

The incessant propping of failed companies just drains the country of its resources, impoverishing the people. The Fed propped in the 1930s, dragging the Great Depression out for 10 years. It only had to last 2 years, not 10.

Fri, 08/28/2009 - 08:08 | 51506 Enkidu
Enkidu's picture

When the Madoff ponzi was discovered nobody thought to just carry on with the scheme - however, when the American ponzi was discovered they just decided to keep it aflowing!

Fri, 08/28/2009 - 12:09 | 51799 Anonymous
Anonymous's picture

Um. Yes, in fact the SEC allowed Madoff to continue scamming for years.

Fri, 08/28/2009 - 02:00 | 51413 Spartacus
Spartacus's picture

Treasury Document Called AIG Investment ‘Highly Speculative’ (BLOOMBERG)

Fri, 08/28/2009 - 11:23 | 51743 Anonymous
Anonymous's picture

The United States is going to pass a health care plan

written by a committee, whose head says he doesn't understand it,

http://www.youtube.com/watch?v=t32ckkdlcao

passed by a Congress that hasn't read it but exempts themselves from it,

http://www.heartland.org/publications/health%20care/article/12769/Congre...

signed by a president that also hasn't read it and who smokes,

http://www.washingtontimes.com/news/2009/jun/23/president-obama-admits-h...

with funding administered by a treasury chief who didn't pay his taxes,

http://www.youtube.com/watch?v=eKVxGlkPRlo (2:20 seconds into this clip)

overseen by a surgeon general who is obese, and

http://abcnews.go.com/Health/story?id=8129947&page=1

financed by a country that's nearly broke.

http://www.usdebtclock.org/

What could possibly go wrong?

Fri, 08/28/2009 - 16:23 | 52177 JR
JR's picture

There’s much more in the article and it’s the kind of social thinking you can’t believe that’s been written down, but here’s a sample from yesterday ‘s WSJ of the writings of Dr. Ezekiel Emanuel, Obama's health-care adviser and brother of Obama’s powerful chief of staff Rahm Emanuel:

“Dr. Emanuel argues that to make such decisions [whose life is worth saving], the focus cannot be only on the worth of the individual. He proposes adding the communitarian perspective to ensure that medical resources will be allocated in a way that keeps society going: ‘Substantively, it suggests services that promote the continuation of the polity—those that ensure healthy future generations, ensure development of practical reasoning skills, and ensure full and active participation by citizens in public deliberations—are to be socially guaranteed as basic. Covering services provided to individuals who are irreversibly prevented from being or becoming participating citizens are not basic, and should not be guaranteed. An obvious example is not guaranteeing health services to patients with dementia.’"

Taken from yesterday’s WSJ article by Betsy McCaughey, "Dr. Ezekiel Emanuel Wants Health-Care Rationing,” the Link includes among other things, Dr. Emanuel’s Reaper Curve:

 http://online.wsj.com/article/SB1000142405297020370660457437446328009867...

Thu, 08/27/2009 - 12:11 | 50042 Anonymous
Anonymous's picture

Hope you don't mind, I reprinted your comment along with this post by ZH on our site, here: http://www.philstockworld.com/2009/08/27/racketeering-101-bailed-out-ban...

(if you'd like it removed, please let me know here or at ilene@philstockworld)

Thu, 08/27/2009 - 12:48 | 50145 Gilgamesh
Gilgamesh's picture

When I find out that John Paulson was buying FNM and FRE common earlier this month... I might just quit trading stocks, or hedging against longs in any way.

Thu, 08/27/2009 - 13:53 | 50253 Anonymous
Anonymous's picture

How do you know he wasn't closing his short positions which he made billions on before the collapse?

Thu, 08/27/2009 - 13:38 | 50235 Assetman
Assetman's picture

So... do you think anyone in MSM will run with this veiled threat? 

Or do you think there will be an active campaign to suppress it?

I cannot imagine this will be a subject for discussion on CNBS.

 

Thu, 08/27/2009 - 15:06 | 50435 topshelfstuff
topshelfstuff's picture

basically told the Judge to go .... ...self, just like The People have gotten

what is needed id for The People to get a hint on what is going on. if enough of a hint gets to them, they'll finally Open their Eyes and demand to hear it all

Thu, 08/27/2009 - 15:34 | 50500 dnarby
dnarby's picture

Hmm...

The banks seem to be mistaking judges for congresscritters.

Could be a major miscalculation on their part.

Thu, 08/27/2009 - 14:33 | 50350 Anonymous
Anonymous's picture

I'm missing something here. They say that if we knew the truth, these banks would collapse immediately. And the "market" reaction to them saying outright that many key institutions are, in reality, so frail that they would collapse if light hits them, is for the shares of these pieces of shit to rally MORE??? Yeah....right. This market is entirely bogus. There is not a shred of integrity to the markets. They are pure farce. Some are grateful for this because their portfolios have risen (even though they won't now sell). They should cry instead, because our REAL economy is totally ruined as a result. So long as the markets are controlled by an oligarchical parasitic financial organized crime syndicate, we as a nation are screwed. We are going to zero.

Thu, 08/27/2009 - 15:23 | 50465 Anonymous
Anonymous's picture

Thank you for considering the concerns expressed in this letter. If you have any questions or are in need of any further information, please contact Norman R. Nelson, Executive Vice President and General Counsel, at (212)

Thu, 08/27/2009 - 20:49 | 51085 Anonymous
Anonymous's picture

Do you know what a duvet is?

Thu, 08/27/2009 - 23:43 | 51310 Anonymous
Anonymous's picture

Yep,

And years ago - I heard this - i'll never forget the first time in winter 2001 - crossing back into Canada - it broke my heart and scared me

Now I'm jaded. But I still love this - awesome!!

http://www.youtube.com/watch?v=W2BwBiaSvNQ

I see a fit!

Later,
M

Fri, 08/28/2009 - 02:57 | 51433 Anonymous
Anonymous's picture

You see, Pinocchio, a lie keeps growing and growing
until it's as plain as the nose on your face.

Thu, 08/27/2009 - 11:42 | 49962 Veteran
Veteran's picture

Who are the jack asses who still work with these banks?  I would have pulled my money out long ago, just based on the fact that they are rapacious thieves who routinely plunder their own customers.  Add on the fact that are trying to hold the entire United States of America hostage.  Fuck, these assholes should all be in jail.  What the fuck is the matter with this country?!?  I feel like I'm taking crazy pills

Thu, 08/27/2009 - 12:19 | 50065 Oso
Oso's picture

and right there is the problem with our health system.  Doctors are too freely prescribing crazy pills!!  :P

Fri, 08/28/2009 - 05:24 | 51455 KevinB
KevinB's picture

Hey! If I didn't take my crazy pills, I couldn't stay sane!

Thu, 08/27/2009 - 13:43 | 50078 johnnyBoy
johnnyBoy's picture

From a competitive standpoint, where are the good banks cheering on full disclosure? Perhaps there are none?  Since they do not want to disclose info that would cause a systemic collapse, let's not disclose it but have our systemic collapse anyway..that will show'em! 

Thu, 08/27/2009 - 15:40 | 50512 Anonymous
Anonymous's picture

If you sit tight and keep your mouth shut, you might have less of a chance to be killed by regulators and fed to the TBTF banks for pennies on the dollar.

Thu, 08/27/2009 - 15:49 | 50528 Anonymous
Anonymous's picture

They're in the back room being told "..don't ever take sides with anyone against the Family... Ever."

Thu, 08/27/2009 - 16:19 | 50587 Anonymous
Anonymous's picture

FredoBank of Nevada

Thu, 08/27/2009 - 15:31 | 50490 Neo of Zion
Neo of Zion's picture

lots of wholesome community banks would love your deposit business...imagine what a run on the Clearing House would look like.

Fri, 08/28/2009 - 07:58 | 51498 Anonymous
Anonymous's picture

I agree, all other things being equal. But I don't think all other things are equal. The purpose of a bank run is to destroy the competition and consolidate wealth. The well-connected banks, such as Bank of NY-Babylon, will survive through their connections no matter how badly (or well) they're run. We've got ample evidence of that right in front of us, in this FOIA request. "Our business will be irreparably harmed if it's revealed we're insolvent. Therefore, you cannot reveal that we're insolvent." Unbelievable. The well-run community bank will be hit by the bank run just as hard as every other bank, but when they turn to the government for assistance, the government will say it just doesn't have the money to help.

Fri, 08/28/2009 - 10:52 | 51692 JR
JR's picture

It’s hard for me to believe that the American people will sit idly by while the Fed bankers and their enablers in Congress and the Oval Office rob them blind.  There comes a point at which Americans fight back; it's in their genes.  And history shows they fight with a vengeance.  Pent-up backlash is like a pressure cooker; if there's no release valve, it explodes. Americans are nearing that point.  This is not Sweden with its population of 9 million, whose central bankers “entered uncharted territory” and just dropped the deposit rate to minus 0.25, i.e., negative interest rates on bank deposits.

Do you think Americans would stand for that?  Let Ben, who’s a “close associate” of Sweden’s “vocal advocate” for negative interest rates and a “world-renowned expert on monetary policy theory”—Lars Svensson--give it a try.  Then, perhaps he and Lars will become renowned experts in the realilty of political backlash

Fri, 08/28/2009 - 11:49 | 51772 B_Movie
B_Movie's picture

The United States of America is the Land of the Blind.

Wed, 01/06/2010 - 18:09 | 184933 Anonymous
Anonymous's picture

What can we do?

Remember the criminals have the greatest military in the world in place among us.

Who is going to prevent this gang of thieves and thungs from doing whatever they want whenever they want?

Thu, 08/27/2009 - 11:44 | 49967 Anonymous
Anonymous's picture

When the Fed monopolizes the feeding trough we know where the pigs will congregate.

Thu, 08/27/2009 - 11:44 | 49968 straightershooter
straightershooter's picture

Can we say all the members of the Clearing House Association borrowed emergency fund, and, hence, insolvent?

Why hide if you have nothing to hide?

Thu, 08/27/2009 - 11:56 | 49999 SWRichmond
SWRichmond's picture

Insolvent?  IMO, the answer is yes.

"The disclosure would not merely "stigmatize [ ]"the institution or make it "look [ ] weak," but goes to its very viability."

If revealing facts about an institution's need for emergency bailout borrowing would call into question said institution's viability, then the viability of said institution is already at least questionable.

Thu, 08/27/2009 - 12:04 | 50021 AnonymousMonetarist
AnonymousMonetarist's picture

What we have here is a viability gap.

Thu, 08/27/2009 - 11:45 | 49972 pigpen
pigpen's picture

Fuck the FED - audit it already. We are not falling for your red herring, strawman disctractions. Let the game of chicken begin - we have nothing to lose as we have lost everything.

Stop raping US taxpayers and disclose what is on your balance sheet. Transparency and honesty prevent runs and rumor mongering.

WE are not fucking idiots - audit the place already - we don't want to hear anymore theoretical bullshit - just do it.

Do NOT follow this link or you will be banned from the site!