Us Dow Collapse - 0810 003a

Americans Common Sense Prevails over Wall Street Intelligence God Saved Americans’ $700 Billions with Dow’s fall of 778 Points There is a saying that there could be a delay in God’s regime, never Injustice. Wise man also said that never regret what happened, - it did only for better. My father also taught me when you need to use the common sense, never waste your intelligence. (Use it where it is required) American citizens excelled and finally came on to their own. They said - we can afford to lose 778 points of Dow or 10% of S&P, because they will always retrace, but we can not afford to waste $700 Billions for that crazy guy Paulson, that will take generations to come back, if they would at all. The rejection of Paulson Plan was the victory of American democracy. There could not have been better evidence when the Americans saved irrecoverable $700 Billions and lost just retraceable 778 points of Dow. Here is the brief virtual conversation between the American Citizens and Paulson, with FED Chief Bernanke and President Bush intervening at times. President Bush Fellow Americans, you made terrible mistakes… American Citizen Really, who is saying that? You? You never made right decision even once in last 8 years of Presidency. Yes, we made terrible mistakes, but that was 8 years ago, when we sent you to the White House. What we did today was the right thing to do – to show you the door and never see your ugly face again. We would prefer to see the face of “Ugly Betty” at least she will make us laugh, but you! You always made us shed the tears of sorrow, blood and sweat. Get the hell out of here! Paulson There will be job losses, unemployment, no credit for cars, homes, banks will not offer you loans…when you asked your Representative to vote against. Look at Dow – down 778 points, S&P down 9% NASAQ down 8% - we have worst economic situation since 1930 depression era. American Citizen Really? Who will lose jobs – the people working at Wall Street? We can afford to lose jobs for a while, because it is limited to my own generation. But paying you blank checkbook of $700 billions to buy the rotten eggs will make my grand, grand grand, grand, grand grand children to pay through the noses. And who will benefit? You and your Goldman Sach? You mentioned that the portfolio of $700 billions will be managed by your Goldman Sach employee. Your GS will charge the exchequer 1% to 2% for next 5 or 10 years or 30 years to hold these rotten assets till maturity. So your GS will make about $ 7 billions to $ 14 billions for next 30 years, and you will go on making money in the GS stocks. And you are saying that this is the worst time since 1930 depression. Are you kidding? The Dow is down to 10,370 today whereas it was well above 3000 in 1987. It has not gone down to even 1987 level, and you are saying that this is the worst economic time since 1930? Better get your figures straight.

Fed’s Bernanke

American Citizen

And dear, these derivatives were all invented in the factory of Goldman Sach and likes, so called “financial engineering”. In off shore centers, Now that they are busting, you bring them on American soil and ask us to pay for your sins? Brother, you do not know the real problem. All these banks are busting, there is a credit squeeze, the interbank market is dead, GDP will go down, job losses will increase, the economy will contract, there will be problems everywhere.. You should have authorized the passage of bill for $700 billions of which only $250 billions were to be disbursed now, and $100 billions before December under the supervision…You see… Stop right there. Let me ask you one question. How much money you pumped into the United States and abroad to ease so called “Liquidity crunch”?

Fed’s Bernanke American Citizen

President Bush American Citizen

Well, about $673 billions were pumped into the system today Hey wise guy. You pumped $673 billions into the system without any form of authorization from Congress or otherwise, and you wanted my Authorization for just $ 250 billions? Are you out of your mind? How come we get “dumb persons “like you and Greenspan to head the FED empire? You see, this is fairly complicated. Even I don’t understand. These guys are professionals and experts. You got to believe them… You were elected as President of United States and you could not understand this basic economics? Why did we give you this beautiful and most powerful nation to you for management when you did not have even common sense?

And you are telling me that these guys are professionals and experts? These are the guys who messed up the whole system, who created CDO, CDS, and CLN etc which finally busted. We are harvesting their sins now and you are saying that we should believe this bald headed Paulson and Bearded Bernanke who have no brains of even 5th class student? President Bush Well, I do not know CDO but know WTO and WOT only… American Citizen I can understand WTO, but never heard of WOT – have you mis-spelt it? President Bush No, No, No. There is no spelling error. WOT = War On Terror. You know these terrorists who scare the hell out of me… American Citizen Oh, War on Terror. What are you doing now? Are you not terrorizing me by telling me GDP will go down, jobs will be lost, no money for the cars, homes, health care, Medicare, social security, and no money at the banks too? President Bush Well, these are my final 35 days – you may better ask these complicated questions to next President who may be better placed to answer them. American Citizen Well, Mr., President, Mr. Bernanke, Mr. Paulson, I got to go…otherwise I will lose job and only you will have to pay me the Unemployment Allowance. I am a good citizen unlike all of you, and do not want to be a burden on the state. President Bush Don’t be angry. Did not I send you rebate checks worth $106 billions some time ago? American Citizen Yes, I received it, and now you want $700 billions from me. Do you think that your fellow American citizens are stupid? Are you a President or a Con Man? Get the hell out of here – all of you…Now Why did the Dow fall so steeply? These Wall Street guys spread all rumors, including PIMCO chief – Bill Gross. I was watching the market and Congressional proceedings all night long. The market fell in last 5 minutes when the sellers deluge. They marked down the prices steeply when they saw no bids, It was more like a scene of Bombay Stock Exchange in January, when the brokers marked down the prices steeply for all blue chips, seeing no bids. It should be noted that if there were sellers all around, there were buyers too for whole day except for last 5 minutes. Even on closing bell, Maria of CNBC announced the fall of about 600+ points whereas the last minute update sent the Dow reeling by another 180 points. They were not indicative of meltdown. Who did that? Goldman at the instance of Paulson, force Congress to pass the bill a day after? What will happen on Tuesday? People will have time to think. Wall Street has been manipulating the whole market like a bunch of thugs. They brought down Dow in last few minutes to force the Congress. They wanted $ 700 billions before September to manipulate market prices of derivatives, by buying them at very high prices. They will even now lift the short selling ban on 799 financial shares, so that the market could go down further, and these “three Musketeers” could say – We told you so… Asian markets will fall again in the opening trades, but then, might recover. Whatever happens in Asia or Europe, there is strong possibility that Dow after sliding further by 200 points (10,170), it may rebound strongly. The rejection of Paulson Plan is now discounted in the market price. Nothing worse

is going to happen. If some bank goes under, let it go. How many banks will you go on resurrecting? These CDO/CDS have spread like Aids virus.” The sudden outbreak of bankruptcy virus is due to off shore liabilities coming on shore. They were never seen on the balance sheets of the banks in the past. When they lost money overseas, they jettisoned to on shore parents, like an ocean that always throws the trash on to the shore. The investors have short memory. How many times the investors remembered 1930, 1987 and 2001 in last 5 years? You can count it on finger tips. Frozen Liquidity? How to counter it? Let the market rates rise. There are always lenders who want to lend the money if they get higher return for higher risk. Did not Warren Buffet gave $ 5 Billions to Goldman Sach by extracting 10% interest on preferred shares? With warrants attached? It was stupid move on the part of Bernanke to pump over $673 billions in the market without any authorization when he was seeking Congress approval for just $250 billions? What the hell is he doing? He is just printing billions of dollars every day with almost no coma, semi colon and full stop? Has he gone mad? Why does not he recognize that the lenders are just on side line? They do not want to lend in high risk environment by receiving just 2%. If they want higher interest rate for short term, let them have it. Nothing stops. Everything has a price. Let the market determine the interest rates for the time being. Pumping hundreds of billions of dollars will only make the people to shun even treasury and go for Gold – which can not be printed. God has finally saved the America. The Americans should be proud of themselves for putting their foot firmly on the gang of President Bush, Ben Bernanke and Hank Paulson. Kalidas, Hong Kong September 30, 2008