Bankruptcy of U.S. is ‘Mathematical Certainty,’ Says Former CEO of Nation's 10th Largest Bank

Bankruptcy of U.S. is ‘Mathematical Certainty,’ Says Former CEO of Nation's 10th Largest Bank

Thursday, November 04, 2010
By Terence P. Jeffrey

http://www.cnsnews.com/news/article/former-bbt-ceo-bankruptcy-us-mathematica


(CNSNews.com) - John Allison, who for two decades served as chairman and CEO of BB&T, the nation's 10th largest bank, told CNSNews.com it is a “mathematical certainty” that the United States government will go bankrupt unless it dramatically changes its fiscal direction.

Allison likened what he sees as the predictable future bankruptcy of the United States to the problems at Fannie Mae and Freddie Mac, whose insolvency he also said was foreseeable to those who studied their business practices and financial situation.

“I think the first thing we have to realize is where we’re going and to face it objectively,” Allison told CNSNews.com, when asked about the trillion-dollar-plus deficits the federal government has run for three straight years, the more than $13 trillion in federal debt, and the $61.9 trillion long-term shortfall the government faces (according to the analysis of the Peter G. Peterson Foundation) if the government is to pay all the benefits it has promised through entitlement programs.

“If you run the numbers, on all those numbers that you just talked about, which I think are accurate, very accurate, in 20 or 25 years, the United States goes bankrupt,” said Allison. “It’s a mathematical certainty.

“It reminds me very much of that story I told you about Freddie Mac and Fannie Mae,” said Allison. “We were running the numbers, and Freddie Mac and Fannie Mae went bankrupt, and we got there. In 20 or 25 years, the United States goes bankrupt.

http://www.cnsnews.com/news/article/former-bbt-ceo-bankruptcy-us-mathematica

Goldmangate: Goldman Sachs employees have given 69 % of their political contributions to Democrats, slightly down from 2008, when they gave 75 % to Democrats

Obama claims opponents of his so-called financial reform bill are on the side of the big banks. But in fact the big banks are on his side. The Center for Responsive Politics (CRL) reports Wall Street has given 63 percent of its political contributions this cycle to Democrats, up from 57 percent in 2008.


Goldman Sachs employees have given 69 % of their political contributions this cycle to Democrats, only slightly down from 2008, when they gave 75 % to Democrats -- including nearly a million dollars to Barack Obama and $112,400 to Senate Banking Committee Chairman Chris Dodd. Dodd is now retiring instead of facing voters because of his own involvement in a housing-related scandal, a sweetheart loan Countrywide gave him.
 
Blankfein supports financial reform legislation

http://thehill.com/blogs/on-the-money/banking-financial-institutions/94735-blankfein-supports-financial-reform-legislation

By Vicki Needham - 04/27/10 06:45 PM ET

A financial regulatory reform bill has at least one supporter outside of Congressional Democrats, Lloyd Blankfein, the head of investment bank Goldman Sachs.

"I'm generally supportive," Blankfein told the Senate Permanent Subcommittee on Investigations.

Wall Street will benefit from the bill because it will make the market safer, Blankfein said.

"The biggest beneficiary of reform is Wall Street itself," he said. "The biggest risk is risk financial institutions have with each other."

American consumers also would benefit from better regulations, he said.

Blankfein said he didn't know all the bill's details and couldn't speak to provisions that affect community and consumer banks and mortgage originators because they are "remote" to our experience.

http://thehill.com/blogs/on-the-money/banking-financial-institutions/94735-blankfein-supports-financial-reform-legislation

time to man up?

Chinese warm on US debt, while some US financial institutions fight to return TARP funds. It seems the strings were just too great and there is just too much government interference for some to stomach. The wholesale branding of all bankers who take the money as crooks put many legit unaffected institutions over the edge and they have now given the treasury the resounding “take your TARP and shove it “!

Previous warnings to the Obama administration from China and Russia on the evils of socialism have so far gone unheeded ,But now you have more signs of the a growing concern of both allies and trading partners with many of the new administrations policy’s. It is no coincidence that China, the US’s largest debtor picks this time to extend its warning on the administrations policy of borrowing to borrow.

One wonders if Senators Charles Grassley will take his own advice. I would suggesting instead of just withholding bonuses form AIG employees Congress should set and example and forfeit there own pay for the foreseeable future.
Given the gross incompetence and the all the effort to cover up the fact that Congress aided and abetted the creation of the sub prime crisis or some would say created the sub prime crisis it seems only fair that the chief instigators would take a leadership role admit their folly fess up and fall on the sword ? Come on Senator Dodd and Frank time to man up.