Some of the biggest, safest insurance companies in the US have lost over 50% of their capital in the last 2 years.
That is Not the bad news.
The bad news is that much of the remaining capital the companies report are of suspect valuation, since mortgage backed securities, especially commercial mortgage backed securities, CMBS, are about to implode.
Recently, a major office building in Boston was sold for 50% of its “value.” I doubt that the securities that mortgage supported reflected the true value of the property, do you? How much of it are owned by insurance companies? I don't know.
Or how about the impending blow up of one of the biggest Mall owners in the world, in the next 30 days, think that will have an impact on the assets of the insurance companies? (See post, The Next Big Bang)
Update! General Growth Properties, the company hinted at above, today, April 16, declared bankruptcy! The stock market gained over 100 Points!
With 10% of life insurers capital invested in commercial real estate, it is estimated that a decline in value of the real estate of 25% would wipe out 1/2 of the insurers nominal capital, including of course the hidden losses mentioned above.
This would crush their stock and may incite shut downs of many companies by their State Legislatures.
Estimates I am seeing are that about 30% of all commercial mortgages will fail!
Did you ever think what would happen if your life insurance company collapsed, went out of business?
On paper, you would be covered for $100,000 in life claims. On paper.
In reality, most life insurance policies are backed by a State Insurance Guarantee.
How many States are currently facing bankruptcy? About 40 out of the 50.
But even if your family did receive the full $100,000, out of the $500,000 you were paying for with the other $400,000 blowing away with the debris from the insurance company itself; along with your premiums you paid for it over the years, what then?
Take out $10,000 for your burial, $20,000 for final hospital, medical and other bills and your family will have between $30-$50,000 to ‘Maintain Their Lifestyle.”
Obviously, that ain’t gonna help!
What to do?
I am assuming you have a whole life policy with cash value.
Remember how much equity you had in your house back in 2006! How much do you have now?
The same with the cash equity in your insurance policy. I would borrow out as much of the cash value as possible, before it evaporates like your home equity and invest it in precious metals, gold and especially silver.
If you should die in the near future, your family’s insurance proceeds would be lessened by the amount of the loan, but would still total the face value, including your investment in precious metals.
We are predicting that the precious metals are going to go on the greatest Bull Run in the history of the world, once the economy is “saved” by devaluing our currency, as that is the only way the gigantic debts we owe can ever be repaid.
There is precedence for such a move. In the ancient world, Emperors would either decrease the size of their coins or in Rome, dilute the gold or silver with other, less valuable fillers, while proclaiming the coins were worth the same amount of money.
In the First Great Depression, Roosevelt devalued the dollar by raising the price of gold, to which the value of the dollar was pegged, from $20 Oz to $35 Oz. This meant that what it used to take $20 to buy now took $35 or 57% more.
Looked at another way, the supply of money was increased by 57%, enough to pay off the huge debts which of course remained fixed in value; albeit with cheaper dollars. This is China's big fear.
There is simply not enough money in the world to pay off the Trillions of dollars in debts and unfunded mandates like medicare and social security facing the US.
If the dollar is devalued by only 10%, it is estimated that gold will go to over $5,000 per ounce and silver over $100. It is also likely that the devaluation will have to be even greater, maybe 20% which would mean gold at $10,000 Oz. Of course we would no longer call it a "dollar." OMG! They are already with the "new dollar" called the Amero, after the Euro; but that is a different discussion.
For reasons discussed in other posts on this blog, I believe that silver will outperform gold, real estate, and the stock market when the economy is re-flated.
Showing posts with label Great Depression. Show all posts
Showing posts with label Great Depression. Show all posts
Wednesday, April 8, 2009
Wednesday, February 11, 2009
Now, the Fed Swoops in to Pick Up the Spoils!
CNN, 11 Feb 2009 "Administration officials committed to flood the financial system with as much as $2.5 trillion — $350 billion of that coming from the bailout fund and the rest from private investors and the Federal Reserve, making use of its ability to print money." (Money it creates out of thin air, but charges interest on. )
We have seen this play before, The First Great Depression in the 1930's among other debacles.
First, the Fed funds an enormous bubble in some asset class, real estate, stocks, Oil, etc.
That kicks off an irrational exuberance, eg. The Roaring Twenties.
The Fed and its minions stubbornly declare that all is well, there is no reason to worry, the economy has entered a new phase. Gone are bad old recessions once and for all.
Remember as late as 2004 Alan "Double Bubble" Greenspan, Fed chairman said, "Bubble? What Bubble, it is impossible to have a National Bubble in real estate since each market is local!" He also famously said, just a few years prior, A Bubble in the Stock Market? No Way!
Eventually, of course the Bubble implodes, (no tree ever reaches the sky!) resulting in astronomical losses, especially to the poor schnubs who came late to the party.
Public money, (loaned, gratiously by the Fed) is needed to clean up the mess and save Wall St, or the banks from collapsing.
What to do with all those failed assets that people bought for outrageous prices at the height of the boom, with money borrowed from the banks? (read FED)
Well, they must be liquidated, so they set up a Public/Private partnership to get rid of them.
Whether it is the Reconstruction Finance Corporation from the First Great Depression, the Resolution Trust Corporation of the 1980's or whatever Official sounding term they will tag on this one, the result will be the same.
Assets that exploded in price, rank speculation fueled by the Fed, gobbled up investor's funds as their prices soared into the stratosphere. Fun, riches, good times for all!
What the average man did not realize however was that the knowledgeable investor was Selling while he was buying! They made enormous profits.
However, once the inevitable crash took place and values plumeted, the banks that financed the investors had to be saved from all the loans on their books that were now in default!
This called for a tremendous influx of tax payer money. Tax payers took the losses, while the private sector took the profits.
Now, what to do with all of those worthless assets? Let's set up a Public/Private partnership and dispose of them. Back come the bank funded (read Fed) money men to pick up
the troubled assets at fire sale prices! The SCARFF plan. (You know, like the college kids scarff down beer and burgers?)
Here is a real life example:
In 1989, the nation faced a financial crisis caused by the collapse of hundreds of savings and loan associations, who had taken advantage of loosened regulations to invest aggressively in real estate and other ventures, many of which went sour.
We have seen this play before, The First Great Depression in the 1930's among other debacles.
First, the Fed funds an enormous bubble in some asset class, real estate, stocks, Oil, etc.
That kicks off an irrational exuberance, eg. The Roaring Twenties.
The Fed and its minions stubbornly declare that all is well, there is no reason to worry, the economy has entered a new phase. Gone are bad old recessions once and for all.
Remember as late as 2004 Alan "Double Bubble" Greenspan, Fed chairman said, "Bubble? What Bubble, it is impossible to have a National Bubble in real estate since each market is local!" He also famously said, just a few years prior, A Bubble in the Stock Market? No Way!
Eventually, of course the Bubble implodes, (no tree ever reaches the sky!) resulting in astronomical losses, especially to the poor schnubs who came late to the party.
Public money, (loaned, gratiously by the Fed) is needed to clean up the mess and save Wall St, or the banks from collapsing.
What to do with all those failed assets that people bought for outrageous prices at the height of the boom, with money borrowed from the banks? (read FED)
Well, they must be liquidated, so they set up a Public/Private partnership to get rid of them.
Whether it is the Reconstruction Finance Corporation from the First Great Depression, the Resolution Trust Corporation of the 1980's or whatever Official sounding term they will tag on this one, the result will be the same.
Assets that exploded in price, rank speculation fueled by the Fed, gobbled up investor's funds as their prices soared into the stratosphere. Fun, riches, good times for all!
What the average man did not realize however was that the knowledgeable investor was Selling while he was buying! They made enormous profits.
However, once the inevitable crash took place and values plumeted, the banks that financed the investors had to be saved from all the loans on their books that were now in default!
This called for a tremendous influx of tax payer money. Tax payers took the losses, while the private sector took the profits.
Now, what to do with all of those worthless assets? Let's set up a Public/Private partnership and dispose of them. Back come the bank funded (read Fed) money men to pick up
the troubled assets at fire sale prices! The SCARFF plan. (You know, like the college kids scarff down beer and burgers?)
Here is a real life example:
In 1989, the nation faced a financial crisis caused by the collapse of hundreds of savings and loan associations, who had taken advantage of loosened regulations to invest aggressively in real estate and other ventures, many of which went sour.
Fearing both the size of the bill if the troubled institutions went under (too big to fail!) and the damage such a meltdown might cause to the economy at large, Congress and President George H.W. Bush in 1989 created the Resolution Trust Corporation to take over troubled thrifts, as the banks were known.The mission of the corporation was to dispose of the assets as quickly as possible for maximum value.
In swooped the Fed financed investors who made out like bandits when the economy returned to normal (waiting for the Next bubble!)
So you see the Fed loves economic Panics, as they were called in the last century, they make money when the economy goes up and when it crashes! Is it any wonder they are so keen on causing Panics, Recessions and Depressions?
Saturday, February 7, 2009
Taking Worthless Securites from Banks and Putting Them on the Backs of American Workers!
"...moving that heavy load of dubious and worthless paper --out of the banks and putting it on the back of American labor.
That is what the Reconstruction Finance Corporation is doing now. They talk about loans to banks... but they say very little about that other business of theirs which consists in relieving the swindlers who promoted investment trusts in this country and dumped worthless foreign securities into them and then resold that mess of pottage to American investors under cover of their own corporate titles.
The Reconstruction Finance Corporation is taking over those worthless securities from those investment trusts with United States Treasury money at the expense of the American taxpayer and the wage earner."
These excerpts are from Congressional testimony by Congressman Louis T. McFadden during the the First Great Depression. Has sort of a familiar ring to it, doesn't it? Make certain substitutions, such as mortgage derivatives instead of "investment trusts, " and mortgage securities for "foreign securities" and you realize that this has happened before!
The Federal Reserve Bank was neck deep in producing the First Great Depression and it and its minions are equally involved in this evolving, 2nd Great Depression! Substitute the Reconstruction Finance Corporation for the "Bad Bank" being dredged up by Wall st and you will see they want to do the same thing this time that they did last.
That is what the Reconstruction Finance Corporation is doing now. They talk about loans to banks... but they say very little about that other business of theirs which consists in relieving the swindlers who promoted investment trusts in this country and dumped worthless foreign securities into them and then resold that mess of pottage to American investors under cover of their own corporate titles.
The Reconstruction Finance Corporation is taking over those worthless securities from those investment trusts with United States Treasury money at the expense of the American taxpayer and the wage earner."
These excerpts are from Congressional testimony by Congressman Louis T. McFadden during the the First Great Depression. Has sort of a familiar ring to it, doesn't it? Make certain substitutions, such as mortgage derivatives instead of "investment trusts, " and mortgage securities for "foreign securities" and you realize that this has happened before!
The Federal Reserve Bank was neck deep in producing the First Great Depression and it and its minions are equally involved in this evolving, 2nd Great Depression! Substitute the Reconstruction Finance Corporation for the "Bad Bank" being dredged up by Wall st and you will see they want to do the same thing this time that they did last.
Ron Paul Calls for End of Federal Reserve Bank!
Ron Paul, Texas Congressman, Calls for abolishing the Federal Reserve Bank!
"Madame Speaker, I rise to introduce legislation to restore financial stability to America's economy by abolishing the Federal Reserve. Since the creation of the Federal Reserve, middle and working-class Americans have been victimized by a boom-and-bust monetary policy."
You can read the rest of Paul's statement before Congress here:
http://news.goldseek.com/RonPaul/1233818100.php
Apparently, the news was not significant enough to be carried on the Main Stream Media.
This is Explosive! The last Congressman who called for the end of the Federal Reserve, after 3 attempts, was killed! His name is Louis T. McFadden, a Republican from Pennsylvania. He was actually not only a Congressman, he was also the Chairman House Banking and Currency Committee.
You can read his 25 minute Congressional tirade against the Fed in the Congressional Record, pages 12595-12603 or Google it.
As you have seen throughout my writings on this Blog and elsewhere, The Fed, which is as Federal as FedEx, is a Private Bank and was behind the various booms and busts we have suffered through since it was created on the night before Christmas eve, 1913 when only the conspirators were present in Congress. They had sent everyone else home for the holidays, assuring them that a vote would not be taken before 1914.
The owners of the Fed are the richest and most powerful men on the planet, International Bankers, led by the Rothschilds.
The Patriarch of the clan is now Lord Alfred Rothschild of the UK. Look up "The Creature From Jekyl Island" the story of the "Hatching" of the Federal Reserve Plot. It is scarier than anything that Steven King ever imagined, because it it TRUE!
I know it is hard to believe and I am not going to go into detail in this posting, but these people own the banks that own the Fed. Look at this, courtesy of Eustace Mullins, "Secrets of the Federal Reserve" which every American needs to read:
The shareholders of these banks which own the stock of the Federal Reserve Bank of New York are the people who have controlled our political and economic destinies since 1914. They are the Rothschilds, of Europe, Lazard Freres (Eugene Meyer), Kuhn Loeb Company, Warburg Company, Lehman Brothers, Goldman Sachs, the Rockefeller family, and the J.P. Morgan interests. These interests have merged and consolidated in recent years, so that the control is much more concentrated. National Bank of Commerce is now Morgan Guaranty Trust Company. Lehman Brothers has merged with Kuhn, Loeb Company, First National Bank has merged with the National City Bank, and in the other eleven Federal Reserve Districts, these same shareholders indirectly own or control shares in those banks, with the other shares owned by the leading families in those areas who own or control the principal industries in these regions.
The Kingpin of this group is the Rothschilds, who own or control an empire, including until recently, The Bank of England; Reuters and the Associated Press, of over a reputed $500 Trillion Dollars. Although the Rothschilds are not now a household word, having successfully replaced the Fat, Greedy Banker icon with the Fat Black Welfare Queen as the cause of America's ecomomic woes, their ownership or control of most of the other shareholders, (JP Morgan was Rothschilds direct representative, they are allied with Kuhn Loeb through marriage, etc.) gives them effective control of the Fed and therefore control of everything and everyone in the US that depends on money to survive!
Among the Feds biggest depredations, prior to the current one, was the stealing of the entire gold stores of the US in 1933, when they "Bought" over 200 Million oz of gold, which had been confiscated by Roosevelt, for $11 Billion, which they "created" out of thin air, just for this purpose: "Roosevelt ordered the people to give their gold to private interests- that is, to banks, and he took control of the banks so that all the gold and gold values in them, or given into them, might be handed over to the predatory International Bankers who own and control the Fed. "
Of course, the First Great Depression was their handiwork also, as Ron Paul alludes to above.
I urge you, for the good of yourself and the Nation to follow up on this information. Google Louis T McFadden and Eustace Mullins. If we are to take back our country, it is going to have to be a massive grassroots effort and time is of the essence!
"Madame Speaker, I rise to introduce legislation to restore financial stability to America's economy by abolishing the Federal Reserve. Since the creation of the Federal Reserve, middle and working-class Americans have been victimized by a boom-and-bust monetary policy."
You can read the rest of Paul's statement before Congress here:
http://news.goldseek.com/RonPaul/1233818100.php
Apparently, the news was not significant enough to be carried on the Main Stream Media.
This is Explosive! The last Congressman who called for the end of the Federal Reserve, after 3 attempts, was killed! His name is Louis T. McFadden, a Republican from Pennsylvania. He was actually not only a Congressman, he was also the Chairman House Banking and Currency Committee.
You can read his 25 minute Congressional tirade against the Fed in the Congressional Record, pages 12595-12603 or Google it.
As you have seen throughout my writings on this Blog and elsewhere, The Fed, which is as Federal as FedEx, is a Private Bank and was behind the various booms and busts we have suffered through since it was created on the night before Christmas eve, 1913 when only the conspirators were present in Congress. They had sent everyone else home for the holidays, assuring them that a vote would not be taken before 1914.
The owners of the Fed are the richest and most powerful men on the planet, International Bankers, led by the Rothschilds.
The Patriarch of the clan is now Lord Alfred Rothschild of the UK. Look up "The Creature From Jekyl Island" the story of the "Hatching" of the Federal Reserve Plot. It is scarier than anything that Steven King ever imagined, because it it TRUE!
I know it is hard to believe and I am not going to go into detail in this posting, but these people own the banks that own the Fed. Look at this, courtesy of Eustace Mullins, "Secrets of the Federal Reserve" which every American needs to read:
The shareholders of these banks which own the stock of the Federal Reserve Bank of New York are the people who have controlled our political and economic destinies since 1914. They are the Rothschilds, of Europe, Lazard Freres (Eugene Meyer), Kuhn Loeb Company, Warburg Company, Lehman Brothers, Goldman Sachs, the Rockefeller family, and the J.P. Morgan interests. These interests have merged and consolidated in recent years, so that the control is much more concentrated. National Bank of Commerce is now Morgan Guaranty Trust Company. Lehman Brothers has merged with Kuhn, Loeb Company, First National Bank has merged with the National City Bank, and in the other eleven Federal Reserve Districts, these same shareholders indirectly own or control shares in those banks, with the other shares owned by the leading families in those areas who own or control the principal industries in these regions.
The Kingpin of this group is the Rothschilds, who own or control an empire, including until recently, The Bank of England; Reuters and the Associated Press, of over a reputed $500 Trillion Dollars. Although the Rothschilds are not now a household word, having successfully replaced the Fat, Greedy Banker icon with the Fat Black Welfare Queen as the cause of America's ecomomic woes, their ownership or control of most of the other shareholders, (JP Morgan was Rothschilds direct representative, they are allied with Kuhn Loeb through marriage, etc.) gives them effective control of the Fed and therefore control of everything and everyone in the US that depends on money to survive!
Among the Feds biggest depredations, prior to the current one, was the stealing of the entire gold stores of the US in 1933, when they "Bought" over 200 Million oz of gold, which had been confiscated by Roosevelt, for $11 Billion, which they "created" out of thin air, just for this purpose: "Roosevelt ordered the people to give their gold to private interests- that is, to banks, and he took control of the banks so that all the gold and gold values in them, or given into them, might be handed over to the predatory International Bankers who own and control the Fed. "
Of course, the First Great Depression was their handiwork also, as Ron Paul alludes to above.
I urge you, for the good of yourself and the Nation to follow up on this information. Google Louis T McFadden and Eustace Mullins. If we are to take back our country, it is going to have to be a massive grassroots effort and time is of the essence!
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