Was financial meltdown the result of economic terrorism?

posted at 1:36 pm on March 1, 2011 by Ed Morrissey

Pajamas Media gives an exclusive look at an analysis prepared for the Department of Defense’s Irregular Warfare Support Program (IWSP) by Cross Consulting and Services in 2009 that alleges that the economic meltdown in 2008 was no accident.  Kevin Freeman argued that a run-up of speculation by sovereign-wealth funds created a bubble in the oil industry that allowed bear raids on American financial institutions, using credit swaps and other non-regulated investment instruments to crash the US financial system.  Bill Gertz reported on the analysis today for the Washington Times:

Evidence outlined in a Pentagon contractor report suggests that financial subversion carried out by unknown parties, such as terrorists or hostile nations, contributed to the 2008 economic crash by covertly using vulnerabilities in the U.S. financial system.

The unclassified 2009 report “Economic Warfare: Risks and Responses” by financial analyst Kevin D. Freeman, a copy of which was obtained by The Washington Times, states that “a three-phased attack was planned and is in the process against the United States economy.”

While economic analysts and a final report from the federal government’s Financial Crisis Inquiry Commission blame the crash on such economic factors as high-risk mortgage lending practices and poor federal regulation and supervision, the Pentagon contractor adds a new element: “outside forces,” a factor the commission did not examine.

“There is sufficient justification to question whether outside forces triggered, capitalized upon or magnified the economic difficulties of 2008,” the report says, explaining that those domestic economic factors would have caused a “normal downturn” but not the “near collapse” of the global economic system that took place.

The report warns that an attack on the American financial system could have taken place in two phases — and that a third phase may be ready to launch:

The first phase was a speculative run-up in oil prices that generated as muchas $2 trillion of excess wealth for oil-producing nations, filling the coffers of Sovereign Wealth Funds, especially those that follow Shariah CompliantFinance. This phase appears to have begun in 2007 and lasted through June 2008.

The rapid run-up in oil prices made the value of OPEC oil in the ground roughly$137 trillion (based on $125/barrel oil) virtually equal to the value of all other world financial assets, including every share of stock, every bond, every private company, all government and corporate debt, and the entire world‘s bank deposits. That means that the proven OPEC reserves were valued at almost three times the total market capitalization of every company on the planet traded in all27 global stock markets.

The second phase appears to have begun in 2008 with a series of bear raids targeting U.S. financial services firms that appeared to be systemically significant. An initial bear raid against Bear Stearns was successful in forcing the firm to near bankruptcy. It was acquired by JP Morgan Chase and the systemic risk was averted briefly. Similar bear raids were conducted against various other firms during the summer, each ending in an acquisition. The attacks continued until the outright failure of Lehman Brothers in mid-September. This created a system-wide crisis, caused the collapse of the credit markets, and nearly collapsed the global financial system. The bear raids were perpetrated by naked short selling and manipulation of credit default swaps, both of which were virtually unregulated. The short selling was actually enhanced by recent regulatory changes including rescission of the uptick rule and loopholes such as ―the Madoff exemption.

While substantial, unusual trading activity can be identified, the source of the bear raids has not been traceable to date due to serious transparency gaps for hedge funds, trading pools, sponsored access, and sovereign wealth funds. What can be demonstrated, however, is that two relatively small broker dealers emerged virtually overnight to trade―trillions of dollars worth of U.S. blue chip companies. They are the number one traders in all financial companies that collapsed or are now financially supported by the U.S. government. Trading by the firms has grown exponentially while the markets have lost trillions of dollars in value.

The risk of a Phase Three has quickly emerged, suggesting a potential direct economic attack on the U.S. Treasury and U.S. dollar.
Such an event has already been discussed by finance ministers in major emerging market nations such as China and Russia as well as Iran and the Arab states. A focused effort to collapse the dollar by dumping Treasury bonds has grave implications including the possibility of a downgrading of U.S. debt forcing rapidly rising interest rates and a collapse of the American economy. In short, a bear raid against the U.S.financial system remains possible and may even be likely.

Freeman pointed to the seizure of $134 billion in counterfeit US bonds as a potential clue as valuable as the Japanese intercepts prior to Pearl Harbor.  His report calls the chain of events “the equivalent of box cutters on an airplane.”  But does this theory hold water?

First, Freeman issued this warning in June 2009, when the US had just managed to get back on its feet after the financial collapse.  The US sunk hundreds of billions of dollars into shoring up American financial institutions through the end of 2008 and beginning of 2009 under both George Bush and Barack Obama.  The time to strike in Freeman’s model of Phase 3 would have been at that point, when the US needed Treasury sales to rescue the banking and investment communities.  While we have piled up even more debt and find ourselves lurking towards a Greece-like crisis, the short-term instability has mainly dissipated.  Furthermore, the nations Freeman cited are no less hostile to American interests than they were in 2008.  So if this was the plan all along, why no Phase 3?

Furthermore, one of those nations — China — has extensive holdings in the US. While it’s certainly possible that the Chinese autocracy might be so hostile to the US as to risk destabilizing their own country to bring down the American economy, it hardly seems likely.  China’s government has no love for the US, but does have a love of economic success.  They have even introduced capitalism back into their economy over the last several years (in a limited fashion) to improve their economic performance and prevent full-scale uprisings as seen in the Arab world this year.  China’s rulers may be brutal, but they’re rational and rather predictable, too.  Russia has enough problems in its own economy and hardly has the resources to conduct an economic war against the US, and their rivalries are mainly with Europe.  Iran has every incentive in the world to attack the American economy, but few allies to join them in that region — and the Saudis would prefer to unseat the mullahs in Tehran rather than destroy the US economy that both feeds and protects them.

The report is very useful in underscoring the potential vulnerabilities in our system, especially in relation to sovereign-wealth funds, and should get attention from policymakers in protecting the US from financial wars.  However, just because something is possible doesn’t mean it happened.


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OFA?

Vashta.Nerada on March 1, 2011 at 1:38 PM

Maybe the soon to be American Ayatollah can shed some light on this on Thursday (3/3) when he comes to claim America for Sharia law.

http://shariah4america.com/Shariah/DEMONSTRATION-OUTSIDE-WHITE-HOUSE.html

Maybe his mutual funds are Sharia compliant? Maybe THAT is the Economic terror planned for us.

PappyD61 on March 1, 2011 at 1:38 PM

George Soros.

Knucklehead on March 1, 2011 at 1:39 PM

“…enemies foreign or domestic…”

Cui bono?

Akzed on March 1, 2011 at 1:39 PM

The first phase was a speculative run-up in oil prices that generated as muchas $2 trillion of excess wealth for oil-producing nations, filling the coffers of Sovereign Wealth Funds, especially those that follow Shariah CompliantFinance. This phase appears to have begun in 2007 and lasted through June 2008.

NO NO NO NO NO.

That was all because of Bush and his oil buddies. Duhhh, everyone knows that.

angryed on March 1, 2011 at 1:40 PM

Terrorist named Soros in support of “the won”, his favorite candidate. Why? Cuz Obozo is doing what Soros has wanted forever, bringing the USA down!

Webrider on March 1, 2011 at 1:40 PM

No one expects the Spanish Economic Inquisition!

LincolntheHun on March 1, 2011 at 1:41 PM

George Soros.

Knucklehead on March 1, 2011 at 1:39 PM

My thoughts exactly.

sandee on March 1, 2011 at 1:41 PM

I remember the talk about some unusual trading activity that was taking place at the time of the crash, but no one ever had much to say about it. I have always wondered if there weren’t some off shore shananigans being played.

bopbottle on March 1, 2011 at 1:41 PM

Can’t be W fault

cmsinaz on March 1, 2011 at 1:41 PM

George Soros.

Knucklehead on March 1, 2011 at 1:39 PM

Yup.

Rational Thought on March 1, 2011 at 1:41 PM

Whatever it was, it was certainly timed to the utmost PERFECTION.

Schadenfreude on March 1, 2011 at 1:41 PM

Phase Four, The Nightmare Scenario: Obama gets re-elected.

JammieWearingFool on March 1, 2011 at 1:41 PM

George Soros.

Knucklehead on March 1, 2011 at 1:39 PM

Quoted several times in the report….as an information source.

cthulhu on March 1, 2011 at 1:42 PM

Rep Kanjorski $550 Billion Disappeared in ‘Electronic Run On the Banks’

Interesting part starts around 2:20

flyfisher on March 1, 2011 at 1:42 PM

This time , it actually was an inside job.The banks did it, with the help of the government.

the_nile on March 1, 2011 at 1:43 PM

Problem: step 1 was an aggregate thing, with the US government pretty much setting it up.

Count to 10 on March 1, 2011 at 1:43 PM

Apparently a documentary won an Oscar about the financial meltdown….coincidence?

cmsinaz on March 1, 2011 at 1:43 PM

Greenspan has been pretty unscathed. This is one of the most undocumented travesties.

Schadenfreude on March 1, 2011 at 1:43 PM

This is all BS.

First off there was no financial meltdown. There was a market correction that was long overdue.

Second, the reason for the correction was 5 years of housing bubble.

You can’t really blame the Arabs and Soros for profiteering off of the correction. I profited as well. Didn’t take a PhD in finance to see that Dow at 13.5K in late 2007 was ripe for a 30%+ correction.

angryed on March 1, 2011 at 1:43 PM

Destruction of the Dollar? Offshore, untracable hedge funds?

This is Soros’ SOP, like when he nearly crushed the pound back in the day; an act that he also made a ton of jack on…

RocketmanBob on March 1, 2011 at 1:45 PM

Definitely Soros.

Del Dolemonte on March 1, 2011 at 1:45 PM

probably rhymes with forged Oreos

joeindc44 on March 1, 2011 at 1:46 PM

Just reread Clancy’s Debt of Honor last week, ironically.

I’m skeptical that this was done in a well-coordinated fashion, but it’s not impossible by any means.

Prufrock on March 1, 2011 at 1:46 PM

What can be demonstrated, however, is that two relatively small broker dealers emerged virtually overnight to trade–trillions of dollars worth of U.S. blue chip companies.

Which two broker dealers?

Are they named?

The time to strike in Freeman’s model of Phase 3 would have been at that point, when the US needed Treasury sales to rescue the banking and investment communities. While we have piled up even more debt and find ourselves lurking towards a Greece-like crisis, the short-term instability has mainly dissipated. Furthermore, the nations Freeman cited are no less hostile to American interests than they were in 2008. So if this was the plan all along, why no Phase 3?

That would depend on the identity of the one doing the destabilizing wouldn’t it? If in fact it was China perhaps they want time to bail out first. If it was a domestic American group then perhaps they have further plans to profit from the chaos and an immediate collapse wasn’t in their interest.

sharrukin on March 1, 2011 at 1:46 PM

How about Republicans have caved to stupid progressive ideas since the Wilson administration and it caught up with us?

Again.

pugwriter on March 1, 2011 at 1:47 PM

While substantial, unusual trading activity can be identified, the source of the bear raids has not been traceable to date due to serious transparency gaps for hedge funds, trading pools, sponsored access, and sovereign wealth funds. What can be demonstrated, however, is that two relatively small broker dealers emerged virtually overnight to trade―trillions of dollars worth of U.S. blue chip companies. They are the number one traders in all financial companies that collapsed or are now financially supported by the U.S. government. Trading by the firms has grown exponentially while the markets have lost trillions of dollars in value.

Soros

Sekhmet on March 1, 2011 at 1:48 PM

I’m assuming Freeman is an Alex Jones fan?

He wants to claim bear raids as the downfall of the financial giants, but then turns around and says there are no traces of collusion, but that’s because of unregulated transactions.

The only collusion that contributed to the economic collapse was done by our very own United States government. And there is ample evidence to prove it. One needs to look no further than the Community Reinvestment Act and Freddie and Fannie.

ButterflyDragon on March 1, 2011 at 1:51 PM

Apparently a documentary won an Oscar about the financial meltdown….coincidence?

cmsinaz on March 1, 2011 at 1:43 PM

It’s slanted left , but it’s kinda good documentary.No love for obama in there.

the_nile on March 1, 2011 at 1:51 PM

You mean like when things weren’t as bad as they would get but one of the presidential candidates kept constantly talking about The Worst Economy Ever in every single interview until it was on all the TV stations, in all the papers, and floating around in citizens’ heads until it was guaranteed to happen?
 
Yeah, I’d agree that all those doom/gloom speeches probably didn’t help.

rogerb on March 1, 2011 at 1:52 PM

I agree. And the terrorists names were Alan Greenspan and Ben Bernake.

bingsha on March 1, 2011 at 1:52 PM

Before the financial crisis hit, McCain & Palin were ahead in the polls. Unnamed sources (like SOROS) could/did? change the voting so that we got stuck w/ Obama the incompetent or Obama the intentional. Take your pick.
Let the truth prevail as this is investigated.

3dpuzzman on March 1, 2011 at 1:53 PM

This is why unfettered capitalism cannot be trusted. If individuals are allowed to have their own wealth, it’ll bring down America.

/devil’s advocate

jdpaz on March 1, 2011 at 1:53 PM

I don’t buy it, and as it seems the prescription is more govt. oversight/regulation, I’m highly skeptical of the source.

Aquateen Hungerforce on March 1, 2011 at 1:54 PM

The Nile

Thanks, I saw a trailer and it showed soros and Frank and thought propaganda

cmsinaz on March 1, 2011 at 1:54 PM

While this new information may be a contributing cause, it is still a Red Herring. Our economic meltdown certainly was committed by terrorists but, by domestic ones.

We now know 27 MILLION loans were extorted from lenders by our government for the combined purposes of Redistribution of Wealth and ‘Racial Reparations’. – Is it possible to wrap our minds around how much 27 million loans are in dollars??

Whose Policies Led To The Credit Crisis? by Ed Morrissey
http://hotair.com/archives/2008/09/16/whose-policies-led-to-the-credit-crisis/?print=1

Video: Peter Wallison: Government Policy Caused Housing Crisis http://bit.ly/fHJFVZ

Why the Mortgage Crisis Happened By M. Jay Wells from American Thinker http://www.americanthinker.com/2008/10/what_really_happened_in_the_mo.html

Obama Owns Housing Bubble Crisis
http://www.liveleak.com/view?i=d48_1221756836

The Real Culprits In This Meltdown IBD: http://bit.ly/fI6Dxl

Gov’t Dems Caused Housing Crisis, Including Obama
http://conservablogs.com/bluecollarmuse/2008/09/26/govt-dems-caused-housing-crisis-including-obama/

CRA, ACORN, Democrats, Obama and the Housing Market Crisis http://conservablogs.com/bluecollarmuse/2008/09/27/cra-acorn-democrats-obama-and-the-housing-market-crisis/

House of Cards – Liberals Fueled Wall St. Woes http://www.nypost.com/seven/09242008/postopinion/opedcolumnists/house_of_cards_130479.htm

“Obama, ACORN, and the Financial Meltdown (Stanley Kurtz on Fox-video embed)”
http://www.darkskiesblog.com/2008/10/01/obamas-ties-to-acorn/

Winghunter on March 1, 2011 at 1:56 PM

George Soros.

Knucklehead on March 1, 2011 at 1:39 PM

The most evil man in the world today. There’s a special place in hell for him.

RustBelt on March 1, 2011 at 1:57 PM

Just reread Clancy’s Debt of Honor last week, ironically.

I’m skeptical that this was done in a well-coordinated fashion, but it’s not impossible by any means.

Prufrock on March 1, 2011 at 1:46 PM

Say what you will about the man or the extreme amount of detail in his books, but he’s made some predictions that ended up being fairly prescient.

teke184 on March 1, 2011 at 1:57 PM

Agreement on Soros yet there was considerable destruction originating within. Paulson, Bernanke, Dodd, Fwank, Franklin Raines culminating in the Fannie Mae / Freddie Mac crash, the shakedown of AIG, oil speculators manipulating oil prices and those overextended on financing mortgages on homes they couldn’t otherwise afford (in haste to get a low interest rate) finally feeling the pinch of being waaaaaay beyond their means financially.

viking01 on March 1, 2011 at 2:00 PM

This has the fingerprints of Soros all over it. It’s his MO. Short selling to create an economic catastrophy to bring down a countries economy and install his desired leaders. That this was an “October surprise” is no surprise. I’ve long felt this so called economic meltdown was manufactured to help Obama. And it worked. McCain’s idiotic suspension of his campaign put the final nail in his coffin.

And this so called third phase? Sounds like Soros is conjuring up his coup de gras to hit us while we are down and vulnerable thanks to his boy’s mismanagement by design of our economy. They will need to do this sometime in the next two years while this creep is still in office. I think they know that their time is running out. Please G-d help us get to 2012 so we can have a real pro American presidential team like Palin/West. Go to Organize4Palin.com

shmendrick on March 1, 2011 at 2:00 PM

Jenga Blocks.

Skandia Recluse on March 1, 2011 at 2:00 PM

A focused effort to collapse the dollar by dumping Treasury bonds has grave implications including the possibility of a downgrading of U.S. debt forcing rapidly rising interest rates and a collapse of the American economy.

Not to worry, the Federal Reserve is #1 holder of Treasuries now… Who runs the Federal Reserve ?

http://www.zerohedge.com/article/chinese-treasury-holdings-revised-268-billion-higher-112-trillion-fed-still-top-holder-us-de

Jeff2161 on March 1, 2011 at 2:01 PM

Meanwhile..Libya is falling apart as we type..

Dire Straits on March 1, 2011 at 2:01 PM

nah, it was boooosh. he was going to use it to trick us into invading uhhhhhhhhhhh Greece?

joeindc44 on March 1, 2011 at 2:02 PM

I’ve always believed that a certain leftist financial wiz, who has deep roots in the immoral shorting of the market, was at least partially behind the meltdown, in order to ensure Obama’s election.

paul1149 on March 1, 2011 at 2:02 PM

“Foreign influence is truly the Grecian horse to a republic. We cannot be too careful to exclude its influence.” -Alexander Hamilton, 1793

This includes people who claim to be American but are loyal to their own agenda’s that harm this country.

Speakup on March 1, 2011 at 2:03 PM

I suggested this when it happened and Ed, you said nah. I have never stopped believing it. Thing is, I don’t believe it was a foreign attack – unless one includes international leftist pals of Soros. I also believe certain U.S. Democrat Senators & Reps were involved. It got Obama elected.

Connie on March 1, 2011 at 2:04 PM

The first phase was a speculative run-up in oil prices that generated as muchas $2 trillion of excess wealth for oil-producing nations, filling the coffers of Sovereign Wealth Funds, especially those that follow Shariah CompliantFinance. This phase appears to have begun in 2007 and lasted through June 2008.

Proof that oil speculators are even more vile than I thought they were. Where are the speculator defenders NOW?

crushliberalism on March 1, 2011 at 2:05 PM

But I thought this was all Chimpy Bush McHitlers fault?

catmman on March 1, 2011 at 2:06 PM

I don’t buy it, and as it seems the prescription is more govt. oversight/regulation, I’m highly skeptical of the source.

Aquateen Hungerforce on March 1, 2011 at 1:54 PM

That was my initial reaction but the fact is we did away with some common sense rules such as limiting short-selling with the uptick rule. At a minimum we need more transparency in identifying the parties in financial transactions. That would do more to weed out financial evil-doers than would a whole host of government regulations.

halfastro on March 1, 2011 at 2:07 PM

S.O.R.O.S. as many observant friends have already stated.

Please watch this documentary called “Meltup”, it’s about 54 minutes but looks at the way we are monetizing the debt and what is happening right now. Also, those who have lived through economic collapse like Argentina’s are important for getting an idea of how we can survive our upcoming economic collapse. Even if we were taxed at 100% of our income it wouldn’t cover our debts.

NTWR on March 1, 2011 at 2:07 PM

Oy vey. So the Beck-bots are out today repeating the Spooky Dude’s name ad nauseam.

Here’s the deal. Whether you love a good James Bond villain or not, all such a critter can do is push over an incredibly unstable edifice. To blame the woodpecker for destroying a building is to ignore all the bad design and rot that made that building so weak that a small contribution from said pecker could have such a large result.

Our financial system was destroyed long before ol’ Spooky Dude or whoever came along by the liberal powers that were in government. They forced banks to loan to those who were bad risks, in the name of “fairness” and “social justice.” BTW, when I say liberal, I am not saying Democrat, because “compassionate Conservatives” like Bush had a large hand in perpetuating the scam. Despite the alarms which were many and loud our public servants in DC just kept on buying votes with the proceeds from selling off the key supports in our financial edifice. What regulation was in place was either not enforced by the porn-loving SEC watch dogs or did more harm than good (mark to market anyone?).

MJBrutus on March 1, 2011 at 2:11 PM

Phaze three was aborted in order to protect Obama, the real goal of the entire attack.

astonerii on March 1, 2011 at 2:11 PM

And here I thought it was Boooosh and the evil Big Oil. And Halliburton. And Cheney.

search4truth on March 1, 2011 at 2:12 PM

I have to agree posters, this has the stink of the progs favorite Nazi stooge George Soros all over it. I am also certain that he won’t be investigated before 2012, if then.

slickwillie2001 on March 1, 2011 at 2:13 PM

flyfisher on March 1, 2011 at 1:42 PM

I have been telling my friends about that video for years and wonder why it was never investigated.

booter on March 1, 2011 at 2:15 PM

As far as the sharia finance friendly angle goes, Mike Bloomberg has been heavily involved for quite awhile.

Bloomberg takes the lead in Financial Jihad

Bloomberg Releases Comprehensive Islamic Finance Platform

Pretty much explains his push for the Ground Zero Mosque, doesn’t it?

Connie on March 1, 2011 at 2:16 PM

Connie is right. Once a few people realize they have enough power to manipulate markets on a worldwide basis…they will. All for their own profit.

Surprised it took this long for a conspiracy theory to arise.

“We keep your money safe fromby prying eyes.”
Bank of Chiba prospectus

orbitalair on March 1, 2011 at 2:18 PM

Where is the evidence?

Markets have crashed before without any grand conspiracy. Unless you want to talk about the open conspiracy to devalue all fiat currencies since Bretton Woods.

Bill C on March 1, 2011 at 2:19 PM

Start saving 1981 and older copper pennies, and if you have any silver coins from pre-1965 keep those, too. Nickels are worth $.07 cents in metal right now. It’s a cheap way to hedge against potentially worthless paper without getting stuck with stuff you might not use.

NTWR on March 1, 2011 at 2:25 PM

MJBrutus on March 1, 2011 at 2:11 PM

Yes, the system was weak and collapsible. Cavuto was one who’d been sounding the alarm about the housing bubble for 2 years. All it needed was a woodpecker with motive. Beck isn’t the first person to point these things out. And it’s not the first time Soros has deliberately collapsed anything.

Connie on March 1, 2011 at 2:26 PM

it’s not collapsible. This just shows that if you leverage enough cash, you can make things quake and wobble.

joeindc44 on March 1, 2011 at 2:30 PM

Our financial system was destroyed long before ol’ Spooky Dude or whoever came along by the liberal powers that were in government. They forced banks to loan to those who were bad risks, in the name of “fairness” and “social justice.” BTW, when I say liberal, I am not saying Democrat, because “compassionate Conservatives” like Bush had a large hand in perpetuating the scam. Despite the alarms which were many and loud our public servants in DC just kept on buying votes with the proceeds from selling off the key supports in our financial edifice. What regulation was in place was either not enforced by the porn-loving SEC watch dogs or did more harm than good (mark to market anyone?).

MJBrutus on March 1, 2011 at 2:11 PM

Agreed. Soros is just the snot-nosed punk who likes to go to countries with house-of-cards financial systems and knock ‘em over. Our policies are what allow shady currency traders to attack.

NTWR on March 1, 2011 at 2:33 PM

No, the person committing the most mayhem on the US economy is Fed chair Ben Bernanke.
Right now, the spot price of Gold is $1429.09 an ounce and spot Silver is $34.42 an ounce.

Emperor Norton on March 1, 2011 at 2:36 PM

Ok, if phase 1 was to paint a target, and phase 2 was to wound the target, and phase 3 to destroy it, when would you do phase 3 if the target was slowly moving to a place you could do more destruction? If it’s our debt and financial weakness that makes us a good target to destroy, and the president you elect wants to increase that debt and weakness, why strike until you can do the greatest damage.

You list China, Russia, Iran and Saudi Arabia as the ones who might want to do this to us. Why limit it to them? George Soros has done this very kind of attack on a more limited scale to smaller economies and brought them to their knees. There are plenty of non-country individuals and groups out there that would love to economically blow us up, then see how rich and powerful they can get in the ensuing chaos.

Despite the wailing by liberals about corporate profits and bank greed, they are all only a half a billion here or there from panic and collapse. You don’t have to be a country to wield that kind of power directly or through hedge funds these days.

Sovereign funds, including China’s, ARE dumping the dollar.

If I was going to do phase 3, I’d do it when it looked like we are taking moves to become less of a target, not while we are still doing things to make us an easier target. If you get an elk to stick it’s head out from behind a tree, but it is still moving in a direction that will expose its whole body, you wait until you can see the whole body, but act before it gets to the next tree. Right now the libs and Obama are still exposing us.

PastorJon on March 1, 2011 at 2:41 PM

The Nile

Thanks, I saw a trailer and it showed soros and Frank and thought propaganda

cmsinaz on March 1, 2011 at 1:54 PM

That’s some of slanted parts, Frank doesn’t need to explain his part in the regulatory and corruptive failure , he’s portrayed as just an observer of the problems with no influence in how it evolved.

It’s critical of obama, how he picks the same wall street guys who’s been deeply involved in creating and profiting from the problems to try to fix the finance mess.

It shows the capture of the regulatory system, people switch jobs back and forth from banks to the institutions who’s supposed to regulate them.
And how academia too is in on the game.

the_nile on March 1, 2011 at 2:42 PM

Who is the world’s foremost expert at finding ways to exploit weaknesses in a country’s economy and currency?
Who has made many past statements about what he perceives to be the inevitable collapse of America?
Who is motivated to collapse America as a way to fulfill his dream of creating a one world socialist state?

OxyCon on March 1, 2011 at 2:44 PM

Oh, and many, many smart people see the supposedly “safe” municipal bond market about to be hit by rampant defaults. Walker’s budget in Wisconsin, and the upcoming budgets in many states, cuts money to cities to preserve the state. These cities have no place left to go at that point and start defaulting on what are supposed to be safest bonds out there.

That collapse, combined with our debt about to exceed our GDP, and we’re an elk not just fully out from behind the tree, but 10 yards away with a big, red target on our heart standing in wet cement.

PastorJon on March 1, 2011 at 2:47 PM

I’ve always believed that a certain leftist financial wiz, who has deep roots in the immoral shorting of the market, was at least partially behind the meltdown, in order to ensure Obama’s election.

Uh…what? Why is betting against fraudulent financial institutions and their mathematically unsustainable business models immoral?

Mike Honcho on March 1, 2011 at 2:52 PM

Was financial meltdown the result of economic terrorism?

Yup and most intelligent people know it was satan’s BFF (Soros)and his minions (Odumba$$/Bernanke/Susstein/etc.)

sicoit on March 1, 2011 at 2:57 PM

Another waste of money.

moonsbreath on March 1, 2011 at 2:57 PM

Mike Honcho on March 1, 2011 at 2:52 PM

Shorting is inherently immoral because it allows shares to be owned by two, or perhaps more, people at the same time. It is a direct distortion of the free market, and it is the basis for other abuses, such as options expiration exploits.

paul1149 on March 1, 2011 at 3:02 PM

Thanks Nile….will check it out

cmsinaz on March 1, 2011 at 3:02 PM

Where is the evidence?

Markets have crashed before without any grand conspiracy. Unless you want to talk about the open conspiracy to devalue all fiat currencies since Bretton Woods.

Bill C on March 1, 2011 at 2:19 PM

I’ve been in the real estate sector for almost 30 years, and have seen that market crash before. In all other crashes, an examination of statistics, flow charts, graphs, etc. did not show anything comparable to what happened this time.

In this case there was definitely some sort of coordinated effort to crash the real estate market in 2008, because that effort started in November of 2007, exactly one year before the election. It was almost as if a switch had been turned off.

If you take a look at Fannie Mae statistics, they bear this out, in spades. Fannie’s daily volume, for instance, went down by over 50% in November of 2007 alone. It had not done that in previous crashes.

Del Dolemonte on March 1, 2011 at 3:13 PM

Shorting is inherently immoral because it allows shares to be owned by two, or perhaps more, people at the same time.

Wrong, it does no such thing.

It is a direct distortion of the free market, and it is the basis for other abuses, such as options expiration exploits.

WTH is an options expiration exploit? Do you have any idea what you’re saying or do your words just tumble out at random?

paul1149 on March 1, 2011 at 3:02 PM

Nonsense. Shorting is nothing more than placing a bet that the value of a security will drop. It is an integral part of the free market. Among other things it allows people to hold on to their shares of a security and protect themselves from the full costs of a short term drop in price.

MJBrutus on March 1, 2011 at 3:14 PM

I always wondered about this given how rapid the collapse was. I recall that Rep Kanjorski on the Congressional Banking committee revealed in testimony that the meltdown was ultimately triggered by an electronic run on the banks that sucked out $550 USD BILLION in ONE HOUR by parties still not publicly identified.

But surely they know who dunnit by now?? The only thing I’ve ever seen was that there was a cascade system of electronic “buy-sell” orders in place, and once that kicked off it set into motion a series of expanding computer-initiated automatic buy-sells that moved $550 USD Billion in one hour, and would have moved $5.5 USD TRILLION out of the US market by 1PM that same day…oh…IIRC, it was September 11, 2008, btw…

EasyEight on March 1, 2011 at 3:15 PM

That’s spooky, dude.

faraway on March 1, 2011 at 3:17 PM

While I do not want to jump to conclusions, I smell Soros, too.

WannabeAnglican on March 1, 2011 at 3:17 PM

This has the fingerprints of Soros all over it. It’s his MO. Short selling to create an economic catastrophy to bring down a countries economy and install his desired leaders. That this was an “October surprise” is no surprise. I’ve long felt this so called economic meltdown was manufactured to help Obama. And it worked. McCain’s idiotic suspension of his campaign put the final nail in his coffin.

And this so called third phase? Sounds like Soros is conjuring up his coup de gras to hit us while we are down and vulnerable thanks to his boy’s mismanagement by design of our economy. They will need to do this sometime in the next two years while this creep is still in office. I think they know that their time is running out. Please G-d help us get to 2012 so we can have a real pro American presidential team like Palin/West. Go to Organize4Palin.com

shmendrick on March 1, 2011 at 2:00 PM

I knew when it happened that it was no accident (October 2008). Please.

I believe this was a conspiracy without a doubt – always did. Someone needs the death penalty for this.

Oink on March 1, 2011 at 3:18 PM

Who would go to the effort, since we’re doing fine destroying the U.S. economy without any help at all. I heard a much more interesting conspiracy theory. Greenspan use to be a gold bug himself, and the theory goes that the destruction of the financial system and the dollar has been planned to destroy the welfare state and return us to the gold standard. Now that’s interesting.

DFCtomm on March 1, 2011 at 3:21 PM

As a musician, I don’t know enough about economics to have an opinion about whether it really happened that way.

However, if a threat or weapon exists, we must plan for its eventual use by enemies.

We should be researching, studying, and planning counter moves. Even if it didn’t happen, it might in the future. We are way too vulnerable to ignore the threat.

jodetoad on March 1, 2011 at 3:28 PM

Sounds kind of far fetched.

jeanie on March 1, 2011 at 3:36 PM

I don’t see anything in that synopsis that couldn’t be explained by market forces. The financial bubble was mainly tied up in real estate values, which were simply inflated far beyond any reasonable market value.

SWLiP on March 1, 2011 at 3:38 PM

Burning Down The House: What Caused Our Economic Crisis? Bombshell!

http://www.youtube.com/watch?v=1RZVw3no2A4

Documented historical events that are a matter of public record.

wtng2fish on March 1, 2011 at 3:58 PM

I’ve been in the real estate sector for almost 30 years, and have seen that market crash before. In all other crashes, an examination of statistics, flow charts, graphs, etc. did not show anything comparable to what happened this time.

In this case there was definitely some sort of coordinated effort to crash the real estate market in 2008, because that effort started in November of 2007, exactly one year before the election. It was almost as if a switch had been turned off.

If you take a look at Fannie Mae statistics, they bear this out, in spades. Fannie’s daily volume, for instance, went down by over 50% in November of 2007 alone. It had not done that in previous crashes.

Del Dolemonte on March 1, 2011 at 3:13 PM

What previous crashes are you referring to?

Part of why this housing bubble was so enormous was because of the low interest rates in place allowing credit to be given out on a whim. We’re talking 1% (or less) due to trying to combat deflation due to the previous recession and the 9/11 attack right thereafter.

People were borrowing money left and right without sound backing. Then once things began defaulting, it was a domino effect.

During the previous housing crash(es) you are referring to, what was the credit market like?

It was a combination of things that made this happen to such a degree.

ButterflyDragon on March 1, 2011 at 4:11 PM

But we can’t drill for oil on US soil because that would stop the proliferation of solar-powered unicorns, right?

emerson7 on March 1, 2011 at 4:32 PM

This will be a line of defense for obama going into 2012. “It wasn’t his fault, it was the terrorists!!!” This article is nothing more than a preemptive strike aimed at deflecting blame for the economy the leftists have foisted on us.

It’s possible the conspiracy theory outlined here is true, but anyone who is smart enough to figure out how to do it, and has the capital, is smart enough to know all they had to do was wait for us to do it to ourselves.

Which is exactly what happened.

Just think of it in terms of Occam’s Razor.

runawayyyy on March 1, 2011 at 5:16 PM

How many years have we been saying this? Once again, the manufactured crisis is a carefully placed demolition device intended to bring the financial house down and implement one world currency.

The Kenites have done this for the last 300 odd years or so.

True_King on March 1, 2011 at 7:13 PM

Financial meltdown was caused by the democrats. Zero doubt.

proconstitution on March 1, 2011 at 7:50 PM

On September 29th, 2008, the US House of Representatives voted against the $700 billion dollar bailout bill proposed by treasury leading to an 8.8% decline in the S&P and a 778 point drop in the Dow, the worst ever recorded. Why did the house vote against the bailout bill? On September 8th, 2008, Sarah Palin, a virtually unknown governor from Alaska, addressed the republican convention and gave a speech credited with breathing life into the McCain campaign. Over the next three weeks, the polls reflected this turn around showing McCain/Palin with a small lead by the last week of September. Internal polling showed that in spite of the economy, the war and George W. Bush, Obama/Biden were in danger of losing what should have been a shoo in.

Members of the house up for re-election had made a back room deal to accommodate the public’s dislike of the bailout bill. Those up for re-election, regardless of party affiliation, could vote against the bill while the rest of the house voted for it thus assuring its passage. This arrangement did not recognize the shifting presidential election environment. It was meant to provide a measure of stability to the financial markets and an orderly re-election of house representatives.

The leadership in the Democratic Party was panicked by the presidential polling. They made a decision to undermine the arrangement in the house regarding the bailout bill. Majority leader Pelosi stood up on September 29th, 2008 and gave an incredibly partisan speech that was so vile, the majority of the republicans made a decision to vote against the bill regardless if they were up for election. This meant that the bill would only pass if the Democratic majority voted in favor. When faced with the prospect of potential defeat at the polls or undermining confidence in the financial markets, they chose the latter to save their own skin and skew the perspective on the presidential election.

On October 3, 2008, the house passed a “revised” bill but the damage had been done. It contained essentially the same provisions but there were some modifications best characterized as window dressing. By October 15th, polls reflected a 6 to 10 point advantage for Obama. The public had shifted their position on the economy and placed blame for the melt down on the republicans with McCain bearing the brunt of this shift. All of this I attribute to the Democratic Party’s decision to risk the world’s financial system to elect Obama. However, credit also has to go to the Republicans who ran a spectacularly awful campaign and John McCain in particular for his deployment of Palin and his decision to make Reverend Wright a non-issue. Proper tactical use of these could have made a difference but we will never know.

People who will risk everything that everybody owns so that they can gain and maintain power are wicked. Actions like this bring into question whether they did not know the effect of what they were doing or they did. If they did not know, they are stupid and incompetent and should never be anywhere near the levers of power. If they knew the damage that their actions would bring and did it anyway, they are evil and should never be anywhere near the levers of power.

Brian Mallard on March 1, 2011 at 11:18 PM

Now why would anyone suspect George Soros, just because he’s been convicted in France of insider trading, tried to break the Bank of England, is currently working to destabilize US oil, gas and coal companies, and funneled untold millions into getting Obama elected?

Republicans better damn well investigate this. Lord knows the Democrat report was a partisan sham.

American Elephant on March 2, 2011 at 5:54 AM

Members of the house up for re-election had made a back room deal to accommodate the public’s dislike of the bailout bill. Those up for re-election, regardless of party affiliation, could vote against the bill while the rest of the house voted for it thus assuring its passage.

Brian Mallard on March 1, 2011 at 11:18 PM

ALL members of the house were up for re-election at that time, regardles of party affiliation. The senate only has 1/3 up in any given cycle, but the house has to run in every 2 year cycle.

runawayyyy on March 2, 2011 at 9:53 AM

Smells like Soros is also a candidate, a dandy one.

{^_^}

herself on March 2, 2011 at 10:02 AM

The economic terrorists are the enemy within.

It’s not Osama-Bin-CDS-Trader who’s responsible for this, it’s our own damn government and regulators who are responsible.
[...] the people responsible are found right here, in America, and include (but are not limited to) politicians of both parties along with the present and previous Chairs of The Federal Reserve.

The only thing TARP (and the trillions upon trillions in backdoor bailouts) saved were the butts of the criminals responsible.

Rae on March 2, 2011 at 10:53 AM

a speculative run-up in oil prices

Which wasn’t “speculative”, as much as a factor of supply, demand, an increased demand in the “third world” nations… and I shifted many of my investments to take advantage of once I saw the numbers/research on this. Stopping drilling where we knew there was oil; and a lack of seriousness in western nations for “environmental” reasons was a minor cause as well.

a series of bear raids targeting U.S. financial services firms

Ah, so owning paper that was completely worthless, while making excessive loans that people couldn’t pay off was fine; it was some person outside the banks who caused the problem? Unimpressive excuse. Everyone saw you screw this one up guys; and many people reported ahead of time that you were screwing this one up.

It happening due to the housing price bubble burst wasn’t a cunning plan; it was simply eventually going to happen the way the loans were arranged and structured.

The risk of a Phase Three has quickly emerged, suggesting a potential direct economic attack on the U.S. Treasury and U.S. dollar.

So when the interest rates on Federal loans increases; it’ll be due to a “phase three” attack… and have nothing at all to do with our current economic plan of spending 150% of revenue every year with no idea on how to avoid our debt eventually either killing our economy or requiring us to devalue the dollar to nearly worthless?

Why not claim that rising taxes and energy prices will also be cause by this “phase three” and not at all by a government that is looking to tax and spend and use environmentalism to damage energy usage and production?

It’s amazing that every time the government completely fouls things up; that it’s not their fault and it was some shadowy figure who has cleverly manipulated the system to ruin a perfectly otherwise good plan that really would have worked.

Does anyone buy this excuse? The Government didn’t mess up anything and it was all someone else’s fault? And now that we can see the next problem coming; it’s “phase three” of this diabolical plan?

Oh, and I’m not slacking off at work because I’m posting on the internet… it was Chinese hackers who slowed down the computer systems here and deleted all the work I already did but now have to restart working on… no really.

Any chance that my boss will buy this as an excuse for me? Or does only the government get to use this type of excuse?

“My dog ate the economy” is more plausible than this crap.

gekkobear on March 2, 2011 at 1:32 PM

Which wasn’t “speculative”, as much as a factor of supply, demand, an increased demand in the “third world” nations…

Wrong. The run-up in oil prices was completely detached from supply and demand, and all of the world’s economic experts have said so.

Michael Masters, former head of the commodities exchange, testified that there was NO justification in the run-up in oil prices over the last few years, and that the run-up was 100% due to speculators. Those vermin contribute NOTHING to the supply chain, yet they’re able to run up the price on something they’ll never take delivery of.

crushliberalism on March 3, 2011 at 8:03 AM