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Showing posts from September 27, 2009

Was the Financial Crisis a Fall or a Push?

http://www.webofdebt.com/articles/economic9-11.php ECONOMIC 9-11: DID LEHMAN BROTHERS FALL OR WAS IT PUSHED? Ellen Brown, September 7th, 2009 A year after the bankruptcy of Lehman Brothers on September 15, 2008, questions still swirl around its collapse. Lawrence MacDonald, whose book A Colossal Failure of Common Sense came out in July 2009, maintains that the bank was not in substantially worse shape than other major Wall Street banks. He says Lehman was just “put to sleep. They put the pillow over the face of Lehman Brothers and they put her to sleep.” The question is, why? The Lehman bankruptcy is widely considered to be the watershed event that changed the rules of the game for those Wall Street banks considered “too big to fail.” The bankruptcy option was ruled out once and for all. The taxpayers would have to keep throwing money at the banks, no matter how corrupt, ill-managed or undeserving. As Dean Baker noted in April 2009: “Geithner has supposedly ruled out the bankrupt

How can China’s stimulus plan be working so well, when ours is barely working at all?

http://www.webofdebt.com/articles/secret_of_china.php THE SECRET OF CHINA’S MIRACLE ECONOMY: THE GOVERNMENT OWNS THE BANKS RATHER THAN THE REVERSE Ellen Brown, August 17th, 2009 www.webofdebt.com/articles/secret_of_china.php “The banks -- hard to believe in a time when we’re facing a banking crisis that many of the banks created -- are still the most powerful lobby on Capitol Hill. They frankly own the place.” -- U.S. Senator Dick Durbin, Democratic Party Whip, April 30, 2009 While the U.S. spends trillions of dollars to bail out its banking system, leaving its economy to languish, China is being called a “miracle economy” that has decoupled from the rest of the world. As the rest of the world sinks into the worst recession since the 1930s, China has maintained a phenomenal 8% annual growth rate. Those are the reports, but commentators are dubious. They ask how that growth is possible, when other countries relying heavily on exports have suffered major downturns and remain in the