bobbyw24
01-28-2010, 05:51 AM
Jim DeMint may not be ready to call this a "cover up" but DeMint also is bringing to the forefront a number of points that I have repeatedly made, specifically:
It was securitized debt that was rife with fraud that led to the blowup. But what's not being said - still - is that without this fraud-laced securitization party there would have been no bubble either!
DeMint asserts that Ben Bernanke and the FOMC was involved in the bailout and secrecy play with regard to AIG. No, really? The NY Fed doesn't pass gas without the approval of the FOMC! So yes, the FOMC was involved - and it is only reasonable to assume so was Bernanke.
While DeMint didn't say it, I will: The essence of all asset bubbles is fraudulent credit creation. While the form of these fraudulent securities vary from one bubble to another the essence of the scam never does, because in order to screw people in the sale of securities you must lie in some fashion (whether by omission or commission) about their value.
These bubbles happen because we refuse, as citizens, to demand that the law be enforced. In this specific case (the housing bubble) the warnings were clear as early as 2004 and included the FBI, HUD and private credit analytic firms all issuing loud and strident warnings that the non-conforming mortgage market was rife with fraud and that in one classification of this paper (ALT-A mortgages) nine in ten mortgages were not properly underwritten - that is, the income and assets claimed did not match reality.
Video at
http://beforeitsnews.com/story/14074/AIG_and_NY_Fed:_Whos_Involved.html
It was securitized debt that was rife with fraud that led to the blowup. But what's not being said - still - is that without this fraud-laced securitization party there would have been no bubble either!
DeMint asserts that Ben Bernanke and the FOMC was involved in the bailout and secrecy play with regard to AIG. No, really? The NY Fed doesn't pass gas without the approval of the FOMC! So yes, the FOMC was involved - and it is only reasonable to assume so was Bernanke.
While DeMint didn't say it, I will: The essence of all asset bubbles is fraudulent credit creation. While the form of these fraudulent securities vary from one bubble to another the essence of the scam never does, because in order to screw people in the sale of securities you must lie in some fashion (whether by omission or commission) about their value.
These bubbles happen because we refuse, as citizens, to demand that the law be enforced. In this specific case (the housing bubble) the warnings were clear as early as 2004 and included the FBI, HUD and private credit analytic firms all issuing loud and strident warnings that the non-conforming mortgage market was rife with fraud and that in one classification of this paper (ALT-A mortgages) nine in ten mortgages were not properly underwritten - that is, the income and assets claimed did not match reality.
Video at
http://beforeitsnews.com/story/14074/AIG_and_NY_Fed:_Whos_Involved.html