Our Awful Situation

Quotes from the great depression

Posted in Economic Depression by Charlie Kilo on July 22nd, 2008

And history repeats itself…

September 1929
“There is no cause to worry. The high tide of prosperity will continue.” — Andrew W. Mellon, Secretary of the Treasury.

October 14, 1929
“Secretary Lamont and officials of the Commerce Department today denied rumors that a severe depression in business and industrial activity was impending, which had been based on a mistaken interpretation of a review of industrial and credit conditions issued earlier in the day by the Federal Reserve Board.” — New York Times

December 5, 1929
“The Government’s business is in sound condition.” — Andrew W. Mellon, Secretary of the Treasury

December 28, 1929
“Maintenance of a general high level of business in the United States during December was reviewed today by Robert P. Lamont, Secretary of Commerce, as an indication that American industry had reached a point where a break in New York stock prices does not necessarily mean a national depression.” — Associated Press dispatch.

January 13, 1930
“Reports to the Department of Commerce indicate that business is in a satisfactory condition, Secretary Lamont said today.” - News item.

January 21, 1930
“Definite signs that business and industry have turned the corner from the temporary period of emergency that followed deflation of the speculative market were seen today by President Hoover. The President said the reports to the Cabinet showed the tide of employment had changed in the right direction.” - News dispatch from Washington.

January 24, 1930
“Trade recovery now complete President told. Business survey conference reports industry has progressed by own power. No Stimulants Needed! Progress in all lines by the early spring forecast.” - New York Herald Tribune.

March 8, 1930
“President Hoover predicted today that the worst effect of the crash upon unemployment will have been passed during the next sixty days.” - Washington Dispatch.

May 1, 1930
“While the crash only took place six months ago, I am convinced we have now passed the worst and with continued unity of effort we shall rapidly recover. There is one certainty of the future of a people of the resources, intelligence and character of the people of the United States - that is, prosperity.” - President Hoover

June 29, 1930
“The worst is over without a doubt.” - James J. Davis, Secretary of Labor.

August 29, 1930
“American labor may now look to the future with confidence.” - James J. Davis, Secretary of Labor.

September 12, 1930
“We have hit bottom and are on the upswing.” - James J. Davis, Secretary of Labor.

October 16, 1930
“Looking to the future I see in the further acceleration of science continuous jobs for our workers. Science will cure unemployment.” - Charles M. Schwab.

October 20, 1930
“President Hoover today designated Robert W. Lamont, Secretary of Commerce, as chairman of the President’s special committee on unemployment.” - Washington dispatch.

October 21, 1930
“President Hoover has summoned Colonel Arthur Woods to help place 2,500,000 persons back to work this winter.” - Washington Dispatch

November 1930
“I see no reason why 1931 should not be an extremely good year.” - Alfred P. Sloan, Jr., General Motors Co.

January 20, 1931
“The country is not in good condition.” - Calvin Coolidge.

June 9, 1931
“The depression has ended.” - Dr. Julius Klein, Assistant Secretary of Commerce.

1 Comment »

Top 25 things vanishing from America: #1 — The family farm

Posted in Uncategorized by Charlie Kilo on July 22nd, 2008

This series explores aspects of America that may soon be just a memory — some to be missed, some gladly left behind. From the least impactful to the most, here are 25 bits of vanishing America.

No Comments »

Wachovia Has $8.9B Loss, Cuts 6,350 Jobs, Dividend

Posted in Banking, Housing Crisis by Charlie Kilo on July 22nd, 2008

Wachovia on the brink:

Wachovia Corp. lost $8.86 billion in the second quarter, and said Tuesday it was slashing its dividend and cutting 6,350 jobs after losses tied to mortgages soared.

Even excluding one-time items, the results substantially missed Wall Street estimates, and shares sank to mid-1991 levels in premarket trading.

No Comments »

How Goldman Sachs took over the world

Posted in Banking, Conspiracy, Corruption by Charlie Kilo on July 22nd, 2008

Who ya gonna call…

If there’s something weird in the financial world, who you gonna call? Goldman Sachs.

The US government, involved in a firefight against the conflagration in the credit markets, is calling in another crisis-buster from the illustrious investment bank, this time Goldman’s most senior banker to finance industry clients, Ken Wilson.

And so with this appointment, the Goldman Sachs diaspora grows a little bit more influential. It is an old-boy network that has created a revolving door between the firm and public office, greased by the mountains of money the company is generating even today, as its peers buckle and fall.

Almost whatever the country, you can find Goldman Sachs veterans in positions of pivotal power.

The 61-year-old Mr Wilson has already proved influential in deals to recapitalise and reorganise some of America’s listing banks. At the Treasury he will advise on what the federal government must to do help the process, but he will face scrutiny from those concerned about the tentacles wrapping lightly around government from Wall Street’s mightiest bank. For the time being, bailing out Wall Street looks to be the same as bailing out the economy, but if those diverge there could be more questions asked about the influence of Goldman Sachs alumni on public policy.

George Bush picked up the phone this month, partly at the instigation of another Goldman Sachs alumnus, his Treasury secretary, Hank Paulson. Together with Mr Bush’s chief of staff, Joshua Bolten, there will be three Goldman Sachs old boys in major positions of influence in the White House – but the US government is hardly alone in finding the bank’s executives to be attractive hirees.

They are well-credentialed, partly by design. From its beginning when the German immigrant Marcus Goldman began discounting IOUs among the diamond merchants of New York in the 1870s, Goldman Sachs has always known about the power of the network of influence. Goldman hires former politicians and civil servants, as readily as it supplies them.

And then there is simply the intellectual quality of the employees, many hired as much youngster men via a gruelling interview process, and then forged in the fire of 17-hour work days.

With Goldman Sachs at the heart of Wall Street, and Wall Street at the heart of the US economy, few expects its power to wane. Indeed, The New York Times columnist David Brooks noted that Goldman Sachs employees have given more money to Barack Obama’s campaign for president than workers of any other employer in the US. “Over the past few years, people from Goldman Sachs have assumed control over large parts of the federal government,” Brooks noted grimly. “Over the next few they might just take over the whole darn thing.”

No Comments »

Economist: “America May Default On Its Debt”

Posted in Economic Depression, Housing Crisis by Charlie Kilo on July 22nd, 2008

The Economist:

Only six months ago, politicians were counting on Fannie Mae and Freddie Mac, the country’s mortgage giants, to bolster the housing market by buying more mortgages. Now the rescuers themselves have needed rescuing.

After a headlong plunge in the two firms’ share prices (see chart 1), Hank Paulson, the treasury secretary, felt obliged to make an emergency announcement on July 13th. He will seek Congress’s approval for extending the Treasury’s credit lines to the pair and even buying their shares if necessary. Separately, the Federal Reserve said Fannie and Freddie could get financing at its discount window, a privilege previously available only to banks.

The absurdity of this situation was highlighted by the way the discount window works. The Fed does not just accept any old assets as collateral; it wants assets that are “safe”. As well as Treasury bonds, it is willing to accept paper issued by “government-sponsored enterprises” (GSEs). But the two most prominent GSEs are Fannie Mae and Freddie Mac. In theory, therefore, the two companies could issue their own debt and exchange it for loans from the government—the equivalent of having access to the printing press.

No Comments »

Sucker’s Rally? Stock Gains Likely to Be Short-Lived

Posted in Economy by Charlie Kilo on July 17th, 2008

No doubt about it…

While this week’s stocks rally isn’t making long-term believers out of many people, it does have market pros excited about being able to cover damage caused by recent woes on Wall Street.

“It’s a sucker’s rally,” Kathy Boyle, president of Chapin Hill Advisors, says of this week’s market move. “If you make money here, don’t get greedy.”

No Comments »

What if my bank fails? Some questions and answers

Posted in Banking by Charlie Kilo on July 17th, 2008

Could what happened at IndyMac Bank happen to my bank? Some questions and answers.

No Comments »

An Uncomfortable Conversation about Nukes

Posted in NWO, Nuclear, Powers That Be (PTB) by Charlie Kilo on July 17th, 2008

What are the Powers That Be planning:

Why are Henry Kissinger, George Shultz, William Perry, and Sam Nunn writing opinion pieces in the Wall Street Journal calling for the abolition of nuclear weapons? Keep in mind, these four people are not just major defense hawks. People like Kissinger and Nunn helped push through the single most dangerous and destabilizing innovation in nuclear weaponry, the arming of missiles with multiple warheads. All four have supported every conflict the United States has engaged in since World War II, all have enthusiastically supported nuclear weapons, and none has suddenly gone kumbaya on us.

No Comments »

Terrorist Watch List Hits One Million Names

Posted in Homeland Insecurity, Terrorism by Charlie Kilo on July 15th, 2008

Absolutely ridiculous!

The nation’s terrorist watch list has hit one million names, according to a tally maintained by the American Civil Liberties Union based upon the government’s own reported numbers for the size of the list.

“Members of Congress, nuns, war heroes and other ’suspicious characters,’ with names like Robert Johnson and Gary Smith, have become trapped in the Kafkaesque clutches of this list, with little hope of escape,” said Caroline Fredrickson, director of the ACLU Washington Legislative Office. “Congress needs to fix it, the Terrorist Screening Center needs to fix it, or the next president needs to fix it, but it has to be done soon.”

No Comments »

Local currency in Massachusetts considering removing dollar peg, backing with commodities

Posted in Dollar by Charlie Kilo on July 15th, 2008

This is interesting:

As BerkShares Board of Directors considers the future evolution of the program, the American Institute for Economic Research, a Great Barrington economic research organization founded in 1933, has called a mini-conference entitled “Prospects for the Acceptance of Competitive Local Currencies: The Future of BerkShares.” Several eminent monetary scholars will join BerkShares board and staff on Friday July 18th from 3 to 5 pm on the AIER campus to imagine growth to a more independent currency.

No Comments »

« Older Entries
Newer Entries »
{ }

Search

Recent Posts

Sites of Interest

Archives

Categories