You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Reply #26: Financial terrorism: US taxpayers bail out Wall Street criminals [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
Octafish Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-22-08 09:57 AM
Response to Reply #6
26. Financial terrorism: US taxpayers bail out Wall Street criminals
From Jerry Mazza at Online Journal:



Financial terrorism: US taxpayers bail out Wall Street criminals

By Jerry Mazza
Online Journal Associate Editor
Analysis
Sep 22, 2008, 00:21

In the weeks surrounding the anniversary of 9/11, the most terrifying attack on Americas soil, another attack on Americas citizenry is taking place: the systematic looting of the US Treasury to bail out American financial institutions.

After degrading the stock and stealing the floundering Bear Sterns, then handing the institution and its physical building to JP Morgan, the FED and US Treasury, the financial fronts of the US government, decided to bail out Fannie Mae and Freddie Mac. While allowing Lehman Brothers to drown on its own, and Merrill Lynch to scuttle under the wing of the Bank of America, curiously the F & T (Fed and Treasury) saw fit to answer AIGs call for a $30 billion bridge loan with an $85 billion bailout. This all happened while Morgan Stanley is pow-wowing with Wachovia to merge.

At the root of all this financial disaster, we are told, is bad debt paper, unsecured loans, bad mortgages, irresponsible handing out of monies to unfit borrowers by mortgage companies, banks, and others who should have known better but for their greed, their criminality, and the lack of effective overriding controls. But then lenders made their commissions, their profits, had a heyday with the housing bubble until it burst around them and nobody handed back a buck as the crappy debt paper hit the fan and began to infect the world.

It turns out the banks had no problem passing the debt paper upwards to be collateralized by investment banks into securities, preferred stocks and bonds. And the central banks had no problem sucking it up. The entire financial system took part in this orgy, knowing full well that without protection it could catch the financial AIDS virus that could spell death to our financial system. But they succumbed to their cash-lust against all their well-credentialed wisdom.

Now the Fed is throwing still more money into securing money market funds, whose buck was busted yesterday, yielding 97 cents on the dollar. So your money is safe nowhere, that is without some pig somewhere getting a piece of it; that is whoever is behind this incredible manipulation. Of course, in an election year it behooves the masters of debt, the Bush administration to rush in and now borrow from the US taxpayers, from our Treasury, to bail out these sorry corporate flops. But then borrowing comes natural to Bush & Company.

As Paul Craig Roberts pointed out in his Online Journal article, US economy: rudderless and reeling from direct hits, Most Americans, including the presidential candidates and the media, are unaware that the US government today, now at this minute, is unable to finance its day-to-day operations and must rely on foreigners to purchase its bonds. The government pays interest to foreigners by selling more bonds, and when the bonds come due, the government redeems the bonds by selling new bonds. The day the foreigners do not buy is the day the American people and their government are brought to reality. This is not the position of a superpower.

Roberts is the former assistant secretary of the Treasury during President Reagans first term; the former associate editor of the Wall Street Journal; and author of numerous books on economics, American government and Washingtons perverse insider mentality.

CONTINUED...

http://onlinejournal.com/artman/publish/article_3773.sh...



Hey, dicksteele! The same goes back at ya'! Thanks also for giving a damn, my Friend!
Printer Friendly | Permalink |  | Top
 

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC