The Federal Deposit Insurance Corp. seized Washington Mutual Inc. (also known as WaMu bank) on September 25, and then brokered an emergency sale of the firm’s banking assets to JPMorgan Chase & Co. for $1.9 billion. As a thrift bank, WaMu’s business was focused mainly on taking deposits and originating home mortgages.
As the deepening financial crisis worsened yesterday, the Federal Reserve sought socialism as a cure and gobbled up another formerly private entity, the huge American International Group (AIG) insurance company, in an $85 billion bailout. The move was undertaken to prevent the bankruptcy of the nation's largest insurance company in what would have been, according to Bloomberg.com, "the worst financial collapse in history."
On Monday, September 15, Lehman Brothers Holdings, Inc., long a cornerstone of the Wall Street banking establishment, filed for Chapter 11 protection with the United States Bankruptcy Court for the Southern District of New York.
For decades, the health of General Motors has been equated, rhetorically at least, with the health of the U.S. economy. In the early 1950's when the company had more employees than the combined populations of Delaware and Nevada, GM President Charlie Wilson remarked, in a closed congressional hearing: "For years I thought what was good for our country was good for General Motors and vice versa. The difference did not exist. Our company is too big. It goes with the welfare of the country."
In June 2000 global-warming prophesier Ross Gelbspan lamented, “Over the last seven years, the fossil-fuel lobby has mounted an extremely effective campaign of disinformation to persuade the public and policymakers that the issue of atmospheric warming is still stuck in the limbo of scientific uncertainty. That campaign for the longest time targeted the science. It then misrepresented the economics. And most recently it attacked the diplomatic foundations of the climate convention. And it has been extraordinarily successful in creating a relentless drumbeat of doubt in the public mind.”
If even a stopped clock can tell the right time twice a day, Iranian President Mahmoud Ahmadinejad, the leader of the world’s fourth-largest oil exporter, just might have given the world a rational partial explanation for high oil prices recently. Speaking at a June 17 OPEC meeting held in the Iranian city of Isfahan, Ahmadinejad charged: “Certain hands, for political and economic ends, are controlling the price in an artificial manner.”
Think you’ve got it tough? Spending up to $80 bucks to fill your tank with gasoline?
The following testimony given by W. Herbert Hunt was presented on May 2, 1980 before a House subcommittee probing the rise and fall of silver prices, amid allegations that the Hunt family had conspired to corner the silver market. As a result of the falling price of silver and other factors, however, the Hunts lost more than $1 billion in the silver market.