Posts Tagged ‘Bail Out’

“Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” – John Maynard Keynes, 1919

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” – Ludwig Von Mises, Human Action, a Treatise on Economics, (Fox & Wilkes, 4th rev. ed., 1963)

Spread this video around people.

Former government employees (FDIC, HUD, Treasury, etc.) along with former banking employees, open up their own asset management company or become affiliated with a successful one. The FDIC closes down a “bad” bank with not enough clout to remain open. The FDIC with bankroll from the Treasury, sends the book of real estate to the asset manager at written down levels. The asset manager has to come up with 15% cash, and the rest is financed by the feds at dirt cheap rates. Until the loan is paid off, the feds are 50% partners in the equity of the property going forward, however….they cover most of the potential loss going forward, as well as cover a 1% management fee on the value of the asset.

Now….the asset manager needs to raise cash in order to gobble up these sweetheart deals. How do they do this? By courting money from THE SAME BAKS THAT HAVE BEEN BAILED OUT OF THEIR OWN UNDERWATER PROPERTIES AND ARE NOW SITTING ON HUNDREDS OF BILLIONS OF TAXPAYER HANDOUTS!!!

That’s right……the Goldmans and JP Morgans of the world force the closure of direct competition, have their own losses covered by taxpayer money after they ditch the mortgages they want to, get to carry their own books at whatever level they want to, then go back into the market and scoop up THESE SAME PROPERTIES along with those of freshly deceased banks at a new gutted price.

Not only are they picking these assets up at a reduced level, but they are getting near 0% loans to do it with. Oh…and to top it off, the asset management company will pay them close to 10% in order for the investor to come up with the 15% cash down payment. In return, the asset management gets a fee and they then split the remaining equity on the deal with zero risk to themselves. If a property value is underwater or can’t sell….no big deal because the entire nut is being financed with government free money….but if it is doing well, the management group will pay off the loan in order to get the feds out of their equity position….then go and sell the assets for a profit which they split with their investor who financed the whole thing with bailout money!

Read full article at : http://scrumpthetexan.blogspot.com/

“Fascism should rightly be called Corporatism as it is a merge of state and corporate power.”~ Benito Mussolini.

Well, I feel so much better.

Just a short viewing of the controlled Corporo-Governmental Media has assured me that “Recovery” is happening now.

I think I’ll just go right out & buy a few stocks.

DO NOT BELIEVE THE LIE

You are being lulled into a state of sleep… a dangerous place where the Nightmares are REAL, the Damage is PERMANENT, and Escape is NO LONGER POSSIBLE.

Administration following Administration has been “infiltrated”… and I put that in quotes because infiltration suggests that it wasn’t intentional…

By Criminal Banksters that are transforming our World into a completely controlled Fascist-Ruled Serf society.

Don’t think so?

Just wait. Do what you can to prepare yourselves. Don’t be caught unaware.

Remember, a HUGE number of Americans lost FORTY PERCENT of their total Net-Worth just one year ago… which means that you still have SIXTY LEFT TO LOSE.

Wake Up
Scrump

The Articles

One French super-bank (who received 11 Billion of U.S. Taxpayer money) is *sort of* telling the truth… *sort of*, because it’s not going to take two years…

Société Générale tells clients how to prepare for potential ‘global collapse’
By Ambrose Evans-Pritchard
Published: 6:12PM GMT 18 Nov 2009

Société Générale has advised clients to be ready for a possible “global economic collapse” over the next two years, mapping a strategy of defensive investments to avoid wealth destruction.

In a report entitled “Worst-case debt scenario”, the bank’s asset team said state rescue packages over the last year have merely transferred private liabilities onto sagging sovereign shoulders, creating a fresh set of problems.

Overall debt is still far too high in almost all rich economies as a share of GDP (350pc in the US), whether public or private.

It must be reduced by the hard slog of “deleveraging”, for years.

“As yet, nobody can say with any certainty whether we have in fact escaped the prospect of a global economic collapse,”…
www.telegraph.co.uk

The unemployment numbers are MUCH worse than are being reported… this is “Recovery”?

The worst is yet to come: Unemployed Americans should hunker down for more job losses
BY Nouriel Roubini
Sunday, November 15th 2009, 4:00 AM

Think the worst is over?

Wrong.

Conditions in the U.S. labor markets are awful and worsening.

While the official unemployment rate is already 10.2% and another 200,000 jobs were lost in October, when you include discouraged workers and partially employed workers the figure is a whopping 17.5%.
www.nydailynews.com

And the Housing collapse?

It’s not only not getting better… It’s getting worse

Mortgage delinquencies hit another record in 3Q
Nov 17, 6:50 AM (ET)By EILEEN AJ CONNELLY

NEW YORK (AP) – The pace at which people fell behind on their mortgages slowed during the summer for the third consecutive quarter, but the overall delinquency rate hit another record, a new report shows.

For the three months ended Sept. 30, 6.25 percent of U.S. mortgage loans were 60 or more days past due, according to credit reporting agency TransUnion.

That’s up 58 percent from 3.96 percent a year ago.

Being two months behind is considered a first step toward foreclosure, because it’s so hard to catch up with payments at that point…
apnews.myway.com

Things are looking strangely familiar

Post-Lehman Deja Vu As T-Bill Yields Turn Negative
Submitted by Tyler Durden on 11/19/2009 15:22 -0500

The last time Bill yields turned negative (in essence investors paying the Government to hold their money for them) was in the days after the Lehman bankruptcy, when the entire world was about to blow up.

So why did Bill yield for January maturity just turn negative once again? In other words, why are investors suddenly running for the hills? As Dow Jones reports, January and February bills hit a yield of -0.03% earlier.

Some explanations have to do with Bill scarcity, as nobody wants to be exposed to anything beyond 3 months down the curve, let alone 1 year.

However, the fact that bond investors may not be buying into the whole recovery BS (or just realize that there is nobody willing to roll near-dated treasurys into longer-tenor pieces of paper) and are once again running scared and willing to pay Ben Bernanke to hold their money for them should be very, very troubling…
www.zerohedge.com

The plot has thickened over the connections between the former US Treasury Secretary Hank Paulson and his former company Goldman Sachs. It centers on the decision made to bailout AIG, which saw some $13 billion of US taxpayers money go to Goldman, its biggest counter-party. On this blog last week I wrote:

‘Fascinatingly, Mr Paulson was aware of the potential for a conflict of interest in those decisions so he went to the lawyers. “It would have been wrong to rescue myself, so I got a waiver from the ethics agreement from the Government ethics office,” he recently told Congress, in little-reported remarks.

That waiver has now been published here after sterling investigative work from the New York Times. It can be viewed here.

It was granted by a White House counsel on the day of the decision about AIG, which is not the normal course of events according to the New York Times. The newspaper also found out through freedom of information about the disproportionate number of telephone calls being made by Paulson to Lloyd Blankfein, Goldman’s CEO at the time of the bailout.

Article By Thomas R. Eddlem

Newspapers are fixated upon $160 million in bonuses given to American International Group (AIG) executives. And it’s nice to know where the millions are going (note: the bonuses could have been canceled had the federal government let the company go bankrupt, as officials should have). But where are the trillions in TARP, TALC and Federal Reserve Bank bailout funds going?

The man in charge of administering the bailouts is Treasury Secretary Timothy Geithner, who served as a staff member of the New York City-based Council on Foreign Relations before being hired in 2003 to head the New York City branch of the Federal Reserve Bank (Fed). As the vice chairman of the Fed’s Open Market Committee, Geithner is probably a poor choice to get the nation out of it’s current economic mess. He served as Alan Greenspan’s number two man at the Fed, so Geithner is as responsible as anyone for facilitating the severity of the real estate and financial bubble and its subsequent collapse. After all, the Fed was the driving force behind the asset bubble, inflating the bubble larger and larger through artificially low interest rates and an inflationary easy-money policy.

Under Geithner and his predecessor (former Goldman Sachs CEO Henry “Hank” Paulson), the majority of bailout funds have been awarded to high-level donors to Geithner’s former employer: the Council on Foreign Relations (CFR).

Here’s a survey of TARP bailout awards to the CFR’s corporate members (there are a total of only a little more than 200 corporate members at all levels):

Among the “Founders,” those who give $100,000 or more to the CFR, can be found:

* American Express Company: $3.389 billion TARP
* Goldman Sachs: $10 billion TARP, plus a separate Federal Reserve bailout and more than $13 billion of the allotment to AIG (below)
* Merrill Lynch: $45 billion through its corporate parent, Bank of America, which is also a CFR Premium corporate member, plus $6.8 billion of AIG’s bailout funds

“President’s Circle” CFR members ($60,000 or more) received the following bailout funds:

* American International Group (AIG): $182 billion in total TARP/TALF funds to date
* Citibank: $50 billion TARP
* Morgan Stanley: $10 billion TARP

Premium members ($30,000 or more to CFR):

* Bank of New York/Mellon Corporation: $3 billion TARP
* Freddie Mac: Sharing with Fannie Mae $1.25 trillion — that’s $1,250 billion — in mortgage securities being purchased from the Federal Reserve Bank
* Chrysler: $4 billion TARP, plus $1.5 billion TARP for Chrysler Financial
* JP Morgan Chase: $25 billion TARP
* CIT Group: $2.33 billion TARP

That’s a total of more than $1 trillion in bailout funds for CFR corporate members, easily the lion’s share of the total bailout funds awarded to date. CFR Membership seems to have its benefits, and then some.

So why is no one asking questions about why most of the funds are going to the former employers of our Treasury secretaries? Perhaps because many of the entities who should ask “why” are also CFR corporate members. Among the financial press, the CFR counts among its members Bloomberg, General Electric (NBC, CNBC, MSNBC), News Corporation (Fox, Fox Business), Standard and Poor’s, ABC News, Time Warner (CNN, Time magazine, etc.), Moody’s, and McGraw Hill (book publishers).

Somebody should ask the question why the same people who brought us this financial crisis are now bringing us the “cure,” and why that cure necessarily involves financing former employers of the people making the decisions.

SOURCE:
http://www.thenewamerican.com/econom…ainmenu-43/915