And the Crisis is purely a fiction. I am listening to Bernanke in the background testifying in the Senate. None of this would be happening without the Mark to Market rule. None of it. 8% of mortgages have defaulted. Mark to Market has caused 100% of them to marked down creating billions of false, paper losses, and a false lowering of assets, which brings in the regulators applying Capital Requirement Rules, which legally keeps the banks from lending. This freeze has been and continues to be created soley by the Federal Government. Pete Townshend is right. We do live on an immanence front, and it is purely a put on.
The Credit Freeze is 100% purely created by the government, and the solution can be implemented in one day. Simply eliminate “Mark to Market” and return the billions in false paper losses to the banks, so that their Capital structure is sound, their stock prices go back up, and they lend again.
I just heard Bernanke say “There is no ‘magic bullet'” Yes there is. There actually is no “Crisis” but since we are playing make believe, the Magic Bullet is simply to illeminate “Mark to Market” and it all magically goes away. But it is more advantageous to the Establishment to have a Crisis, because they know how to use it to their advantage.
It just occurred to me that this is an exact mirror of the false crisis of the immanence of Iraq’s danger to the U.S. used as an excuse to spend a trillion, actually to line pockets with a trillion. This is a false domestic crisis used as an excuse to spend a trillion, actually to line the pockets of legalized thievery with a trillion. Only its in the name of a “Domestic Crisis” instead of a Foreign Affairs “Crisis”
I posted this on the GilderTech Forum. Here were some responses: