We've been scammed! - Bailout

[tangent4ronpaul]

Quote of the Day:
George Kaufman, a finance professor at Loyola University Chicago, is skeptical. "The last refuge of a scoundrel regulator," he says, "is to shout 'systemic risk.'" Usually, the alarm is false. He notes that aside from inter-bank lending, the credit markets were functioning tolerably well at the height of the crisis. Rates on 30-year mortgages actually dropped last week.
-- from a column by Steve Chapman, September 25, 2008

Subject: Do you know who the "Primary Dealers" are?

There's a lot of evidence that we've been scammed. Treasury Secretary Paulson and Federal Reserve Chairman Bernanke told us they needed to spend $700 billion of your money to buy supposedly toxic assets that were crippling major firms and for which there was no immediate market. This was a lie even when they said it, because . . .

Merrill Lynch was able to sell it's most troubled assets back in July.

If Merrill could do it, other firms could do it too. They might not have liked the price they got, but it could have been done. The Big Bailout was purposely designed to give favored firms a better deal than they could have gotten in the market.

We've also been told, constantly, that credit markets are frozen. We're still being told that today, constantly, around the clock, on the cable business channels. It wasn't true before, and it isn't true now. We could point you to many places for the evidence, but here's one great graph from the blog Carpe Diem to give you the evidence in one pretty picture.

The hysteria mongers would tell you that even if consumer credit is okay (and you would have to hammer them with the evidence to get them to admit it), commercial credit is still in big trouble. But that isn't true either. Here's a good summary from the great scholar Robert Higgs, at the Independent Institute . . .

"Looking at the data for the first four business days of the past week, I find that firms sold from $179 billion to $205 billion of commercial paper per day; the number of separate issuances per day ranged from 6,761 to 7,298. Both the total amount borrowed and the number of issuances per day increased steadily throughout the week (data for Friday have not yet been reported)."

Higgs goes on to compare the current numbers with past periods and finds NO CREDIT FREEZE!

But what about the stock market? Doesn't its fall tell us there's a crisis? Perhaps, until you consider what's causing stocks to fall.

The really big drops began when Paulson and Bernanke began peddling their fear to Congress. And since then, nearly every time some government official has opened his or her mouth, with some new claim or some new plan, the stock market has taken another nose dive. A good chunk of the decline appears to be driven by fear mongering. Want more evidence?

This is the season when firms report their earnings, and many companies are beating the estimates, but their stock prices are still falling. This is about fear, not fundamentals.

Who is responsible for this scam? Who are the con artists?

One big culprit in every supposed crisis is the media. They always blow everything out of proportion. Doing so is good for business. CNBC's ratings are soaring.

Another culprit is the politicians, who gain power from hysteria. In the last supposed crisis (terrorism) it was the Republicans who primarily benefited. This time it will be the Democrats, who have a decade of pent-up desires to re-engineer American society. These dreams may now become reality in the wake of the current fear mongering.

And last, but not least among the con artists, are a group of businesses with an official government relationship that earns them the designation of "Primary Dealers." Here's what Wikipedia has to say about the Primary Dealers . . .

"A primary dealer is a bank or securities broker-dealer that may trade directly with the Federal Reserve System of the United States.[1] They are required to make bids or offers when the Fed conducts open market operations, provide information to the Fed's open market trading desk, and to participate actively in U.S. Treasury securities auctions.[2] They consult with both the U.S. Treasury and the Fed about funding the budget deficit and implementing monetary policy. Many former employees of primary dealers work at the Treasury, because of their expertise in the government debt markets, though the Fed avoids a similar revolving door policy.[1][2] Between them, these dealers purchase the vast majority of the U.S. Treasury securities (T-bills, T-notes, and T-bonds) sold at auction, and resell them to the public."

Who are the Primary Dealers? Look at this roster (which used to include Bear Stearns) . . .

* BNP Paribas Securities Corp.
* Bank of America Securities LLC
* Barclays Capital Inc.
* Cantor Fitzgerald & Co.
* Citigroup Global Markets Inc.
* Credit Suisse Securities (USA) LLC
* Daiwa Securities America Inc.
* Deutsche Bank Securities Inc.
* Dresdner Kleinwort Securities LLC.
* Goldman, Sachs & Co.
* HSBC Securities (USA) Inc.
* J. P. Morgan Securities Inc.
* Lehman Brothers Inc.
* Merrill Lynch Government Securities Inc.
* Mizuho Securities USA Inc.
* Morgan Stanley & Co. Incorporated
* UBS Securities LLC.

We should notice several things about this list . . .

* These are among the primary firms that collaborated with the government to create the housing bubble
* These are the primary firms that profit from the financing of the national debt and who are benefiting from the current explosion in the federal debt and the Federal Reserve's massive inflation of the money supply
* These are probably the primary firms that will work with the Treasury Department to manage the auction of toxic assets
* These are also probably the primary firms that have toxic assets to sell (they will be both sellers and brokers in the Big Bailout)
* And most of these firms have been made "too big to fail" through their business dealings with the government

These Primary Dealers are the primary players in the Big Bailout con-game. And they are part of the crowd who are looting the country.

You can sit back and accept the Big Bailout and the on-going Big Interventions as an accomplished fact, or you can rage and protest to Congress. If we fall silent then the con-artists will be emboldened to do more and more. We must not fall silent. We must protest constantly.

We've created a new generic campaign to oppose all government bailouts. Please use this campaign to send Congress another message. Ask them to reconsider the Big Bailout. Ask them to roll-it-back. Use your personal comments to mention some of the facts described in this article. You can send your message using our Educate the Powerful System.

You can also compete with the power of Primary Dealers, the politicians, and the media, by taking steps to expand your own political influence. Please take these additional steps . . .

* Get a Digg account and go to our blog to Digg this message.
* Spread this message by forwarding it to friends and by posting it on your blog.
* Make a contribution or start a monthly pledge so we can recruit more DC Downsizers. THIS IS VERY IMPORTANT.

Thank you for being a part of the growing Downsize DC army.

Jim Babka & Perry Willis
President & Communications Director
DownsizeDC.org, Inc.


One other thing that no one has brought up - Remember all those re-assurances that the American taxpayer will be paid back? Do you recall when Congress went ahead and spent the Social Security trust fund that was set up to be completely hands off? Remember when there was a "surplus" on the deficit and instead of paying down a bit of the debt Congress went on a spending orgy in excess of the "surplus". Now does anyone REALLY believe the American taxpayers will ever see a penny of that money back?

What's worse is the lie that it's 700 Billion - it's 700 Billion at any one time! In short, an open checkbook. There was also the 650 Billion the Fed quietly laid out the day before the bill was passed.

pissed off yet? - I am!

-t

[torchbearer]

that is why I know wave the bonnie blue.
I wear a white arm band.

[slacker921]

source? I'd like to spread that around..

[tangent4ronpaul]

source? I'd like to spread that around..

downsizedc mailing list, though it's on their front page today.

http://www.downsizedc.org/

though the last part about taxpayers getting paid back I wrote... looks like it's also on digg.

-t

[MsDoodahs]

Bloomberg had a guy on, I was only halfway listening, but what caught my ear was when the host (Pimm) said something like "so you are saying these banks that got the bailout were NOT in trouble?" and the guest said yes and went on to give more about why he believes that.

I will look for the video at bloomers, if they put it up, I'll post a link here.

(eta: guest was Richard Bove)

[frankdogg]

dugg.

this info needs to go viral. digg the crap out of this thing... too bad the mainstream media wouldn't pick this story up, EVER.

[freelance]

We knew before they voted that we were going to get scammed. We just didn't know how. I think it was Morgan Stanley that reported yesterday. Forgive me if I have the bank wrong, but one of them was projected to lose 11¢ per share and ended up gaining 22¢ per share. And, this is one of them that we bailed out? We have been taken for the ride of our lives, and we haven't even reached the top of the roller coaster yet.

[tangent4ronpaul]

Blimp!

Digg this thing!

=t

[anaconda]

You can't be scammed if you knew what was coming. I don't feel "scammed." I just feel like I was robbed at gunpoint.

We have criminal administrations and the Congress members are their foot soldiers. We have lost control of our government. They rarely vote in a way that best serves the people. Only the people that finance their elections.

[raiha]

I'll send this around NZ newspapers see what happens. Rate 5*****

[BeFranklin]

There's a charming similarity between the 3 page ultimatium giving to congress, and what some said where threats of martial law made to our Representatives, and this 1 page ultimatium giving to banks, and what threats were made. The article says they were told to sign it or else. One pressumes that means or else we revoke your fdic insurance.

I am surprised that Paulson and Bernanke have not been arrested yet. It is clear Paulson being a green leftist in support of the "carbon tax", is setting up for an Obama presidency. If he isn't arrested before then, he won't be. We are looking at our shackles being forged before the election, and America is asleep.

[ronpaulforprez2008]

Total Bank Loans and Leases Reach New Record (http://mjperry.blogspot.com/2008/10/total-commercial-bank-loans-reach-new.html)


http://1.bp.blogspot.com/_otfwl2zc6Qc/SPVBNjhj8OI/AAAAAAAAF34/5Nac55XjUWs/s400/banks.bmp

According to banking data from the Federal Reserve that was updated today, Total Loans and Leases of Commercial Banks in the U.S. continue to grow, and have doubled from $3.5 trillion in 1999 to $7 trillion in 2008. On a monthly basis, Total Bank Loans and Leases exceeded $7 trillion for the first time in September 2008, and reached $7.258 trillion by the first week of October.

We keep hearing news reports that describe U.S. credit markets as being "tight," "frozen," "seized-up," "ultra-tight," "drum tight," etc. Why isn't that much-publicized credit tightness showing up in commercial bank loan data, which keeps setting record highs, and is now more than $7 trillion?




MY Credit Is Not Frozen (Nor Are Most Others’) (http://www.independent.org/blog/?p=289)


By Robert Higgs on Oct 11, 2008 in Business, Economics, Money and Banking

My VISA bill came in today’s mail. Normally its arrival is not an especially joyful occasion. Today, however, the envelope contained not only the bill, but also an offer to lend me money on very good terms. Three checks were provided, and I was invited to use the first one, prior to December 4, to make a payment of up to $X (and I can reveal to you that $X equals approximately 50% of what I expect to earn this year). For this credit, I will have to pay an interest rate of . . . (drumroll please) . . . 0%. Yes, that’s right: zero interest. The second and third checks give me access to any additional amount remaining within my credit limit of $X at an interest rate of 4.99%, fixed until the balance is paid in full.

It’s true, I admit, that I pay my bills on time; my momma didn’t raise no deadbeats. But is it possible that I am a better credit risk than the country’s biggest corporations?

I raise this seemingly idiotic question because I continue to hear that such companies simply cannot borrow short-term funds because credit markets are “frozen.” Just yesterday, on NPR, I heard a Wall Street fellow, identified as the vice president of a financial-information firm, say that no money is moving. He stares at his computer, he says, but for the past several weeks, he has seen virtually nothing, whereas previously the billions flew past so frequently that he had to work like a demon to take note of all the traffic.

Other commentators admit that companies continue to borrow, but they insist that only very short-term funds are available, whereas 60-day and 90-day credits used to be available to the same borrowers. As a result, firms are allegedly having to work frantically from one day to the next to maintain the flow of financing to meet payroll expenses and purchase inventories. Interest rates are said to be extraordinarily high.

Unless the Fed’s system of collecting information on issuances of commercial paper has gone completely bonkers, however, all these claims are wildly off the mark. Looking at the data for the first four business days of the past week, I find that firms sold from $179 billion to $205 billion of commercial paper per day; the number of separate issuances per day ranged from 6,761 to 7,298. Both the total amount borrowed and the number of issuances per day increased steadily throughout the week (data for Friday have not yet been reported).

It is true that the bulk of the activity in this credit market has occurred recently at the very short-term end. On Thursday, for example, 1-4 day funds accounted for 79% of the value and 71% of the issuances. But this concentration at the short-term end of the spectrum is not particularly a characteristic of a current “credit crunch.” In 2007, for example, on average, 69% of the value and 62% of the issuances came from deals for 1-4 day funds.

At the other end of the term spectrum, on Thursday (the most recent day currently reported), for example, 10% of the value and 11% of the issuances came from deals with terms of 21 days or longer. In 2007, on average, the corresponding figures were 21% and 24%, respectively. So, yes, the commercial paper market has moved recently toward the short-term end, but it is not true either (1) that no commercial paper is being sold or (2) that it is being sold, but only for very short terms.

Now, it’s possible, I suppose, that guys interviewed by NPR and self-selected financial bloggers are right, and the Fed’s data-collection system is wrong. If so, however, it would be a public service for the doomsayers to let the world in on this secret, and to reveal (citing publicly accessible sources) exactly why rational people should ignore what is ostensibly the most comprehensive and reliable data source and, instead, believe the manic, unsubstantiated claims now circulating via the news media and the blogosphere.

[ronpaulforprez2008]

While the initial story and subsequent charts showed an increase in credit, diving deeper into the data shows a different story, as reflected in the following....

Bank Credit Is Contracting (http://globaleconomicanalysis.blogspot.com/2008/06/bank-credit-is-contracting.html)

There were some interesting charts and commentary in a recent issue of Contrary Investor showing the contraction in asset backed commercial paper. By permission from CI:


As of the end of May, the year over year change in US banking system commercial and industrial loans outstanding was close to 20%. Without belaboring the point, that's one very big growth number. Set against historical experience of the last few decades at least, we've never really seen annual growth like this.

http://bp3.blogger.com/_nSTO-vZpSgc/SGCm87bCUCI/AAAAAAAAC1A/cDZuhEU26n0/s400/C%26I-loans-CI.gif

Of course when looking at this data without digging a bit, the natural response is "what credit crisis"? Clearly the banks are lending with more than a bit of gusto, no? This simply flies in the face of conventional thinking, as well as the tone and detail of the most recent Bank Loan Officer Survey showing us that banks have tightened the credit reigns in a big way.

So it appears that although credit cycle woes have taken a very meaningful toll on the financial markets and the real US economy, US commercial banks haven't even blinked. In fact, they have hit the lending accelerator in terms of commercial and industrial loans, as their real estate lending activities have been curtailed significantly. Of course this is how it "appears" when looking at the raw bank lending data. But as always, appearances can be deceiving, especially in the modern US financial markets.

Let's quickly have a peek at an update of a chart we have probably shown you too many times this year. Specifically, what is important is the ongoing trend in asset backed commercial paper outstanding (the gold line).

Commercial Paper
http://bp2.blogger.com/_nSTO-vZpSgc/SGCoXggezVI/AAAAAAAAC1I/v5USBjd38ao/s400/financial-nonfinancial-ci.gif

Here's the deal. As we all know full well by now, the big boys in the US banking system have been heavily involved in off balance sheet shenanigans for many years now, these shenanigans now coming home to roost in a very big way. You know the vehicles by now - special purposes entities (SPE), structured vehicles (SIV), etc. Very much akin to the Enron structure before that house of cards collapsed due to sudden illiquidity.

The commercial banks simply thought they were smarter than the Enron crowd as they pursued off balance investment fun and games for profit over the decade to date period. As you also may be fully aware, many an off balance sheet "investment" for the banks was funded with asset backed commercial paper. The oldest trick in the book and really the oldest mistake in the book - borrowing short (maturity) and lending (theoretically investing) long. We've seen this mistake repeated so many times over our careers we've simply stopped counting. And literally every time it has ended in the same manner - in tears.

So as you look at the chart above, it is clear that asset backed commercial paper has been contracting very meaningfully since the summer of last year. In very rough numbers, contraction to the tune of maybe $225 billion. As you also probably know full well, many a bank has been forced (and will continue to be forced) to take many of these off balance sheet investments/assets back onto their own balance sheets in a formal manner. When this happens, the financing of these assets shows up as a loan. It shows up in the C&I numbers.

And so now we're sure you are starting to put the pieces of the puzzle together here. Since the end of July 2007, US banking system commercial and industrial loans have expanded by roughly $220 billion. Wow, what a coincidence, right? Wrong. Clearly, this is almost the same amount by which asset backed commercial paper has shrunk. Point being, bank commercial and industrial lending is not strong. It has not expanded meaningfully since last summer to fill the hole left by the contracting asset backed securities markets. To a very large extent, the increase bank C&I lending is simply the banks taking off balance sheet vehicles back onto their reported balance sheets in a formal manner. An illusion of lending strength? In many senses, yes.

The fourth quarter of 2007 witnessed the first quarter over quarter decline in total asset backed securities outstanding in history. Well guess what? Contraction continues. As of the first quarter of this year, not only do we now have two straight quarters of nominal dollar contraction in the total asset backed markets, but the first year over year decline on record. We do not expect this to change any time soon.

http://bp0.blogger.com/_nSTO-vZpSgc/SGCl1bTBBqI/AAAAAAAAC04/2imWCwUEiDM/s400/ABCP-CI.gif



Is The Fed Easy? (http://globaleconomicanalysis.blogspot.com/2008/06/bank-credit-is-contracting.html)

Those who point to charts of C&I lending as proof bank lending is strong are missing the big picture by a mile. Those focused on M3 are essentially in the same boat. Raw numbers are one thing, what those numbers mean can be another story altogether.

Economist Paul Kasriel is asking If the Fed Is So Easy, Why Is the Growth in Money and Credit Aggregates So Weak?


We constantly hear from the talking heads that the Fed's recent policy actions are creating mammoth amounts of financial liquidity. But have these talking heads bothered to look at the data? If they did, they would have to change their tune.

Chart 1 shows that the year-over-year growth in the total assets of the Federal Reserve System was up 3.85% in the week ended June 18. Although total asset growth has rebounded from slightly negative territory of late April, the latest 3.85% growth still is low in comparison with recent years' behavior. So, the Fed is not creating massive amounts of credit on its own. In yesterday's comment, I noted that the Fed had reduced its holdings of U.S. Treasury securities by billions of dollars in the past six months. In effect, the Fed has been "sterilizing" much of the credit it has been creating via the discount window and its new borrowing facilities.

Federal Reserve Banks Total Assets
http://bp0.blogger.com/_nSTO-vZpSgc/SGCrpDA2QRI/AAAAAAAAC1Q/A2Ppumqf5rY/s400/Fed-Assets.png


Now, let's take a look at what commercial banks have been doing with their loans and investments. Chart 2 shows that in the 13 weeks ended June 4, loans and investments at all commercial banks were contracting at an annual rate of 2.25%. It is true that bank credit growth ballooned in 2007 as banks were forced to take on credit that had originally been financed in the commercial paper market. But we seem to be over that "hump."

Bank Credit: All Commercial Banks
http://bp2.blogger.com/_nSTO-vZpSgc/SGCsgoreOOI/AAAAAAAAC1Y/vdOC_4X-VzE/s400/bank-credit.-all-commercial-banks.png

Paul Kasriel has three other charts all showing a marked slowdown. The key story, however, is that bank credit is contracting along with commercial paper. Consumer credit will eventually follow with a pending $2 Trillion Reduction In Credit Card Lines (http://globaleconomicanalysis.blogspot.com/2008/06/2-trillion-reduction-in-credit-card.html) Coming Up. This is deflation in action and amazingly few see it.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

[jave27]

Just added a link to http://www.downsizedc.org/ from my new site: http://EndTheBailouts.com (still under heavy construction).

[ronpaulforprez2008]

Started a new thread here (http://www.ronpaulforums.com/showthread.php?t=163465)to discuss $2Trillion in coming credit card crunch.

[InterestedParticipant]

"... lowering interest rates etc. are measures that can only work
if the problem is lack of liquidity. The problem is not one of liquidity.
The problem is solvency. Massive amounts of credit was created
out of thin air because fractional reserve lending allows it.
Speculation in assets went through the roof when the Fed held
interest rates too low too long."


http://globaleconomicanalysis.blogspot.com/2008/03/night-of-living-fed.html

[HOLLYWOOD]

Don't forget the "SLIDE OF HAND" Billion here, Billion there, being thrown in all directions by Paulson.

This Morning on FOX BUSINESS... Paulson was interviewed by Alexis Gleg ands she asked, "Where did you come up with the $700 BILLION number?

Paulson... "We needed something big enough to makea difference in the economy. This is an investment not an expense"

Let's see... he's dumped $2.25+ TRILLION into the markets the past few months... to "MAKE A DIFFERENCE"

NO ONE looks to the DAMAGE that will be caused in near the FUTURE. The Markets future are a disaster no matter how liquid now.

[SLSteven]

No Bank Left Behind

[ronpaulforprez2008]

They have beaten down commodities. Now, all they have to do is have the PPT
drive up the stock market with the puffery provided by the PP, and they win. They will bail
out through their dark pools of liquidity, Project Turquoise and Baikal, behind the public's back,
and then use their sales proceeds to buy up all the tangible assets such as precious metals,
commodities, real estate and domestic infrastructure at fraudulently manipulated and reduced
prices. Such drastically reduced prices will also become available at an ever-accelerating pace
as financial and business corporations continue to collapse and go into bankruptcy. After they
have bailed out of all dollar-denominated paper assets, the Illuminati will let the stock and bond
markets come-crashing down, the price of precious metals and other tangible assets will explode,
they will clean up, and you, the sheople taxpayers, will get left holding the proverbial bag of
worthless fiat paper for the nth time.



The Bailout Wont Work and the System Will Implode (http://www.theinternationalforecaster.com/International_Forecaster_Weekly/The_Bailout_Wont_Work_and_the_System_Will_Implode)



The Paulson Plan means you are going to eat it all, Paulson wants to keep the corrupt greed machine going, A Wall Street Bailout plan means you will pay for their mistakes, Administration trying to scare everyone into accepting bailout plan, Buyouts now like zombie marriages, derivative Death-Star on its way,

The name of the episode, appropriately enough, is "The Paulson Plan." The capsule for the episode reads as follows: Hanky Panky and Buck-Busting Ben decide to renovate the Goldilocks Matrix, giving it a major overhaul, and attempt to redefine the word: "fantasy." Indeed, The Paulson Plan, so-called, may be the most vivid product of a fertile imagination since "Alice in Wonderland" and "The Wizard of Oz," which quite frankly are more believable than the reasons given for the implementation of the "The Paulson Plan."



Oh, we must help the poor sheople by easing the credit-crunch so they can get more loans and get deeper into hock (like more loans is what they somehow need), and so their savings accounts and pensions plans can be saved as we hyperinflate the dollar. Oh, we are sooooo concerned about the welfare of the poor, helpless sheople! We have to save them from destroying themselves, because only we, the masters of the universe, know what is best for them. (Judy, get the barf-bag - quick!) You just don't understand. The corrupt, graft-laden, insider-trading-saturated, fraud-based, Ponzi-scheming system that we have used to rip you off and steal you blind for over a century must obviously be saved so we can keep screwing you ad infinitum. After all, isn't that what sheople are for, to be fleeced and sheered, fattened and slaughtered? You know your place. You are all bleating, ignorant sheople, so come lick our boots - and give us the damned money!!! Oh, there, there, now. We're sorry to take such an imperious tone with you. There, there, just give in to our demands like good little sheople and, in time, everything will turn out juuuuust fine --- NOT!

We know we have taxed you to death via the IRS and inflation of the money supply, we know we have manipulated all the markets and engaged in rampant insider-trading and loan fraud, thus stealing trillions of dollars of your hard-earned cash from you, we know we created Ponzi-scheme bubbles in dot.com stocks and real estate, we know we gave mortgages to people who could not afford homes in the first place, we know that we falsely rated stocks, bonds and derivatives and "cooked our books" to get you and our international friends to pay top dollar for crap, we know we lied to you about every economic statistic on the face of the planet, but, hey, we're all in this together now, and you have no alternative other than to accept our bailout plan (oh, let's call it a "rescue plan" instead) so thatyou can pay for all the economic carnage resulting from our debauchery.

And don't worry about any oversight when it comes to disbursing the piddling $700 billion, because it should be obvious, based on all the foregoing, that we can be trusted to handle the mere 700 billion as if it were -well - our own, which it will be if you approve the plan! Oh, but perhaps we should not mention that - you might construe that as some kind of silly old moral hazard, hahaha. And never mind that we told you we don't know if the plan will work, because we know it won't, but we didn't want to upset you any more than you already are. And have no concern that the 1.4 quadrillion dollar, roiling, boiling derivatives volcano is going to wipe out the entire world banking system with molten credit default swaps and interest rate swaps in a blaze of pyroclastic glory over the next several years, because, hey - we're working on it! And never mind that the problem is unsolvable. This is the United Goldilocks Matrix, where everything turns out juuuuust right!

Note first, how the Paulson Plan, which we will hereinafter refer to as PP (which is also a good acronym for Preposterous Poppycock), is a perfect example of Illuminist extortion aimed at stuffing a very rotten apple down the collective throats of our elitist marionettes in Congress, who, for the first-time in what must be over half a century, displayed some backbone in their denial of the initial proposal for the PP, albeit that their nixing of the PP was most likely motivated by political opportunism more so than by any true patriotism.

First, we saw Bear Stearns assassinated this March as an appetizer. The extortion got started with a bang on September 7, when Fannie and Freddie were nationalized, and then we were "shocked and awed" with a series of colossal commercial bank and investment bank failures, starting with the bankruptcy of Lehman Brothers on September 10, at which time Merrill Lynch also went under and was purchased by Bank of America. Then AIG goes down on the 16th. Out comes the PP on the 20th. Then, to keep up the pressure, Washington Mutual implodes on the 25th and is acquired by JP Morgan Chase, followed by the vaporization of Wachovia on the 29th, which is acquired by Citigroup in the hours before the first vote on the PP is commenced. Now mind you that these banks have been insolvent from the outset of the credit-crunch in August of 2007, as we have reported to you over the past year. And here we are, with Congress about to recess to campaign for reelection just before the vote in November, and suddenly the whole system, which until now has been kept in a state of suspended animation, comes down to scare everyone into accepting the PP. How blatant and churlish can you get?

Along the way, we also saw Goldman Sachs and Morgan Stanley give up their investment bank charters for commercial bank charters while getting bailed out with equity injections from various Illuminist companies. Then banks and other financial institutions in Europe suddenly crumble, after unofficial weekend rumblings, with official announcements of bailouts/nationalizations made, right on cue, on Monday to bolster the PP, including Fortis (Belgium, Netherlands and Luxemborg), Hypo Real Estate (Germany), Bradford and Bingley (UK), Glitner Bank (Iceland) and Unicredito (Italy).

Here is a little time line summarizing the action that occurred as a lead-up to the vote on the PP:
http://www.guardian.co.uk/business/2008/sep/27/wallstreet.useconomy3

Nevertheless, the PP gets nixed by the US House of Representatives in a "shocker," and suddenly the Dow plunges 777 points as punishment for our Congress having the audacity to deny the Illuminati because they were getting inundated with calls from constituents who were against the PP, sometimes by as much as 300 to 1. The message: give us the $700 billion or we will give you trillions worth of grief just prior to elections. As a side note, while we are not into numerology, when you get a 777-point punishment for nixing a $700 billion bailout plan, may we suggest there is some sort of message there. Also, as a side note, we had to laugh when Citigroup bought out Wachovia. It was like a zombie marriage made in heaven. The walking dead marrying another member of the walking dead. It's like mixing C-4 with TNT. What a conflagration that combination is going to suffer! We suppose, for now, that we technically have the Fed now leading the Big Five instead of the Big Four (the Big Five being JP Morgan Chase, Bank of America, Goldman Sachs, Morgan Stanley and now Citigroup). We'll see how long that lasts. We expect to get back to the Big Four in the not-too-distant future. The Big Four will get vaporized later, as will the Fed, with everything being nationalized, as planned by the Illuminati all along.

Now we are hearing the moron, Illuminist bankers in Europe drone on about how doltish the Americans are for rejecting such an excellent plan. Then there is the Caligula Administration, whining that we don't like the plan any more than you do, but it must be passed or everyone will suffer great pain (as if that can somehow be avoided and as if they aren't drooling over the profits to be made when the money is doled out). Now, the Senate leaders are getting in on the act, blaming the House for defeating such a wonderful plan and causing trillions in losses in the stock markets (even though it was really just the PPT withdrawing its support and strengthening the yen, thereby allowing the financial markets to fall under the weight of their horrendous fundamentals, as well they should when left to themselves instead of being manipulated by our corporatist, fascist, elitist scum and their financial anti-gravity machines). The Senate is going to add some tax breaks to sweeten it for the House Republicans, but the House Democrats may then be put off. The Senate is thus trying to obfuscate what is the main issue - that the plan won't work, will ultimately increase our pain and fan the flames of hyper-stagflation and out-of-control, double-digit interest rates as everyone stampedes toward the exits, trying to unload their treasury paper all at the same time before it becomes worthless. Meanwhile, the bribes and threats are being thrown every which way as the Wall Street pirates and the usual government scalawags attempt to claim their booty.

This so-called rescue plan is a "disgrace," is "totally flawed" and there are many better, and far less expensive, alternatives, notes the respected economist Nouriel Roubini. Also noted by Mr. Roubini is the fact that credit and other financial markets have been deteriorating despite the prospects of approval for the PP, which shows you in spades that the plan won't work and will do little more than line the pockets of the Illuminists at the expense of the taxpayers who will get vaporized in the end. Rather than lay out all of his arguments in detail here, we provide you with the following web sites:

http://www.rgemonitor.com/roubini-monitor/253783/is_purchasing_700_billion_of_toxic_assets_the_best _way_to_
recapitalize_the_financial_system_no_it_is_rather_ a_disgrace_and_rip-off_benefitting_only_the_shareholders_and_unsecure d_creditors_of_banks

http://www.rgemonitor.com/roubini-monitor/253801/the_us_and_global_financial_crisis_is_becoming_muc h_more_severe_
in_spite_of_the_treasury_rescue_plan_the_risk_of_a _total_systemic_meltdown_is_now_as_high_as_ever

As Mr. Roubini points out, the government's purchase of bank assets is the route the Japanese took, and this led to a two-decade recession/depression which they still struggle with to this day. We will now follow them into financial oblivion unless by some miracle the elitists are stopped from implementing the PP, or the Derivative Death-Star detonates before they can complete their final raping of the sheople. Instead of having a brief one or two years of moderate depression, we will end up with one or two lost decades and the worst depression ever created in the history of mankind, not to mention a corporate, fascist police state.



The PP will temporarily put off, and greatly magnify, the final implosion of our economy which will be worse by an order of magnitude as the direct result of the implementation of the PP. The glowing, Quadrillion Dollar Derivative Death-Star insures that destruction is on its way. It is not "if," but "when." When it explodes, in the aftermath, a financial black hole will form as global markets implode, and will suck everything into one final crushing moment of complete annihilation. The PP will only serve to extend the period of elitist fraud, and they will continue to produce toxic waste and dump it on their sucker-dupes for vast fees, spreads and commissions as they speculate, gamble and re-leverage with all their newfound largesse, courtesy of the US taxpayer and the backing of nationalized Phonie and Fraudie along with the huge injection from the PP.

This all ties in with the Big Sting Two. They have beaten down commodities. Now, all they have to do is have the PPT drive up the stock market with the puffery provided by the PP, and they win. They will bail out through their dark pools of liquidity, Project Turquoise and Baikal, behind the public's back, and then use their sales proceeds to buy up all the tangible assets such as precious metals, commodities, real estate and domestic infrastructure at fraudulently manipulated and reduced prices. Such drastically reduced prices will also become available at an ever-accelerating pace as financial and business corporations continue to collapse and go into bankruptcy. After they have bailed out of all dollar-denominated paper assets, the Illuminati will let the stock and bond markets come-crashing down, the price of precious metals and other tangible assets will explode, they will clean up, and you, the sheople taxpayers, will get left holding the proverbial bag of worthless fiat paper for the nth time.

As the system implodes, the highly appreciated tangible assets of the Illuminists will be used to purchase property for pennies on the dollar as liquidations continue under the weight of what will be a complete systemic failure of the fiat money and credit system, after the elitists have had their fun. That is their hope, but we doubt they can hold it up long enough to complete their final rip-off of the sheople. This is why they fear the Derivatives Death-Star, and start mumbling to themselves every time someone in Congress brings that subject up. They must bail out before this Death-Star detonates, or they will be wiped out, hence their desperation to implement the PP. They intend to leave nothing but burned out corporate husks, the Fed and the Big Five included, when the Derivatives Death-Star detonates, and then you, the sheople, will be asked to nationalize the entire banking system. This is what happened to Germany in the aftermath of the Weimar Republic after hyperinflation had cut its swath of destruction. And we have relatives of some of the same players involved in the rebuilding of Nazi Germany as a fascist police state. Caligula's grandfather, Prescott Bush, helped finance the new Nazi fascist government through a banking concern he managed which was later shut down as an entity that collaborated with the Nazis. He was almost hanged for treason before his Illuminist buddies saved his neck. And now GHWB and Dubya are working off the same playbook as history repeats itself. The Fourth Reich is coming to a theatre near you, complete with Nazi death camps and a Nazi police state. As you watch the financial carnage going down all around you, perhaps you can now start to understand and appreciate that this is not business as usual and that we are not conspiracy quacks talking out of our back ends. You had better wake up and take action quickly, or you will be caught up in a new Holocaust.

Now, let's take a look at some of the new blather that was added to the PP to bring about the so-called compromise. First, we state categorically that the taxpayers will not make a single dime of profit from this scam. You are going to pay for this cess pool of toxic sewage at the "hold to maturity value," which means you will pay par less any principal reduction from payments received. And which paper do you think they are going to buy with your dollars? Do you think it will be the stuff worth 70 cents on the dollar, or will it be the stuff going for 10 cents or less on the dollar? We will not even insult your intelligence by answering that question. And if this toxic waste is worth pennies on the dollar now, what will it be worth when our economy finally comes down under the weight of our rabid profligacy, rampaging fraud, rampant speculation, raving lunatic leverage and roaring, outrageous deficits? You guessed it. A big fat goose egg. You will eat the whole thing - guaranteed.

[jmag]

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