Sunday, July 27, 2008

The IndyMac Bank Bailout-Federal Reserve "Hush Money"

Article: The IndyMac Bank Bailout-Federal Reserve "Hush Money"

The article states: "The $4 billion that the FDIC will pay to a handful of depositors at IndyMac is hush money. It is paid to them to silence every other depositor in the country. "Don’t spread rumors about any insolvent bank." Why not? "Because, in a fractionally reserved system, all of them are technically insolvent." They are all borrowed short and lent long....." To read rest of article go to:

My Comments

Mr North's article points out/explains why the IndyMac bank failed ,and the inherent problems of the US banking system in general, which is good ,as far as it goes. That inherent instability is something you need to be aware of, in my opinion.

Mr North's + Others Predictions vs Your Own, and Suggested Protections

However, whether you believe the entire US banking system is headed for imminent collapse or not, [ Mr North does not] , or, like Mr North you believe that _more _ banks will fail in the near future, possibly including your own, I would like to say that as a financial safety advisor I know of several simple ways of protecting yourself against either events, without any drastic changes in either your lifestyle or in you banking habits, and without relying on dubious FDIC "insurance" either.

Good News:

Briefly, I can show you how to protect yourself against either a total or partial banking system collapse , so that in the future you do not have to worried about the accuracy or inaccuracy of Mr North's or others predictions of impending doom, or of general prosperity.

Bad News:

This information is not cheap, that is unless you value safety _and_ piece of mind!

Mr North's Other Predictions

Outside of banking system issues, Mr North makes 2 other main predictions:

[1] that inflation [i.e. a continued decline in the per unit purchasing power of the US $] will continue: "This could be a year away. This could be a month away. All we know is this: when the Federal Reserve system runs out of Treasury debt to sell, its purchase of all assets will be inflationary. The banking system as a whole is protected. What is not protected is the purchasing power of the dollar. .."

[2] Higher Interest Rates :

"What is likely in a scenario of failing banks is the increasing loss of public confidence in the private capital markets. When that happens, the rush to buy Treasury debt, which means the rush to hand over our economic future is to the United States Congress, will lead to the de-capitalization of the private companies that increase our standard of living..."

So he is saying that there will be a flight to short term government debt [i.e 90 T-bills] and a flight _from_ privately issued debt instruments, [corporate bonds etc], which will put an upward pressure on interest rates as businesses compete with the government and other businesses , by offering higher rates of return than their competitors [i.e. at the extreme: "junk" bond offerings] :

My Predictions.

I don't make predictions about the certainty or uncertainty of future economic events, whether they be for inflation,deflation, bank crisis or economic booms ahead, simply because I do not believe that I, or anyone else, including Mr North, can accurately forecast these or other events with any consistency.

FACT: Do not fool yourself. It is impossible to predict either future inflation, or deflation, or anything else, for any market, ever. Don't even try- unless you are gambling with money you can afford to lose. But for long term savings- forget it. And don't be foolish enough to believe any "advisor" or "economic forecaster" either, when it comes to betting with money you cannot afford to lose!

To do so is to be suffering under delusions of grandeur, as far as I'm concerned, or you are choosing to be lulled into a false sense of security regarding some "experts" supposed infallible prediction record.

In Mr North's particular case , as far as I can see his attraction to the field of economic forecasting is also the direct result of fatal misunderstandings or ignorance of certain principles of both general Austrian Human Action theory and of Austrian economic and monetary theory in particular, as I understand them, and of which, like myself he is a supposedly a student of.

[ I _will_ predict that, based both on his past record of so doing, and on his general psychology/belief system, Mr North will continue to make predictions like these .]

Your Choice

So if you freely choose to believe Mr North, or someone else's predictions for banks, the economy, inflation or for anything else, bet with money you can afford to lose, should you be lucky enough to have any.

The Big Secret-Simple, General Protection From Mr North's and Others Gloomy [or Sunny]Predictions is Available For You!.


The big secret that investment advisors do not want you to know is that it is not necessary to have to predict _any_future economic events in order for your long-term savings to safely grow. You do not have make predictions yourself, nor do you need rely on the supposed forecasting abilities of any "investment advisor" ever again!

Simple,Self- Managed, Self- Insured Protection For Your Money

I can show you a simple, self-managed, self-insured protection plan with a 30 year + established success record, for your savings to be made safe from these types of supposed impending financial catastrophe, and from others unseen at this time, allowing you more free time to persue activities you really enjoy,[eg movies, reading, sex, fishing etc.] and removing the time and worry of the impossible, never ending game of "what is happening and what is going to happen to the economy, and how will it effect me according to Mr. so and so" .

Bad News: as I mentioned with regard to banking protection information:"this information is not cheap, that is unless you value safety _and_ piece of mind!

So if you believe more free time and a lot less worrying about the future of your bank or of the economy are items worth having, contact me via the comments section of this blog, or e-mail me at : and leave me your e-mail address so that I may get back into you ASAP.

100% Money back guarantee on all services offered!

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