By Andrew Robbins
CSMS Magazine Staff Writer
Is there a financial crisis? I’ll let you be the judge. As I start this article, the Dow just ended up 900 points. For many of us our retirement account and home equity is in the toilet. Yet, a last week’s headline read, “White House tells Banks to stop hoarding money.”
It is obvious the President does not understand Wall Street’s game plan. We are witnesses to the taxpayer funded, formation of the North American Banking Cartel. Emergency passage of the $700 billion bailout legislation resulted in Citigroup, Wells Fargo, and JP Morgan Chase each receiving $25 billion. Merrill Lynch’s take is $10 billion, and like magic, instantly it becomes a bank. Treasury secretary Paulson’s firm Goldman Sachs takes home $10 billion.
Many of the Regional Banks were reluctant to borrow from the Treasury. Until PNC Financial borrowed $7.7 billion and with Paulson’s approval immediately purchased National City Corporation.
The purchase of National City Bank sent a clear message to other Regional banks: Line up and start borrowing or I will fund your competitors, and they will take over your business. National City employees lost their retirement invested in NCC stock. Shareholders also lost their investments, but PNC and Wall Street rewarded National City management.
Working through the weekend, on Monday morning several Regional Banks announced they had made provision to borrow from the Treasury.
What does a bank do with borrowed money it does not need?
With Treasury Secretary Paulson’s encouragement, PNC set the precedent; you buy out your competition and begin to create a monopoly, the banking cartel.
There are many small publicly traded banks that do not have toxic assets on their balance sheet. Their stock price is near all time low. They now have ‘acquisition target’ on their back.
The Regional banks are comparable to medium size fish. Now their mission is to gobble up the fry, small well-managed local banks. The big banks, the killer whales, they wait in the distance and, when time is appropriate, move in and consolidate the Regional banks into the North American Banking Cartel.
Life insurance companies are lining up too. They want a piece of the remaining $90 billion dollars. Some of those firms are in trouble. They loaded up with Wall Street’s toxic paper, and now ask the government to make participation in an insurance bailout mandatory. They do not want the public to become aware of their peril. Other well-managed insurance companies want to take advantage of taxpayer funds and buy up competitors.
I love this country. If there was a crisis, anywhere else, the guilty would have been gathered-up and shot by now. Good luck on your investments.
Note: CSMS Magazine and the author are not in the business of providing financial services or advice. Prior to investing readers should seek professional assistance.
Andrew Robbins is the author of “It Took My Breath Away: One Man’s Experience May Save Your Life.” He may be reached by email at: awrobbins1@earthlink.net
Also see t’s Your Money, The Way I See It (Part V)
It’s Your Money, The Way I See It (Part IV)
It’s Your Money, The Way I See It (Part III)
Also see It’s Your Money, The Way I See It (Part II)
It’s Your Money, The Way I See It
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