Wednesday, December 12, 2018

BANKSTERS PREPARE FOR THE NEXT ECONOMIC MELTDOWN ...... That they caused!


Most U.S. Financial Officers Think a Recession Will Hit by 2020



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Nearly half of U.S. chief financial officers expect the U.S. economy will fall into a recession in 2019.

The recession expectations cap a dramatic turn around of CFO optimism, according to the Duke University/CFO Global Business Outlook survey released Wednesday.
As recently as September, CFOs were forecasting earnings growth of 12.8 percent over the next year. In the most recent survey, forecast earnings growth crashed to just 4.5 percent. A year ago, the forecast was for 5.3 percent.



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Expectations for capital spending have also fallen. The median expectation is just a 2 percent increase, down from 5.0 percent in September and 3.2 percent a year ago. The forecast for R&D spending fell to 1.4 percent growth from 3.2 percent a year ago.
In addition, more than 80% think a recession will strike by the end of 2020.
Despite their pessimism, U.S. CFOs are more positive than their counterparts around the world. In Africa, 97 percent of CFOs believe that a recession will have begun no later than year-end 2019. In Canada, 86 percent expect a recession next year. In Europe, 66.7 percent. In Asia, 54 percent.  Only Latin America was more optimistic than the U.S., with 42 percent of CFOs expecting a recession in 2019.
The labor market still tops the worries of U.S. CFOs. More than 46% listed it as a top concern this quarter, a decline from 53% in the previous survey. Government policies ranked as the second highest concern.
The bleak outlook stands in stark contrast to what is indicated by current economic data and the forecast of the Federal Reserve. Both manufacturing and services sectors have been strong, inflation is tame, and employment continues to rise.
One concern is that the expectations of CFOs could become a self-fulfilling prophecy if businesses pull back from investing, hiring, and spending in anticipation of an economic slump.


WILL WALL STREET’S BIG BANKS FINISH OFF AMERICA?
ANOTHER MASSIVE BAILOUT IS LOOMING!


"Back during he the financial crisis of 2008 to 2009, which wiped out trillions of dollars of the wealth and retirement savings of middle-class families, we put the two major arsonists in charge of putting out the fire. Former Democratic Sen. Chris Dodd of Connecticut and former Democratic Rep. Barney Frank of Massachusetts were the co-sponsors of the infamous Dodd-Frank regulations. Readers will recall that good old Barney resisted every attempt to reign in Fannie Mae and Freddie Mac and said he wanted to "roll the dice" on the housing market. That worked out well"

"Wall Street billionaires are pushing a new plan to swipe the profits of Fannie Mae and Freddie Mac from U.S. taxpayers–and in the process revive the system of privatized-profits and public-risk that contributed to the severity of the Great Financial Crisis."

Housing Policy Experts Warn Against Hedge Fund Plot to Seize Fannie Mae and Freddie Mac



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A plan to release Fannie Mae and Freddie Mac from government control would recreate the system that delivered private gains to shareholders while putting taxpayers on the line for losses, a group of leading housing policy experts warned Tuesday.

Hedge funds have been shopping a scheme on Capitol Hill that would end the conservatorships of Fannie and Freddie and have them stop handing their profits over to the Treasury. The plan would deliver a huge windfall to investors who own stakes in the two mortgage giants.
While some of inside of the Trump administration are sympathetic to the Wall Street billionaires who would be the biggest beneficiaries of releasing Fannie and Freddie, the plan has run into opposition from housing policy experts on the left and the right who see it as a huge giveaway to the investors.
Breitbart described the plan, developed by the investment bank Moelis & Co, in November:
The Moelis plan stands out as a strikingly bold grab for control of the companies and their profits. It calls for the dividend payments to the Treasury to cease so that the companies can rebuild capital. Shockingly, it also calls for the cancellation of the senior preferred stock altogether–with no compensation for the past risk and future profits currently due to taxpayers. It is as if a company proposed to do a stock buyback by proposing to cancel its shares rather than purchasing them for cash.
This would be an unprecedented giveaway, more akin to government-authorized looting than a “housing finance reform” plan. Even calling it “corporate welfare” would be too generous because the beneficiaries wouldn’t be the companies, which have been prospering under the current arrangement. The beneficiaries would be the owners of the shares of the company, which would receive a massive promotion in the capital structure in exchange for nothing. This is something new–hedge fund welfare.
Taxpayers would surrender an asset–the senior preferred stock–that is expected to return hundreds of billions of dollars, reducing deficits and tax-burdens, over the next decade. And in return they would get nothing except perhaps the gratitude of billionaires.
On Tuesday, some of the most prominent housing policy experts in the U.S. came out against the plan in an op-ed published in the Hill.
Taking advantage of this congressional impasse, several of Fannie and Freddie’s largest investors have banded together to advocate a path out of this state of limbo. Remarkably, however, the path does not lead to a new system as policymakers had intended, but back to the very system we had before the crisis. Yes, the one that nearly took down the economy.
To their credit, the investors recommend retaining some of the reforms that have taken place in conservatorship, such as limits on what Fannie and Freddie can invest in, and higher capital levels. But they would leave untouched the fundamental structural flaw that was the system’s ultimate undoing: the dominance of a duopoly that is too big and too important for the nation ever to let fail.
This makes sense from the investors’ point of view, as Fannie and Freddie’s market power will bring them more profits. But it is absurd from the nation’s point of view.
By once again standing behind the solvency of these two institutions, which taxpayers would have to do for the very reasons we could not let them fail the last time around, we would again give Fannie and Freddie the incentive to take outsized risks.
The op-ed was written by six housing policy experts representing a broad range of political views. They are the former head of Fannie and Freddie’s regulator, Ed DeMarco, the former chief of the Mortgage Banker’s Association, Dave Stevens, Moody’s chief economist Mark Zandi, former McCain campaign economic adviser Doug Holtz-Eakin, Obama administration housing policy adviser Jim Parrott, and Lew Ranieri, the man who is often described as the father of the modern mortgage market.
President Donald Trump is reportedly planning to nominate Mark Calabria to head up the Federal Housing Finance Agency. Calabria, who is currently Vice President Mike Pence’s chief economist, has been sharply critical of the government’s large role in housing finance and the dominance of Fannie and Freddie in the mortgage market.  His position on the Moelis plan is not currently known but it is likely to become a focus of his nomination hearing if he gets tapped to be the agency’s head.



THE BANKSTERS’ RENT BOYS & GIRLS IN CONGRESS GATHER ROUND TO UNLEASH THE WHOLESALE LOOTING OF THEIR BANKSTER PAYMASTERS EVEN MORE….
BOTTOMLESS BAILOUTS AROUND THE CORNER WAITING!

After eight years of the Dodd-Frank bank “reform,” the American financial oligarchy exercises its dictatorship over society and the government more firmly than ever. This unaccountable elite will not tolerate even the most minimal limits on its ability to plunder the economy for its own personal gain.
"Democrats Move Towards ‘Oligarchical Socialism,’ Says Forecaster Joel Kotkin."

NO POL IN HISTORY SUCKED IN MORE BRIBES FROM BANKSTERS THAN BARACK OBAMA, AND HE DID IT BEFORE HIS FIRST DAY IN OFFICE.
What did the Wall Street banksters know that took us so long to find out???


"One of the premier institutions of big business, JP Morgan Chase, issued an internal report on the eve of the 10th anniversary of the 2008 crash, which warned that another “great liquidity crisis” was possible, and that a government bailout on the scale of that effected by Bush and Obama will produce social unrest, “in light of the potential impact of central bank actions in driving inequality between asset owners and labor."  

 Obama, of course, covered up his own role, depicting his presidency as eight years of heroic efforts to repair the damage caused by the 2008 financial crash. At the end of those eight years, however, Wall Street and the financial oligarchy were fully recovered, enjoying record wealth, while working people were poorer than before, a widening social chasm that made possible the election of the billionaire con man and Demagogue in November 2016.

“The response of the administration was to rush to 

the defense of the banks. Even before coming to 

power, Obama expressed his 

unconditional support for the bailouts, which he 

subsequently expanded. He assembled an 

administration dominated by the interests of 

finance capital, symbolized by economic adviser 

Lawrence Summers and Treasury Secretary 

Timothy Geithner.” BOTH OF OBAMA'S A.G.  

WERE LAWYERS FOR BANKSTERS.

BEL AIR MAXINE WATERS AND HER CRACK ALLEY CONSTITUENTS

WALL STREET BANKSTERS AND THEIR BOUGHT DEMOCRAT POLS PREPARE FOR THE NEXT WAVE OF BOTTOMLESS NO-STRING BANKSTER BAILOUTS…

Will this one finish off the American economy?
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Considering her record and documented history of poor ethical and moral fitness, it’s outrageous that Maxine Waters is up for chair of the ultra-powerful House Financial Services Committee, which has jurisdiction over the country’s banking system, economy, housing, and insurance.
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"Wall Street billionaires are pushing a new plan to swipe the profits of Fannie Mae and Freddie Mac from U.S. taxpayers–and in the process revive the system of privatized-profits and public-risk that contributed to the severity of the Great Financial Crisis."
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The Moelis plan stands out as a strikingly bold grab for control of the companies and their profits. It calls for the dividend payments to the Treasury to cease so that the companies can rebuild capital. Shockingly, it also calls for the cancellation of the senior preferred stock altogether–with no compensation for the past risk and future profits currently due to taxpayers. It is as if a company proposed to do a stock buyback by proposing to cancel its shares rather than purchasing them for cash.
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So will Maxine Waters be the crusading financial protector of our 401k plans and save America from the next financial bubble? Well, there will certainly be lots of harassment and shakedowns. But don't count on her steering us clear of Wall Street excesses. If history is any guide, Mad Maxine will be way too busy raising money from the people she is now in charge of regulating. Stephen Moore is a senior fellow at The Heritage Foundation 
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Waters, who represents some of Los Angeles’ poorest inner-city neighborhoods, has also helped family members make more than $1 million through business ventures with companies and causes that she has helped, according to her hometown newspaper. While she and her relatives get richer (she lives in a $4.5 million Los Angeles mansion), her constituents get poorer. JUDICIAL WATCH

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