I am covering just three stories in the Weekly News Wrap-Up, but they are big ones. They are the Cyprus bailout, Obama and his Middle East trip, and the Fed’s decision to keep on printing. The EU is getting very tough with Cyprus and its banking crisis. It is demanding it pay in some way for part of the bailout of its troubled banks. There are several plans afoot, and they all include someone losing deposit money. One plan says it will now protect all “insured” accounts, but that means billions in uninsured money is up for grabs. The uninsured money, no doubt, belongs, in part, to the Russians who are mad as hell they are being fleeced. The Cypriot government said the banks would re-open this week but put that off until next week. Who knows how this will all shake out, but I cannot see how there is not going to be a run on those banks when they re-open. There are simply going to be some bank failures. One Russian billionaire thinks this may turn into another Lehman event that could cause another financial meltdown. Lehman was the fourth largest investment bank before it went belly up five years ago. Financial analyst Greg Mannarino says, “Cyprus is the spark that could light the fuse that sets the Euro Zone on fire.”
President Obama is in the Middle East this week. He gave a speech in Israel, and I must say, it was one of his best speeches. It was a masterpiece. I thought it was very fair to both Israel and the Palestinians. It did not erase the massive problems there. Hamas was barely brought up. There is a cease-fire there and nothing more. Syria is in a full blown civil war, and it seems to be spreading beyond its borders. The President talked about the need for diplomacy with Iran’s nuclear program but did not mention any new ways to get the Iranians to comply. Iran is not backing down on its nuclear program as far as I can see. The President did say the same thing he’s been saying for months, and that is all options are on the table and time is not unlimited.
I don’t see a happy ending here after President Obama recently said Iran could have a nuclear weapon in a year and he “didn’t want to cut it too close.” Meanwhile, Iran’s leader says if it is attacked, it will level Tel Aviv and other Israeli cities. We are not on a path to peace!
Finally, let’s look at the Federal Reserve’s decision to keep on printing money to prop up the banking system, stock market and the economy. The mainstream media is portraying this as something very good. Look at this USA Today headline from Thursday, “Fed Keeps Goosing Economy.” There is never a mention by the MSM that there could be and is going to be a downside to this. The downside is called inflation, and it looks like this is not going to end anytime soon. By the way, Fed chief Ben Bernanke says stocks are not in a bubble. Remember when he said the housing market was not in a bubble several years ago? You saw how accurate that assessment was.
Join Greg Hunter for his analysis on these stories and more in the Weekly News Wrap-Up.
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Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.