Republican Economy: Mission Accomplished

For any thinking person the media distractions over pigs wearing lipstick and the OJ trial is amazing, to say the least. As if the American economy is a side-bar comment to the dismal failure of total Republican tyrannical control. The most troubling aspect of this whole financial sector meltdown and nationalization of the so called "free markets" is the under reporting of this phenomenon. The media propaganda arm continues to be distracted by Sideshow Palin and her side-kick P.O.W. Warhorse McCain. The most senseless dribble gets blabbed and ballyhooed all day, every day across the cable channels and news outlets.

Meanwhile, back on Wall Street, the place that actually impacts Americans lives and livelihood the media barely covered the unraveling of the financial markets. In that more attention and airtime was given to a bogus Miss Piggy in a lipstick blanket, than the nationalization of Freddie Mac and Fannie Mae, the fed bailout of Bear Sterns, and 11 bank failures (one of which has direct ties to John McCain's immediate family). Media propaganda provide weapons of mass distraction to polarize the American people.

According to the New York Times article entitled, "In Frantic Day, Wall Street Banks Teeter":
In one of the most dramatic days in Wall Street’s history, Merrill Lynch agreed to sell itself to Bank of America for roughly $50 billion to avert a deepening financial crisis, while another prominent securities firm, Lehman Brothers, hurtled toward liquidation after it failed to find a buyer, people briefed on the deals said.

The humbling moves, which reshape the landscape of American finance, mark the latest chapter in a tumultuous year in which once-proud financial institutions have been brought to their knees as a result of tens of billions of dollars in losses because of bad mortgage finance and real estate investments.

They culminated a weekend of frantic around-the-clock negotiations, as Wall Street bankers huddled in meetings at the behest of Bush administration officials to try to avoid a downward spiral in the markets stemming from a crisis of confidence.

“My goodness. I’ve been in the business 35 years, and these are the most extraordinary events I‘ve ever seen,” said Peter G. Peterson, co-founder of the private equity firm the Blackstone Group, who was head of Lehman in the 1970s and a secretary of commerce in the Nixon administration.

It remains to be seen whether the sale of Merrill, which was worth more than $100 billion during the last year, and the controlled demise of Lehman will be enough to finally turn the tide in the yearlong financial crisis that has crippled Wall Street. Questions remain about how the market will react Monday, particularly to Lehman’s plan to wind down its trading operations, and whether other companies may still falter, like the American International Group, the large insurer, and Washington Mutual, the nation’s largest savings and loan. Both companies’ stocks fell precipitously last week.

Though the government took control of the troubled mortgage finance companies Fannie Mae and Freddie Mac only a week ago, investors have become increasingly nervous about the difficulties of major financial institutions to recover from their losses.

How things play out could affect the broader economy, which has been weakening steadily as the financial crisis has deepened over the last year, with unemployment increasing as the nation’s growth rate has slowed.

Read the entire article "In Frantic Day, Wall Street Banks Teeter," by Andrew Ross Sorkin here.