Thursday, February 26, 2009

A Contrived Crisis? - You Decide

As I write this, the Dow Jones is down another 150 points the next day after Obama has made his major speech to Congress. A few days ago I asked my readers to forward to me any information they might have found concerning the September, 2008 run on U.S. money markets that was the precipitating factor behind the huge TARP bailout, and which was the trigger that catapulted Obama ahead of McCain in the presidential polls. So far none of us have found anything from reliable sources that explains what and who were behind this devastating draw-down. The respected conservative author, Nancy Morgan, does, however, offer this overview of events last summer and fall. The greatest October surprise of all time may have been carried out last summer and fall.

A Contrived Crisis? - You Decide

Nancy Morgan February 23, 2009

Through a series of supposedly random but arguably deliberate chain of events, America is poised to jettison 220 years of a free market system called capitalism, in favor of the tried and failed system of socialism. This writer, and others, are now starting to question how we reached this point.

Last summer, as McCain and Obama were in the midst of their campaigns to capture the presidency, a series of events dramatically changed the focus of the campaign from Iraq to the economy. From that point on, Obama took the lead and eventually won the presidency.

June 26, 2008: Democrat Chuck Schumer leaked a memo questioning the solvency of IndyMac bank. This memo precipitated a run on IndyMac which led to its failure. Federal regulators pointedly cited U.S. Sen. Charles Schumer, D-N.Y., in explaining the bank's failure. "The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York."

This event, coupled with the Lehman Brothers collapse in September, marked the beginning of the current economic meltdown and provided the ammunition for massive government intervention in the private market.

July 12, 2008: The federal government takes control of the $32 billion IndyMac Bank.*

Sept. 6, 2008: Fannie Mae begins its downward spiral, which will end with a crash in November. This crash was avoidable, as the problems with Fannie Mae and Freddie Mac were identified in June of 2006, when 15 Republicans on the Senate Banking Committee introduced legislation to address the problem. Democrats, led by Barney Frank, killed the reform efforts.

Sept. 15, 2008: Obama and McCain are virtually tied in their race for the presidency. Out of no-where, in the space of less than 2 hours, the Federal Reserve noticed a tremendous drawdown of money market accounts in the U.S. to the tune of $550 billion. Rep. Paul Kanjorski of Pennsylvania said that if authorities had not closed the banks, $5.5 trillion would have been withdrawn from US banks, which would have caused the collapse of the US within 24 hours.

This seminal event marked the ascendancy of Obama's candidacy, and eventually resulted in his election as president.

Fast forward to this week. The markets reacted to Obama's proposal to bail-out mortgages and Senator Christopher Dodd's talk of nationalizing banks by reaching 11-year lows.

Obama continues to stoke the fears of imminent crisis, actually using the word 'crisis' a total of 26 times in one speech.

Enter George Soros. The infamous one-worlder, billionaire George Soros adds his voice to the media doomsayers by opining that the world financial system has effectively disintegrated, adding that there is yet no prospect of near-term resolution to the crisis.

Soros said the turbulence is more severe than during the Great Depression, comparing the current situation to the demise of the Soviet Union.

He may be right. The series of 'inadvertent errors', deliberate obstruction, political shenanigans, behind the scenes manipulation of the money markets and non-stop calls for immediate infusions of taxpayer cash have brought the U.S. to its knees.

With one voice, politicians, economists and 'experts' agree by unspoken consensus that government is the only solution. No one points out the fact that every single step taken so far by the government has exacerbated the problem, effectively bringing America one step closer to centralized government control. Which, coincidentally, Obama favors.

I am not an economist. But I will challenge any expert to dispute the fact that if President Obama took to the airwaves tomorrow and announced the Bush tax cuts would be extended and a capital gains tax cut was under consideration, the markets would immediately turn around.

That no-one is proposing this common sense solution is alarming. That no free market solutions are even under consideration is more alarming. That no-one is questioning who was responsible for the Sept. 15 run on money market accounts, or why the media was silent on it, lends credence to the possibility that our current economic crisis might not have been the result of a series of random events.

The economic meltdown is undoubtedly responsible for Obama becoming president. It is also responsible for the current consideration of socialistic solutions, if not outright socialism. Without a doubt, this crisis has strengthened the Democratic party. Yet to connect the dots and suggest that this crisis isn't a result of capitalism gone bad risks branding this author with the title of paranoid conspiracist.

Color me paranoid. Was this current crisis manufactured? I don't know. Does the possibility exist? You decide.

* Six months later, Jan 2, 2009, a seven-member group of investors agreed to buy the remnants of failed lender IndyMac for $13.9 billion. Other investors included a fund controlled by billionaire George Soros' Fund Management.

Nancy Morgan is a columnist and news editor for
She lives in South Carolina

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At 5:49 AM, Anonymous Joe said...

I knew where you were going with this when you mentioned "Contrived Crisis" and George Soros. If people want to brand you as being a paranoid conspiracist, they can also include me and a host of others who have heard about this same story. I truly believe that this was contrived by not only George Soros and the Democrats, but also George Bush. It's all part of their push for this "One World Order" under the U.N. It has to do with NAFTA and a thing called the "Law of the Sea Treaty", or LOST. Google it and see for yourself. If guys like Lou Dobbs and Glenn Beck have been earnestly talking about this for years, there has to be something to it. NAFTA is all about making the US, Mexico, and Canada, one big country. The dollar will cease to become American currency and the Ameros will replace the dollar. This is only the first step. The next step will be when the U.S. and the rest of the countries will pay taxes to the U.N., and be under the control of the U.N. This can happen, and it's going to happen thanks to people like George Soros, George H.B.Bush,George W.Bush, Bill Clinton, and most of the Democrats. When more illegal aliens are allowed to enter the US and become citizens who are willing to vote Democrat, the GOP will be crushed. You will be under the control of one party. Anyone who can not see this is blind or just plain ignorant. The American People need to wake up!

At 6:06 AM, Anonymous Anonymous said...

The worst part of this is people calling themselves conservative got this socialist boulder rolling.

I also blame Schumer for creating the initial stampede, but the Bush White House ("I had to destroy capitalism to save it," or something like that) started the multi-trillion-dollar run on the treasury.

The Wall Street banksters soiled themselves, so they called their buddy Dirty Hank, who got with them and looted the treasury in broad daylight.

I got so tired of hearing about the "bad debt" clogging the system. It was clogging the system because it was now worth 20 cents on the dollar and Uncle Sucker raised the possibility that he would buy it for the ridiculous price of a dollar on the dollar.

If you were holding these assets, wouldn't you sit on them and wait for Uncle Sam to buy them?

Now, if the US government came out and said in effect "tough luck, we're not bailing anybody out," what would you do? You'd take your lemons and make some productive lemonade, which would spur some economic activity.

The rich and powerful play a key role in the global economy,and like anyone, they will look out for themselves first.

Our founding fathers knew this, so they constructed a bulwark called the US Constitution to protect this nation from the plotting plutocrats. Our stinking, ignorant, venal demican and republicrat politicians, along with mullahs in black robes, have shot this great document so full of holes it is a rotten Swiss cheese now, and the rodents are crawling through it.

Great article as always, Russ.

At 9:37 AM, Anonymous Anonymous said...

I disagree with many of both the insinuations and the conclusions of both the article and the commentary. The economy was already on it's way down long before september. Regarding Obama and Mccain, it was just as much mccain who lost it as obama who won it. I'm paraphrasing but Mccain with comments like "the economy is sound" and "I don't know much about the economy" did him under. Obama ran a solid campaign and like it or not, he is simply more eloquent and persuasive and more articulate than mccain ever was. In fact, the whole Iraq thing was becoming less of an issue already and this was Mccain's main strength.
There was definitely shenanigans involved with everything to do with the financials, but it was probably about MONEY not some democrat conspiracy (with BUSH's help???) this just does not pass the basic smell test.
The US will never merge with canada or mexico Joe, that is just ridiculous.


At 10:41 AM, Anonymous Joe said...

I hope that you're right Steve, but time will tell. I know that Russ is incredulous about this "One world Order" thing, as I myself was a few short years ago, but that doesn't mean that it isn't true, or can't happen. Look at all the lies Obama has come out with, and the broken promises that he's made. The Liberal elite media has painted a happy face on a fascist, Socialist Dictator, and some of the gullible American People are swallowing it.

At 3:46 PM, Blogger RenĂ© O'Deay said...

the culprits are laughing their a$$es off watching you all blame the dems and the repubs.

At 5:53 PM, Anonymous Anonymous said...

Rene: Pithy comment. Please elaborate.

If our government followed the constitution, there would be no need to blame them.


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