Market Melt

I don’t know what to make of this, other then bad news. The U.S. Treasury is holding secret tests and their results on the nations leading banks.

Some of the tests have already been performed. But they are unwilling to reveal the results yet for fear of a “market melt”.

Here is the article: US to delay bank test results for earnings-source

What the article is saying is an eye-opener if you really read it.

The U.S. Treasury Department is planning to delay the release of any completed bank stress test results until after the first-quarter earnings season to avoid complicating stock market reaction

The government is testing how the largest banks would fare under more adverse economic conditions than are expected in an attempt to assess the firms’ capital needs.

The tests are designed to determine the depth of banks’ capital holes if conditions deteriorate further.

This is more secret shenanigans by our government (and the Federal Reserve, most definitely a non-government institution), who has been unwilling to let the people of this nation actually know what the hell is going on and where all this money is vaporizing to.

I see this as just more manipulation and smoke and mirrors bullshit. They don’t want you to know how things really are and they don’t like their test results either and they’re afraid you might actually find out that your money is absolutely worthless.

Rather then “inspiring confidence” (a euphanism to sucker more people into playing this shell game), this may very well backfire, because we certainly do not trust our government to tell us the truth. We’ve been lied and manipulated into this position of equity loss for years and years, and now these rotten bastards are going to help us?

Get your near-worthless money OUT of these failing institutions and into something you actually need. This is not a pitch to sell you anything, just start taking care of yourself and realize that your government is once again, telling you it’s going to “deteriorate further” and they don’t want you to know just how bad it’s going to get.

Update: The West’s Fatal Overdose

The summit participants took the easy way out. Their decision to pump a further $5 trillion (‚¬3.72 trillion) into the collapsing world economy within the foreseeable future, could indeed prove to be a historical turning point — but a turning point downwards. In combating this crisis, the international community is in fact laying the foundation for the next crisis, which will be larger. It would probably have been more honest if the summit participants had written “debt, unemployment, inflation” on the wall.

admin

admin at survivalacres dot com

11 thoughts on “Market Melt

  • April 8, 2009 at 9:48 am
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    uh huh – as Joe Bageant spoke so well,

    “Anyway, when the media and government people in power [make any determination], they [are] managing your consciousness. What you know and don’t know. Keeping you calmer by withholding the truth. Rather like not upsetting little children so they will continue to quietly behave the way you want.” … Americans are conditioned to reject any affective attachment that does not have a happy ending. And in that, we remain mostly a nation of children. We never get to grow up.”

    [Now, be good little zombie-child slaves and eat all the shit I feed you and Daddy will buy you a Lollipop.]

    ~ from text of recent speech(es), at http://www.joebageant.com/joe/2009/04/escape-from-the-zombie-food-court.html#more
    hint hint

  • April 8, 2009 at 9:26 pm
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    Fascinating. As has been pointed out by countless experts, what is going on is a massive transfer of wealth from the taxpayer to the major bettors in the casino economy of the last decade. And what has also been pointed out, by Admin and others, is that this “remedy” will result in massive inflation. The U.S. is only able to do this because China is still buying our bonds. Should it ever tire of supporting us, we will find our currency worthless. The other theat is whether the dollar remains the world currency. If the U.S. were to lose this advantage, it would not be able to maintain its massive borrowing.

    The alternative being bandied about has nothing to do with buying toxic debt. Instead, what it requires is for the banks to be taken over, their assets written down, their management fired, and the bond and shareholders of the banks losing their ass.

    But of course this will never happen. Why? Too much of this debt is owed by foreigners. If state economies see a huge drop in their national wealth (think China), there will be retaliation. The U.S. would likely be the biggest loser under such a sencario.

    So what’s you poison? Global depression from a fake economy? Or global depression from a real economy?

    The fact is, the government is betting that all the stimulation will stabilize the economy. But as admin and others have pointed out – you cannot fight debt with more debt. Eventually the gravy train is going to end.

    Better to take our medicine now. High unemployment, a third world economy, and tent cities all over the place. In the not too distant future, there will be little or no difference between the U.S. and Brazil, where over half of its population lives in cardboard slums.

    More mass slayings on the way. Enjoy!

  • April 8, 2009 at 10:38 pm
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    Admin,
    I have been following this for some time and you are right, it’s “nothing but smoke and mirrors bullshit,” it is a sham. Like you, I wonder when will the bullshit ever end.
  • April 9, 2009 at 12:16 am
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    More on this subject.

    The whole point of this charade exercise was to show the big banks weren’t terminal but still needed dough, and I am sure it will prove to be lots of dough before we are done. But they now have the Good Housekeeping seal, so the chump taxpayer can breathe easy that the authorities are taking prudent measures to make sure his money is being shepherded wisely.
    From the beginning the stress tests were a complete sham. Just look at the numbers. 200 examiners for 19 banks? When Citi nearly went under in the early 1990s, it took 160 examiners to go over its US commercial real estate portfolio (and even then the bodies were deployed against dodgy deals in Texas and the Southwest). This is a garbage in, garbage out exercise. The banks used their own risk models to make the assessment, for instance, the very same risk models that caused this mess. And there was no examination of the underlying loan files.

  • April 9, 2009 at 10:17 am
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    Of the eco-twins, Ecology and Economy, it seems that everyone (in/of the industrialized western religion of self) is directly, personally and collectively agitated, fearful, irate and “irrationally exuberant” exclusively with regard to the later. Meanwhile it is the former that will finish-off (destroy) humanity – if not all life – on the sky-god(s)’s asylum of personal greed planet. Of these twins, a fattened fiat-fraud fed ego-inflated monster of mayhem is ‘the last thing we FKN need’. What we need is to get a GDMF clue. Yeah right! Like that’s ever going to FKN happen.

    Yep, as Madge said so clearly four decades ago, “Relax. You’re soaking in it” – as we’re each fully immersed it total self shit as the flush proceeds unimpeded. No drain stoppage here. Move along. Nothing to see. Peak La La La is never, as in Neverneverland.

    Now, revenge may be a dish best served cold but wanton denial is a dish that is always served up at 98.6F. Any what is this ‘dish’ that is being wantonly denied, you might inquire. Oh, nothing much, just the the entirety of the life support systems on this spaceship planet we claim to be ours to ‘righteously’ consume. So, consume ourselves we do, and any and every ‘thing’ else too. Does anyone happen to know – or even give a FKN shit – what the inevitable product of connedsumption is? I didn’t think so.

    May your heavenly sky-god FKN help you, ’cause no one else is going to. And personally, ‘Charlatans’, “I don’t give a [FKN] damn.”
    And, the worms rejoice as the molds gather to dance on your grave and fungi fiddle with your corpus delicti. So, so long selfish simians. Bye bye bipeds. But always remember and never forget, sky-god luvs you (albeit only you and ‘he knows why). Which in and of itself is proof of both ‘his’ and your ego’s insanity.
    So, Have a nice die-off.

  • April 9, 2009 at 10:36 am
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    Or, put another way ‘Economy’ is all about “me, me, me”, “mine, mine, mine”, “want, want, want” and “more for me, more for me, more for me.” – thereby less, less less for every one/thing else else else).
    Whereas ‘Ecology’ is about all of “us, us, us” and ‘us’ is all/every form of life, life life on this Earth. Rant, rant rant.
  • April 9, 2009 at 11:17 am
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    Light at the End of the Tunnel? Wrong! The Decade of Darkness
    “… the velocity of present downturn is worse than the Great Depression. Manufacturing, industrial production, foreign trade, capital flows, consumer confidence, housing, and even stocks are falling faster today than after the crash of 1929. So far, Bernanke’s monetary bandaids have prevented the wholesale collapse of the financial system, but that could change. The economy continues its downhill slide and it looks like there’s nothing to stop it from falling further still.”
  • April 9, 2009 at 1:50 pm
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    Decade? my-and your- weeping ass!

    Econome-me-me is a FKN story, ‘his-story’, ‘y/our’-story, a connedvenient mythic self-eradicating fairy tale, sans happy ever after. Albeit, I admit, a pervasive and highly addictive personal story.

    Those who can start to ‘see’ (allegedly) catastrophic economic doom and gloom (and sundry other ‘bad newz’ trends) as in actually (in fact) a very ‘good thing’ are simultaneously, effectively developing the necessary skill-sets that shall prove to be most personally beneficial as the pending mass culling of (in)humanity gathers momentum. Get used to (accept) (sh)it now and the any future you may have won’t suck quite so much.

    Perpetual growth (ntm ‘life’) is an overt wanton fantasy as well as categorical impossibility. The perpetuating of militant ignorance is the perpetrating of pernicious evil.

    Man ‘invented’ the concepts of good as well as of evil. Meanwhile, back in reality (in the interim), he has perfected (perpetrated) only the later. Get real (or not). Die anyway.

    Adapt to pending (hard) reality or perish in (from) overt (simple) fantasy. Your choice.

    So sayeth the Grin Reaper.

  • April 10, 2009 at 8:04 am
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    This writer also has fears about ‘what we don’t know WILL hurt us’: The “Disaster Stage” of U.S. Financialization:
    “All of these critiques have merit, and ideally they might converge as earlier indictments of elite and governmental abuse did during the Progressive and New Deal eras. But I have to return to whether the public will ever be given full information on the fatal magnitude of financialization, who was responsible, and how it failed and crashed in 2007-2009. So far, political and media discussion has been so minimal that the early 21st century American electorate has much less readily available information on what took place than did the electorates of those earlier reform eras.”
  • April 10, 2009 at 2:47 pm
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    Remember, the government, the banks, the corporations, the media, and the elites are one entity. To say that the government does this and the banks do that and GM does another thing is to like saying private so and so does this and private so and so does that and these are not related to the Army in which they serve. The divide and conquer strategy works and works well. Because humans tend to fixate on the one element that is directly in front of them, they fail to see the connections and will flog their particular ego crutch ad nauseam when a coordinated effort to unmask the elites behind the curtain is the only way to short circuit these planet killers. I am not one to bring down the wrath of Echalon on anyone’s head but one semi-sacred document, the Declaration of Independence, says it all: “That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.”

    We, the people, are the ones who must do as the founders ask and set right the ship of state.

  • April 10, 2009 at 2:59 pm
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    We won’t be able to “set right the ship of state”, as it’s listing too far

    Best to let ‘er fall where she may.

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