I think that FDR was even worse than Barak Obama. He ended up keeping the rates of unemployment higher than Barak Obama has. U.S. had a free market economy until after FDR became President. I think that Barak Obama has done a lot less harm than FDR had done. Feeding the hungry was the right thing to do. Most other things FDR did had produced disastrous consequences for this nation.
--- In Politics_CurrentEvents_Group@yahoogroups.com, Carl Spitzer <cwsiv@...> wrote:
>
>
> http://blogs.forbes.com/larrybell/2011/06/07/u-n-agreement-should-have-all-gun-owners-up-in-arms/
>
> The Next Financial Crisis Will Be Hellish And It’s On Its Way
> Jun. 1 2011 - 3:11 pm
> Posted by Addison Wiggin
> Federal Reserve Board Chairman Ben Bernanke (L...
>
> Bernanke and Volcker: Different men, vastly different monetary policies
>
> “There is definitely going to be another financial crisis around the corner,â€
> says hedge fund legend Mark Mobius, “because we haven’t solved any of the
> things that caused the previous crisis.â€
>
> We’re raising our alert status for the next financial crisis. We already
> raised it last week after spreads on U.S. credit default swaps started
> blowing out. We raised it again after seeing the remarks of Mr. Mobius,
> chief of the $50 billion emerging markets desk at Templeton Asset Management.
>
> Speaking in Tokyo, he pointed to derivatives, the financial hairball of
> futures, options, and swaps in which nearly all the world’s major banks are
> tangled up.
>
> Estimates on the amount of derivatives out there worldwide vary. An oft-heard
> estimate is $600 trillion. That squares with Mobius’ guess of 10 times the
> world’s annual GDP. “Are the derivatives regulated?†asks Mobius. “No. Are
> you still getting growth in derivatives? Yes.â€
>
> In other words, something along the lines of securitized mortgages is lurking
> out there, ready to trigger another crisis as in 2007-08.
>
> What could it be? We’ll offer up a good guess, one the market is discounting.
>
> Seldom does a stock index rise so much, for so little reason, as the Dow did
> on the open Tuesday morning: 115 Dow points on a rumor that Greece is going
> to get a second bailout.
>
> Let’s step back for a moment: The Greek crisis is first and foremost about
> the German and French banks that were foolish enough to lend money to Greece
> in the first place. What sort of derivative contracts tied to Greek debt are
> they sitting on? What worldwide mayhem would ensue if Greece didn’t pay back
> 100 centimes on the euro?
>
> That’s a rhetorical question, since the balance sheets of European banks are
> even more opaque than American ones. Whatever the actual answer, it’s scary
> enough that the European Central Bank has refused to entertain any talk about
> the holders of Greek sovereign debt taking a haircut, even in the form of
> Greece stretching out its payments.
>
> That was the preferred solution among German leaders. But it seems the ECB is
> about to get its way. Greece will likely get another bailout â€" 30 billion
> euros on top of the 110 billion euro bailout it got a year ago.
>
> It will accomplish nothing. Going deeper into hock is never a good way to get
> out of debt. And at some point, this exercise in kicking the can has to stop.
> When it does, you get your next financial crisis.
>
> And what of the derivatives sitting on the balance sheet of the Federal
> Reserve? Here’s another factor behind our heightened state of alert.
>
> “Through quantitative easing efforts alone,†says Euro Pacific Capital’s
> Michael Pento, “Ben Bernanke has added $1.8 trillion of longer-term GSE debt
> and mortgage-backed securities (MBS).â€
>
> Think about that for a moment. The Fed’s entire balance sheet totaled around
> $800 billion before the 2008 crash, nearly all of it Treasuries. Now the Fed
> holds more than double that amount in mortgage derivatives alone, junk that
> the banks needed to clear off their own balance sheets.
>
> “As the size of the Fed’s balance sheet ballooned,†continues Mr. Pento, “the
> dollar amount of capital held at the Fed has remained fairly constant. Today,
> the Fed has $52.5 billion of capital backing a $2.7 trillion balance sheet.
>
> “Prior to the bursting of the credit bubble, the public was shocked to learn
> that our biggest investment banks were levered 30-to-1. When asset values
> fell, those banks were quickly wiped out. But now the Fed is holding many of
> the same types of assets and is levered 51-to-1! If the value of their
> portfolio were to fall by just 2%, the Fed itself would be wiped out.â€
>
> Mr. Pento’s and Mr. Mobius’ views line up with our own, which we laid out
> during interviews on our trip to China this month.
>
> An Eye on the Next Financial Crisis by Addison Wiggin originally appeared in
> the Daily Reckoning.
>
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