Treasury Admits Economy is Still in Trouble → Washingtons Blog
Treasury Admits Economy is Still in Trouble - Washingtons Blog

Monday, September 14, 2009

Treasury Admits Economy is Still in Trouble

The perma-bulls say that the economic crisis is over.

But a new report from Treasury entitled “The Next Phase of Government Financial Stabilization and Rehabilitation Policies” indicates that the banks and the financial system will need to remain on life support for the indefinite future:

Although we are rolling back emergency support programs that are no longer needed, significant parts of the financial system remain impaired. Unanticipated events could intensify pressure on the financial system. In this context, it is prudent to maintain capacity to address unforeseen developments [i.e. life support] ...

The normalization of financial markets achieved to date is partial and fragile, and the economic recovery is, at best, in its very early stages. In residential real estate, although the rate of deterioration has slowed, the market has not established a firm bottom ... and foreclosures continue to rise across all classes of mortgages, with prime mortgages now leading the way. The restructuring process for the commercial real estate market has only recently begun. The pace of bank failures has increased and it is expected to remain elevated for some time. However, liquidity-induced failures have steadily decreased given the existence of deposit insurance and the orderly resolution of failed banks. Moreover, the FSP in general and the SCAP in particular were designed to ensure that the financial system as a whole had the capacity to continue to perform its vital functions while dealing with these challenges.

During this difficult period of adjustment, the system could be sensitive to unanticipated market events. Further, in those markets where conditions have improved, it is unclear whether the improvements achieved to date will persist without a period of continued government support.


  1. sept 31 is the day of reckoning supposedly un less barack bush pulls a george bush and ignores the deadline for bank solvency derivatives adjustment day.(basicaly meaning they have to account for all the money they made from thin air when new loans are written)

    its supposed to happen ?

    to sum it up a little . remember a bank is supposed to only loan out up to 90% of its deposits, lets examine how derivatives fudges the equation.

    lets say we are the first national bank of only 1 depositor. and we are going to give a lesson on derivative fractional bankin. let's begin.

    depositor #1 deposits 1000.
    now our bank is open for business.
    in comes our first customer.
    its the bank president, he wants to borrow everything he can. so as the teller tells him he has 900 dollars available to lend. mr. president
    accepts the loan and is given a 900 check. with derivatives he now can show the original 1000 deposit and a 900 deposit for the money now owed back to the bank.

    in comes customer #2 , he asks the teller for everything he can now borrow. the teller does a quick calculation and determines that 90% of the original 1000 deposit and the promise of 900 owed is 1710. customer #2 accepts a check for 1710, and makes a promise to pay it back.

    in comes customer #3. he asks the teller for everything he can borrow. the teller makes a calculation and determines that the nank now has 3610 in deposits and promises of which he can now lend 3249 dollars by the rules he has to follow. customer 3 accepts the check for 3249 and agrees to pay it back.

    get the picture yet, you might intelligently ask who keeps cashing these checks the bank writes . that would be the federal reserve , who simply prints the money when a loan is written. and now is due day when they have to open up the books because its jig has been called and the original depositor wants his money back and there isnt enough there to give it back to him. cause the bank president has it all

    there you have a simple lesson in the federal reserve and fractional derivatives , so now you know when you hear all these complex terms that its all just a big ponzi scheme by supposedly legalized racketeers

    abolish the federal reserve , and once again allow congress to mint the money , at least if they make it out of paper we want have to pay the interest , it can be apportioned like the constitution allows

  2. No one should take even any meager solace here.

    The article title, "Treasury Admits Economy is Still in Trouble" indicates the perverse brains in government are still addressing the collapse as an economic problem.

    This is not a problem with the economy.

    Everyone in the country could go out and buy more of everything, including -a more efficient car; -they could all pay their bills on time, and they could all work harder, longer hours, and nothing would change.

    The country and the world would still be up Shits Creek without a paddle.

    The "Trouble" referred to in this article-title is caused by an ongoing and increasing lack of efficacy in what we all have been taught, and what we have come to no longer believe in -about what were once easily accepted truths underlying the paradigms of all our existences on this small and once much more beautiful, pleasant, and sweet smelling planet.

    Far too simply put, -what we were all taught was that if we were able citizens, humanitarians, scientific and productive believers in a modern Star Trek future, that everything would get continually better, become more bountiful, and -disease and poverty would be eradicated for humanity.

    You remember, don't you? I wish they all could be Cal-ifornia girlz!

    Have you seen any California girls recently?

    Quite a large percentage of California girls weigh in better than 300 pounds. A lot of California girls are Methamphetamine addicts missing half their front teeth! And if there's an expression that typifies the roadblock at the end of this sorry tunnel of love and progress -it's: "I've seen enough tattoos to last ME the rest of my lifetime."

    This isn't just a bump in the Information Superhighway either. Silicon Valley, -once the glitzy Mecca of American Progress, is starting to look EXACTLY like Detroit, if a Detroit with Algae-filled swimming pools spawning infestations of West Nile Virus mosquitoes and West Nile virus.

    Wait a second!

    We all still have our computers, alloy wheels on our cars, distance learning, Ipods, FM radio and color digital TV, -but the overall standard of living just slipped far below what everyone enjoyed in the 1950s -long before all those things came into being with the promise of improving all our lives. @@@@#SS%^$))*!!!!

    What the hell happened?

    I'll tell you what happened. Just as when -Empirical Thought- set us on this hideous path by supplanting commonly held -Superstitious Thought-, -Empirical Thought- itself has come up so massively short in the Truth Department, its effect has turned out far-far worse than the -Superstitious Thought- it displaced.

    Science is dead.

    The problem is the philosophers all started fornicating with anything they could bend over, smoking dope, snorting dope and shooting dope while dreaming of owning a star ship like they saw in the movie -Star Wars.

    They all gave up the necessary chase for human truths. And the stoned world slipped into the decadence of the Existentialist Hotel California.

    Fear not though. One way or another, you are eventually going to check out, Michael Jackson.

    Here's the deal, Dancing Boy.

    Just as -Empirical Thought- once lauded over -Superstitious Thought- at the time of the Enlightenment, -Categorical Knowledge- (knowledge that is true in every instance without exception) now lauds over Empirical Thought.

    Categorical Knowledge demands society stop all the empirical gambles, because these are immoral wagers where the future of the world is at stake.

    So then, -categorically speaking- the economy is NOT still in trouble.

    The empirical gambles that make the economy so destructive and degrading are what has caused all the trouble.

  3. 31 of September...... So the Derivs never come due.... Must be that Damn Mayan calender......


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