Monday, September 14, 2009

The Next Meltdown

by Charles Gasparino - September 14th, 2009 - New York Post

Lehman Bros. filed for bankruptcy a year ago tomorrow; nearly to the minute it did, CEO Dick Fuld believed the feds would come to his firm’s rescue. That would’ve been somewhat of a repeat of events in 1998, when the Treasury Department and the Federal Reserve saved Lehman by arranging a bailout of the notorious Long-Term Capital Management hedge fund because Lehman copied the fund’s money losing trades.

This is another article among many that have come out in the last few days predicting that our financial system crisis is not done yet. We have not fixed the problems in our financial institutions. We have merely hidden them behind a mountain of public debt.

Obama cannot add anything useful to this dialog with his speech today, since he is totally ignorant of what free enterprise means. Of course since Wall Street and our financial systems have ceased to be free enterprise, his useless thoughts will not be perceived as being as useless as they actually will be.

Crony capitalism is the only appropriate term for the Wall Street of today that is currently struggling to survive. Nothing that our government does will cover up the reality that it is a house of cards, propped up by a corrupt government. When Obama talks today, filter his words through the reality that this crisis was caused by excessive government spending, stupid financial actions of a corrupt financial system and government guarantees to companies "too big to fail". Nothing significant has been done to change the laws and the Wall Street attitude that existed last year when the system collapsed. Though we have loaned or invested nearly a trillion dollars of public money, the system is still an irrational fraud.

Get ready for another breath taking plunge down. This roller coaster ride is not nearly over.


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