Reply #38: This is an inside job

[soryang]

But it goes much further than GS. MK oversimplifies it but such is the nature of media. Mortgage backed securities are fraudulent by their very nature. So are CDOs. But they were sold to compensate for the huge amount of balance of payments deficit capital making its way overseas per the globalist free trade dogma to arbitrage labor and get rid of American labor standards. US industry/capital was exported to the cheapest labor markets. Something had to be done to repatriate that capital or face economic collapse much earlier at home. Such events expose the true nature of so called "free trade" as so much bs. Since we had no capital industry left at home, and unemployment was raising its ugly head, building real estate assets was sought as the remedy and then selling the debt instruments overseas. The average mortgage instrument which is a secured instrument is too small and cumbersome to sell on the scale needed. MBSs and CDOs lost their secured status when aggregated in massive tranches as financial instruments. Since they were no longer backed by mortgages when aggreg ated nor UCC instruments for other CDos, the credit default swap contract was invented to circumvent insurance regulations to "back" the instruments fraudulently labelled as securities. The credit default contracts were meant to instill confidence in the fraudulent CDOs and MBSs for foreign investors.

This scheme was dreamed up by the top financial families in America. Those families that have been ruling America since the industrial revolution. We all know the names. The institutions involved include AIC, AIG and CITI, and Merril, and GS and MS and whatever other investment banks and insurance institutions were induced to participate in this scheme. Foreign investment banks are also involved. The scheme began to collapse when the real estate market started to fail. Foreign institutions demanded payment on their MBSs. Those holding the credit default swaps were immediately revealed to be bankrupt and without reserves, an insurance law violation. Credit froze almost instantly on world markets. The ruling US elites immediately had Paulson arrange for FIDC protection for investment banks and had Treasury guarantee payment of fraudulent credit default swap derivatives and the underlying fraudulent mortgage backed securities and collaterallized debt obligations.

Insiders like GS and MS realized additiional huge profits by speculating in CDS derivative markets when they didn't even hold the insurable interest in the underlying securities. Geithner's function is a huge cover up of the underlying RICO conspiracy (say concerning AIG, and GS and MS). No audits by Congress, no grand juries, no justice investigations, etc.

The circle is complete by transfering all regulatory functions to a private body with no transparency the FED. This is a coup d'etat. The Treasury of the United States is now operated for the benefit of small number of finance capitalists. No reinstatement of Glass Steagal; no elimination or restrictions on the fraudulent derivative/credit default swap markets and above all no prosecutions of the principals.