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Posts Tagged ‘SEC’

Financial Market Worry Continues

Posted by Reed on Wednesday, September 24, 2008

Around the world financial markets are worried USA financial system is overextended. AIG bailout was a good move. Now international investment banks are doubting the accuracy of accounting and reporting of financial conditions by any USA based financial institution.

European Union, England, USA, and some Far East central banks are each injecting a total of 180(?) billion dollars to try to mitigate financial markets worries. It is apparent, due to this injection, international liquidity trap and credit crunch crises are simultaneously occurring. This is confirmed by announcement that reason for injection of huge amounts of cash into financial systems around world: To convince banks to lend money! Unfortunately for USA, both for credit crunch and liquidity crisis this is pushing a rope. FTC, SEC, FBI nor Justice Department have not warned of any of these difficulties in any business in any financial sector. This debacle has been ongoing for over a year and no clear explanatory information has been offered.

Silence here is an indicator of a deep, broad problem of serious nature and and an unwillingness to do anything to correct it. Situations like this are an opportunity to consolidate wealth into a smaller number of people. Only most wealthy will have opportunity to buy all or large portion of these bankrupt companies. Oh, how this fits the Bush persona!

Freddie and Fannie regulator gave each a clean bill of health two weeks before taking them over! This is prima facie information that public is being told falsehoods and vital information is being kept from general public. In eight years the regulators under Bush administration control did not figure out managers of Freddie and Fannie were lying about financial condition of our GSE. Are we to believe regulators are stupid and foolish, or just lazy? Or are they emasculated by President Bush’s executive orders and bullying?

Executive leadership of our Federal government (President Bush) is completely responsible for managerial action of our government. Bush directly controls FTC and Justice Department and FBI and he can certainly apply political leverage to motivate SEC to investigate. Instead he does nothing and expects taxpayer to bailout the businesses. In the end what Bush wants is for a few businesses and their managers to make big bucks and taxpayers to pay for it for next 30 years.

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