“We’re in Challenging times.” -President George W. Bush after hearing about Bear Stearns bail out.

Excerpt from original article (click to read.) by

Tuesday, March 18, 2008:

“The extraordinary unraveling of securities giant Bear Stearns Cos., one of the pillars of the Wall Street establishment, has taken the anxiety gripping the nation’s financial markets to a whole new level, threatening to deepen the agony of an economy that already is on its knees.

Over the past six months, a crisis that began when home loans to high-risk borrowers started to sour has cascaded into a near-panic in which the downfall of a big securities firm threatens the stability of the nation’s financial system.

“This is a once- or twice-in-a-century event, and no one knows the downside,” said Ian Morris, chief U.S. economist at the British bank HSBC.

If U.S. credit markets were to seize up, Main Street businesses and ordinary households would be all-but-unable to borrow, which would have a dire effect on spending, investment and jobs. That’s why the Fed is jumping in, economists stress.

“It’s not that the Fed cares about one particular firm. It’s more that the failure of one firm has an effect on the entire financial system,” Morris said. “Other players hoard cash out of a fear of lending to each other. The system freezes up and produces domino effects.”

Bear Stearns is the most prominent casualty to date of what was once called the subprime mortgage crisis but has long since transformed into an economy-wide credit chill.

The storied 85-year-old brokerage, known as one of the powerhouses of the bond market, came to the brink of failure after losses on mortgage-related holdings scared other investment firms away from dealing with it. Its failure might have touched off a panic in which banks and brokerages stopped lending each other money, bringing the financial system to a near meltdown with incalculable consequences for the broader economy, market watchers say.

The Federal Reserve, fearing the fallout from the collapse of one of the securities industry’s biggest players, took a series of unprecedented measures to shore up the financial system over the weekend. After arranging the forced marriage of Bear Stearns to rival JPMorgan Chase & Co., the nation’s central bank took steps Sunday to make itself both the ultimate guarantor of a wide range of debt and the lender ready to step in when other creditors are racing for the exits.

On Monday morning, President Bush huddled with his economic advisers and said afterward: “We’re in challenging times.””

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Dollar sets record low against the euro after Carlyle Group fund defaults on $16.6 billion of debt; Gold hits record high as investors seek shelter.

Published in original form on March 13 by Bloomberg.com (see entire article by clicking here):

“– The dollar fell below 100 yen earlier today for the first time since 1995 and set a record low against the euro after a Carlyle Group fund defaulted on about $16.6 billion of debt, adding to turmoil in financial markets.

The dollar fell to almost one-for-one with the Swiss franc and slumped against the British pound. The drop came as Carlyle said lenders will seize the assets of its mortgage-bond fund, a day after Drake Management LLC said it may shut its largest hedge fund, spurring concern that losses will widen. The tumble in the world’s reserve currency drove gold to a record above $1,000 an ounce as investors sought shelter in the metal.

“The weakening, in reality, is a reflection on how the world is measuring the U.S.,” said Thomas Sowanick, who helps manage $10 billion as chief investment officer of Clearbrook Financial LLC in Princeton, New Jersey. “Until there is a unified central bank effort to support the dollar, the path of least resistance will be down.”

The dollar fell to 99.77 yen, the lowest since October 1995, before trading at 100.68 at 4:20 p.m. in New York, from 101.79 yesterday. The dollar touched $1.5626 per euro, the weakest since the European currency’s debut in 1999, and was at $1.5622, from $1.5551. It slid to a record 1.0045 Swiss francs. Japan’s currency advanced to 157.27 per euro, from 158.30.

The U.S. currency fell against a basket of six major trading partners to the lowest since the index began in 1973. The Dollar Index traded on ICE Futures in New York declined as low as 71.795. The dollar dropped to $2.0320 per pound from $2.0270, touching the weakest since December.

`So Many Holes’

The dollar pared its losses as stocks reversed a decline, after Standard & Poor’s said the end of subprime-related losses is “in sight” for large financial institutions. The S&P 500 index rose 0.5 percent, after earlier losing as much as 2 percent.

“The dollar is trying to find a floor here,” said Alan Kabbani, a senior currency trader at Wachovia Corp. in Charlotte, North Carolina. “The boat has so many holes that it takes a while to fix it.”

Treasury Secretary Henry Paulson reiterated support today for a “strong dollar” that reflects economic fundamentals, after President George W. Bush yesterday said the U.S. currency’s drop was not “good tidings.”

Person George W. Bush
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Video of US Congressman, Ron Paul, M.D. in 1988, 20 years ago, passionately standing up for the same beliefs he supports today.

Ron Paul has:

-been a U.S. Congressman for 17 years, from 1979-1985 and from 1997 to present;

He has been a Flight Surgeon in the U.S. Air Force from 1963-1965, and a flight surgeon in the U.S. Air National Guard from 1965-1968; been married to the same woman for 50 years;-Never voted to raise taxes; Never voted for an unbalanced budget; Never taken a government paid junket;

Never voted to increase the power of the executive branch; Never voted to restrict gun ownership;

Voted against the Patriot Act;

Voted against regulating the Internet; Voted against the Iraq War;

Does not participate in the lucrative Congressional pension program;

Returns a portion of his annual Congressional office budget to the U.S. Treasury every year; been a ‘Distinguished counselor’ to the Ludwig von Mises Institute;

delivered more than 4,000 babies; written 2 books:

  • Challenge to Liberty: The Case for Gold by Ron Paul
  • A Republic, If You Can Keep It by Ron Paul
  • Dr. Paul’s consistent voting record prompted one Congressman to comment that “Ron Paul personifies the Founding Fathers’ ideal of the citizen-statesman. He makes it clear that his principles will never be compromised, and they never are.” Another Congresswoman added that “There are few people in public life who, through thick and thin, rain or shine, stick to their principles. Ron Paul is one of those few.”

“It is not we non-interventionists who are isolationists. The real isolationists are those who impose sanctions and embargoes on countries and peoples across the globe and who chose to use force overseas to promote democracy…a counterproductive approach that actually leads the U.S. to be more resented and more isolated in the world.”–Ron Paul
“Peace is not the absence of conflict. It is the ability to handle conflict through peaceful means.” -Ronald Reagan

“Don’t Taze me Bro!” Watch video of University of Florida student journalist, Andrew Meyer, being Tasered for asking US Senator John Kerry the wrong question at a school Q and A session.

See Video by pressing play here:

Mr. Andrew Meyer, a University of Florida student journalist, was handcuffed and tasered after asking Senator John Kerry some questions during a structured Q and A session following Kerry’s speech in Gainesville on September 17, 2007.Wire Services report that Senator Kerry released a statement about the event on Tuesday, saying:

“In 37 years of public appearances, through wars, protests and highly emotional events, I have never had a dialogue end this way.” Kerry said. “I hope that neither the student nor any of the police were injured. I regret enormously that a good healthy discussion was interrupted.”

Congressman Ron Paul trying to convince Congress to fight against war in 2002, and against unbalanced budgets and for securing our borders

“I rise to urge the Congress to think twice before thrusting this nation into a war without merit- one fraught with the danger of escalating into something that no American will be pleased with.” -Congressman Ron Paul, September 4, 2002

“Military force is justified only in self-defense; naked aggression is the province of dictators and rogue states. This is the danger of a new “preemptive first strike” doctrine.” -Congressman Ron Paul, September 4, 2002.

“If we can’t or won’t define the enemy, the cost to fight such a war will be endless. How many American troops are we prepared to lose?…How much money are we prepared to spend?…How many innocent civilians, in our nation and others, are we willing to see killed?…How many American civilians will we jeopardize?…How much of our civil liberties are we prepared to give up?” -Congressman Ron Paul, September 25, 2002

“Let it be clearly understood- there is no authority to wage war against Iraq without Congress passing a Declaration of War…A UN Resolution authorizing an invasion of Iraq, even if it were to come, cannot replace the legal process for the United States going to war as precisely defined in the Constitution…Only tyrants can take a nation to war without the consent of the people. The planned war against Iraq without a Declaration of War is illegal. It is unwise because of many unforeseen consequences that are likely to result…The American people become less secure when we risk a major conflict driven by commercial interests. Victory under these circumstances is always elusive, and unintended consequences are inevitable.” -Congressman Ron Paul, March 1, 2002

“The tired assertion that America “supports democracy” in the Middle East is increasingly transparent. It was false 50 years ago when we supported and funded the hated Shah of Iran to prevent nationalization of Iranian oil…and it’s false today when we back an unelected dictator in Pakistan -just to name two examples.” -Congressman Ron Paul, December 3, 2002

“Mr. Speaker, I once again find myself compelled to vote against the annual budget resolution for a very simple reason: it makes the government bigger.” -Congressman Ron Paul, March 4, 2004

“…I also want to abolish the Federal Reserve…The value of our dollar and the level of our interest rates are not supposed to be manipulated by a few members of the power elite meeting secretly in a marble palace…Without the Federal Reserve, our money could not be inflated at the behest of big government or big banks. Your income and savings would not lose thier value.” -Congressman Ron Paul, 2002.

“The official national debt figure, now approaching $9 trillion, reflects only what the federal government owes in current debts on money already borrowed…It does not reflect what the federal government has promised to pay millions of Americans in entitlement benefits down the road…Those future obligations put our real debt figure at roughly fifty trillion dollars -a staggering sum that is about as large as the total household net worth of the entire United States…Your share of this fifty trillion amounts to about $175,000.” -Congressman Ron Paul, March 6, 2007

“Immigration reform should start with improving our border protection…yet it was reported last week that the federal government has approved the recruitment of 120 of our best trained Border Patrol agents to go to Iraq to train Iraqis how to better defend their borders…National Gaurd troops participating in Operation Jump Start are being removed from border protection duties in Arizona, New Mexico, and Texas and preparing to deploy to Iraq and Afghanistan…Is this a way to discourage people from coming to the US illegally?” -Congressman Ron Paul,March 31, 2007

“If present trends continue, by 2040 the entire federal budget will be consumed by Social Security and Medicare alone…To close the entitlement gap, the US economy would have to grow by double digits every year for the next 75 years.” -Congressman Ron Paul, March 6, 2007

“It is not we non-interventionists who are isolationists. The real isolationists are those who impose sanctions and embargoes on countries and peoples across the globe and who chose to use force overseas to promote democracy…a counterproductive approach that actually leads the U.S. to be more resented and more isolated in the world.”

“Peace is not the absence of conflict. It is the ability to handle conflict through peaceful means.” -Ronald Reagan

Conservative Republican pundit, Ann Coulter, vows to campaign for Hillary Clinton if John McCain is the Republican Nominee

Click play below to see video:

Congressman Ron Paul, MD vs. Fed Reserve Chairman Ben Bernanke, 11/08/2007: