Banker’s coup?

Financial industry rep. Paulson is the ringleader in a banker’s coup
the results of which will decide America’s economic and political
future for years to come. The coup leaders have drained tens of
billions of dollars of liquidity from the already strained banking
system to trigger a freeze in interbank lending and hasten a stock market crash. This, they believe, will force Congress to pass
Paulson’s $770 billion bailout package without further congressional resistance. It’s blackmail.

As yet, no one knows whether the coup backers will succeed and
further consolidate their political power via a massive economic
shock to the system, but their plan continues to move jauntily
forward while the economy follows its inexorable slide to disaster.

The bailout has galvanized grassroots movements which have flooded congressional FAX and phone lines. Callers are overwhelmingly opposed to any bailout for banks that are buckling under their own toxic mortgage-backed assets. One analyst said that the calls to Congress are 50 percent “No” and 50 percent “Hell, No.” There is virtually no popular support for the bill.

From Bloomberg News: “Erik Brynjolfsson, of the Massachusetts
Institute of Technology’s Sloan School, said his main objection ‘is
the breathtaking amount of unchecked discretion it gives to the Secretary of the Treasury. It is unprecedented in a modern

“‘I suspect that part of what we’re seeing in the freezing up of
lending markets is strategic behavior on the part of big financial
players who stand to benefit from the bailout,’ said David K. Levine,
an economist at Washington University in St. Louis, who studies
liquidity constraints and game theory.”
(Mish’s Global Economic Trend Analysis)

Brynjolfsson’s suspicions are well-founded. “Market Ticker’s” Karl
Denninger confirms that the Fed has been draining the banking
system of liquidity in order to blackmail Congress into passing the
new legislation.

Redacted from Article
Trouble in Banktopia: The financial system is blowing up
By Mike Whitney


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