Ex-President Carter Slams Bush on Market Crisis
BRUSSELS – Former President Jimmy Carter said on Friday the “atrocious economic policies” of the Bush administration had caused the worst global financial crisis since the Great Depression of the 1930s.
Deregulation and what he called a withdrawal of supervision of Wall Street had encouraged irresponsible elements in the U.S. financial system, enabling banks to borrow 30 times their value.
Eight years ago, the United States had a budget surplus, low inflation and a stable, strong economy, he said.
Carter said he was astonished that the United States now owed China…
Black Friday? By Mike Whitney http://www.informationclearinghouse.info/article20986.htm
Panic has spread to stock markets around the world. A massive sell-off, which began when Henry Paulson announced a $700 billion bailout for the banking system, has turned into a global stampede.
Nearly one third of all deposits ($2.5 trillion) are not insured under present FDIC guidelines. If these deposits are not insured, as Isaac says, there will continue to be a slow run on the banks which is why the credit markets are paralyzed.
Investors have already pulled a record $72 billion from stock and mutual funds, and put the money in US Treasury’s and government-insured bank deposits.
If the trend continues, the financial system will collapse.
If the government overreacts and limits bank withdrawals or closes the stock market; the sense of desperation and panic will only grow. That increases the likelihood of rioting and violence…..
The government has lost the moral authority to rule. People have lost faith in everything. Bush has created a tinder box which could explode in flames at any time. It is a dangerous situation.
At this point the risk of an imminent stock market crash – like the one-day collapse of 20% plus in US stock prices in 1987 – cannot be ruled out as the financial system is breaking down, panic and lack of confidence in any counter party is sharply rising and the investors have totally lost faith in the ability of policy authorities to control this meltdown….