Is the Bailout Bill Enough?
Wednesday October 8, 2008
NYSE (Credit: Spencer Platt/Getty Images
- Global Rate Cuts - For the first time ever, the world's central banks coordinated a rate cut, hoping to put downward pressure on the LIBOR and lower the cost of bank borrowing. Overnight bank lending rates dropped in response, indicating a potential turning point in the crisis.
- Fed Loans to Businesses - The Fed agreed to directly issue short-term loans for businesses to pay for day-to-day activities such as payrolls and rent. This keeps businesses from folding, but doesn't address the source of the crisis.
- Create Credit Default Swap Clearinghouse - The Fed is creating a clearinghouse to regulate the $45 trillion credit default swap (CDS) market. The clearinghouse should address one cause of the crisis, but won't be in place until December.
- Suspend Mark-to-Market Accounting - Suspension of the mark to market accounting rule would allow banks to retain some value in assets, giving them more funds to loan. The SEC will complete a study by January 2009 - too late to help the current crisis.
- Treasury Buys Preferred Shares of Banks - Preferred shares gives the government a way to transfer cash to banks without owning the toxic debt. However, this is what Japan did and it kept the banks unable to remove the debt, leading to 10 years of near-recession.
- McCain's Proposal - 2008 Republican Presidential Candidate John McCain has proposed having the government buy $300 billion in mortgages from defaulting homeowners.. This would evenutally reduce the toxic mortgages on banks' balance sheets, but not address the immediate credit crisis, which is caused by banks fear of lending to each other.
- Do Nothing - Many have suggested to just let the markets run their course. This is most likely to create a global depression, as businesses around the world shut down due to lack of credit.
Comments
Global-financial crisis: The next battleground in The War on Terror?
Here is an unsettling thought regarding the global financial turmoil that has suddenly befallen the entire world. When it comes to global banking and finance, international commerce and communication have resulted in enormous amounts of confidential data on individuals, banks, corporations, and even entire governments such as the United States, all stored in supposedly secure “cyber warehouses”, warehouses that either are, or could soon be vulnerable to Quantum computer attack, because our banks and financial institutions rely on conventional encryption systems that could be hacked open, not in computer attacks lasting millions or even billions of years, which traditional computers would require, but rather weeks, or maybe even days, by quantum computers.
This sounds far-fetched, but something similar to this has already happened once. During the Second World War, advances in encryption science and computer technology allowed the Allies to crack open supposedly secure military codes used by the Japanese and Germans. The same thing may be happening right now, only this time, United States and Western European financial institutions are being laid bare.
Quantum computers are based on theoretical models involving multiple universes. Such a concept is mind-boggling to the average person, but so was the Atomic bomb, prior to 1945. The fact is, some of the best minds in science subscribe to this theory, and simplified versions of quantum computers are in development stages, right now. And when it comes to theoretical implications of quantum computer science, don’t make the mistake of assuming well-funded international criminal organizations such as Muslim narco-terrorists and their confederates-in-crime, the Red Mafia, are incapable of developing more sophisticated applications.
The Red Mafia controls much of the commerce within the territory held by the former Soviet Union. They have vast numbers of scientists, engineers, and financial experts in their upper echelons. On the other side of the equation, narco-terrorists such as Al Qaeda have access to enormous wealth created by a range of activities extending from drug dealing and human trafficking, to legitimate sources of income derived from Arab oil. Their leaders are highly intelligent and they’ve learned to adapt. The FBI says Al Qaeda has been casing international financial institutions such as the New York Stock Exchange, since 2003. Now that it is more difficult to hijack airplanes or blow up important buildings, they are looking for soft targets: soft targets that can cause even more chaos and suffering. I believe narco-terrorists may be using their financial assets and international crime connections to leverage and manipulate volatile segments of our financial markets.
Narco-terrorist Muslims are not the “weak sister” in this criminal alliance, either. One should remember Arabic numerals and the mathematical concept of zero were Muslim innovations. These advances took place decades ahead of anything Christian Europe was capable of doing. To translate this dismaying historical fact into the Twenty-first Century, I would point out that literally thousands and thousands of Muslims (including Arab,Turkic, Indian, Pakistani, and Indonesian scientists, engineers, and banking and financial experts) possess advance degrees in mathematics, electrical engineering, computer science, super conductors as well as banking and international finance. Vast numbers of these people were educated in the United States — at considerable expense to the American taxpayer. The current financial quagmire that has suddenly befallen the Western world could be due in part to the actions of Muslim militants… hidden among this mass of otherwise innocent Islamic scientists, engineers, and bankers, acting in concert with their mafia criminal allies to carry out Osama Bin Laden’s latest command (September – 08) to be ready to destroy the enemies of Islam. In this instance, the attacks may have included cyber messages of terrorism and plunder, directed at American and Western European financial institutions.
Because of this, I believe at least some of the world-wide financial collapse we have witnessed, could be tied to factors much worse than greed, recklessness, and stupidity on the part of international investment bankers, compounded by inadequate oversight by the Bush administration, as well several other western governments. Advances in cryptography, encryption, and computer science may have allowed terrorist-criminal organizations to crack open our secret financial systems. If this is the case, any and everything central banks and international financial markets try to do in the coming weeks, could be doomed to failure. If that happens, the very future of our civilization could depend on finding these global-financial terrorists and destroying them.
For further information on the origins and beliefs of Islamic narco-terrorism, visit my website: http://www.TheMoslemInstitute.com
Regards, Dane Dahl
The economy is in turmoil and all Americans see is the wealthy getting the bailout. I see a way of fixing it and it is very easy, and will not just help a few people but everyone in the United States. We have set aside $700,000,000,000 for the bailout correct. Set aside approximately $330,000,000.00 of the $700,000,000,000.00 which would leave $699,670,000.000.00 left to feed the buzzards of Freddie, Fannie, AIG and so on. Take the $330,000,000.00 and send it to every man and woman legally in the United States and have not committed a felony, right at a million dollars a person even the children. Make the parents the executor of the children’s money and make it mandatory that all be invested for their futures once eighteen they are then able to touch the money but only if they attend a higher education program, if not they have to wait till age 24 when they may have some kind of career going at that time. Takes care of federal or personal educational loans, covered. The adults have to pay taxes first on the million at the 32% rate, which would automatically send approx. $ 69,300,000.00 back to the federal Gov. Then they can use the money to pay off mortgages, which will help these failing banks, then pay off high interest rate credit card loans, then buy some kind of alternative fuel type car or at least a fuel efficient car. This would help with the environment and help with homeland security. Not only would it do those things but it would make sure all Americans would have money for medical insurance and should be made mandatory for the use of the money, this would help our failing hospitals from non payment of services rendered. The big thing would be the solution for Social Security for all ages. The amount of taxes paid on capital gains could go straight back into Social Security for the future generations. May God bless you and God bless our great nation the good ole USA.