So what will a world free of the big five investment banks look like?

Posted by Guessedworker on Wednesday, 17 September 2008 20:34.

Several times over the last few months I’ve considered putting together a post about one or other jaw-dropping new development in the banking crisis. But then I’ve realised how difficult answering any of the really big questions, as they will affect the lives of our people, really is. So I restricted myself to one post on the politics of sub-prime and one on the privatisation of profit and the socialisation of risk (a polite way of saying “theft”).

Now, with the sudden acceleration of events to completely undreamt of levels of destructiveness, I think it’s time to at least acknowledge the moment.

Prior to the collapse, there were five truly global investment banks cum securities trading and brokerage firms in Wall Street. Bear Stearns and then, in one momentous day, Lehman Brothers and Merrill Lynch were despatched. The remaining two seem to be taking on the appearance of dominos:-

“The fear is who is next,” said John O’Brien, senior vice president at MKM Partners LLC in Cleveland. “It almost feels like people scour the books and say who is the next likely target that we can put a short on. And that spreads continuous fear.”

Shares of Morgan Stanley and larger rival Goldman fell as much as 43 percent and 27 percent, respectively, even after both reported better-than-expected quarterly earnings on Tuesday.

“I’m assuming that Goldman Sachs and Morgan Stanley are lining up dancing partners. They don’t want to be ... this week’s victim,” said William Larkin, fixed income manager at Cabot Money Management in Salem, Massachusetts.

... “Seems like the SEC is a day late on the rule ... Morgan Stanley is clearly in the short-sellers’ sights,” said Andrew Brenner, senior vice president at MF Global in New York.

The following graph, linked from Reuters, shows where the minimum $900 billion sunk so far in propping up the system has gone. The Fed’s balance sheet is busted as a result, and it has been forced to go cap in hand to the Treasury for a $400 billion injection. The new bill program “will provide cash for use in the Federal Reserve initiatives,” the Treasury said.

Here is an arresting graph from the Space Cynics blog, showing the trend in home repos. Some of the paper debt associated with this is not going to default until March 2009, so there is plenty of time for other banks to fall victim to the vipers in their midst.

Here’s another Reuters link that tells us where the asset pain - meaning the erosion of the firms’ capital base - has been greatest. The trick, shorting-wise, is to go after the firms towards the top of the list who are leveraged that bit more. Merrill was the king of leverage, and knew it had to sell itself or be shorted to destruction.

Of course, the papers are full of fevered speculation about “who when?”, almost all of it by “experts” who saw none of this coming. It takes a real bear to claim the laurels for divination in this business - and, as it happens, Martin Hutchinson qualifies handsomely:-

Beyond determined a l’outrance resistance to the inevitable taxpayer bailouts that will be demanded as the investment banks collapse into rubble, it’s not immediately clear what our reaction to the Gotterdammerung of the US investment banks should be. On the one hand, the modest service-providers of the 1950s and 1960s, resembling London merchant banks but less aggressive and slightly smaller, have long gone and been replaced by these trading conglomerates whose economic purpose beyond self-enrichment is to say the least unclear. In terms of long term market benefit, the conglomerates will be little loss, probably being replaced by a combination of very conservatively run “too big to fail” institutions and aggressively entrepreneurial risk-taking boutiques, the natural destination for those numerate top graduates of more aggression than cognitive depth.

Nevertheless, the short term turmoil and devastation will be huge; you can’t hold fire-sales of $5 trillion of assets without prices collapsing. We are gradually coming to see more clearly the drivers of the currently impending downturn, likely to last the best part of a decade from its onset last summer; there’s no doubt that the collapse of Wall Street investment banking will be one such driver. What has also become clear is that the problem of excessive leverage is not confined to the investment banks, but operates over the US economy as a whole.

That is not surprising; investment bankers (the good ones) are among the most financially and economically sophisticated of mankind, so if they thought excessive leverage was advantageous, that belief was naturally transmitted to other less exalted and less wealthy beings:-

# There was the mortgage salesman who bought several rental properties, on the assumption that his income was assured and negative cash flow from the properties didn’t matter in an environment of rising real estate prices.

# There was the yuppie anxious to impress his friends and attract the opposite sex, who bought a flashy and mechanically=2 0unreliable a car on a long-term automobile loan.

# There was the two-income professional couple, who thought that by buying a McMansion the size of Chatsworth, their social status would turn into that of the Duke of Devonshire.

# There was the laid-off manufacturing worker, who thought it didn’t matter that he could find no job paying more than half his old union pay scale, because credit cards would allow his family to live the good life.

# There was the low-skill immigrant, legal or illegal, who found the wages he could earn were totally insufficient to fulfill his dreams of life in the bountiful United States, but thought that through liberal use of credit cards and maybe a subprime mortgage, affluence might be forthcoming.

# There was the corporate CEO, who understood that buying back stock in his unexciting company and financing the purchase by junk bonds would increase the value of his stock options, but failed to realize that it made long term corporate survival unlikely to impossible.

# Finally, there was the President of the United States, who thought he could pursue an expensive if unsuccessful foreign policy, allow his Congressional colleagues to be thoroughly sloppy on public spending and introduce new social programs that pleased his wife, all without raising taxes.

One has some sympathy with all of these hard cases, but it should be recognized that together they probably form close to a majority of the country, so the idea of imposing additional taxes on the thrifty minority (or on their children through excessive budget deficits) in order to bail them out is both morally abhorrent and fiscally impossible.

Once we recognize that attitudes to borrowing in the US economy have been pathological for the last decade or more, the true culprit for our coming troubles becomes clear. The Federal Reserve, by expanding the money supply at a 4% faster annual rate than output for the 13 years since 1995, has made borrowing both excessively cheap and excessively easy to obtain. Not surprising therefore that the US savings rate has dropped to less than zero. Fairly unsurprising also that the epidemic of loose money after 2000 spread to the globe as a whole, so that borrowers in Bangalore and Beijing are today as overleveraged and vulnerable as those in Boston.

This isn’t a failure of capitalism; the Fed isn’t a capitalist institution, and the United States hasn’t had a capitalist financial system since it abandoned the link to gold in 1933. It is instead a failure of government, which established the Fed without adequate instructions as to its proper policy. In a period when, because of the explosive increase in international communication capability, money supply could be increased excessively without producing an immediate inflationary backlash, the Fed under Alan Greenspan succumbed to the temptation of easy popularity and admiring editorials in both the New York Times and the Wall Street Journal. President George W. Bush, not a man to adhere to Republican “sound money” dogma if he could find a more populist alternative, chose the most dedicated inflationist he could find as Greenspan’s successor, and the result was history followed by disaster.

So what are the implications of all this for us, given our vested political interest in economic and social instability?

Possibly not too many. The storm is very vicious, but it is largely constrained within banking, retailing and real estate. As the economic weight of Wall Street and London within their respective economies declines, the long demise of the manufacturing base will start to hurt.

Economic growth in Britain has been created by New Labour largely out of the power of the financial sector, cheap and available credit and the over-supply of cheap immigrant labour. The financial sector is not going to return to its recent repulsive excesses very quickly (though human nature dictates that it will one day). Recession should cut the flow of immigrants, and do something to slow the dire demographics we’ve all heard about of late. If recession does prove deep, serious questions about the interests of the natives, which have been wholly forgotten during the good times, will prove easier to raise. The BNP will profit.

An America - or rather an American power elite - without Goldman Sachs will seem strange. The managerial nature of the elites is flexible, though. The twin drives towards American global hegemony and a non-democratic, Leviathanesque North American Union will proceed undisturbed. Martin Hutchinson’s “thrifty minority” will be taxed to pay for it somehow.

Tags: Economics & Finance

Comments:

Posted by The Monitor on Thu, 18 Sep 2008 01:48 | #

BURN, BABY, BURN!

Posted by jrackell on Thu, 18 Sep 2008 01:49 | #

I am not talking about “survivalism” here. The Kline farm represents much more than that. As I have said to David more than once, what he and other Amish are doing is preserving an understanding of how to live in reality for the time when all the virtual realities collapse.

Virtual realities lie at the heart of Brave New World, aka the New World Order, “globalism,” “democratic capitalism” (as the neo-cons define it), etc. The bargain Brave New World offers is this: if you will only do as Marcuse advises and trade the Reality Principle for the Pleasure Principle, we will enmesh you in virtual realities that will make you happy. True, you will lose your free will, because our virtual realities will condition you to think as we want you to. But they will also give you anything and everything you want. So what if none of it is real? All that matters is that you feel happy, right now.

As our medieval forefathers would quickly recognize, this is Hell speaking. Hell has always loathed reality, because in reality, Christ is king. Wiser than we, the medievals were interested not in felicitas but in beautitudine – not in being happy but in being saved. Had they been given a television or a video game, they would have smelled brimstone.

Not only do virtual realities lead to Hell, they have another drawback, one that a Fourth Generation world will soon bring to the fore: all of them, without exception, eventually collapse. The complex structures and vast resources required to sustain them are evanescent. The realities of the Fourth Generation are hard and sharp, and they will slice and dice virtual realities like, well – dare I say the Scimitar of Islam? Many Islamics, unlike most Christians, seem to recognize Brave New World for what it is.

William Lind, Surviving the Fall of the State

Recession seems rather a quaint description of what’s happening. The present crisis is the beginning of the end of the ‘virtual realities’ we’ve been living under. Those realities are collapsing, not least because the pleasure principle was afforded by this credit which is now all but dried up.

Posted by Jun on Thu, 18 Sep 2008 02:14 | #

If recession does prove deep, serious questions about the interests of the natives, which have been wholly forgotten during the good times, will prove easier to raise.

One silver-lining of a total economic breakdown (on the scale of another Great Depression, that is) that I can see is that political correctness will be straight out the window. It’ll just be too expensive.

Posted by The Monitor on Thu, 18 Sep 2008 04:25 | #

Political correctness will be straight out the window.

We wish. Rather, white gentiles will defamed as greedy philistines who are cruel to the poor, gays, unwed mothers, working women, migrants, and minorities. In times of crisis, our rulers will demand more managerial control to assuage their white guilt, protect their own own “genetic interests” <cough, cough> and appease protected groups.

Posted by James Bowery on Thu, 18 Sep 2008 05:28 | #

I still disagree with the other Bears like Martin Hutchinson who see deflation (“decreasing prices”) rather than hyperinflation in the cards.

There is nothing to tax but the private pension funds now and those are just starting to be tapped by the boomers. Congress won’t be able to levy a direct tax on those pensions as boomers are entering retirement.

Guess what the next option is?

Posted by GT on Thu, 18 Sep 2008 12:14 | #

our rulers will demand more managerial control to assuage their white guilt

There is no guilt or self-hate. There is only greed, but you covered that:

protect their own own “genetic interests” <cough, cough>

————————

One silver-lining of a total economic breakdown (on the scale of another Great Depression, that is)

There will be no Great Depression. Our rulers can’t afford one. Risk is socialized and there is 100 years of war to look forward to. Each and every one of us will have access to this luxury called the Internet for years to come.

Posted by Bill on Thu, 18 Sep 2008 12:15 | #

The Meeja are turning out the usual suspect talking heads by the bucket load, none of them saw it coming! What’s more they’ve been cheering to the rafters globalisation and its plethora of benefits to mankind. You have to laugh, these are the same people the media are looking to for solutions.

Paxman, (BBC’s Newsnight anchorman) has just woken up, (literally as always appears half asleep to me) he’s pooing his pants - hilarious. Just think, this chap is on over half a million a year.

The economists are missing the point, (everything will, over time correct itself) not so, me thinks, the underlying crunch is resources not credit. I cannot see global capitalism recovering from this. These meeja pundits are on mega bucks salaries - Jeeze”

I came to the Internet about 4 years ago (looking for answers) Kunstler’s Clusterfuck Nation was predicting what is now unfolding back then.

PS. Liked the post about virtual reality - spot on.

Posted by NWOology on Thu, 18 Sep 2008 12:18 | #

NWO conspiralogy:

Goldman’s in fine shape with core operations unscathed. Some have noted Goldman profited massively in the housing bubble run-up, and cleared out before the collapse.

The financial operations regarded as insiders (Citibank, JP Morgan Chase, Goldman, and AIG) remain intact.

JP Morgan picked up Bear Stearns at a bargain price, courtesy of the Fed. Bear Stearns was regarded as a maverick Wall Street firm, not one of the insiders.

AIG was burnt but received a Fed bailout. No surprise, as Maurice Greenberg is BIG (he owns 11%). Former chairman of the CFR receive perks, apparently. Also not a surprise considering Hank Paulson (former Goldman Sachs CEO, and Jewish of course) and Benjamin Shalom Bernanke make U.S. economic policy. Also bears remembering Bernanke as Fed Chairman works for the owners of Citibank, JP Morgan, etc.

Bank of America bought out Merrill, but who controls BoA? Some powerful Jewish family, IIRC.

These are Jews selling out to each other, it would appear.

In a somewhat surprising decision, Lehman Bros. was not bailed out by the Fed. Its operations include the merged assets of Kuhn Loeb (of NWO fame). Perhaps (1) its former owners the powerful Warburg family have sold out; (2) the Warburgs are no longer what they were in the NWO hierarchy in the early-to-mid twentieth century; (3) bigger fish such as the Rothschilds who allegedly control Barclays (which coveted Lehman assets before its collapse) arranged for a non-bailout.

Posted by Frank McGuckin on Thu, 18 Sep 2008 13:30 | #

WE need a good house cleaning. Long overdue. I hope the US econmy crashes and burns for a long time. It would be wonderfull if thousands of White Americans expereince severe economic destitution. Hopefully, the neocons will ignite a war with Iran. This will make things even worse. All of this will put White America in a mood to cleanse America of hispanics,asians muslims and ...that ...nasty other group. Worse is better. Let’s get it on!!!! A whole lot of White American have become soft,fat worshpers of multimillionaire young negro athletes who run around a sports field in tight spandex. I hope the real world crushes them,their wives and children.

Of course ,all of the above are high probability events. When American society collapses, I will be tempted to step on the necks of these homeless White Male jock sniffers who will be begging for my help. Then ,maybe they will get the message.

Posted by Dave Johns on Thu, 18 Sep 2008 14:28 | #

There will be no Great Depression. Our rulers can’t afford one.—GT

Of course GT is right about that. The “rulers” are simply transferring the economic wreckage caused by failed liberal policies onto the shoulders of the current and future taxpayers.

I just love sending my money to Washington DC so they can invest in failing companies for me!

Posted by James Bowery on Thu, 18 Sep 2008 15:23 | #

There will be no Great Depression. Our rulers can’t afford one. —GT

What do you think causes depressions, GT? How can our rulers counteract that cause in the current situation?

Our rulers are not omnipotent nor omniscient and their wisdom is similarly limited. They can and do make mistakes. Big mistakes.

Posted by NWOology on Thu, 18 Sep 2008 15:30 | #

Because an interventionist central bank can contain the damage (at taxpayer expense). And Paulson-Bernanke have. They’ve done right so far, and the turbulence, too, shall pass.

Posted by Fred Scrooby on Thu, 18 Sep 2008 15:31 | #

Check out this list of the main corporate funders of La Raza (which, by the way, was as “Mexican-created” as the NAACP was “Negro-created” …):

http://inverted-world.com/index.php/activism/activism/tell_corporations_to_stop_funding_the_national_council_of_la_raza/

What in the HELL are Fannie Mae and Freddie Mac doing on a list of major corporate funders of La Raza?

Posted by Fred Scrooby on Thu, 18 Sep 2008 15:33 | #

(Of course you could ask that question of ANY corporate funders of La Raza, but especially THESE!)

Posted by Frank McGuckin on Thu, 18 Sep 2008 15:59 | #

James

They have been very lucky. Fat tails rather than the thin tail of the normal distribution approximates reality with a higher degree of accuracy. White Americans need to start thinking in terms of mass expulsions. Maybe it will be done over a ten-twenty year period. Read the riot act to the asians.

Posted by Dave Johns on Thu, 18 Sep 2008 16:19 | #

“What in the HELL are Fannie Mae and Freddie Mac doing on a list of major corporate funders of La Raza?”

What the HELL was Henry Cisneros (former HUD Secretary under the Clinton Administration) doing sitting on the Board of Directors of Countrywide Bank? Yes, the same Countrywide Bank that was so instrumental in granting mortgages to every black, briwn, or other “persons of color” that couldn’t otherwise qualify for a conventional mortgage . It was the liberal policies of the mortgage lending institutions—encourage by the liberals in Congress— scuh as Chris Dodd and Barney Frank et al (and Bush too) to grant mortgages to financially unqualified minorities so as to advance their ultra-liberal agendas. The crisis was created in the primary lending institutions then was transferred to the secondary mortgage markets. The real blame lies within the mortgage institutions that granted mortgages to unqualified borrowers and the people in governmwnt that encouraged such policies. The crimr is called fraud and the perpetrators should be frog-marched right into prison!

Posted by NWOology on Thu, 18 Sep 2008 17:51 | #

What the HELL was Henry Cisneros (former HUD Secretary under the Clinton Administration) doing sitting on the Board of Directors of Countrywide Bank?

Maybe because the CEO, chairman of the board, and co-founder Angelo Mozilo is mestizo.

Posted by Red Mercury on Thu, 18 Sep 2008 18:33 | #

I can only smile. And I’m a White Nationalist working in the financial services sector; I run my own investment firm. I deal with hedge funds, HNWs, and property developers. This crisis represents decades of greed, corruption, and incompetence. It doesn’t take a rocket scientist to figure out how it happened. The signs were there for all to see. There were those of us who saw it coming and planned accordingly. For example, I recently made a vast allocation to gold. The metal’s rise yesterday made me very, very plea$ed indeed.

Almost two years ago I started trimming my real estate holdings in anticipation of a downturn. Today, I still own several local residential properties from which I enjoy a hefty (net) cash flow.

Unlike many local real estate professionals I know. It amuses me to watch these arrogant young fucks, many with Ivy League MBAs, come begging for money. Just a few years ago they were snapping up interest-only, no-doc loans in order to make a quick buck “flipping” properties. With their money they bought villas in Newport Beach, diamonds and face-lifts for their wives, Lamberghinis, private jets, etc. The money has now dried up and they are hurting. And all I can do is smile.

The Jews I do business with in south Florida are hurting too. They are property developers and have over-extended themselves in a massive way. These old Jews, with years of experience and business success behind them, are telling me they haven’t seen conditions like these in 40 years. They are hurting, big time. And I can only smile.

I personally know of 10-15 immigrants from Asia and the Middle East who are making plans to move back to their home countries. Good riddance, I say. We don’t need these filthy parasites.

These are good times for White Nationalists. As things deteriorate, I think people will become radicalised. With nothing much to lose, people will take more risks, in thought and deed. Worse is better. In chaos, there is opportunity.

Posted by James Bowery on Thu, 18 Sep 2008 19:20 | #

NWOology wrote: Goldman’s in fine shape with core operations unscathed. Some have noted Goldman profited massively in the housing bubble run-up, and cleared out before the collapse.

Attention, Soren.

Posted by The Monitor on Fri, 19 Sep 2008 03:18 | #

That’s right. This crash, while nasty, is far from rocking the foundations of the system. It is not enough to make people reconsider the virtues of their Global Democratic Capitalist masters. On the other hand, less capital expenditure means fewer jobs for migrants.

BURN, BABY, BURN!

Posted by James Bowery on Fri, 19 Sep 2008 03:47 | #

Soren writes: he hasn’t been with them since 2002

I wasn’t so much interested in the individual than I was in the culture that gave him the message that ‘the anti-Christ’ is a position for which you are to compete.

As for GT and Dave Johns:

So, what do the beltway guys do about it? From the CNBC:

‘CNBC reported this afternoon that Treasury Secretary Henry Paulson is shopping an idea around Capitol Hill whereby the feds would create a virtual landfill for the toxic assets now owned by financial institutions.’

‘Such a move would allow institutions to dump those assets of dubious value—mortgage-backed securities and the like—onto taxpayers. The institutions would clear their books which should allow them to start lending again and free up the credit markets.’

‘Anybody who didn’t like the Bear Stearns, Fannie Mae, Freddie Mac and AIG bailouts will really hate this one. Arguably, this would be the ultimate in creating moral hazard. And once again the argument could be made that it’s another example of profits being privatized while losses are socialized. ‘

Now, I want you guys to stand up and say that this is going to stabilize the system.

Posted by Al Ross on Fri, 19 Sep 2008 07:21 | #

The world wont be free of all of the big five investment banks - they will just have different ownership. Bear Stearns has been bought by JP Morgan Chase, Merrill Lynch bought by Bank of America, bits of Lehman scavenged by Barclays and Morgan Stanley is looking for a White Knight with Wachovia, based, like Bank of America, in Charlotte, NC appearing to be today’s punditry favourite. The financial balance of power seems to be partially tilting from NYC to Charlotte.

The most heavily Jewish investment bank, Goldman Sachs, may still go it alone, anticipating an Obama win and a Justice Department initiated attempt at Glass - Steagal separation redux.

Posted by NWOology on Fri, 19 Sep 2008 08:10 | #

CNBC reported this afternoon that Treasury Secretary Henry Paulson is shopping an idea around Capitol Hill whereby the feds would create a virtual landfill for the toxic assets now owned by financial institutions.

But Paulson’s plan would indeed stabilize the financial sector as if by magic—albeit at U.S. taxpayer expense. Remove from the balance sheets of a blue-chip company bad debt and once again it’s financially sound. Because Hank Paulson knows what he’s doing, this too, shall pass.

Posted by Al Ross on Fri, 19 Sep 2008 08:41 | #

During the Asian financial meltdown of 1997, self-righteous (and often Jewish) American officials and their lickspittle media poodles preached to the Thais, Koreans, Malaysians et al that, under no circumstances, should government bailouts be allowed to assist failing entities because of ‘moral hazard’. I suppose the fact that Jewish (or indeed American) financiers dont possess any morals likely to be at hazard gives rise to American exceptionalism vis-a-vis their own so-called rules.

Posted by The Monitor on Fri, 19 Sep 2008 08:52 | #

Al Ross

The most heavily Jewish investment bank, Goldman Sachs, may still go it alone, anticipating an Obama win and a Justice Department initiated attempt at Glass-Steagall separation redux.

I agree with you. That’s a strange feeling. The whole scheme that ended Glass-Steagall was that the Republicans wanted banking deregulation while the Democrats wanted cheap loans for its voting bloc. Put them together and you get the credit crunch. As Sam Francis would say, it was a deal that was both stupid and evil.

Posted by Bill on Fri, 19 Sep 2008 11:14 | #

The whole scheme that ended Glass-Steagall was that the Republicans wanted banking deregulation while the Democrats wanted cheap loans for its voting bloc.

The essence of the new consensual politics - The essence of the new Communism.

The Right, (Capitalism) is the engine room of the economy providing the goodies for the Left (consumer client base.)

Who do I vote for? (only joshing)

Posted by GT on Fri, 19 Sep 2008 12:03 | #

I want you guys to stand up and say that this is going to stabilize the system.

The system will be stabilized by hook or crook. Our rulers can’t afford not to. By the way, crashing asset and now commodities prices do not inaugurate hyper-inflation.

Posted by In-Like-Flynn on Fri, 19 Sep 2008 13:21 | #

Will they still care about stablizing the system when this is up and running?

http://www.ft.com/cms/s/0/ae725992-0f3c-11dd-9646-0000779fd2ac.html?nclick_check=1

“We have to develop our own model, [but] the
final goal is to build up the capital market and become
a financial centre.”

Posted by NWOology on Fri, 19 Sep 2008 16:54 | #

Crisis over.

Paulson’s coming intervention plan contains all that’s necessary to end the Subprime Financial Crisis of 2007-2008 in a fundamental, final way. The U.S. taxpayer will simply swallow massive losses, to whatever extent necessary to set things right in the financial sector.

Posted by Guessedworker on Fri, 19 Sep 2008 17:03 | #

Yes, the “bad bank” - the ultimate socialisation of risk - and no more shorting.

But that’s only a short-term solution for America. There is bank debt all over the world. Plus there is more bad paper to come home to Mama yet. Plus the threat of recession on top of that.

Posted by Red Mercury on Fri, 19 Sep 2008 17:33 | #

They are delaying the day of reckoning. This is just a temporary measure. Thanks to the bailouts and cash infusions, the dollar will plummet. It’s only a matter of time. Trillions of bad mortgage debt still exists. But the feds are unlikely to repay liabilities by borrowing or taxation, for obvious political reasons. Instead they will simply print more money, leading to hyper-inflation.

Posted by NWOology on Fri, 19 Sep 2008 17:52 | #

Prediction: Things have bottomed (at least in the U.S.) and the financial sector is to soon stabilize.

The only true long-term macroeconomic threat lies in the ever-increasing numbers of muds and predatory Jews.

Posted by cladrastis on Fri, 19 Sep 2008 19:14 | #

Can anyone who actually understands these government “bailouts” lucidly explain to me exactly what is going on? How is the Federal Reserve, via the Treasury Department, making these loan guarantees? Who is giving the Treasury Department these powers? Finally, if the Fedeal Reserve is an independent corporation, why are taxpayers being forced to “pay-up”?

Posted by ben tillman on Fri, 19 Sep 2008 21:15 | #

Interesting stuff here:

http://www.predatorix.com/

I will explain when I find my notes from my meeting with the father of the website’s proprietor.

Posted by GT on Sat, 20 Sep 2008 01:24 | #

GW,

But that’s only a short-term solution for America. There is bank debt all over the world. Plus there is more bad paper to come home to Mama yet. Plus the threat of recession on top of that.

A question and observation :

1. How long is short-term?

2. Joe Sixpack is going through another downward economic adjustment. There will be no sharp, sudden decline in “wealth.” The process is gradual; it has been going on for several generations. The “bad paper coming home to Mama” will be deferred until Europids no longer pose a threat and a safe haven for the jew manipulator and his sycophantic, easy money Europid friends is assured. Bank on it. Risk is socialized. Politically, this recession is meaningless to us. Forget revolution. Think secession.

Posted by GT on Sat, 20 Sep 2008 01:43 | #

These are good times for White Nationalists. As things deteriorate, I think people will become radicalised. With nothing much to lose, people will take more risks, in thought and deed. Worse is better. In chaos, there is opportunity.

If anybody wonders why the “leading lights” of White Nationalism have followed the same strategy for 50+ years, this post by Red Mercury provides a clue.

Posted by Captainchaos on Sat, 20 Sep 2008 02:19 | #

“Forget revolution. Think secession.” - GT

Secession itself is a revolutionary act. What external pressures will galvanize sufficient numbers of Whites to do so if not the continued third-worldization of America?

Posted by Fred Scrooby on Sat, 20 Sep 2008 02:27 | #

“Why is it that a small group of Jews can have such an impact on Western Society with their corrosive/degenerate social policies? Why are Euro intellectuals en masse embracing and promoting such vicious anti-Euro venom?” (—Dave Johns)

For a while I wondered why there was no white élite resistance. There was only the wacko fringe white resistance that nobody listened to, none of the mainstream variety that people would listen to. How come? How come the mainstream variety hadn’t materialized?

Then I realized the mainstream variety had materialized but thanks to the way it was cast by the mainstream media it was viewed generally as wacko fringe: “mainstream” and “wacko fringe” are determined by the mass media. The other side’s counterpart of Sam Francis, for example — whoever that might be; take your pick — would be and has been cultivated by the MSM as mainstream, while Sam Francis was demonized as wacko fringe.

Whether or not Sam Francis is mainstream is determined by the MSM. Whoever controls the MSM controls who is “mainstream” and who is “fringe” in the public’s eyes.

“Why are Euro intellectuals en masse embracing” what’s going on? Lots aren’t embracing it, but we’ve been conditioned to see the ones who aren’t as “fringe,” when there’s no more reason to view them that way than there is to view the ones the Jewish media cultivate as “mainstream.”

So whether or not “mainstream” resistance has arisen is to a large extent a matter, not of whether or not any has arisen, but of who controls the MSM.

Which is more wacko: 1) the Jew, or the homo, malcontent, misfit, or degnerate hyped by the Jewish media owners, who says whites throughout the Eurosphere are the cancer of history and should be racially replaced (this today is considered mainstream opinion) or 2) the man who says whites have done nothing wrong and certainly should not be genocided via the demographic weapon? Obviously the latter is less wacko, more reasonable. But the Jews control the media images, so the former gets presented by them as mainstream, the latter as fringe wacko, “fascist,” “racist,” “merchant of hate,” and so on.

So there has been white resistance. It’s been present right along. But the other side has got responsible, normal, perfectly reasonable white resistance pegged in everyone’s mind as fringe or worse.

It’s not that no resistence has arisen, it’s the ease and effectiveness with which that reasonable resistance gets tarred with the “fringe wacko” brush mainly by the MSM. White resisters have been writing top quality opinion and analysis all around us for upwards of sixty years. What’s Yockey considered now, fringe or mainstream? Fringe, of course. But in fact he was mainstream material that got successfully pigeonholed as fringe by the (fill in the blank) ______-controlled mass media. So there’s an answer to the question, “Why no élite white resistance?” There’s been élite white resistance but it gets cast as fringe, not respectable.

Posted by Fred Scrooby on Sat, 20 Sep 2008 02:37 | #

Sorry, my comment above was supposed to go in the “LQ and JQ” thread.

Posted by The Monitor on Sat, 20 Sep 2008 03:54 | #

What’s Yockey considered now, fringe or mainstream?

Yockey was almost completely unknown until he died. Willis Carto popularized him after his still-unexplained death.
So there has been white resistance.

Before WWII, you could say all sorts of things that today you would find on a site like this. Winston Churchill would rant against the Jews, even as he cozied up to Bernard Baruch, which I’ll never understand. If you read Yockey’s biography, it seems America once had an elite-but-secretive far right.

Posted by GT on Sat, 20 Sep 2008 16:53 | #

CC: Secession itself is a revolutionary act.

From the standpoint of breaking routine, you’re correct. Mowing the lawn is a revolutionary act for a couch potato.

Historically speaking, revolutionaries overthrow government. Secessionists acquire political legitimacy over territory and leave. The United States did not overthrow the British monarchy. It seceded from Britain’s empire.

Posted by James Bowery on Sat, 20 Sep 2008 19:11 | #

GT writes: Secessionists acquire political legitimacy over territory and leave.

Empty the cities.

Posted by Othelma_Jr on Sun, 21 Sep 2008 12:02 | #

Some of you guys think things have bottomed out already?? LOL! The SCO hasn’t even BEGUN to muddle in the financial affairs of ZOG!!

Right now Russia is the bad cop, attacking Georgia, giving stuff to Iran… whereas China has been playing good cop because of the need to look good during the Olympics… NOW ALL BETS ARE OFF and WNs need to be on the look-out for China to start calling in some of that debt they have…

Russia has 2 Tu160s in South America, a planned naval excersize in the Atlantic near South America… Just wait until Chinas new Blue Water Fleet starts patroling the US West Coast!!!

There is no way the US is going to be able to afford this jew empire and the chi-coms calling in some of their chips… the jews will be implementing FORTRESS AMERICAS soon, brining on the Police State as the economy crumbles and Whites pour out into the street looking for the Rich jews who they know brought the country down (it will be obvious who has all the money at this point… jew$$ )

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