There Is a Complete Breakdown of Confidence in Washington

July 17, 2008 (LPAC)--The international banking and financial system is spiraling into oblivion at an accelerating rate, and the leading institutions in Washington have no confidence whatsoever about what to do. "There is no confidence, that I've detected, around the administration," Lyndon LaRouche stated categorically yesterday.

"There is a complete breakdown, no signs of confidence in the administration--none! They've run out of visible options. It's that simple. They have no solutions, no idea of what the hell to do. They're not even hoping."

LaRouche was totally dismissive of press reports of "confidence-building measures" being taken. "Maybe some people are trying to spin it, but it's not there. It may be that some of the editors are trying to talk about `confidence,' but they're not paying attention to what people are really saying. The institutions are not confident; there is no boola-boola-boola. It doesn't exist! The press are just lying their heads off as a last gasp."

The reality, LaRouche reiterated, is that "the institutions have no solution, they have no confidence, they have no belief that sweetness is just around the corner."

With the bankruptcy of IndyMac, and the meltdown of mortgage giants Fannie Mae and Freddie Mac, panic is beginning to spread about the entire banking system. And Europe is disintegrating even more rapidly than the U.S., LaRouche warned. FDIC chairman Sheila Baer tried to convince the public yesterday that "you don't have to worry about the safety of your account" if it is under the $100,000 maximum that the FDIC insures, but even government statistics indicate that a full third of total deposits in the banking system are uninsured--that's $2.6 trillion.

"The FDIC obviously can't handle the situation," LaRouche said. "Most of what's out there is not insurable. The FDIC worked when the system was of a different nature. If the system is going up, and you have fall-outs, then you can always find a way of switching the stuff around. But, if the system is collapsing, systemically, then it's not going to work. That has always been the problem. The problem is that, in the past when you got into a situation like that, before it came to that point, you would change the policy. This time they didn't change the policy!"

"The fact remains," LaRouche concluded, "that there is no confidence. There is no solution coming from these guys. There is not a glimmer of hope in any of it, from any of them."