Is Congress Dumb as Dirt or just Criminals?
First it’s important to understand the financial crisis at hand. The World Economy is in a perfect storm because of the nature of banks and lending. There are assets and there are debts. Currently the banks have lent out more money than they have as collateral or a prudent reserve. So if there was a run on banks, the banks would not have the liquidity to pay “the little people” the money that they had deposited and entrusted in the banks.
Bank Deregulation Sets Stage for Debt Crisis
When Clinton deregulated banks as a precursor to this Perfect Storm, esoteric derivatives were growing from a $100 million gambling arena to $65 Trillion in around 6 years. But the CDS debt casino was only meant to be that, just a playground for financiers to make insane amounts of money. They never imagined that the insurance they were providing as a hedge on debt would ever be collected. That would only happen if the US Economy was ready to collapse entirely or even more unthinkable, that the American Tax Payer would catch on to their plan and not bail them out.
Well guess what folks, the unimaginables happened.
The folks at JP Morgan Chase, aka Rockefeller Central, had planned a more orderly purchase of all its regional and investment bank competitors, but the storm was greater than they expected. So they directed the Federal Reserve to pump hundreds of billions of dollars of liquidity into the world economy, pretending to believe that if a company was borrowing money because they were loosing it hand over fist, that another loan would solve the problem. They would make up for the losses with volume.
They did have the plan all along to put all control for mopping up the financial sector with Treasury Secretary Paulson, so that he could make unilateral decisions for the American Tax Payer that would be done behind closed doors and was not subject to any court of law. They just didn’t expect it to happen before the election. But everything that has a beginning has an end.
As with the Savings and Loan Crisis, a previous transfer of wealth created by the Central Banks so that competitors could be purchased for pennies on the dollar, the Sub-Prime Mortgage Crisis was designed to steal from the poor, especially the middle class, and give to the rich, especially greedy bastard bankers at the New York Central Bank.
Money was loaned to homeowners and businesses that would predictably default on their loans. And then hedge insurance was purchased to protect banks in case the loans defaulted. And then the insurance policies were traded in a “good old boy” network of financiers, as if they were sports trading cards, all in off- balance sheet companies. These were capitalized at a fraction of the amount necessary to cover the defaults that they knew would occur. Because every greedy bastard knows that off-balance sheet companies are where you hide profits, not losses.
Because why capitalize the casinos, if the American Tax Payer, will assume the entire burden of the defaulted loans, that the bankers made money on when they loaned the money in the first place, then made money consolidating loans into an investor bundle called JUNK BONDS, and then made money when the CDS was purchased from AIG, and then made money each time the gambling bet was passed around. Well you get the idea.
So when the “shoe dropped” at the beginning of the Sub-prime crisis, the tax payer, pumped a trillion dollars of liquidity into the market, gave themselves a $300 Billion economic stimulus loan to be paid back in future taxes plus interest. They bailed out the greedy bastard mortgage brokers Fannie Mae and Freddie Mac, taking on a negative balance sheet and doubling the National Debt obligation in one fail swoop. But that didn’t stop the freefall markets so they loaned money to Morgans and Rockefellers to purchase Lehman Brothers and Bear Stearns for pennies on the dollar.
But then the problem was that there was all this transparency, and the ordinary shareholder who purchased Lehman Brothers for $159 saw that JP Morgan Chase got that share for $2.38 a share and was upset. And the SEC helped them do it, in fact, they helped them plan it. In fact, the SEC created PUT Options with a $22 strike price on Lehman Brothers, so that the Rockefellers could buy it for less than two pennies on the dollar, and make an insane amount of money betting on its inevitable demise.
And so after being the only candidate for buying these attractive assets for next to nothing on both Bear Sterns and Lehman Brothers, the need for creating a secretive asset transfer machine became more imminent. So they proposed to Congress a vehicle to transfer assets into a secret fund inside the Treasury where this highway robbery could be done with more discretion and most importantly, outside of the law.
So the Treasury Secretary and Federal Reserve Chairman go onto the Matrix Screen and tell the people that the way to solve all the debt problems is to borrow more money, which they will be happy to provide for just a small amount of interest for the rest of your lives and your children’s lives.
After all, insurance companies only need to pay if it’s for a car collision or something like that. Not something dumb, like Trillions of dollars worth of mortgage and debt defaults. It’s kind of like a pre-existing condition for medical insurance. The bankers knew the tax payers would bail them out, so they never planned to pay for the defaults anyway. That’s why those off-balance sheet corporations didn’t need liquidity.
The speedy collapse of AIG was a surprise to the greedy bastards who used financial models to predict their gambling ventures. But they had not anticipated what are commonly called Acts of God. You see, many of these insurance companies, wrote insurance on Force Majeure, and well, its been a busy hurricane season, both in the Gulf and on Wall Street. Congress and President Bush have violated the Constitution and broken numerous criminal laws by not disclosing the true state of the economy.
The bailout of Bear Stearns, Lehman Brothers, AIG, Fannie Mae and Freddie Mac is a bailout with a scope of $65 Trillion worth of exposure, not one or two Trillion dollars. The urgency to pass the bailout and to process the asset carvings secretly is because if the American People knew how much was at risk they would want to shoot the President.
And Congress, the Cabinet and pretty much nuke all of DC.
If the public makes a bet on a business, house purchase, stock or loan, and they are wrong, there is nobody to bail them out. They loose their money. But if a Forbes 100 banker gambles with depositors money and loses, it’s the depositor that ends up being responsible, twice. First when he looses his deposit for everything over the FDIC limit, and second by being forced a tax burder for the rest of his life when the bankers friend at the Treasury Department pushes a bailout through Congress so the depositors children and children’s children are responsible for it.
Isn’t it time for a Military Solution to a Financial Problem?
