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inna Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Feb-21-09 05:07 PM
Original message
MUST READ: America's Financial Apocalypse 2009 Update

Mike Stathis: "America's Financial Apocalypse 2009 Update"

http://www.marketoracle.co.uk/Article8919.html

..snip..

So the question begs to be answered…when will we see Fuld (Lehman Brothers), Thain (Merrill Lynch), Killinger (Washington Mutual), O'Neal (Merrill Lynch), Prince (Citigroup), Cayne (Bear Stearns), Schwartz (Bear Stearns), Dimon (JP Morgan), Blankfein (Goldman Sachs), Thompson (Wachovia), Raines (Fannie Mae), Paulson (former U.S. Treasury), Greenspan (former Fed Chairman), Cox (former SEC Chairman), and hundreds if not thousands of others responsible for this mess in handcuffs?

Don't hold your breath. It didn't happen after the S&L Crisis or the dotcom meltdown. And it's not going to happen now. Hopefully, you know how the game is played. They'll pick out a few scapegoats; minor players, as a way to appease nave Americans. This is the way it works. This is the sad reality of America. It's the American Dream for the rich and powerful, and the American Nightmare for everyone else. If you're a true American, you'll contact your congressmen and demand they be brought to justice. If they get enough calls, they'll feel the pressure to file charges. That's how it works. The media knows this. That's why they've done everything but stir the pot.


Tigers Never Change Their Stripes

Don't forget, these men cleared billions of dollars in bonuses by fudging financial statements while packaging trillions of dollars of fraudulent loans into securities. This was money taken from shareholders who were lied to, and investors who bought these toxic securities. It was a twist on the classic pump-and-dump scheme. In this case, CEOs pumped up revenues using outrageous assumptions, while hiding liabilities. Then they collected their bonuses – millions of shares of company stock at inflated prices; prices they inflated. Then they dumped these shares in the open market; to you and to your retirement plan. They did this for several years. Over the past four years alone, the financial industry paid out over $100 billion in bonuses to executives. Despite record losses of over $1.5 trillion from the banks alone (with at least another $2 trillion to go), most executives and all of the grunts that serve them have walked away with every penny. It was theft, plain and simple. Yet, there have been no claw backs. Where do you figure that money came from? It came from your pockets. It was the biggest heist in world history. These guys are directly responsible for destroying the world economy. Not only will they walk away unscathed, they'll walk away wealthier than before, strengthening the precedent that white collar crime pays in America, as long as you work for big corporations; corporations with cozy relationships with Washington. Without the fear of prosecution, CEOs will continue these scams over and over.

Even if you don't have any money in the stock market (no 401k, IRA, pension or any other retirement plan, and 529 plan), these ridiculous payouts still came from you because this crisis caused the Fed to smash rates to record lows. And this will eventually destroy the buying power of the dollar. In the meantime, banks are paying practically no interest on your savings.

Still, they aren't finished with you. They've taken your tax dollars and made sure to collect more bonuses while raising fees for bank accounts and credit cards. The banks are screwing you every way possible; you, the innocent victim. You should expect them to devise new ways to screw you. Tigers never change their stripes.

My advice is to put your money in a credit union. That's what I plan to do. Most credit unions are in good shape because they don't get involved in the same types of risky lending practices. That will send a strong message to these banks that you don't need them. They need you. Don't reward their crooked tactics, ridiculous bonuses and lavish spending sprees by keeping your money there. It's already bad enough they're siphoning off tax payer dollars for blatant mistakes.

Do your part and end all business relations with these banks forever. Do it now. Without your money they won't be in business for long. Besides, the banking system is insolvent. That's right. They don't have enough money to meet debt obligations. They're relying on the FDIC and backup from the U.S. Treasury. Together, if we pull our money from the banks, they will be finished. Then we can demand from Washington an entirely new banking system that will be devoid of these exploitative business practices and fraud. Ultimately, the people, once united are stronger than America 's organized crime syndicate; you know, Washington and corporate America.


America, Home of Bizzaro?

There hasn't even been the faintest mention by the White House, Department of Justice or the SEC of criminal, civil or securities fraud for the greedy crooks who orchestrated this heist. Millions lost their retirement savings, homes, and jobs. Sadly, some of these victims have already committed suicide. With regret, I estimate there will be many more. Millions of innocent Americans have suffered while the criminals stole enough money to ensure dynasties. I'd wager that most Americans would like to see these criminals commit suicide. But why would they? They are the winners of this charade. The media hasn't even made them feel shame because they are all partners in crime. It looks as if America has become the Bizarro world. At the very least, America has become the laughing stock of the world. And you can bet these crooks are laughing as they count their money, knowing they are untouchable. This is beyond outrageous.

..snip..

more at http://www.marketoracle.co.uk/Article8919.html
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sandnsea Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Feb-21-09 05:14 PM
Response to Original message
1. Standing On Chair and Yelling YES
This needs to get to the greatest as fast as possible. This is exactly what happened and these people need to be prosecuted.

IT WAS FRAUD

"these men cleared billions of dollars in bonuses by fudging financial statements while packaging trillions of dollars of fraudulent loans into securities."

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inna Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Feb-21-09 05:27 PM
Response to Reply #1
3. i like how he calls it a "heist"...

... because i'm afraid that's exactly the case - probably, one of the biggest "heists" in history, if not THE biggest.


and i don't doubt for a second that they are LAUGHING their asses off all the way to the bank (figuratively speaking; not as if they have to go anywhere to get to the bank, ahem).
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madrchsod Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Feb-21-09 05:23 PM
Response to Original message
2. mike has an interesting resume
http://seekingalpha.com/author/mike-stathis

http://www.amazon.com/Americas-Financial-Apocalypse-Pro...

since he has a vested interest in the collapse.....i`ll pass on anything he has to say
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leftstreet Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Feb-21-09 05:56 PM
Response to Reply #2
5. "America's Financial Apocalypse: How to Profit from the Next Great Depression"
LOL
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inna Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Feb-21-09 07:14 PM
Response to Reply #2
7. thanks for the links.

interesting indeed.

so, the dude is an investment advisor, he has tons of Wall St.-related experience, he foresees another 'great depression', and... perhaps he's trying to market his book. (it's not clear to me why you conclude that automatically makes him have "a vested interest in the collapse", though.)

as far as i could tell from that article, he says it exactly how he sees it, he knows exactly what he's talking about, and it's not as if he's trying to sell you anything (other than his book, perhaps; although that certainly doesn't appear to be his primary motivation behind the article). if anything, my impression is that his heart is in the right place, and that he is not afraid to speak truth to power (despite - or maybe because of?... - having extensive first-hand experience within the corrupt Wall St. system).

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leftchick Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 08:28 AM
Response to Reply #2
13. Good Lord!
if this isn't the pot calling the kettle black.....

Mike Stathis is the Managing Principal of Apex Venture Advisors, a business and investment intelligence firm serving the needs of venture firms, corporations and hedge funds on a variety of projects, including valuation analysis, deal structuring, investment strategy, market forecasting, and business strategy.

Prior to Apex Advisors, Mike worked at UBS and Bear Stearns, focusing on asset management and merchant banking. Before entering the business world he spent several years in the life sciences. He was selected as an NSF Research Fellow at UC Berkeley and has taught several courses in chemistry and the biosciences. He holds a Masters of Science in biological chemistry and biophysics from the University of Pennsylvania.
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progressoid Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Feb-21-09 05:50 PM
Response to Original message
4. He says, "My advice is to put your money in a credit union."
Anybody know of an online resource for checking the quality of local credit unions? I've been thinking about switching but not sure who to use.
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tbyg52 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Feb-21-09 07:03 PM
Response to Reply #4
6. I'm not sure there *is* a bad one.
Small and local, for the most part. Nonprofit, member-owned (if I understand the rules correctly). Still, I'd like to know as well....!
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inna Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Feb-21-09 07:40 PM
Response to Reply #6
8. credit unions

i'm sick and tired being with the Bank of America! i've been meaning to join a credit union for years (literally!), and the only reason i stayed with BofA was... convenience (the bastards have their their ATMS and branches all over San Francisco, they are sort of inescapable).

but... as far as i know, in terms of being federally insured, credit unions are just as safe as (or even safer than) banks:
http://www.ncua.gov/shareinsurance /

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ima_sinnic Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 07:54 AM
Response to Reply #8
10. even without ATMs, credit unions are convenient because they issue
Visa-branded debit cards that can be used at point of sale (at least, my two CUs do). If you need cash, you can buy a pack of gum at a supermarket and get cash back. This avoids all ATM fees.
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bluesmail Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 09:17 AM
Response to Reply #10
14. I use my credit union bank card anywhere there's a credit union atm.
This eliminates the fee. Proud to be a Credit Union member for over thirty years.
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ima_sinnic Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 12:01 PM
Response to Reply #14
18. right, that too. I forgot about the CU ATMs (nt)
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yorkiemommie1 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 12:19 PM
Response to Reply #14
20. me too!
My MIL gave us lots of sound advice and to use a credit union was one of them.
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TBF Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 12:19 PM
Response to Reply #10
21. Our credit union also has an agreement with other area credit unions
so we have many we can use - one that is within 5 miles of our house and open on Saturday mornings. You just have to know your account number when you go in, and they will help you without fees. It's so much friendlier than the big banks.
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TBF Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 12:18 PM
Response to Reply #8
19. We've used BofA for years and it's annoying to switch direct deposits
so I still have a small household checking account there, but we moved our savings to a credit union.
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geckosfeet Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 01:04 PM
Response to Reply #19
24. I closed my BOA account but opened a Sovereign account. They became
insolvent and had to sell out to a Spanish owned bank - then the Spanish bank took a big hit from Bernie "ponzi boy" Madoff!

My mortgage is with a credit union and I have a checking account there so I am transferring all my cash from Sovereign to that account. Now I need to get a debit card and checks from them and I will be good.
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TBF Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 01:38 PM
Response to Reply #24
29. Yes, I may switch the checking as well. It's kind of a headache to change
the direct deposit but I'd like to do it just to get BofA out of our lives.
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geckosfeet Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 02:10 PM
Response to Reply #29
30. I know. That's what I am saying. I just gt Soveriegn set up w/DD and then
they go belly up and are bought by Santander.

I will change DD to credit union eventually,,,,
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MattSh Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 04:11 AM
Response to Reply #4
9. Try this...
http://www.bankrate.com/brm/safesound/ss_home.asp

Remember that credit unions have specific membership requirements (must work for certain companies, live in certain towns, etc).
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dixiegrrrrl Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 11:24 AM
Response to Reply #4
17. try bankrate.com
They have a bank rating system, maybe credit Unions also are on it.
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Christa Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 08:10 AM
Response to Original message
11. K & R nt
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old mark Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 08:23 AM
Response to Original message
12. We have been using a credit union for over 15 years, and have
been happy with it. We have had several problems with banks in that same time.

mark
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Maineman Donating Member (411 posts) Send PM | Profile | Ignore Sun Feb-22-09 09:31 AM
Response to Original message
15. I (We) have used credit unions for about 25 yrs...
in New Mexico, Washington State, and Maine. I tried a big bank (Key Bank) in Washington and found it quite unacceptble. Credit unions are the way to go. You can walk in and ask to see their latest financial statement which they probably have sitting out in plain sight. You will need to find one for which you meet the membership requirements. Requirements I have seen were: live in a certain town or county, children attend school in a certain school district, family member associated with a certain employer. I have always found one I could join. Once you join, you can stay with them. Occasionally, a credit union will be weak, but usually they are just fine. They often network with others to provide more expanded services. Credit unions have local citizens on their board. They are like a coop. When I move to a new town, I always look for a credit union to use.

Second choice: a local bank or savings bank

Avoid: big national banks
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antimatter98 Donating Member (537 posts) Send PM | Profile | Ignore Sun Feb-22-09 10:42 AM
Response to Original message
16. Yes, and here are my points about this.
1. We've been scammed and materially cheated beyond belief and in REAL terms--our retirement accounts for one---and Congress and media are acting like it was no big deal. Why are those affected--potential retirees--also acting like it was no big deal? Protests? Marches on DC? Not happening. If I were an elite, I'd note this: Americans can be taken down to where they have nothing and will not react.

2. Congress just wants to 'move on, move forward,' and is willing to hand over trillions to the villans on our behalf, while doing very very very little for those in trouble on Main Street. Again, we see rumblings, but no real action/reaction from Main Street. Why is this?

3. We're saturated with media--the net, radio, satellite radio, tv over the air and cable--and we're just as screwed and isolated as those were in the 1930's, traveling in their beaten up Model T's to find work. What does this say about us, about our media, and our government?

4. The banks and investment houses have received free trillions. The people, very little. It's still a business/corporate world here in the US, and Congress plays along and we, citizens, go along. Why is this?

I cannot write down here how troubled I am that our country is being looted and destroyed and that Americans seem so mildly (like "NPR is concerned") annoyed, but not deeply upset, and action oriented on a national scale. Are we that afraid of our government? Are we that convinced that we don't matter?

Good Luck and best wishes to all.
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Greyhound Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 12:22 PM
Response to Reply #16
22. Many still have not come to grips with the facts, but he numbers are growing.
The thing with Americans in the past has been that they are slow to anger, but when they get there they go crazy.

When you get that letter every three months saying you have such and such in your retirement account, they get upset that it is less, but believe that there is still something there and that it will "come back" by the time they imagine it will be needed.

Once the bankruptcies begin...


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ljm2002 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 01:31 PM
Response to Reply #16
28. Divide and conquer has worked well...
...we should be more united than we are about this financial collapse. Unfortunately, we are also very divided on the wedge issues that have been used for the last 30 years to make half of the population hate the other half's guts or think they do.

We've been conditioned to think we have no common ground. That the other side is immoral and evil. One group thinks the other group is a bunch of baby killers; while that group thinks the other group is a bunch of conscienceless warmongers. Neither side can put aside these differences to look at the economic structures that are killing us all.

And on it goes...
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McCamy Taylor Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 12:46 PM
Response to Original message
23. The Banksters do this regularly. Morgan and Chase collaboraterd w/ Germany during WWII and
nothing happened to them. And I mean during WWII. They kept their branches open in Paris during the German occupation and followed all the German rules and did business with Germany openly. Morgan tried to overthrow FDR. There is a reason Morgan Chase was allowed to do a hostile takeover of Bear Stearns with tax payer money. It is because the Bush family and the Morgan family are both corporate fascists from way back who have decided that the American people exist to be fleeced by them.
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closeupready Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 01:06 PM
Response to Original message
25. If there is one thing he is correct about, it is that CEO's will continue doing this over and over.
Not all, certainly, but many unethical ones will. It's a profitable racket. No consequences for bad results. Sometimes, you even get rewarded for bad results. You just get rewarded MORE for good results, oftentimes even when those good results happen as a result of something OTHER than what you did. So yes, these schemes will continue. Congress is merely an enabling den of thieves.
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libodem Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 01:17 PM
Response to Original message
26. ENRON- in
TOTAL financial meltdown-out. Maybe someone like Martha Stewart can do 5 months in Federal Womens' Correction Facility and every one will be pacified. (please don't tell me I need a sarcasm tag)
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EVDebs Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 01:18 PM
Response to Original message
27. Nationalize the banks now.
The Village Voice article What Cooked The World's Economy ? It wasn't your overdue mortgage
http://www.villagevoice.com/2009-01-28/news/what-cooked ... /

shows us the world's derivative debt is around $600 trillion. The OCC's Quarterly Report, mentioned in Stephen Pizzo's article Failed Banks Want More Porridge
http://www.smirkingchimp.com/thread/20032

OCC US Treasury page 22 Table 1 mentioned in the article
http://www.occ.treas.gov/ftp/release/2008-152a.pdf

shows us that US banks are on the hook for around $176 trillion of that $600 trillion.

In order to get out from under this speculative debt bomb the bankrupt banks must first be nationalized. Until Obama's people get this through their skulls, the economy will continue to sink and we'll be on the bailout merry-go-round 'till the bitter end.

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pjt7 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-22-09 03:51 PM
Response to Reply #27
31. This is the sharpest, most honest financial
post I have seen on her.

Can't wait to transfer my checking account from BA to a credit union.

Thanks for putting this up & I hope more D's get educated & active on putting away the exact crooks you mentioned.
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rambler_american Donating Member (565 posts) Send PM | Profile | Ignore Sun Feb-22-09 04:03 PM
Response to Original message
32. K& effing R
:kick:
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