DEFAULT IS OBAMA'S MANUFACTURED CRISIS.... A MASSIVE STOCK SELLOFF IS THE TARGET !!!!

http://www.newsmax.com/InsideCover/obama-stock-selloff-gasparino/20...

Gasparino: Obama Wants Massive Stock Sell-off


Tuesday, 26 Jul 2011 03:32 PM


By David A. Patten

Why is
the Obama administration publicly warning about a U.S. default, while at the
same time privately reassuring U.S. banks that a default won’t occur?

Fox
Business Network senior correspondent Charlie Gasparino, who broke the story
that the White House has been privately reassuring the banks, thinks he knows
the answer.

“I think the administration is being really duplicitous in
this,” Gasparino told Fox News host Martha MacCallum Tuesday afternoon. “Listen,
we know that we don’t have to default. I’m not saying the other scenario is
pretty, but we know they don’t have to default.

“Why are they saying
it?” he asked. “I believe they’re saying it to get the markets insane, to
basically cause a massive sell off … that’s the only thing you can surmise from
this. Why do you keep bringing up default when they don’t have to default?”


For months the administration has been warning that equity markets would
nosedive if Aug. 2 approaches without an increase in the debt ceiling. The goal
apparently was to increase the sense of urgency in order to motivate Congress to
act.

Lately, however, there have been indications that strategy is
backfiring for the president even among supporters.

“The administration
may have made a strategic mistake in warning too soon that the market would
react negatively,” financial columnist Andrew Ross Sorkin wrote in Tuesday’s New
York Times. “It ultimately undercuts the government’s negotiating position
because the doomsday scenario has not played out, even though the deadline is
fast approaching.”

With the administration’s self-imposed Aug. 2 deadline
now looming just six days away, Wall Street appears unconcerned.

There
has been increased volatility in international markets. If the drumbeat of
pessimistic public warnings caused a massive stock selloff, it would give the
administration much more leverage in its negotiations with grass-roots
conservatives in Congress. And that, Gasparino appeared to be suggesting, is
precisely the administration’s objective.

Gasparino also told MacCallum
that Treasury Secretary Timothy Geithner is talking out of both sides of his
mouth, privately telling banks not to worry about default in private while
invoking sturm and drang in public.

“That’s exactly what’s going on,” he
said.


Read more on Newsmax.com: Gasparino:
Obama Wants Massive Stock Sell-off
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