Financial Meltdown: The Greatest Transfer of Wealth in History

[speech]

"Admit it, mes amis, the rugged individualism and cutthroat capitalism that made America the land of unlimited opportunity has been shrink-wrapped by half a dozen short sellers in Greenwich, Conn., and FedExed to Washington, D.C., to be spoon-fed back to life by Fed Chairman Ben Bernanke and Treasury Secretary Hank Paulson. We’re now no different from any of those Western European semi-socialist welfare states that we love to deride."– Bill Saporito, "How We Became the United States of France," Time (September 21, 2008)

On October 15, the Presidential candidates had their last debate before the election. They talked of the baleful state of the economy and the stock market; but omitted from the discussion was what actually caused the credit freeze, and whether the banks should be nationalized as Treasury Secretary Hank Paulson is now proceeding to do. The omission was probably excusable, since the financial landscape has been changing so fast that it is hard to keep up. A year ago, the Dow Jones Industrial Average broke through 14,000 to make a new all-time high. Anyone predicting then that a year later the Dow would drop nearly by half and the Treasury would move to nationalize the banks would have been regarded with amused disbelief. But that is where we are today
http://gold-report.blogspot.com/2008/10/financial-meltdown-greatest-transfer-of.html

 

[AdamLTucker]

A South African colleague of mine foretasted the collapse back in 2002 right before we temporarily boosted our economy with more wars...

From: Gary S. Gevisser
Sent: Tuesday, July 23, 2002 6:10 PM PT
To: Bill O Reilly - Fox News
Cc: rest
Subject: Epilogue to Manager Minute One

The collapse of the stock market here in the United States is all but certain. It makes no sense that a publicly traded company should be valued more than a private business which generally sells for between 3 and 5 times predictable earnings plus liquidation value, i.e. "less godwill blah blah" [sic]. And remember management of private companies are much more accountable assuming they have the checks in place for their "audirtors not writely balanced" [sic].

Publicly traded companies with their diverse shareholder ownership allow management much more flexibility to mix things up, taking with the right and hooking the owners with their left, lefties to boot. Right now the smart money has left or is in the process of leaving the markets in search of "safer heavens" [sic], safe harbor provisions a thing of the past.

President Bush should do the smart thing and immediately suspend trading of public corporations, thereby protectING the innocent and naive who are simply throwing good money after bad. Those well run public companies should have no fear for they will be at a competitive advantage relative to the capital that has been so smartly socked away.

The scars of 1907 remain on the masonry buildings housing the stock exchange of Wall Street. The fundamentals of the economy at that time were much worse than in 1929. One man J.P. Morgan saved the day, not so lucky for the victims of 1929. History has a way of repeating itself but today the "risk markets" are more fragile than at any time in history.

"Risk assessment" is my business.

Gary S. Gevisser

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