This scheme was allowed to be released, like a plague, upon the unsuspecting general populace by former con-man and Senator Phil Gramm, who now officially resigned as McCain's financial advisor, yet is probably still sipping scotch with the Maverick pool-side at his palatial Arizona estate, if you catch my drift. Gramm was instrumental in deregulating the financial institutions bringing about the currently failed pyramid scheme.
Can Obama stop the Congressional collusion with the bankers and financial greed-hounds, who are "whining" over their massive gambling failures selling mortgages and derivatives to financially unstable working people, and then, to take those paper mortgage contracts and sell them, as well as insure them against defaults, while slicing them up into exotic bonds styled in various forms further and further down the lending pyramid where, eventually, all that paper went up in flames, which rippled massive losses back up the pyramid? Is this too big for him to handle? Will he be another pawn in the ultra-rich's financial greed game? As the base of the gambling lender's tree caught fire, the flames rush up the trunk engulfing the branches and canopy.
Since these investors, bankers, hedge-fund-hogs began to whine, and stomp their feet before the likes of Pelosi, Reed, and Senators Frank, Schumer, Dodd, and the rest of the colluders, Congress began doing everything they could to quiet the spoiled greedy uber-rich brats with a plan to bailout their losses and stick it to the American people, in spite of the fact the banking and financial executives haven't given up a cent of their salaries, bonuses, expense accounts and personal holdings which were gleaned from their profits gained through the failed mortgage and credit borrowing pyramid scheme.
Senators Frank, Dodd and Schumer have received over $18 million in contributions from the same banking and financial institutions that need full regulation and oversight.
What will Obama do about this fraud? Probably nothing, or very little. Will there be penalties, real penalties, given to the Banksta Gangstas and the capitulators in government? What does "Yes We Can" mean, Senator Obama, in regards to this most critical national crisis?
Mr. Obama--we are angry, not whining, over this massive fraud damaging our economic stability. We had nothing to do with it, and yet, you are saying little about the real solutions that need to be done to bring the fraudsters to justice and to fix the mess.
If the taxpayers are to bailout, ie. line-of-credit, private financial institutions, such as Freddie Mac and Fannie Mae, then nationalize them so that the people own them. If we are going to infuse them with billions, and maybe a trillion over the next two years as more of their mortgages default, then turn them over to the government.
If Wall Street cannot bailout their own with private sector monies, as they have done before by going to Central Banks of Germany, England, Russia, Japan, China, Saudi Arabia, UAE, Dubai and others with their whining mouths drooling and sweaty hands out stretched and cupped for "soup-line" handouts of cash, then turn over these GSEs (Government Securities Enterprises), and the rest to the public sector, ie. government, if we have to use the Treasury as the lender of last resort. Let the government reorganize them, while saying, "See Ya Later" to the private investors, or let them hold on to their shares until the institutions are resold back into the private sector once they return to regulated and controlled viability.
So Mr. Obama, what do you think? Do you have the guts to stand up to Wall Street, and Congress? You will be inheriting a major deflating economy with draining wars and a possible "Iranian October Surprise" brought to you by a capitulating Congress intimidated by BushCo.
In Mike Whitney's Counterpunch. org, 7-18-08, article "Swan Song For Fanny", he quoted a 6 month old Barron's statement saying Fannie Mae held $314 billion in Alt-A 'Liar's Loans' accounting for 31.4% of the company's credit losses while making up just 11.9% of its $2.5 trillion single-family-home credit book." "Spiraling mortgage defaults and falling home prices could bring a tsunami of credit losses over the next two years that will severely test Fannie's solvency."
Well, what about working America's solvency? Bailing out the ultra-rich with a fresh flow of cash from the Treasury allows the rich more riches, as a way to stop their whining, yet, at the same time, real working Americans become insolvent over the next two years.
Senator Obama, what is your "Yes We Can" plan to change this picture?
Whitney wrote that on 7-15-08 (Friday), credit default swaps on government debt doubled indicating that investors in the US will be getting cold feet scared that the world's biggest debtor nation will not be able to pay its massive debts.
This is not a time for Obama to be looking for compromise, nor should he be planning a 16 months from taking office style plan to impact the economic collapse. On day one, he must immediately act with certainty, decisiveness, and without hesitation. If Obama fails to hit a home run on the day he takes office, as opposed to bunting, he will be blamed for the financial crisis' ultimate tidal wave sweeping over major cities that will already have water in the streets.
Obama MUST show he lacks confidence in the demonic cartoon characters running the White House, the Fed, the Treasury, Justice and the State Department.
Mr. Whitney says, as I have said, 'Time is running OUT! The administration's time is short and they have only one chance to get it right, but they keep botching it up. Obama, too, has only one chance to get it right and that time starts now!
Mr. Whitney also wrote:
Bridgewater Associates said that the losses to the banking system would exceed $1.6 trillion,
4 times original estimates, and enough to crash the entire banking system. So far, the banks
have only written down $450 billion, which means that they are only 25% of the way through
the current credit storm." "...hundreds of undercapitalized banks turn to a grossly
underfunded FDIC ($52 billion in reserves) to cover the losses of their depositors."
Senator Obama has entered a burning kitchen. Can he stand the heat, while extinquishing the fire? He needs to show us he can---NOW!