Dow dives 800 points, recovers nearly 440 points

A Nation on the Grill

The entire action plan of Paulson and Bernanke is flawed and they should be fired. Have you noticed that US$ is rising , Oil is falling and Gold was depressed (excepting today). Who will buy US$ knowing everything is worsening, and the FED is on a printing spree with almost $1 trillions in just under 1 month? There is lot of manipulation going on and another ENRON is in the making.

Visit my blogsite [URL]http://anilselarka.wordpress.com[/URL] for full article, and also other articles on the sidebar that may open your eyes . This is serious stuff written in very easy and simple English.

Following is just the opening of the article:

OIL DOWN, DOLLAR UP, GOLD DOWN - What the Hell is Going On?

[CENTER][CENTER][FONT=Arial]US- a Nation on the Grill[/FONT][FONT=Arial][/FONT][/CENTER][/CENTER]
[FONT=Arial]A true nature of a person or nation comes to the fore, when it comes under extreme duress. A bankrupt person, corporation or a nation tries very hard to project itself as a person of extra ordinary means, contrary to facts, figures and market rumors, and go on shopping spree[/FONT][FONT=Arial]. [/FONT]
[FONT=Arial] [/FONT]
[FONT=Arial]This is why billions of dollars are being paid by one bankrupt bank or corporation to the other in take over process lasting only a few hours. No due diligence, no submission of bid to the board, No minority interest, no news out � just black out. [/FONT]

[FONT=Arial]Today�s scenario reflects �blind game�. No one knows about self or other party. The suitor does not know what he has, and the target does not know what it is worth. The vultures circling on the prey, ask for $700 billions with no questions asked. [/FONT]
[FONT=Arial] [/FONT]
[FONT=Arial]The President of United States, Senators, and Congressmen are stunned at the attack of unknown origin and extreme brutality. This is an act of extortion of $700 billions. Call it �Blackmail of Greenback� if you like.[/FONT]
[FONT=Arial] [/FONT]
[FONT=Arial]With worsening scenario being played out every day, no one in right mind will ever buy US dollar. Look at the box under Dollar Up and consider the following:[/FONT]
[LIST]
[*][FONT=Arial]Fannie/Freddie Mae got $200 Bln, [/FONT]
[*][FONT=Arial]AIG $85 Bln, [/FONT]
[*][FONT=Arial]JP Morgan got $59 billions ($30 Bln for taking over Bear Sterns and $29 Bln given to Bear Stearns itself), [/FONT]
[*][FONT=Arial]Washington Mutual Bank (WaMu) was given $230 Bln in last 3 months, all zero now, [/FONT]
[*][FONT=Arial]$673 Blns flooded into the market on Dow�s fateful day losing 778 points, and [/FONT]
[*][FONT=Arial]Billions of others not yet declared but given to host of banks, brokers and investment banks.[/FONT]
[*][FONT=Arial]$700 billions are now planned to be spent to buy the rotten and Zero value assets of the bankrupt banks. [/FONT]
[*][FONT=Arial]Bernanke opened up the empty treasury and also opened up largest currency printing press in the world, working 247365 or 24 x 7 x 365 (24 hours a day, 7 days a week and all 365 days a year) Never before in the history of United States, the dollar was printed with such intensity and also disappearing with the speed of hurricane category 6 into a giant black hole[/FONT][/LIST][FONT=Arial] [/FONT]
[FONT=Arial]No foreigner in right frame of his mind would at this point of time buy US dollar against his own currency, be it Euro, Pounds, Yen, Yuan, Aussie Dollar or any damn local currency.[/FONT][FONT=Arial][/FONT]
[FONT=Arial] [/FONT]
[FONT=Arial]With Dow falling, bonds collapsing, properties dumping, interbank dealing sine die, who is buying the US dollar? Why Euro, the most alternative currency for US dollar is falling, when it should have gone to almost magic 2.00 figure? [/FONT]
[FONT=Arial] [/FONT]
[FONT=Arial]If any foreigner wants to buy stocks or bonds or $ class assets, he has to sell his own currency and buy $. Then only $ could go up. But when the foreigners are not buying $, in fact they are dumping dollar assets. In that case who is buying this bankrupt dollar?[/FONT]
[FONT=Arial] [/FONT]
[FONT=Arial]About 10 years ago, whenever Dow rose, dollar also used to rise, because foreigners have to buy $ first before buying stocks or bonds. For the last 5 years, especially in last 3 years, dollar is falling while the Dow and Bond rising. This means that there is no demand for $ from overseas, it is only from within. The dollar so printed by FED is being used to manage (or manipulate) various sensitive commodities like Oil and other foreign currencies like Euro.[/FONT]
[FONT=Arial] [/FONT]
[FONT=Arial]Who is Buying Dollars, Why and How?[/FONT]
[FONT=Arial]Of course, the Americans by themselves. Not the ordinary resident Americans. They are just naïve and innocent law abiding citizens. The crooks are in the corporate world. [/FONT]
[FONT=Arial] [/FONT]
[FONT=Arial]Some US institutions, in US and newly floated off shore corporate entities, under the ostensible authority from US administration, are now buying US$ index and shorting Oil heavily on NYMEX. They appear to have been commissioned to search and destroy the vicious circle of oil price rise which is the major cause of inflation. [/FONT]
[FONT=Arial] [/FONT]
Unquote
Please visit my blog as above for full and well formatted article with Flow chart and graphs.

Kalidas, Hong Kong
7-Oct-2008

Granny says its a gubmint conspiracy to buy up all the banks...
:eek:
Treasury May Opt to Invest in Banks
October 8, 2008 WASHINGTON - Paulson May Exercise Option in Bailout Bill to Take Stake in Banks

]
The U.S. Treasury Department is considering taking ownership stakes in many U.S. banks in a bid to restore confidence in the badly shaken financial system, the New York Times said. The moves would come after Treasury has had little success in unlocking frozen credit markets, The Times said on its website, quoting government officials. Treasury officials told the newspaper the $700 billion bailout bill gives them the authority to inject cash into banks that request it, a move that would quickly strengthen banks' balance sheets and hopefully persuade them to resume lending.

In return, Treasury has the right to take ownership positions in the banks, including healthy ones. The bank recapitalization plan, in its preliminary stages, has emerged as one of the preferred options being discussed in Washington and on Wall Street to address concerns banks have about lending to one another and to other customers, the paper said. Treasury Secretary Henry Paulson spoke of the department’s new authority to inject capital into banks as one of the powers in the new bailout law.

“We will use all the tools we’ve been given to maximum effectiveness," he told a media conference on Wednesday, “including strengthening the capitalization of financial institutions of every size." Treasury officials worry that if not done properly, government purchases could alarm bank shareholders by appearing to be punitive or be interpreted as a sign that target banks were failing, the paper said. The bailout law calls for limits on executive pay when capital is injected into a bank and bars banks from paying its chief executive a “golden parachute” package.

More [url:
http://abcnews.go.com/Business/wireStory?id=5990356[/url]

Granny likes it when prices are lower...
:o
Crisis-hit US fears dumping by India, China
1 Nov 2008, WASHINGTON: In the midst of the global financial crisis, an influential US daily has raised the spectre of major producers like China and India dumping products in world markets and giving America another worry - deflation, or declining prices.

]
“As dozens of countries slip deeper into financial distress, a new threat may be gathering force within the American economy - the prospect that goods will pile up waiting for buyers and prices will fall, suffocating fresh investment and worsening joblessness for months or even years," the New York Times said on Saturday. “The word for this is deflation, or declining prices, a term that gives economists chills," it said noting, “Deflation accompanied the Depression of the 1930s."

Persistently falling prices also were at the heart of Japan’s so-called lost decade after the catastrophic collapse of its real estate bubble at the end of the 1980s - a period in which some experts now find parallels to the American predicament. “That certainly is the snapshot of the risk I see," Robert J. Barbera, chief economist at the research and trading firm ITG was quoted as saying by the Times. “It is the crisis we face."

In past crises, like those that devastated Mexico in 1994 and much of Asia in 1997 and 1998, weak economies managed to recover by exporting aggressively, not least to the United States, the New York Times said. But American consumers are battered this time. After years of borrowing against homes and tapping credit cards, consumers are pulling back, it said.

“From Asia to Latin America, exports are slowing and should continue to do so as the global appetite shrinks," the Times said. “This is spawning fears that major producers like China and India - which vastly expanded production capacity in recent years - will have to dump products on world markets to keep factories running and stave off unemployment, pressing prices lower."

[url=http://timesofindia.indiatimes.com/articleshow/3663068.cms?TOI_mostread:
MORE[/url]