News StoriesExcerpts of Key News Stories in Major Media
Note: This comprehensive list of news stories is usually updated once a week. Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.
Less than a week after the federal government committed $85 billion to bail out AIG, executives of the giant AIG insurance company headed for a week-long retreat at a luxury resort and spa, the St. Regis Resort in Monarch Beach, California, Congressional investigators revealed today. "Rooms at this resort can cost over $1,000 a night," Congressman Henry Waxman (D-CA) said. AIG documents obtained by Waxman's investigators show the company paid more than $440,000 for the retreat, including nearly $200,000 for rooms, $150,000 for meals and $23,000 in spa charges. "They're getting their pedicures and their manicures and the American people are paying for that," said Cong. Elijah Cummings (D-MD). Appearing before the committee, Martin Sullivan, the AIG CEO until June, said the company was overwhelmed by a "financial global tsunami," and that "no simple or single cause" was to blame. "I am heartbroken at what has happened," Sullivan said. Robert Willumstad, the CEO from June to September, 2008, maintained AIG was a victim of a "crisis in confidence" and an "unprecedented global catastrophe." But Congressional investigators raised questions of "mismanagement" and whether AIG executives sought to "cook the books" and hide negative information from outside auditors. Waxman also said there is evidence the two men changed the bonus schedule once the company began to post losses, so that executives under the "Senior Partners Plan" would continue to make multi-million dollar salaries. Sullivan was given a $15 million "golden parachute" payment after being replaced as CEO in June.
Note: For lots more on corporate corruption from reliable sources, click here.
When the Supreme Court ruled in June that detainees at Guantánamo had the right to challenge their detention in federal court, the justices said that after more than six years of legal wrangling the prisoners should have their cases heard quickly because “the costs of delay can no longer be borne by those who are held in custody.” But nearly four months later, as the Bush administration has opened a new defense of its detention policies in federal court, none of the scores of cases brought by detainees have been resolved by any judge. Since the Supreme Court issued its ruling, lawyers for most of the 255 detainees in Guantánamo Bay, Cuba, have pressed ahead with habeas corpus lawsuits, yet most of those cases have been delayed by battles over issues like whether some court sessions will be held in secret, whether detainees can attend and what level of proof will justify detention. Some of the arguments made by the Justice Department appear to challenge the Supreme Court’s conclusion that the federal courts have a role in deciding the fate of the detainees. Officials and lawyers inside and outside of the government say the new legal confrontation suggests that the Bush administration will most likely continue its defense of the detention camp until the end of President Bush’s term and is not likely to close the camp, as administration officials have said they would like to do. Detainees’ advocates say that the administration is using the legal battle to delay judicial review of its evidence.
Note: For many disturbing reports from reliable, verifiable sources on threats to civil liberties, click here.
US Attorney General Michael Mukasey has signed new guidelines for FBI operations he said are designed to better protect the country from terrorist attacks, but that raise concern of some lawmakers and civil rights groups. The new, revised regulations -- the original version met strong criticism from congressional committees last month -- comprise 50 pages dealing with five areas of FBI investigation, including criminal, national security and foreign intelligence. Despite Mukasey's assurances that the new regulations "reflect consultation with Congress as well as privacy and civil liberties groups," not all concerns over their effect on privacy rights were dispelled. [The] Senate Judiciary Committee chairman, Democrat Patrick Leahy, said the new guidelines expand the FBI's powers of surveillance. "It appears that with these guidelines, the attorney general is once again giving the FBI broad new powers to conduct surveillance and use other intrusive investigative techniques on Americans without requiring any indication of wrongdoing or any approval even from FBI supervisors," Leahy said in a statement. "The American people deserve a ... Justice Department that does not sacrifice or endanger their rights and privacy," he added. The American Civil Liberties Union, who had called for an investigation into the first version of the FBI regulations, said the new rules "reduce standards for beginning 'assessments.'" "More troubling still," it added, "the guidelines allow a person's race or ethnic background to be used as a factor in opening an investigation, a move that the ACLU believes may institute a racial profiling as a matter of policy."
Note: For many reports on increasing government surveillance and threats to privacy, click here.
Prince [Charles] has [made] his most anti-GM speech yet, in delivering ... the Sir Albert Howard Memorial Lecture to the Indian pressure group Navdanya. "I believe fundamentally that unless we work with nature, we will fail to restore the equilibrium we need in order to survive on this planet," [he stated]. He plunged straight into the most controversial and emotive of all the debates over GM crops and foods by highlighting the suicides of small farmers. Tens of thousands killed themselves in India after getting into debt. The suicides were occurring long before GM crops were introduced, but campaigners say that the technology has made things worse because the seeds are more expensive and have not increased yields to match. The biotech industry strongly denies this, but two official reports have suggested that there "could" be a possible link. Prince Charles expressed no doubts in his lecture, delivered at the invitation of Dr Vandana Shiva, the founder of Navdanya, and one of the leading proponents of the technology's role in the deaths. He spoke of "the truly appalling and tragic rate of small farmer suicides in India, stemming in part from the failure of many GM crop varieties". Broadening his offensive, he said that "any GM crop will inevitably contaminate neighbouring fields", making it impossible to maintain the integrity of organic and conventional crops. For the first time in history this would lead to "one man's system of farming effectively destroying the choice of another man's" and "turn the whole issue into a global moral question." He quoted Mahatma Gandhi who condemned "commerce without morality" and "science without humanity".
Note: For many powerful reports on the dangers of genetically modified organisms, click here.
For decades, Africa was rarely more than an afterthought for the Pentagon. But since the attacks of Sept. 11, 2001, a new view has gained acceptance among senior Pentagon officials and military commanders: that ungoverned spaces and ill-governed states ... pose a growing risk to American security. Last week ... Defense Secretary Robert M. Gates and Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, inaugurated the newest regional headquarters, Africa Command [AFRICOM], which is responsible for coordinating American military affairs on the continent. Already ... analysts at policy advocacy organizations and research institutes are warning of a militarization of American foreign policy across Africa. Mr. Gates said the new command was an example of the Pentagon’s evolving strategy of forging what he called “civilian-military partnerships,” in which the Defense Department works alongside and supports the State Department and the Agency for International Development. While that thinking has influenced the work of all of the military’s regional war-fighting commands, it is the central focus of Africa Command. And over the past two years, it has quietly become the central focus of the military’s Southern Command, once better known for the invasions of Grenada and Panama. A number of specialists in African and Latin American politics at nongovernmental organizations express apprehension, however, that the new emphasis of both these commands represents an undesirable injection of the military into American foreign policy, a change driven by ... desires for natural resources.
Note: For lots more on war and war planning from reliable sources, click here.
The Army on [October 6] will unveil an unprecedented doctrine that declares nation-building missions will probably become more important than conventional warfare and defines "fragile states" ... as the greatest threat to U.S. national security. The doctrine ... holds that in coming years, American troops are not likely to engage in major ground combat against hostile states as they did in Iraq and Afghanistan, but instead will frequently be called upon to operate in lawless areas. Such "stability operations" will last longer and ultimately contribute more to the military's success than "traditional combat operations," according to the Army's new Stability Operations Field Manual. The stability operations doctrine is an engine that will drive Army resources, organization and training for years to come ... and Army officials already have detailed plans to execute it. The operations directive underpinning the manual "elevated stability operations to a status equal to that of the offense and defense," the manual reads, describing the move as a "fundamental change in emphasis" for the Army. Today, such fragile states, if neglected, will pose mounting risks for the United States, according to Lt. Col. Steve Leonard, the manual's lead author. Weak states "create vast ungoverned areas that are breeding grounds for the threats that we fear the most." The manual adds to a growing body of doctrine focused on the military's nontraditional skills, most notably the Army's 2006 counterinsurgency manual. Civilian officials and nongovernmental groups voice [concern] that the military's push to expand its exercise of "soft power" ... marks a growing militarization of U.S. foreign policy.
Note: To download the new Stability Operations, U.S. Army Field Manual 3-07, click here. For lots more on war and war planning from reliable sources, click here.
The United States military's Northern Command [NORTHCOM], formed in the wake of the September 11 terrorist attacks, is dedicating a combat infantry team to deal with catastrophes in the U.S., including terrorist attacks and natural disasters. The 1st Brigade Combat Team of the 3rd Infantry, which was first into Baghdad, Iraq, in 2003, started its controversial assignment [on October 1]. The First Raiders will spend 2009 as the first active-duty military unit attached to the U.S. Northern Command since it was created. They will be based in Fort Stewart, Georgia, and focus primarily on logistics and support for local police and rescue personnel, the Army says. The plan is drawing skepticism from some observers who are concerned that the unit has been training with equipment generally used in law enforcement, including beanbag bullets, Tasers, spike strips and roadblocks. That kind of training seems a bit out of line for the unit's designated role as Northern Command's CCMRF (Sea Smurf), or CBRNE Consequence Management Response Force. CBRNE stands for chemical, biological, radiological, nuclear and high-yield explosive incidents. Use of active-duty military as a domestic police force has been severely limited since passage of the Posse Comitatus Act following the Civil War. Bloggers are criticizing the new force, saying that because it has been training in law enforcement tactics it could be be used for domestic law enforcement.
Note: Naomi Wolf, author of Give Me Liberty and The End of America, considers this domestic deployment of combat troops to be a coup d'etat with frightening implications.
James Hansen, director of the NASA Goddard Institute for Space Studies, has [co-authored a] paper saying that [future global warming] is likely to turn out worse than most people think. The most recent major report from the Intergovernmental Panel on Climate Change in 2007 projects a temperature rise of three degrees Celsius, plus or minus 1.5 degrees—enough to trigger serious impacts on human life from rising sea level, widespread drought, changes in weather patterns, and the like. But according to Hansen and his nine co-authors ... the correct figure is closer to six degrees C. “That’s the equilibrium level,” he says. “We won’t get there for a while. But that’s where we’re aiming.” And although the full impact of this temperature increase will not be felt until the end of this century or even later, Hansen says, the point at which major climate disruption is inevitable is already upon us. “If humanity wishes to preserve a planet similar to that on which civilization developed and to which life on Earth is adapted,” the paper states, “CO2 will need to be reduced from its current 385 ppm [parts per million] to at most 350 ppm.” The situation, he says, “is much more sensitive than we had implicitly been assuming.” Back in 1998 ... Hansen was arguing that the human impact on climate was unquestionable, even as other leading climate scientists continued to question it. He was subsequently proved right, not only about the human influence but about the approximate pace of future temperature rise.
Note: For lots more on global warming from reliable sources, click here.
In 18 months of searching, Justice Department Inspector General Glenn A. Fine and Office of Professional Responsibility chief H. Marshall Jarrett have uncovered new e-mail messages hinting at heightened involvement of White House lawyers and political aides in the firings of nine federal prosecutors two years ago. But they could not probe much deeper because key officials declined to be interviewed and a critical timeline drafted by the White House was so heavily redacted that it was "virtually worthless as an investigative tool," the authorities said. "We were unable to fully develop the facts regarding the removal of [David C.] Iglesias and several other U.S. Attorneys because of the refusal by certain key witnesses to be interviewed by us, as well as the White House's decision not to provide ... internal documents to us," the investigators concluded in their report. Attorney General Michael B. Mukasey on Monday named a veteran public-corruption prosecutor, Nora R. Dannehy, to continue the investigation. Investigators urged Dannehy to focus on the dismissal of Iglesias in New Mexico. He was the subject of repeated complaints by Republican lawmakers to White House and Justice Department officials in 2005 and 2006 over not bringing voter-fraud and corruption charges against Democrats. Their report said the internal probe at Justice could not reach Miers and Rove, "both of whom appear to have significant first-hand knowledge regarding Iglesias's dismissal."
Note: For many reports on government secrecy from reliable sources, click here.
The former No. 3 official at the CIA pleaded guilty Monday to defrauding the government, closing an investigation that linked the nation's preeminent spy service to the corruption scandal involving former Rep. Randy "Duke" Cunningham. In admitting that he abused his rank to steer lucrative contracts to cronies, Kyle Dustin "Dusty" Foggo, the agency's onetime executive director, became one of the highest-ranking officials in CIA history to be convicted of criminal charges. But the deal also involved major concessions from prosecutors, who allowed Foggo to admit guilt to a single fraud charge, wiping out 27 additional counts that included money laundering and conspiracy. Prosecutors indicated that they would recommend he serve no more than 37 months. The revelations of Foggo's crimes surfaced two years ago during one of the most tumultuous periods in recent agency history, and added to the pressure on the Bush administration to remove Porter J. Goss as CIA director in 2006. Goss selected Foggo for the agency's third-ranking position. Foggo had never served as a case officer or an analyst -- the jobs that typically garner the most respect within the CIA. But as a procurement officer at a secret CIA post in Frankfurt, Germany, he was in a position to cultivate contacts with members of Congress and other influential officials who visited during overseas trips to war zones.
Note: Interesting that a guilty plea for one count was exchanged for dismissing numerous other charges of fraud and money laundering. For an excellent analysis of the reasons behind this unusual prosecutorial strategy, click here. Buzzy Krongard, the previous #3 man at the CIA, has been linked to the millions of dollars in suspicious stock option trades made just prior to 9/11 that were never claimed, though this received little media coverage.
Thanks to the Sept. 11 interview of Sarah Palin by Charles Gibson of ABC News, the Bush Doctrine has become part of the American vocabulary. Although it has been a fateful doctrine - it was used to justify the attack on Iraq - many Americans reported that they were as clueless about it as Gov. Palin. So what is the Bush Doctrine? According to international law as generally understood since the creation of the United Nations, a pre-emptive attack is legal only if a country has certain knowledge that an attack on it is imminent - too imminent for the matter to be taken to the U.N. Security Council. Pre-emptive war is different from preventive war, in which a country, fearing that another country may become strong enough to threaten it at some time in the future, attacks it to prevent this possibility. Preventive wars are illegal under international law. This distinction, however, creates a terminological problem: Although preventive war is worse than pre-emptive war, to most ears preemption sounds worse. Many people, therefore, speak of pre-emptive war when they mean preventive war. To avoid confusion, we can use the term pre-emptive-preventive war. Neoconservatives, the most powerful of whom is Vice President Dick Cheney, had long disliked the idea that America's use of military power could be constrained by the prohibition against preemptive-preventive war. In 1992, his last year as secretary of defense, Cheney produced a draft of the Defense Planning Guidance that said the United States should use force to "pre-empt" and "preclude threats." After the 9/11 terrorist attacks, the neocons were able to turn their wish into U.S. policy.
Note: This article is by WantToKnow team member David Ray Griffin. He analyzes the significance of the 9/11 attacks for the acceptance of the Bush Doctrine in more detail in his recent book The New Pearl Harbor Revisited, pointing out that the author of the document which first made the doctrine official policy was Philip Zelikow, who then later became executive director of the 9/11 Commission.
The truth is out there -- and if a senior [constable], a Fianna Fail politician and a pilot are to be believed, aliens are keeping a close eye on us from above. Dramatic eye-witness testimony was heard at a conference over the weekend which, delegates were told, provided "definitive" proof of recent UFO activity in the skies around north Dublin and Meath. Footage, filmed on a camera phone at 10.35pm on August 3 near Dunboyne was also played and replayed to over 70 delegates who attended the fifth Irish International UFO conference in Carrick-on-Shannon. The triangular shaped image, with lights at each point, which appeared to send a red laser-type light towards earth, drew gasps of amazement from the 70 or so delegates who attended the world premiere of the footage. A senior [police] officer who was driving when he noticed the unusual light formation in the sky stopped to film it. "There is no footage like this in the world. It is the most amazing and spectacular I have ever seen," said Carl Nally, co-founder of UFO and Paranormal Research Ireland and joint author of Conspiracy of Silence. Five days earlier, on July 29, an off-duty pilot who photographed lightning from Howth pier just after midnight later noticed what appeared to be a triangular-shaped object to the right of the lightning fork in the developed image. And Fianna Fail Town Councillor in Trim, Jimmy Peppard, ran indoors for a camera on August 8 when he spotted a triangular-shaped object measuring "about a mile in diameter" in the sky, where it remained static for about half an hour.
Note: For a two-page summary of evidence for UFOs presented by highly-credible government and military officials, click here.
Scientists on Thursday warned US legislators of the risks of brain cancer from cell phone use, highlighting the potential risk for children who use mobile phones. "We urgently need more research," said David Carpenter, director of the Institute of Health and Environment at the University of Albany, in testimony before the House Subcommittee on Domestic Policy. "We must not repeat the situation we had with the relationship between smoking and lung cancer," Carpenter said. Ronald Herberman, director of the University of Pittsburgh Cancer Institute, said that most studies "claiming that there is no link between cell phones and brain tumors are outdated, had methodological concerns and did not include sufficient numbers of long-term cell phone users." Many studies denying a link "defined regular cell phones as 'once a week,'" added Herberman. "I cannot tell this committee that cell phones are definitely dangerous. But, I certainly cannot tell you that they are safe," he said. Carpenter and Herberman both told the committee the brain cancer risk from cell phone use is far greater for children than for adults. Herberman held up a model for lawmakers showing how radiation from a cell phone penetrates far deeper into the brain of a 5-year-old than that of an adult. "Every child is using cell phones all of the time, and there are three billion cell phone users in the world," said Herberman. He added that, like the messages that warn of health risks on cigarette packs, cell phones "need a precautionary message."
Note: For a treasure trove of important reports on health issues, click here.
Bruce Ivins, the Army scientist accused of masterminding the 2001 anthrax attacks, e-mailed himself last year saying he knew who the killer was, according to court documents unsealed Wednesday. "Yes! Yes! Yes!!!!!!! I finally know who mailed the anthrax letters in the fall of 2001. I've pieced it together!" Ivins wrote in the e-mail dated Sept. 7, 2007, according to an FBI affidavit. "I'm not looking forward to everybody getting dragged through the mud, but at least it will all be over," Ivins allegedly wrote. "Finally! I should have it TOTALLY nailed down within the month. I should have been a private eye!!!!" The e-mail did not say who Ivins thought was the anthrax killer. Ivins committed suicide in July as prosecutors prepared to charge him in the mailings that killed five people and sickened 17 others. The e-mail was signed "bruce" and sent from an America Online address by the name of "KingBadger7." Authorities said it was one of at least six e-mail addresses registered to Ivins. The FBI affidavit was included in the final batch of court documents to be released by the government that shows how prosecutors built their case against Ivins. Ivins' lawyer, Paul Kemp, has maintained that Ivins was innocent and has predicted the scientist would have been cleared if the case had gone to trial. It was not unusual for Ivins to e-mail himself, according to the FBI document. "In addition, Ivins has sent at least one other e-mail to himself that details his opinion of who may have been the anthrax mailer," the affidavit states.
Note: Isn't it strange that the man the FBI accused of being the anthrax killer would send himself an e-mail saying he knew who the killer was? For many strange deaths of microbiologists that occurred shortly after the anthrax scare, click here.
The world's first commercial power plant converting the energy of sea waves into electricity [has] started working off Portugal's coast ... in a project that should be expanded nearly 10-fold over the next few years. Three articulated steel "sea-snakes" moored to the seabed three miles off Portugal's northern coast, each about the length of a nuclear submarine, generate a total of 2.25 megawatts, enough to supply 1,500 households with electricity. "It's logged into the national grid, which makes it the world's first commercial wave power project," said Anthony Kennaway, a spokesman for Babcock and Brown investment firm which runs the Agucadoura project in northern Portugal. "We hope that in 15 years wave power will be where wind is now, that is extremely competitive. Portugal could be for wave power what Denmark was for wind," Kennaway said. Renewable energy, including water dams, accounts for 40 percent of power consumption in Portugal. Some experts say wave energy could meet up to 20 percent of the country's needs in the future. A total of 25 semi-submerged "sea-snakes" should be installed in the next few years, boosting the ... capacity to 21 MW, Kennaway said. The machines, each 140 meters (yards) long and 3.5 meters in diameter, are positioned head-on towards the waves so that its sections move with the waves. Each joint ... contains a hydraulic pump, which pumps high-pressure liquid through motors that in their turn drive power generators. The energy is then transmitted to a substation on shore via subsea cables.
Note: For lots more on new energy inventions from reliable sources, click here.
Baggage searches are SOOOOOO early-21st century. Homeland Security is now testing the next generation of security screening — a body scanner that can read your mind. Most preventive screening looks for explosives or metals that pose a threat. But a new system called MALINTENT turns the old school approach on its head. This Orwellian-sounding machine detects the person — not the device — set to wreak havoc. MALINTENT, the brainchild of the cutting-edge Human Factors division in Homeland Security's directorate for Science and Technology, searches your body for non-verbal cues that predict whether you mean harm to your fellow passengers. It has a series of sensors and imagers that read your body temperature, heart rate and respiration for unconscious [tell-tale signs] invisible to the naked eye. But this is no polygraph test. Subjects do not get hooked up or strapped down for a careful reading; those sensors do all the work without any actual physical contact. It's like an X-ray for bad intentions. When the sensors identify that something is off, they transmit warning data to analysts, who decide whether to flag passengers for further questioning. The next step involves micro-facial scanning, which involves measuring minute muscle movements in the face for clues to mood and intention. Homeland Security has developed a system to recognize, define and measure seven primary emotions and emotional cues that are reflected in contractions of facial muscles. MALINTENT identifies these emotions and relays the information back to a security screener almost in real time.
Note: For many more major-media reports on threats to civil liberties, click here.
Britain's first human-animal hybrid embryos have been created, forming a crucial first step, scientists believe, towards a supply of stem cells that could be used to investigate debilitating and so far untreatable conditions such as Alzheimer's disease, Parkinson's and motor neurone disease. Lyle Armstrong, who led the work, gained permission in January from the Human Fertilisation and Embryology Authority (HFEA) to create the embryos, known as "cytoplasmic hybrids". His team at Newcastle University produced the embryos by inserting human DNA from a skin cell into a hollowed-out cow egg. An electric shock then induced the hybrid embryo to grow. The embryo, 99.9% human and 0.1% other animal, grew for three days, until it had 32 cells. Eventually, scientists hope to grow such embryos for six days, and then extract stem cells from them. The researchers insisted the embryos would never be implanted into a woman and that the only reason they used cow eggs was due to the scarcity of human eggs. Cardinal Keith O'Brien used his Easter sermon to denounce what he called experiments of "Frankenstein proportion" and called the bill a "monstrous attack on human rights, human dignity and human life". Catholics object to the idea of putting human and animal DNA in the same entity and to the notion of creating what they regard as a life for the purposes of research, a life that will then be destroyed.
Note: For more on this important issue, click here.
Got an idea that could change the world, or at least help a lot of people? Google wants to hear from you -- and it will pay as much as $10 million to make your idea a reality. The ambitious Internet giant is launching an initiative to solicit, and bankroll, fresh ideas that it believes could have broad and beneficial impact on people's lives. Called Project 10^100 (pronounced "10 to the 100th"), Google's initiative will seek input from the public and a panel of judges in choosing up to five winning ideas, to be announced in February. "These ideas can be big or small, technology-driven or brilliantly simple -- but they need to have impact," Google said in a news release. "We know there are countless brilliant ideas that need funding and support to come to fruition." People are encouraged to submit their ideas, in any of 25 languages, at www.project10tothe100.com through October 20. Entrants must briefly describe their idea and answer six questions, including, "If your idea were to become a reality, who would benefit the most and how?" The project's Web site suggests that successful ideas should address such issues as providing food and shelter, building communities, improving health, granting more access to education, sustaining the global ecosystem and promoting clean energy. By opening the project to anyone -- not just laboratories or universities -- Google is embracing "crowdsourcing," the Internet-age notion that the collective wisdom of mass audiences can be leveraged to find solutions to design tasks. Those who submit winning Project 10^100 ideas will not be required to have the technical expertise to implement them.
Treasury Secretary Paulson's edict to create a $700 billion fund to buy worthless mortgage securities from agitated wealthy bond investors is nothing short of a final step on the path to the end of the republic. The secretary claims he can only be effective if his decisions are beyond judicial review. Our government and its owners appear to be testing how much the American public will tolerate. A few years ago, no one could have imagined that the silent majority would quietly accept thefts of this magnitude from a government that stopped tiny payments to single mothers with poor children in the name of welfare reform because the program's $10 billion cost was breaking the federal budget. If the public allows this theft, then it will signal to powerful forces that they can essentially do anything, because the American public has become so mushy-headed that it will stand up for nothing. When power discovers that those from whom it would exact payment are powerless, its viciousness increases infinitely. Our enemy has revealed itself, and it is our own government. Because the American public has not been introduced to methods for controlling its government for generations, I will suggest one called a general strike. This fundamental democratic power is where everyone decides to send a message to the government by not going to work, to school, shopping, nowhere. This is the critical time when charlatans among us will promise they can save us from the inevitable if we only allow them the power they need to save us. They are lying.
Note: This article's author Sean Olender is an attorney in San Mateo, California. Mr. Oleander predicted the bailout of Fannie Mae and Freddie Mac months before it happened based on clearly disempowering moves by the government. To see his prescient article on this from Feb. 2008, click here.
The market was 500 trades away from Armageddon on Thursday [September 18], traders inside two large custodial banks tell The Post. Had the Treasury and Fed not quickly stepped into the fray that morning with a quick $105 billion injection of liquidity, the Dow could have collapsed. According to traders, who spoke on the condition of anonymity, money market funds were inundated with $500 billion in sell orders prior to the opening. The Fed's dramatic $105 billion liquidity injection on Thursday (pre-market) was just enough to keep key institutional accounts from following through on the sell orders and starting a stampede of cash that could have brought large tracts of the US economy to a halt. Cracks started to show in money market accounts late Tuesday when shares in one fund, the Reserve Primary Fund - which touted itself as super safe - fell below the golden $1 a share level. By Wednesday, banks sensed a run on their accounts. They started stockpiling cash in anticipation of withdrawals. Banks, which usually keep an average of $2 billion in excess reserves earmarked for withdrawals, pumped that up to an astounding $90 billion, Lou Crandall, chief economist at Wrighton ICAP, told The [Wall Street] Journal. And for good reason. By the close of business on Wednesday, $144.5 billion - a record - had been withdrawn. How much money was taken out of money market funds the prior week? Roughly $7.1 billion, according to AMG Data Services. By Thursday, that level ... had grown to $100 billion.
Note: For insight into the banking and financial powers that runs today's governments, click here.
Important Note: Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.