Sunday, October 11, 2009
In Michael Moore's new film Capitalism: A Love Story, Congresswoman Kaptur says there has been a financial coup d'etat, and that Wall Street - rather than Congress - is in charge.
In a must-watch interview with Bill Moyers broadcast Friday night, Kaptur also said:
- The Federal Housing Agency used to insure 1 in 50 mortgages. But FHA now insures 1 in 4 mortgages, as the debt for bad mortgages has been dumped on the American people
- "Banks have the power to create money". This again confirms and verifies that banks create money out of thin air, not based on the amount of reserve deposits on hand. See this and this
- While - on paper - there are reserve requirements, banks have gone from 10 to 1 leverage (where they could lend out 10 times their reserves) to - in the case of JP Morgan - 100 to 1 leverage. But with derivatives, leverage might be much higher
- Instead of holding hearings on the core problems with the financial system, Congress is holding hearings solely on arcane, peripheral issues