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Here We Go Folks

September 26, 2008

WaMu had a classic ‘run on the bank’. Now the real problems start. This is  “The biggest bank failure in U.S. history.” Some said that the failure of the mortgage companies won’t affect the banks. They were wrong, again. Yet we still let them solve our problems and even listen to them. Why?

Due to the failure of Lehman Brothers, people started taking out more money, probably due to their ‘lack of faith’ in the whole system right now. WaMu did not have enough liquidity and bam. Your money is not there. Though you are insured up to 100,000$, so just please wait while we print your money for ya. The FDIC had to seize WaMu and sell most of it’s assets to JP Morgan.

This is all crazy. We need to just take a deep breathe. Look at what the foundational problem is, and fix it. The problem of all this is not deregulation either. It is the system it self. The foundation. The ‘keystone’. The Federal Reserve and our fiat money system.

Wake up and smell the coffee.

In Liberty,

Jon lauro

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2 Comments leave one →
  1. endithinks permalink
    September 26, 2008 1:20 PM

    I had to tell my students today in class not to freak out about the banking system. I teach adults in a trade school. The main problem is not just one thing like deregulation (which is a major source of the problem) but also greed, lack of understanding on how credit works on part of the consumer, shady real estate deals, consumers being irresponsible, selling debt to the highest bidder, a lame duck president and lamer ducks Congress and the list goes on and on.

    The only way our economy works is through confidence and President Bush dashed that confidence to the ground in the worst Doom and Gloom speech I have ever heard a President give. It was disgusting and if people start running to their banks our system is going to collapse.

    We need to have leadership that is confident and calm that does not encourage people to only protect themselves or we will all fall down.

    The system is flawed and inherently so, but it is the system we have for now and until we change that (I hate the Fed by the way) we have to work with what we have.

    What do you think regular Joe Sixpack can do right now in this process? I can only come up with a few things off the top of my head.

  2. Jon Lauro permalink*
    September 26, 2008 1:34 PM

    Well i agree, there are many other problems that i believe all have a root source. The Fed. Right now we need to just prop this system up so we can have an actual debate on the issue. (like that will ever happen)The average person just needs to hang in there, i think they need to start asking serious questions and holding people responsible for this mess, not rewarding them by bailing them out.

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