Lou Dobbs reported last night that the FBI is currently investigating fraud on Wall Street that has caused taxpayers trillions of dollars as a result of a letter sent to the FBI by Congress last Friday. The report said “In fiscal year 2003, the FBI had 436 pending mortgage fraud cases. Today there are more than triple that number, more than 1,400 cases. The FBI is also looking into Fannie Mae, Freddie Mac, AIG and Lehman Brothers. At a recent hearing FBI Director Mueller said the bureau will investigate corporate excesses as it did during the savings and loan crisis. ”

Lou Dobbs further reported that Congressman MARK KIRK sent a letter on Friday October 10th, 2008 to the Robert Mueller of the FBI requesting that the FBI investigate the Stock Market Fraud and the FBI responded saying doesn’t have enough resources to investigate the fraud.   The Illinois Republic representative said the “FBI has only 260 agents, I think, is inadequate given the opportunities that criminals have had in the last couple of months. With the enormous drop in the market, it’s clearly a signal that a number of things were concealed from small investors and pension funds.”

I find it odd that it was sent Friday and its just now making News today.  In any case we need to send a strong message to Congress that that kind of attitude will not be tolerated. Claiming that the FBI doesn’t have the resources to investigate this is unnacceptable.

CNN Reported that among the areas of being investigated for the Stock Market Crash of 2008 are “accounting fraud, failure to report, and potential market manipulation. With the stock market down 18 percent in one week alone people want answers.”

CNN reported the FBI responded to the congressional letter saying it would hire more agents if it had more money from Congress saying, quote, “our field offices have been working fraud cases diligently over the last years. We can always use more resources for our programs”, end quote, so clearly putting the ball back in Congress’ court.

I have been spreading the word about the Wall Street Gate scandal since I put the pieces of the puzzle together. I have made several blog posts including  Wall Street Gate Scandal. I have made comments on other people’s blogs as well as posted videos on allover the internet including yahoo, metacafe, myspace, youtube.

I have also contacted CNN, MSNBC, News Busters, and Market Watch urging them to push the issue to go after the crooks who have been running this scandal. I am glad to see that calls for this investigation of the Wall Street Gate Scandal is now being paid attention to.

Wall Street Gate is an insurance fraud scam that Wall Street Insiders have been running and has derailed our financial system.  Wall Street insiders put our nations financial institutions at risk selling over $60 trillion in insurance, also known as credit efault swaps, that protects against credit rating cuts. They then worked with hedge fund managers to manipulate the market and crash the prices of stocks so they could collect insurance claims on the credit default swaps.

The fraud is still happening now. Investigators have not yet put together the puzzle and are still unaware of the full details of this insurance fraud scam.

Wall Street Gate Scandal Investigation Petition

SIGN THE PETITION TODAY. DEMAND CONGRESS TAKES THE NECESSARY ACTION SI THESE ATROCITIES ARE FULLY INVESTIGATED AND PROSECUTED.
http://www.petitiononline.com/WSGSINVG/petition.html

Permalink - Wall Street Gate: FBI Investigating Fraud that caused of 2008 Stock Market Crash

But no one in the main stream media has pointed out the real reason for the financial crisis and the economic meltdown, which is a group of wall street insiders are running an insurance fraud scam. I have done my own investigating on the subject and I here’s what I have learned.

Every time the fed injects cash into a bank, or does a take over, the money is going directly toward paying off illegal insurances policies (Credit default swaps).

People have been complaining along time about insider trading in credit default swaps and hedge funds manipulating markets by shorting stocks.

Look at our current stock market crash. Its been caused by and insurance fraud scheme ran by wall street insiders (wall street execs+Hedge fund managers).

Wall Street Gate Started with Stock Gate and evolved into the following mortgage insurance fraud scam.

1)They take insurance policies to protect a rating cut and or bankruptcy (AKA Credit default swap ). see this shocking 60 minutes special on credit default swaps

2) Greedy CEO’s involved in scheme take on $60 trillion in insurance policies they can’t pay to make their banks risky. They knew exactly what risk they where taking and did it on purpose so it would make it easier to make the stock prices tank.

3) Hedge funds short the stock.. driving down the stock price until the banks credit ratings get cut.

Everyone in the scam makes billions 1) on the short selling [basically a bet that the stock will go down] and 2) collecting the on the insurance policy/credit default swap.

They continue tanking a stock by betting against it even more forcing it into bankruptcy the whole time collecting trillions in insurance claims on these Credit Default Swaps and that’s what caused the stock market crash of October 2008. They paid off crooked politicians who allowed them to illegally run their scam and they are stilling running it now.   Lehman’s AIG, Merrill, Wachovia, WaMu all victims of this scam. It has caused the stock market crash.

Now, Politics are irrelevant here in regard to it was the democrats or the republicans fault.

1) The democrats did put through the change in the credit reinvestment act which is part of the republican propaganda being used to blame democrats. However, the decline in home values and defaults on mortgages is not what caused this mess. Wall Street Executives purposely put their banks at risk so they could tank the stock and collect on the insurance policies when it tanked.

2) Democrats used the commodity future modernization act to blame it on the republicans. That was a republican bill that repealed Great Depression Regulations and allowed Wall Street to sell credit default swaps. That republican bill did cause the Enron scandal and contributed to the mess we are in but again its not the republicans that where at fault. They simply opened the markets so Wall Street could make their own securities. It is the group of wall street insiders that are involved in this scam that are at fault. In Fact JP Morgan illegally started selling Credit Default Swaps in 1997 before it was the Commodity Future Modernization Act was introduced by republicans and passed.

You have to keep an open mind and remember that you don’t always get the full story from the main stream media. They only tell you what they think will make a good news story.

Read more on my blog and watch my video on the subject:
http://blog.alexanderhiggins.com/2008/10/what-caused-the-stock-market-crash-credit-default-swap-scandal-revealed.html

Permalink - Wall Street Gate Scandal Caused the Stock Market Crash of 2008

What Caused the Stock Market Crash? Credit Default Swap Scandal Revealed

The current financial meltdown on Wall Street is not the unfortunate side effect of collapsing home values and a few mortgages going into default. It’s the exact opposite in fact. The collapse in home values as well as the crash of the economy is the result of an insurance fraud scheme being ran by a group of Wall Street insiders and the corrupt politicians that they have in their pockets. They are that are getting rich by destroying our economy in what I call the Credit Default Swap Scandal.

History leading up to the credit default swap scandal
Origin of the Credit Default Swap Scandal
How the mortgage insurance fraud scheme that crashed our stock markets work
Quick Summary of the Credit Default Swap Scandal

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History leading up to the credit default swap scandal

In 1999 the Federal government put through regulation that forced banks to make mortgages available to low income and minority borrowers, who by historical lending standards were too risky to get a mortgage. This legislation was called the Community Reinvestment Act and was a piece of democratic legislation. By itself the legislation didn’t cause our current financial crisis. However, Wall Street would end up using these high risk mortgages to create time bomb that would eventually destroy our economy. Why? Because when the time bomb explodes it’s going to make Wall Street Trillions of dollars.

In 2000, congress passed another piece of legislation called the Commodity Future Modernization Act. This act allowed the exchange of certain securities on Wall Street without the need for government oversight. The bill was introduced by Republicans and it repealed regulations that where set up during the Great Depression to stop Wall Street from ever putting the American Economy in the same situation again. It was packed as a piece of pork into rushed spending bill and was passed without out ever being reviewed by congress.

Within a year of its passage, the bill was responsible for the Enron scandal. Since the Enron Bankruptcy, democrats attempted several times to have the bill repealed but where blocked each time by the republicans. That brings us to 2008 when democrats introduced another bill to repeal the legislation in response to public outcry that commodity speculation was the cause for our nation’s high oil prices. However, when the bill got to George Bush he vetoed it. Finally, in the summer of 2008 democrats overrode the Bush veto but by that time it was already too late. Within 7 years of its passage crooked politicians and crooks on Wall Street managed to make a time bomb that would destroy our economy and make them rich when it exploded.

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Origin of the Credit Default Swap Scandal
In order to avoid having to keep the cash on hand needed to pay the insurance claims, in case the underlying mortgages defaulted, Wall Street kept their insurance policies off of the governments radar by giving their insurance policies a fancy name called a “Credit Default Swaps“. They hired mathematicians and physicists to create elaborate algorithms to price these insurance swaps. They then hid their transactions by buy burying the insurance policies in contracts that where literally hundreds of pages long. In a voluntary survey of who owns of these insurance swaps, it is reported that there are $60 trillion dollars worth of credit default swap policies outstanding worldwide.

Now let’s make this story even more interesting. These insurance swaps are not just for mortgage backed securities. They can also be purchased to insure the companies selling mortgage backed securities and they can also be purchased to insure against a change in a company’s credit rating. That means that you can by an insurance swap on Bank of America that would require the insurer to have to pay you an insurance claim if Bank of America’s credit rating gets cut. Even more shocking is that you don’t even have to own a Mortgage backed security in the first place to buy an insurance swap on a company.

Even though these Wall Street firms know they couldn’t possibly pay the insurance claims they continued to sell trillions of dollars, over $60 trillion to be exact. The whole time this was happening the corrupt politicians involved in this scandal look the other way. Politicians that weren’t involved in the scandal were put on Wall Street’s bankroll effectively paying them to look away or even worse to fight any legislation that would stop their illegal practices. The cover up went even further as Wall Street cooked their books and hid these investments from stock and bond holders because they know they are putting their companies at risk. But the greedy executives didn’t care.

We add our final ingredient to the disaster recipe, the richest and brightest financial minds. We mix the batter, put our ingredients in the oven, bake 45 minutes and out the ultimate economic time bomb. Let me put the pieces of the puzzle together for you.

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How the mortgage insurance fraud scheme that crashed our stock markets works

First a Wall Street Crook in this scam buys some insurance swaps for pennies on the dollar, against lets use Lehman brothers as an example. Let’s say for $500 million dollars he buys a $2 billion dollar insurance policy against Lehman’s credit rating changing. The Wall Street crook then goes and shorts Lehman’s stocks, again for pennies on the dollar. Over the course of a 3 month period the he buys $100 million of shorts against Lehman’s representing a $1 billion short position. The huge amount of shorts drives Lehman’s stock price down causing Lehman’s credit rating to be cut. The crook makes $1 Billion as the stock drops on his short position and the credit rating change of Lehman entitles the crook to another $2 billion for his insurance policy.

With all of the money just made the crook repeats the process driving the stock price down and down until eventually poor Lehman goes bankrupt. The crook really makes a killing on insurance swap he has against Lehman’s bankruptcy. But that’s OK there’s still more banks, who’s next? Washington Mutual looks pretty weak, let’s go after them.

In reality however, it’s not a single crook doing this. It is a combination of corrupt politicians, government bureaucrats, greedy Wall Street executives and Top Wall Street Brass as well as Hedge Fund managers. They have all been working together to orchestrate this collapse. Wall Street CEOs purposely put their companies at risk so they would fail. Government officials turned their heads and let them do it. Then the hedge fund managers come in and do the dirty work and make the insurance policies default. In essence, what we have here is an Insurance fraud scheme that is making these corrupt individuals trillions of dollars.

Working together they have put the entire world economy into a tailspin and result is crashing markets around the world. But don’t be fooled there are still a lot of greedy people grinning on Wall Street. As the stock market crashes, more of these insurance policies go into default and more money goes into the pockets of these greedy firms.

But there are $60 trillion dollars of credit default swaps outstanding and you might say it’s possible for these companies to pay all of these insurance claims. Well, don’t kid yourself. These Wall Street insiders are not worried. They already have crooked politicians on their bankroll and will simply throw money at the politicians that they don’t. All of that political power is the Federal Government stepping in and offering up taxpayer’s money to pay these insurance claims. Furthermore, we see the FED urging nations around the world to step in with their taxpayer’s money.

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The Credit Default Swap Scandal Summarized

This group of Wall Street insiders went and purposely sold $60 trillion dollars of these insurance policies to make our nation’s financial institutions become very risky so they could drive their stock prices down. Then the hedge fund managers in the scam went and placed bets against the financial institutions these insiders run. They placed so many bets that it drove the stock price down. As the stock price went down credit rating agents were forced to review the financial institutions and cut their credit rating. When the credit rating was cut these crooks collected on the insurance policies that the insiders took out to protect against the credit rating change on these companies.

So what we have here is an elaborate scam that is being run by a group of hedge fund managers and top level executives. They put our financial institutions at risk selling trillions of dollars in insurance policies they couldn’t cover. Then they make billions of dollars by betting against the stock price and driving the stock price down. When the stock price goes down they collect on the insurance policies that protect against the credit rating being changed.

And every time out government steps and bails out a bank, these crooks collect insurance money because they hold insurance policies against the bank being restructured or going into bankruptcy.

So the next time you here about a government taking over a bank, giving a bank a loan or injecting money into a bank keep in mind that taxpayers money is being used to pay phony insurance claims that are part of the largest insurance fraud scheme in history.

References and other info about Credit Default Swaps

Mainstream media won’t tell us what credit default swaps really are they say they are to complex to understand.  The truth is the only thing we can’t understand is why government allowed wall street to sell them.

• Truth about Credit default swaps revealed on 60 minutes. Watch the Video Wall Street’s Shadow Market
• Credit Default Swaps explained on WikiPedia
• Wall Street Journal Reveals Credit Default Swap Scandal involving Insider trading in 2006.
• How Credit Default Swaps became a time bomb - NewsWeek
• Credit Default Swaps on Lehman Brothers failure total $400 billion in insurance payouts.

Permalink - What Caused 08 Stock Market Crash? Credit Default Swap Scandal Revealed.

As the European Stock Markets opened today a back order of billions of sell orders swamped the European Markets and it took almost a half hour before the smoke cleared.  Within 30 minutes of the stock markets opening every single stock market in Europe had entered crash territory, losing over 10% of their value in what looks to be shaping up to be the worse day in the 2008 Stock Market Crash.  Within the first half hour of trading several markets had suspended trading in several index stocks.

The scene was so unnerving that even market analysis covering the crash were left in a state of confusion.  There was sense of uncertain nervousness being telegraphed from reporters covering the equities market crash.  It was clear they were in shock at what they were seeing.  As the stock charts of European indexes became available across the wire reality sank in as every single was diving straight down.

The crash came on the tail of the unwinding of the Lehman Brothers Credit Default Swaps, Japan’s fall of almost 10% yesterday and the largest point loss in the history of the Dow Jones ever, which was down 7.3% yesterday. The S&P crashed over 7.6% yesterday. Both indexes are experiencing their largest 7 day declines ever. Their is huge downward pressure on the Dow Jones futures ahead of today’s stock market open.  It appears that we are currently looking at what may become known as Black Friday 2008, where the Dow Crashes over 20%.

Over the last seven sessions, the Dow has lost 2,271 points, or 20.1%.  Since hitting an all-time high of 14,164.53 one year ago today, the Dow has lost 39.4%.  This is clearly one of the worst Octobers on record.

One year ago today, the S&P 500 hit an all-time high of 1565.15. As of Thursday’s close, it was down 41.9%.

After hitting a six-year high of 2,859.12 last Halloween, the NASDAQ Stock Index had slipped 42.5% yesterday to close at 1645.12.  The NASDAQ has lost has lost 67.5% its record of 5,048.62 hit on March 10, 2000.

The massive panic is also tied into a lack of confidence that this weekends meeting of the G7 finance ministers will have any productive results. The Investor fear index hit an all time high yesterday as credit markets remain frozen and their is a growing consensus that the entire world faces a deep recession and it will take at least 3-5 years before the markets begin to turn around from the current financial crisis.

Several analysts have also pointed out that many of the world’s Central Banks are running out of ammunition to fight the financial meltdown and are entering a state of fear and panic.  The equities markets have ignored yesterday’s concerted rate cuts by 6 European Central banks and the US Fed, as well as several bailouts from nations around the world that have gone as far as guaranteeing bank debts and promising to inject capital directly into their banks.

Yesterday Iceland announced that it has seized control of all three of it’s central banks amid the credit crisis, as the country faces a deficit that is currently 50 times greater than its GDP and may become on of the worse affected by the financial meltdown.

Surprisingly, it is not the Financial Sector that led today’s global market crash, but sectors such as consumer goods, utilities and energy which are all being battered by fears of the deep and prolonged Global recession that lies ahead.  In all of Europe there was only one stock trading in the green, which was Volkswagen.

We are seeing a huge flight to security as investors scramble to get their funds out of equity markets  before the weekend comes. It seems that no one wants to risk leaving their money in the markets over the weekend to find out Monday it has been lost due to a bankruptcy filing or a Government takeover.

Analysts are also starting to share a pessimistic attitude about economists statements that we are not heading for a depression.  Other analysts have also raised concerns that yesterday’s coordinated interest rate cuts raise inflationary flags that will hinder the markets ability to recover from October’s crash in a timely fashion.

A huge failure is expected in the global auto industry. Government take overs of banks and insurance companies continued overseas yesterday.  Stocks continue to tumble, even as yesterday brough news of a planned “Equities Stablization Fund” announced by major investment firms including Morgan Stanley, Goldman Sachs and Citigroup.

Update, 10/10/2008, 9:30 am

Us Markets opened with astonishing losses across the board with investor pointing fingers at Skepticism about government intervention in the financial markets and heavy selling of financial and insurance stocks.

Within  the first half hour of trading the Dow Jones Industrial Average (INDU) dropped 7.3%, the S&P 500 gave back 7.6%, and the NASDAQ tumbled 5.5%. The Dow Jones Crashed below 8,000 for the first time in 5 years, plummeting all the way down to 7,882.51at its worse point so far in the day.

The cost of borrowing among banks as measured by three-month Libor was still rising. The three-month rate climbed 7 basis points to 4.82%, according to Bloomberg.com.

Permalink - Stock Markets Crash Around the World - Black Friday October 10th, 2008

Any angry voter a little of the $180 billion in “pork” spending tied to the Wall Street Bailout bill back to congress.

A bomb squad cleared the building as they inspected the suspicious mail package and found the substance that was sent to Congressman Boehner as bacon. Literally, an angry voter sent bacon to congress.

Seriously, I don’t blame him. This bailout bill was so important that it needed to be passed. Millions of Americans rejoiced when the House defeated the first bailout bill only to be let down to find out the bill was only defeated because the crooked politicians weren’t getting any kickbacks of their own.

Once the bill was packed with $180 billion in kickbacks for pet projects, or “Pork spending”, the bill passed with by a huge majority in both the house and the senate. The voter sending pork is just returning the favor for the $18,000 tax bill that Americans will now have to pay during the upcoming recession. The pork laden bill will do very little to stem the financial meltdown, but its too late now.

This is just the latest of bailout protests that have crashed congress servers and now causes some of the returned pork to be mistaken as a bomb. Watch the CNN Report about the Pork sent to Congress which caused the bomb squad to be called.

Permalink - Pork sent to Congress, Bomb Squad investiages bacon sent to Boehner.

Watch my personal reaction:

John McCain announces $300 billion plan to buy mortgages during 2nd Presidential Debate with Barack Obama.

During the much anticipated 2nd presidential debate with Barack Obama, John McCain announced his plan to purchase $300 billion in “Bad Mortgages” using funds from the recently passed $700 billion bailout plan.

Political analysts have recently pointed out that the McCain Campaign is doomed to failure unless the campaign comes up with a “Game Changer during this debate. John McCain pulled back and fired his game changer, and even tried packing his Hail Mary with extra impact by giving select right winged media an overview of his bombshell plan just prior to the debate.

Perhaps giving the media his plan prior to the debate was the equivalent of John McCain shooting himself in the foot. The media researched McCain’s proposal and iht.com reports that Barack Obama made the same proposal in a September 24th news conference

John McCain’s hoped by making the announcement, the American Voter would view him as a hero. The has been substantial voter opposition to the Wall Street Bailout Bill because most American’s feel the bill would not work. Hundreds of the nation’s leading economists as well as two-thirds of congress felt that the bill would not work as well.

So what’s the real deal here? John McCain’s announcement during the debate sheds light on why he suspended his campaign. John Planned to go to Washington and lobby his colleagues to pass the unpopular bailout bill.  McCain’s reasoning was that once the unpopular bill passed he could easily present himself as a hero to the American Voter. He made the announcement at the 2008 2nd Presidential debate to use the funds of the bailout bill to purchase bad mortgages. The fact that he released his plan to the media just prior to the debate shows his sad attempt to make the argument to the American voter he is saving them from greedy Wall Street executives and corrupt Washington Politicians.  Fortunately, for the American People, fact checkers have already discredited McCain’s attempt to take credit for such an idea.

John McCain and Sarah Palin, the American People have a message for you. Joe Six Pack is not as dumb as you think he is. We can see right through your evil little schemes. This crap may have worked 10 years ago, but like your Barack Obama says, your just out of touch. Minutes after your statement millions of people, like my self, hit the internet to get the facts, and well here they are.

The facts about the McCain Plan to use bailout funds to buy bad mortgages:

• Barack Obama already made this suggestion in September 24th news conference
• Secretary of Treasury Paulson already made the same suggestion on Sept. 19th
• Democrats in congress requested the same measures be inked into the bailout bill during negotiations of the $700 billion bailout plan. John McCain spearheaded republican efforts to deny the democrats request for authority to use the funds to directly purchase “bad mortgages” directly from mortgage holders.

Other Lies and Promises of the McCain Campaign

• Nuclear Power is not an answer to our energy crisis. I live within miles of a nuclear power plant that the citizen’s will not allow to continue to operate once its thirty year contract expires. No one wants a nuclear power plant in their back yard. No one wants their neighborhood to be a Three Mile Island or another Chernobyl.
• Even if allowed, a nuclear power plant would take until 2040 to construct. We need an immediate solution, not a plan that kicks the can down the road and is likely to get reversed by future politicians.
• Drill, Baby, Drill. Another example of kicking the can down the road. The fastest that oil exploration could produce a single drop of oil is 10 years down the road. I say could because their is not guarantee that a single drop will be produced.
• The US only contains 3% of the world’s oil reserves. That means, if we tapped every once of oil in our country it would only amount to 3% of the worlds oil. We consume 25% of the world’s oil.
• !0 years down the road would mean the McCain would no longer be president. Instead of kicking the can down the road, like John McCain and so many other cronies, Barack Obama made a profound statement tonight. Equivocating his statement to JFK’s promise that we would put a man on the moon in 10 Years, Barack Obama promised, “Within 10 years, we will eliminate this countries dependence on foreign oil”. Now that’s what I want to hear. A real promise, a real plan, not another crooked politician kicking the can down the road.

John McCain, who’s eyes do you think you are pulling the wool over? Gosh Darn, Joe Six Pack’s eyes I suppose. But Joe Six Pack, yep that’s right, your average American alcoholic still knows how to use the internet.

In the debate, John McCain said “This isn’t George Bush’s plan. This isn’t Senator Obama’s plan. This is my plan”. John McCain, your a liar. The Bush administration suggested this plan, as did Barack Obama, as did the democratic congress.

You just out of touch. You manipulative lies and fear-mongering are quickly dispelled in this age of information, your techniques will not work. You are not a hero. You just tried using the financial crisis to manipulate the American voter but you have failed.

If you are going to present a “Game Changer”, make sure its real. Not some manipulative scheme your Rovian campaign has conjured up.

Permalink - 2nd Presidential Debate 2008- McCain: $300 billion plan to buy mortgages. Obama: Eliminate dependence on oil in 10 years

Dear Mrs Sarah Palin,

Hi. My name is Joe. Joe Six Pack. Yes that’s me, your average American Joe. John Doe, that’s me. John Doe Six Pack. Six Pack, by Six Pack, I guess you mean as in Alcoholic.

I am Joe Six Pack, or atleast I once was.  Most of my family is still Joe Six Pack.  Yep, gosh jolly, I guess my family consists of your average American alcoholic, complete with no high school edumakation.  Me well I’m a proud owner of a GED and where 6 years of being homeless on the street as a red bad of Courage. Yep, that’s me, Alexander Higgins, or as you would call me, Joe Six Pack, the voter that you are trying to appeal to.

Governor Sara Palin, do you mind if I call you Jane. Miss Jane may be more or approriate. Or, maybe, you would be more honored if I called you Miss Jane Middle America. Well gosh darn, I knew that’s what you a bin tryan ta tell me on dat dare tv screen.

Come on Mrs. Palin, who are you trying to kid? You ain;t no Ms Jane Middle America. Your Mrs Jane Rich Bitch. You live on an island in a lake in the middle of your town. Your not the average middle class American Citizen. Well, let me take that back.  By John McCain’s standard of $5 million in annual income defining someone as being rich, i jest reckon you just might qualify as bein middle class and all right?  But in reality America knows your not middle class and we find it insulting that you pretend to be.

Stop Pretending. Me, I am Joe Six pack. And I say, HOW DARE YOU? How dare you try to target me as a voter by saying “to all of the Joe Six Pack’s out there”, or to all of you “average American alcoholics and drug addicts”.

Seriously!! How much more condescending to the American people could you be? I couldn’t imagine Senator Biden saying “Joe Six Pack, vote for me”.

And you know what being the Joe Six Pack dat I am, i jez may be dumb and all but Joe Six Pack is not dumb enough to be decieved by you becuase my momma alwayz toll me dat life is a box of choclets.

See I am Joe Six Pack and well me seez right through you and your attempt to use fear to get voters to support you. See bein a Joe Six Pack an all, I spent 6 years bein homeless on the street an all. See,I grew up on welfare, I wuz raized on powdered milk and government cheeze.  An I’ll tell ya, you don’y appear an be no woman that’s ever had to eat no modly peanut butter from no USDA government can like I have.

I am sorry govna Pailin, but bein Joe Six Pack, I is not stupid enough to believe you when you say Barack Obama supports terrorists. Surely Its not my opinion, but there are those that call Mr. Ayers a patriot. Theyz tellz me that hez a hippie durin a a time dat da corrupt government wuz sending innocent Americans boyz over dem seez to be slaughtered by dem Vietnam folk. I recenz its kinda much like Bush and McCain sending our young boyz over dare to that place day callz Iraq to be slaughtered much like the cowz in doze fields, n da shame aboutz it alls its all for dat dare Oil war.

Yep, Gosh Darn. Say it ain’t so that Joe Six Pack knows!!!  Wink, wink!

Dat gosh darn gotcha media, wells dayz be a tellin me day diz Mrs. Polk, sheez jus a 90 Year old woman an all, jus gone an shot her self They say sheez bin a livin in that there home of hers for over 30 years, and well, this government company comes and tellz her there gonna go and take her home from her.

I suppoze she feelz jest as helpless as the Seniors I speak off in my video, eh?. Tell me govna? What is your answer to them. Governer Sarah Palin?  Do you have any more to offer than pretend to like “Joe Six Pack”. Honestly, if you cared about Joe Six Pack you wouldn’t be calling him Joe Six Pack.

Guessin you muss think I am naive and all, thinkin you can trick me into thinkin that Barack’s a terrorist.  Guess I may an well go ahead an tell all my friendz not voter fer him.

Mrs Governa Sarah Palin, weez Joe Six Packes, we would like to say, well, eh… NO MORE, NO MORE WILL CORRUPT POLITICIANS LIKE YOU USE FEAR TO CONTROL US. NO MORE WILL CORRUPT POLITICIANS CREATE FALSE CRISIS TO GAIN POWER OVER US JOE SIX PACKS. NO MORE WILL WE TOLERATE THE LIES AND FRAUD THAT ARE SHOVED DOWN OUR THROAT.  WE JOE SIX PACKS ARE TIRED OF LIVING A LIFE WERE EVERY POLITICIAN BETWEEN US AND THE WHITE HOUSE IS CORRUPT.

NO MORE!!!

Permalink - Governer Sarah Palin Meet Joe Six Pack

The Dow Jones Industrial Average (INDU) crashed below 10,000 points being down as almost 7% at some points during the day. The markets continue to crash as I write.

So far on the day the DOW hit a low of 9605.57 among investor fears of an imminent recession on the horizon and panic that the U.S Government’s $700 billion bailout will do very little to stem the financial meltdown on Wall Street.

Perhaps the greater fear is the growing consensus that bailout plan will not work at all. Despite protests from millions of voters and warnings from hundreds of leading economists that the bailout plan would not accomplish much besides making the crisis worse. Congress passed the flawed bailout bill on Friday and George Bush immediately signed the bill into into law, effectively sending a tax bill to American citizens that  which will <a href=”http://blog.alexanderhiggins.com/2008/09/fight-the-18k-per-household-wall-street-bailout.html”>cost over $18,000 per household</a>.

Today’s crash is the markets reaction to the passage of the bill. and is a reflection of a recent poll that 60% of Americans feel a depression is likely. The panic that is striking the markets right now began when President George Bush gave a live nation address on prime time television warning that “panic could strike the markets” if congress refused immediately pass the bailout bill.

Meanwhile, Stocks around the world tumbled today as European nations decided to take a much broader strategy to dealing with the financial crisis. The European community is opting not to follow the in footsteps of the US in passing a bailout package, that the markets clearly do not like. While the European nations debate their options they have indicated a lack confidence that the US bailout plan will work.

Today’s crash just a prelude to a larger crash ahead

The reason we are taught history in school is that it always repeats itself and we are encouraged to learn from our past mistakes. In a historical context, the current financial meltdown can be compared to only the Great Crash of ‘29 and the stock market crash of ‘87.

The Great Crash of 1929 was due to three main factors. First was the huge stock market boom from new technologies, such as the radio, automobiles, and aviation advances. The Second was Wall Street fell in love with using leveraged debt to make money. When the economy started to slow firms folded as their where required to de-leverage their debt by providing cash collateral. The third issue was that the federal government cut off access to credit which only inflamed the situation. New technologies such as the radio which help the markets grow over 300% in the few previous years became its undoing as radio help to exacerbate the fear in the financial markets.

The Crash of 1987 had shared the same factors as the Great Crash of 1929. Years of excessive optimism in the stock market were derailed with news of a slowing economy. Once again, Wall Street found its back up to the Wall with too much leveraged debt on their balance sheet and the markets collapsed as a result.

In both crashes, we saw high volatility in the markets leading up to the crashes. There were several days of trading where the Markets loss 4-5% as fear spread through the markets.

In both the stock market Crash of ‘29 and the Crash of ‘87 saw previous days of 4-5% losses. In each instance the prior stock market sell-offs culminated in a Stock Market Crash of over 20%.

In the Great Crash of 2008 that will soon follow, historians will look back and see that our current economy shares the same pre-requisites as the previous crashes. We have seen several previous years of economic prosperity due to excessive optimism in the stock market. We actually have two booms here, first we enjoyed the boom caused by the internet. That was then followed by the boom in the housing market. They will point out that once again again Wall Street is caught red handed holding way to much leverage debt.

We also see that both in both previous crashes the meltdown began in September and the Stock Market Crashes came in October.

Today’s crash, in a historical context, is merely one of the 4-5% down days that precede the stock market crash that will soon follow. One can only conclude that we will see a 20% sell off in the upcoming days or weeks that will be known as the “Great Crash of ‘08. A 20% crash in our market will put the DOW trading around 7000.

Permalink - Dow Crashes below 10,000. Another 20% Stock Market Crash looms ahead.

How To Loose a Trillion Dollars

A simplified version of what’s going on with the current financial market meltdown. Thunderf00t put this great video on YouTube. I find his videos informative and instructional. How To Loose a Trillion Dollars is no exception.

Permalink - How To Loose a Trillion Dollars

Protest at the Capitol Building on Thursday!
Not Another Rip-off! Put People’s Needs Over Wall Street Greed!

Yesterday we won. Every news report describes Congressional offices flooded with emails and phone calls opposing the bailout. But Bush has made it clear that he wants to ram legislation through Congress when it reconvenes Thursday at 12 Noon. We have to be there to tell them that we will not hand over $700 billion to the richest bankers. There should be a moratorium on all foreclosures and evictions. That’s the way to solve the housing crisis. Already, two million families have either been driven from their homes or are on the verge of foreclosure. Politicians didn’t hold emergency sessions to solve their crisis. Half a million workers filed first-time unemployment last week. Congress didn’t hold an emergency session for them. 47 million people can’t go to the doctor when they’re sick. The President and Congress have taken no special action for them.

Demonstration at the Capitol Building

Thursday, October 2, 10am
Independence and New Jersey Ave. SE
South Side of the Capitol
Washington, D.C.

Permalink - Bailout Bill Protest Scheduled at Capitol Building Today at 2PM.

OCTOBER 01, 2008 MSNBC Keith Olbermann kindly points out to us, that Senator John McCain tells the media in an interview “If I where a dictator, which I always aspired to be.”

In his interview, John McCain tells us that Sarah Palin’s experience in the PTA qualifies as a contributing factor to qualifying her for his Vice Presidential candidate choice.

John McCain’s Interview got a cool reception with the media, who called him testy, irritable and sarcastic.

Permalink - John McCain — If I where a dictator, which I always aspired to be

Today the U.S senate exploited a provision procedural provision to bypass the US constitution to pass the unfavorable Wall Street Bailout bill which will put US Taxpayers on the hook for over $1 trillion dollars.

Senate Passes Historic Wall Street Bailout Bill

After the US House of Representatives defeated the bill on Monday, the Senate vowed to take matters into their own hands and put the bill on for a vote on today.

The US senate ignored millions of emails sent to Congress protesting the bill, which in effect crashed Government servers.

Before the vote Senator Bernard Sanders pleaded with the US Senate not pass the bill.  Senator Sanders showed the Senate his petition on the bill which had amassed almost 50,000 signatures in the last few days, all signed by angry citizens outraged by the bill.  Senator Sanders also proposed an amendment that would make those who most benefited from the causing the Financial Crisis to Pay for the bail out.

Under Senator Sanders amendment, 99.7% of Americans wouldn’t have to pay a dime.  Instead, he proposed that bill raise taxes on the top .3% of Americans, those that own 90% of America’s wealth by 10%.  The tax increase for just the nations wealthiest would in effect pay for the bailout.

The Ranking Senator on the Senate Banking Committee also warned that the increase of the FDIC insurance deposit from $100,000 to $250,000 was not a good decision.  He told the senate that due to the recent bank failures, the FDIC was already almost out of money.  He warned that raising the deposit coverage put the government in the position where it can’t cover the deposits its insuring.  He spoke of his experience on the committee during the Saving and Loans crisis which was “much smaller than this problem” and said a similar flight from banks by citizens could cause the FDIC to Default.

Barack Obama also addressed the Senate. In his speech, he urged the Senate to support the bill saying that there are other better options that can be utilized, but none that would be available in the immediate future.  He also pointed his finger at criminalistic greed on Wall Street and in Congress for the failure.

Senator Obama said “There is plenty of blame to go around, on Wall Street and in Congress”

Earlier in the week Senator Brad Sherman told us that most of the $700 billion bailout package could be swallowed up by Banks from China and the Middle East.  He said under the bill, China and Middle Eastern banks could dump bad assets onto the back of American Tax Payers.  He said to combat that from happening it was proposed that the bill could be only used to purchase assets that where held by American Institution before Sept 20, 2008.

Paulson has made it clear he will recommend a veto of any bill that contained a clear provision that said if Americans did not own the asset on September 20th that it can’t be sold to the Treasury.

Hundreds of billions of dollars are going to bail out foreign investors and potentially nations like China, Argentina and other Anti-American countries. They know it, they demanded it and the bill has been carefully written to make sure that can happen.

Senators Voting “Nay” on Federal Intervention in the Financial Markets
Wednesday, Oct. 1, 2008
Sen. Wayne Allard (R-CO)
Sen. John Barrasso (R-WY)
Sen. Sam Brownback (R-KS)
Sen. Jim Bunning (R-KY)
Sen. Maria Cantwell (D-WA)
Sen. Thad Cochran (R-MS)
Sen. Mike Crapo (R-ID)
Sen. Jim DeMint (R-SC)
Sen. Elizabeth Dole (R-NC)
Sen. Byron Dorgan (D-ND)
Sen. Michael Enzi (R-WY)
Sen. Russ Feingold (D-WI)
Sen. James Inhofe (R-OK)
Sen. Tim Johnson (D-SD)
Sen. Mary Landrieu (D-LA)
Sen. Bill Nelson (D-FL)
Sen. Pat Roberts (R-KS)
Sen. Bernie Sanders (I-VT)
Sen. Jeff Sessions (R-AL)
Sen. Richard Shelby (R-AL)
Sen. Debbie Stabenow (D-MI)
Sen. Jon Tester (D-MT)
Sen. David Vitter (R-LA)
Sen. Roger Wicker (R-MS)
Sen. Ron Wyden (D-OR)
15 Republicans voted no; 10 Democrats voted no
40 Democrats voted aye; 34 Republicans vote aye

Permalink - Senate Votes On Wall Bailout Bill - Bill Passes 74 to 25

Hoosiers reports that America is in revolt. White House officials gave contradicting reasons for the crash of congresses servers. Federal officials said Government web sites where overwhelmed with a high amount of visitors downloading the bailout bill and a tidal wave of emails.

“This is unprecedented,” said Jeff Ventura, communications director for the House’s chief administrator.

This was a massive digital busy signal,” he said.

As more people gained access to the page and details of the bailout proposal were published in the news media, constituents then started to e-mail their representatives, Ventura explained.  Personally, I think it  wonderful to see Democracy in action and have millions of Americans unite and take a stand against this criminal bailout bill.

“We know it’s in the millions,” he said of the number of e-mails that lawmakers in the House have been receiving. “But we haven’t counted yet, because when you’re about to get hit by a tidal wave, you don’t count the drops of water in the wave.”

In an effort to curb email traffic a “digital traffic cop” was installed. If you ask me the “traffic cop” is a convenient way to stop voters from contacting their Senators as their are talks that Senate will vote on a revised version of the Governments $700 billion ransom note.

However, Ventura ventured that the problems on the House website might not be resolved until the economic package was finalized.

“We think we will see this spike [in Web traffic] until when and if another bill is hammered out,” Ventura said. “There’s going to be a lot of interest in this all week.”

From those comments, you can see that our Congressional Representatives will be ignoring our voice until they pass a bill.

I strongly urge you to Contact Congress by sending an email directly from our web site immediately. Don’t let them ignore us.

You can also use this form to lookup your Congressional Representatives contact information as well as view their voting record.

Permalink - Voters Emails Protesting Bailout Crashes Congress Servers

Two days ago, I wrote that Wall Street aimed its cross hairs at Sovereign to warn investor to get their money out while they can.

Today the Wall Street Journal reports that verdict as Moody’s rate cut has put Sovereign bank under the Guillotine.  Moody’s downgrades Sovereign’s credit rating for its junk and debt status to Baa2 just two notches above junk status and cut the long-term deposit rating on Sovereign Bank to Baa1, three notches above junk.

And kill Freddie Mac. And Fannie Mae. And AIG. And WaMu. And Wachovia. And Guess what? Their going to kill Sovereign next.

Moody’s also warned that further ratings cuts are just over the horizon citing that 25% stake holder Banco Santander SA decreased support for the bank can cost Sovereign further credit ratings downgrade.  Moody’s also stated that large Sovereign’s large holdings in Fannie Mae and Freddie mac are virtually worthless and while Sovereign’s deposits make up less than 1% of its assets they account for 14-16% of the banks tangible assets.

Sovereign’s downfall follows the recurring nightmare in financial markets meltdown.  A banks stock gets hammered to below the $10 dollar level due to fear of a ratings cut from either Moody’s or S&P.  The crash of the stock causes huge losses in the banks market capital which in turn forces the Government backed credit rating agencies to cut the company’s credit rating. The bank then needs to provide more capital collateral against its debt and pay higher prices for credit. The higher cost for credit bashes the stock’s price down as the loss of capital to collateralize debt cause the banks credit to get slashed further.

So far we have seen AIG, Fannie Mae, Freddie Mac, Washington Mutual and Wachovia crush under the weight of the credits rating cuts.  Sovereign’s failure makes it the next victim of Wall Street’s anxiety.  Anxiety being caused maily by the Government’s fear propaganda and being used pressure congress into passing a bailout plan that voters oppose almost 300 to 1.

How Long will it be before Sovereign goes belly up?

Its hard to tell while  the House of Representatives, the Senate, and the Bush Administration continue to put on a three ring circus in front of the entire world.  The problem on wall street isn’t a money issue, it’s a trust issue. Citizen’s have lost trust in the Government, Banks have lost trust in each other, and the rest of the world doesn’t trust America.  We can thank George Bush for that.

If the senate passes the bailout bill later today, Sovereign just may make it through the day.  But I wouldn’t bet on it.  I lost $300 betting on WaMu only to watch Cramer to call me an idiot later that night.  I was betting on news of the bailout to help me gain a few quick dollars to buy that engagement ring I have been trying to save for. When the house defeated the bailout bill I was happy, even though I had lost money.

Even if the senate passes the bill today, that still doesn’t mean it will ever make it through the House.  There is a revolt in congress against this bill and that means that Sovereign is not safe.  We saw Ireland bail out its banks simply by saying it would guarantee the deposits and debts of its banks.  But the US Government is about to do any such thing because it doesn’t benefit the politicians on Capitol Hill in any way.

The House republicans have proposed a similar bailout, but those in charge of the government’s latest power grab have balked at the suggestion.  Why?  Well our friend Micheal Moore assures as their is a coup among the rich.

Sovereign’s failure is the result of the Goverment holding the economy hostage in exchnage for a $700 billion+ ransom.   Unfortunately, Sovereign will be the next hostage to be killed because taxpayers are refusing to pay the ransom.

Permalink - Moody’s rating cut dooms Sovereign to fail.

Fight the Wall Street Bailout. I strongly urge you to Contact Congress immediately by sending an email directly from our web site.

This bailout is nothing but bad news. There is no real crisis, the market sell of is a result of fear mongering by President Bush.

Here’s how the bailout will screw you!

The bill allows for foreign banks to dump all of their bad assets into American banks, who can in turn sell the debt to the treasury.

THE AMERICAN PEOPLE SHOULD NOT BE PUT ON THE HOOK FOR WALL STREET, AND ESPECIALLY NOT FOR COMMUNIST NATIONS LIKE CHINA! The bill will make the US taxpayer responsible for every bad loan in every bank around the world.

IMPORTANT: YOUR ACTION IS NEEDED. SEND THIS TO EVERYONE YOU KNOW.

Congress will meet again tomorrow to vote on a revised version of the bill.

ITS STILL THE SAME BILL.

It allows foreign banks from Nation Like China and England to transfer an unlimited amount of bad debt to be transferred to our tax bill.

THE GOVERNMENT SCARES THE HELL OUT OF US THREATENING MAIN STREET WITH THE NEXT GREAT DEPRESSION. But this bill will help COMMUNISTS in SHANGHAI . Not patriotic Americans.

Please contact your congress men. Call them, fax them, email and tell them no way before its too late. Election day is soon, let them know there will be consequences for voting for this criminal bill.

Visit blog.alexanderhiggins.com to learn how to help

THE FACTS:

FACT: UNDER THE PROPOSED BILL FOREIGN BANKS CAN DUMP UNLIMITED AMOUNTS OF BAD DEBTS INTO THEIR BRANCHES AND SUBSIDIARIES IN AMERICA. THEY CAN THEN SELL THOSE BAD DEBTS TO THE US TREASURY AND PUT THE AMERICAN TAX PAYER ON THE HOOK FOR THEIR BAD DEBT;

FACT: LESS THAN A THIRD OF CONGRESS BELIEVES THE BAILOUT BILL WILL WORK. OVER 50% OF CONGREES THINKS THAT THE BILL WILL ONLY MAKE THE PROBLEMS WORSE.

FACT: HUNDREDS OF THE NATIONS LEADING ECONOMIST THINK THIS BILL ABSOLUTELY STINKS

FACT: HOUSE PRICES ROSE OVER 100% SINCE 2000. HOUSE PRICES ARE ONLY DOWN 15% SINCE THE MARKET HAS TURNED. MOST ECONOMISTS PREDICT ONLY ANOTHER 10% DOWNWING BEFORE THE PRICES BOTTOM. THE WORSE OUTLOOKS CALL FOR 35% BEFORE WE DROP. THAT MEANS, WORSE CASE SCENARIO HOUSE PRICES WILL STILL BE UP OVER 50% SINCE 2000.

FACT: WHILE HOUSE PRICES ARE DOWN ONLY 15%, FINANCIAL STOCKS ARE DOWN 60-70%. THIS ISN’T A REAL CRISIS. THE FINANCIAL MARKET HAS BEEN ABUSED BY GOVERNMENT CORRUPTION AND FEAR MONGERING HOLDING. BUSH IS HOLDING THE ECONOMY RANSOM.

FACT: EVEN AFTER CONGRESS KILLED THE BAILOUT BILL, THE STOCK MARKETS SOARED TODAY. TODAY’S GAINS WHERE THE HIGHEST GAINS IN YEARS.

FACT: THE NATIONS LEADING ECONOMISTS SAY THIS BILL WONT WORK AND WILL ONLEY MAKE THE CRISIS WORSE.

FACT: IRELAND PASSED A BAILOUT BILL WHICH INSURED BAD DEBTS ANT ITS STOCK MARKET TOOK OFF. NO NEED TO MAKE THEIR TAXPAYERS PURCHASE BILLIONS IN BAD ASSETS

FACT: PRIVATE DEBT IS $35 TRILLION. HOUSING DEBT IS 10 TRILLION. 700 BILLION DOLLARS WONT EVENT PUT A DENT IN THAT DEBT.

FACT: 30% OF AMERCIANS OWN THEIR HOMES OUTRIGHT. ANOTHER 30% PURCHASED THEIR HOME BEFORE 2000 AND AREN’T AFFECTED BY PREDATORY MORTAGES. OF THE REMAINING MORTGAGES ONLY 15% ARE HIGH RISK REPRESENTING 300 BILLION IN BAD MORTGAGES.

FACT: THE BAILOUT BILL IS NOT JUST FOR THE PURCHASE OF SECURITIES RELATED TO BAD SECURITIES. THE BILL WILL ALLOW THE FED TO BUT ANY BAD SECURITIES THEY WANT.

FACT: UNDER THE BILL, THE FED WILL BE OVERSEEN ONLY BY A CRITIQUE BOARD, WHICH WILL HAVE REAL POWER OVER THE FED. EACH MEMBER OF THE CRITIQUE BOARD WILL BE PAID A MILLION DOLLARS A DAY.

FACT: THE FED DOESN’T HAVE THE RESOURCES TO OVERSEE THE BILL. A PART TIME TEMPORARY EMPLOYEE WILL BE PAID LEVEL 4 EXECUTIVE PAY.

FACT: THE BILL CREATES AT LEAST TWO NEW HUGE PERMANENT BRANCHES OF THE FEDERAL GOVERNMENT, WHOSE COSTS WILL PAID FOR DIRECTLY FROM THE POCKETS OF TAXPAYERS

FACT: THE ADMINISTRATIVE COST OF OVER SEEING THE BILLS FUNDS ARE IN NO WAY CAPPED IN THIS BILL.

FACT: THE BILL HAS NO CAPS ON EXECUTIVE PAY.

FACT: THERE ARE NO PROTECTIONS FOR THE TAXPAYER IN THE BILL. THE CRITQUE BOARD CAN RECOMMEND THAT THE TREASURY DEVISE A PLAN TO RECOUP TAXPAYER MONIES. KEYWORDS RECOMMEND A PLAN

I strongly urge you to Contact Congress by sending an email directly from our web site immediately. Don’t let them ignore us.

You can also use this form to lookup your Congressional Representatives contact information as well as view their voting record.

Permalink - STOP THE BAILOUT!! ITS FOR FOREIGN BANKS LIKE CHINA NOT THE AMERICAN PEOPLE.

Overnight, early losses in International Markets where reversed later in the day as a sense of calm spread among investor causing them to seek out unprecedented bargains in the US Financial markets.

The reverse in the market psychology has today’s futures pointing toward a higher open.  The bottom line here is there a huge amount of money waiting on the sidelines.  As investors overcome their state of panic and begin to think rationally, where going to see a huge injection of capital back into our markets.

The main problem is the negative language coming from quarreling politicians on capitol hill. President Bush has released dire statements about the US economy in past weeks, while Congressional leaders have scared American’s stiff making false statements that paychecks will soon stop clearing.

Planet Money points out that losses on Wall Street have been fueled by undue fear, pointing out that in the crash of ‘87 the fear index was higher. Today’s investors have been spoiled by being able to trade with basically no fear in the market for an extended period of time. Fear indicators such as the TED spread have been stable for so many years that it has become “boring to watch” says Jeff Frankel, an economist at Harvard. “You know, for it to shoot up temporarily is OK,” he said.

Another recent study said that we have been long overdue for a correction such as we saw yesterday.  The fact that yesterday’s correction was so high is due in part to the fact the government intervention in the markets has been postponing the correction for years.

Permalink - 9-29-2008 Financial Markets Poised to Soar As Investor Fears Calm

Even before the bill was rejected, the stock markets slumped sending a clear signal to the US Congress that the Financial Markets did not have faith that the bill would not work.

Since the House rejected the bill 228-205 vote stocks continued to plummet on Wall Street, continuing the earlier downward trend started by the failure of Wachovia Bank
which lead to FDIC seizure and ultimate sale to Citigroup.

Yahoo reported that most congressmen from both Republican and Democratic Representatives did not vote for the bill due fears of voter backlash for the bill come election day.

In related news, Sovereign bank continues it path to failure with shares currently trading at $2.78, down over 67% from its opening price of $8.56

Permalink - Wall Street Bailout Bill Defeated By House of Representatives

The recent failure of Wachovia Bank has sent ripples through the world financial markets.

Following a rating downgrade, Sovereign Bank will soon be the next victim in line of the market meltdown. As of 12:39 EDT, Sovereign shares (SOV) have lost almost 55% of their value so far.

Shares of Soveriegn are be plumeting at the astronomical rate of 5-10% every 20 minutes.   The prospects that the Sovereign bank will make it to see the closing bell are grim. .

Will the FDIC step in and declare that Sovereign did not fail as well?

Moody’s Cuts Sovereign’s Credit rating to just two notches above junk status. Odds that Sovereign fails today are very high, even with the Senate expected to pass the bailout plan today. Moody’s warned that Sovereign will face downgrades in the near future, due to decreased support from 25% share holder … [ Read the rest of this upate ]

Permalink - Sovereign Bank Next to Fail in Wall Street Turmoil

The FDIC is now claiming that Wachovia did not fail.

If you believe that Wachovia didn’t fail then maybe you’ll believe that the earth is flat.

Wachovia’s share price fell from $10.00 on friday to $1.75 a share when the FDIC took them over. If the FDIC didn’t move before the markets opened on Wall Street, Wachovia would have gone belly up as soon as the opening bell was struck.

The Government claiming that the bank did not fail is an attempt to manipulate market psychology. Wachovia did indeed fail on the heels of news that three major European banks failing.

The Government is blatantly lying in an attempt to quell market panic. The fact is the $700 billion bailout bill that is going to cost over $18,000 dollars per US household is going to work. The failure of Wachovia is simply the markets sending a signal to the government that bailout isn’t going to work.

The goal of the Wall Street Bailout bill is to restore investor’s confidence in the US financial Markets.  If the government continues to lie and spread misinformation to the world wide investment community, investor confidence will never be restored.

But the Government isn’t going to listen. It will ignore the markets just like its ignoring the 80% of voters that oppose this Wall Street bailout bill. Until the government acknowledges this bill isn’t going to work, more banks in America and around the world will continue to fail.

The FDIC says that Wachovia didn’t fail but its just more lies and one more reason to oppose the Wall Street Bailout Bill.

Permalink - FDIC - “Wachovia didn’t fail” - More lies

Wachovia Bank share fell over 90% from it’s $10.00 close on Friday to $1.75 in pre-market trading today and was on pace to go belly up as soon as the markets opened this morning. The FDIC stepped in and took over Wachovia and sold most of its banking assets to Citigroup.

New of the FDIC bailout came on the heals of plummeting markets around the world combined with news that 3 Major European Banks failed today, including the nationalization of insurance and banking giant Fortis by the European Central Bank and England’s bailout of mortgage giant Bradford & Bingley (B&B)

Permalink - Wachovia Fails - FDIC Takeover Sells Wachovia Assets to Citigroup