1990 - "An economic crisis of colossal proportions". The US Government would become one of the main owners of real estate, buildings, and the worthless junk bonds.
"...the gathering collapse of the real estate market after the stock market crash of October, 1987. The sequence of a stock market panic followed by a real estate and banking crisis closely followed the sequence of the Great Depression of the 1930's....[the] federal government would simply take control of the savings banks, the overwhelming majority of which were bankrupt or imminently bankrupt. ...[Bush Sr] proposed to issue an additional $50 billion in new bonds through a financing corporation, a subsidiary of the new Resolution Trust Corporation...." [1]
After all, it isn't as if these strategies actually resulted in a resolution.
1994 US interest rates rose rapidly and that triggering massive losses in highly
leveraged derivative positions held by 'investors'. That same year the Mexican market collapsed, triggering a significant emerging market liquidity crisis. Then in 1997 the collapse of Asian equity and currency markets followed by corporate collapses and falls in asset prices. A major bad debt crisis is then created within financial institutions.
Then onto the 1998 Russian default on its debt leading to an emerging market
collapse. This also linked to the collapse of LTCM which is bailed out by a group of banks under US Federal Reserve auspices. Market and trading liquidity deteriorates, credit spreads also increase rapidly. The next year central banks announce a reduction in planned gold sales and gold lending programs. Losses for gold hedgers are experienced. Those that have large forward sales programs.
Forward, to the 21st Century with the bankruptcy of Enron and Worldcom and the Argentina default. General Motors and Ford are downgraded to “junk” status in 2005 -->hedge fund crisis. An emerging market correction in 2006; following on its heels, the subprime mortgage crisis of 2007.
Governments that thieve from the public purse to pay banks and hedge funds can always depend on the support of banks and hedge funds. (They're the ones that have financed the two presidential candidates in the upcoming US election, after all).
[1] George Bush: The Unauthorized Biography
by Webster G. Tarpley & Anton Chaitkin
Chapter -XXIII- The End of History
http://killtown.911review.org/bushbio/chapter23.html
1 comment:
This is a very interesting article (I found tonight) about Bush Sr's years in office. Pillaging of the public purse on an extraordinary and unprecedented scale (this document unequivocably states).
"By the end of 1992, the Bush Regime had raped and pillaged any source of money that was available to rape and pillage, meaning they had denuded every penny out of the 43 public trust funds, which are constitutionally sacrosanct. It is considered a High Crime for an administration to take money out of the sacrosanct public trust funds. The money does not belong to the United States Government. It belongs to the people of the United States.
They had taken $5 trillion out of the 43 national public trust funds and they had denuded the federal treasury of all of its reserve funds, and they had illegally taken from the Federal Reserve its emergency currency stabilization fund. They had drawn out all collateralized letters of credit. They had issued as much debt equity as they could under the federal agencies - Ginny Mae, Freddy Mae, etc. They had sold as many notes as they could and they had issued as many restricted and worthless notes as they dared. Greenspan pointed out in 1992 that the nation could not have survived another 4 years of Bushonomics because what they had been doing could simply not be hidden for another 4 years...Had Clinton adopted the policy of dribbling out the truth, the economy would have slowly sunk again and the fiscal surpluses he generated would have never been generated....
How George Bush Sr. Almost Got Indicted for Fraud
News: 11/20/02 - 01:11:28 by Admin by Al Martin
http://news4florida.tripod.com/indexfraud.html
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