Income Stream: No Bankers Charged In The Crime Of The Century; Do We Have Any Honest Politicians Left?
1. Enable trillions of dollars in mortgages guaranteed to default by packaging unlimited quantities of them into mortgage-backed securities (MBS), creating umlimited demand for fraudulently originated loans.
2. Sell these MBS as “safe” to credulous investors, institutions, town councils in Norway, etc., i.e. “the bezzle” on a global scale.
3. Make huge “side bets” against these doomed mortgages so when they default then the short-side bets generate billions in profits.
4. Leverage each of actual capital into 0 of high-risk bets.
5. Hide the utterly fraudulent bets offshore and/or off-balance sheet (not that the regulators you had muzzled would have noticed anyway).
6. When the longside bets go bad, transfer hundreds of billions of dollars in Federal guarantees, bailouts and backstops into the private hands which made the risky bets, either via direct payments or via proxies like AIG. Enable these private Power Elites to borrow hundreds of billions more from the Treasury/Fed at zero interest.
7. Deposit these funds at the Federal Reserve, where they earn 3-4%. Reap billions in guaranteed income by borrowing Federal money for free and getting paid interest by the Fed.
8. As profits pile up, start buying boatloads of short-term U.S. Treasuries. Now the taxpayers who absorbed the trillions in private losses and who transferred trillions in subsidies, backstops, guarantees, bailouts and loans to private banks and corporations, are now paying interest on the Treasuries their own money purchased for the banks/corporations.
9. Slowly acquire trillions of dollars in Treasuries–not difficult to do as the Federal government is borrowing .5 trillion a year.
10. Stop buying Treasuries and dump a boatload onto the market, forcing interest rates to rise as supply of new T-Bills exceeds demand (at least temporarily). Repeat as necessary to double and then triple interest rates paid on Treasuries.
11. Buy hundreds of billions in long-term Treasuries at high rates of interest. As interest rates rise, interest payments dwarf all other Federal spending, forcing extreme cuts in all other government spending.
12. Enjoy the hundreds of billions of dollars in interest payments being paid by taxpayers on Treasuries that were purchased with their money but which are safely in private hands.
Charles’ conclusion does not need further commentary as it is absolutely spot on:
Since the Federal government could potentially inflate away these trillions in Treasuries, buy enough elected officials to force austerity so inflation remains tame. In essence, these private banks and corporations now own the revenue stream of the Federal government and its taxpayers. Neat con, and the marks will never understand how “saving our financial system” led to their servitude to the very interests they bailed out.
If you’re going to cut-and-paste from the internet (specifically http://www.care2.com/c2c/groups/disc.html?gpp=23223&pst=1130741 ), you should at least have the morals to properly cite the original author rather than claim it as your own.
We have Ron Paul, but by being honest he’s been dismissed as "crazy".
yes
Um hello if gubment had not interfered in the first place via CRA then the bankers would not have needed to "hide" the faulty mortgages.
The Dems who run Fannie and Freddie should all be in jail. They FORCED the bankers to give out those bad loans. ACORN sent blacks to picket banks that actually wanted to act responsibally!
And, throughout the entire meltdown, we had Democrats staunchly defending the practices and management of Freddie and fannie. Where are the charges against them?
Don’t be surprised, Politicians and Bankers sleep in the same bed
i’d say 20-30% of politicians are honest. too many stupid people in america that require pandering keep more serious candidates out of office. it seems that most of the politicians who are honest come out of gerrymandered districts where everyone is either a democrat or republican. that’s the only time someone who is intellectually serious can get elected since they don’t have to pander to idiotic, uninformed independents.
Best question I ever saw on Lonely Answers Club.
Washington DC is a Wh*rehouse where the Bankers are the Johns.
They pay the piano player (not Harry S Truman anymore, too bad), and they dance with the girls, and also Bawney F*gs.
The Supremes have decided that this is really not bad enough. It could be made even worse if all corporations were allowed to give infinite cash to all politicians.
Down, down down, into the dust went McCain Feingiold. Elena Kagan’s finest hour, and John McCain’s, but it was an hour of dismal defeat at the hands of an extremist, radical, revolutionary, activist Supreme Court who want to bring back the Herbert Hoover Era, and show that FDR was wrong in all that he did.
Now come the Robber Barons — "No jailtime for us, in fact you should let the Enron people out too!"
A farrago of evil, and carnival of deceit, and funhouse of upside down and backwards policy.
G.W. Bush was the ringmaster, with the whip and the tophat, but now he’s gone, and Obama has picked up the whip and tophat, and he conducts the circus just the same as G.W. Bush — never missed a beat.
Bought and Paid for — Trillions in Cash Talk — Justice walks. Campaigns are expensive, people are poor now, so they are not giving as much, gotta get it from somewhere, or can’t get on TV — the ultimate reality — don’t want to be left out in the cold.
It’s not the poor that have figured out they can vote themselves money that are our real problem, it’s the banks that have discovered that in the Washington DC Wh*rehouse the Johns are Kings and rule utterly.
Is there a single man in Washington ready to stand up to the banks?
Will no citizen take action against them?
Is no lawfirm ready to bring a class action on behalf of humankind against them.
Where are my old Ranger buddies. Do they still have their black rifles?
Never in the history of the world has a small group of weak persons used the law to create greater harm to more citizens. It’s never happened before. We are in the midst of it, and we are torpified, paralysed, hapless, stonkered, it’s like we were injected with National Curare Hypodermic.
I say use Gitmo. It’s six times the size of Allenwood. It doesn’t have better tennis courts but it will hold all the criminals. They can cheat each other at cards.
Short Answer: Obama is a "Me too" extension of G.W. Bush, just the new piano player at the National Wh*rehouse, so naturally it’s bad bad Arizona that needs to be prosecuted, not any of the evil fiends that brought us the economic collapse of planet Earth. Your question is the best one I ever saw on Yahoo Answers.