Bloomberg Analyst: $700 Billion Bailout Could Balloon to $5 Trillion

Bloomberg Analyst: $700 Billion Bailout Could Balloon to $5 Trillion
Marc Faber Ltd. director calls initial cost estimates a 'drop in the bucket,' says real solution is to bring down overleveraging.

By Jeff Poor
Business & Media Institute
9/26/2008 11:09:16 AM



Conservative House Republicans and economists warn about the toll a $700 billion federal bailout of the financial sector would have on the taxpayers footing the bill. But according to Bloomberg TV analyst Marc Faber, the actual cost could be closer to $5 trillion.

Faber, author of the “Gloom Boom Doom” report, appeared on Bloomberg TV’s Sept. 26 broadcast of “Bloomberg Today” and noted just how small the proposed $700 billion bailout is compared to the overall U.S. credit market.


“So now they try to solve the problem by having this credit bubble actually extended and I think the $700 billion will be like a drop in the bucket because the total credit market in the U.S. is something close to $60 trillion, then you have the CDS market – credit default swap – of around $62 trillion. Then you have the whole derivatives worldwide worth about a notional $1,300 trillion. So the $700 billion is really nothing and the Treasury is just giving out this figure when actually the end figure may be $5 trillion.”

Faber, managing director of Marc Faber Ltd., is known for predicting the October 1987 stock market crash one week before it happened.

In his Bloomberg TV analysis of the financial bailout, Faber noted the inconsistencies of government intervention to date, but not without taking a swipe at the compensation of Wall Street executives.

“The reaction to that is inconsistent,” Faber said. “You let essentially Lehman Brothers go bankrupt but you save AIG and you save other brokers by merging them with banks and then you come with a bailout plan that should be paid by the taxpayer, when Wall Street last year in total received a compensation of $69 billion - $38-39 billion of which were bonuses paid to the executives essentially of Wall Street.”

Faber told “Bloomberg Today” host Jeremy Naylor the solution isn’t government intervention through a bailout, but to figure out how to eliminate the excessive leveraging in U.S. financial markets.

“Well first of all, I think the decline of home prices of 20 percent is a relatively minor decline so far,” Faber said. “And it’s created so many problems. It’s not the problem that home prices have gone down. The problem is excessive leverage. And somewhere, somehow, the U.S. has to try to bring down the excess leverage that exists in the system – that incidentally was built over the last seven to 15 years under Fed chairman Mr. Greenspan and then also under Mr. Bernanke.”



So let's do the math, we wrote a 940 Billion dollar check to the banks last week and now they want 700 Billion ; but remember folks - Financial derivatives by the BIS last JUNE was $516 Trillion ... , and congress just approved a 1 Trillion dollar defense budget, the largest in our nation's history. This 700 Billion dollar figure is put before the American people as a cover to what is really going on. "Look, you have a say on this 700 Billion dollars!" while lending upwards of 5 Trillion dollars. People should be outraged over this, instead we continue to try to live our lives as if nothing is wrong... business as usual.... but yeah - we're fucked.

The Indonesian Economy - Destroyed by design by the IMF / World Bank

Yeah, you're right - the NWO doesn't exist. They don't go around consuming country's financial systems like a host virus -- it's just a figment of my imagination...

The Answer

Revolution isn't won
Is just another form of gun
To do again, what they have done

Why loose our children
change it has to come
without a fight
can it be won?

Look in front of you
don't look behind
The past is the past
the Future is mine

It's not yours to take
to put me in your grid
You're not my uncle sam
I'm not your kid

If the answer is a gun
then I'm not the one

Water Fluoridation, Lead & Violence factors associated with these chemicals

A professor who's done the research states this...but then, NONE OF THIS is real right? I'm just a wack-job, weak minded tin-foil hat wearing conspiracy theorist - because I want my government to stop lying to all of us, and treating us all like mindless sheep

A History Lesson : Cambodia >Pol Pot / Khmer Rouge totalitarian regime

A History Lesson : Cambodia >Pol Pot / Khmer Rouge totalitarian regime

Government UFO? UAV ?

I'm open for your comments on this one. Namely, what the hell is this ?

Jim Rogers on Fannie Mae / Freddie Mac / Federal Reserve Bank / US Dollar

"That's not the way Capitalism is supposed to work - that's Socialism for the Rich."

It's confirmed - your media network is UNDER CONTROL, SLAVE!

Apparently, the US government's control over the mass media is second to only the Russians and the former USSR. We also possibly had a role to play in the Georgian invasion ; remember that with the cooperation of the CIA the president does NOT have to officially announce his secret wars. Look into it. Read a book, slave. And this video, if anything - proves we need to turn off our televisions and get our news from independent sources ; free from American propaganda . We were completely lied to, told that the Georgians were being in fact ; attacked by our Russian FRIENDS. And I say friends, because they ARE our friends - and we together should be a strong allied force to end (ALL WAR) but our Government just wants to trump up the cold war with them again and start another ARMS RACE. WAKE UP!!!

The Upcoming Election

A lot of my readers have asked, (will you vote) and (who) will you be voting for. At first, I thought our movement would be best represented by Senator Ron Paul ; whom speaks out against the Federal Reserve system. But, after reviewing a lot of his policy - I don't agree with the majority of it. For example, the removal of the Public School system (as flawed as it may be) is not on the table. Public School system reform, is something I would strongly support.

Now, as a nation we are stuck in this paradigm of left and right - a system designed to keep the two parties quarreling with one another while the real players back both sides. What people need to realize, is that the CFR controls (all) popular candidates and it's very hard to distinguish whom is telling us the truth at this point in time. Obama, for example - is backed by the major new york bankers and wall street. Why? This is a question we all need to ask ourselves. Our party (the democratic one) has also betrayed us on a number of levels, including support for an independent investigation into the event(s) on 9/11 ; and impeachment of Bush (Nanci Pelosi told us it was off the table)

So, in contrast - I registered Green Party this year, and I support Cynthia McKinney's run for president. I know it won't happen, but at least my vote will be for someone I believe in - and trust. It's hard to trust politians, and you must analyze how they voted and what they stood for during their time in office. Cynthia McKinney spoke out against both the Gulf War, and the current war we continue to wage on the middle east. She brought up investigations into COINTEL pro, the government FBI program to squash dissent, and she demanded answers as to (where) the missing money sent to Iraq went.

Someone who fights for the people, is exactly what this country needs right now. Not another corporation backed puppet. She has my vote, and hopefully she will be (the most voted for) green party presidential candidate to date.







We have the power, as a nation full of people whom want the same things (health care, peace with the international community, and fair trade agreements) and we cannot continue to let the elite power structure in this country continue to erode our civil rights, our values as a nation, and the right for us to speak out in protest. I do NOT subscribe to the notion that one who blindly follows their leader, never questioning their actions is a 'good' American. A good american, and a patriot - is one who will stand on the soapbox and tell his fellow people that the current system is a fraud, designed to deceive you into believing we still live in a true democracy. The Federal Reserve is a shining example of this, and you'll notice - not one of the popular presidential candidates speaks out against this. They're bought, and paid for. You people are just too stupid to see that, and I understand -- we've been lied to for a long time, and our corporate media is more well controlled than even the Soviets.

Osama Who? Oh yeah, Bin Laden's dead. We just didn't want to tell you that.

FEAR is the biggest tool they have in their toolbox to make you all slaves. You sheep!

9.11 was an Inside Job

...So, I caught these video clips from footage I recorded of the DNC. For 3 Hours, the 9.11 truth movement protested MSNBC's booth, essentially taking their newscast over. The footage from on the ground, I do not have - but I was watching the 'WE ARE CHANGE' 9.11 truth group from a live feed they had setup - and let me tell you, the Obama crowd was NOT welcoming and gave into mob mentality.










This is a pic someone sent me after the video hit about 6,000 views.

Listen carefully... Kennedy was killed because of this.

So, the New World Order isn't real - huh?

This is as REAL as it gets, so WAKE UP AMERICA! SMELL THE TYRANNY, YOU INSIGNIFICANT AND IGNORANT LITTLE SHEEP! We're spending BILLIONS a day to play policeman to the planet. This is NOT what the American people wanted, and they're living in the seventh circle of HELL now because we continue to give our rights away - and remain the slaves of the Bankers. Look, I love my country. I'm shamed by what it has become, because I am a patriot and I want to see things change. But the fact remains - none of these potential candidates - and it's GOING to be Obama (he's the chosen one, by not YOU sheep - but by the elites ) ; and either way there is going to be NO change. Think of it this way - look at the CFR ; which is a David Rockefeller created foundation. ALL OF YOUR CANDIDATES ARE MEMBERS OF THE COUNCIL ON FOREIGN RELATIONS. Look into it.

We don't want the word to go out that we want to exterminate the Negro Population

"We should hire three or four colored ministers, preferably with social-service backgrounds, and with engaging personalities. The most successful educational approach to the Negro is through a religious appeal. We don't want the word to go out that we want to exterminate the Negro population…" -- in a letter from Margaret Sanger / to Clarence Gamble (of Pocter and Gamble, 1939.)

Fabled Enemies

I know the personal sacrifices of being in the 9.11 truth movement, and educating people with the truth and not some fantasy they see in the corporatized media. You will be an outcast - because Americans loose interest very quickly. Attention is diverted to the latest Brittany Spears attempt at 15 minutes of fame. They don't understand that revolutions have been fought for less. Some will stand by you, and rally for the movement - while others will continue to be led as sheep into the fire. The message this movement is pushing is clear - WE WILL NEVER FORGET THE 9/11 LIE AND WE WILL CONTINUE TO UNCOVER YOUR DECEIT.